Employers offer key support for higher ed
Students attend a job fair at UPS's Minnesota District headquarters
When he began working as a part-time UPS package handler in 2006, Rex Poyaoan was shocked to find out that his employer would help pay for college. “Their ‘Earn and Learn’ program opened the door for me; I realized that I’d be stupid not to take advantage of it,” he said. Last year he started taking classes at Concordia University, St. Paul.
UPS has been helping employees work their way through college since 1999. The program — which is offered at select locations throughout the U.S. — reimburses up to $1,500 per semester for college tuition, books and fees. What’s unique about the UPS program is that students must only attend an accredited institution and earn a passing grade — courses don’t have to be related to their position or business. And part-time employees such as those who work in loading and package handling areas can participate.
“This is a program that benefits UPS, colleges and students,” said Paul Bennett, Minnesota district recruiting supervisor. “It helps us get and keep good employees — including those we want to promote. It also benefits our employees and the colleges they attend, since students can more often afford continuous attendance and graduate on time.” He estimates that at the four UPS locations in Minnesota where the program is available, 70 percent of the part-timers take advantage of the benefit.
UPS is not alone
A 2007 study of large U.S. employers by Mercer Human Resource Consulting reported that 87 percent offered some type of educational assistance to employees. When small- to medium-sized employers are included, the share drops to about 35 percent, according to a 2004 study by the Council for Adult and Experiential Learning (CAEL). Many organizations see these programs as a strategic investment. Tuition benefits help attract and keep employees, and when these employees participate, they are better educated and more productive — which is good for their organizations.
Employer tuition assistance is an important source of funding for some students. The American Council on Education reports that in 2003-04, seven percent of undergraduates and 20 percent of graduate students received tuition assistance from their employer. For undergraduates the average amount of tuition reimbursement was $1,780 or 39 percent of their total tuition and fees. Graduate students received an average of $2,886, covering 38 percent of their total tuition and fees. IRS rules allow students to receive up to $5,250 tax-free education benefits from their employer each year.
A great benefit
At Concordia University, St. Paul, most of the students who use employer assistance to help pay for their educations attend accelerated or evening programs, according to financial aid director Brian Heinemann. “We always ask students if they have access to these programs; this is a great benefit,” he said. Heinemann noted that sometimes students run into problems with the timing or payouts of reimbursements. “We will go out of our way to help them if it gets sticky; this personal attention is one of the advantages of going to a private school,” he said.
Bennett revealed that UPS frequently recruits at college fairs. “Families are wondering how they are going to pay for college and we offer an option. Students who work part-time for us get great benefits, including tuition help,” he said.
As Minnesota strives to compete in a global economy, it makes good business sense to make it easy — and affordable — for employees to complete or continue their college education. For more information about employee assistance programs, see An updated approach to tuition assistance.