What is Tuition Reimbursement?

Tuition ReimbursementWhile salary, health insurance, paid time off and retirement contributions are often the benefits that initially catch the eye of potential employees when they weigh a job offer, tuition reimbursement can be an incredibly valuable perk, especially for professionals in fields that require continuing education.

What is Tuition Reimbursement?

Tuition reimbursement is a program set up by employers in which they pay all or part of the costs involved when an employee continues their education by taking classes or pursuing a new or advanced degree. Because companies establish these plans themselves, there is no effective standard for tuition reimbursement. Every company sets its own requirements as to which employees and which types of educational options are appropriate. They also determine what types of expenses are eligible and how much of the eligible costs they will pay.

How Does Tuition Reimbursement Benefit the Employee?

Tuition reimbursements allow employees to attend a college or university to better their skills, extend their knowledge, and improve their qualifications at a reduced cost. While this perk can be a great way for people to earn their dream degree, it is especially useful for those people whose jobs require continuing education. In many states, teachers, optometrists, doctors and other healthcare professionals must complete a certain amount of continuing education in order to maintain their licenses. Professionals in rapidly evolving technological fields or other fields that use technology frequently may also need to return to class in order to stay current with innovations and trends that affect their jobs.

How Does Tuition Reimbursement Benefit the Employer?

As Forbes explains, employers do not offer tuition reimbursement out of the goodness of their corporate hearts; tuition reimbursement is a deliberate investment in an asset that is expected to reap benefits for the company. Not only does providing tuition reimbursement help lure in talented, ambitious people as employees, it also hones skills necessary for the workplace and readies the employee to deliver better performance on the job.

What Should Employees Watch Out For When Accepting Tuition Reimbursement?

When considering whether or not to accept tuition reimbursement, Bank rate suggests employees check the ABCDs of their employer’s program carefully. First, always verify the amount of reimbursement your employer offers. It may be capped at a certain monetary amount or a certain number of classes. Second, be aware of if you need a “B” grade or better. Some employers only pay if the employee maintains a certain grade or grade point average. Others offer a sliding scale where employees receive more reimbursement for better grades. Third, watch out for contractual obligations. In order to see a return on their investment, many companies require employees who accept to tuition reimbursement to stay with the company for a certain period of time. If you leave without completing that commitment, you may be required to pay back the monies you received. Finally, make sure the degree you want to pursue is one your company is willing to pay for. Schedule a conversation with the human resource department to ensure you understand exactly what your company will offer, as well as what it expects from you in return.

Related Resource: Education Degree Online

Tuition reimbursement benefits both employees and employers; employees are able to further their education at a reduced cost, and employers profit from having better educated employees with stronger skills and a wider knowledge base. If you are interested in tuition reimbursement, check with your company’s human resources department to see what your company offers.