AI, automation, and shifting industry priorities are reshaping the workforce as we know it. That means the need for adaptable, multi-skilled employees is only increasing.

Professionals who prioritize learning and are committed to upskilling have the edge, but education isn’t cheap. Those contemplating a return to school are left asking one question: “Can I afford it?”

The good news: Approximately 47% of employers offer some form of tuition reimbursement program. However, only 2% of employees ever take advantage of this opportunity.

With 87% of current CEOs planning to prioritize workforce upskilling in the future, there’s never been a better time to consider furthering one’s education and teaming with an employer to do it.

Below, we’ll help demystify the benefit—what it is and what it isn’t—clear up common misconceptions, and provide practical tips on how you can secure the finances you’ll need to chart the future career you desire.

What is employer tuition reimbursement?

Tuition reimbursement is a workplace benefit designed to help employees offset the cost of continuing education. Typically, the employee pays for a course or certificate upfront and is then reimbursed by their employer when the coursework is completed. “Tuition assistance” is a broad term often used to describe several different types of employer-sponsored programs, such as those in which a company splits the costs of tuition with the employee or pays the university directly upfront (commonly referred to as direct billing).

Tax advantage: One important thing to keep in mind is that, under IRS §127, employers can provide up to $5,250 per year tax-free to each employee for undergraduate or graduate study. This is especially important when considering the total cost of tuition and fees, as some universities will tailor their programs to meet these IRS caps. Northeastern University’s Online Graduate Certificates, for example, are priced at exactly $5,250. This allows working professionals seeking a high-impact credential that will immediately open up new career opportunities, potentially allowing them to pay nothing out of pocket after reimbursement.

Determining eligibility: Do you qualify for tuition assistance?

The eligibility standards for tuition reimbursement will differ depending on the company, but there are some common prerequisites that almost all assistance plans include, such as:

• Full-time employment status
• 6-12 months of tenure
• Courses relevant to your role or future goals
• Minimum GPA (usually B or better)

Also, just because your company isn’t actively promoting a tuition reimbursement program doesn’t mean one isn’t available. Make sure you:

1. Check the employee handbook for tuition assistance policies.
2. Look on your company’s Human Resources Portal or Intranet to find any information on reimbursement programs offered.
3. Ask your supervisor or team leader about applicable programs, or see if they can direct you to someone within the company who could provide more detailed information.

What’s covered under employer tuition reimbursement?

As with eligibility requirements, what’s covered under any assistance plan will differ. However, you can assume that all or some of the following expenses will be included in the benefits package:

• Tuition up to the annual cap (average $5,322 - slightly above the tax-free limit)
• Textbooks
• Course materials
• Lab or tech fees (depending on the nature of the program)

Expenses rarely covered by tuition reimbursement programs include:

• Travel expenses
• Housing
• Meals
• Application fees
• Non-credit courses

Making your case: 3 tips on how to approach your employer

Confirming that your employer offers some form of tuition assistance is the first step. The next step—broaching the subject with a manager or HR department—may leave many feeling apprehensive. However, with the right preparation and a well-framed presentation, you can significantly increase your chances of securing the approval you seek.

Here are five important steps to take when raising the topic with your company:

1. Do your homework on the policy

Before you do anything else, make sure you are fully educated on exactly what the company program is and what you’ll need in order to present the best case possible. Some key questions to answer prior to any conversation would be:

• Are there specific forms I must submit and/or a formal application process?
• What are the deadlines for submission?
• Are there specific departments or roles that benefit more?
• What are the minimum performance/GPA requirements for reimbursement?
• Is there a post-completion commitment period you need to fulfill?
• What is the annual or lifetime reimbursement cap?

Knowing exactly what the plan requires will ensure you have all the right materials available before sitting down with your manager or HR department.

2. Research your program

As much as possible, you need to become an expert on the course/program/certificate in which you plan to enroll. This will put you in a position to answer any questions that are raised during your conversation.

Be prepared to articulate:

• The program's full title and the institution.
• Its key learning objectives and core courses.
• The total cost, including tuition and any fees.
• The duration of the program and the time commitment required per week.
• Its accreditation.
• How the certificate's credits can potentially stack towards a master's degree, showcasing long-term value

3. Present it as a win-win

For many companies, this will be the crucial selling point. Convincing an employer that an investment in an employee’s education is, by extension, an investment in the company’s future can go a long way in persuading them that your upskilling is in their best interest. Hiring and then retaining top talent can be a lengthy, arduous, and ultimately expensive task, so employers should be encouraged to see tuition reimbursement as a strategic calculation.

Points to highlight could include:

• Quantifiable benefits: A study by Cigna and Lumina Foundation found that tuition reimbursement programs delivered a 129% ROI back to the company. Such examples can be used to bolster your case.
• Succession planning & leadership development: One of the benefits of upskilling is that it positions the employee to take on greater responsibilities inside the company and, potentially, ascend to leadership roles. Talk about how this will strengthen the internal talent pipeline.

• Competitive advantage: A workplace with workers skilled in a variety of areas provides a stronger team and a greater number of individuals capable of contributing creative, innovative ideas.

• Align it directly with your position, responsibilities, and company goals: Make it clear. Present a connection between the curriculum and the specific work you do, or the strategic direction the company is heading. Avoid generalities such as, “It will make me better.” Instead, point to specific upskilling acquired through the coursework, such as advanced skills that will be directly applicable to a current project or initiative; specific concepts that will enhance performance in leadership roles and new responsibilities; or the broadening of professional capabilities in a specific area that will allow for the implementation of fresh, innovative ideas.
• Prepare for questions and objections: Your employer will likely raise certain concerns or ask for more clarity on particular topics. Prepare as well as possible to answer what are likely to be some common questions, such as, "How will you balance work and studies?" "Will this affect your current performance?" "What's the cost breakdown?"
  Have well-thought-out answers and if you don’t know something, ensure your employer that you’ll provide that information ASAP.

What should you bring to the meeting?

Once you know what you’re going to say to your employer, it’s important to be prepared with the right materials. What will you want to provide as far as documents to help bolster your case? That will depend on the particulars of the policy, but some common documents/information required are:

• A program overview or syllabus: This will allow your employer to review the specifics of the program you intend to take and become familiar with what’s covered in the curriculum.
• A link to the university website: Pointing your employer to the university website will allow them to review not just particulars about the program, but the institution, its history and mission statement as well.
• An estimated cost and timeline: Providing an estimated cost analysis as well as the expected timeline for completion will ensure your employer is fully aware of what is expected.
• Any relevant accreditation or outcomes info: Make sure to offer details on the program, both in terms of its reputation as well as any pertinent data on how other graduates have translated their skills into real-world benefits. This should provide your employer a greater degree of comfort as far as ROI is concerned.

Also, consider when the best time may be to approach your employer. For instance, a performance review—when the firm is already thinking about your job growth and potential for advancement—may present a perfect opportunity to broach the subject. However, less formal, one-on-one check-in sessions may be preferred by some, as this can foster a low-pressure environment that allows you to “float” the idea and accurately gauge your employer’s response.

What if no tuition reimbursement plan is offered?

Some firms have yet to officially invest in tuition reimbursement plans. If that’s the case, don’t be discouraged. You can still raise the subject with your employer, presenting several ideas on how they can help you and future employees upskill while on the job. These may include a one-time professional development stipend as part of discretionary budgets dedicated to training, or paying partial cost now, with a commitment to cover full cost later. Your employer may not be open to paying the full expense for your degree or certificate, but inquire as to whether they’d be open to funding a portion this year with the potential for more in the next fiscal cycle.

Also, be sure to speak with representatives from the university and explore financial aid, payment plans, or scholarship opportunities. Northeastern University, for example, offers flexible payment options for many online graduate programs. Their Online Graduate Certificates provide pay-per-course plans allowing students to complete their studies in months rather than years. Professionals choosing this path could continue negotiating with their employer while already beginning to upskill.

Busting common myths

With so many companies offering to pay for an employee's education in some form or manner, the question becomes, why do so few take advantage? One of the reasons may be common misconceptions that exist around employer tuition assistance. Whether it be the types of programs supported by the benefit, or what’s required in order to be eligible, professionals may already be under the impression that the opportunity isn’t available to them. But the truth is, most of these are just myths, dispelled once the facts are revealed. Some of the more widespread misconceptions include:

Reimbursement is only for "traditional" degrees (master's, MBAs, PhDs).

While most programs do cover traditional master's degrees and even MBAs, employers are increasingly recognizing the value of shorter, skills-focused programs such as graduate certificates. Such programs are often designed to deliver highly specialized, job-ready skills in a compressed timeframe while costing less than a full degree. They take less time to complete (usually just 1-2 years, depending on whether the student is full-or part-time), and allow employees to apply new knowledge to their roles almost immediately. This has made them increasingly attractive as a cost-effective investment for companies looking to quickly upskill their workforce.

My employer won't pay for something not directly related to my current job title.

As explained previously, proving that there is a direct alignment between current responsibilities and the course being considered is a common requirement for many tuition assistance programs. However, several creative-minded employers also support education that aligns with a future career path within the company or broader company strategic goals.

Employers understand the need to develop internal talent for succession planning or to build capabilities in emerging areas. Even if the program or certificate you’re interested in does not directly relate to current responsibilities, providing a roadmap to how the skills learned will better position you for future growth and responsibilities could prove a compelling argument.

Only entry-level employees or those just starting a career will benefit.

Tuition reimbursement can benefit anyone across various career stages. Seasoned professionals, for instance, who are looking into targeted educational opportunities can utilize their new skills to better adapt to new technologies, refine leadership skills, or pivot into highly specialized areas. Employees that run the gamut of experience can help enhance institutional knowledge. Companies can then leverage existing employee expertise with enhanced capabilities, making them even more valuable.

The application process is too complicated.

Application processes will vary company to company. However, it's rarely so complicated as to be prohibitive. With a little research, an employee can easily acquaint themselves with the nuts and bolts of what is expected. The key is preparation and understanding your company's specific procedures. Don't assume; inquire directly with your HR or benefits department.

I'll be "trapped" at the company for years afterwards.

Many tuition reimbursement plans do indeed include a "commitment clause" requiring employees to remain with the company for a certain period (e.g. 1-2 years) after completing the program or risk having to repay a pro-rated portion of the funds. However, the commitment is rarely of such duration as to make the benefit less attractive.

It can also be a valuable incentive for someone to remain with an employer long-term. A recent study suggested that more than 75% of employees are more likely to stay with a company after taking advantage of the benefit.

By understanding these common misconceptions, you can approach the conversation with confidence and obtain a clearer picture of how tuition reimbursement truly works.

Now is the time to ask your employer to help pay for education

Employer tuition reimbursement is one of the best, most common ways for professionals to return to school and minimize the out-of-pocket expense. It gives employers a stake in the professional development of their workers while ensuring that the skills learned by the employee can immediately be of benefit to the company.

Don’t let another year go by without taking advantage of this wonderful opportunity. With one conversation, you could be on your way to a brighter future and immediate career advancement.

Ready to take the next step? Explore Northeastern University Online's diverse range of graduate certificates, designed to provide specialized skills and immediate career impact, all within the $5,250 federal tax-free benefit threshold. Visit Northeastern University Online to find the program that aligns with your career goals.