Navigating the Penn State Employee Tuition Discount Policy

Penn State University recognizes the importance of education and professional development for its employees and their families. To support this, the university offers a tuition discount policy designed to make Penn State courses more accessible and affordable. This article provides a comprehensive overview of the Penn State employee tuition discount policy, outlining eligibility requirements, discount amounts, limitations, and application procedures.

Purpose of the Tuition Discount

The primary purpose of the Penn State employee tuition discount policy is to provide full-time employees, retirees, and those with Emeritus status, along with their dependents, the opportunity to pursue University courses at a reduced tuition rate. Penn State Harrisburg, for example, delivers academic excellence right to the Capital Region, offering a broad range of graduate programs. This benefit encourages employees to advance their education, enhance their skills, and contribute to the Penn State community. For dependents, it opens doors to higher education opportunities that might otherwise be financially challenging.

Employee Eligibility

Several categories of employees are eligible for the tuition discount:

Full-time employees: This includes individuals in Standing, Fixed-Term I, or Fixed-Term Multi-Year positions during active periods of employment and certain inactive periods of employment, as well as those on approved leaves of absence.
Approved Members of the Armed Services: Those who are on the staff of the Department of Military Science, Air Force Aerospace Studies, or Naval Science.
Retirees: As outlined in University Policy HR54.
Employees with Emeritus Status: As defined under University Policy AC25.
Technical-service employees: Note that technical-service employees covered by the collective bargaining agreement between the University and Teamsters Local Union No. 8 are eligible for the grant-in-aid provisions that were in effect on January 1, 2018, as specified in Article XXXVI of the collective bargaining agreement.

Dependent Eligibility

Eligible full-time employees and retirees can extend the tuition discount to their dependents, which include:

Spouse: A spouse is eligible unless they are receiving educational assistance from the University, such as a graduate assistantship, graduate fellowship, or non-stipend scholar. Note that tuition reduction for a spouse taking graduate level classes may be subject to taxes.
Children: Biological children, step-children, legally adopted children, or children for whom the employee is the legal guardian are eligible up to the age of 26. This applies regardless of whether they qualify as the employee's tax dependent, are full-time students, or are married. The discount applies to undergraduate credits and Integrated Undergraduate Graduate (IUG) programs only, until they attain their first Penn State bachelor's or IUG degree. The student cannot be enrolled in a master's level or higher-level program.

Active Periods of Employment

The tuition discount for a dependent child or spouse is available for any semester or summer session in which classes begin on or after the employee's date of full-time employment. If the employee becomes ineligible for the tuition discount due to changes in appointment status or employment status after the beginning of the semester, the dependent shall continue to receive the discount through that current semester only. Tuition discount will not be applied retroactively to prior semesters. Dependents are not eligible for tuition discount for any semester or summer session in which classes begin after the employee's final day of employment. These limits do not apply to an eligible retiree under University Policy HR54. At such time that a dependent becomes ineligible for benefits, it is the responsibility of the employee to notify HR Services at 814-865-1473 immediately.

Amount of Tuition Discount

The tuition discount provides a significant reduction in tuition costs:

Employees: The tuition discount is a reduction of 75% of the tuition payable per credit. The amount of tuition discount would result in out-of-pocket costs for employees to be 25% of the effective in-state tuition rate (excluding other student fees).
Dependents: A dependent is eligible for a University tuition discount of 75% of the tuition payable per credit.

Where Courses are Offered

Eligibility for the tuition discount applies at all University locations, including:

Penn State Campuses
World Campus
Pennsylvania College of Technology

Limitations

While the tuition discount provides substantial benefits, it's important to be aware of its limitations:

Credit Limit for Employees: Employees are subject to a 16-credit maximum per academic year (summer, fall, and spring).
Course Restrictions: The tuition discount applies to all resident instruction and continuing education credit courses for which regular tuition is charged, except for professional curriculum such as those offered at the College of Medicine at The Milton S. Hershey Medical Center, Dickinson Law, and Penn State Law. It does not apply at summer camps or workshops operated by the University unless University credit is given and regular tuition is charged.
Graduate Degree Limitations: No academic employee above the rank of Instructor, Research Assistant, or equivalent may receive from the University the Master's Degree or the Doctor's Degree in any graduate program where the faculty member has membership, teaches courses, serves on Master's or Doctoral Committees, or has other supervisory responsibilities which might give rise to conflicts of interest. The faculty member should inform their department head of their intention to pursue an advanced degree.
Other Funding Restrictions: Those receiving the tuition discount are not eligible for University scholarships and also may not receive funding from other University sources (general, restricted or unrestricted miscellaneous funds), with the exception of endowed funds specifically established for the benefit of employees. When a department wants employees to take a course as professional development, the use of general funds is permitted. The department must pay 100% of the cost and the tuition discount does not apply.
Age Limit for Dependents: Any dependent of an executive, administrator, academic administrator, academic, staff employee or retiree who has already been approved for the tuition discount and is beyond the age of 26 as of July 1, 2015, will remain on the tuition discount until they attain their first Penn State bachelor's degree, as long as they do not have two consecutive semesters of non-registration. After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued. Any dependent of a technical-service employee who has already been approved for the tuition discount and is beyond the age of 26 as of January 1, 2018, will remain on the tuition discount until they attain their first Penn State bachelor’s degree, as long as they do not have two consecutive semesters of non-registration. After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued. A dependent who reaches the maximum age of 26 will continue receiving the tuition discount until they attain their first Penn State bachelor's degree, as long as the original approval for the tuition discount was prior to the dependent reaching age 26 and the dependent has not had two consecutive semesters of non-registration after reaching age 26. After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued. If a dependent who meets the criteria outlined in “c” has a serious illness or accident, that prevents them from being enrolled for more than two consecutive semesters, upon re-enrollment to the University, the dependent will be eligible to continue to receive the tuition discount. The dependent will continue eligibility for the tuition discount until they attain their first Penn State bachelor's degree, as long as they do not have an additional two consecutive semesters of non-registration. After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued. If the dependent is an active or honorably discharged member of the armed services, the dependent will be eligible for the tuition discount beyond the age of 26 with proof of military service. The tuition discount will apply until they attain their first Penn State bachelor's degree; after two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued, unless recall to active service prevents consecutive semesters of registration. When more than one parent is employed by the University, or holds Emeritus Status, the tuition discount for a dependent is available to only one parent.

Dependent of a Deceased Faculty or Staff Member

Eligible dependent children or a spouse of a full-time employee who becomes deceased as an active employee are eligible for the tuition discount according to the years of service outlined below.

Employee with 0-5 years of full-time, continuous service = 2 semesters
Employee with 5-10 years of full-time, continuous service = 4 semesters
Employee with 10 years or more full-time, continuous service = 8 semesters

Dependent must be enrolled within the number of years equal to the employee's years of service. All other dependent eligible rules apply. To initiate the tuition discount application in this circumstance, please contact HR Services at 814-865-1473.

Application Procedure

To apply for the tuition discount, employees and their dependents must follow a specific application procedure:

Complete the Online Application: An application must be submitted for each semester in which enrollment is planned.
Employer Approval: For employees, the application must be approved by their employer. Enrollment is not complete until employer approval is received.
Deadlines: The Penn State Office of the Bursar must receive the completed application, including employer approval, by the bill due date to avoid late payment fees.
Payment: Once enrolled in the program, deferred tuition must be paid by the specified dates for each semester: February 5 for the Fall Semester, June 30 for the Spring Semester, and October 15 for the Summer Semester. Payments are made online in LionPATH.

After the tuition discount request is approved, the discount will be reflected on the next student account statement in LionPATH.

Dependent Verification Program

If the dependent verification program hasn't been completed within Workday, it will be required to maintain the dependent tuition discount. For more details about the dependent verification program please refer to Benefits Eligibility - Dependent Verification information or acceptable Documents for Dependent Verification. Please contact HR Services with any questions regarding the tuition discount benefit.

Employer Reimbursement and Tuition Deferment Program

Penn State also offers an Employer Reimbursement and Tuition Deferment Program. Even if you choose not to receive automated phone calls, you will still receive communications about this program in other ways. You must apply to participate in the Employer Reimbursement and Tuition Deferment Program each semester. After your enrollment in the program is confirmed, a hold will be added to your student account in LionPATH. This hold will not prevent you from taking any actions in LionPATH. It simply indicates your enrollment in this program and allows you to view your bill due date. In the details of this hold, you will see an “End Date” - this is your correct bill due date as a participant in the Employer Reimbursement and Tuition Deferment Program. Note that you will still receive billing statements in your financial account in LionPATH, and the due date listed on those statements will not match the one in this hold. The due date listed on billing statements does not reflect your participation in this program and does not apply to you. The due date in this hold is correct and applies to you.

Follow these steps to view this hold in LionPATH:

Read also: Penn State Admission: Average ACT

When you log in to LionPATH, you will see that you have at least one hold on your account.
Select the “World Campus Deferral Contract” hold to view the details of this hold.

United Concordia Dental College Tuition Benefits

For United Concordia Dental plan participants, there may be an opportunity for added tuition benefits by utilizing United Concordia's College Tuition Benefits program. For more information, please visit United Concordia Dental College Tuition Benefits. There is a list of participating schools across the U. S. Note: This program is not administered by Penn State.

Seeking Clarification

For any questions or concerns regarding the tuition discount benefit, it is recommended to contact HR Services. Inquiries may be forwarded to Penn State Employee Benefits if additional information is needed.

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