May 17th, 2010

Working while going to school can make your studies more difficult, but there’s one important way that work can make school easier, and that’s tuition assistance. If you are currently working, it is in your company’s best interest for you to improve your education, particularly if your studies involve skills and learning that are specific to your work. It’s a great trade off for both you and your boss. Here’s how to take advantage of it.

Employer tuition assistance is most often offered by large companies, however, you may be able to take advantage of assistance even at a small business. It’s important that you stress the value that additional education will bring to your company. The IRS allows for employers to provide up to $5,250 per employee tax free every year. You can expect your employer to stay within this limit, as any additional assistance will be taxed.

First things first, talk to your HR department. Find out if there is a tuition benefit program already in place, and what you can expect to get from it. You may find that your company offers generous benefits, but don’t be dismayed if the program is less than what you were hoping for. Sit down with your boss to discuss your needs, desires, and what you can offer in return to negotiate a better shot at tuition assistance. One 30 minute meeting can save you thousands of dollars!

Most employer tuition benefit programs reimburse students based on performance. This means you’ll need to pay for your tuition up front, and be paid back at the end of the semester when you’ve received your grades. So if you get an "A," your course may be fully paid for, while if you get a "C" or lower, you can expect to have less of your course reimbursed. Other employers will require you to maintain a specific grade point average to continue receiving tuition benefits. If you have an especially generous employer tuition benefit program, your company may pay your tuition bill directly, without requiring you to make the initial payment.

Whatever the arrangement is for employer tuition benefits at your company, it’s essential that you find out what is available to you and take advantage of it. College can be expensive, especially for working professionals, and every bit of assistance helps.

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