How to Get Help Paying for College from Your Employer

Figuring out how to pay for college can seem overwhelming, but once you explore the opportunities at your disposal, you might be surprised by how affordable it can be. One of the best perks at many jobs is employer-provided tuition reimbursement. In this article, we’ll look at what it is, how it works, whether or not it’s taxable and how to ask about options at your place of employment.

Tuition Reimbursement Through Work

A survey conducted by the Harvard Business Review found that out of 294 business leaders, 90 percent recognized the strategic value in offering tuition reimbursement.¹ Many companies and organizations offer some form of tuition reimbursement for employees who go back to school. It’s in an organization’s best interest for their employees to be as skilled and educated as possible, so they will often encourage continued education.

On top of the financial assistance you receive from your employer, you can also boost your earning potential and expand your pathways to success at work by going back to school. It’s often thought that pursuing graduate studies is primarily for exploring new lines of work, but it’s just as possible to advance in your current position by boosting your credentials.

How Does Tuition Reimbursement Work?

The way tuition reimbursement works differs from company to company, but there are some common standards and procedures. You’ll first need to get approval from your employer for the specific degree you’re considering. Based on your company’s policy, reimbursement could include the entirety of your tuition, a portion of your tuition or even certain courses. You’ll also need to find out whether your employer will reimburse you up front or pay for your courses after you complete them.

Some companies have policies where employees need to earn certain grades to continue receiving funding. Some also require specific work performance requirements be met. It’s important to talk to your employer about their rules and regulations before you seek approval.

Is Tuition Reimbursement Taxable?

Whether or not employer tuition reimbursement is taxable can make a big difference. Luckily, there’s a clear answer. According to the IRS, any amount up to $5,250 annually can be awarded tax-free.² This doesn’t mean your employer can’t exceed $5,250, but any amount above that will be taxed.

How Do I Ask My Employer for Tuition Reimbursement?

Most companies that offer tuition reimbursement have their processes documented in employee handbooks, but if you’re having trouble finding information, it’s a good idea to ask your direct manager or someone in the human resources department. If there is a tuition reimbursement program at your place of employment, there will likely be somewhere for you to learn more about it.

Going back to school will greatly benefit you personally, but it will also benefit your employer. In many graduate programs, you’ll develop valuable skills in leadership, communication, writing and more that can make you a stronger asset for your company. On top of that, you’ll be building on specific skills in your field that will boost productivity and efficiency.

Explore Online Degrees

Before you can fully explore the employer tuition reimbursement opportunities available, you’ll need to have an idea of what degree you want to pursue. Campbellsville University has a variety of professional programs designed to meet the career needs of returning students.

You should also explore financial aid opportunities at your university for additional assistance. By taking full advantage of tuition reimbursement and financial aid, you can make college affordable and get started on the path to reach your career goals. Find out what Campbellsville has to offer today!

Sources

1. Harvard Business Review. “Realizing and Unlocking the Strategic Value of Tuition Assistance Benefits.” Retrieved December 9, 2024, from https://hbr.org/sponsored/2024/03/realizing-and-unlocking-the-strategic-value-of-tuition-assistance-benefits.
2. IRS. “Reminder: educational assistance programs can help way workers’ student loans.” Retrieved December 9, 2024, from https://www.irs.gov/newsroom/reminder-educational-assistance-programs-can-help-pay-workers-student-loans.