Sending your child off to college is an exciting time, yet it can also be filled with anxiety. While your college-bound young adult is most likely excited to become independent, you may be worrying about their safety, well-being, and ability to create their own structure. In order to provide them with the protections they need – and to supplement your own peace of mind – it’s important to get essential college student financial and medical documents in place before they leave home. This makes it an important time to take some measures for any worst-case scenarios. The four documents we discuss in this article may not be all your college student needs, as every family’s circumstances are unique, but they’re a good place to start. Read on to learn more.
College Student Financial and Medical Documents: Why They Matter
In the eyes of the law, your child becomes an adult at the age of 18. That means, as parents, we lose some of our rights once they come of age. When we have spent these last 18 years acting as their protector and nurturing their hopes and dreams while helping them learn to make good decisions, it can be downright hard to think of letting go. While we hope we are sending our kids into the world with the right tools to become a responsible adults, the fact that we lose our legal rights as parents can pose a challenge in the case of an emergency (during college or otherwise).
If a medical emergency arises, the Health Insurance Portability and Accountability Act (HIPPA), can prohibit you from having access to your child’s medical information. This law disallows medical providers from sharing information that is not explicitly authorized by the patient. In the event of an emergency, there are a few limited exceptions where doctors can use their discretion, but without an existing relationship with the patient or their family, they may be reluctant to do so.
While the likelihood of your child experiencing a medical emergency at college is slim, being prepared can prove important (and give you some peace of mind). Without specific college student financial and medical documents, HIPPA regulations will impede you from gaining access to their medical information, and you won’t have the ability to make any medical decisions for them. Even if the medical providers want to help you, HIPPA prevents them from being able to do so.
Prepare These College Student Financial and Medical Documents as You Get Ready to Send Your Child to College
There are documents that you can enact to ensure your ability to gain access to information about your adult child’s health or finances in the case of an emergency, in college or otherwise. Here’s where to start:
Medical or Health Care Power of Attorney (POA)
A Medical Power of Attorney (POA), often called a healthcare proxy is a document that is smart for anyone to have. It authorizes a person of your choice to make medical decisions on your behalf in the event you are unable to make decisions for yourself. As the parent of an adult child who you are sending off to college, this becomes even more important. Having your child execute this document to name you as their ‘agent’ will allow you to make medical decisions on their behalf if they can’t do so. The American Bar Association has a very helpful Healthcare Advanced Planning Toolkit that includes the POA form. Your estate planning attorney can also prepare one for you. However, be sure to look into the laws that govern medical POA’s as they can vary from state to state. Your child’s college may also have these forms available.
HIPPA Authorization
While Medical POA forms often include HIPPA authorization, some may not. Be sure to check on this as it’s crucial to have a HIPPA authorization form before your child goes to college. This legal document allows healthcare providers to give you information about your adult child’s health. Be aware that these authorizations can include privacy protection for your child as well. There may be circumstances about their private lives such as sexual activity, drug use, or mental health that they have within their rights to keep confidential. In any event, the authorization form will provide you with disclosure rights in an emergency if your child decides that you should be aware of that information.
Durable Power of Attorney (POA)
If your child is incapacitated, a Durable Power of Attorney gives you the authority as a parent to act as your child’s “attorney-in-fact” or ‘agent.’ With this, you can legally manage a variety of business dealings on your child’s behalf. Among these authorizations are accessing bank accounts and entering into legal contracts. These are important considerations if you find you need to manage any financial activity, such as paying your child’s bills on their behalf during their incapacitation.
FERPA Release
The Family Educational Rights and Privacy Act of 1974, also known as FERPA, protects the privacy of a student’s educational records. As a parent, you are prohibited from accessing your child’s grades or transcripts. However, your child can choose to allow you access to the college and can disclose educational records to you without their consent.
Why does this matter? If your child’s medical condition is impacting their educational performance or their ability to attend classes, this document can be helpful for communicating with the college on your child’s behalf. It may also be helpful if you’re paying their tuition and you want to know how they are performing in school.
Financial Literacy: Another Step in Helping Prepare Your Child for College
While these college student financial and medical documents are important, there are other ways to better prepare your child for the college experience, too. If they don’t have much personal finance experience, managing their finances on their own can pose challenges. Helping your child enhance their financial literacy will help them navigate the real world of paychecks, budgets, and more. The National Credit Union Administration has resources that can help your child learn about how to make smart financial decisions.
Preparing for Life’s Transitions with a Trusted Financial Advisor
Sending a child to college is a significant life transition – both for them and for you! As with many life transitions, it’s important to consider the financial implications and opportunities they bring. If you don’t yet have a trusted financial advisor to help you navigate new phases of your financial life, there’s no time like the present. Contact the team at Principal Preservation Services today to learn more about our comprehensive financial planning services. We look forward to hearing from you!
