Refers to a contractual arrangement between an employer and employee in which the employer covers the costs of some or all of an employee’s tuition for a program of study such as a college or university degree, or other forms of education. Employer tuition reimbursement programs are viewed as a win-win strategy—employers use the tuition assistance program as an employee retention and recruitment tool, and employees use the program as a form of financial aid to pursue their educational interests. Tuition assistance programs are supported by federal tax policies. Federal tax laws allow employees to receive up to $5,250 in tuition reimbursement tax-free annually from their employer.

See Topic: Employer Tuition Assistance Program / Employe Tuition Reimbursement - Finance