Solving the Need for Tuition Program Management

Tuition program management is one of the best gifts an organization can give to its workers. It is no news that the cost of education keeps rising and graduates are faced with the challenge of paying off huge student loans.

Employees struggle to find affordable opportunities to continue their education, develop new skills, and remain relevant in their respective fields of work. Learn how tuition program management can help.

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FAQs about Tuition Management Programs

What is the difference between tuition assistance and tuition reimbursement?

Tuition reimbursement requires the employee to pay tuition up front. On successful completion of the selected course, the employee is reimbursed for a part of the tuition, usually up to $5,250 per year.

With tuition assistance, the organization fronts the tuition costs, saving the employee from any out-of-pocket expenses

 

Can an employee's tuition payment program be withdrawn?

Yes! Tuition program management benefits are offered to employees with the primary purpose of retaining them for skills acquired. Employees who want to use the new skills to get jobs elsewhere will have their tuition plans withdrawn.

How much of an employee's student loan can be paid off?

According to section 127 of the federal tax code, employers can contribute a maximum of $5,250 per year toward each employee’s student loan debt incurred for tuition and education-related expenses such as fees and books.

The Value of Tuition Program Management

Today, employers are looking for employees with a wide variety of skills. Tuition management programs can help ensure that employees build the necessary skills which, in turn, benefits employers.

Tuition program management comes in many forms:  employee tuition reimbursement, employee tuition assistance, and repayment of student loans for employees. This type of benefit can increase employee loyalty — and Bright Horizons can help organizations with implementation. We offer workforce education programs through Bright Horizons EdAssist Solutions® that are designed to meet both the needs of organizations and their employees. With over 30 years of experience, Bright Horizons is an industry leader in education benefits. We currently oversee approximately $1 billion in annual tuition reimbursements for hundreds of employers across the country. Additionally, we deliver a variety of other helpful benefits — including on-site childcare, back-up care, and educational advisory services for over 1,100 clients worldwide. 

FORMS OF TUITION PROGRAM MANAGEMENT 

  1. Employee tuition reimbursement - through this form of tuition management, an organization provides employees with funds they can use to further their education. Employees often pay tuition up front, knowing their organization will refund a certain amount of the cost incurred upon course completion.
  2. Employee tuition assistance - unlike tuition reimbursement, the employer pays for the cost of education from the onset, with no out-of-pocket responsibility for employees. 
  3. Repayment of student loans - through student loan repayment, organizations contribute money toward employees’ student loans. This can help lessen the financial burden employees feel, and, therefore, increase employee wellbeing, loyalty, and productivity.

BENEFITS OF TUITION PROGRAM MANAGEMENT 

Tuition program management helps organizations attract top talent. Studies show that employees have a higher affinity for organizations that offer tuition assistance management services and are generally more likely to be committed to their jobs. Plus, tuition program management boosts skill development in your workforce, therefore increasing employees’ quality of work.

Another advantage worth noting is tax savings — both employers and employees benefit from it.  Employee education assistance programs are tax-free for employers; for employees, tuition-related expenses are usually tax-deductible up to $5,250 per annum. Bright Horizons EdAssist Solutions ensures that both employers and employees benefit financially from tuition program management.

In addition to the above-listed advantages, tuition program management helps reduce the cost of employee recruitment. As stated earlier, workers who enjoy tuition benefits stay with their organizations longer — and the cost of training and recruiting new employees is avoided. Organizations that invest in tuition reimbursement or assistance see increased ROI as a result.

According to dw.com, the current outstanding federal student debts in the U.S. total about $1.6 trillion. Private loans total an additional $123 billion, according to academic data collector MeasureOne. And student debt is increasing each year. For 43 million borrowers, monthly student loan payments can be a huge financial burden. Assisting in the repayment of student loans for employees can be a tremendous help. 

Bright Horizons’ Tuition Management Programs

Bright Horizons can help you implement a robust, successful tuition management program for your employees. We provide:

  • Management of employee applications to ensure they align with program guidelines
  • Tuition payment vouchers to qualified employees
  • Up-to-date reports to monitor program effectiveness
  • Excellent customer service
  • Appropriate program documentation from start to finish to lessen the burden of tuition paperwork
  • Guidance that matches employees to the best-fit programs, from certificates to MBAs
  • Support for the diverse learning needs of all employees, from those on the frontlines to executives
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Explore Solutions For Your Employees

Fortune’s “100 Best” companies trust Bright Horizons to help their teams: find out how we can help yours.

Or call us to start the conversation 800-453-9383

Bright Horizons is a United States–based child-care provider and is the largest provider of employer-sponsored child care. Employees looking to become a child care teacher are offered the opportunity to earn an early education degree for free as part of their corporate benefits. Search by zip to find a child care center near you. Bright Horizons Global Headquarters are in Newton, Massachusetts, USA.