- Tuition reimbursement can help make college more affordable by reducing out-of-pocket education costs and responsibilities.
- Many companies offer tuition reimbursement regardless of your position or title.
For some, the thought of furthering their education can be daunting given the high cost of tuition. Additionally, accumulating student loan debt may leave many struggling to pay down their bills long after they’ve completed their degree. However, enrolling in a tuition reimbursement program can help shelter some of the costs of your degree, while also ensuring you have a job for years to come.
In fact, statistics show that tuition reimbursement programs account for more than $160 billion in education costs annually with healthcare, manufacturing, real estate, finance, and insurance industries spending the most.
However, the numbers also show that only about 10% of employees are actually taking advantage of this benefit. This means many people are left footing the bill themselves; or worse, putting off college altogether due to the expansive costs, which are only increasing as we speak.
Table of Contents
- Rising Cost of College Tuition
- What is Tuition Reimbursement and How Does It Work?
- What is Employee Assistance?
- Why You Should Take Advantage of Tuition Benefits
- Is Tuition Reimbursement Taxable?
- How to Tap Into Your Company’s Tuition Benefits
- Success Stories and Testimonials
- Jobs With Tuition Reimbursement
Rising Cost of College Tuition
In 2020, student debt levels topped more than 1 trillion. This doesn’t include the cost of books, supplies, and other college-related expenses, which are up more than 30% from 1990 to 1991.
And these tuition costs are expected to rise to adjust for inflation, as well as cuts in state spending, putting college further out of reach for many; thus making enrolling in a tuition reimbursement program a worthwhile investment.
What is Tuition Reimbursement and How Does It Work?
Tuition reimbursement is when your employer helps pay your tuition for your degree, or they may simply help pay the cost of your continuing education courses. It may also be used to supplement other sources of aid such as federal financial aid or private student loans.
Many employers offer tuition assistance as an added perk for working at their company. Like many other employee benefits, it’s also usually offered in addition to your regular pay. Employers are also afforded the added benefit of being able to deduct up to $5,250 per employee annually on their taxes for tuition assistance.
However, each company also requires their employees to meet certain guidelines to take advantage of this tuition benefit; therefore, it’s important to learn your company’s specific program requirements to ensure you qualify and take advantage of the tuition help.
To receive your tuition money, your company may pay for your classes upfront or once the course or degree is completed. If the latter, you submit the information to your employer and they will reimburse all or some of the funds.
If your company doesn’t offer tuition reimbursement, you may be able to submit a proposal outlining why it’s important. You might say that continuing education will benefit both you and your company to help get them on board. It’s also a great benefit to offer to attract new employees. Companies can offer this as a benefit to attract and retain top talent. It provides employees with the opportunity to develop new skills, which can lead to increased productivity and greater satisfaction in their job.
Eligibility Criteria
Each employer may have specific eligibility criteria for its tuition reimbursement program. Common requirements include:
- Length of employment: Employers may require a certain period of employment before an employee becomes eligible for tuition reimbursement.
- Grade or performance requirements: Some employers require employees to maintain a minimum grade or performance level to receive reimbursement.
- Employment commitment: Employers may require employees to commit to working for the organization for a specified period after completing their education.
It’s essential to review your employer’s tuition reimbursement policy to understand the eligibility criteria and any other requirements.
Types of Programs and Courses Covered
Tuition reimbursement programs vary in the types of education and courses they cover. Some employers may cover only specific programs, while others offer more flexibility. Generally, tuition reimbursement programs cover:
- Undergraduate and graduate degrees
- Certificates and professional designations
- Continuing education courses and workshops
Employers typically require the courses or programs to be relevant to the employee’s current role or potential career advancement within the organization. Be sure to check with your employer to understand the scope of their tuition reimbursement program and any limitations or restrictions.
What is Employee Assistance?
Employee Assistance Programs (EAPs) are employer-sponsored programs designed to support employees in managing their personal and professional lives. EAPs provide a range of services, from counseling and mental health support to financial and legal assistance, aimed at helping employees navigate various challenges that may arise.
There are numerous benefits to EAPs for both employees and employers. Employees gain access to valuable resources and support, which can improve their overall well-being and work-life balance. This, in turn, can lead to increased job satisfaction, productivity, and engagement.
Employers also benefit from offering EAPs, as these programs can contribute to a healthier, more resilient workforce. EAPs can help reduce absenteeism, improve employee retention, and create a more supportive work environment, ultimately enhancing the organization’s overall performance.
Eligibility Criteria for Employee Assistance
EAPs are typically available to all employees as part of their benefits package. Some employers may extend EAP services to immediate family members or dependents of employees. It’s essential to review your employer’s EAP policy to understand the eligibility criteria and any other requirements.
Types of Programs and Services Offered
Employee Assistance Programs can offer a wide range of services, which may include:
- Counseling and mental health support: EAPs may provide access to licensed counselors and therapists to help employees manage stress, anxiety, depression, or other mental health concerns.
- Financial and legal assistance: EAPs may offer resources and guidance on financial planning, debt management, legal matters, and other related issues.
- Work-life balance support: EAPs may provide services such as childcare referrals, elder care support, or assistance with personal or family concerns.
- Professional development and career counseling: EAPs may offer career coaching, resume reviews, interview preparation, and other professional development resources.
Keep in mind that the specific services and programs offered by an EAP may vary depending on the employer and the EAP provider. Be sure to explore the resources available through your employer’s EAP to take full advantage of the support offered.
Why You Should Take Advantage of Tuition Benefits
When you consider the high costs of continuing education, tuition reimbursement provides a practical way to help you avoid student loans and get your degree. Furthermore, research shows that the rate of employment for the 25 to 34 age group with at least a bachelor’s degree is higher than that of the same age group without a college degree, making earning your college degree more important than ever for securing employment. Research also shows that there is a huge pay gap between employees with at least a four-year degree and employees with no degree at all, which is important for being able to afford the cost of living.
It’s also fairly easy to enroll in your company’s tuition reimbursement program, provided you meet the requirements. So you should take advantage of this benefit while you can.
Is Tuition Reimbursement Taxable?
Whether tuition reimbursement is taxable depends on the type of tuition reimbursement that is provided. Typically, when an employer reimburses an employee for certain educational expenses, it is considered to be a taxable benefit. However, when employers offer education assistance programs in which they pay all or some of their employees’ educational costs directly to the educational institution, such payments are not considered taxable income. In other cases, tuition reimbursement may be tax-deductible if the employee meets certain criteria and has kept receipts of payment for any qualified job-related education expenses. Ultimately, it is always best to consult with a tax professional for more accurate answers about how tuition reimbursement programs might be taxed.
Reporting Requirements
Both employees and employers may have reporting requirements related to tuition reimbursement and employee assistance programs. Employees should keep accurate records of the financial assistance received and report it on their annual tax return if required. Employers should also maintain records of the benefits provided and report them as necessary on their business tax returns or employee W-2 forms.
Understanding and meeting the reporting requirements for tuition reimbursement and employee assistance programs can help ensure compliance with tax laws and avoid potential penalties or complications.
How to Tap Into Your Company’s Tuition Benefits
When it comes to how to use tuition reimbursement, the requirements vary by company. As part of their requirements, some companies may only pay for courses or degrees in certain fields. For instance, if you’re an employee at a bank, your company may only provide tuition assistance for degrees or courses related to banking, such as Accounting or Finance. In this case, since the company is investing in the employee, it makes sense to the employer that the area of study relates to the industry, job, or company. However, other companies will reimburse employees for any degree or educational courses that enable them to upskill and grow professionally.
Some tuition reimbursement programs also require that students maintain an A or B average for the highest reimbursement. For instance, students with an A average may be rewarded 100% reimbursement, while students with a B average may only be rewarded 80% reimbursement. That is, there may be a sliding scale. However, most employees require students to maintain at least a C average to qualify for any reimbursement.
As part of the employer’s tuition help, students may also be required to remain employed with the company following the reimbursement. Typically, the amount of time required is around 2 years. If within this time, you cease working for the company, you will be responsible for paying your own tuition.
Success Stories and Testimonials
Examples of Individuals Who Have Successfully Utilized Tuition Reimbursement and Employee Assistance Programs
Many individuals have benefitted from tuition reimbursement and employee assistance programs, enabling them to pursue their educational goals while managing work and personal commitments. Here are a few examples:
- Jane, a marketing manager, utilized her employer’s tuition reimbursement program to complete a graduate degree in marketing, which helped her secure a promotion within the company.
- Michael, an engineer, accessed his employer’s employee assistance program for mental health support during a challenging period in his life, allowing him to maintain his job performance and find a healthier work-life balance.
- Laura, a customer service representative, received tuition reimbursement for a professional certification course, which led to increased job responsibilities and a higher salary.
These examples demonstrate the potential benefits of tuition reimbursement and employee assistance programs in supporting education, career growth, and personal well-being.
Lessons Learned and Advice for Others
From the success stories of individuals who have utilized tuition reimbursement and employee assistance programs, we can glean some valuable lessons and advice:
- Be proactive: Research and apply for available programs early to ensure you receive the support and benefits you need.
- Communicate openly: Keep your employer informed of your educational goals and how they align with your career aspirations within the organization.
- Stay organized and focused: Maintain accurate records, adhere to deadlines, and stay committed to your goals, even when challenges arise.
- Utilize available resources: Take advantage of the support and resources provided by your employer, school, or community to maximize your success.
By following this advice and learning from the experiences of others, you can make the most of tuition reimbursement and employee assistance programs to enhance your education, career, and personal life.
Jobs With Tuition Reimbursement
Many top companies throughout the US offer tuition reimbursement, even if you are not a full-time employee. In fact, many employees at these companies started as part-time workers before going on to become managers and executives after obtaining their degrees through tuition reimbursement.
So if you’re looking for a job with tuition reimbursement, the following notable US companies offer tuition reimbursement programs:
Walmart Tuition Reimbursement
Walmart is a US-based corporation that operates a chain of multinational retail stores, including discount department stores, grocery stores, and hypermarkets, including Sam’s Club.
As an employee of Walmart or Sam’s Club, you can choose from over 100 different degree and job training programs to further your education. This includes diplomas, professional certificates, and college degrees from top-ranked, accredited universities. You can also take up a skilled trade, such as construction, plumbing, and HVAC.
To qualify, employees must be a resident of the U.S. or Puerto Rico and work at least part-time at Walmart or Sam’s Club. Their tuition reimbursement benefits also begin as soon as the first day of employment with the company.
UPS Tuition Reimbursement
UPS is one of the largest US-based multinational supply chain and package delivery companies. They offer tuition reimbursement at more than 100 locations nationwide. There are no restrictions on your course of study.
Employees can receive book reimbursement, housing benefits, academic bonuses, and more, depending on the location. However, benefits are capped at $5,250 in assistance per year with a lifetime maximum of $25,000. Employees can also benefit from the start of employment.
Bank of America
Bank of America is one of the world’s leading, US-based investment banks and financial services holding companies. They specialize in investment banking and trading and wealth management for individuals, corporations, governments, and institutions.
Employees of this company have access to tuition reimbursement up to $5,250 of tuition-related costs per year; however, you must be at least a part-time employee and have been employed with the company for at least 6 months to qualify.
Amazon Tuition Reimbursement
Amazon is a multinational technology company whose operations consist of cloud computing, digital streaming, e-commerce, AI, and more.
As a perk for being an employee of their company, they offer to pre-pay up to 95% of your tuition costs, including textbooks and other related fees, through their Career Choice Program.
Employees can also choose from various innovative professions, including robotics engineer and other STEM careers.
Verizon
Verizon is a multinational, US-based company that specializes in various industries related to telecommunications. They offer different training and development programs for employees of all levels, including tuition assistance, access to industry research, and virtual internships to help them prepare for the workforce, enhance their skills, and advance their careers.
Fidelity
Fidelity is a multinational financial services company based in the US.
Their tuition reimbursement program provides up to $10,000 in contributions to employees to help them pay down their student loans and save on interest, which helps greatly decrease the time they pay on their college debt.
Proctor & Gamble (P&G)
Proctor & Gamble is a US-based multinational company that specializes in a wide array of household and consumer goods.
The company is proud to offer a very generous tuition reimbursement plan to its employees. However, to qualify they can only enroll in programs or courses that relate to their current or future position with the company.
Starbucks Tuition Reimbursement
Starbucks is the world’s largest multinational chain of coffeehouses and roastery reserves located in the US.
As a member of their team, employees have access to 100% tuition coverage through their College Achievement Plan; however, they must enroll in ASU’s online undergraduate program to qualify. Then, at the end of the semester, most of the costs the employee paid will be reimbursed via their paycheck. Books, personal expenses, equipment, as well as some of the undergraduate college fees, are not covered by the reimbursement.
Chipotle
Chipotle is a US-based chain of casual restaurants that specialize in mission burritos and tacos made to order.
The company pays 100% of tuition costs upfront, which means no out-of-pocket costs for employees to pay. Employees also have access to over 100 college degrees from various top-ranked accredited online universities.
Target Tuition Reimbursement
Target offers a Tuition Reimbursement Program to help eligible team members pay for higher education. The program provides money per calendar year in educational expense reimbursement for coursework taken at an accredited two- or four-year college, university, or vocational/technical school. Team members must be employed at Target for at least 90 days and work an average of 20 hours per week in order to be eligible for the program. The application process includes submitting transcripts that show courses completed and grades earned. Upon successful completion of courses with a grade of C or better, Target will reimburse employees up to the maximum annual limit.
FedEx Tuition Reimbursement
FedEx’s Tuition Reimbursement Program is a great way for employees to continue their education and set themselves up for future success. Through the program, eligible FedEx full-time employees can receive tuition reimbursement for approved courses of study at accredited universities or colleges. It also covers course fees, textbooks, and other expenses related to students’ educational goals. The overall aim of the program is to help employees become more productive and successful within FedEx.
Wrapping It All Up
If you want to have most of your education paid for, look for a job that offers tuition reimbursement. It’s a hot benefit these days and many large companies offer it. When determining the amount of tuition reimbursement you qualify for with any company, simply check with their HR department. Don’t miss out on the opportunity to get your degree or certificate at a discount.
