For some employees, tuition help transforms lives

A New Path: How Employer Education Benefits Are Transforming Lives

After five years of working long nights as a truck driver, Julius Mosley felt it was time for a change. The job wasn’t fulfilling, and he wanted to be more present in his teenage son’s life. So, he took a new position as a customer service representative at a telecommunications company near his home. As part of the employee benefits, he had access to free job-related classes. This opportunity sparked his interest in studying leadership, a field that would help him manage teams and guide others to reach their full potential.

Mosley enrolled in a 10-week front-line manager certificate program, which his employer, Spectrum, fully covered. He then pursued a bachelor's degree in leadership and organization studies, with the company covering the tuition costs. During this time, he was also promoted to a management position while completing his online courses. “It’s completely changed the course of my life,” Mosley said. “It’s truly a blessing to be able to do this.”

As the cost of higher education continues to rise, many U.S. residents find it increasingly unattainable. In response, some adults are turning to their employers for support in covering college expenses and professional credentials. According to the Society for Human Resource Management (SHRM), nearly half of public and private employers offer tuition reimbursement programs.

Many companies reimburse employees up to $5,250 per year, as this amount is tax-deductible. Some employers go further, such as Bank of America, which offers up to $7,500 annually, and Spectrum, which provides additional support for master’s degrees or courses outside its prepaid program, covering up to $10,000 per year.

Why Employers Offer Education Benefits

For companies aiming to attract Generation Z and Millennials, offering education benefits is an effective strategy. These younger generations are highly interested in how companies invest in their growth and development. According to Amy Dufrane, CEO of the Human Resource Certification Institute, such programs can be a strong draw for potential employees.

Additionally, about 8% of employers offer assistance with student loan repayment. James Atkinson, vice president of thought leadership at SHRM, noted that this is especially relevant for recent graduates who often start their careers burdened by debt.

A Pay-It-Forward Model

Traditional tuition reimbursement programs require employees to pay upfront and then seek reimbursement later. However, this model doesn’t work well for all workers, particularly those with limited financial resources. Paul Marchand, chief human resources officer at Spectrum, explained that many of their employees earn around $25 to $30 per hour and may have additional responsibilities, such as being single parents.

To address this, Spectrum introduced a program allowing employees to enroll in eligible courses without paying anything upfront. The courses were selected in collaboration with Guild, a Denver-based company specializing in workforce development and tuition assistance. Similarly, Walmart offers a similar benefit to its front-line associates, enabling them to take college courses or specific classes without ever seeing an invoice. The company also covers high school completion programs for employees’ family members.

Help with Loan Repayment

For those struggling with student loan debt, some employers have added loan repayment programs alongside tuition assistance. Morgan Woods, a training analyst at semiconductor manufacturer GlobalFoundries, graduated with $20,000 in debt. Her employer now pays $125 per month toward her loans, a sum that will increase over time. This support has helped her pay off her loans four years earlier than expected and improve her financial stability.

Making the Case for Education Benefits

Not all employers offer education benefits, and even when they do, these programs may not always be widely publicized. To find out if your employer offers such benefits, ask a manager or HR representative. Show how a course or training directly relates to your role and how it could enhance your performance. Even if there’s no formal tuition reimbursement program, your employer might have a training or professional development budget.

Dufrane advised that if you're entering a new role or industry, you can advocate for training as part of your employment offer. For example, you could say, “I’d like to take a course to help me get up to speed in this area.” Demonstrating initiative can be well-received by employers.

You can also approach your boss and express your desire to grow within the company. Ask, “I want to move up and I want to invest in myself. What recommendations do you have for me?”

Finding Time for Learning

Balancing a full-time job with schoolwork can be challenging, but it’s possible with the right strategies. Rene Sotolongo, a cybersecurity analyst at the Human Resource Certification Institute, earned a master’s degree using tuition reimbursement benefits from his employer. He adjusted his schedule, worked Monday through Thursday, studied on weeknights, and dedicated Fridays and weekends to schoolwork.

Sotolongo emphasized the importance of flexibility. “Without the tuition reimbursement or the organization’s flexibility, there’s no way that I would be able to” earn advanced degrees, he said. “It’s rewarding in every aspect.”

For Mosley, juggling a full-time job, family responsibilities, and schoolwork has been difficult, but it has also provided a positive example for his son. “Instead of me just telling him he needs to do his, now he’s seeing me doing schoolwork, so that actually helped out with him wanting to do his work more,” Mosley said. “We actually take time to sit down together some days to work on our homework, so it’s been a life-changing situation.”