Quoted In: Drop-Out Insurance (Inside Higher Ed)

“People complain about car insurance, worry about health insurance and debate the need for life insurance, but there isn’t much talk about tuition insurance,” Inside Higher Ed reports. “Companies are now trying to move in to reach a larger market of tuition payers … But some financial aid experts question the need for tuition insurance, and even those who sell it acknowledge that not every tuition payer is going to feel the need to buy a policy … Students from low-income backgrounds could benefit from the policies, but because they are so poor they’re unlikely to take the policies out to begin with, says Justin Draeger, vice president of public policy, advocacy and research at the National Association of Student Financial Aid Administrators. Both Kantrowitz and Draeger note that because colleges publish refund policies and have appeals policies, it makes sense for families to figure out whether they’re actually taking a big risk by not buying the insurance. “A little bit of homework up front about the college’s rules can make it clear that the insurance isn’t necessary,” Draeger says, adding that in most instances he thinks it isn’t.“You can read the complete Feb. 24, 2010 Inside Higher Ed article on-line.