For college students and their families, the idea of an unexpected illness, injury, or other serious reason leading to an extra semester in school can be financially overwhelming. The direct costs of an additional term, including tuition, housing, fees, and other expenses, can quickly escalate to tens of thousands of dollars. This financial burden is a stark reality that many families are unprepared for.

According to the College Board, here are the average annual costs of tuition and fees alone for full-time students in 2023-24:

• Public four-year in-state: $11,260
• Public four-year out-of-state: $29,150
• Private nonprofit four-year: $41,540
• Public two-year in-district: $3,990

When you factor in room and board, books, transportation, and other costs, a college's total annual price tag often exceeds $50,000 at private schools and $25,000 at public universities. Having to pay for an extra semester can be a significant financial setback.

Moreover, most colleges do not refund tuition beyond the first few weeks of the semester, even for withdrawals due to serious reasons, including medical reasons. If a student needs to withdraw mid-semester due to a serious illness, injury, mental health condition, or other reason, they may lose most or all of the money already paid. College is too important an investment to leave unprotected.

This is where tuition insurance can provide valuable peace of mind. Tuition insurance plans, such as those offered by GradGuard, can reimburse up to 100% of tuition, housing, and fees if a student needs to withdraw for a covered reason. This includes many of the most common conditions that cause students to withdraw, such as:

• Mononucleosis
• Anxiety
• Concussions
• Depression
• Flu

Other covered reasons include the death or involuntary job loss of a tuition payer, depending on the plan.

The American College Health Association reports that over one-third of students have been diagnosed with anxiety, over one-fourth with depression, and many others with injuries and illnesses that can disrupt their studies. The National Student Clearinghouse found that 113,000 students took leaves of absence in 2021 alone. For many, tuition insurance could mean the difference between a temporary setback and a significant financial loss.

When considering tuition insurance, families should:

1. Understand their school's refund policy and how much tuition/housing is at risk after the semester starts
2. Determine if they could readily afford the high cost of an extra semester out-of-pocket
3. See if their school offers tuition insurance, as they can often save up to 50% by purchasing through the college
4. Make sure to get a policy before the first day of classes, as plans cannot be purchased after that

While an extra semester can be expensive, the long-term value of a degree makes it important to persevere after a setback. With tuition insurance, students can be confident in their ability to complete their education, knowing they can be protected against financial losses from an unexpected withdrawal for a covered reason. It can also provide the opportunity for a "do-over," as 75% of students re-enroll or plan to re-enroll after a covered withdrawal, according to a GradGuard survey from June 2023.

To learn more and find a plan right for your family, visit GradGuard.com/tuition. For as low as around 1% of the cost of tuition, you can safeguard your college investment and gain priceless peace of mind.