As college students return to school, many are bracing for the possibility of campus closures. Some schools—like the University of North Carolina Chapel Hill and Michigan State University—have already moved fall classes online. These changes have left students wondering about getting their money back—and it turns out, it may not be easy to get a refund.
As Marketplace reports, unfortunately, there aren’t uniform college tuition refund policies across the country. Some colleges may have a strict no refund policy—whereas others may offer partial refunds or future tuition vouchers.
CNBC says tuition refunds may be offered on a sliding scale, with no option for money back after the fifth week of the semester. This may be particularly unsettling, as the average cost of college currently ranges from $21,950 to $49,870 per year, according to the College Board.
There may be another option, though: tuition insurance. As Forbes reports, tuition insurance typically covers one semester—although you may have the ability to buy more. While these policies may cover your tuition, fees, and room and board, you may not have the comprehensive coverage you expect.
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One company, GradGuard, partners with more than 300 colleges and universities. According to the company’s website, GradGuard’s insurer, Allianz Global Assistance, will cover claims if you get sick from COVID-19 and withdraw from school completely. CNBC reports the premiums may start at $39.95 per $2,500 of coverage per term. The average student may pay $106 for $10,000 of insurance.
Another company, A.W.G. Dewar, partners with schools across the country to offer tuition insurance, but the specific policy details may vary by institution. For example, Santa Clara University in California offers insurance for 80% of the cost of tuition only—if you withdraw completely because of the virus—for $70 per quarter.
The website specifically states you won’t have coverage if you decide to quarantine and withdraw because you suspect you may have the virus but have not received a diagnosis. “It is important to note that the Tuition Refund Plan does not provide coverage for fear of contagion,” the policy says.
Before paying for tuition insurance, you should be clear on your school’s refund policy. You should also read the insurance policy details—along with any fine print. You should know exactly what types of college withdrawal the policy will allow, and what expenses (tuition, room and board, fees, etc.) the plan will cover.
You should also ask about the claims process. Will the insurer pay the school directly, or can you expect to receive a reimbursement check? If you contract the virus—and need to file a claim—you will be grateful to know those details in advance.
