Job perks are a great benefit to any career! That is undoubtedly a factor that can sway a person in a “yes” or “no” direction when deciding whether to accept a job. One of these perks is employer tuition reimbursement. Not only does tuition reimbursement benefit the employee but also the employer.
As a person on a career path in education, it is a tough decision whether or not to go back to school to further your education. It is often a cost-benefit analysis when deciding whether or not to spend the money on education.
Obtaining a master’s degree (whether an online master’s degree or in-person) in a school district often means a pay increase. The biggest concern is often how much it will cost you before that time comes, though. Tuition reimbursement can certainly help in making that choice but first, what is tuition reimbursement from employers?
What is Tuition Reimbursement?
Tuition reimbursement is when an employer reimburses an employee for college credits or continuing education credits. It is considered a fringe benefit, and many school districts have different tuition reimbursement plans.
Many are similarly structured, but the caps on monetary reimbursement and the timeline of when you are reimbursed can vary from district to district. Some school districts do not offer tuition reimbursement plans, so it is also important to keep that in mind.
What are the Benefits?
Reimbursement from employers can be mutually beneficial for the employee and the employer themselves.
Pay Raises
Personally, I have always had the mindset that you need to spend money to make money, and tuition reimbursement is not an outlier. As mentioned previously, in most districts you can get a pay raise when you obtain a higher degree, such as a master’s degree. A pay raise on a teacher’s salary combined with a discount on tuition can be a push for an employee to go back to school.
More Knowledge
Employees that go back to school gain more knowledge; this is another mutual benefit for the educator and the district. The employee then brings more in-depth knowledge to the table and can pass it on to co-workers. The world of education is forever changing, and being that we are all lifelong learners, continuing education is important.
Job Opportunities
Tuition reimbursement can also put your solid paraprofessionals, teachers, and administrators in the market for a different job. The school district might have employees who they see a lot of potential for job opportunities that require an additional college degree.
Teacher Retention
Tuition reimbursement can aid in the employee’s decision to go back to school because it won’t be quite as expensive as if it was being paid for solely by the employee. This can benefit the entire school district.
Tuition reimbursement can make an employee feel important and that the district wants to invest in them. This can aid school districts in retaining quality employees and attracting new ones that meet the unique needs of their district. Employers should never underestimate the importance of making employees feel valued.
A little bit can go a long way. With the current trends in education, teacher retention, teacher burnout, and the lack of high school graduates entering college to obtain teaching degrees, it is essential to keep your quality employees and be sure they feel valued and appreciated.
How Does Employer Tuition Reimbursement Work?
Employer tuition reimbursement works just the way it sounds: employers reimburse employees for continuing their education. Colleges and universities generally charge students by credits, and employer tuition reimbursement often pays for a portion of each credit. Classes are usually three credits, so the compensation can add up.
The employee typically pays for the course and the credits upfront. After the course is completed, the employer will reimburse the employee for a portion of the money spent. Depending on the district, and if you are lucky, you might get reimbursed for the total amount.
Do All Districts Approach Tuition Reimbursement the Same?
Tuition reimbursement is not a one-size-fits-all approach. This process is not the same across school districts, so some districts may look more appealing than others when teachers are on a job search.
Some school districts pay a certain amount per college credit with a maximum per year. For example, the school district that I work in reimburses the employee $175 per credit for up to 12 credits each fiscal year (July 1- June 30). The employee must pay for the courses out of pocket, and once the course is completed and the grade is posted, you may submit your reimbursement form.
Prior to the start of the course, a request for reimbursement must be submitted and approved by the building principal, assistant superintendent, and the superintendent of the school district. Checking with your district on their employer tuition reimbursement policy should be at the forefront of your decision to further your education.
Can Tuition Reimbursement Impact Financial Aid?
Tuition reimbursement is considered gift aid, and it is possible that it can affect your financial aid eligibility. A good rule of thumb is to reach out to the financial aid office at the college/university that you plan on attending to determine whether tuition reimbursement will affect your financial aid status and student loans.
Additionally, any tuition reimbursement received over $5,250 must be declared as income to the Internal Revenue Service (IRS). Anything under the “magic number” of $5,250 does not need to be reported to the IRS.
Additional Considerations
Many school districts require you to earn a specific grade to be reimbursed for your credits. For example, in the school district that I work in, you must receive a “B” (or equivalent to a “B”) average in order to be reimbursed for your credits. This can vary from district to district, so it is important to check on that before beginning your course.
Other important questions to keep in mind are:
- Will you have obligations to your school if you accept?
- Do you need to complete the course in a specific time frame?
A good piece of advice is to jot down any questions you may have about your school district’s reimbursement plan and reach out to human resources (HR) before you start the courses to determine what you are eligible for and what the requirements are on your end.
As Brian Tracy stated, “Continuous learning is the minimum requirement for success in any field.” It is essential to keep learning and pass that learning on to your students and your fellow educators. Modeling lifelong learning for your students can be invaluable to their success. What better incentive to keep that learning going than getting reimbursed for part or all of it? I can’t think of any!
Interested in learning more about your financial aid options for graduate school? Explore our comprehensive funding e-guide here.
