Navigating the Stanford University Tuition Grant Program: A Comprehensive Guide

Stanford University supports its employees through the Tuition Grant Program (TGP), which assists with the undergraduate education costs of their dependent children. The TGP provides tax-exempt payments to accredited institutions, helping to cover tuition expenses after any grants or scholarships have been applied. This article provides a detailed overview of the TGP, including eligibility, benefits, and application procedures.

Overview of the Tuition Grant Program

The Tuition Grant Program (TGP) at Stanford University is designed to support employees by helping to cover the cost of their children’s undergraduate education. The program provides financial assistance in the form of tax-exempt payments made directly to accredited educational institutions.

Core Benefit

The TGP covers some or all of the actual tuition charged by an eligible educational institution to matriculated students. This includes required fees charged instead of tuition, such as orientation, registration, or application fees. The amount TGP will pay depends on several factors:

Employee's FTE: The percentage of full-time equivalency (FTE) of the eligible employee’s appointment (e.g., 100%, 85%, 72%, 50%). If you work between 50% and 99% FTE at the time of payment, your benefit will be pro-rated by the percentage of your FTE, known as the “part-time benefit.”
Half of Stanford's Tuition: Half of the current Stanford University undergraduate tuition.
Tuition Less Grants/Scholarships: The amount of tuition, less any applicable grants or scholarships, that your child is being charged by the college or university they are attending.

If the child’s institution invoices more than the maximum benefit, TGP will pay up to the maximum amount, based on a full-time eligible employee and prorated if not full time. If the child’s institution invoices less than the maximum benefit, TGP will pay up to the full amount of the invoice.

Excluded Expenses

The TGP is specifically for tuition and required fees. Expenses not covered include:

Room and board
Books and course materials
Laboratory fees
Expenses at any United States or foreign institution that are not normally included in the basic tuition and fees by Stanford University, the University of California, or the California State Universities.

Eligibility Criteria

To be eligible for the TGP, both the employee and the child must meet specific requirements.

Employee Eligibility

For Staff: A benefits-eligible University position that is six months or more (four months or more, or to the extent provided in the collective bargaining agreement for bargaining unit employees) and 50% FTE or greater. Additionally, staff must have completed five years of continuing benefits-eligible service to receive TGP benefits.
For Faculty and Senior Administrative Staff: A University appointment of six months or longer. Faculty and senior administrative staff are eligible for TGP when their appointment begins.
If both parents of an eligible child are Stanford employees, only one four-year benefit period is allowed for each eligible child regardless of which parent applies. The same limits and conditions apply as if Stanford employed only one parent.
Employees of organizations affiliated with the University, such as Carnegie Mellon, are not eligible for benefits under this Program.

Child Eligibility

A child is considered eligible if they meet both of the following requirements:

The child is:

A biological or legally adopted child, OR
A stepchild who has lived with you for at least 12 months immediately before you request benefits under the Program, OR
A foster child who has lived with you for at least 24 months immediately before you request benefits under the Program, OR
A child of your domestic partner (as defined by the Domestic Partner Benefits Policy) who has lived with you for at least the 12 months immediately before you request benefits under the Program, OR
Your ward under a court-approved legal guardianship and has been your ward for at least 60 months.

And one or more of the following statements are true:

The child is claimed as your dependent on your federal income tax returns, OR
Your child provides less than 50% of their financial support, OR
The child lives primarily with you when he/she is not away at school.

It is essential to notify the TGP office immediately if your eligible child withdraws from college during an academic year, transfers to another college, or is no longer eligible. You are also responsible for advising the TGP office if your employment status changes during the period covered by the approved application.

Read also: Affording ECU

If you or your child becomes ineligible for the Program, Stanford reserves the right to recover from you the Program benefits it paid on your behalf.

College and University Eligibility

TGP payments will be made to accredited United States colleges and universities listed in the most current edition of “Accredited Institutions of Postsecondary Education” published by the American Council on Education (ACE). The Benefits office has a copy of this book for reference. If an institution is not listed in the ACE publication, the parent must provide documentation that the units from the institution are transferable to Stanford University. Send the documentation to the TGP Administrator so the institution’s eligibility can be determined.

TGP payments may be made to foreign colleges and universities if Stanford University determines, at its discretion, that the foreign institution’s academic standards are equivalent to those of accredited United States institutions.

Duration of Payments

The Program will make payments toward up to four years of work required for a baccalaureate degree at the eligible institution attended by the eligible child. Benefits will be paid for a maximum of:

12 quarters or 8 semesters of eligible attendance
If any TGP benefits for a child are taxable, benefits for that child will not be paid toward more than 12 quarters or 8 semesters of eligible attendance or after a period of 4 consecutive years, whichever is less.
Benefits for extended part-time attendance may not exceed the amount that would be paid for full-time attendance in a four-year period, or the covered portion of such period.
No TGP benefits continue beyond your eligible child’s attainment of the baccalaureate degree.

Special Attendance Cases

Full-time Summer Attendance: If your eligible child attends summer session and the Program pays for summer attendance, a term of eligibility will be deducted from your remaining eligibility.
Part-time Attendance: If your eligible child takes eight or fewer units in a term, then the TGP will pay only half of the equivalent full-time academic term of eligibility. The amount payable to the institution cannot exceed one half of the amount available for that term, or the balance of the annual benefit amount available.
Inter-term: If your eligible child enrolls in an “inter-term” in between semesters, TGP will pay the tuition as long as the course does not exceed the total maximum semester amount for the year. The student loses no additional eligibility. If the max semester amount has been used, a term of eligibility may be deducted from remaining eligibility. An inter-term payment may deplete the remaining annual benefit amount available.
Simultaneous Attendance: If your eligible child attends and is charged tuition by two eligible educational institutions at the same time for the same course of study, TGP will pay benefits up to the amount that would have been provided for the student to attend the primary institution full-time. This amount will be adjusted if the combined attendance at both institutions is less than full time.

Taxability Issues

Understanding the tax implications of the TGP is crucial.

Read also: Withdrawals for College: A Guide

Non-Taxable Benefit

In order for TGP payments to be tax-exempt, your child must meet the following criteria:

The child is claimed as your dependent on your federal income taxes for the year that includes the tuition payment date.
Payments made on behalf of your eligible child(ren) are made directly to the college or university and are excluded from your gross income for federal income tax purposes and are thus tax-exempt.

Taxable Benefit

If tuition payments are made on behalf of a child of your domestic partner and you have not legally adopted the child, the Program benefits will be treated as taxable compensation to you. Also, if the child provides over 50% of his or her own financial support, tuition payments made on behalf of the child will be treated as taxable compensation to you. If the child has attained age 24 (19 if not a full-time student) and has gross income equal to or exceeding the federal income tax exemption amount, and is not disabled, the child will not qualify as a dependent and Program benefits will be treated as taxable compensation to you.

Taxable Benefit Duration

The Program will reimburse the employee for tuition payments toward up to four years of work required for a baccalaureate degree at the eligible institution attended by the eligible child. Taxable TGP benefits for a child will not be paid toward more than 12 quarters or 8 semesters of eligible attendance or after a period of 4 consecutive years, whichever is less. Taxable TGP benefits must be taken in consecutive years. The consecutive duration begins at the start of the first term for which any taxable TGP benefit is paid and continues through the consecutive time equivalent of the remaining TGP credits. No TGP benefits continue beyond your eligible child’s attainment of the baccalaureate degree.

Other Non-Taxable Payments

If you must make a payment for tuition directly to the child’s institution due to a late TGP application submission, the TGP Administrator will issue a reimbursement check to the school. Once you have made the tuition payment, you must provide an invoice to show the tuition amount and proof of payment. If the tuition was paid by check, the front and back copies of the check are required. Upon receipt of payment from the Tuition Grant Program, the child’s school will in turn issue the reimbursement check. Note: Stanford University is not responsible for the length of time it takes the child’s school to reimburse you after they have received Stanford’s payment. If the child is over the age of 18, the child’s school typically reimburses the child directly.

How and When to Apply

To apply for the TGP, complete and submit an application between April 1-July 1 on behalf of your eligible child for each partial or entire academic year the child attends (includes summer session), or for each change of school. Application forms are available at the campus Benefits Office, the SLAC Benefits Office, or on the HR EAP web site. Applications are accepted during the academic year, but are due no later than July 1.

Financial Aid Considerations

Participation in the Tuition Grant Program could affect other financial aid benefits for your child’s education. Contact your child’s Financial Aid Office for more information. For Stanford University students, Educational Assistance Programs (EAP) notifies the Financial Aid Office and you after the application is processed. When registering, the student receives the applicable credit toward Stanford’s tuition through the process specified in the University’s registration procedures.

Additional Tuition Grant Opportunities

Beyond the primary TGP, additional tuition grant opportunities may be available.

Merit-Based Tuition Grants for Summer Session

A limited number of merit-based tuition grants are available for visiting Summer Session students. An additional need-based grant may be available to qualifying domestic merit grant recipients who demonstrate financial need.

Eligibility:

Grades reflecting at least one year of undergraduate study
Students must have a GPA of 3.5 or higher (or equivalent)
Submission of a short essay

Tuition grant recipients must maintain minimum enrollment requirements for the program through the Final Study List deadline. Athletic courses (e.g. PHYSWELL, ATHLETIC) do not count towards the minimum unit enrollment.

How to Apply for Merit-Based Grants

To apply for a tuition grant, follow the instructions in the application and complete the questions. In no more than a few sentences, explain how attending Stanford Summer Session will help you in your academic and intellectual journey. In no more than 300 words, respond to one of the following questions:

Tell us about one of your recent projects or assignments that made you excited about learning.
Tell us about your favorite undergraduate class so far. What made it compelling?
If you were given the possibility to have dinner with a person you found intellectually interesting, who would it be and why?

Students applying for a tuition grant will receive their award decisions with their admissions decision.

How to Apply for Need-Based Grants

To apply for a need-based tuition grant, students must submit and qualify for a merit grant. In addition, students will need to submit a copy of their Student Aid Report from a completed FAFSA application for the 2024-2025 or 2025-26 academic year. FAFSA must be completed for your current institution and not for Stanford University.

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