Tuition insurance can reimburse up to 100% of non-refundable tuition, fees, and housing if a student must withdraw from college or university for a covered medical reason.
Tuition insurance can protect the money you've invested in college. If a student has to completely withdraw from school during the semester due to a covered injury, illness, or mental health condition as advised by a licensed medical or mental health professional, tuition insurance can reimburse non-refundable tuition costs, academic fees, and housing — up to the limit of your plan.
Just as you'd insure a car or a home, tuition insurance can help protect one of the largest investments most families make.
What does tuition insurance cover?
GradGuard Tuition Insurance can reimburse up to 100% of non-refundable costs, including:
- Tuition and academic fees not refunded by the school
- On-campus room and board costs not refunded by the school
- Off-campus housing costs, subject to plan terms (see our on and off-campus housing protection guide for details)
Plans also include Student Life Assistance benefits, which provide support services for students and families navigating a withdrawal.
What qualifies as a covered reason?
A covered reason for withdrawal as advised by a licensed medical professional for the covered term can include:
- Covered serious injury or illness. Such as mononucleosis or a severe head injury.
- Chronic illness such as an auto-immune disorder or diabetes.
- Mental health conditions such as stress, depression, or severe anxiety.
- Death of a tuition payer such as a parent or guardian.
- Involuntary loss of employment of a tuition payer.
The student must completely withdraw from the term — partial withdrawals or dropping individual courses are generally not covered. You can review the full list of covered and excluded reasons in your sample plan during the quote process.
What is not covered?
Tuition insurance does not cover voluntary withdrawals, academic dismissal, or financial hardship. It also does not reimburse costs that the school has already refunded to you — only the non-refundable portion of your tuition and fees.
Is tuition insurance worth it?
That depends on a few factors: how much non-refundable tuition is at risk, what your school's own refund policy looks like, and your family's tolerance for that financial exposure.
Most colleges have a refund schedule that returns a portion of tuition early in the semester but little or nothing after the midpoint. For a student paying $15,000–$25,000 per semester, a medical withdrawal mid-term could mean losing the full amount. Tuition insurance is generally priced as a small percentage of the covered tuition amount — a relatively small premium against significant financial risk.
For families asking "should I get tuition insurance," it's worth considering:
- How flexible is your school's refund policy?
- Would an unexpected withdrawal cause serious financial hardship?
If these factors are a concern for you, tuition insurance is likely worth the cost.
How much does tuition insurance cost?
Tuition insurance plans are priced as a percentage of the tuition amount you want to cover. The exact cost depends on your school, the coverage amount you choose, and whether you select a single-term or multi-term plan.
You can get a quote in minutes at gradguard.com/tuition. No personal health information is required to get a price.
How do I see what a plan actually covers?
You can view a sample plan document during the quote process:
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Start your quote at gradguard.com/tuition/enroll
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Enter your school and basic information
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On the quote page, select "Plan & pricing details, and disclosures"
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Select "Plan details" to review a sample plan for your school
Frequently asked questions
What is tuition insurance?
Tuition insurance can reimburse students and families for non-refundable tuition, fees, and housing costs if the student has to completely withdraw from school during the semester due to a covered reason.
What does tuition insurance protect?
It can protect non-refundable tuition, covered academic fees, and room and board costs — up to 100% of the covered amount, depending on the plan.
Does tuition insurance cover mental health withdrawals?
Yes. GradGuard Tuition Insurance may protect against withdrawals due to mental health conditions, as long as the withdrawal is advised by a licensed medical professional.
Terms, conditions, and exclusions apply, including for pre-existing conditions. Plans only available to U.S. residents and may not be available in all jurisdictions. Recommended and provided by GradGuard, a service of Next Generation Insurance Group, LLC (NGI), the licensed agent for all insurance programs. AGA Service Company, dba Allianz Partners, compensates GradGuard, their national program management partner, for the marketing, distribution and administration of the products. Insurance plans include insurance benefits and assistance services. Pricing may vary by state. Insurance benefits are underwritten by Jefferson Insurance Company (NY, Administrative Office 9950 Mayland Drive, Richmond, VA 23233) rated “A+” (Superior) by A.M. Best Co., A+ (Superior) is the 2nd highest standard of A.M. Best’s 13 Financial Strength Ratings. Non-insurance benefits/services are provided by AGA Service Company. Claims are administered by Allianz Partners. Allianz Partners is a mark of AGA Service Company or its affiliates. AGA Service Company is an affiliate of Jefferson Insurance Company. Plans include insurance benefits and assistance services. Except as expressly provided for under the plan, consumer is responsible for charges incurred from outside vendors. Contact AGA Service Company at 888-427-5045 or 9950 Mayland Dr., Richmond, VA 23233 or tuition@allianzassistance.com. Schools do not receive compensation for purchase.