Delta variant sparks renewed interest in college tuition insurance

One year ago, rising cases of coronavirus put an abrupt halt to the fall semester on many college campuses, just as classes got underway.

This year, the delta variant is threatening to shut down schools once again. And the possibility of more campus closures has sparked renewed interest in college refund policies and tuition insurance.

Roughly 78% of colleges and universities plan to resume all in-person classes for the fall, and just 19% are planning a mix of in-person and online classes, according to a survey by the National Association for College Admission Counseling.

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Yet, already a few colleges and universities have announced they will start remotely due to rising cases of Covid, including the University of Texas at San Antonio and Stanislaus State in California.

“Due to the delta variant of Covid-19, and the need to reduce potential exposures on campus, we are temporarily delaying the start of in-person instruction and repopulation plans until Oct. 1,” Stanislaus President Ellen Junn said in a letter to the community.

For most students, distance learning is a poor substitute for in-person classes. And almost all say it’s not worth the same high cost. 

“Paying full price for a fraction of the college experience is bound to leave many people disgruntled,” said Jill Gonzalez, an analyst at personal-finance site WalletHub.

Nearly half of students think universities did not do enough to support them during the pandemic, a recent WalletHub report found.

Going forward, some families are being more proactive when it comes to protecting their investment.

Laura Hoder, 52, recently bought a tuition refund policy for her daughter, who will be a junior at Dean College in Franklin, Massachusetts. “There’s this unknown with what will happen with Covid,” she said.

Hoder, who works as a nurse in Fairfield, Connecticut, said she also wanted the additional coverage because of her job and her family’s increased risk. “There’s an extra level of anxiety just because of what I’ve seen and I know,” she said.

While a number of colleges and universities have said they will offer refunds of fees and room and board if campuses must close again, the reimbursement policies vary from school to school — and nearly all of them have drawn the line at tuition. 

Depending on when a student withdraws during a semester, a school’s refund policy may reimburse a significant amount (specifically if it’s within the first month or so of the semester, although it varies by school).

However, refunds are typically offered on a sliding scale and most schools won’t give any money back at all after the fifth week of classes.

Many schools now also offer third-party tuition…