April 26, 2023

Is tuition insurance worth it?

Pursuing a college education involves a significant investment. Case in point: the average annual tuition for public in-state four-year universities is $10,740, on average, while public four-year out-of-state university tuition costs are $25,760 and private four-year universities charge around $38,070, per College Board data for the 2021-2022 academic year.

Considering these expenses, the worst-case scenario for families is when their student has to withdraw from school after these costs have been paid. While you might get a refund, it may not be the full amount paid for tuition, fees, room and board, and other expenses. In fact, the entire amount may have to be forfeited.

Fortunately, a form of protection exists in tuition insurance, which will pay out in particular situations and serve as a valuable financial safety net for college students and their families if they have to pull out of school. Learn more about tuition insurance, what it covers and doesn’t cover, who offers it, and if it’s a worthy investment by reading my latest article for Forbes Advisor, available here.