Do you need Tuition Insurance?

What about College and Private School Tuition Insurance? Part 2

I saved my money every month from the time my children where born to the time they started college. That was the only way I was going to put them through college without putting me or my children in the poor house. But there is one thing that I never thought about while they were in college. What if my children had to leave college in mid semester due to illness, death, or some other disaster? For some of these people who pay for their children to attend a private school from K thru 12, what if the parents job goes south for one reason or another? What if the major breadwinner confronts a job layoff? What if they have to move away because the job demands it? What if your angle of a child gets a student's suspension from school?

In a few schools, if a child withdraws in a short time after starting, they will be refunded all or in part by the school. Many schools have other refund policies. Some schools provide up to a 60% refund if the student withdraws for mental health or emotional reasons. You should protect your investment in your child by asking the school administrator what the policies are for mid-semester withdraws. Many schools offer a third party insurance policy that may be something that you as the parent or the student may want to consider.


When figuring out if you do or don’t want to take the risk of losing tuition, you must think of two issues. The first is, who is paying for this education? If the person paying for this education has a job where the employer has a history or reputation of laying off workers, it might be reasonable to consider insurance, especially if the tuition is high at that institution. The second is the condition of the student. Does your child struggle with disciplinary problems? Is the child an angle at home but a devil away from home? If so, an insurance policy may come in handy.


For the parents who have children in a private school from K thru 12 grade, I have two extra questions? Do you, the parent, have a job that has a history of job transfers to other parts of the country? Are the parents in careers that require them to transfer to other parts of the country? If so, insurance is a good way to protect your children’s tuition.


According to Kenyon College in Gambier, Ohio, about 13% of students bought tuition insurance in 2007. Most people would rather self insure themselves. But for a small minority of students, the protection is worth the cost of insurance. With tuition rates skyrocketing and a weakening economy, obtaining tuition insurance may be the way of the future.