Something I knew: Most college take a Semester based payment due in the beginning of the Semester.
Something I did not know until I took a medical leave of absence midway through the Semester: Colleges have a refund policy that is not proportional to the amount of time spent in the college. Further, the college's website lists out how they look at refunding money if you take the Semester off only after it has started.
You never go into a Semester thinking that you'd have to withdraw at some point - no-one does, but sometimes circumstances force you to. So it's good to look into insurance plans to see if the pros might beat the cons based on your individual circumstance. This is when their refund greatly outlays that of the college or you feel that you are vulnerable to some causes of taking the Semester off. Like health insurance, there are policies that offer different coverage of tuition and allow you to reimburse only in certain cases.
For example,
Tuition insurance typically cover reasons including:
Illness
Injury—such as sports injuries and vehicle accidents
Family deaths
Mental health conditions
Among other standard exclusions are:
Epidemics and pandemics are typically excluded.
Participating in professional sporting events
Taking part in a riot or civil disturbance
Drug use
Activities that involve extreme risks like bungee jumping, skydiving and scuba diving
Tuition insurance generally costs about 1% of the total tuition cost, according to the Insurance Information Institute. For instance, if you want $30,000 in coverage to match the cost of annual tuition, the total premium will likely be around $300.
So as the Semester begins, think about it. Like any other insurance, it's a risk-reward pay-off.
How do you decide if this is something you would like to do?
The first step should be to review and understand the college’s refund policy, associated withdrawal deadlines, and cut dates.
In 2023, an equally important part is to review the college’s Covid-19 policy. “What academic accommodations are provided to catch up on academic work? Can the student achieve an incomplete grade at the end of the semester with the possibility of completing and submitting work during the academic break to meet the class requirements?”
Scrutinize what the tuition policy covers and doesn’t cover.
Take your physical and also mental health into consideration! How do you feel?
Ponder taking a lighter course load if withdrawing is a possibility or concern. Instead of withdrawing for the entire semester, consider withdrawing from a class and maintaining enrollment or even see if you can learn remotely.
Know the rules related to student loans and Title IV funds and withdrawal procedures. “Student loan funds may be required to be returned if you withdraw from classes, and student loan payments could be triggered six months after removal from a college.”
At the end of day, like every other insurance, it serves as a financial safety net to help you cope with unexpected expenses or losses. It provides a way to offset the financial burden that could arise from accidents or illnesses. Insurance provides you with peace of mind knowing that you are prepared for unexpected events. This allows them to focus on your daily lives without constant worry about potential financial setbacks.
I hope this is helpful!
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