Tuition Refund InsuranceWhat it Does, Why it Helps & How to Get Coverage

There is a Need for Greater Transparency

College is one of the larger investments a family is likely to make, carrying a yearly cost

comprising the second largest household expense*.

In this context, it’s quite troubling that parents and students are generally unaware of the risk

associated with paying for college.

*Comparison of June 2011-June 2012 BLS data for consumer expenditures (http://www.bls.gov/news.release/cesmy.nr0.htm) and the net tuition, fees, room & board from College Board, Trends in College Pricing 2012 (http://trends.collegeboard.org/sites/default/files/college-pricing-2012-full-report-121203.pdf)

There is a Need for Greater Transparency

• Only 30% of parents* surveyed recall being informed of the schools medical refund policy

• 63% of parents* surveyed had no idea how their school would handle a refund due to a medical withdrawal

Survey designed by College Parents of America and implemented by Sallie Mae Insurance Services of *Parents of dependent undergraduates where student is entering or enrolled in first or second year at a traditional four- or two-year college and does not live at home. Sample not weighted to actual distribution of families that meet this criteria. Survey conducted online June 2013 using a national panel. Margin of error is estimated to be +/- 4 percentage points with a confidence level of 95% on the whole sample of 598.

June 2013 survey of college parents:

Focus on Student Success

The OECD believes that a bachelor’s degree from the United States will

return over $300,000* to the graduate.

But, while college is a great investment, it isn’t free from risks that may disrupt a

students education.

Education at a Glance 2012, OECD indicators, Indicator A9, page 167.

The Possibility of Disruption Is Real

Sources:“4 in 10”: http://nces.ed.gov/programs/digest/d12/tables/dt12_376.aspL”ife Events”: Pleskac, T.J., Fandre, J.*, Merritt, S., Schmitt, N., & Oswald, F. (2011). A detection model of college withdrawal. Organizational Behavior & Human Decision Processes, 115, 85-98“Non-Graduates are Costly”, stats 1 & 2: http://www.educationsector.org/publications/degreeless-debt-what-happens-borrowers-who-drop-out

College Education: a Major Investment

Investing in a college education may seem similar to other consumer purchases, but it can be “at risk” to university policies that may not be disclosed to students & their families.

Inconsistent & Changing Refund Policies

A College Parents of America research study on refund policies at 215 institutions of higher education found that, after 5 weeks, 46% of institutions studied refund 0% of tuition and fees while offering no withdrawal appeals process.

Source: College Parents of America Study 2010 – 2011. Values by respective category: 46.05%, 8.84%, 13.02%, 19.07%, 15.81%

46%No refund, no appeal

Can you Afford the Loss?

Your need for Tuition Refund Insurance depends largely upon if you can afford the loss.

College Parents of America suggests that all parents and their students will benefit from having at least $5,000 of Tuition Refund Insurance and as such includes it with each paid membership.

You may not need tuition insurance if:

a) Your school refunds 100% of tuition and academic fees.

b) You can afford the financial loss that may result from a medical withdrawal of your student.

College Parents of America & Tuition Insurance

The College Parents of America group Tuition Refund Insurance plan is a plan that refunds what schools don’t in the case of a medical withdrawal.

If your school only refunds tuition for the first three weeks of the semester, Tuition Refund Insurance will refund the rest if your student withdraws for medical or mental health reasons.

You’ll be covered for that semester for covered losses in tuition, fees, housing costs and other verified academic related losses

Before purchasing - check Policy for complete terms, conditions and limitations.

How it Works

College Parents of America’s Tuition Refund Insurance is included in a CPA membership and features:

• 100% reimbursement up to the policy limits for a semester’s covered costs for medical withdrawal

• 100% reimbursement up to the policy limits for a semester’s covered costs for mental health withdrawal

In addition, the plan also provides:

• 100% reimbursement up to the policy limits for a semester’s covered costs should the student need to withdraw due to the death of the tuition payer.

Why Doesn’t Everyone Have Tuition Insurance? While it does indeed provide peace of mind for any parent, one might ask, “Why doesn’t everyone have tuition refund insurance?”

Maybe it’s because we think college students are all completely healthy, or that nothing bad will befall them.

Unfortunately, statistics show the prevalence of college student health problems.

• 20.8% of all college students have at least one mental health condition that has been treated or diagnosed in the last 12 months.

• 1.9% of all college students have been diagnosed or treated in the last 12 months for Mononucelosis.

• 10.37% of all college students have had strep throat in the past 12 months. • 4.9% of all college students have been diagnosed with a chronic illness

(cancer, diabetes, auto-immune disorders)

Source: the 2012 American College Health Association Fall Survey

The Danger of Physical and Mental Health Risks

College Medical & Family Death Withdrawal

Of college students withdrew or had a close friend withdraw for these reasons in the past two years.*

Hospitalized College Students in the Past 2 Years

Of college students were hospitalized or had a close friend hospitalized.*

Often these problems can interfere with your student’s education.

In Virginia, 56 students per public college withdraw each year for mental health reasons... a number that the study warns might be too low. (Virginia College Mental Health Survey: http://services.dlas.virginia.gov/User_db/frmView.aspx?ViewId=2742 )

12% 38%

The risk of an interrupted college education is real.

*Spring 2012 Survey by College Monitor

Why am I Just Now Hearing about This?

Tuition Refund Insurance has existed for more than 60 years but it has been traditionally tied to a few expensive private schools.

College Parents of America offers Tuition Refund Insurance as an exclusive membership benefit.

Our mission is to support programs that promote student success – tuition insurance helps students overcome the financial loss from medical withdrawals that may disrupt a students education.

“If tuition refund insurance is so great, then why haven’t I heard about it before?”

How Much Does it Cost?

When a college or university offers Tuition Refund Insurance as part of its billing process, it can be very affordable.

• Schools such as University of Southern California provide $40,000 of annual tuition insurance for approximately $140 per year.

• If your school plan appears expensive, speak with the school about alternatives. High parent participation generally reduces rates which lead to greater coverage and affordability.

Protect Your Investment in College

Before choosing or paying for college, 1) Contact your school’s Admissions, Bursar or

Financial Aid Office to ask what their refund policy is.

2) Ask the school official if they offer tuition insurance.

3) If you are not pleased with the cost, ask the school to provide a convenient enrollment option within the billing process.

Where Else to Find Coverage

If your college does not offer Tuition Refund Insurance, you may also receive tuition insurance coverage as part your membership College Parents of America or as a feature of another product such as a student loan or student health insurance policy.

Companies such as Sallie Mae and AETNA also include tuition insurance benefits as part of their products.

For more information, please contact us:www.CollegeParents.org or call (888) 761-6702