The partnership, finalised on December 4, provides a financial safeguard for students who withdraw from university for covered reasons and aims to improve transparency and the financial literacy of students and families.
“The integration of GradGuard’s tuition insurance with Flywire’s dynamic billing process helps provide confidence to students and families that they can achieve their academic dreams, regardless of the headwinds they face,” said John Fees, co-founder and CEO of GradGuard.
GradGuard offers customisable tuition insurance amounts based on the individual or family’s needs – whether it’s $10,000 or up to $40,000 worth of coverage per term, according to Sharon Butler, EVP of global education at Flywire.
Tuition and renters’ insurance protection plans are available for all students at GradGuard’s 600 partner institutions across the US, with no extra cost to the institution.
With the integration of GradGuard’s protection plans directly into Flywire’s payment platform, the process will be streamlined for institutions, giving students the option to purchase tuition directly through the checkout experience.
“To be reimbursed the cost of tuition, housing, and fees up to 100% of the coverage amount, a covered student must completely withdraw from the school (not just drop a class or two) at the recommendation of a licensed medical professional or for another covered reason,” clarified Butler.
Paying for higher education is one of the most substantial investments students and families can make, and it’s critical that those investments are protected
Sharon Butler, Flywire
The partnership will also create greater transparency around universities’ withdrawal policies, providing families with the resources they need to consider protecting their investment in their education.
“We work closely with and listen to the needs of our partner institutions to find ways to better serve them and the students and families they support,” said Butler, adding that there had been “great demand” for the services.
Unforeseen illnesses, injuries and mental health concerns were cited by the companies as leading factors contributing to students considering dropping out of their degree or credential program.
In 2024, college dropout rates averaged nearly 33% for undergraduate students in the US, with 51% of those who left citing financial concerns, according to a recent report.
“Paying for higher education is one of the most substantial investments students and families can make, and it’s critical that those investments are protected.
“The integration Flywire is offering with GradGuard is an important step for both institutions and students, and we’re thrilled to partner with them to drive greater student success,” said Butler.
The announcement comes hot on the heels of Flywire’s partnership with Vietnamese International Bank in November 2024.
