The University provides tuition remission benefits to eligible employees so they may pursue opportunities for personal and educational development by matriculating in University of Scranton courses for credit. The University also provides tuition remission for spouses and children of eligible full-time employees, with the eligible dependent responsible for the University fee in effect at the time of registration.

Full-time regular employees, employed on the first day of the semester, may take two courses free of tuition charges each semester, intersession, and summer session through the College of Graduate and Continuing Education. Tuition charges beyond two courses a semester are not paid under this policy.

Part-time employees working at least half time and employed on the first day of the semester are eligible for two courses during the academic year (1 September to 31 August). Spouses and children of part-time employees are not eligible for a tuition benefit.

For purposes of the application of this policy only, the first day of the semester is defined as follows:

Fall Semester	1 September;
Intersession	2 January;
Spring Semester	1 February;
Summer I	1 June;
Summer II	1 July;
Summer – Grad	1 June.

Employees are responsible for payment of all fees and for the cost of books, and must meet admission requirements in the division in which they wish to enroll.

General Provisions Regarding Tuition Remission

Continuing Education Classes: The fees for Continuing Education classes and seminars are not covered under employee tuition remission. Employees interested in offerings of Continuing Education should check with the Director of Continuing Education about enrollment, fees, and possible discounts.

Some Continuing Education courses may be sponsored and funded by Human Resources. Employees should check with their supervisors and Human Resources for eligibility.

Spouse and Children General Eligibility: Tuition remission benefits for eligible spouses/children of full-time employees are limited to the attainment of one bachelor's degree and one master's degree, if eligible, regardless of where the degree was/is obtained. The benefit is available up to the end of the academic year in which the eligible child attains age 24. For purposes of this policy, the academic year is defined as 1 September through 31 August. One full year of service is defined as a 365-day period of full-time employment.

Undergraduate tuition benefits for children of full-time employees (see chart for eligibility) may be extended to include other Jesuit institutions. One-half of the tuition charges will be considered for payment under the following circumstances:

1. the amount does not exceed the tuition costs of The University of Scranton;

2. application must be made for financial aid; and

3. room and board costs are excluded.

The University participates in FACHEX (faculty children exchange) which presents the possibility of full tuition at other Jesuit institutions when an exchange slot is available. FACHEX is available only for undergraduate programs.

Financial Aid: A Free Application for Federal Student Aid (FAFSA), which covers both state and federal aid, must be filed each year prior to May 1 for the subsequent academic year for eligible employees, spouses and eligible children who intend to enroll as at least a half-time student for any term during the subsequent academic year. Application forms may be obtained from the University's Financial Aid Office. If it is determined that the student is not eligible to receive state or federal aid, a short form may be required in subsequent years. This short form may be obtained from the Financial Aid Office, and must be submitted for review prior to May 1. The tuition remission benefit will not be paid to a student's account until all required financial aid forms and applications are officially filed. If all applicable financial aid forms are not completed in a timely manner, the actual amount of state and/or federal grants that the student would have been eligible for will be deducted from the University's tuition remission benefit. As a result, the student or parent will be responsible for paying the portion of the financial aid package that was forfeited.

The tuition remission policy pertains to the difference between the tuition cost and the financial aid secured, except that, when combined, the total value will be extended to cover the cost of books and academic fees. The maximum allowance for books and academic fees is $250 per semester. Bookstore charge forms up to this amount will be issued by the Treasurer's Office. Requests for authorization above $250 will be handled on a case-by-case basis by the Bursar.

On-line Courses: The University offers various on-line coursed in conjunction with other on-line educators. The full-time employee tuition remission for these programs may vary depending the University's arrangement with their on-line partner. For Scranton Education On-Line programs (SEOL), full-time University employees and their eligible dependents will receive a 33% tuition remission, regardless of their length of full-time employment with the University. Part-time employees also receive 33% tuition remission for SEOL courses and the courses count toward the two courses part-time employees may take during the year.

Class Attendance During Work Hours: An employee may be permitted to attend classes during usual work hours only if:

1. written justification for the need, with supervisor's approval, is sent to and approved by Human Resources; and

2. the normal number of hours in the work week is maintained.

Separation of the Employee from the University: Separation of the employee from the University for any reason will terminate the tuition benefit on the last day of the session or semester in which the separation occurs for the employee as well as eligible spouse and eligible children, except:

1. In the case of total disability or death of the employee, the eligible spouse and eligible dependents that are enrolled will be allowed to continue through graduation to receive tuition remission (within the parameters of this policy) without regard to the employee's length of service.

2. The spouse and children who reach college entry age after the death, disability, or retirement of a full-time employee who has completed at least five years of full-time service are eligible to receive tuition remission as defined in this policy.

Application for Tuition Remission and Related Documentation: Application for tuition remission for employees, eligible spouses, and eligible children must be made for each semester or session during which classes will be attended. An application form for each person seeking tuition remission must be completed. Forms are available at the offices of Financial Aid, Treasurer, Human Resources, or on line at the Human Resources department web page. Documentation of the relationship of a spouse or child may be required prior to extending tuition remission. Examples of appropriate documentation include marriage certificates for spouses and birth certificates for children. Documentation of the age of a child may also be required. Birth certificates or other appropriate documents may be used to verify the age of a child.

Taxation of Tuition Remission Benefit: Courses taken through the tuition remission benefit may be subject to federal, state, and/or local income tax. In the event that benefits under this policy are deemed taxable income, the University will withhold the applicable taxes from the employee's paycheck(s) and report the imputed income on the employee's W-2. The employee will not be reimbursed by the University for any taxes owed. The University will use the following Internal Revenue Service (IRS) guidelines to determine the taxability of the tuition remission benefit.

A tuition reduction for education below the graduate level is tax free if the reduction is provided by an educational institution to (and for the education of):

1. A current employee;

2. A former employee who retired or left on disability;

3. A widow or widower of an individual who died while an employee;

4. A widow or widower of a former employee who retired or left on disability;

5. A dependent child or spouse of any person listed in (1) through (4) above. (A dependent child of divorced parents is treated as the dependent of both parents.)

Based on these guidelines, tuition remission for most undergraduate courses for employees, eligible spouses, and eligible dependent children is not considered taxable income for the employee.

If tuition remission is granted to an employee's eligible child when the child is not considered a dependent child for federal, state, and/or local tax reporting purposes, the value of the tuition remission is taxable to the employee. In this case, the University will withhold the applicable taxes from the employee's paycheck(s) and report the imputed income on the employee's W-2. The University may ask the employee to provide documentation to verify the dependent status of the eligible child. A copy of the employee's tax filing for the previous tax year may be used as documentation.

The IRS guidelines consider tuition remission for graduate level courses to be taxable for federal income tax purposes, unless the education meets at least one of the following two tests:

1. The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose for the employer.

2. The education maintains or improves skills needed in the employee's current work.

Tuition remission for graduate level courses for employees will be considered taxable and will be taxed and reported as taxable income unless the employee completes the Graduate Tuition Remission Form documenting that the education meets one of the two IRS tests described above. The Graduate Tuition Remission Form must be signed by the employee, the employee's supervisor, and the employee's Vice President. The Human Resources Department has final responsibility for determining if the employee's request meets at least one of the two IRS tests.

Tuition remission for graduate level courses for eligible spouses and children is considered taxable income. Therefore, the University will withhold the applicable taxes from the employee's paycheck(s) and report the imputed income on the employee's W-2. Employees may be able to deduct some of these expenses on their personal income tax return.