Tuition refund insurance is essential for protecting families against financial loss due to medical withdrawals from college, as many institutions have unclear refund policies and may offer very limited refunds. The College Parents of America offers this insurance as a membership benefit, advocating that parents and students consider at least $5,000 of coverage to mitigate potential tuition losses. Despite its importance, awareness of tuition insurance remains low, often because families underestimate the risks associated with college attendance.

1. Tuition Refund Insurance
What it Does, Why it Helps & How to Get Coverage

2. 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)

3. 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:

4. 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.

5. The Possibility of Disruption Is Real
Sources:
“4 in 10”: http://nces.ed.gov/programs/digest/d12/tables/dt12_376.asp
L”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

6. 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.

7. 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

8. 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.
a) You can afford
the financial loss
that may result
from a medical
withdrawal of
your student.

9. 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.

10. 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.

11. 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)
Insurance?!
While it does indeed provide peace of mind for any parent, one
might ask, “Why doesn’t everyone have tuition insurance?”
Maybe it’s because we think college students are all completel
healthy, or that nothing bad will befall them.
Unfortunately, that’s not the case.
Source: the 2012 American College Health Association Fall Survey
•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
months for Mononucelosis.
•10.37% of all college students have had strep throat in the past 12 mon
•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

12. 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 )
The risk of an interrupted college education is real.
*Spring 2012 Survey by College Monitor

13. 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?”

14. 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.

15. 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.

16. 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