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Policy No: 2125
Responsible Office: Human Resources
Last Review Date: 04/30/2025
Next Required Review: 04/30/2030
Policy No: 2125
Responsible Office: Human Resources
Last Review Date: 04/30/2025
Next Required Review: 04/30/2030

Educational Benefit Plan

1. Purpose

This policy details the Educational Benefit Plan, a benefit available to eligible employees and their dependents. This document includes specifications on eligibility, policy details, and procedures for application.

2. Applicability

This policy applies to all University divisions, including USA Health. If you are a regular, benefits-eligible employee working .90 FTE or greater, and have completed six months of employment on the first day of classes per the University Academic Calendar, you and your eligible spouse/dependents enrolled at the 海角视频 may qualify for the educational benefit.
 
  • The educational benefit is also available to eligible spouses and unmarried dependent children of employees;
  • The educational benefit is also available to University Retirees and approved University Affiliates;
  • See section 3: Definitions, for detailed information related to dependent children, spouse, university retiree and affiliates eligibility.

3. Definitions

Children of deceased employees: The employee was full-time and had 5 years of continuous employment at the time of death. Eligible dependents include children that are age 14 or older at the time of the employee's death. Proof of eligibility required at the time of application, i.e., child's birth certificate.
 
Dependent Children: Unmarried children include the biological, legally-adopted, step-, foster, or any other legally dependent children of the employee who are under 25 years of age on the first day of classes.
 
Spouse: Spouse as recognized by the State of Alabama.
 
University Retiree: The University’s Educational Benefit Plan will continue for the life of the University retiree if the University retiree was eligible for this benefit at the time of retirement. All other conditions of the Educational Benefit Plan apply.
 
University Approved Affiliates: The University’s Educational Benefit is offered to eligible employees of approved University affiliates. A university-approved affiliate is an entity controlled or owned by the 海角视频, an entity with whom the University maintains a special relationship (i.e., MESC/DISL; ROTC), or a current RTC tenant.

4. Policy Guidelines

4.1 Application Process
 
4.1.1 Employees admitted as a student do not have to complete the Educational Benefit Certification form unless your position is grant funded. For grant funded positions see section 4.1.3 of this policy.
 
4.1.2 For eligible Spouses and unmarried Dependent Children, the must be completed annually. The Educational Benefit Certification form can be accessed via DocRoute and can be submitted as early as the first day of registration for the applicable semester and no later than the first day of classes per the Academic Calendar.
 
4.1.3 Employees in grant funded position are only required to submit an form if the cost associated with the employee's educational benefit needs to be changed to a non-grant funding account (FOAPAL). Please be reminded that for eligible Spouses and Dependent Children, the must be completed annually. The Educational Benefit Certification form can be accessed via DocRoute and can be submitted as early as the first day of registration for the applicable semester and no later than the first day of classes per the Academic Calendar.
 
4.1.4 The form provides ample space to apply for the eligible spouse, and all eligible dependent children.
 
4.1.5 The Educational Benefit Certification form is submitted once each academic year unless the spouse/dependent child begins classes in the spring or summer semesters. In such cases, the certification is required to be submitted as early as the first day of registration for the applicable semester and no later than the first day of classes per the Academic Calendar for the spring or summer semester, and again for the following academic year.
 
4.1.6 Affiliates and University Retirees: The Educational Benefit Certification form for Affiliates and Retirees can be accessed here:
 
 
and must be submitted to Human Resources. The form can be submitted as early as the first day of registration for the applicable semester and no later than the first day of classes per the Academic Calendar.
 
General Division retirees eligibility for the educational benefit will be determined based on the employee’s eligibility for the benefit on the Teachers’ Retirement System (TRS) date of retirement. This will require the benefit to be assigned as a retiree benefit.
 
4.2 Tuition Credit
 
4.2.1 For Employees:
 
Employees may receive tuition credit for up to 5 semester hours and applicable fees each semester. For employees employed before January 1, 2013, the tuition credit rate is based on the per credit hour tuition rate for the applicable college as posted in the 海角视频 Tuition and Fee Schedule. For employees employed on or after January 1, 2013, the tuition credit rate is based on the prevailing College of Arts and Sciences undergraduate tuition rate for all course levels.
 
Employees who wish to take advantage of this benefit will be electronically verified as eligible by the Student Accounting Office. The benefit will be applied to student accounts automatically, prior to the fee payment deadline. The student should periodically check his/her account to determine if the tuition credit has been applied.
 
Employees must maintain a minimum cumulative institutional grade point average of 2.0 undergraduate or 3.0 graduate for coursework taken at the 海角视频 to be eligible to receive educational benefits for following terms. If the student fails to maintain the appropriate grade point average, he or she will not be able to participate in this benefit until his or her grade point average reaches the appropriate level.
 
All undergraduates must meet the established standards designating appropriate academic progress. For more information on academic probation, suspension, dismissal, reinstatement, withdrawal or academic bankruptcy, please refer to the
 
4.2.2 For Dependents:
 
Eligible spouses and unmarried dependent children may be credited based on 50% of the tuition rate with no hour maximum at the beginning of each academic semester, prior to the fee payment deadline. Fees are not included.
 
The tuition credit rate is based on the employee’s date of employment and degree program. For employees employed before January 1, 2013, the tuition credit rate is 50% of the per credit hour tuition rate for the applicable college as posted in the 海角视频 Tuition and Fee Schedule. For employees employed on or after January 1, 2013, the tuition credit rate is based on 50% of the prevailing College of Arts and Sciences undergraduate tuition rate for all course levels.
 
Eligible spouses and dependent children must have a minimum cumulative institutional grade point average of 2.0 undergraduate or 3.0 graduate at the end of each term to be eligible to receive educational benefits for following terms. If the student fails to maintain the appropriate grade point average, he or she will not be able to participate in this benefit until his or her grade point average reaches the appropriate level.
 
All undergraduates must meet the established standards designating appropriate academic progress. For more information on academic probation, suspension, dismissal, reinstatement, withdrawal or academic bankruptcy, please refer to the
 
4.2.3 Repayment of Tuition Credit
 
• Dropping a class or withdrawing from the University: Tuition credits will be reversed from student accounts only for courses dropped during the refund period (first two weeks of classes).
• End of Employment: Tuition credits will be reversed from student accounts only for courses dropped during the refund period (first two weeks of class).
 
4.3 Fees
 
The Educational Benefit Plan provides a waiver of the $150 University registration fee each semester for undergraduate programs for employees only when the course load is less than 15 semester hours. No additional waivers are applied for any other fees.
 
4.4 Scholarships & Tuition Benefits from Other Sources
 
Employees, eligible spouses and dependent children who have applied for financial aid (including student loans) must disclose educational benefits as a resource. Failure to include this in your financial aid application could result in required repayment of Federal Financial Aid grants or loans.
 
4.4.1 University Scholarships
 
The maximum allowed for USA funded scholarships, combined with the amount received in Employee Educational Benefits is $17,650 per academic year, and will be applicable to all employees of the 海角视频 who are recipients of the employee/dependent educational benefit regardless of the employee's employment date.
 
If the total combined amount of the USA funded scholarship and the employee educational benefit exceeds $17,650 per academic year, the employee educational benefit will be reduced by the excess amount.
 
Employees with a spouse or dependent who is receiving institutionally funded scholarships covering 100% of educational expenses, as determined by the University, are ineligible for any additional employee educational benefit on behalf of the scholarship student.
 
4.4.2 Other Sources
 
All external payments will be applied to the student’s account when received by the Student Accounting Office. All applicable USA Educational Benefit tuition credits will be applied to the student’s account before the final fee payment deadline for the semester. Any other scholarship or federal financial aid is credited to the student’s account just prior to the beginning of classes, or when the application and award process is completed. If payments from various sources result in an overpayment of tuition, the overpayment will be refunded to the student, except in cases where specific restrictions require some return of payment to the source(s) of the payments.
 
4.5 Taxation
 
4.5.1 For those educational benefits which are taxable, Federal 25%, State 5% and Social Security taxes 7.65% will be withheld from the employee’s payroll check prior to the end of the calendar quarter in which the semester began for each semester the eligible dependent was enrolled and received the educational benefit.
 
4.5.2 The Employee Educational Benefit will be tax free up to $5,250.
 
4.5.3 The Spouse and Dependent Educational benefit:
 
4.5.3.1 For University and HealthCare Management, LLC employees : In accordance with current Internal Revenue Service regulations, educational benefits received for an individual classified as a graduate student, including a medical student, who is a dependent of a University employee are typically treated as taxable income to the employee.
 
Educational benefits received for a child of an employee, classified as an undergraduate, who is not the employee’s dependent for purposes of the federal income tax dependent’s exemption will be taxable to the employee. (Check Box 2-Other child on certification form)
However, in the case of divorced parents, refer to the following questions to determine taxable status of the educational benefit:
 
Is the employee the custodial parent? Yes, Has the custodial parent given the right to claim the dependent’s exemption to the other parent? No, Is the educational benefit taxable to the employee? No
 
Is the employee the custodial parent? Yes, Has the custodial parent given the right to claim the dependent’s exemption to the other parent? Yes, Is the educational benefit taxable to the employee? No
 
Is the employee the custodial parent? No, Has the custodial parent given the right to claim the dependent’s exemption to the other parent? Yes, Is the educational benefit taxable to the employee? No
 
Is the employee the custodial parent? No, Has the custodial parent given the right to claim the dependent’s exemption to the other parent? No, Is the educational benefit taxable to the employee? Yes
 
4.5.3.2 For Health Care Authority employees: In accordance with current Internal Revenue Service regulations, educational benefits, received by an individual who is a dependent of the employee, are treated as taxable income to the employee.
 
4.6 Refunds
 
4.6.1  If the student has a tuition credit balance, refunds will be processed approximately two weeks after the first day of classes for the semester per the University Academic Calendar.
 
      • Credits will be posted to the student’s account and subsequently refunded to the student by direct deposit to the one bank account the student has on file. (Note: students without direct deposits are strongly encouraged to sign up for direct deposit on PAWS and students may change bank accounts for direct deposit purposes).
      • If there is no direct deposit authorization on file for the student, a check will be issued to the student’s home address on file.
4.6.2  If the student paid 15% tuition deposit by credit card, and anticipates a tuition refund: The amount paid with a credit card will be refunded to the credit card. If multiple credit cards are used, the refund will go back to the last credit card used.
 
4.6.3  Can an employee receive a refund for his/her dependent or spouse? Any applicable tuition refund, due to an overpayment, is applied to the student’s account. A student may have only one bank account associated with his/her student account. However, a student may voluntarily change bank accounts at any time. This includes the student changing the account to a parent’s account.
 
4.7  Other Applicable Rules
 
4.7.1  Attending classes during working hours: To ensure that daily operations are not interrupted, all time off for exempt and non-exempt employees to attend classes during working hours must be approved in writing and in advance at the discretion of department heads. If you are a non-exempt employee, all time off during working hours, including time spent traveling to and from class, must be made up during the same work week; vacation time or PTO may be used for this purpose, only with the pre-approval of your supervisor.
 
4.7.2  Graduate and doctoral programs are eligible for the tuition credit: The benefit applies only to enrollment at the 海角视频. Employees and eligible dependents adhere to the same admissions related requirements and procedures as all students enrolled in classes at the University.
 
      • Exceptions - Tuition and fee charges paid by a Graduate Assistantship will not be eligible for the Employee Educational Benefit.
      • The tuition rate is based on the employee’s date of employment and the degree program.
4.7.3  Graduate assistantships are not eligible for the tuition credit: Tuition and fees paid as a component of Graduate Assistantships, stipends, or fellowships will not be eligible for EEB. Should any course not qualify as an authorized tuition expense through the Graduate School, or the registered credit hours exceed the maximum covered under the student's assistantship, EEB may be applied to the additional tuition cost (following EEB eligibility criteria). EEB credit will be assessed only on those registered hours not already covered by the existing tuition credit.
 
4.7.4  Students enrolled in PASSAGE USA are eligible for tuition credit: PASSAGE USA, (Preparing All Students Socially and Academically for Gainful Employment) is a two-year and four-year non-degree, certificate program. This program is designed for students who need extra support to be successful in our community. The Employee Educational Benefit will provide a tuition credit for eligible students enrolled in the PASSAGE USA program up to age 28.
 
The cost of the program is based on an annual program fee structure (in lieu of credit hours). Within the program, students take 15 credit hours per semester. The Employee Educational Benefit tuition credit is applied based on the 15 credit hours per semester as per the regular Base and Standard Plan employee educational benefit.
 
For more information on PASSAGE USA, visit their website at:  /colleges/ceps/passage/
 
4.7.5  Students in the South Start program are not eligible for tuition credit: Current policy does not include students enrolled in South Start as eligible for tuition credit with the Employee Educational Benefit Program. For more information on South Start, please visit:
 
 
4.7.6  If both parents are employed: Only one employee may receive the Educational Benefit tuition credit on behalf of their dependent children.
 
4.7.7  Educational Benefit forms may not be submitted for prior academic years: Tuition credits will not be applied retroactively. To receive the educational benefit, it is required that Educational Benefit Certification be submitted to Human Resources by the applicable deadline.

5. Procedures

NA

6. Enforcement

The University’s Human Resources department is responsible for implementing and enforcing this policy, including the resolution of reasonable accommodation, safety/direct threat, and undue hardship issues.
 

7. Related Documents