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Essential things to know on employer tuition assistance program

September 18,2011 by: Dallas Browne

Obtaining financial assistance from your organization for advancing your study program and career seems to be an exciting idea; nonetheless, the employer tuition assistance program has strings attached. Organization would not extend their financial help without expecting something in return. Further, the financial id from the program may attract tax implications. Below are the four chief points to consider before jumping the gun. Read on to learn more.

Usually organization will reimburse the tuition fee at the end of the study program or an annual basis or perhaps quarterly. This means that you have to make the initial payments, and therefore must secure adequate funds to continue your education without being stressed about late payments. Further, if you discontinue your study program, you may never receive a refund from your employer.

Every organization has its own set of rules to impart the employer tuition assistance. Some companies may require you to work while pursuing your study program, while others define a GPA score that makes you eligible to obtain the financial aid. Ensure that you read the fine print before signing up the legal documents.

The catch hidden in providing the employer tuition assistance is that organizations require the student to continue working for a stipulated time frame after the successful completion of the study program. Therefore, think twice before signing up the contract, weighing the pros and cons of your career advancement is over and above any financial assistance. In case, if you decide to walk out sooner than the pre-defined time period, you may be liable for a repayment of a hefty amount.

Usually employer tuition assistance program entertains tax ramification, hence, you must consult a renowned tax specialist or an accountant before proceeding to accept the financial aid from your employer. Remember, tuition reimbursement may be considered as income and hence taxed.

Furthermore, where funds are excessively exhausted in providing tuition assistance, the company requires the employee to sign a pay back agreement should they decide to walk out of the organization before the expiration of the contract terms. In such a scenario, the employer absolves a certain percentage of the tuition amount on an annual basis until the employee continues working for the organization.

Since pursuing higher education is beneficial for the organization as well, hence, some organizations agree to pay the complete course fee including the lab and the book fee. On the contrary, some may limit their financial aid to a pre-defined number of classes or limit the dollars. The program requires the employee to submit a passing grade of ā€œCā€ or a higher grade to extract the benefits. Submitting the grades; ensures the money of the employer is being spent wisely.

Employer tuition assistance program allows the employee to continue the development and growth of their knowledge and skill sets, while the employer can bank upon this growth in the due course of time. Nonetheless, you must read the terms and conditions carefully before agreeing to receive the financial aid for your education.

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