College Bound: Must-Have Talks Before the Big Drop-Off

For the past year, I have been living vicariously through my daughter as we have toured 11 college campuses. Big vs. Small. SEC vs. non-SEC (that’s how we categorize down here in the South). Private vs. Public. My eyes were as big as hers as we searched high and low for a great landing spot. 

Plenty of emotions have come over me as sending a child off to college is a major milestone for any family, whether you’re a parent, guardian, grandparent, or friend. It’s an exciting time, filled with anticipation and perhaps a bit of trepidation. I have found myself happy at times as her launch into life begins. Other times, the emotion of the moment takes over. There’s so much to do, and time seems to fly by.

In an effort to distract myself from the mix of emotions and all the prep work needed for our girl’s big send-off, I tend to go into task mode. While staying busy helps, it’s important to take a step back and address both the emotional and practical aspects of this transition. So, here are several practical things that may not be on your radar but worth considering before you pack the car:

1. Establish Power of Attorney and other legal authorizations.

When freshmen go to college, they may have already turned 18, making them legal adults. Having that birthday has healthcare, financial, and even academic implications. You may be surprised to learn that after a child turns 18, a parent can no longer speak with their doctor or access their school grades without express permission.

• Healthcare 

Should you need to step in for your child in case of a health emergency, establishing a power of attorney (POA) for healthcare before they head off to school may give you the legal ability to do so.1

Having a healthcare POA, also known as a healthcare proxy, allows you to make healthcare decisions on behalf of an adult child who may be physically or mentally unable to decide independently.¹ This kind of legal document may seem extreme, but the unforeseen can happen, and it is always better to be prepared.

If you don’t want to go so far as a healthcare POA, a universal Health Insurance Portability and Accountability Act (HIPAA) release form can help you get medical information about your child. It can even specify if the holder does not want certain information shared.2

• Finances

On the financial side, once a child turns 18, a parent’s oversight of their finances is more limited. That’s where a financial POA can help.

Like a healthcare proxy, a financial POA allows you to make financial decisions for your child and access their financial records and accounts. With this document, you can help your child manage their money, pay student loan bills, and cover car payments. Having this authority, you could step in if your child needs guidance with financial decisions.1

There are different kinds of financial powers of attorney, and laws vary by state, so you should consult your attorney about what works best for your situation. Some durable powers of attorney take effect only in cases in which the child is considered disabled due to mental illness, physical incapacity, or chronic drug use, and others take effect immediately upon signing.2

• Academics

This may come as a shock, but as far as academics, parents no longer have direct access to their children’s educational records after they turn 18, even though they may be paying the bill! Crazy, right?

The Family Educational Rights and Privacy Act (FERPA) requires that students over 18 give written consent before their school releases any educational records, including GPA, credits, scholarship status, disciplinary action, tuition information, and records maintained by the campus health clinic. A FERPA authorization will allow you access to these records.2

Be sure to confirm with your child’s school whether there are any additional authorization forms you need to complete to allow you access to your child’s records on campus.

2. Discuss budgeting and financial wellness.

For many children, going away to college is the first time they will be responsible for their own finances. Now might be a good time for a conversation about budgeting and handling money, even if only a brief refresher. Just because your child may have always been responsible with money in the past, their financial world can look very different from a dorm room. You don’t want to wait until there is an issue, so consider preparing them before the start of their school year.

For real-life examples, you could show your child how you manage the family budget. You may also want to set them up with an online tool that allows them to track their spending and categorize where their money goes each month.1 EveryDollar, RocketMoney, and YNAB are a few examples of easy-to-use budgeting apps.

3. Consider your insurance choices.

When children move out of the house for the first time and possibly live in a different state, it’s time to reevaluate their insurance coverage.  

• Health Insurance³

Many colleges and universities require students to have health insurance. Good news (depending on how you look at it)! Dependents under age 26 can remain on your health insurance plan. A school health insurance program may make sense if your health plan has a provider network where the student attends school. But if your child goes to school outside your provider network, check your coverage since not all insurance plans include out-of-state healthcare providers and pharmacies. Make sure to compare the premiums and scope of coverage with any health plan you already have to determine the best choice.

Be aware: some schools automatically enroll students in their health plans unless they or their parents opt out by signing a waiver showing existing coverage. Remind your child to be on the lookout for any emails or notifications regarding student health insurance and to forward them to you so you can confirm that the necessary forms are in order.

• Car Insurance³

If your child is taking a car to school, let your car insurance company know. Your rate might change depending on where the vehicle will be.

If they are not taking a car with them, you might be eligible for a “student away at school” car insurance rate if your child is at least 100 miles away from home.

• Renters Insurance³

A homeowners’ insurance policy typically covers your child’s possessions if they live in campus housing, such as a dorm, but that may not be the case if they live off-campus. If your child rents an apartment or house, consider renters’ insurance.

Renters’ insurance typically covers possessions from theft, fire, vandalism, and other types of damage. Renters’ policies often provide liability coverage to also cover legal bills if your child is responsible for accidental injuries to someone or damage to someone else’s property.

Some schools may require insurance for on-campus housing, so if you are already covered, fill out the waiver so you aren’t charged for something you don’t need. 

Prepped for success!

Friends, I know this list can be daunting.  However, I’m learning this is the easy part. Get these things done but don’t forget to feel.  You have parented well and now it’s time for their next steps.  They may be away but they’re always close.