What You Need to Know About Tuition Insurance

published 2 November 2010

When you fork over big bucks to pay your student's college bills, should you pay a few hundred more for insurance that gets you a refund if your student withdraws? Some colleges require that you buy refund insurance, tacking the amount onto their fees. You can also pick up coverage on your own, through GradGuard (up to $50,000 in coverage for $600) or by joining the Expense Management Association, which gives you access to TuitionGuardian (up to $25,000 per semester for $300).

But most colleges rebate full tuition if a student withdraws within the first week or two of classes and provide a partial refund until about five weeks into the semester. If your student makes it through most of the term, he or she may be able to take "incompletes," salvaging the credits.

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Features Paying For College

The late Jane Bennett Clark, who passed away in March 2017, covered all facets of retirement and wrote a bimonthly column that took a fresh, sometimes provocative look at ways to approach life after a career. She also oversaw the annual Kiplinger rankings for best values in public and private colleges and universities and spearheaded the annual "Best Cities" feature. Clark graduated from Northwestern University.