TUITION REIMBURSEMENT

Higher education tends to come with a hefty tuition bill, and this is something that your employer can help offset. Companies like having employees that are interested in advancing their knowledge base to move up in the company. Having higher skilled employees can be valuable for growing companies as people move up the ranks. To encourage employees to take courses that will help them improve in their current position or help them attain a higher position, some employers offer tuition reimbursement benefits. Tuition reimbursement is when your employer agrees to pay for part of or your entire education. 

First you typically need to get preapproval from your employer before taking the classes. Here they will evaluate the class to ensure that what you are learning in it aligns with the skill sets you need for your job. Employers will typically already have a list for you to review of majors and classes you can study that aligns with the company’s interests. For example, if you work in education your employer may have a list of relevant degrees listed that they would be willing to approve. Employers will also want to review the location you are taking the class to make sure they are accredited and legitimate. They may also have a list of schools and universities where they encourage you to take the classes that they have already partnered up with to offer classes at a lowered cost. 

Next you would sign up for the class and pay for it yourself. This benefit is a reimbursement, so it requires you to pay first and then submit receipts to be reimbursed for the costs. To submit reimbursement, you would complete the class earning the required grade designated by your employer, for example an A or a B, and then submit your receipt for payment and your grade report to your employer. Having met the grade requirement, the employer would now reimburse you the amount that you qualify for. For example, several employers typically reimburse up to $5,000 a year, while others may reimburse more or less. Any amount not reimbursed would be your responsibility. Failing to receive the required grade most likely will result in not receiving a reimbursement at all.

Finally, you will most likely need to work at your employer for a designated period before that reimbursement is vested. Employers do not want to pay for your advancement only to lose you to another company. If you receive tuition reimbursement, they will require you to work for them for a set amount of time. Leaving early will require you to pay back the reimbursement proportionate to how much of the required time you do not work. For example, employers may require you to work for them for a year beyond the date you receive your tuition reimbursement funds. If you leave after 6 months, you will have to pay back half the tuition reimbursement since you only stayed for half the required time. If you do plan to leave this employer after taking the classes, tuition reimbursement benefits may not be the right choice for you since you would have to simply then give it right back to them. 

Tuition reimbursement is a great way to lower your cost of higher education. If you are taking advantage of this benefit from an employer, make sure you understand their rules and regulations to ensure that you receive the benefit. Failing to get preapproval, taking classes at a location that isn’t approved, receiving a grade lower than the required grade even if it is a passing grade, and leaving before the reimbursement benefit is vested can all lead to issues with receiving or keeping the funding. 

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