We are dropping off our eighteen-year-old twins over the next few weeks. We’ve done the drop-off before with their older siblings, but somehow it doesn’t get any easier. We are pleased that both of our last kids have found great schools that fit their interests and personalities, and are confident that the investment in this next stage will be worth it.
But after more than 30 years building companies at the intersection of education, financial services, and technology, including more than a decade building GradGuard,
Like most parents doing the college drop-off, I’ve spent plenty of time thinking about tuition bills, move-in day, residence halls, and meal plans. While we have a budget for the next four years of tuition, housing, and fees, it doesn’t include the cost of an extra semester or replacing a backpack filled with electronics and books essential for coursework.
Other parents often ask me what I recommend and how GradGuard helps. Here is my short list:
Know the college’s refund policy. Most families don’t realize how little of their investment is protected if their student has to withdraw. The majority of school refund policies don’t extend beyond the first few weeks of the semester, and even when a school offers a full tuition refund, most do not refund academic fees or student housing expenses. A recent Gallup–Lumina Foundation State of Higher Education study found that nearly 1 in 3 currently enrolled students have considered stopping out of their degree program—often for reasons unrelated to academics, with emotional stress and personal mental health chief among them. A health-related withdrawal can happen to any family, at any time, and often without warning.
Consider tuition insurance before classes begin. GradGuard Tuition Insurance can reimburse up to 100% of tuition, academic fees, and eligible housing costs if a student must withdraw for a covered medical reason, including physical illness, injury, or a covered mental health condition. Tuition insurance helps a student get back on their feet after a withdrawal without the added burden of a financial loss. If your school doesn’t offer tuition insurance, then send an email to the admissions, bursar, or parents’ office, as it is the most affordable way for families to protect their investment. Schools that work with GradGuard save students money, with the cost of coverage typically at around $120 for $10,000 of coverage.
Know the risks of campus life. GradGuard has paid thousands of claims, and data confirms that campus life carries real property risk. According to Clery Act data compiled by the U.S. Department of Education and NCES, roughly 23,400 criminal offenses happen on campuses annually, including about 6,500 burglaries, 3,500 motor vehicle thefts, and 400 arsons. The Clery Act doesn’t count ordinary larceny — the stolen laptops, phones, bikes, and backpacks that are, by wide account, the most common crimes on campus. In other words, the everyday thefts most likely to hit a student’s wallet do not even appear in the 23,400 figure, which means the true volume of campus theft is considerably higher. Water damage from both accidents and fires can create personal liability for students who cause them. Clery data reports an average of nearly 2,000 fires in on-campus student housing annually.
Purchase renters insurance for your student. If you are like us, we have upgraded our students’ laptops and invested in a number of purchases that will help them academically. Considering all of the belongings they’re bringing with them to college, including bikes, books, and everything else, our students have thousands of dollars of property. Many backpacks can cost thousands of dollars to replace if they are stolen, especially since they’re likely holding a laptop, headphones, and other pricey electronics. While our homeowner’s insurance provides some coverage (20% of property coverage), my $5,000 deductible and the certainty that my rates will likely go up if I make a claim for a student loss make renters insurance a more practical alternative. GradGuard Renters Insurance is designed specifically for students. It includes an exclusive student endorsement with a low $100 deductible, no sublimits on electronics, and worldwide property coverage. If you attend a school that already works with GradGuard, your student will also be automatically eligible for preferred pricing of around $15 a month, making renters insurance a smart purchase.
Don’t pay twice for student health insurance. Many colleges and universities still require student health insurance. These schools, including both of the schools my kids are attending, require families to purchase their health insurance (often $4,000 or more) and bill students if you haven’t demonstrated coverage acceptable to the school. A big mistake families can make is paying twice for health insurance. Be sure to waive coverage if you don’t need it.
I am optimistic that our twins will have a fantastic college experience. Beyond the personal benefits that make it one of life’s most valuable investments, it is a time of tremendous personal and professional growth.
The overwhelming majority of students will have an incredible experience, and the families who take an hour before move-in to understand their refund policy, coverage gaps for personal property and liability, and their options are the ones who protect that experience, rather than letting one bad semester derail it.
Our twins are prepared, and I am thankful, not just as a co-founder of GradGuard, that relevant protections exist that are designed specifically for the risks of college life. Feel free to contact me with more questions or visit GradGuard.com.
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