For most working adults, it is not just the time it takes to go back to school, it is the money too. The good news is that you may be able to get your employer to pay for college or, at the very least, some of your educational expenses.
Employer tuition assistance programs are standout benefits that many companies provide. These programs showcase employers' investment in the personal and professional growth of their workforce, and act as a critical tool in attracting and retaining top talent. These programs can go by many different names, such as employee education benefits program, tuition remission, education assistance programs, professional development programs, employer-sponsored education, and more.
As you consider your options, there are two common types of employee education benefits: employer tuition assistance and employer tuition reimbursement. It helps to know the difference between the two so you can make the choice that works best for you.
While employer tuition assistance is commonly offered, these programs often include stipulations and conditions. For example, they may require you to maintain a minimum GPA, designate select universities that you can attend, or provide tuition assistance only for specific programs that will advance your work and responsibilities.
Some employers only offer tuition assistance to employees who have been with the company for a set period of time, or those who will guarantee that they will work for the company for a period after finishing their degree. Before enrolling in your company's tuition assistance program, it's important to read the terms and get clarification on anything unclear. While adding these stipulations helps your employer secure the advantages of their investment, you want to be sure the terms are beneficial for all parties.
There are multiple reasons why an employer may choose to offer tuition benefits. First, a well-educated workforce is necessary to achieve company goals. If the criteria for tuition assistance is designed to only cover programs that support the organization's mission, then paying the employee tuition is considered an investment. For example, if a business has an employee they think would do well in a leadership role, but that employee lacks managerial training, they can offer tuition help to pay for an MBA. When the student graduates, they will be better equipped to lead, and the organization benefits from retaining a skilled worker and gaining an educated leader from within.
Furthermore, helping employees advance their education can build loyalty from an organization's workers. The more qualifications employees have to feel confident in their role can increase job satisfaction. A study found that 86% of workers at companies offering tuition assistance were happy in their role. The ability to retain top talent is a major cost savings compared to recruiting a new hire.
Lastly, employers are able to deduct the same amount of tuition offered, up to $5,250, from their taxes under IRS Section 127. This deduction is not subject to social security, Medicare, or federal unemployment taxes, so while money is "free" to you, employers are able to use it as a tax write-off.
Now that you know what tuition assistance programs are and why they are important to both the employer and employee, let's look at how to navigate the educational benefits programs that companies offer.
According to an SRHM survey, almost half of all American employees are offered some type of educational benefit with their jobs. Tuition assistance stands as an important element in the financing of higher education. Another SRHM survey found that 92% of companies provide some sort of educational benefit. These benefits include various forms of financial support, such as tuition reimbursement, direct payment of tuition fees, and educational grants or scholarships. Additionally, some companies offer student loan repayment assistance and establish partnerships with educational institutions to provide discounted tuition rates for employees and their families. Tuition assistance is the most common source of financial aid for college students, and on average, it covers about one-third of the average annual cost paid by post-secondary students.
Employers often go beyond just providing tuition benefits directly. Many partner with universities to offer discounted tuition rates for their employees, their children, and their spouses. For example, UMass Global collaborates with nearly 500 companies across various sectors, providing such discounts. This partnership not only benefits the employees but also fosters ongoing education and skill development within the workforce.
Even if there is no formal tuition reimbursement program at your company, you may be able to simply create your own or even convince leadership to implement a system-wide program. Try writing up a detailed proposal of what you want to study, the costs and the time commitment, and what the benefits will be. Don't forget to remind your employer that they may receive tax credits for paying your tuition, which can appeal to the company's overall financial health.
Rule #1 - remember who is paying your tuition. Focus on how your education adds value to the organization and your department. In general, employers consider one of two questions before they make a hire:
If you want to convince your employer to pay for your education, you need to focus your proposal on these two realities.
It may also be helpful to gather data on the potential return on investment, such as the skills or knowledge that can be applied to your role. Focus on how higher education will improve your efficiency, innovation, and problem-solving skills. By presenting a well-thought-out proposal, you can demonstrate your commitment to growth and make a compelling case for tuition assistance.
Let's walk through some of the key steps when it comes to talking to your employer about advancing your career and the organization's strengths through educational benefits. You're going to want to do your research and be prepared to present your case.
Peter Cappelli in "Why Do Employers Pay for College?" (NBER Working Paper No. 9225) finds that, "tuition assistance programs appear to allow firms to hire better quality, more educated, more productive, employees." That extra productivity makes it economically feasible to pay a large portion of employees' tuition bills while also contributing to the success of the organization.
Why do so many companies provide tuition assistance for their employees who pursue post-secondary education? College courses give employees new "general skills" that raise the ability of these workers to qualify for higher pay - their market wage - and may enable them to more easily jump to another job in another firm. General skills, such as communications and analytic ability, are not necessarily aimed at the specific tasks of employees. But even occupationally specialized post-secondary programs, such as nursing or computer programming, are valuable to a great many employers. The employer costs of such education are not trivial and are often quite generous. Yet they enable employees to obtain degrees or other readily identifiable credentials that make them more marketable to other firms.
Further, tuition assistance tempts employees to stay longer with the company as they make use of the benefit, spending their evenings and weekends working through a schedule of college courses towards a degree - a part-time process that could last many years. Lower turnover saves employers on the substantial costs of searching for and hiring new employees to replace those leaving. Tuition assistance may also give employers a hint as to which of their workers possess superior ability. If the employer thinks you can reach your potential without the degree, they may not agree to pay for it. So be prepared to show specific ways that this degree will enhance your job performance.
It really helps to know all the different local college and online college options before presenting your case for tuition reimbursement.
Don't present the priciest option to your employer, unless you can absolutely show that it will pay off the most for the company. It will seem like you're using them to land an incredible deal on college. Come with a couple of options but ready to present just one. The more you know about the rates and the school, the more it will show the employer that going there is important to you.
It also helps your case if you mention that you'll be applying for scholarships and grants and are only asking if they'll pay for the remaining bill. Financial aid representatives refer to "packages" because the majority of funding comes from multiple sources. Diversifying your portfolio is a smart tactic to leverage when proposing a plan to your employer.
It's important to approach the conversation with a clear understanding of your goals and how the program aligns with your professional development and your company's vision. Be prepared to provide information on the specific university and degree program you wish to pursue, and how it will benefit you and the company.
Providing a solid plan on how you will use your new degree to advance your company and add value to your organization will provide you with the best chance for getting your tuition paid.
Employer tuition assistance programs provide working adults with the opportunity to further their education without adding the financial stress of going back to school. For those seeking to leverage their education for career advancement while contributing value back to their employer, UMass Global offers online bachelor's and master's degree programs designed with flexibility and real-world application in mind. With our numerous degree programs and courses, you'll likely find a program that fits both your needs and your employer's needs. Check out our partnerships page to learn how UMass Global can help you.
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