The cost of attending a public four-year university has more than doubled in the last 30 years, according to the College Board, requiring many students to work while attending school.
In fact, 40% of full-time undergraduate students and 74% of part-time students have a job, and most work at least 20 hours per week, according to 2022 estimates by the National Center for Education Statistics.
The good news is that nearly half of employers offer tuition reimbursem*nt as an employee benefit, according to a 2022 survey by the Society for Human Resource Management. But these programs aren’t always straightforward, and you may need to meet some requirements to qualify.
We receive compensation from our partners for Featured Offer placements, which impacts how and where their offer is displayed.
Featured Offer
College Ave Student Loans
APRs
6.99% to 13.99% (fixed), 6.99% to 13.99% (variable)
Minimum credit score
Mid-600s
Repayment terms
5 to 20 years
What are tuition reimbursem*nt programs?
Tuition reimbursem*nt programs are a form of educational assistance offered by employers. In general, you’ll pay for tuition and fees upfront, and your employer will reimburse you up to a certain amount. In some cases, employers may not require you to pay anything out of pocket.
The IRS allows employers to provide up to $5,250 in assistance per employee each year. This employee benefit isn’t taxable, though you may need to use applicable grants and scholarships before receiving tuition reimbursem*nt from your employer. If you receive more than the permitted $5,250, you’ll be required to pay income tax on the excess amount above that threshold.
Employers offer tuition reimbursem*nt programs to improve employee recruitment and retention — you’re more likely to stick with a company that’s actively investing in your future — and it doesn’t hurt that they also get a tax break.
Jobs with tuition reimbursem*nt can also help create a bigger pool of qualified candidates for senior-level positions in the company. As a result, some companies limit your options to areas of study that are related to your career. However, others may give you more flexibility to choose your degree or certificate program.
How to find tuition reimbursem*nt jobs
If you already have a job, check with your human resources (HR) department to see if your employer offers tuition reimbursem*nt. If you’re looking for a new employer, include tuition reimbursem*nt in your search on major job search engines like Indeed, SimplyHired and LinkedIn.
As you search listings and apply — or leverage your professional network — ask recruiters, HR professionals and hiring managers to provide more details about their tuition reimbursem*nt programs, so you’ll have an idea of the requirements and awards.
Here are several major employers that offer jobs with educational assistance:
Target’s tuition reimbursem*nt program
Award: Up to 100% coverage for tuition, fees and books for eligible associate and bachelor’s degrees, select boot camps and certificate programs and even high school completion and college preparation.
Eligibility: All U.S.-based part-time and full-time employees are eligible.
Target partners with Guild to pay 100% of your tuition, fees and book expenses for over 250 undergraduate study programs, certificates and boot camps at over 40 colleges (online classes included). Instead of requiring you to pay out of pocket, the employer pays everything upfront.
If you want to pursue a master’s degree, undergraduate program, certificate or boot camp that’s not listed in the Guild catalog, Target offers direct payments to your school of up to $5,250 per year for undergraduate programs and up to $10,000 per year for a master’s program.
High school completion programs, college preparation courses and English language programs are also covered.
Home Depot’s tuition reimbursem*nt program
Award: Up to 50% of tuition, fees and other approved expenses toward approved courses — and 100% toward select American Heart Association certifications — up to an annual maximum, which depends on employee status.
Eligibility: All part-time and full-time employees are eligible. Approved courses, including associate’s, bachelor’s, master’s and doctoral degree programs and certificates, must begin after your hire date. Also, you must maintain a “C” grade or better (or a “pass” if the course is pass/fail) to qualify.
Hourly and salaried employees can qualify for tuition reimbursem*nt as soon as they’re hired. However, annual limits vary depending on your status:
- Salaried employees: $5,000
- Full-time hourly employees: $3,000
- Part-time hourly employees: $1,500
Home Depot provides criteria for approved courses and certificate programs. To qualify for reimbursem*nt, you must complete the course or certification and submit all the required documentation within 90 days.
Other tuition reimbursem*nt programs from national employers
| Employer | Tuition reimbursem*nt | Key requirement |
|---|---|---|
Up to 100% in prepaid tuition at more than 400 schools in 14 countries, up to an annual maximum (not disclosed) | Must be employed for at least 90 days as an hourly operations associate | |
Up to $5,250 for graduate programs and $3,500 for undergraduate programs annually; select universities and training programs may also qualify for tuition discounts | Must work full-time for at least six months | |
Up to 100% prepaid tuition for more than 300 programs at over 20 schools; other programs qualify for up to $5,250 annually | Must be employed for at least 120 days | |
Up to 100% in reimbursem*nts toward up to two classes per term (and up to two books), with a $5,000 annual maximum | Must maintain a “C” grade or better | |
Up to $3,500 annually and $21,000 overall | Must be employed for at least six months | |
Up to $5,250 annually for management and $2,500 for other employees | Must maintain a performance rating of “significant performance” or better; non-management associates must be employed for at least 90 days and work a minimum of 15 hours per week | |
100% free tuition toward eligible programs and certificates with partner schools and colleges (corporate employees only); discounts for franchise team members | Corporate employees must be employed for at least 60 days and average 10 or more hours per week | |
100% toward a first-time online bachelor’s degree through Arizona State University’s online program (more than 140 program options) | Full-time employees must be employed for at least 60 calendar days; part-time employees must work at least 240 total hours over three consecutive months | |
Up to $5,250 per year and $25,000 in total toward any program or certificate | None | |
100% toward approved degrees and certificate programs | Must not have a prior bachelor’s degree; temporary employees and salaried employees not working in a field facility are ineligible |
Common eligibility criteria for tuition reimbursem*nt
The requirements for tuition reimbursem*nt programs vary significantly by employer. With that said, here are some potential requirements to watch out for:
- Time with the employer: While some tuition reimbursem*nt jobs may offer the benefit on day one, others may require you to work for six months or more before you’re eligible.
- Employee status: Some employers offer equal benefits to both part-time and full-time employees, while others may offer limited assistance to part-timers. You may also need to work a minimum number of hours to qualify.
- Approved courses: Many employers offer assistance or reimbursem*nt for certain programs and certificates. In some cases, there may be no program restrictions.
- Grades: You may need to maintain a minimum grade level or GPA to receive reimbursem*nt or to continue receiving prepaid assistance.
- Continued employment: Some employers may require you to stay with the company for a certain amount of time after you receive your tuition reimbursem*nt benefit. If you leave your position voluntarily, you may be required to repay some or all of the reimbursem*nt.
Pros and cons of jobs with tuition reimbursem*nt
| Pros | Cons |
|---|---|
|
|
If you want to earn a degree or certificate, employer-sponsored tuition reimbursem*nt can make it affordable — some programs will even pay for books and other non-tuition costs. Such programs can also make it easier to move up in the company once you complete your program.
But while tuition reimbursem*nt or assistance may seem like free money, your employer may limit how much you can receive each year and which programs you can pursue. If your benefit exceeds the annual limit set by the IRS, you may also have a big tax bill to pay on excess benefits.
Finally, if your employer requires you to stay with the company for a set period and you want to make a career change, you could feel “locked in” by the tuition reimbursem*nt.
“Ask to see the benefit plan document and clarify anything that is unclear so that there are no surprises,” said Patricia Roberts, chief operating officer at Gift of College.
Other ways to pay for college
- Lower-cost schools: Colleges and universities compete for students on price, either by lowering their tuition or offering financial aid packages — so don’t necessarily attend the first school that accepts you or miss an opportunity to negotiate.
Alternatively, consider enrolling in (or transferring to) a community college to complete your general education requirements before pursuing a major at a university. You might even bypass the traditional four-year college route altogether if attending a trade school or other specialty program leads you to the career you want without ponying up the big bucks. - Scholarships and grants: You may be eligible for federal, state and institutional grants if you exhibit financial need, and scholarships can be available from your school based on need or merit. Also, check out scholarship databases like Scholarships.com and Fastweb to apply for private scholarships and grants.
- Help from parents: If mom and dad can afford it, they might assist with your tuition or other school costs. If not, you could prioritize saving for college on your own.
- Personal income: Whether or not your employer offers tuition reimbursem*nt, you can put the income you earn each month toward your educational expenses. Paid internships and work-study programs could also help.
- Student loans: Federal student loans are typically the most cost-effective form of borrowing (as a last resort), and most students won’t need to undergo a credit check. If you’ve exhausted your federal loan eligibility, private student loans can help. However, they can be difficult to obtain without a cosigner and generally have higher interest rates and fewer repayment protections.
Frequently asked questions (FAQs)
It depends. While some employers may require you to work for a set timespan after receiving your benefit, others may not.
In many cases, employers may limit your options to programs related to your field of work or career options with the company. However, some tuition reimbursem*nt jobs may give you more leeway to choose which direction you want to go.
Many tuition reimbursem*nt programs require you to maintain a certain grade level to qualify for assistance. If you fail or drop out, you may be ineligible for assistance.
Yes, many employers offer tuition assistance and reimbursem*nt for online and in-person courses.
Employers may not cover all of your educational expenses, so you may still be on the hook for books, supplies and other costs. Also, if your employer provides more than the $5,250 tax-free limit set by the IRS, you may owe taxes on the additional amount.
Finally, if your employer’s tuition reimbursem*nt program limits which programs you can pursue or requires you to stay with the company after receiving the benefit, that could limit your career options.
