COVID, Campus Parties, and Expulsion?

Will Tuition Insurance Provide a Refund If Your Son or Daughter Breaks the New Rules?
By Paul Tyler, Chief Marketing Officer, Nassau Financial Group

Campus administrators invested time, resources, and precious funding to protect their campuses from coronavirus this summer. Those with resources implemented frequent testing. Others have relied on new codes of conduct meant to significantly reduce the spread of COVID-19. Parties rise to the top of the list of prohibited events. Frequently, schools said they would expel offenders. Only a few short weeks into the academic calendar, a number of schools have demonstrated they will remove partiers from their campus – and not refund their tuition. Will tuition insurance provide financial relief for their parents?

Unfortunately, in most cases, tuition insurance will not provide protection in the event of expulsion. Generally, this coverage only provides financial relief when a student suffers from a medical condition that prevents completion of courses for the year. This means that two events must occur. First, your son or daughter must become seriously ill or injured. Second, the condition must be so severe that they cannot continue to study on campus. Of course, you should read the fine print of your coverage to understand your exact protection.

Has the coronavirus changed how carriers review claims and provide benefits? In short, some carriers have explicitly detailed how they will approach COVID-19 claims. Some have reemphasized the terms of the coverage. For instance, at least one has explained that cancelation of in-person classes and a move to distance learning will not trigger benefits. Another has explained that contracting COVID-19 will not automatically create a claim but has indicated that the carrier will consider exceptions.

What happens if a student breaks a college’s code of conduct and attends a party in violation of the rules? In many cases, schools have included terms in their enrollment agreement that gives them the right to expel your child and not refund tuition. If this is the case, tuition insurance will most likely not refund your money.

One lapse in judgment could create significant financial hardship for any family. The tuition at a private school last year averaged $36,801. Losing this much money could change the future for your child. Your best course of action this year should be first to make sure you and your student both understand the new code of conduct for the college or university. Second, make certain that your son or daughter understands the financial consequences for your family should they break the rules. You may be eligible for tuition reimbursement at their personal expense.

About The Author

Paul Tyler is Chief Marketing Officer for Nassau Financial Group, an insurance company based in Hartford, Conn. Nassau focuses on four business segments: insurance, reinsurance, distribution and asset management. Paul also oversees the company’s insurtech incubator, Nassay Re/Imagine, helping innovative startups. Paul earned a J.D. from Cornell Law School and an A.B. for Princeton University.