Understanding Tuition Reimbursement
Starbucks just announced this week that they will offer employees the opportunity to take online classes through Arizona State University. ASU is growing and among one of the largest colleges in the nation. The company is not requiring employees to remain at Starbucks after they receive their degree. Starbucks claims they just want to offer an opportunity. There are other companies that offer all sorts of reimbursement opportunity for their employees.
Tuition Reimbursement Facts
Companies cover a portion or in some cases all tuition back. Normally there is a catch.
- One fact about tuition reimbursement is its treated like taxable income to the employee that receives such assistance. If you would like to know what educational expenses credit as tax deductions that information can be found at the Internal Revenue’s website.
- For a lot of these programs you have to be with the company for a certain length of time before even applying.
- You also must keep in mind you may have an obligation to remain with the company after you complete and receive your degree.
- Your completion of your degree may get you a promotion which would be an excellent opportunity and a resume builder.
- Depending on the company you may have to maintain a certain grade point average or even make a certain grade or better in certain courses.
- Some programs only pay for employees majoring in major such as business and so forth.
- Make sure before you agree to a program you understand the requirements or else you will be stuck with a very large bill.
- Remember situations like retaking courses may also be unreliable under a tuition reimbursement program.
- Companies sometimes change or add to their reimbursement policies so be sure to evaluate your situation annually.
- Undergraduate and graduate students are eligible for tuition reimbursement.
- If you have your undergraduate degree and are interested in a graduate degree tuition reimbursement could be your ticket to gaining more education.
Why Tuition Reimbursement
What college graduate doesn’t want to be debt free after graduation? Some programs don't only cover tuition they also cover books and fees. Companies like Chevron cover tuition, books, lab fees, and registration and administration fees as much as 75% of the cost. Many of the companies that offer programs such as these are Fortune 500.
If you are not sure if your company offers a program like this ask human resources or ask management. So many students across this nation find the cost of college to be a hardship but with the help of your employer it does not have to be.