US Colleges and Universities: Saving & Finance

US Colleges and University Tuition Reimbursement Programs

One of the greatest incentives to come out of the Obama, US colleges and university education push is the promotion of the tuition reimbursement program that compensates employers for putting employees through a college education while continuing to work. As far as benefits go in a rapidly changing world and amongst an aging population, one would be hard pressed to find a greater employment benefit.

Employers offering continued education receive the benefit of a cutting edge, educated work force and they provide their employees with invaluable resources in their jobs, and their futures. It is no wonder this initiative is proving so popular among US colleges and university students, especially those embarking on tuition later in life.

Benefits to Companies

Many larger companies have had reimbursement programs in place for a long time and some are partnered with US colleges and university facilities. For those that do not have a program in place the prospect may be scarier but the advantages to the employer far outweigh the risks and include:

• Employee loyalty
• Broader skill base
• Industry contacts
• Contemporary skill sets
• Tax breaks
• Wider community relationships

Participating in the Program

Any employer can offer the program to any employee to attend any US colleges or university. To be eligible for government incentives and tax breaks certain criteria must be met though.

US colleges and university expenses the government will not over are:

• Meals, lodging, or transportation.
• Tools or supplies (other than textbooks) retained by the employee after completing the course of instruction.
• US colleges and university courses involving sports, games, or hobbies unless they meet certain criteria.

Employers may also award scholarships to dependents of employees as long as the amounts do not require past, present or future teaching, research or other services by the student to the employer as a condition for receipt of the award. There is an exception to this rule if the teaching or research services are required of all degree candidates regardless of whether they are a recipient of a scholarship or fellowship. Only amounts paid for tuition and fees are excludable from income. Eligible students must be enrolled in a degree-seeking program at a US college or university.

Company Requirements

Most companies offering the program will want to set guidelines for employers studying at US colleges and universities. This may include which costs will be paid and when, what materials are included and the length of time available to complete the course of study. Employees may need to maintain a grade point average throughout the US college and university course and may be responsible for some of the course costs.

Employers may also want to tie an employer to the company for a certain time following course completion. This seems reasonable considering that in addition to the benefits to employers and the obvious benefit of paid education for the employee, tuition reimbursement programs do not need to be included as work income on the employer’s income declaration. Consequently, these are tax-free earnings.

For those wanting to attend US colleges or university who are not lucky enough to have work foot the bill there, are things that you can do to help yourself save. Most people will tell you to start early and that is true, but it is never too late to start.

In addition, many States offer plans to families that want to save for a US colleges and university education, there are a number of other government initiatives, and tax breaks available to assist with savings’ goals. Although some schemes are definitely more attractive than others are, there are options for pretty much anyone who wants to attend a US college or university.