How an Education Reimbursement Program Could Boost Your Business

Education Reimbursement Program – Does your organization offer one?

Imagine finding the perfect job candidate for your open position, only for them to accept another company’s offer because they provide student loan reimbursement and you don’t. Imagine losing a current star employee to a competitor because they reimburse tuition expenses and you don’t.

If your organization doesn’t have an education reimbursement program in place, these scenarios may be your reality. The modern hiring landscape requires that employers offer benefits that employees actually want. In fact, assisting with the cost of education is one of Millennials’ most valued benefits. Millennials, who are expected to make up 45% of the workforce by 2024, rate tuition and student loan reimbursement as one of their most valued benefits.¹ One poll found that nearly half of all millennials would switch jobs to one that offers tuition reimbursement.² Having an education reimbursement program in place could be the difference in finding and keeping talented job seekers.

But the benefits of reimbursing education costs go beyond gaining an advantage in hiring and retaining employees. Reimbursing tuition costs has a direct impact on your staff’s skill development. By providing your employees with a path to upskilling and growth opportunities, you’ll set your organization up for sustainable success.

Thinking of offering an education reimbursement program? BASIC makes it easy with our industry leading benefits administration! BASIC’s Consumer Driven Accounts (CDA) benefit platform offers over 30 in-demand employee benefits, including Student Loan Reimbursement and Tuition Reimbursement Accounts. Here’s a sneak peak at how these accounts work.

Tuition Reimbursement Account

Plans can be tailored to reflect employer goals. For instance, employers can set up the account to pay for a pre-determined level of continuing education credits or college coursework fees; they can also link reimbursement to GPA requirements or only reimburse courses in a certain area of study.

Employees pay for the course, complete it, and then submit a request for reimbursement. Upon approval, this is paid directly into their MyCash account on the employee’s BASIC Card. Reimbursements up to $5,250 annually, aggregated with Student Loan Reimbursement benefits, are tax-free to the employee and tax-deductible for the employer.

Student Loan Reimbursement Account

Our Student Loan Reimbursement Account lets employers reimburse a designated percentage of an employee’s monthly student loan expenses. Participating employees submit requests and documentation, which are reviewed for eligibility, and the reimbursement is paid directly to the participant.  Up to $5,250, aggregated with any Tuition Reimbursement benefits, are tax-free to the employee and tax deductible to the employer through December 31, 2024.