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Tuition Assistance Question
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Tuition Assistance Question
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Hello my mentors! I'm wonderng how tuition assistance programs work in companies? Does the company pay all or part of the school? Is it based on grades? Only for certain schools?
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Forums » Topic Forums » General Forum » Tuition Assistance Question
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Tuition Assistance Question
posted at 1/16/2009 2:00 PM EST
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Posts: 108
First: 2/1/2007 Last: 9/9/2010 |
Each tuition assistance program will be different based on Company policy.
My company's policy is to reimburse for work-related courses/and or degree programs. We will pay for books and tuition, but not fees. We reimburse 100% for A's, B's and Passes in Pass/Fail courses and 50% for C's. We reimburse 0% for D's, F's and Fails. While we reimburse 100% - we will only reimburse 100% up to the cost of in state tuition for a State University so if a employees degree cost more than the State University's degree, we will only pay the amount of the State Degree. We also make sure we include any amount above the IRS limit as taxable income. Finally, all request for reimbursement must be made and approved before the employee takes the course. All approvals are evaluated on an individual basis (based on length of service, performance, etc.) and we require employees to stay a certain amount of time after completion of the degree or pay the cost of the degree back to the Company (our ability to actually recover the funds is debatable as we are in CA and we've never had to try and recover anything.) |
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Tuition Assistance Question
posted at 1/18/2009 12:59 PM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
Plus, many companies that pay/reimburse for tuition fees expect the employees to pay some/all of the fees back if they leave the company within X time after the course(s) end. If the employee signs a document agreeing to such a condition, then this is perfectly legal. |
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Tuition Assistance Question
posted at 1/18/2009 6:39 PM EST
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Posts: 2
First: 1/18/2009 Last: 1/18/2009 |
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Tuition Assistance Question
posted at 1/18/2009 6:40 PM EST
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Posts: 2
First: 1/18/2009 Last: 1/18/2009 |
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Tuition Assistance Question
posted at 1/19/2009 4:45 AM EST
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Posts: 1103
First: 3/16/2007 Last: 8/19/2011 |
I'm sure the real estate foreclosure auctions are exactly what we are all working for.
Tuition Assistance or reimbursement programs take on many forms and can be a big morale booster. The key is to establish one in such a way that it is mutually beneficial to both parties. That for example would mean that if you are a medical billing firm you aren't paying for a degree in archaeology. Most tuition assistance programs have some linkage to degree programs related to the company's business. IRS limits are something to remember as well. It comes and goes with the wind but I believe currently the limit for employer assistance remains at $5250 per employee per year for UNDERGRADUATE work. Anything outside the limit is taxable income to the employee. Creativity is your only limit with these programs. |
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Tuition Assistance Question
posted at 1/19/2009 9:47 AM EST
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Posts: 544
First: 9/27/2004 Last: 9/13/2011 |
as mentioned, policies are determined by organizations. Where I work, the course has to be job relevant or relevant to a high-demand position and has to be pre-approved by a supervisor, the employee agrees to repay the tuition if they leave within one year of reimbursement, credits need to be earned from a accredited school, non-tuition expenses (i.e. books, fees, etc.) are paid by the student, completing the course with a passing grade is required for repayment.
In addition to the advantages of having an educated workforce, I believe the organization benefits from having access to expert advice from university instructors and university sponsored resources and technology as well as strengthening community contacts. |
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Tuition Assistance Question
posted at 1/21/2009 7:07 AM EST
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Posts: 49
First: 12/4/2004 Last: 5/23/2009 |
We are a small company with six employees. In reading through the posts, I think I'm in over my head and also on the wrong path. I've noticed that some of my best employees have been college students and they tend to stay around until their school finishes. I'm always happy to see these employees move on because there is really no upward movement in our company, it's too small. Most of our work (expect for a Graphics Arts position) is I guess what you would called unskilled. Nevertheless, I thought by offering a tuition assistance program I could retain a few people for 2 to 4 years. |
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Tuition Assistance Question
posted at 1/21/2009 7:20 AM EST
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Posts: 1103
First: 3/16/2007 Last: 8/19/2011 |
If they are already working for you as students and you accept that once they graduate they will move on there is little financial incentive to you the business owner to offer TA. I am certain there are other things you can do that will retain them such as flexible scheduling, team work environments, "fun" work atmosphere, etc. It would appear that TA is an option that at this juncture is probably not the best idea. |
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Tuition Assistance Question
posted at 1/21/2009 10:27 AM EST
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Posts: 3870
First: 2/12/2002 Last: 11/2/2009 |
Agreed. This might not be the best use of your HR dollars.
Just as an aside, I work for a major state university. We've definitely seen a decline in the number of students receiving employer financial support over the past few years. I don't know if this means that TA plans are becoming obsolete, but the trend is ominous for sure. |
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