Understanding the University of Michigan Tuition Reimbursement Policy

The University of Michigan (U-M) offers tuition support programs to its employees across its Ann Arbor, Dearborn, and Flint campuses and the Health System. These programs aim to support employees in their pursuit of higher education, fostering professional development and growth. This article delves into the specifics of these policies, focusing on eligibility, application processes, and the scope of financial support provided.

UM-Dearborn Employee Tuition Scholarship

The University of Michigan-Dearborn provides a tuition scholarship program designed to support its employees pursuing undergraduate and graduate degrees at the Dearborn campus. This scholarship covers 25% of tuition and fees for eligible employees.

Eligibility Criteria:

Applicants must be regular (not temporary) part-time or full-time staff or faculty members at the University of Michigan with a 50% or higher appointment.
The scholarship is specifically for degree-seeking students at the Dearborn campus, enrolled in courses applicable to their undergraduate or graduate programs. Guest and doctoral students are not eligible.
Eligibility begins on the employee’s first day of regular employment at U-M with a 50% or higher appointment.

Application Process:

Employees must apply for the UM-Dearborn Employee and Dependent Tuition Scholarship through FA Student Forms. The application deadline is no later than the first day of the term.
The Human Resources Department provides confidential staff and faculty employment verification (active status, regular appointment confirmation, and effort level) to the Office of Financial Aid & Scholarships to assist in determining an applicant’s eligibility.
Eligible students need to complete the application form only once. After the initial submission and approval, the scholarship is automatically renewed each semester, provided the employee remains eligible, actively employed, and continues to meet all eligibility requirements.
Employees who no longer wish to receive the scholarship upon auto-renewal can contact the UM-Dearborn Office of Financial Aid and Scholarships to request to be reversed.

Scholarship Details:

The scholarship covers 25% of tuition and fees. All other educational costs are the student's responsibility.
There is no limit to the number of credit hours that may be taken each semester.
The scholarship works in conjunction with the 75% tuition and fees provided with the U-M Tuition Support Policy, potentially equaling 100% tuition and fee support, up to the approved departmental support.
Students are also eligible to file a FAFSA (Free Application for Federal Student Aid) and receive consideration for financial aid.
The UM-Dearborn Employee Scholarship precedes any other institutional scholarship or grant aid awarded to the participant. Institutional scholarships of greater value or that offer greater flexibility in terms will supersede the UM-Dearborn Employee Scholarship.

Maintaining Eligibility:

To maintain the scholarship, recipients must maintain satisfactory academic progress as defined by the Office of Financial Aid & Scholarships.
Participants are subject to all applicable academic policies governing students at UM-Dearborn.
The UM-Dearborn Employee Scholarship is evaluated regularly to determine whether the scholarship will be continued.
If a staff or faculty member separates employment before the beginning of a semester, the University reserves the right to revoke or not award the UM-Dearborn Employee Scholarship. If an employee separates employment after the begin date of a semester, the UM-Dearborn Employee Scholarship will continue through that semester.
Employees are required to apply in advance to receive the scholarship award for future semesters, not retroactively.

UM-Flint Tuition Support

The University of Michigan-Flint also provides tuition support to its staff members who attend UM-Flint classes.

Central Support Fund:

Established in 1996, the University of Michigan-Flint Executive Officers created a central support fund as an enhancement to the Standard Practice Guide 201.69 Tuition Support specifically for UM-Flint staff members who attend UM-Flint classes. The fund is available on a first-come, first-served basis.

Eligibility:

Eligible staff members are consistent with those outlined in SPG 201.69.
Eligible staff members may receive up to 100% of in-state tuition and fees paid from the central fund as long as funds are available.

Process:

Supervisors approve or disapprove the employee’s class request and submit it to the Staff member or Student Accounting to meet the deadline on the application.
Staff members submit the Tuition Support Form to Human Resources no later than 60 days following the end of the semester. If Tuition Advance is requested, the Tuition Support Form must be submitted at the beginning of class.
Grades must be submitted to the supervisor within 60 days following the end of the semester for the reimbursement policy. Grades must be submitted to the supervisor within 60 days following the end of the semester if Tuition Advance was elected.
Supervisors approve or disapprove final payment consistent with SPG 201.69 guidelines and return paperwork to Human Resources for processing.

Marlene Borland Staff Book Fund:

In addition to the tuition support, the Marlene Borland Staff Book Fund was established to provide University of Michigan-Flint staff with funds to purchase books needed for completion of their undergraduate degree at the University of Michigan-Flint.

Support for Classes Outside UM-Flint:

Eligible UM-Flint staff attending classes at UM-Dearborn or Ann Arbor may receive 75% of the cost of in-state tuition, plus registration fees, for up to 4 credit hours per term.
Part-time staff members with a 50% or greater appointment are eligible for tuition support proportional to their appointment fraction.
Eligible UM-Flint staff attending classes outside U-M may receive 75% of in-state tuition and fees paid from the central support fund as long as funds are available (proportional to appt. fraction). Part-time staff members with a 50% or greater appointment are eligible for tuition support proportional to their appointment fraction.

UM-Dearborn Employee Tuition Support

UM-Dearborn Human Resources provides a centralized fund to enhance the Tuition Support Program (SPG 201.69) for employees.

Process for Requesting Tuition Support:

Employees work with their supervisor to provide appropriate documentation to the Human Resources Office, including verification of successful completion of the course for credit.
To request an advance or reimbursement for 75% of tuition and fees, complete and follow the submission instructions on the Tuition Support Request Form. The form must be signed by the employee and their supervisor and forwarded to HR with a tuition statement for final approval. HR will enter the shortcode in the Administrative Section.
To request the 25% scholarship, complete and follow the instructions on the U-M Employee Scholarship Application Form.
At the end of each semester, submit an official grade report to HR to show successful completion of the course(s) listed on the Tuition Support Request Form. Successful completion is defined as receiving a grade of “B” or better for graduate level courses and a grade of “C” or better for all other courses.

Amount of Support Provided:

For UM-Dearborn employees taking UM-Dearborn classes only, 75% of the cost of tuition and fees will be paid by campus units and the centralized fund. This process remains in conjunction with the 25% U-M Employee Scholarship available to employees seeking degrees on the UM-Dearborn campus.
For UM-Dearborn employees taking courses at institutions other than UM-Dearborn, HR will work with senior leadership to identify a limited number of employees who would be eligible for centralized financial support as part of a succession development plan where UM-Dearborn does not offer the program. This process will include a review of performance discussions, long-term career goals, and growth within individual positions. Senior leaders will work with HR to ensure that career development opportunities exist for all staff.
Per the SPG, the home department can still elect to pay for the 75% tuition and fees without centralized funding support. That decision remains at the discretion of the department as outlined in SPG 201.69. The 25% U-M Employee Scholarship does not apply to employees taking courses at institutions other than UM-Dearborn.
Upon admittance into one of the limited educational support slots, complete and follow the instructions on the Tuition Support Request Form. The form must be signed by the employee and their supervisor and forwarded to HR with a tuition statement for final approval. HR will enter the shortcode in the Administrative Section.
At the end of each semester, submit an official grade report to HR to show successful completion of the course(s) listed on the Tuition Support Request Form.

Tax Implications

The Internal Revenue Code requires reporting and withholding of income and FICA taxes for tuition support for graduate status students, whenever those payments exceed $5,250.00 annually for each employee. Tuition advances/reimbursements exceeding $5,250.00 in a calendar year, for students listed as graduate students, will be considered taxable income and will be reported to the Internal Revenue Service. This additional tax liability will reduce your paycheck(s) through deductions set up through Student Accounts and Human Resources. Federal, state, and FICA taxes will be withheld on any amount in excess of $5,250.00. This applies to all classes taken while under the status of “Graduate” (i.e., graduate students taking undergraduate courses). Tax liability for any calendar year will be calculated starting with the previous fall semester and run through courses taken in the summer of the current calendar year. Fall, winter, and summer tuition support will be totaled to determine if the $5,250 support has been exceeded.

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