Tuition insurance is designed to offer protection for unexpected medical withdrawals — not every reason a student might leave school. Understanding what isn't a covered reason is just as important as knowing what is.
Withdrawal reasons that are not covered
The following reasons for withdrawal are not considered covered reasons under GradGuard Tuition Insurance:
Voluntary withdrawal
A student who chooses to leave school for personal reasons — changing their mind about their program, deciding to take a gap year, or any other non-medical decision — is not included as a covered reason for protection.
Academic dismissal
Withdrawal due to academic failure, expulsion, or dismissal by the institution is not included.
Financial hardship
Inability to pay tuition or other financial circumstances are not considered covered reasons for withdrawal. However, loss of income may be a covered reason depending on your plan – specifically if the tuition payer is terminated or laid off from a permanent position through no fault of their own on or after the Policy Effective Date.
School closure or program cancellation
If a school closes, cancels a program, or moves to remote learning, those circumstances are not covered under the student's plan. Protection applies to the individual student's medical situation, not institutional decisions.
Costs that are not covered
Even in a covered medical withdrawal, the following costs are not reimbursed:
- Tuition and fees that the school has already refunded — only the non-refundable portion is covered
- Security deposits for on-campus or off-campus housing
- Ongoing rent payments beyond early termination fees for off-campus housing
- Costs for periods outside the covered term
- Costs associated with programs at ineligible institutions (trade schools, non-accredited programs, continuing education)
Pre-existing conditions
Losses caused directly or indirectly by a pre-existing condition are excluded — unless the pre-existing condition waiver applies. If the student was healthy and medically cleared to start classes at the time of purchase, the waiver may apply and pre-existing conditions could be covered. See our pre-existing conditions FAQ for full details.
Where can I review the full list of exclusions?
The complete list of covered and excluded reasons is in your plan documents. To review a sample plan before purchasing:
- Start your quote at gradguard.com/tuition/enroll
- Enter your school and basic information
- Select "Plan & pricing details, and disclosures"
- Select "Plan details" to view the full terms and exclusions for your state
Terms, conditions, and exclusions (including for pre-existing conditions) apply. Plans only available to U.S. residents and may not be available in all jurisdictions. Insurance benefits are underwritten by Jefferson Insurance Company. GradGuard, a service of Next Generation Insurance Group, LLC (NGI), is the licensed agent for all insurance programs. Plans include insurance benefits and assistance services. Non-insurance benefits/services, and claims administration, are provided by AGA Service Company.