The financial stability of a private school depends on receipt of contracted annual tuition from parents. An unexpected withdrawal or dismissal of a student during the school year represents a financial hardship for families and often puts the school in an uncomfortable position with respect to collecting unused fees.
Tuition Refund Insurance responds to these concerns. It provides benefits which reduce the financial consequences for both the school and the parents as well as helps the school to secure tuition income while avoiding the difficulties associated with collections.
Tuition Refund Insurance assists in the following ways:
- It provides benefits for nearly any type of withdrawal or dismissal including: Disciplinary Dismissal, Injury or Sickness, Family Move, Scholastic Difficulties, Financial Problems, Emotional Difficulties and others.
- Tuition Refunds Plans can be offered optionally to parents or the school may wish to implement a mandatory participation requirement for all students.
- Claim payments are issued to the school to reduce or eliminate outstanding balances.
- A professionally administered Tuition Refund Plan helps to reduce the appearance of any conflict of interest between the school and parent when resolving claims.
Contact your FCA adviser for more information about Tuition Refund Insurance.