What is a Tuition Assistance Program?

<p>Tuition assistance programs allow employees to save money while pursuing an education in a specific field. Employees generally have the option of studying for an entire degree or taking just a few courses. Employers are able to offer up to $5,250 tax-free per year to an employee. Additional amounts will depend on the specific employer. </p> <h3 id="section---ImportantFactsAboutTuitionAssistancePrograms">Important Facts About Tuition Assistance Programs</h3> <p /> <table border="1"><tr><td>Registration Period </td><td>Teaching institutions must establish a TAP employee registration period, which must begin a minimum of three days before the initial day of classes</td></tr> <tr><td>GPA Requirements </td><td> Most employers require participants to maintain an acceptable grade point average (GPA) while enrolled in an assistance program</td></tr> <tr><td>Job Continuation </td><td> In return for providing assistance, some employers may require participants to continue working for their company for a pre-determined amount of time upon completion of a degree program</td></tr> <tr><td>Spending Limit</td><td>IRS regulations stipulate that employers may provide no more than $5,250 (tax-free) to each employee on an annual basis</td></tr> </table><h3 id="section---TAPConsiderations">TAP Considerations</h3> <p>While employers' requirements for participating in tuition assistance programs may vary, most share common factors including: </p> <ul><li><b>Coursework:</b> Some employers may place restrictions on the majors their employees choose. Tuition reimbursement may also apply to certain general or core courses within a major. </li><li><b>Payment:</b> Employers may have preferences when it comes to payment methods. Some will require employees to pay tuition costs up front to be reimbursed later, while others will pay schools directly. </li><li><b>Time Commitment:</b> Some companies may require coursework or degrees to be completed within a certain amount of time. Employees should make sure all courses are offered and can be completed within a specific time frame. </li><li><b>Additional Sources of Money</b>: Employers also sometimes offer scholarships to employees' dependents. </li><li><b>Course Materials:</b> An employer may also cover the cost of materials required for courses. The most common material is textbooks, which can cost several hundred dollars per semester.</li></ul>