Tuition Reimbursement & financial assistance

Our Tuition Reimbursement Policy states if other financial assistance is provided (scholarship, grant, etc) that we will pay the difference up to 100% of the tuition expense. The question is what does your policy state if an employee pays with a student loan (private or federal subsidized/unsubsidized)? My first thought was the employee should prove that they are applying the tuition reimbursement funds to their student loan. However, how is that different than if they pay with their credit card? Is it up to the Employer to police what they do with the tuition funds we reimburse them as long as they complete the approved class with an approved grade under our policy guidelines? What do you require?


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  • We require them to apply any scholarship or grant money before reimbursement, but whether or not they apply the reimursement to a student loan, I would not police. They are responsible for the student loan, just as they would be a credit card, and I trust if they don't pay it, the lending party will come after them. Our company still benefits from their added education, and I don't see it as my job to police their personal finances to that extent.
  • Thank you for your input. After going through all the scenarios in my mind and knowing that I don't want to "police" employees anymore than we already do, I agree that it is the employee's responsibility.
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