The same way you insure your property and valuables. This article will explain why tuition insurance is a necessary financial product for college and university students.

 

When a college student signs the education enrollment contract with the school of their choosing the student becomes responsible for the annual tuition, plus the room and board charges for the academic year.

 

Stemming from that student’s school enrollment, the college or university will have operating expenses which it must honor regardless of whether that student completes the full school year or if the student has to withdraw after the second month.

 

To protect themselves most schools will offer two tuition payment options. The first option enables a student to pay the entire year’s tuition, room, and board in one payment by a specified date, usually July 15.

 

 The second option allows the college enrollee to pay the annual tuition fee in two installments, or in monthly payments.  If the later tuition payment option is selected, then that student is required to purchase tuition insurance. 

 

In simplified form, the concept of tuition insurance is as follows:

 

1) The cost of a college or university education is a substantial investment.; 2) Student withdrawals are sometimes unavoidable; 3) Tuition insurance plans are a welcome resource for families and persons who must commit to a full annual tuition by signing a contract with the school. 4). In the event of a covered withdrawal or dismissal, payments made by the insurance plan can assist in fulfilling the contracted tuition payments.

 

What does tuition insurance cost? Typically, you will pay .009% to 1% of the face value of the education charges. Again, as noted above, tuition insurance is mandatory unless the college or university student pays all of the annual tuition costs in one upfront payment.

 

For more information regarding college and university tuition insurance go to HBCU College Grants found at https://www.hbcucollegegrants.com

 

Tuition insurance affords protection and peace of mind for students, parents and the school. The school knows that its income is assured. The student and parents know that they are protected in the event that the college enrollee is forced to withdraw from the school.

 

There are several reasons why that might be necessary. 

 

First, illness or injury.  The last thing any person wants is for something to happen to any college student. All of us, in our quiet reflective times, breathe a sigh of relief that our beloved college student has gotten this far without serious accident or injury.  Unfortunately, the reality is that the unexpected can and does happen. It is a tragic experience when a college student is required to withdraw from university due to illness or injury. Extended medical treatment and therapies can take months and will cause the college student to remain out of school. With tuition insurance, when the unexpected happens, at least you will not be on the hook for the balance of the year’s school expenses.

 

A second possible cause of withdraw from college is expulsion.  If a student is expelled from a college or university, that student’s tuition insurance will most likely pay most of the balance of the yearly expenses. For the legal details regarding school expulsion, make sure to read the fine print in the contract which the student enrollee and the school signed. Expulsion from a college or university is governed by contract law. The obligations of all parties are clearly spelled out in the contract signed by the student.  If the student breaks the rules, there will be consequences.

 

The third unexpected reason for with-draw from higher education schooling is death in the family. If that were to happen in the middle of the school year, and circumstances forced the student to withdraw, their financial obligation to the school would be taken care of by the mandatory tuition insurance.  

 

The fourth potential cause for the withdraw of a student from university is relocation.  This kind of unexpected event is usually tied to a career change of the parents or significant persons intimately tied to the college education of the student.  Suddenly there it is: the offer from your wife’s firm for her to head the London office. Are you going to turn an offer like that down? Of course not. You are going to withdraw your children and make the move knowing that your tuition insurance will cover the balance of the year’s school expenses.

 

The precise benefits of every tuition insurance plan are spelled out in the college or university tuition insurance contract. Read it carefully. If, for some reason, it does not cover unexpected events such as described above, then ask a trusted insurance agent to quote you coverage. The old adage: “Better safe than sorry” applies.

 

In closing, tuition insurance truly exists, and it is regularly needed and required.  For further essential information regarding tuition insurance check out HBCU College Grants at https://www.hbcucollegegrants.com.

 

This site will help you understand tuition insurance and will have all the answers concerning college financial aid which you need. Be smart — go to HBCU College Grants at https://www.hbcucollegegrants.com today!