Employer Tuition Assistance
There are many institutions that are willing to finance postsecondary education and your parents' or your own employer can be one of them. This option is highly recommended for those who are pursuing postgraduate studies. Employers would often look at their tuition assistance programs as investments towards improving their personnel. It would be more difficult to find employer tuition assistance for the undergraduate studies of a dependent.
Today, this type of financial assistance is most popular for people who want to get a Master's degree in Business Administration. The funds used received from these programs are tax-free and are excluded from one's own income. However, the funds which are given by the company often entail many restrictions. The yearly disbursement of US$5,250 should only be used for the tuition, supplies, books, fees and equipments. This benefit should be given solely to the employee, and not for any of their dependents.
For more comprehensive tuition assistance programs, the company may require that the employee reach a specific grade or level or courses. The usage of the money cannot be used for sports oriented courses, for travel expenses, lodging or meals - solely for tuition fees. The courses to be selected must be in-line with the career of the employee, nothing more. But still, tools and supplies purchased during trainings will remain to be in the possession of the employee.
These companies provide the tuition assistance programs usually through the Human Resource Department. The aim for these programs is to integrate their employee's formal education to future career paths within the company. If you are interested in availing for this specific benefit, it is best to approach your HRD and inquire about their application process, criteria, plans and requirements.
Some employers even assess the tuition reimbursement based on the Grade Point Average of their employee. They may pay 100% for those who get an A and lesser for those with lower grades. However, these are really the prerogative of the company but the US$5,250 is a provision of the law. If there are payments made beyond US$5,250 they remain to be tax-free as long as those expenses can be proven to be working condition fringe benefits.
Some companies require their employees to pay their tuition upfront and just ask them to file for reimbursement. This is why the employee needs to earn enough to ensure that their income is flexible so that they would not have to interrupt their coursework when their disbursement check is delayed.
Certain colleges may provide their own employees with tuition waivers or tuition reductions. Of course, these benefits are not given in favor of highly compensated employees. Often, sons and daughters of non-academic staff are given priority. This is why it is advantageous to be a child of an employee in the college, regardless of position. On the other hand, members of the faculty are also often given either full tuition or a discounted tuition if they wish to continue higher studies under the tutelage of their college.
