Making the Most of Your Tuition Savings

As this year’s Open Enrollment season approaches, be sure to find out whether your employer offers a tuition assistance program. These programs go by a few different names, such as tuition reimbursement or education assistance, but what they all have in common is the potential to help you get the education you’re looking for to prepare for growth in your career. And unlike most of the other benefits in the booklet, you can start using this one before the new calendar year begins. 

How does it work? If your employer is like most, they offer up to $5,250 per year in tuition benefits. This is an education tax credit that benefits both you and your employer, and that allocation can be used to fund your education. Whether you choose to pursue an academic degree like an associate or bachelor’s degree, or a certificate in some industry-relevant area, your employer, with help from the IRS, can help you unlock educational opportunities while minimizing the need for you to take out student loans. Think of this benefit as part of your total rewards and compensation. If you’re not using the benefit, it’s like leaving $437.50 per month on the table!

You bet there is. Even though people tend to use these terms interchangeably and they offer similar benefits to employee learners, there are a few very clear differences. 

In a tuition reimbursement program, an employee pays for their education up front. Upon completion and subject to the requirements set forth in the company’s tuition benefits policy, like qualifying schools or areas of study, minimum GPA requirements, timeframes and other terms, the company reimburses the worker for some or all of their tuition costs. 

In a tuition assistance program, however, tuition and fees for the employee’s education are paid upfront by the employer or deferred through a partnership agreement between the employer and an educational institution. While the employer may still attach stipulations to the plan, the big difference here is the significant reduction or elimination of the need for the employee learner to pay their tuition out of pocket. 

You may be thinking tuition benefit programs are only for employees who want to earn bachelor’s or master’s degrees – academic programs that require long-term commitments. Today’s economic realities are causing employers to take a fresh look at tuition benefits programs as a way to upskill or reskill incumbent talent – employees who are already with the company – as they strive to meet new challenges presented by rapidly advancing technologies and historically low unemployment.  You may find your tuition benefits can be used to earn undergraduate certificates in tech skills like networking, cyber security and engineering technology – programs that take only about a year to complete, but can be a springboard to lifelong learning and career advancement opportunities.

Begin taking advantage of your tuition benefits by finding out everything you can about your employer’s program. No two tuition benefits programs are alike, and there may be certain restrictions affecting who is eligible, what types of learning pathways are covered, minimum grade requirements and other conditions.

Take stock of your personal and professional goals, and answer these basic questions:

·    Are you eligible for the benefit based on the amount of time you’ve been employed?

·    Is your employer’s plan a tuition reimbursement (requiring you to pay for your education up-front) or a tuition assistance program?

·    What types of learning or skills pathways will the program cover?

What to do next? The best approach is a proactive one. In the next one-to-one session with your immediate supervisor, make it clear that you’d like to take on new skills. Find out what skills the organization values most and what learning pathways are aligned with the skills your organization needs. Check out our guide How to Talk to Your Manager About Your Education and Career.

Also, connect with your HR department to find out what education benefits are available to you. Use this Tuition Benefits Checklist as a guide. And if it turns out your employer doesn’t offer a tuition benefits program, talk with your HR department and supervisor anyway. Let them know they’re passing up a valuable opportunity!

If you’ve been thinking a college degree or certificate program is unattainable due to the high cost of tuition, fees and other expenses, you may want to think again. At DeVry University, we’re dedicated to helping make education more affordable to all those who pursue it. Here are just a few examples of the ways scholarships, grants, employer tuition assistance programs and qualifying credit for previous learning or work experience can all help to reduce the cost of your education:³