January 24, 2022

Bucks: How Tuition Refund Insurance Works at Your School

In this weekend’s Your Money column, I write about Sallie Mae’s entry into the world of tuition refund insurance. Parents buy these policies in case their child needs to withdraw from college (or private nursery, primary or secondary school) for medical reasons sometime during the school year.

Many schools for the 18-and-under set require parents to purchase tuition refund insurance policies, though apparently only one college does. (Anyone know which one? The company, A.W.G. Dewar, which underwrites the policy at that school, wouldn’t name it.)

Sallie’s policy, meanwhile, covers withdrawals for physical illness or injury at 100 percent but pays only 75 percent when students with full coverage must leave school because of a mental illness. Is this discriminatory, or just good underwriting? Have your say in the comments below.

Meanwhile, I’m also interested in hearing how you decided whether to buy this coverage when the come-on arrived with the tuition bill. Or did your school make you buy it, and if so, how did it justify forcing your hand? And who among you has made a mental health claim on a tuition refund insurance policy — and what kind of process did you have to go through?

Article source: http://feeds.nytimes.com/click.phdo?i=99b75165b34e7afa76195b2dc30368e5

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