Workplace Tuition Assistance
How to Make it Work For You
Want a Raise?
Have you been thinking about taking classes to improve your job skills and your earning potential? If you have, then you might want to check with the human resources office at your place of employment. You may find that your employer will pay your tuition.
Tax-Free Money
If your employer gives you money to go to school, the tuition payments will be included on your W-2 along with your salary and tax withholdings. IRS regulations allow you to receive up to a total of $5250 of tuition assistance every year tax free. Any tuition payments in excess of this amount will be subject to income tax.
How to Apply
Check with your human resources department to find out how much tuition assistance you qualify for each year. Ask if there are any restrictions regarding the school you choose or the courses that you want to take. Your employer may require that courses relate to your present or future position.
Tuition assistance doesn't necessarily mean that you have to be working toward a degree, but it may be a good idea to find out if your employer has any degree requirements. If you decide to apply for tuition assistance, then you will probably need an application form. Your human resources specialist can help you fill it out.
Be sure to note all deadlines regarding your paperwork and payment information. For instance, you might be required to submit a request and get approval for assistance before you enroll in each course. If this is the case, then consider submitting your request early. Remember, you also need to meet the course enrollment deadline at the college or university as well.
When it comes to furthering your education, you will be responsible for choosing your school and applying for admission. You will need to assemble your trans, letters of recommendation (if required) and any other items requested by the school. Your employer may reimburse your admission fees; however, you are responsible for planning your course of study and enrolling in each of your courses.
What Are the Requirements?
Some employers require that you maintain a certain grade point average in order to qualify for tuition assistance. Your amount of tuition assistance may even be based on the grade that you earn in each course. In some cases, employers may reimburse a higher percentage of money if you receive a higher grade.
Your employer may also require that you stay on the job for a set period of time after you complete your last course. The typical requirement is one year of service. If you fail to meet this obligation, you may have to repay all or part of your tuition. Be sure to check with human resources to find out what your company's policy entails.
Your employer may also have a say in how many classes can be paid for each year. One reason is to control costs. Another reason may be to make sure that you don't overextend yourself between school and work.
Reimbursement may be limited to certain types of schools and/or programs as well. For example, your employer may require that the school have national accreditation by an agency recognized by the U.S. Department of Education. When researching schools, it may be a good idea to check on the accreditations and awards it has earned. You may also want to double check to ensure that your employer's reimbursement program will accept the school and its accreditation.
How Does It Work?
Tuition assistance can work in a few different ways. In some cases, your employer may pay the school directly when tuition is due. However, it is more likely that you will pay your own tuition and submit a request for reimbursement. In the later case, you take the course, get your grade and then submit a request for reimbursement. Be sure to ask your human resource specialist how long it will take for you to receive your reimbursement. Some companies can take up to a year before they send you a payment, and this time frame might dictate how you originally pay for your classes. For example, if your company offers a quick turnaround for reimbursement, you might want to pay your tuition by credit card and then pay it off when you get your reimbursement check.
Keep in mind that tuition assistance is only good if you sign up for and finish courses. If you withdraw from a course that your employer paid for, you may be required to pay back any funds given to you or the school.
What Is Covered?
Depending on your employer's tuition assistance plan, you may be able to get reimbursed for tuition, books, materials and fees. It's a good idea to find out exactly what your employer will cover before you enroll in courses.
What Are You Waiting For?
Your employer knows that you're a good employee or you wouldn't be on the payroll. Imagine how much more valuable you'll be after specialized training. It's a real win-win situation. You improve your skills and your employer gets a more talented employee.
SunTrust is unable to offer tax or legal advice. Please consult with your tax and legal advisors.





