Students paying with loans or financial aid are still eligible for tuition insurance. Learn what gets reimbursed and how grants and scholarships are handled.
Yes. Students who pay for all or part of their tuition using student loans or financial aid are still eligible to purchase GradGuard Tuition Insurance.
How does reimbursement work with student loans?
If a student withdraws for a covered reason and still owes their student loan after the school processes its refund, GradGuard Tuition Insurance may reimburse that remaining out-of-pocket amount.
Here's how it works in practice:
- The student withdraws for a covered reason
- The school processes its own refund to the student's account (if any)
- GradGuard Tuition Insurance can reimburse the non-refundable costs that remain — which may include the portion financed by student loans, if the student is still responsible for repaying them
The key principle: tuition insurance can reimburse costs you're still responsible for after the school's refund policy has been applied.
How does reimbursement work with financial aid?
The same logic applies to financial aid. If a student withdraws and their financial aid is reduced or must be returned, tuition insurance can help reimburse you for the resulting out-of-pocket gap.
However, tuition insurance does not reimburse grants or scholarships that were paid directly to the school and that the student was never personally responsible for repaying. Only costs the student is actually out-of-pocket for are eligible for reimbursement.
What this means in practice
Eligibility for reimbursement depends on plan terms, the school’s refund policy, and other conditions. Review your plan details for specifics.
| Funding source | Eligible for reimbursement? |
| Student loans (still owed after withdrawal) | Yes |
| Out-of-pocket payments | Yes |
| Financial aid returned to lender after withdrawal | Yes, for the student's remaining balance |
| Grants paid directly to the school | No |
| Scholarships paid directly to the school | No |
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.