What to Know About Tuition Assistance When Working Part Time

On a typical weeknight, Julianne Hummel goes to work at 1 a.m. for a four-hour shift at the UPS Air cargo hub in Louisville, Kentucky — she works part time to qualify for the company’s tuition benefit.

“UPS covers 100 percent of tuition for me,” says the 19-year-old, who works at the company’s Worldport for around 20 hours a week. Through the Metropolitan College/UPS program, Hummel attends the University of Louisville tuition-free.

The education major says she almost attended the University of Kentucky but decided against it because of the cost. As college approached, she decided to give the UPS Inc. program a shot.

“My schedule is a little different, but I’m still able to do all the normal things students do,” says the debt-free sophomore, who plans to continue with the program up until her final semester during her senior year when she has to teach for the term.

Experts say companies use tuition programs as a retention tool. Before UPS Inc. launched its Metropolitan College program in 1998, the typical employee retention was around two months, says Mike Mangeot, a spokesman for UPS Air. Now the employee retention can be as long as four years when the individual completes the tuition-aid program, he says.

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In fact, more than half of companies surveyed in a Society for Human Resource Management report responded that they offered some type of tuition benefit to retain employees. Around 34 percent of companies surveyed offer an education program to hourly workers, according to the report.

The number of tuition programs among companies for hourly, part-time workers continues to grow, experts say. While some are more generous compared with others, they share a few similarities. Here are four common traits of employer-offered tuition programs for part-time workers.

1. Companies typically partner with an institution — usually one with online classes. Fast-food chain White Castle, for example, offers a 10 percent tuition discount to its employees who enroll in a degree offered through Indiana Wesleyan University–National & Global, which offers classes online and through 15 on-site education centers in Kentucky, Ohio and Indiana.

Starbucks is another company that partnered with an online university: ASU Online at Arizona State University. The company’s tuition-assistance program, known as the Starbucks College Achievement Plan, covers 42 percent of tuition; online degree courses at ASU cost between $490 and $633 per credit.

2. Most employers require employees to work at least 20 hours a week. Starbucks — and other companies — require employees to work a minimum of 20 hours weekly to qualify for the tuition program.

At Amazon.com Inc., part-time workers who work more than 20 hours per week are eligible for the company’s Career Choice program. The program pays up to $6,000 over four years for a part-time employee to earn an associate degree or vocational certification.

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3. These programs have either a set discount rate or an annual cap. For non-Louisville-based UPS Inc. employees, the company offers the Earn and Learn program. This opportunity allows workers, such as part-time package handlers, to earn up to $5,250 in tuition assistance per year with a lifetime maximum of $25,000.

Denver-based Chipotle also offers its part-time employees up to $5,250 annually.

But some companies offer less tuition assistance per year. Publix, a large, national supermarket chain, caps its tuition assistance at $3,200 per calendar year, with a $12,800 maximum. And a caveat for these employees: Only 15 college majors are preapproved for tuition reimbursement.

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4. These programs often cover education-related expenses. Under the UPS Inc. Metro College program, employees are reimbursed up to $65 per course for required books or software each term. Similar to other tuition assistance programs, Amazon’s Career Choice also offers money for other education-related expenses.

“The Career Choice program is very helpful because Amazon prepays the tuition costs and also helps with related fees and especially the books. The books are really expensive,” says Robin Speed, of Hebron, Kentucky, who works part time at Amazon to help pay for her nursing studies.

The 46-year-old who attends the Northern University of Kentucky adds that she chose to work at Amazon, in part, because of its tuition-assistance program. “I was looking specifically for part-time work that would fit my personal schedule and still allow me to go to school, so I could pursue my dream of becoming a nurse.”

Trying to fund your education? Get tips and more in the U.S. News Paying for College center.

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What to Know About Tuition Assistance When Working Part Time originally appeared on usnews.com

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