Effective Tuition Reimbursement


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StraighterLine describes how its program can greatly benefit corporate tuition reimbursement programs. For more information visit: http://straighterline.com/

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Effective Tuition Reimbursement

  1. 1. Effective Tuition Reimbursement A new way to offer more support to your employees, gain faster benefits for your company, and cut costs!
  2. 2. Why Help With College? <ul><li>Company Support for Education Can </li></ul><ul><ul><li>Recruit new employees </li></ul></ul><ul><ul><li>Retain good employees </li></ul></ul><ul><ul><li>Support company growth </li></ul></ul>
  3. 3. Recruitment <ul><li>A dedicated educational component fits well with the overall benefits package that a company uses to entice new employees </li></ul><ul><li>It indicates that the company is interested in encouraging personal development interests </li></ul>
  4. 4. Employee Retention <ul><li>A higher education degree takes time to achieve </li></ul><ul><li>Employees become reliant upon the benefit and will seek to keep that benefit available </li></ul>
  5. 5. Supporting Company Growth <ul><li>As employees earn a degree, the new knowledge gained feeds back into the company by </li></ul><ul><ul><li>Increasing job performance in a current role </li></ul></ul><ul><ul><li>Providing the company solutions to filling new positions internally </li></ul></ul><ul><ul><li>Presenting clients with a more polished support team </li></ul></ul>
  6. 6. Challenges to Providing Educational Benefits <ul><li>Tuition Costs </li></ul><ul><li>Time </li></ul><ul><li>Return on Investment </li></ul>
  7. 7. Tuition Costs <ul><li>Cost vary greatly,CAEL (The Council for Adult and Experiential Learning) released a study entitled: </li></ul><ul><li>The Market Price of Tuition (November 2007) </li></ul><ul><ul><li>Suggested tuition rates included: </li></ul></ul><ul><ul><ul><li>Associate’s degrees average: $253 per credit hour </li></ul></ul></ul><ul><ul><ul><li>Bachelor’s degree average: $319 per credit hour </li></ul></ul></ul>
  8. 8. Tuition Costs (Con’t) <ul><li>Per course costs roughly translate to: </li></ul><ul><ul><li>$759 per 3 credit associate’s degree course </li></ul></ul><ul><ul><li>$957 per 3 credit bachelor’s degree course </li></ul></ul><ul><li>The IRS tax limit on employee tuition reimbursement is: </li></ul><ul><ul><li>$5,250 tax-free annually </li></ul></ul><ul><ul><li>Allows coverage for approximately 5.5 courses in a bachelor’s degree program per year </li></ul></ul>
  9. 9. Time <ul><li>An employee taking 5.5 courses per year will need approximately: </li></ul><ul><ul><li>7+ years to complete a bachelor’s degree </li></ul></ul>
  10. 10. Return on Investment <ul><li>While a 7+ year path to a bachelor’s degree may seem to be a benefit to employee retention, the unrealistic program length can </li></ul><ul><ul><li>Reduce the appeal of the program </li></ul></ul><ul><ul><ul><li>Yielding less interest, less adoption, less appeal as a benefit </li></ul></ul></ul><ul><ul><li>Lead to fewer successful degree earners </li></ul></ul><ul><ul><ul><li>Yielding lower return on the company’s educational investment </li></ul></ul></ul>
  11. 11. How Can You Maximize Educational Investment? <ul><li>There are two primary steps </li></ul><ul><ul><li>Find a balance between the completion times and retention needs </li></ul></ul><ul><ul><li>Search for programs that reduce the market price of tuition </li></ul></ul>
  12. 12. Seek Balance <ul><li>Bachelor’s degree seekers still view the degree as a four year program </li></ul><ul><ul><li>Seek to offer employees ways to help them manage work, home, and education in a way that holds this standard as achievable </li></ul></ul><ul><ul><ul><li>KEY CONCEPT: Flexible Course Schedules Help! </li></ul></ul></ul><ul><ul><ul><li>KEY CONCEPT: Online Programs Are Flexible! </li></ul></ul></ul>
  13. 13. Reduce Tuition Costs <ul><li>Lower tuition prices allow for more courses per year </li></ul><ul><li>Completing a bachelor’s degree in 4 years requires at least 10 courses per year </li></ul><ul><ul><li>KEY CONCEPT: Lower Tuition = More Courses! </li></ul></ul><ul><ul><li>KEY CONCEPT: Approve programs with tuition rates below $525 per course! </li></ul></ul>
  14. 14. Program Comparisons
  15. 15. Final Analysis <ul><li>Programs like StraighterLine can reduce benefits costs up to $42,000 when run-out across the entirety of a bachelor’s degree program </li></ul><ul><li>They can also bring the skills learned back to the work place 2.75 time faster </li></ul>
  16. 16. Thank You! Ryan T. Busch | Director of StraighterLine 1900 L. Street NW | Suite 301 | Washington | DC | 20036 P: (202) 507-7020 ext. 615 | M: (602) 486-7110 | F: (202) 543-5589 [email_address] | 1-877-Str8erLine (1-877-787-8375) LinkedIn Profile: http://www.linkedin.com/in/ryanbusch