Tuition Reimbursement: Why Now May Be the Time to Ask Your Employer to Help

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WSJ Your Money Briefing 7 min 3 speakers 2 chapters transcribed 2 months ago
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ReliaQuest (Sponsor/Ad Reader) 0:00
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J.R. Whalen 0:33
Here's your money briefing for Wednesday, October 11th. I'm J.R. Whelan for The Wall Street Journal. As companies continue to compete for workers, many are highlighting a benefit that can provide relief for some employees. Tuition reimbursement.
Cheryl Winokur Munk 0:49
The people are actually really, really grateful that their companies have paid for their education because it means that they're not graduating with tons of debt. The businesses are finding that they're seeing greater employee retention and they're also seeing greater promotions with the people who take advantage of these programs.
J.R. Whalen 1:08
We'll talk with Wall Street Journal contributor Cheryl Winokur-Monk after the break.
ReliaQuest (Sponsor/Ad Reader) 1:25
This episode is brought to you by Charles Schwab. Decisions made in Washington can affect your portfolio every day. Washington Wise from Charles Schwab is an original podcast that unpacks the stories making news in Washington. Listen at schwab.com slash Washington Wise.
J.R. Whalen 1:46
As the cost of higher education continues to rise, company-provided tuition reimbursement could be an employee's pathway to a degree. Wall Street Journal contributor Cheryl Winokur-Munk joins me. So Cheryl, companies offering tuition reimbursement isn't new, but why have some companies stepped up promoting it now?
Cheryl Winokur Munk 2:04
Well, when you look at the student debt picture in the country and the high rising cost of college, it really makes a lot of sense that employers would want to step in and help their employees. Many people simply can't afford college at this point.
J.R. Whalen 2:18
What types of programs do companies typically offer?
Cheryl Winokur Munk 2:20
So there are a couple options, actually. One is tuition reimbursement, where the employee will spend whatever the money is. Let's say it's $3,000 on a bachelor's degree or per semester, and then I have to seek reimbursement from my company. So that's a reimbursement program.

Why are employers promoting tuition reimbursement now?

Cheryl Winokur Munk 2:41
The other type of program is a prepaid program where a company will pay the educational institution directly so the employee doesn't have to shell out any money. And a lot of employers are starting to put that into place more so than the reimbursement because it means that employees don't have to spend any of their own money up front.
J.R. Whalen 3:05
Can you give me an example of the nuts and bolts of a program a company is offering employees?
Cheryl Winokur Munk 3:11
Yeah, so just to preface this, that every company has slightly different programs, but as a general example, Walmart pays 100% of tuition and books for an undergraduate degree at more than 25 universities. Walmart's program also includes short-form certificates that connect to in-demand jobs at Walmart, And they also offer high school completion and English language learning. That's offered to associates and managers in U.S. stores, Sam's Clubs, and supply chains.
J.R. Whalen 3:42
Is tuition money typically available to any employee?
Cheryl Winokur Munk 3:45
So generally speaking, the details can vary. Sometimes it depends on how long you've been at the company. Sometimes there are requirements you have to be at the company for a certain period of time. You may have to work a certain number of hours to be able to get the benefit. Certain programs may be available only to certain employees. So some companies may say we'll offer prepaid to our entry-level employees and then we'll Upper-level employees may get a reimbursement option, so it really depends on the company.
J.R. Whalen 4:17
What else should employees watch for in the fine print of tuition reimbursement packages offered by employers?
Cheryl Winokur Munk 4:23
So there's actually a lot of fine print in these programs. So there may be only certain types of degrees you can get in certain fields, for example.

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