What is Tuition Reimbursement?

Just as it sounds, tuition reimbursement is something that many employers offer as a way to pay back employees for education expenses. Those who choose to participate still have to pay out of pocket for the courses they take. When the course is over, the employee can get back some or all of the tuition expenses. At some institutions, students with financial constraints may qualify to defer payment until their coursework is complete.

Some employers choose to go above and beyond tuition alone, and reimburse other expenses associated with higher education. The program my company offers not only covers my tuition, but also covers the cost of my books and my Internet connection, as long as I can prove that at least one course I am enrolled in is online or “web-assisted,” meaning some coursework takes place over the web.

Lastly, employees who embody a balance of work experience and education can be extremely successful in a company. Statistically, census.gov surveys show that employees with a college degree make around $45,000 a year, while those without one make $25,000 a year. Additionally, employee development is important to employee retention, and to company culture.

Knowing this, employees greatly value when their employer is willing to pay for furthering their education. Many times, employees are promoted within their company soon after degree completion as well. Moreover, tuition reimbursement is one of the types of employee benefits that has a lasting effect on the employee and the company – producing educated employees that have the knowledge and experience necessary to handle their daily tasks effectively.

What Does the Employer Get by Offering Tuition Reimbursement Benefits?

1. Smarter Employees

2. Tax Breaks