Tuition Reimbursement Policy

Purpose

To support employees who pursue job-related education by reimbursing eligible tuition, registration, laboratory, and graduation fees — helping them build skills for their current role, prepare for future responsibilities, and remain competitive in a changing business environment.

Eligibility

• Open to active, regular full-time employees (salaried or hourly). Part-time and seasonal employees are generally not eligible unless the company chooses to extend coverage.
• The course must begin after the employee's start date, and the employee must be actively employed when the course begins and ends.
• Classes must be attended outside of regular working hours.
• Not eligible for courses beginning after a short-term or long-term disability leave, or another leave of absence, begins — unless extenuating circumstances apply.
• Participation is not limited by department budget — no employee may be turned down for budget reasons.

Outside funding first

Employees eligible for educational benefits through veterans', government, or privately funded programs must exhaust those sources before this plan applies.

What is covered

• Courses offered by a school, college, or university accredited by a recognized accrediting agency.
• Courses that are part of a degree program and related to the employee's current job duties, business objectives, or reasonably anticipated future responsibilities. Managers review applications for job-relatedness; HR can help with career guidance to ensure programs align with business needs.
• Required or elective courses within an approved degree program, even where a particular course is not itself job-related.
• Remedial literacy, basic-skills, and GED programs.
• Evaluation of prior learning for college credit (for example, CLEP-style exams), reimbursed under the same terms as coursework.
• Review courses and exam fees for a job-related professional certification (for example, a licensed engineer or accountant designation) — reimbursed once per certification, after successfully passing; re-examination fees are not covered.
• Graduate admissions testing fees (for example, GRE- or GMAT-style exams) and associated review courses, reimbursed after the employee is accepted into a degree program and completes the first semester.
• Non-traditional study (correspondence, at-home, or online) where the employee cannot attend regularly scheduled classes for personal reasons, or where the job-related degree is only available that way — provided the program is accredited (including recognized distance-learning accreditors) and meets all other requirements.

What is not covered

• Non-degree courses (these may be treated as a separate employee-development expense).
• Executive MBA or similar executive-education programs — handled separately between employee and manager.
• Courses involving sports or games, unless required for the degree with no alternative course available.
• Late fees or any cost other than tuition, registration, lab, and graduation fees.

Credit-hour limit

Coverage is generally capped at six credit hours per semester (regardless of how many semesters run in a year) so coursework does not interfere with job performance, while still letting the employee make steady progress and balance work, school, and personal life. Exceptions require approval from the employee's manager and that manager's manager.

Reimbursement amount

• Reimbursement is tied to the grade earned: full reimbursement for a strong passing grade (for example, A/B/C on a traditional scale), no reimbursement for a failing grade or a withdrawal. Pass/fail courses are generally not eligible; non-traditional grading (e.g., satisfactory/unsatisfactory) should only be used where traditional A–F grading isn't offered.
• Reimbursements are paid directly to the employee; the employee is solely responsible for paying the school.
• Company-initiated relocation: if a course can't be completed because the company relocated the employee or for other business reasons, reimbursement of the incomplete course requires manager and next-level-manager approval.

Tax treatment

Under IRC Section 127, employer-provided educational assistance is generally tax-free to the employee up to the annual statutory limit ($5,250 for 2025 and 2026; under the One Big Beautiful Bill Act, this limit is indexed for inflation for taxable years after 2026, so confirm the current-year figure rather than assuming $5,250 continues indefinitely). Amounts above the limit may be taxable unless they separately qualify as a working-condition fringe benefit. Any required taxes are the employee's responsibility and are not grossed up by the company.

Section 127 also covers employer payments of principal or interest on an employee's qualified education loans, combined with other educational assistance under the same annual limit. This student-loan-repayment coverage was temporary when first enacted but has since been made a permanent feature of Section 127 (no scheduled expiration). Confirm current limits and treatment with payroll/tax before communicating this to employees.

Repayment agreement

Employees may be required to sign a repayment agreement with each reimbursement request: if the employee voluntarily resigns within a defined period (for example, 12 months) after a reimbursement, they agree to repay the reimbursed amount in full. If the employee remains employed beyond that period, the obligation lapses. At separation, confirm whether any repayment is owed before final pay is issued.// Repayment-agreement enforceability and required notice/consideration vary by state — confirm terms and mechanics with counsel before use.

Tuition deferment (optional)

Where a school offers tuition deferment instead of requiring up-front payment, the company may issue the employee a signed certification (in lieu of the school's own certification form) confirming participation and expected reimbursement upon successful completion. The company does not co-sign promissory notes with the school, and is not responsible for any interest or late fees the employee incurs under a deferral arrangement. Where a deferred-payment invoice (rather than a paid receipt) is submitted at term's end, it requires manager and next-level-manager approval.

Procedure

1. Apply before enrolling. Submit the course, school, and cost, along with the job-related rationale, for manager approval.
2. Manager reviews and signs, confirming the request meets plan guidelines, and returns the form to the employee.
3. Complete the course. After receiving grades, submit to the manager:

• an itemized receipt from the school (canceled checks and card receipts are not acceptable in place of a receipt);
• a grade report or other proof of successful completion;
• a signed repayment agreement, if required.

1. Manager approves and forwards the request, with receipt, to HR/payroll for processing.
2. HR/payroll processes the approved reimbursement and retains the repayment agreement in the employee's file.
3. Employees are encouraged to update HR and their internal résumé with completed degrees or credentials; managers are encouraged to recognize completed degree programs (for example, in a team meeting or newsletter).

Responsibilities

Role	Responsibility
Employee	Follows plan guidelines and procedures; submits required documentation; keeps HR informed of educational achievements.
Manager	Reviews and approves requests for job-relatedness and plan compliance; consults HR before approving exceptions; budgets for tuition reimbursement; confirms at separation whether repayment is owed.
Human Resources	Maintains plan guidelines and advises managers on exceptions; provides career guidance on job-related programs; retains repayment agreements.
Finance/Payroll	Processes approved reimbursements.