MBA tuition reimbursement is a benefit that some companies offer their employees. Companies in the consulting, financial, and technology sectors are among those most likely to reimburse their employees’ MBA tuition. However, any business can benefit from employees with a business education — especially if those employees hold management positions.
How Does MBA Tuition Reimbursement Work?
Tuition reimbursement works differently than other forms of financial aid. While grants, scholarships, and student loans are applied to your college bill at the beginning of the semester, students only receive tuition reimbursement after the semester has ended.
Your company’s HR department may have specific forms for you to fill out, and they can explain what is expected of you.
Often, tuition reimbursement is granted on the condition that you stay at the company for a certain number of years after you graduate. If you don’t, you may be required to pay back any money you received.
Who Qualifies for MBA Tuition Reimbursement?
Whether or not you are eligible for MBA tuition reimbursement depends on the policies set by your employer. Often, companies only offer tuition reimbursement to those who have been employed with them for six months or longer. You may also be required to work a certain number of hours, finish your degree within a set timeframe, or earn specific grades to qualify for reimbursement.
Which Companies Offer Graduate Tuition Reimbursement?
The following companies are known to offer tuition reimbursement for graduate degrees, such as MBAs:
Bank of America
Proctor & Gamble
How Much Will Employers Reimburse?
Many companies will cap their tuition reimbursement at $5,250 per year because of the IRS’s rules regarding tax benefits for education. Some will pay considerably more, though. Others structure their tuition reimbursement plans as a percentage, offering to pay 50, 75, 90, or even 100 percent of your tuition costs. Just keep in mind that however much your company reimburses you, only the first $5,250 per year will be tax-free.
Asking for Tuition Reimbursement
Even if your company does not have a pre-existing program, you can ask your employer to help pay for your degree. Set up a meeting with your employer to ask about tuition reimbursement, and come prepared to do the following:
- Demonstrate how your performance so far has helped the company.
- Explain how the company would benefit from your MBA.
- Highlight the benefits of offering tuition reimbursement.
Propose a specific plan, including where you will attend, how soon you will finish, and whether you will need to cut back on work hours.
Financial aid for graduate school is often more limited and difficult to obtain than what is available for undergraduate studies. If you can’t find enough scholarships, grants, and tuition waivers to cover all or most of your bill, consider asking your employer for MBA tuition reimbursement.
“Opening The Door To Tuition Reimbursement: How To Ask Your Employer To Pay For Your Degree.” Ohio University Online Graduate Degree Programs. Ohio University. Web. 26 May 2018.
“Tax Benefits for Education: Information Center.” IRS Newsroom. IRS, 6 Mar. 2018. Web. 26 May 2018.