In the past, the norm was to finish college, get your degree, and then start job hunting. But times have changed. Nowadays, it might be smarter to land a job first. College can be a huge financial burden, and the time you spend studying is time you’re not gaining work experience or earning money. But don’t worry, you don’t have to abandon your educational goals if you choose to work first. If your employer offers tuition reimbursement, you can get your education costs partially or even fully covered while you’re earning a salary.
Take my friend as an example. She worked while studying for her bachelor’s degree. Her full-time job not only provided her with a steady income but also covered her tuition fees. Now, she’s debt-free and financially ahead of me, even though I have a higher level of education. So, there are plenty of benefits to having your employer pay for your degree.
Many companies offer tuition assistance, whether you’re aiming for an associate’s, bachelor’s, master’s degree, or even a Ph.D. This assistance is usually in the form of tuition reimbursement, where you pay for your courses upfront, and then your employer reimburses you for all or part of your tuition expenses once you’ve completed the course or semester.
However, not all programs operate this way. Some companies pay for courses upfront, and some even cover the total cost of tuition, leaving employees with no out-of-pocket expenses. But these programs often require students to attend specific in-network schools.
Also, some companies have eligibility requirements like limiting reimbursement to certain degrees and education levels or requiring you to pay back the assistance if you don’t maintain a certain GPA or if you leave the job. So, always check the details of your current or prospective employer’s program.
If tuition assistance sounds appealing to you, here are some of the top programs. But remember, this list isn’t exhaustive. Before you switch employers, check with your own HR department to see if they offer tuition reimbursement.
Companies like Amazon, Apple, AT&T, Bank of America, Best Buy, Boeing, Capital One, Chipotle, Discover, Disney, FedEx, Fidelity, Google, Home Depot, Lowes, McDonald’s, Microsoft, Papa John’s, PepsiCo, Procter & Gamble, Starbucks, Target, T-Mobile, UPS, Verizon, Walmart, Waste Management, and Wells Fargo all offer various forms of tuition assistance or reimbursement.
Tuition assistance programs are among the top perks companies offer, along with benefits like health care and 401(k) plans. They’re a win-win for both companies and employees. Companies get to retain quality employees and maintain a skilled workforce, while employees can avoid student loan debt and get the job-related coursework they need to advance in their careers.
However, there’s a catch. The IRS requires you to pay income tax on any amount you receive over $5,250 as of 2022, which means your employer has to declare larger amounts as part of your income. As a result, many employers cap annual tuition assistance at this amount.
Even so, the benefit can significantly reduce your higher education costs. And tuition reimbursement benefits can supplement any other financial aid you receive.
If you’ve already earned your degree and have student loan debt to pay back, look into employer student loan repayment programs. Although not as common as tuition reimbursement, repayment programs can help relieve the burden of spending a sizable chunk of your hard-earned salary on student loan payments every month.
