Student Heading to College? GradGuard Wants Families to Know the Investment is Not Risk-Free

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Aug 11, 2023, 08:39 ET

PHOENIX, Aug. 11, 2023 /PRNewswire/ -- With the rising costs of tuition, housing, and other essential expenses, nearly 3 million students are starting college for the first time, and families are making significant financial commitments to support their children's pursuit of higher education. However, unforeseen events can quickly turn what for many families is often the second largest investment in their lives into a substantial financial loss.

Without proper coverage, college families are vulnerable to potential financial losses

"The National Student Clearinghouse reports 113,000 students took a leave of absence in 2021, including for medical reasons," said John Fees, co-founder and CEO of GradGuard. "When you consider the average cost of attendance to be $18,000 a year, that totals more than $2 billion that families lost."

GradGuard urges families to understand and plan for the following potential financial risks this upcoming school year:

Fires, floods, theft, and more: Many families might overlook the importance of renters insurance for their students living off-campus or in on-campus housing. Without proper coverage, students and their families are vulnerable to potential financial losses due to theft, fire, water damage, and other unexpected events.

According to Clery Act Reports, an average of over 24,000 crime and safety incidents have been reported annually on college campuses since 2009.

2,411 robberies were reported on average annually.
1,840 fires were reported on average annually.
20,521 burglaries were reported on average annually.

Renters insurance can help provide replacement costs if a pipe bursts in a residence hall, a fire happens on an off-campus housing facility, or a student's laptop were stolen. GradGuard's college renters insurance provides peace of mind and protection against these risks, ensuring that students can focus on their studies without worrying about the cost of replacing their belongings.

Serious illnesses, injuries, death of a tuition payer, and more: Life is unpredictable, and sometimes, circumstances beyond a student's control can force them to withdraw from college mid-semester. Families who are unaware of tuition refund policies might face significant financial losses.

According to the 2022 GradGuard/College Pulse College Confidence Index, most students struggle with maintaining their personal well-being, including mental health, at a time when an understanding of refund policies is low.

74% of students and 66% of parents report they are unfamiliar with the refund policies of their college or university. (College Confidence Index, 2022)
52% of parents report it would be difficult for them to pay for the cost of an extra semester. (College Confidence Index)
69% of students who consider withdrawing cite emotional stress as the reason for stopping school. (Gallup-Lumina Foundation, 2022)

If a student must withdraw from college due to a serious illness, injury, or accident, it's unlikely they will receive a full refund for tuition, let alone for housing or other fees. Tuition insurance can help protect families from the financial impact of unexpected withdrawals due to a covered illness, injury, or other covered reason and can provide reimbursement for tuition, housing, and academic fees when schools do not. Covered reasons can include illnesses and injuries such as mono, concussions, and mental health conditions, as well as the death of a tuition payer.

"College is a significant investment for families, and families are smart to be aware that it is not risk free," said Fees. "If you cannot afford the cost of another semester or unintentional damages to a residence hall, consider protecting yourself with GradGuard's tuition and renters insurance plans."

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. Recommended and provided by GradGuard, a service of Next Generation Insurance Group, LLC (NGI), the licensed agent for all insurance programs. 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 of A.M. Best's 13 Financial Strength Ratings. Non-insurance benefits/services are provided by AGA Service Company. Claims are administered by Allianz Global Assistance (AGA). AGA and Allianz Tuition Insurance are marks 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 [email protected] .

About GradGuard:

GradGuard is the #1 provider of college renters and tuition insurance. Since 2009, GradGuard has protected more than 1.3 million students at more than 1,800 unique institutions. GradGuard's innovative protections are embedded within the enrollment processes of the largest and most prestigious universities in the United States, ensuring their students are protected from the risks of college life.

Media Contact:
Natalie Hubertus
650-302-5656
[email protected]

SOURCE GradGuard