tuition benefit programs another form of financial aid?
DESCRIPTION
The following is a presentation prepared for EASFAA’s 2010 Conference in Mashantucket, CT May 16-19, 2010. Tuition Benefit Programs Another Form of Financial Aid?. Presenters. Janet Dodson, Vice President of Policy, Research and Education, National Student Loan Program and - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/1.jpg)
The following is a presentation The following is a presentation prepared for EASFAA’s prepared for EASFAA’s
2010 Conference in 2010 Conference in Mashantucket, CTMashantucket, CTMay 16-19, 2010May 16-19, 2010
![Page 2: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/2.jpg)
Tuition Benefit ProgramsAnother Form of Financial
Aid?
![Page 3: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/3.jpg)
PresentersJanet Dodson, Vice President of Policy, Research and Education,National Student Loan Program
andRobert D. Shorb, Special Assistant to
the Dean, Skidmore College and Executive Director/CEO of The
Tuition Exchange Inc.
![Page 4: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/4.jpg)
Tuition Benefits for DependentsTuition Benefits for Dependents
• Tuition Remission (Internal)
• Tuition Exchange
• Tuition Grants (External)
![Page 5: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/5.jpg)
• For taking courses on campus
• Earning degree (s)
• Academic year, summer or special term
• Employee, spouse, partner, dependents
• Open seats
• Time availability
• Limits
![Page 6: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/6.jpg)
• Common at private institutions• Normally covers all or a portion of tuition
only• May extend to dependents, spouse and
partner as well as employees• Fiscally treated as a tuition discount and
considered an employee benefit• Determination of eligibility is usually done
through Human Resources
![Page 7: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/7.jpg)
• Public institutions may be required to “charge” tuition
• Normally covers all or a portion of tuition only• May extend to dependents, spouse and
partner as well as employees• May require specific sources of revenue to
fund awards• Determination of eligibility is usually done
through Human Resources
![Page 8: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/8.jpg)
• May cover other fees• Waive certain fees for employees
– Fees may be charged for items that the employee is entitled to as an employee benefit
– The institution may be more flexibility in waiving fees than in waiving tuition for statutory reasons
• May be extended to spouse, partner and/or dependents
![Page 9: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/9.jpg)
• For taking courses off campus
• Earning degree (s)
• Academic year, summer or special term
• Employee, spouse, partner, dependents
• Time availability
• Limits
![Page 10: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/10.jpg)
• Some private institutions
• Normally covers a portion of tuition only
• Usually for dependents and sometimes for spouse, partner and employees
• Fiscally treated as a “cash” employee benefit
• Determination of eligibility is usually done through Human Resources
![Page 11: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/11.jpg)
• Very few public institutions participate
• Normally covers a portion of tuition only
• Usually for dependents
• May require specific sources of revenue to fund awards
• Determination of eligibility is usually done through Human Resources
![Page 12: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/12.jpg)
• For taking courses off campus
• Earning degree (s)
• Academic year, summer or special term
• Employee, spouse, partner, dependents
• Time availability
• Limits
![Page 13: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/13.jpg)
• Mostly private institutions
• Normally covers all or a portion of tuition
• Usually for dependents and sometimes for spouse, partner and employees
• Fiscally treated as a “cash” expense and is not an employee benefit
• Determination of eligibility is usually done through Human Resources
![Page 14: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/14.jpg)
• 605 Tuition Exchange, Inc.
• 350 Council of Independent Colleges
• 96 Christian Colleges Exchange
• 69 Catholic College Cooperative
• 28 Association of Jesuit Colleges & Universities
• 28 Evangelical Lutheran Church in America
• 16 Association of Colleges of the South
• 12 Great Lakes Association of Colleges
• 13 Associated Colleges of the Midwest
• 37 Association of Presbyterian Colleges
![Page 15: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/15.jpg)
Tuition Exchange, Inc.
• 605 institutions• 5,400 students
receiving scholarships• $115M in total value• Individual value is
tuition up to $29,000• If tuition greater,
optional to cover more
• Import and export balance
• Few guidelines• Low cost to
participate• Valuable opportunity
for dependents of faculty/staff
![Page 16: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/16.jpg)
Tuition Exchange, Inc.
• www.tuitionexchange.org
• Central office in Washington, DC
• 2/3 of institutions will provide full tuition if student is accepted
• Process is three-step • Apply for TE at
parent’s employer• Apply for admission to
a TE institution• TE institution decides
on admission and TE scholarship eligibility
![Page 17: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/17.jpg)
Imports Exports
• Students attending your institution on TE
• Certified eligible to be considered for TE by their parent’s employer (another TE institution)
• Dependent children of eligible employees of your institution
• Awarded a TE Scholarship by another TE institution
![Page 18: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/18.jpg)
Skidmore College’s Experience
With Tuition Exchange
![Page 19: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/19.jpg)
Imports Exports
• Helps recruitment• Help enrollment goals• Fills empty seats• Attracts students who
would not have attended otherwise
• Stretches aid budget
• Expand educational opportunities
• Relieves pressure to accept un-qualified employee dependents
• Encourages students to leave home
• Low cost, high value
![Page 20: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/20.jpg)
Institutional Ratings of Admission Applicants
• Academic
• Involvement
• Character
![Page 21: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/21.jpg)
Home States of Enrolled TE Students at Skidmore
• CA• CT• DC• IL• IA• KY• MA
• NY• OH• PA• RI• TX• VT• WI
![Page 22: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/22.jpg)
New Student Import History
0
20
40
60
80
100
120
140
2005-2006 2006-2007 2007-2008 2008-2009
ImportAcceptedEnrolledEnrolled TE
![Page 23: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/23.jpg)
New Student Export History
0
5
10
15
20
25
30
2005-2006 2006-2007 2007-2008 2008-2009
ExportAcceptedEnrolled
![Page 24: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/24.jpg)
Overall Import/Export History
0
5
10
15
20
25
30
35
40
2005-2006 2006-2007 2007-2008 2008-2009
ImportsExports
![Page 25: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/25.jpg)
09-10 Income 09-10 Expense
• Each TE import brings in $10,600 tuition
• Each non-TE student brings in $39,600 tuition
• Each TE export saves $1,950 external cash benefit
• Each TE import costs $29,000
• Staff time to administer program
• Institutional dues
![Page 26: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/26.jpg)
• Meets enrollment management goal to increase the demand curve
• Enables the college to manage retention• Maximizes merit scholarship dollars for
higher ability students• Builds a strong image with collegiate
peers
![Page 27: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/27.jpg)
1. Review current tuition options with Human Resources
2. Share the benefits from an enrollment management perspective
3. Contact the exchange organization to obtain information
![Page 28: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/28.jpg)
1. Set up a meeting for exchange representative to meet with appropriate decision-makers
2. Call other exchange colleges to obtain a broader perspective on program
![Page 29: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/29.jpg)
• Institutions must set up clear guidelines concerning:– Who is eligible (employees, spouse, partner,
dependents, - how do you define “dependent”)– What is covered (tuition, fees, partial tuition)– Terms of the award (how many hours, duration of
award)– Rules regarding employee time off for taking
classes during the work day– Funding sources
![Page 30: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/30.jpg)
• Clarify roles of who is responsible to determine eligibility
• Create good communication among offices (admissions, financial aid, business and human resources)
• Federal tax implication – ensure there are no surprises to the employee– IRS information may be found at
www.irs.gov/publications/p970/ch11.html
![Page 31: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/31.jpg)
• Admissions
• Financial aid
• Internal, External, Exchange
• Employee, Spouse, Partner, Dependents
![Page 32: Tuition Benefit Programs Another Form of Financial Aid?](https://reader035.vdocuments.mx/reader035/viewer/2022062719/5681329a550346895d99351d/html5/thumbnails/32.jpg)