A $9-an-hour job flipping burgers or making coffee drinks can help some students pay for college. Many fast-food giants are now going beyond boosting wages to retain employees, enticing workers with tuition benefits.
Starbucks, one of the first to offer a tuition assistance plan to its hourly workers, launched its initial program in June 2014, partnering with Arizona State University for its employees to earn an undergraduate degree online.
Jessica Andrews, who has worked as a barista and shift supervisor at a Starbucks location in Seattle for three years, finished her online bachelor’s degree from Arizona State University in December through the company’s tuition assistance plan.
“I was going to have to apply for student loans, which I didn’t want to do,” says Andrews, who was already taking online classes at ASU. “I was thinking of taking time off and just saving for college. Then, the Starbucks College Achievement Plan was announced and it became an easier to decision for me.”
Since Starbucks began its tuition assistance program, many fast food companies have launched similar programs to retain and recruit hourly workers.
“Yum! Brands, TGI Friday’s and Arby’s are just some of the many restaurants offering tuition assistance, and this is definitely something we’ll be seeing more of in the future,” says Christin Fernandez, a spokesperson for the National Restaurant Association.
Most fast-food chains offer hourly employees some form of financial support for colleges through scholarships, such as Burger King’s scholars program or Taco Bell’s Live Más Scholarship. A small, but growing number of fast food companies, now offer tuition assistance programs.
Find ways to [turn summer jobs into scholarship opportunities.]
“It is a good benefit if you’re already a worker for Starbucks or Pizza Hut to get some amount of higher education reimbursement,” says Rachel Fishman, a senior policy analyst on education policy at New America, a public policy institute based in Washington, D.C.
Here are four fast food restaurants that offer some form of tuition benefit to hourly workers.
Starbucks
Tuition assistance: The Seattle-based coffee chain offers full tuition at ASU’s online program, giving its hourly employees an opportunity to earn an undergraduate degree. Under the partnership plan with ASU, Starbucks reimburses its employees’ tuition costs after the end of each semester. The value of this tuition assistance is around $47,040 — the estimated cost of attending ASU’s online program full-time for four years.
Eligibility: A Starbucks hourly employee who works an average of 20 hours a week at any company-operated store is eligible from day one of employment.
Participation: Starbucks plans to spend more than $250 million dollars to help 25,000 graduates over the next 10 years. Since the company introduced the program, 44 participating employees have graduated and more than 5,000 of its employees are enrolled in the program.
McDonald’s
Tuition assistance: The Golden Arches gives $700 a year to hourly paid restaurant workers, and up to $1,050 to restaurant managers. The company’s Archways to Opportunity tuition program can be used for either an on-campus or online class.
Eligibility: The employee needs to work as least 20 hours a week and have been at McDonald’s for at least a year before being able to cash in on this tuition benefit.
Participation: The assistance, while small, can cover the cost of two classes a year for hourly workers, and three for restaurant managers. The average cost of a community college class costs ranges between $300 to $400 at different community colleges around the country. The program, which began in July 2015, is available to shift workers and restaurant managers at both McDonald’s company-owned restaurants as well as its 3,100 franchise locations. The move is intending to skill-up McDonald’s internal workforce, said Mike Andres, McDonald’s U.S. president, in a press statement.
Try convincing an employer to [pay for an online degree.]
Chipotle Mexican Grill
Tuition assistance: The fast food chain known for its Mission-style burritos reimburses its employee’s tuition up to the IRS’s limit of $5,250. Employees can reimburse classes from accredited two- or four-year institutions or from a technology or vocational school.
Eligibility: Salaried employees and hourly managers at Chipotle are eligible right away; hourly crew members must wait at least a year. Employees must maintain at least a “C” average to qualify and provide course descriptions and grades to receive reimbursement.
Participation: The Denver-based chain announced expanding its tuition assistance program, previously just offered to salaried employees, to hourly workers in July 2015. “Participation in this program has exceeded our expectations since launching this benefit last year,” said Chris Arnold, a company spokesman.
Pizza Hut
Tuition assistance: Pizza Hut, owned by Yum! Brands, offers the Life Unboxed EDU tuition reimbursement program to its hourly employees. The pizza chain offers a discount at a reduced rate at Excelsior College of 45 percent off undergraduate tuition and 15 percent off graduate programs at its New York-based partner college. For an employee attending part-time for a bachelor’s degree, the program slashes the tuition and fees from $5,880 to $3,234, according to Excelsior’s net tuition calculator.
Eligibility: The benefit is extended to all Pizza Hut employees and their immediate family members. Employees must work at least 60 days to qualify.
Participation: Pizza Hut’s Life Unboxed Edu launched in December 2015 and has around 99 employees enrolled. Participants include hourly workers and regional coaches — mostly mature students in their mid-20s and early 30s, says Pizza Hut’s spokesman Doug Terfehr.
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.
More from U.S. News
Ask Your Company to Help Pay for College
Get Tips and Advice on Paying for College
What to Know About Employer Tuition Benefits for College
4 Fast Food Jobs That Pay for College originally appeared on usnews.com
