Tuition Benefits – Employee

Approved by Executive Council: 15 September 2026

Tuition Benefits for Employees

Full-time and Three-quarter-time employees are eligible to participate in the Tuition Benefit program after completing one (1) year of employment at the University. Accredited employment time does not count toward employee tuition benefits.  Tuition is covered at the following percentages:

• Full-time Employees: 100% of Tuition is covered
• Three-quarter-time Employees: 75% of Tuition is covered

The University retains sole discretion and final authority to determine eligibility for participation in the Tuition Benefit Program and to decide what educational institutions, courses, programs, degrees, concentrations, certificates, fees, and expenses are covered, as well as the amount, rate, duration, and conditions of any benefit provided. Tuition benefits are not guaranteed, regardless of position classification.

Full-time or three-quarter-time employees interested in attending classes at St. Mary’s as part of the tuition benefits or not as a part of the tuition benefits (degree-seeking or non-degree-seeking) must comply with the Tuition Benefits Policy and complete the Employee Education/Tuition Benefits Form.

Employee Admission and Enrollment in Classes at St. Mary’s

Employees interested in attending classes must complete an admission application, meet all standard admission requirements, and be admitted to the University. Class space for an employee on tuition benefits is subject to availability, program design, and possibly years of employment at the University.

Prior to employees enrolling in courses, employees must have divisional leadership (President, Executive Vice President, and Vice Presidents) approval to enroll in courses as a degree-seeking or non-degree-seeking student, as well as verification of the following:

• Employees must have a record of satisfactory job performance
• Employees must be in good standing
• Employees must show the impact the degree program and coursework will have on their job performance, work schedule, and position responsibilities
• Employees must attend class during non-working hours
  • Attendance in a class during regular working hours will be limited, must be discussed and approved by divisional leadership prior to enrollment, and may only be approved for one (1) course and no more than three (3) working hours per week

If approved, the alternative work schedule must include replacement time within the same week or the use of vacation/personal leave for time spent in class (hour-per-hour). Replacement time cannot count as overtime.  Generally, non-degree-seeking students may not be eligible for release time during the regular work period unless the course is job-related.

The tuition benefit covers a maximum of six (6) hours per semester, as identified below, and no more than 18 hours per academic year.

• Up to six (6) hours in the fall semester
• Up to six (6) hours in the spring semester
• Up to six (6) total hours over the following semesters: Summer I and Summer II

Travel required by your coursework that takes you away from your job must be applied to available vacation/personal time and discussed and approved by divisional leadership before enrollment.

Undergraduate Courses or Programs Eligible for Tuition Benefits

While most established undergraduate academic programs, degrees, concentrations, certificates, and other educational offerings may become eligible for tuition benefits upon activation, the University retains sole discretion to determine which courses or programs are eligible.

Unless otherwise expressly authorized or indicated by the University, the following programs, courses, degrees, concentrations, certificates, and educational offerings are excluded from Tuition Benefits under any University tuition rebate, tuition exchange, tuition benefit, or other educational assistance program and are not eligible for such benefits.  

Interinstitutional Agreements

Tuition benefits may be available for eligible academic programs offered through approved interinstitutional agreements, consortium agreements, or other formal educational partnerships recognized by the University, subject to applicable agreement terms and University policies. Direct questions about approved educational partnerships or policy interpretation to the Office of Human Resources before enrolling.

Financial Responsibilities of the Employee

Tuition benefits are considered a part of a student’s total financial aid package. University financial aid, merit scholarships, and tuition benefits cannot exceed the total cost of tuition. If the student is awarded University financial aid and/or a scholarship that would exceed the limit, the aid and scholarship will be reduced.  Employees must maintain good academic standing, as defined by the University, to continue receiving the benefit.

If employees drop courses after the official drop date, they will still be held responsible for taxable income, if owed. The IRS allows an exclusion of up to $5,250 per tax year under IRC §127 for graduate- or higher-level course tuition benefits. If the graduate tuition benefit exceeds the IRS Regulations maximum, the benefit amount will be subject to federal tax withholding.

Internal Revenue Service (IRS) Taxation on Graduate Education Tuition Benefits

Per Internal Revenue Service (IRS) and Treasury Regulations, the following guidance applies to tuition benefits:

• IRC §117(d) excludes from taxation the tuition cost for undergraduate courses. There is no limit on the cost of undergraduate tuition for an employee or an employee’s dependents
• IRC §127 excludes up to $5,250 for tuition costs for graduate or higher courses
• IRC §132(d) and Treasury Regulation 1.162-5 for graduate-level course(s) cannot be automatically applied; an employee must submit a Graduate Education Course Request for Exclusion each semester for analysis*

*Graduate Education Course(s) Request for Tax Exclusion

Depending on the facts and circumstances of each employee’s current position and an analysis of each course, some of the cost of tuition for graduate-level courses may be excluded from taxation. The employee is responsible for submitting course(s) for analysis each semester.

The Office of Human Resources, with the Office of Finance, will review the applicability of the tax exclusion based on a course-by-course analysis and may consult with the Vice President for Administration and Finance, with the respective Divisional Leader, and/or the University President, if necessary, in order to render a final determination. If the courses do not meet the exclusion, the benefit amount will be subject to federal tax withholding.

Continued Employment and Repayment Obligations

Employees must remain employed for one (1) year from their graduation date or last date of enrollment. Any employee who resigns or is terminated for cause and has not completed one (1) year of employment from their graduation date or last day of enrollment will be responsible for the total cost of tuition and fees covered under the tuition benefit for the full year.

A reverse charge will be applied to the student account, and the employee will be liable for reconciling this balance with the business office. Under certain circumstances, a waiver may be considered due to extenuating factors such as military deployment, a medical emergency, or a negotiated separation. The Office of Human Resources will review the request and may consult with the Vice President for Administration and Finance and, if necessary, the University President to render a final determination.

Retirement Tuition Benefit Requirements

A retiree is eligible for tuition benefits if all of the following apply:

• Employee completed ten (10) years of consecutive full-time service to the University and
• Employee has attained a minimum age of 55

Death or Disability Tuition Benefit Requirements

An employee and covered dependent(s) would be eligible for the Death benefit for tuition if;

• Employee completed five (5) years of full-time service to the University at the time of passing

An employee would be covered under the Disability benefit for tuition if:

• Employee provides their Disability Confirmation from Social Security; and
• Employee completed five (5) years of full-time service to the University at the time of Disability Confirmation

The definition of a dependent under this Policy is uniform and shall not vary based on an employee’s status, including retirement, disability, or death. Eligibility shall be determined solely in accordance with the established dependent eligibility criteria.