On average, it costs more than $27,000 a year for a public school and more than $55,000 for a private university. This may leave some families wondering if there is a way to protect their money in an emergency.
It is an investment that can cost up to hundreds of thousands of dollars. But what if something goes wrong? Consumer Reports says there are two ways to protect some of that investment: tuition insurance and dorm insurance.
If a student experiences a major health condition and must drop out mid-semester, tuition insurance would reimburse families for the portion of the semester the student did not receive.
This is in addition to what the student’s university may reimburse families.
After checking a college’s reimbursement policy, Consumer Reports says to check the terms of coverage to see what specific terms are covered and what is needed. But generally, families must send medical records, such as a doctor’s letter, to the insurance company.
There is also dorm insurance. Coverage is usually affordable, and that’s something families might want to consider with all the expensive things college students have these days. Dormitory insurance covers everything students may take with them to college. If something happens, it’s a way to get reimbursed for loss or damage.
Although families may have some coverage for their children through a homeowner’s insurance policy, Consumer Reports says that dorm insurance or even renter’s insurance could be a cheaper option.
When it comes to saving money while someone’s in college, Consumer Reports recommends parents cut back on car insurance if a student doesn’t have a car with them to school. .
Also, be sure to take advantage of the tax benefits offered to parents of dependent students.