PROTECTING YOUR INVESTMENT Joe Creney Laura Dickerson

Agenda The expanding role of Insurance and Student Benefits in today’s Higher Education environment Review recent research regarding the types of risks parents and students are concerned about Understand how medical issues can impact college completion Provide examples of Insurance and Student Benefits programs and how they help schools and their families

The expanding role of Insurance Insurance? You need to talk to our Risk Management office… Insurance? You need to talk to our Risk Management office… In today’s challenging environment, the insurance conversation is increasingly moving outside of the Risk Management Office. Insurance and other Student Benefit programs can help you: Attract new students Retain your existing students Provide a better experience for you and your families

Failing to graduate is costly to families and institutions

Parent concerns Q: For each of the following factors, please rank on a scale of 1-5 how concerned you are (or were when your child first began college or first lived away from home) that the factor will negatively affect your child’s ability to be successful in college. 1= not at all concerned and 5=extremely concerned. N=620 A recent survey of parents confirmed that parents worry about a lot of things when sending their children away to college! % that responded ‘Concerned’ or ‘Extremely Concerned’

For students, illness is the primary risk-related concern In a 2011 study, students overwhelmingly recognized that illness is a real risk to being able to complete college 4. Pleskac, T.J., Fandre, J.*, Merritt, S., Schmitt, N., & Oswald, F. (2011). A detection model of college withdrawal. Organizational Behavior & Human Decision Processes, 115, 85-98

7 Understanding How Medical Issues Can Impact College Completion

How often do medical withdrawals occur? A recent survey of bursars and risk managers estimated that about 1% of students are forced to officially withdrawal each year for medical reasons. Total responses = 138 Source: Survey of 138 bursars and risk managers completed by Next Generation Insurance in March 2015

Medical issues have a greater impact beyond reported withdrawals Using data from the American College Health Association National College Health Assessment, it is likely that many more students are impacted by medical issues that may indirectly lead to them being unable to complete classes

What happens when a student has to withdraw? Withdrawal refund policies are highly variable by school. While some policies stipulate pro-rated refunds, others offer set amounts, and some offer no refund at all Most schools refund less than 50% of tuition and fees after the 5 th week of classes Almost half provide no refund after the 5 th week, with no formal appeals process If a school does provide a refund, it is generally limited to Tuition and Fees. Families often have no way to recoup the cost of lost room and board, books, travel, etc. that make up the full cost of attendance Based on school survey conducted by the College Parents of America

Disclosing the refund policy Most school administrators agree that it is a good idea to make their families aware of the school’s refund policies 83% agree it is prudent to provide notice to each student 62% agree it is a requirement to provide notice to each student Source: Survey of 138 bursars and risk managers completed by Next Generation Insurance in March 2015

Despite the best intentions, families still don’t understand the risk Less than one-third of parents recalled being told about the school’s refund policy Q: Was the medical withdrawal refund policy disclosed to you by the school? Q: How would your school handle a medical withdrawal? Almost two-thirds of parents have no idea how their school would handle a medical withdrawal Our research indicates most families don’t recall being told about the school’s refund policy and have little idea how their school would handle a medical withdrawal Sallie Mae Insurance Services, June 2013 Report on Parent Survey of Risk and Concerns.

Refund appeals create angst and can be a burden for the institution Most schools surveyed feel that it is a bad experience for families to learn about the refund policy after the medical issue occurs. Almost half of school administrators surveyed felt that the appeals process was a burden for the institution Source: Survey of 138 bursars and risk managers completed by Next Generation Insurance in March 2015

14 Examples of Insurance and Student Benefit Programs

Tuition Insurance reimburses tuition and other related expenses if a student is unable to complete classes due to a medical reason. Typical plans cover:  Reimbursement for medical withdrawals due to accident, sickness, or mental health condition  Reimbursement for withdrawals due to death of student or tuition payer  Generally costs around $200 to $500 per year depending on the level of coverage  Providers include GradGuard and A.W.G. Dewar Tuition Insurance The benefits of offering Tuition Insurance to your families includes:  Enables families to protect their education investment  Provides greater clarity to the school’s refund policy  Reduces administrative burden of managing a refund appeals process

Student Benefit Bundles Tuition Protections$5,000 of Tuition Refund Insurance $25,000 Accidental Death Coverage Provides student with a lump sum payment should their parent, or primary tuition payer, die accidentally helping the student complete their education. Security & Well Being Benefits Cell Phone Protection Covers damage to or theft of eligible cellular wireless telephones Identity Theft Protection and Resolution Services Reimburses up to $2,500 of covered expenses incurred to restore identity. 24-Hour Roadside Assistance Savings BenefitsBaZing - Merchant Savings Network (National, regional and local merchant discounts) GradGuard’s Student Protection Plan is an example of a bundle of benefits designed specifically for college students. At a annual cost of $199, it is designed as a unique way for institutions to differentiate themselves from their peers. NOTE: Benefit descriptions for illustrative purposes only. Refer to GradGuard for full program description.

Renters Insurance Personal Property Protection Replaces stolen or damaged personal property, including laptops, cell phones, bikes and more Covers property when not on campus including travelling abroad, spring break, or back at home) Full Replacement Cost with low deductibles (e.g., $ deductible) Personal Liability Protection Protects student financially for unintentional property damage or bodily injury to others Shifts financial burden of uncollected receivables for damage to residence halls from the school to the insurance carrier + Solving a Need for Families “If your child’s laptop is stolen, we will replace it for $100 and the coverage only costs $140 for the school year!” Solving a Need for the School “If a student causes a sprinkler head to go off, the insurance will cover the damage so you don’t have to go after the parents!” Sample Cost On campus student living in residence hall ~$ per year Off campus student living in an apartment ~$ per year Many companies offer renters insurance for college students. The most comprehensive plans will typically include two primary types of coverage:

Consider an insurance and student benefits program for your school Room Safe ~$140 Linens ~$159 Microfridge ~$189 Laundry Service ~$199 Bike Share Programs Insurance companies can help make schools aware of the different risks families face and the options to help them protect their education investment. These programs can provide: Is it time for your school to move beyond the traditional student services and offer an enhanced Student Benefits program that provides real financial value? Valuable protections for your students Peace of mind for your parents Reduced administrative burden for your school Tuition Insurance Student Benefit Bundles Renters Insurance ~$200 per year

THANK YOU Joseph E. Creney GradGuard

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