How to Graduate College Debt Free – Part 5. Tuition Reimbursement

So far we’ve discussed a lot of ways to beat the student loan game through scholarships, CLEP tests, AP programs and community colleges. Today we’re getting in to a bit more of an unconventional opportunity.

This is a part of a multi-post series on graduating college debt free. Check out the other posts below:

What is Tuition Reimbursement?

Tuition reimbursement is when a company is willing to either pay for tuition (and other costs) up front or reimburse you once you’ve shown proof of passing the class.

Most people who work for major corporations in corporate roles already have access to these programs for continuing education. Unfortunately, these individuals (like myself) are the people least likely to need that assistance. I’ve used it take college courses toward my CPA, reimbursement for CFA expenses, and some adhoc classes I wanted. I didn’t need the help but it was a much appreciated benefit.

These types of benefits are rarely available to hourly employees who don’t already have a college degree and could use that help the most, but that is starting to change.

Time Lag

Before we get in to what companies and positions do offer these benefits to hourly employees, let’s talk about an important point that may come up. What do you do if you don’t have the money to pay up front to be reimbursed later?

Well, the simplest thing would be save up first, then take the class. If that’s not feasible is there someone (family / friends?) that can loan you the money. If that’s not an option, my last suggestion would be hated by many in the personal finance category. Get a credit card with zero percent interest for a minimum of 6 months. Most classes take 3 months to take. So even assuming you have to pay early and wait late for grades, you should be fully reimbursed (assuming you pass) before you pay more than a few dollars.

Options

So how do we crack the chicken and the egg of getting access to a corporate reimbursement program prior to having the type of degree that would give you access? I think there are 2 ways.

Entry Level Corporate Gigs

I think what I’m about to tell you is gold because I’ve never in my life heard anyone give this strategy anywhere and the answer is simple. Find the tiny number of roles that these corporations offer and find a way in. The easiest and most common position of this nature would be an administrative or executive assistant. Every company has these at their headquarters and they are typically given identical benefits.

That means if you are a high school graduate, you can get a foot in the door as an admin, allow the company to pay for your entire college degree. You will then have the optionality to move up in the corporation your already in or move on with a degree and a solid work history. This is the last remaining backdoor that I know of that is similar to the “came up through the mail room” stories of an earlier era.

Other positions of this nature might be clerks or other lower level roles in payroll, accounting, etc… Look for that loophole.

Hourly Generous Employers

There’s a very positive trend among hourly employers providing tuition reimbursement. This is easier and more straightforward if you know where to look, but policies are going to vary widely and likely not be near as generous as the first option.

Who Reimburses Hourly Employees?

I’m sure many of you have recently seen the announcement by Starbucks to reimburse employees. I think this is a great program that will give the more ambitious but less fortunate among us an opportunity at a clear path to a better life.

Starbucks employees can earn a college degree from Arizona State University at no cost through the company’s reimbursement program. (FAQ here)
Athem – 55,000 full and part-time workers free tuition towards an associate’s or bachelor’s degree through College for America at Southern New Hampshire University.
Chrysler Part-time and full-time employees who have worked at a dealership for 30 days are eligible to enroll in an associate’s, bachelor’s, or master’s degree program in 40 degree categories at Strayer University, a 123-year-old for-profit college based in Virginia. FCA and its dealerships cover the cost of employees’ courses upfront.
Chipotle will now offer full tuition reimbursement to hourly employees.
UPS will pay up to $20,000 for employees pursuing their degree. UPS employees can take advantage of the program as soon as they start working for the company.
Apple offers tuition reimbursement up to $5,000.
AT&T offers tuition reimbursement up to $5,250 for full-time employees. They can be reimbursed up to $20,000 for courses leading to an undergraduate degree.
Bank of America offers tuition reimbursement up to $5,250 for job-related courses or to fulfill a job-related degree program.
Disney has a tuition assistance program that provides employees up to $700 per credit unit, 100% reimbursement for their books, and up to $100 per course for the cost of materials.
Verizon Wireless has a tuition assistance program, LearningLink, which offers up to $8,000 a year for full-time employees and $4,000 for part-time.
Wells Fargo provides up to $5,000 a year for eligible tuition expenses.

For more companies see Business Insider List.

This is a part of a multi-post series on graduating college debt free. Check out the other posts below:

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What is Tuition Reimbursement?

Time Lag

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Who Reimburses Hourly Employees?

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