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GradGuard Review: Tuition Insurance
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Cecilia Clark Assistant Assigning Editor | Education financing products, Veteran's benefits, Student and graduate finances
Cecilia Clark is an editor on the loans team. She specializes in student loans and manages product reviews and roundups. Previously, she worked as a freelance writer and developed communications strategies for cybersecurity firms. Cecilia has also worked in post-secondary education, elevator operations management and sales and military nuclear command control, maintenance management and public affairs.
Des Toups Lead Assigning Editor | Student loans, repaying college debt, paying for college
Des Toups was a lead assigning editor who supported the student loans and auto loans teams. He had decades of experience in personal finance journalism, exploring everything from car insurance to bankruptcy to couponing to side hustles.
The bottom line: GradGuard provides tuition insurance for students across the country. It's best for students who are interested in COVID-19 coverage.
Product
Tuition insurance
Eligibility
Students who haven’t started the first day of class at a four-year, nonprofit college in the United States
Cost
Typically .5% to 2% of the coverage amount depending on the school
Covered conditions
Serious illness or injury, chronic illness, mental health conditions, pre-existing conditions, COVID-19
Covered costs
Unrefunded money for tuition, room and board, fees
Coverage limits
$2,500 - $40,000 per term
Pros & Cons
PROS
Provides coverage for withdrawals due to a student getting COVID-19.
Provides coverage for pre-existing conditions.*
Coverage includes 24-hour Student Life Assistance hotline to help arrange emergency travel and medical escorts.
Up to $1,000 in coverage for textbooks, supplies and lab fees
*GradGuard may cover pre-existing conditions so long as the student wasn’t experiencing symptoms when the policy was purchased or a doctor recorded that they were fit to begin class.
CONS
Does not provide coverage if a student needs to withdraw for family illness and may not cover all sports-related injuries.
Doesn’t cover non-health-related reasons for withdrawal, like suspension, parent job loss or school closure.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.59-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Variable APR
5.34-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.49-15.49%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 10/25/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Variable APR
5.04-15.21%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 10/25/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
Full Review
GradGuard was created in 2008 and provides renters insurance and tuition insurance for college students. It provides extra protection to students who are attending schools with rigid or unclear medical withdrawal and refund policies.
Tuition insurance is worth it only if your school’s policies don’t provide the level of protection you want and the insurance coverage adequately fills the gaps.
Unlike some tuition insurance providers, GradGuard provides coverage for students at schools in every state and isn’t exclusive to private or Ivy League institutions. While you will likely purchase insurance for the full cost of your education, GradGuard will cover the nonrefunded portion of costs for tuition, room and board, and fees.
For example, let’s say you get sick in the third week of school and have to withdraw. Your school grants you a 60% refund on your $30,000 tuition and room and board costs. GradGuard will reimburse you for the remaining $12,000 of your expenses.
GradGuard is one of the few tuition insurance companies currently providing coverage for COVID-19 and monkeypox. This may change in the future, so make sure to check its most up-to-date policy information before purchasing.
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If your school is a GradGuard partner, you can typically purchase tuition insurance as part of your tuition payment process. If your school is not a partner, you may be able to buy a policy directly with GradGuard. In this case, apply at its website or call 888-427-5045. You can buy a policy up to the day before class starts.
GradGuard doesn’t require a medical exam to get coverage, but those with pre-existing conditions should get a doctor’s note clearing them to start school. This can help support a claim if you need to make one.
If you need to file a claim, call 800-719-5915 to get it started. Allianz manages the claims process for GradGuard tuition insurance. It will send you a claim form that requests information regarding your medical withdrawal date. You will need to get verification from your school to support your claim and get proof of your payments to the school. After you send that information and the claim back to Allianz, it will verify the medical condition and withdrawal recommendation with your doctor. Claims are typically processed within a week.
Current GradGuard policies come through Allianz Global Assistance, while older policies may have been under Liberty Mutual.
GradGuard details
Costs
Typically .5% - 2% of the coverage amount depending on your school. For example, if your policy covers $30,000 of school expenses, you can expect to pay between $150 and $600.
Deductible
None
Medical exam
Not required, but students with pre-existing conditions should get a doctor’s note explaining they are fit to start school. This can be used to support an insurance claim if necessary.
Eligibility
Students who haven’t started the first day of class at a four-year, nonprofit college in the United States.
Coverage
Policies typically cover serious illness or injury, chronic illness, mental health conditions and pre-existing conditions*. Plans purchased on or after February 18, 2022, include epidemic coverage endorsements to provide coverage to students that withdraw due to becoming ill with epidemic or pandemic diseases like COVID-19. Check the details of your policy for exemptions and guidelines.
*GradGuard may cover pre-existing conditions so long as the student wasn’t experiencing symptoms when they purchased the policy or their doctor recorded that they were fit to begin class.
