Employer Provided Educational Assistance

College Benefits from Your Boss

Employers have a vested interest in your commitment to education. Why? When you increase your knowledge you become an even more valuable asset to a company or business. It’s in an employer’s best interests to encourage employees to go back to school and what better way to offer incentive than with attractive employee educational programs (EEPs)?

Whether you want to go back to school to complete your undergraduate degree or take the time to work on a graduate degree, your employer may have benefits to assist you in paying for it.

Qualified Educational Expenses

What exactly does your employer educational benefits include? Fortunately you can use employer incentives to cover almost all of the costs directly associated with your post-secondary education, including tuition, fees, books, supplies and equipment. Expenses not eligible include room, board and transportation.

  • Employers may offer incentives for undergraduates and graduate students. Some employers offer more funds for students pursuing a graduate degree.
  • Ask your human resources department to explain the types of educational benefits available to you.

Depending upon your employer and type of business or company, you could be privy to any one of a number of educational assistance programs, including:

Assistance for Improving Career Skills

Career skills are commonly covered in many workplace educational assistance programs. Are there skills that will make you more productive or competitive in your job? Skills you’d like to acquire to move to the next career level? When you improve and develop skills you not only ramp up your education, but you become instantly more valuable.

Find out if your employee educational assistance program is limited to degree seekers, or if you may pursue standalone skills courses and certificate programs. Get the competitive edge you need.

Assistance for Earning a Higher Degree

Many EEPs require students be engaged in a formal degree program. Ever considered earning a degree or thought about going back for another degree? An employer educational program could be the most affordable ticket to a first or second degree. You may have all or part of your education expenses paid by your boss.

Limitations and Requirements for EEPs

In many cases your employer has stipulations attached to an EEP and may include:

  • You may be required to maintain a particular GPA to continue to qualify for employer assistance.
  • You may be responsible to pay the tuition bill up front and submit all itemized bills for an education refund.
  • You may be required to pursue a degree, as opposed to coursework or certificates.
  • Online programs may be excluded.
  • You may be required to be full-time and have worked for a certain period of time before EEP benefits kick in.
  • EEP agreement may make stipulations that you must remain in your job or department for a period of time post receipt of EEP benefits.
  • EEP may only cover a percentage of tuition.

When it comes tax time, the IRS allows you to deduct up to $5,250 each year in EEP aid. If your employer provides more than $5,250, you may have to pay taxes on the amount over $5,250. It’s important to keep accurate records of your expenses so that you’ll have them at tax time.

Also, if your employer provides you with educational assistance, you cannot claim the HOPE Scholarship tax credit or the Lifetime Learning Credit during the same tax year. So make sure you understand the limits and take whichever credit program is best for you financially.