Five Money-saving Tips for Students Heading to College
Protect your college investment, check tuition insurance off your to-do list
The start of fall semester is around the corner and first-year college students are looking forward to heading to campus. Amid the excitement there are some important financial to-dos that can easily be overshadowed by class schedules and move-in stress. To help students transition to campus life and ensure short and long-term economic success Allianz Global Assistance recommends the five following steps for students:
- 1. Identify a local bank that is easy to access and has plenty of charge-free ATMs nearby.
- 2. Budget for parking. Many campuses charge to leave your car on campus during class or overnight. Make sure you have quarters and cash available to avoid a more expensive parking ticket.
- 3. If using loans to finance your education, explore multiple financing options to find low interest rates and flexible repayment plans.
- 4. Password protect your electronics to help ensure any important information is kept safe while studying in common areas, such as a library.
- 5. Consider tuition insurance to prevent against losing thousands in case you have to take an unexpected leave of absence.
“A college career comes with newfound independence, and for many students this change comes with a new level of personal responsibility,” said Joe Mason, Chief Marketing Officer of Allianz Global Assistance USA. “While day-to-day money management strategies are important, it is just as critical to prevent larger financial losses. Increasingly, parents and students are choosing to protect their college savings with tuition insurance, just as they protect other large investments, such as their homes and cars.”
A recent survey of financial advisors conducted by an independent firm and commissioned by Allianz reports that nearly eight in 10 (78 percent) financial advisors say they would recommend tuition insurance for students taking out loans while more than seven in 10 (72 percent) say they would recommend it for first-year college students.
“Safeguarding your tuition investment is a smart financial decision. Even the best students can struggle with adjusting to the demands of a university, fall ill or need to leave school for another unforeseen reason,” Mason said.
In addition, the survey reports:
- More than six in 10 (65 percent) financial advisors would recommend tuition insurance for students or parents of a student entering graduate school (medical school, law school, etc.).
- More than six in 10 (65 percent) financial advisors would recommend tuition insurance for students or parents of students going back to school after taking time off and want to finish a degree.
- Nearly nine in ten (87 percent) say the leading cause of investment anxiety is college savings for clients with children under the age of 18.
- Among financial advisors who discuss college savings the most with clients, 60 percent say their clients are “extremely” or “very” stressed.
- Nearly six in 10 (58 percent) say clients are concerned about not earning enough to cover the costs associated with earning a college degree.
- Nearly half (49 percent) of financial consultants say they discuss college savings and investments the most with clients who have children under 18.
Allianz Tuition Insurance
Allianz Tuition Insurance* offers a range of plans to protect both in-state and out-of-state non-refundable college tuition in the event that a student withdraws from school for a covered illness, injury, psychological/mental disorder, or other reasons. One of the plans provides coverage for almost any unforeseen reason that may cause a student to leave school.
Allianz Tuition Insurance must be purchased prior to the first day of the semester and three different plans are available, starting at only $29.95 per term. The insurance also includes Allianz Global Assistance’s proprietary Student Life Assistance, a 24/7 service that assists families in the event of an emergency.
The survey was conducted online between July 11 and 17, 2016, and 201 Financial Consultants/Advisors who have clients with children under 18 nationwide participated (N=201). Online surveys do not technically have a margin of error since a probability sample is not used. That said, the margin of error of a survey of this type using a small sample calculation would be around +/- 5.7%. The margin of error for subgroups within the survey is higher.
Allianz Global Assistance is part of Allianz Worldwide Partners, a unit of Allianz SE, a 125-year-old leader in the financial services industry and one of the world’s largest financial services companies.
Allianz Global Assistance USA
Allianz Global Assistance USA (AGA Service Company) is a leading consumer specialty insurance and assistance company. We serve 21 million customers annually and are best known for our Allianz Travel Insurance plans. In addition to travel insurance, Allianz Global Assistance USA offers tuition insurance, event ticket protection, registration protection for endurance events and unique travel assistance services such as international medical assistance and concierge services. The company also serves as an outsource provider for in-bound call center services and claims administration for property and casualty insurers and credit card companies.
*Terms, conditions, reductions, and exclusions apply. Plans are available only to U.S. residents. Not all plans are available in all jurisdictions. For a complete description of the coverage and benefit limits offered under your plan, carefully review your declarations page and insurance policy. Insurance coverage is underwritten by Jefferson Insurance Company (NY, Administrative Office: Richmond, VA), rated “A+” (Superior) by A.M. Best Co., under Jefferson Form No. 107-P series. Allianz Global Assistance and Allianz Tuition Insurance are brands of AGA Service Company. AGA Service Company is the licensed producer and administrator of these plans and an affiliate of Jefferson Insurance Company. The insured shall not receive any special benefit or advantage because of the affiliation between AGA Service Company and Jefferson Insurance Company. Non-insurance benefits/products are provided and serviced by AGA Service Company.
Media Contact: Daniel Durazo