New ACHA Data Demonstrates the Need for Tuition Insurance
Updated data from the American College Health Association (ACHA) National College Health Assessment shows that health conditions, physical and mental, are continuing to delay college students on their path to graduation. These realities prove the need for families and students to protect their financial investments in their education. 113,000 students withdrew in 2021, according to the National Student Clearinghouse. When considering the average cost of a semester is $12,350, those families alone stand to lose more than $1.4 billion in tuition and housing expenses as a result of unexpected withdrawals.
Impacts of Mental Health Conditions on Students
According to the ACHA, 1 in 4 (25%) of students report being affected by depression, 1 in 3 (33%) students report being affected by anxiety, and 1 in 2 (50%) report being affected by stress. Recent data from the Lumina Foundation-Gallup State of Higher Education 2022 report supports the ACHA findings and demonstrates the real impact of mental health issues on enrollment and graduation, showing 41% of all students enrolled in a postsecondary education program have considered "stopping out" in the past six months. Fifty-five percent of those students cite emotional stress as a factor.
In a recent NACUBO webcast, Nance Roy, Chief Clinical Officer for The Jed Foundation reflected on her own experience with on-campus mental health. "I've sat with so many students, as a dean and assistant dean, who want to take a leave to seek help for their mental health and feel as though they can't because they think they or their parents are going to lose a lot of money," Roy explained. "I would call the bursar's office to check whether the student had gotten tuition insurance, and for the ones that had, you could see visible relief on their face -- realizing they could afford to take the time to get well without causing financial burden."
Impact of Physical Health
Beyond mental health conditions, students and families should account for unexpected injuries and illnesses when planning for college. According to the ACHA, students reported a significant impact from concussions (64%), mono (54%), and the flu (52%). With many physical health conditions being treatable or temporary, students and parents should make sure the financial impact does not preclude them from returning to campus.
Protecting Your Education Investment
GradGuard co-founder and managing director John Fees said, "Financial investments in college are the second largest investments most individuals make in their lifetime, only after buying a home. Students and families are increasingly at risk, not only due to the growing number of unanticipated health challenges but because of the unpredictability of the economy and its ever-evolving impact on the job market."
GradGuard is proud to be the only tuition insurance program in the country that can reimburse up to 100% of the financial losses when a student needs to withdraw due to a covered reason, such as a covered mental or covered physical illness."
About GradGuard
GradGuard is the #1 provider of college renters and tuition insurance. Since 2009, GradGuard has protected more than 1.3 million students at more than 1,800 unique institutions. GradGuard's innovative protections are embedded within the enrollment processes of the largest and most prestigious universities in the United States, ensuring their students are protected from the risks of college life.