Employee Tuition Programs for Obtaining Your MBA

While many people mistakenly believe that an MBA applies only to business, the degree can actually give you a wide variety of people skills and knowledge which can be  adapted to education, medicine, government and even non-profits. If you are able to connect the skills required for your present job to an MBA education, you may be able to have at least a portion of your educational expenses covered by your employer. This can make attending or returning to school a much more realistic proposition, however unless your employer already has a tuition reimbursement program in place you may be required to do some heavy-duty persuading. As with much of life, few things come without a price tag, and if your employer pays for your education, it is likely you will be required to continue to work in the organization for a period of time, putting your newly obtained knowledge and skills to work for the exclusive benefit of your current employer.

Why Your Employer Might Actually Want to Pay Your Tuition

Remember that your employer has a vested interest in your having the necessary knowledge and skills that will not only help you succeed at work but will benefit the company as well. Employers are also aware that you will be much more likely to stick with the company if they are funding your education, leading to a higher level of employee and employer loyalty and overall satisfaction. If your MBA degree benefits your employer in some way—and you should think long and hard about this as you may be required to explain those benefits—then your employer will certainly reap the rewards of your education. Education can be the key to on-the-job success, and a certain amount of employers are well-aware of this. Of course the cost of employee tuition can be prohibitive to many smaller businesses who might believe in further education, however simply can’t afford it.

Do Your Research

Just because a company says it believes in personal development, don’t take this as an offer for tuition reimbursement until you have done your research and ascertained the realistic capabilities of your particular organization. Should your company already participate in employer tuition reimbursement, be aware that most companies base the amount of reimbursement on your grades; if you earn a grade below a B, many companies won’t pay. While some companies may pay for your tuition at the time of your registration, others will reimburse the costs only after you have successfully completed all the coursework—again, with a grade no less than a B. When researching your own company’s policy, find out about the timing of reimbursement as this could make a difference in the number of classes you take at a time. Also, because tuition reimbursement is such an expensive benefit, some companies will withhold payments for up to a year—this also ensures you can prove yourself on the job, and that you don’t leave as soon as you receive your new MBA degree. While many company policies will state that reimbursable coursework must be “work-related,” if you are a bit creative, you can make your MBA relate to most all types of work.

How to Discuss Tuition Reimbursement With Your Employer

If your present company already has a tuition reimbursement program, speak with human resources to find out the details. If your company does not have a tuition reimbursement program, you have your work cut out for you! Before speaking with your employer, consider how your MBA education will benefit the company, and how your new skills will make you more productive at work. Make a solid list of these things as well as how you will be able to take on additional assignments, becoming a future leader in your workplace. This is not a time for modesty on your part; once you have detailed all the reasons your employer should fund your MBA, don’t forget to remind your employer how your future MBA degree can improve the company’s professional image. Anticipate your employer’s probable objections, and have ready answers. If your employer expresses concern that your studies will take precious time away from work explain how online classes can be completed in your free time. If your employer objects strictly to the cost, explain that paying your tuition costs could be much less expensive than hiring a new employee with the degree you are working on, and how your degree will ultimately make the company money. Finally, point out to your employer that paying for your tuition guarantees your company a loyal, hardworking, better-educated employee for years to come.

Signing a Contract

Once you have gotten to the point of signing a contract with your employer for tuition reimbursement—lucky you! After patting yourself on the back, however, don’t forget to read the fine print of your contract. Go over it carefully, and talk to your employer about any parts that seem unclear or raise a red flag. Don’t sign a contract which forces you to meet unrealistic terms, or stay with the company for an unreasonable amount of time—although you will likely have to commit to a certain amount of time with your company. Ask how your tuition will be refunded, whether directly, deducted from your paycheck, or reimbursed up to a year later. See what academic standards must be met in order for you to remain eligible for tuition reimbursement such as what the required GPA is, and what happens if you fail to make the grade. Find out how long you must remain with the company as well as what happens if you decide to leave before your contract is up. If, for some reason such as health problems or family issues, you are prohibited from completing your degree, find out if you will be required to pay for the classes you’ve already taken. If you are uncomfortable with the contract for any reason, have an attorney look it over before signing. You don’t want to be locked into something you will later find untenable.

Tax Benefits

Beyond helping you further your education, you may also be able for some tax benefits regarding your tuition reimbursement.  While tuition reimbursement was once treated as taxable income, it is now considered tax-free, and is good for up to $5,250 of annual employer-provided tuition reimbursement expenses, both at the undergraduate and graduate level. Check out the IRS’s page on Educational Expenses to find out more about the tax benefits of tuition reimbursement as well as your specific eligibility.