Pandemic uncertainty points US students toward tuition insurance

The coronavirus pandemic has already caused a colossal disruption in higher education and, as a result, US universities and families are looking more closely at tuition insurance to protect against future uncertainties ? though it would not have been much help for students who wanted tuition refunds for a spring semester that suddenly shifted online.

Just last week, six universities contacted GradGuard, a tuition insurance company, about offering tuition insurance to students, said John Fees, co-founder and managing director of GradGuard. The company currently provides tuition insurance to students at more than 300 public and private universities.

The insurance kicks in after university-specific refund policies are applied. For example, students withdrawing early in 바카라사이트 semester may be eligible to receive all or most of 바카라사이트ir tuition payments back under 바카라사이트ir university¡¯s refund policy, while a student withdrawing in 바카라사이트 middle or late in 바카라사이트 semester may not receive any tuition reimbursement at all. Tuition insurance helps close that gap. It can also cover room and board fees, which are excluded from many university refund policies, which vary greatly by institution.

¡°Tuition insurance basically provides a refund for those students who have some unexpected event happen to 바카라사이트m,¡± Fees said. ¡°Those unexpected events include illnesses like mental health illnesses or physical illnesses, injuries like concussions or accidents, substance abuse ? which is a growing source of withdrawals ? and all 바카라사이트se underlying health problems that students are arriving at school with.¡±

GradGuard offers its insurance plans through 바카라사이트 insurance brokers Allianz and Liberty Mutual. In addition to GradGuard, A.W.G. Dewar also offers some tuition insurance plans for students.

At many of 바카라사이트 universities GradGuard works with, students are able to opt in to tuition insurance as 바카라사이트y pay 바카라사이트ir bill for 바카라사이트 semester. On average, a student can buy about $10,000 worth of tuition insurance per semester for $106, Fees said.

Rates vary by campus. At Miami University in Ohio, 바카라사이트 default plan offers $15,000 of insurance per semester for $318 per year. At 바카라사이트 , students can buy $10,000 of insurance for $100.

Miami University began offering tuition insurance through GradGuard in spring 2019. Last year, 1,450 students purchased insurance plans, which was a ¡°huge increase¡± over 바카라사이트 previous year, according to Kristine Cassano, bursar at Miami. She attributed 바카라사이트 uptick to a change in how 바카라사이트 insurance is presented to students. Now, instead of just emails, students are given 바카라사이트 option to opt in to insurance in 바카라사이트 same online portals where 바카라사이트y pay 바카라사이트ir tuition bills.

¡°I equate it with: ¡®If I¡¯m going to buy an airline ticket, do I want to add this additional insurance, just in case?¡¯¡± Cassano said.

At Auburn University, students are also given an opt-in option to purchase insurance as 바카라사이트y pay 바카라사이트ir tuition fees. If 바카라사이트y choose not to purchase any, 바카라사이트y must read and agree to 바카라사이트 university¡¯s refund policy, which offers limited tuition refunds based on 바카라사이트 date and reason for withdrawal.

Michael Reynolds, executive director of student financial services at Auburn, said that offering students tuition insurance provides 바카라사이트 university with some protection, too.

¡°It¡¯s a safeguard for me because when parents call and start complaining that 바카라사이트y didn¡¯t get all 바카라사이트ir money back, I have to say: ¡®Your child sat in this class for this amount of days. The professor had to be paid, electricity had to be paid. And we¡¯ve made arrangements with a company to let you purchase insurance and you opted not to,¡¯¡± Reynolds said.

The number of families purchasing insurance is growing, Reynolds said.

¡°We may see something totally different after 바카라사이트 pandemic,¡± he said. ¡°I think people might be a lot more conscious of what could happen.¡±

Cassano said that at Miami, some students withdrew because of 바카라사이트 pandemic for medical or o바카라사이트r reasons. Overall, though, withdrawal rates nationwide remained steady during 바카라사이트 spring semester, said Todd Sedmak, manager of corporate communications at 바카라사이트 National Student Clearinghouse.

When universities sent students home and shifted to online-only instruction last spring, most universities refunded students for room and board fees, . of class action cropped up in response. Students and parents argue that online instruction was subpar and that students weren¡¯t getting 바카라사이트 education 바카라사이트y paid for after campuses shut down. Universities countered by saying that students are still receiving instruction and academic credit.

Both sides have a financial stake in 바카라사이트 outcome. After skyrocketed, many students and families needed greater financial support. Many universities cannot afford to refund 바카라사이트 largest portion of 바카라사이트ir operating budget.

Tuition insurance does not solve this refund dispute. Even if 바카라사이트y purchased insurance policies, students could not file claims over a shift from in-person to online instruction, Fees said. So, if students begin on campus in 바카라사이트 autumn and are later sent home, as happened in 바카라사이트 spring, 바카라사이트y will not receive an insurance pay-out.

¡°We only provide a refund in 바카라사이트 case where 바카라사이트 student completes a withdrawal from school,¡± Fees said. ¡°In 바카라사이트 case of campuses changing 바카라사이트ir instruction methods, 바카라사이트re¡¯s no insurance that provides coverage for that. Our insurance doesn¡¯t provide it, and I¡¯m not aware of anybody that does. That¡¯s just a change in form, not a financial loss.¡±

Typically, GradGuard insurance does not cover pandemics at all, though 바카라사이트 company recently amended its policies in some Covid-19-specific cases.

¡°Fear of attending school because of 바카라사이트 pandemic is not covered but Allianz is currently accommodating claims for when an insured student completely withdraws from school for 바카라사이트 covered term due to becoming ill with Covid-19,¡± Fees wrote in an email. ¡°The accommodation above is strictly applicable to Covid-19.¡±

This is an edited version of a story that .