An adult student employee

Tuition Reimbursement

There are many ways to save money when pursuing a college education, and tuition reimbursement is one that you should not overlook. While roughly 90% of midsize and large employers offer some kind of tuition assistance, less than 10% of employees take advantage of this benefit.*

If you are currently employed and you are interested in taking college courses or pursuing a degree in order to advance your career, be sure to check with your company’s human resources department to find out if tuition reimbursement is an option for you.

Tuition Reimbursement Process

The process and specifics of this benefit differ from one employer to the next. Generally speaking, however, tuition reimbursement usually involves your employer reimbursing you for a defined amount of the educational expenses you encounter when pursuing continuing education courses and/or a college degree.

Often, there are specific employer guidelines that you need to meet in order to receive this benefit. For example:

  • Your employer might require you to earn a minimum grade or maintain a minimum GPA in your coursework before reimbursing you.
  • Your employer might limit approval of the courses or degree you enroll in to ensure that the education you are pursuing is related to your job or is required for you to receive a promotion at your company.
  • Your employer might require you to remain at your company for a set amount of time after you receive tuition reimbursement benefits.

Tuition Reimbursement Tax Considerations

Tuition reimbursement provides a tax benefit for employers. According to the IRS’s Fringe Benefits Guide (2020), employers can offer employees $5,250 of educational assistance tax-free each year.

Employees can also deduct this amount as tax-free income that is being used for educational purposes. If you receive tuition reimbursement in excess of the tax-free amount defined by the IRS each year, however, it’s important to note that this money will be considered taxable income.

A Win-Win Benefit

As a benefit offered by employers, tuition reimbursement is likely to endure, as it is win-win for both employers and employees. Offering financial support for educational pursuits helps employers recruit and retain employees, while also enabling employees to build new skills, expand their knowledge and realize their full career potential.

Area Companies That Offer Tuition Reimbursement

Many different types and sizes of organizations offer tuition reimbursement as a benefit to employees. Some that are based near UMass Lowell include:
  • 3Play Media
  • Agero + Swoop
  • Akamai Technologies
  • Alteryx, Inc.
  • Analog Devices
  • Anvil International
  • Aqueduct Technologies Inc
  • Arista Networks
  • AT&T
  • athenahealth
  • Attivio
  • Aurora Flight Sciences
  • Bae Systems
  • Bain & Company
  • Bank of America
  • Biogen IDEC
  • Blue Cross Blue Shield of Massachusetts
  • Bose Corporation
  • Boston Consulting Group
  • Boston Scientific Corporation
  • Bright Horizon
  • C&S Wholesale Grocers
  • CA Technologies
  • CAMP Systems International
  • CarGurus
  • Chipotle
  • Cignifi Inc
  • Clarasys
  • Cognitec Systems Corporation
  • Cogo Labs
  • Comcast
  • Connective DX
  • CrunchTime!
  • CyberArk
  • Dell Technologies
  • Digital Innovation Hub
  • Dispatch
  • DraftKings
  • Duck Creek Technologies
  • Eagle Investment Systems
  • edX
  • Endeavor Robotics
  • Federal Reserve Bank of Boston
  • Fidelity
  • General Electric
  • Greensea Systems, Inc
  • Havard Pilgrim Health Care
  • Hitchiner Manufacturing
  • Hopjump
  • HR4You
  • Humana Studio_h
  • IBM
  • Imprivata
  • Insource Services
  • InterSystems
  • iptiQ
  • Iron Mountain
  • iZotope
  • Jebbit
  • JVS Boston
  • Kensho Technologies
  • Klaviyo
  • Kronos
  • Liberty Mutual
  • LogicManager
  • MachineMetrics, Inc.
  • MassMutual
  • MathWorks
  • McDonald's
  • Mercury Systems
  • Mimecast
  • MineralTree
  • NESN
  • Nuance
  • OneView Commerce
  • Oracle
  • Panalgo (formerly BHE)
  • Parexel
  • Paytronix
  • PC Connection
  • Peapod Digital Labs
  • PegaSystems
  • Pepsi Bottlers
  • Pfizer
  • Piaggio Fast Forward
  • PlacePass
  • Pluralsight
  • Precision Systems
  • Progress
  • Quick Base
  • Raytheon
  • Rogue Wave Computer
  • Santander Bank
  • Schneider Electric
  • Skillsoft
  • Skyworks Solutions
  • SmartSense by Digi
  • Sovos
  • SS&C Intralinks
  • Starbucks
  • State Street
  • Takeoff Technologies
  • The Enterprise
  • The Predictve Index
  • Thermo Fisher Scientific
  • TiVo
  • TJX Companies
  • Tvision
  • UPS
  • Upserve
  • Upstatement
  • Verizon
  • Virtusa
  • Vmware
  • Walmart
  • Wayfair
  • Wells Fargo
  • WordStream
  • Workhuman

Don't see your company listed here? Ask your HR department about partnering with UMass Lowell.

*The Wall Street Journal, "Companies Help Employees Pay Tuition—but Few Accept the Offer," June 10, 2018.