In the latest poll of colleges in the United States, the data shows that the average annual tuition of college students oscillates around $41,540.
These figures are an all-time high for US college tuition. Fewer high school students are looking for admission due to the high possibility of spending years after graduation servicing loans.
How to Fund Multiple College Tuitions
Likewise, parents, particularly those with multiple kids, are finding it more difficult than ever to save up for college tuition. So, some parents follow every potential route of least resistance to provide their kids with a college education.
One such route is enlisting as a college staff and ensuring all your children attend that same institution.
The Tuition Lottery
Most colleges offer discounts to the children of their staff. Some colleges offer as high as 95% discounts for students in this category. Of course, there are always terms and conditions in the fine print of such discounts.
So, it has now become a thing for parents to look around for college openings close to their homes. You know, any sacrifice to get those kids the much-needed college education.
A Career Sacrifice for Lifelong Benefits
Meghan Heater is a good example of a parent following this playbook. Heater took up a job at the University of Dayton’s commissary solely for the children’s sake.
On most weekdays, Heater spends long hours on her foot, making food available to college students. However, she has decided that it is a worthy price to pay.
College for the Rich?
The University of Dayton is a private institution established by Catholic Marianists. Its undergraduate student population is about 8,000.
However, annual tuition for their students comes down to around $47,000! This is a notable amount for a middle-class in addition to some other major expenses, like a mortgage.
Operation Hunt-for-waivers
Luckily for Heater, she gets more benefits from her employment than just the paycheck. For example, Heater will be four years in the University’s employ this year and is not qualified for the highest tuition waiver for an employee’s ward.
The stars are aligned for Heater’s three daughters, as they would be just in time to enjoy the University of Dayton’s tuition waiver.
How to Relief the Stress of Multiple Tuitions
Heater’s eldest daughter is just 15 years old and is billed to graduate from high school this year. The family’s other kids, 13 and 10, are lined up in quick succession to exploit the tuition waiver at the University of Dayton.
In the long run, this strategy of getting a subsidy for children’s tuition will save Heather’s family the stress of coughing up thousands of dollars.
A Waiver As Large As the 401K
Indeed, Heather has done the math and realized that her affiliation with the University of Dayton will save her family as much as $500,000 in tuition.
Indeed, this benefit is only available in some US institutions of higher learning. However, parents with a high resolve can do their homework and identify one.
Nothing Goes For Nothing
Most University administrations that favor partial tuition waivers for employees’ children aim to attract talents from young families.
However, a Sallie Mae report suggests that most parents adopt multiple sources of funds for their children’s college education.
It Is Very Possible to School Tuition-free
The report suggests that the average American parent covers 50% of their kid’s college tuition with savings or their income. The rest often comes from scholarships, grants, and student loans.
The report also explained that many parents spurn available scholarships and burden themselves with that financial responsibility. Nonetheless, only a few students pay the quoted tuition.
Ignorance Can Be Expensive
Sallie Mae also found that as popular as some scholarships can be, parents refuse to exploit them for one of two reasons. They are either unaware of its availability or lack information about scholarship details, like application deadlines.
Ultimately, Sallie Mae estimates that only 60% of parents exploit scholarships while applying for their ward’s college admission.
Information Can Be Liberating
From interacting with other parents at the Ohio Marrianist College, Heater explained that she is not the only one to take up employment for the tuition waivers.
Heater has been a stay-at-home mom for most of her married life. She gave up pursuing a professional career to raise her daughters and man the homefront.
We Can
However, seeing that her daughters would soon graduate from high school, Heater decided it was time to get a job and save as much money as possible.
After deciding to look for a job, she thought, “What job would do better than one that could simultaneously pay a fraction of my daughter’s tuition?”
Get To See Your Kids Often, By Making Them School Where You Work
The silver lining of Heater’s job at the commissary is that she gets to eat her cake and have it. She gets a paycheck, and her children will eventually qualify for a tuition waiver when they get admitted.
Above all, she still has ample time to spend with her family because her job is in the same town as her residence. Heater also gets the entire summer to enjoy her family’s company.
Tuition Waiver at the University of Dayton
During an interview with the University of Dayton’s vice president for human resources, Troy Washington, he explained the stats of the institution’s tuition remission program.
According to Washington, over 600 of the institution’s 3,000 staff are taking advantage of the tuition waiver for themselves or their dependents. Interestingly, the program is even a bit flexible.
What’s a Tuition Exchange Program?
A tuition exchange program allows employees or their dependents who prefer to study in another institution to transfer the waived tuition.
However, there is a list of preselected institutions to which the tuition transfer is allowed. So, if the employee or their dependent is on the lookout for a specific course, they would have to check with their employer’s list of beneficiary institutions.
Water Follows the Path of Least Resistance
According to a senior economist at Lending Tree, Jacob Channel, the spate of tuition spikes in institutions has made parents naturally aware of alternative sources of funds for their children’s years in college.
He explained that these tuition waiver programs have existed since time immemorial. However, my parents didn’t think much of it, as tuition was not as terrible as now.
Wait to Qualify
Interestingly, the College and University Professional Association for Human Resources states that at least 90% of all US universities and colleges offer tuition benefits to children of their full-time staff.
Half of the institutions that offer this benefit enforce a wait time before the employee can start enjoying the tuition benefits.
Understanding the Clauses of a Rebate
Channel also suggests that more people would take up jobs with these institutions if they understood the economic significance of the tuition benefits.
However, the economist clarifies that as juicy as the tuition waiver program can be, it has a couple of drawbacks. These drawbacks mostly involve caps instituted by regulatory bodies.
A Taxable Gift
For example, the IRS proceeds to treat the excess of a tuition waiver as taxable income once the benefits exceed $5,250 in a financial year.
The tax is not a bad thing per se, nor does it deny the beneficiary future access. However, Channel said, “It is still something to keep in mind so you aren’t blindsided by a tax bill.”
Minimum Requirements are Still Sacrosanct
Another bottleneck that an employee may face is that some institutions, most, require the student to meet all the admission requirements if they intend to benefit from the tuition waiver. The University of Dayton is one such institution.
So, employees may need to seek the consultative services of a tax consultant if there is a possibility of an exemption.
Gleaning Information Through the Grapevine
Most employees who have detailed information about full waivers only learn about them through their in-house involvement. Therefore, individuals who are unfamiliar with the policy regime in these educational institutions are mostly ignorant of its existence.
Indeed, several employees of institutions that offer these benefits have acknowledged their ignorance of their possibilities.
Going Thirsty Despite Living Next to a Water Source
For example, Sherry Kirkland spent 17 years in the employ of Wilmington University in Delaware. Ironically, she started her affiliation with the institution as a financial aid and academic adviser. Still, it took her a while to realize that tuition waivers were possible for university staff.
Likewise, she learned a bit later that the benefits could be extended to dependents. Ultimately, only the youngest of her four sons went to college on the wings of the tuition waiver.
It Can All Be Much More Enjoyable
Interestingly, Kirkland funded the tuition of her three older sons with loans. Imagine how much financial relief she would have enjoyed if she had known about the benefits beforehand.
Another beneficiary of a tuition waiver program is a chief administrative officer at South New Hampshire University (SNHU), Danielle Stanton. Her daughter is currently enjoying a 100% tuition break.
Always Weigh All Perceivable Odd
However, Stanton still recommends that parents looking to work for a higher educational institution consider several factors. Such parents are advised to look beyond the juicy tuition waivers.
Overall, the tuition waiver privilege could be a life-transforming experience for parents and their children.