DEFINITION of 'Tuition Insurance'

A type of insurance that allows families to recoup some or all the tuition paid should their child leave school midway through the semester. Tuition insurance is usually offered for students in elementary and secondary schools. Some companies also offer tuition insurance to students in public and private colleges. To file a claim for reimbursement, parents and students have to prove that the reason for withdrawing from school meets certain conditions, which might include job loss, illness, etc. Different schools have different conditions that must be met before a reimbursement claim can be honored and is the duty of the students and parents to be aware of these conditions.

BREAKING DOWN 'Tuition Insurance'

Before obtaining tuition insurance, families must remember that certain schools will reimburse part or all of a student's tuition if they withdraw by a certain date. Therefore, it is imperative that families of students look at the conditions required for filing a reimbursememnt claim and weigh the likelihood of meeting those conditions. For example, if a student has a history of poor health, tuition insurance might be something to consider, because the student might have to drop out of school due to serious illness. However, if this is not the case, the family might need to explore other college saving options besides tuition insurance.


RELATED TERMS
  1. Prepaid Tuition Program

    One of the two major types of 529 plans. Prepaid tuition plans ...
  2. 529 Prepaid Tuition Plan

    A tax-advantaged method for paying future college tuition costs ...
  3. Qualified Higher Education Expense

    Expenses such as tuition and tuition related expenses that an ...
  4. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
  5. Cost Of Attendance

    A figure provided by colleges and/or college financial offices ...
  6. CSS/Financial Aid PROFILE®

    Besides the FAFSA, you may need this online form to apply for ...
Related Articles
  1. Insurance

    Should You Have Tuition Refund Insurance?

    A child dropping out of school can mean forfeiting pricey tuition. Find out what protection is available and when it's worth it.
  2. Personal Finance

    How to Get Paid to Go to School

    Tuition benefits, grants and scholarships can help you get paid to go to school, and enjoy the payoff from your degree without racking up student debt.
  3. Managing Wealth

    A 529 Plan Fit For An Ivy League Education

    The Independent 529 plan offers a unique investment for those wanting to send their kids to the best colleges in the U.S.
  4. Personal Finance

    3 Reasons to Attend College in Canada

    Attending college in Europe might be the dream, but with low tuition fees and weakening currency, Canada is the financially responsible choice.
  5. Personal Finance

    Pay For College Without Selling A Kidney

    Save thousands of dollars on tuition with these tricks and little-known programs.
  6. Personal Finance

    A Beginner's Guide to Getting Student Loans

    Follow these 5 steps and you'll be well on your way to knowing which loans to go after – and which college really offers you the best deal.
  7. Personal Finance

    10 Companies That Will Pay for Your MBA (BAC, WFC)

    Discover ten institutions of higher learning that are willing to help finance your MBA in exchange for your commitment to work for them.
  8. Personal Finance

    Looking for a Tuition-Free College? Move Abroad

    College tuition abroad is free in some cases, allowing students to get a debt-free jump on life. But you might need to brush up on your German.
  9. Personal Finance

    5 Colleges That Are Slashing Tuition Costs

    Schools are cutting tuition fees because of the economic times. We tell you which ones are cutting prices.
  10. Personal Finance

    The Last States With Prepaid Tuition Plans

    Prepaid tuition could save you thousands of dollars and unwanted stress. Find out where you can still find them.
RELATED FAQS
  1. Student loans, federal and private: what's the difference?

    Learn about the differences between federal and private student loans, and discover the types of federal funding available ... Read Answer >>
Trading Center