Tuition insurance is an

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

protecting

student A student is a person enrolled in a school or other educational institution. In the United Kingdom and most commonwealth countries, a "student" attends a secondary school or higher (e.g., college or university); those in primary or elementar ...

s attending cost-intensive educational institutions -

school A school is an educational institution designed to provide learning spaces and learning environments for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is sometimes compuls ...

college A college (Latin: ''collegium'') is an educational institution or a constituent part of one. A college may be a degree-awarding tertiary educational institution, a part of a collegiate or federal university, an institution offering ...

s or

universities A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United States, t ...

- from the financial loss that may result from the student’s involuntary withdrawal from his or her studies. It usually covers withdrawals due to medical reasons and the death of the student’s legal guardian(s) by either refunding or covering the costs associated with attending the student’s institution. Tuition insurance may also cover

student loan A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest r ...

s. Tuition insurance can be obtained through educational institutions or directly from an insurance provider. It can also be obtained as part of a student loan. Most tuition insurance policies cover the cost of

tuition Tuition payments, usually known as tuition in American English and as tuition fees in Commonwealth English, are fees charged by education institutions for instruction or other services. Besides public spending (by governments and other public bo ...

in whole or partly if a student has to withdraw from his or her studies due to medical reasons; however, this may be limited to the first weeks of the semester. If the withdrawal is due to mental health reasons the reimbursement rarely exceeds 60%. Tuition insurance has existed since 1930. It benefits both students and educational institutions since it may cover the money a student owes an educational institution in case the tuition payer can no longer cover these costs.

References

{{Reflist Education finance Types of insurance