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GradGuard Strengthens Tuition Insurance Program as Mental Health Crisis Among College Students Worsens

Published Date
Author Natalie Hubertus

GradGuard’s tuition insurance program can provide reimbursement when colleges may not to students who withdraw due to a covered mental health condition or other covered reason.

PHOENIX (July 7, 2022): GradGuard, the nation's leading authority on helping protect college students and their families from the risks of college life, is pleased to announce the addition of up to 100% mental health protection on new tuition insurance plans purchased through GradGuard partner schools.

Tuition insurance can provide reimbursement for a complete medical withdrawal due to a covered illness or injury, including mental health conditions and the death of a student or tuition payer. GradGuard is now the first and only provider to ever insure up to 100% protection at all participating colleges and universities.

"The growth of mental health conditions in college students continues to be a real risk to the investment families are making in higher education," said John Fees, Co-founder and Managing Director of GradGuard. "Though colleges and universities are providing robust services to support their students, they are unlikely to provide a full refund for non-refundable expenses if a student cannot complete the semester."

If a student has a pre-existing condition like serious anxiety or mental health conditions, and they are medically cleared to attend school at the time they purchase the insurance, GradGuard can protect them. If they must withdraw under the recommendation of a licensed medical professional, tuition insurance can protect their housing, their tuition, and student fees.  

"GradGuard's Tuition Insurance can help reduce the stress students face in these situations and help everyone focus on the well-being of the student," said Fees. 

The mental health coverage can provide protection for when an insured student completely withdraws from school for a covered term due to a covered mental health condition. Tuition insurance also includes a pre-existing condition waiver that provides coverage for existing conditions as long as the student meets the outlined criteria in the plan documents.

As the leading provider of college tuition and renters insurance programs, GradGuard continues to show its commitment to helping college students and families with this new program. The benefit comes at a time when all college families are smart to consider protecting their investment with tuition insurance. 

Amid surging mental health issues facing students and emerging Covid-19 strains, enrollment in higher education declined for a fifth straight semester, according to new data from the National Student Clearinghouse Research Center.

The implications of college students experiencing declining mental health conditions are serious, as students who drop out end up leaving worse than when they entered. Many carry high levels of student debt, which when not coupled with a higher-earning degree, is worrisome. 

Among the statistics:

  • Nearly a third of students pursuing a bachelor's degree considered withdrawing from their program for a semester or more in the past six months, according to The State of Higher Education report published in April 2021 by the Lumina Foundation and Gallup. The same report showed 76% of students who consider withdrawing cite emotional stress as the reason for stopping school. 
  • Nearly 40% of students experienced depression and 1 in 3 reported having anxiety, according to a 2020 study by Healthy Minds Network.
  • 25% of students who started college in 2020 did not enroll in any 4-year public school in 2021.

"For the first time in more than a decade, GradGuard has seen claims for medical withdrawals due to mental health conditions outpace those of physical health conditions," said Fees. "These program enhancements could not come at a more crucial time for college students and their families."

While the majority of institutions do not provide refunds for withdrawals beyond the first few weeks of class, GradGuard's robust tuition insurance programs can. GradGuard is the number one provider of Tuition and Renters Insurance programs in the nation and protects students at more than 1,200 colleges and universities. 

Terms, conditions, and exclusions (including for pre-existing conditions) apply. Plans only available to U.S. residents and may not be available in all jurisdictions. Recommended and provided by GradGuard, a service of Next Generation Insurance Group, LLC (NGI), the licensed agent for all insurance programs. Insurance plans include insurance benefits and assistance services. Pricing may vary by state. Insurance benefits are underwritten by Jefferson Insurance Company (NY, Administrative Office 9950 Mayland Drive, Richmond, VA 23233) rated “A+” (Superior) by A.M. Best Co.. A+ (Superior) is the 2nd highest of A.M. Best’s 13 Financial Strength Ratings. Non-insurance benefits/services are provided by AGA Service Company. Claims are administered by Allianz Global Assistance (AGA). Allianz Global Assistance and GradGuard Tuition Insurance are marks of AGA Service Company or its affiliates. AGA Service Company and NGI are affiliates of Jefferson Insurance Company. Plans include insurance benefits and assistance services. Except as expressly provided for under the plan, consumer is responsible for charges incurred from outside vendors. Contact AGA Service Company at 888-427-5045 or 9950 Mayland Dr., Richmond, VA 23233 or tuition@allianzassistance.com