What is Tuition Insurance for College?

From pet insurance to health insurance, there’s quite a lot of coverage options available for different aspects of life. There’s also tuition insurance, believe it or not. Here’s a rundown of what it is, what it covers (and doesn’t cover), and how you can get a policy.

A college student sits on a desk, researching tuition insurance on her laptop.

What is Tuition Insurance?

Some colleges and universities have systems in place for tuition refunds in case a student has to withdraw from school. These are often due to medical reasons or other serious challenges. However, not every school offers this. So what happens if you have to leave college in the middle of a semester? In most cases, you’ll lose the tuition you paid for that semester.

Tuition insurance allows you to recoup that money in the event you have to leave school early for a medical or another emergency. You may be able to get cheaper insurance, too, if the school you’re attending also offers their own refund systems or tuition insurance. Students usually have up to the first day of their college classes to purchase the insurance policy.

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What Does Tuition Insurance Cover or Not Cover?

Tuition insurance can generally cover all lost college costs if you have to leave for a qualifying reason. You can get back the money you spent on tuition as well as any fees, room and board, and other expenses. In some cases, tuition insurance may also cover you in the event you contract COVID-19, but this varies from plan to plan.

It’s also important to note that tuition insurance will not cover every reason for leaving school. In most cases, you will only be reimbursed if you leave for a medical reason. This will require a note from a doctor. The policy will only cover the semester you leave during – it won’t cover any education you completed in years previous. What a policy covers and doesn’t cover will be different from others, so be sure you understand the ins and outs of your own plan. Just because one policy covers COVID-19, for example, doesn’t mean all will.

Is It Right for You?

Of course, students don’t generally plan to leave school early or especially leave mid-semester, but it can happen due to serious medical concerns and illnesses. Having a backup plan, that tuition insurance can provide, is a great idea to protect your investment.

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Lender Rates (APR) Eligibility
Sallie Mae logo.
1.13% - 11.23% Variable
3.50%- 12.60% Fixed
Undergraduate and Graduate
VISIT SALLIE MAE
Credibe company logo.
0.99% - 11.99% Variable
2.94% - 12.99% Fixed
Undergraduate and Graduate
VISIT CREDIBLE
Lendkey company logo.
1.13% - 11.23% Variable
3.50% - 12.60% Fixed
Undergraduate and Graduate
VISIT LENDKEY
Ascent company logo.
1.51% - 9.09% Variable
3.24% - 11.33% Fixed
Undergraduate and Graduate
VISIT ASCENT
College Ave company logo.
0.99% - 11.98% Variable
2.94% - 12.99% Fixed
Undergraduate and Graduate
VISIT COLLEGE AVE
2.93% - 5.67% Variable
4.35% - 7.15% Fixed
Undergraduate and Graduate
VISIT ISL
Earnest company logo.
0.99% - 11.44% Variable
2.94% - 12.78% Fixed
Undergraduate and Graduate
VISIT EARNEST
1.20% - 11.52% Variable
3.20% - 11.99% Fixed
Undergraduate and Graduate
VISIT ELFi
College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.

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