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Prepare for student's departure
Your child is heading off to college, and you've devised a plan to pay the big bill. Now you need to address the inevitable discretionary costs that will occur during that nine-month period when your child is at college. This page offers suggestions on how to handle those often overlooked but unavoidable expenses. Health insurance
An estimated 75 - 90% of full-time students are covered under their parents' policies, and chances are that's the easiest and best solution for you as well. One major exception: if you belong to a closed-network HMO that doesn't provide non-emergency coverage in the school's area. Most other policies will cover children who are full-time students until they reach the age of 23. Many universities will automatically charge you for health insurance, so be sure to complete a waiver before classes begin if you're keeping your child on your policy. If you need to make a change, look into the college's plan but make sure it provides the coverage your student needs. Unusually low premiums may signal inadequate coverage. Read the fine print, especially the exclusions. Surprisingly, some school plans don't cover injuries sustained in intramural sports. If you need an individual plan, comparison shop at Insure.com or contact a large provider like Blue Cross and Blue Shield. Auto insurance
If your child will be attending a college at least 100 miles away from home and is not taking a car, you may get some relief from the high premiums you've been paying for insuring a young driver. In fact, some parents see rates go down by as much as 75 percent for the period the student is not at home. If your child is taking a car to college, your premium could go way up, depending on where the school is. Make sure you know how much this will cost before you agree to this. Also, be sure to notify your insurance company if your child does take the car to college. Failure to do so may jeopardize renewal. Property insurance
Most homeowner's policies fully cover personal possessions in dorm rooms, although some have a limit of 10% of the value of the policy. If your child lives off campus, you may well have to take out a renter's policy, typically between $100 and $300 a year. Special note : Because laptops are such popular theft targets, not all homeowner's policies cover them. If your policy doesn't cover your child's computer, you have two choices: a rider to your policy for $25 to $50 a year, or a new policy for $75 to $100. The reason for choosing the new policy? Making a claim for a lost computer could trigger a higher premium on your homeowner's policy. Books and supplies Computers Banking You might also consider a stored-value card, such as Visa Buxx, to dispense a monthly allowance. You can set up a regular deposit schedule or add money to the card as needed, either online or over the phone. Your student can use the card to get cash from an ATM or to charge purchases. You can track the transactions online and turn off any function you need to. Credit cards The best strategy is to help your child get a credit card while still at home. You can add your child to your account, which lets you monitor the spending. You also can try a prepaid, reloadable card with limits of $500 or $1,000. Phone service Automobiles Travel Additionally, you can check with Southwest Airlines and Midwest Airlines, both of which offer student fares but you need to ask when booking. Essentials |
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