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As students head back to campus, many are preparing for the possibility of school closures. Institutions like the University of North Carolina Chapel Hill and Michigan State University have already transitioned their fall classes to online formats. These shifts have led students to question whether they can get their money back—and it appears that securing a refund may not be straightforward.
According to Marketplace, the absence of uniform refund policies for college tuition across the country is a significant issue. Some colleges have strict no-refund policies, while others may offer partial reimbursements or future tuition credits.
CNBC explains that tuition refunds might be issued on a sliding scale, with no possibility of a refund after the fifth week of the semester. This is especially concerning, as the average cost of college tuition is currently between $21,950 and $49,870 per year, based on data from the College Board.
Tuition insurance might be another option to consider. As reported by Forbes, these policies often cover just one semester, though you may have the chance to purchase additional coverage. These plans may reimburse tuition, fees, and room and board, but they might not offer the all-inclusive protection you might expect.
One such provider, GradGuard, collaborates with over 300 colleges and universities. According to the company's website, their insurance partner, Allianz Global Assistance, will cover claims in case you need to withdraw from school due to illness from COVID-19. CNBC reports that premiums could begin as low as $39.95 per $2,500 in coverage per term, with the average student paying about $106 for $10,000 worth of insurance.
Another option, A.W.G. Dewar, teams up with schools nationwide to offer tuition insurance, though the details of the policy may differ by institution. For instance, Santa Clara University in California provides insurance for 80% of tuition costs—if you withdraw entirely due to the virus—for a fee of $70 per quarter.
The website clearly states that you won’t be covered if you choose to quarantine and withdraw based on suspicion of having the virus without a confirmed diagnosis. The Tuition Refund Plan policy emphasizes that it does not cover withdrawal due to fear of contagion.
Before investing in tuition insurance, it's important to familiarize yourself with your school's refund policy. Also, be sure to read through the insurance policy, paying close attention to the fine print. You should be aware of the types of withdrawal the policy permits and the specific expenses (such as tuition, room and board, and fees) that the plan will cover.
It's also important to inquire about how the claims process works. Will the insurance company pay the school directly, or will you be receiving a reimbursement check instead? If you end up contracting the virus and need to file a claim, having this information beforehand will definitely be helpful.
