Effective Tuition Reimbursement

A new way to offer more support to your employees, gain faster benefits

for your company, and cut costs!

Why Help With College?

• Company Support for Education Can– Recruit new employees– Retain good employees– Support company growth

Recruitment

• A dedicated educational component fits well with the overall benefits package that a company uses to entice new employees

• It indicates that the company is interested in encouraging personal development interests

Employee Retention

• A higher education degree takes time to achieve

• Employees become reliant upon the benefit and will seek to keep that benefit available

Supporting Company Growth

• As employees earn a degree, the new knowledge gained feeds back into the company by– Increasing job performance in a current role– Providing the company solutions to filling new

positions internally– Presenting clients with a more polished support

team

Challenges to Providing Educational Benefits

• Tuition Costs• Time• Return on Investment

Tuition Costs

• Cost vary greatly,CAEL (The Council for Adult and Experiential Learning) released a study entitled:

The Market Price of Tuition (November 2007)– Suggested tuition rates included:• Associate’s degrees average: $253 per credit hour• Bachelor’s degree average: $319 per credit hour

Tuition Costs (Con’t)

• Per course costs roughly translate to:– $759 per 3 credit associate’s degree course– $957 per 3 credit bachelor’s degree course

• The IRS tax limit on employee tuition reimbursement is:– $5,250 tax-free annually– Allows coverage for approximately 5.5 courses in a

bachelor’s degree program per year

Time

• An employee taking 5.5 courses per year will need approximately:– 7+ years to complete a bachelor’s degree

Return on Investment

• While a 7+ year path to a bachelor’s degree may seem to be a benefit to employee retention, the unrealistic program length can– Reduce the appeal of the program• Yielding less interest, less adoption, less appeal as a

benefit– Lead to fewer successful degree earners• Yielding lower return on the company’s educational

investment

How Can You Maximize Educational Investment?

• There are two primary steps1. Find a balance between the completion times

and retention needs2. Search for programs that reduce the market price

of tuition

Seek Balance

• Bachelor’s degree seekers still view the degree as a four year program– Seek to offer employees ways to help them

manage work, home, and education in a way that holds this standard as achievable• KEY CONCEPT: Flexible Course Schedules Help!• KEY CONCEPT: Online Programs Are Flexible!

Reduce Tuition Costs

• Lower tuition prices allow for more courses per year

• Completing a bachelor’s degree in 4 years requires at least 10 courses per year– KEY CONCEPT: Lower Tuition = More Courses!– KEY CONCEPT: Approve programs with tuition

rates below $525 per course!

Program Comparisons

Final Analysis

• Programs like StraighterLine can reduce benefits costs up to $42,000 when run-out across the entirety of a bachelor’s degree program

• They can also bring the skills learned back to the work place 2.75 time faster

Thank You!

Ryan T. Busch | Director of StraighterLine1900 L. Street NW | Suite 301 | Washington | DC | 20036P: (202) 507-7020 ext. 615 | M: (602) 486-7110 | F: (202) 543-5589rbusch@StraighterLine.com | 1-877-Str8erLine (1-877-787-8375)LinkedIn Profile: http://www.linkedin.com/in/ryanbusch