What is Tuition Assistance and How Can You Use It?

While both tuition assistance and tuition reimbursement help you cover the cost of continuing education, they differ in how and when the funds are provided.

• • Tuition Assistance: Your employer often pays tuition up front, directly to the school, reducing or eliminating out-of-pocket costs. This approach can make it easier to enroll in classes without worrying about cash flow. Employers may have conditions, such as maintaining a certain grade or staying with the company for a specified period.
  • Tuition Reimbursement: With this option, you pay tuition first and submit proof of course completion to your employer for reimbursement. Similar conditions often apply—like achieving a minimum grade or remaining employed for a set time—but the key difference is that you front the cost initially.

Read more about how tuition reimbursement works.

“Tuition reimbursement and assistance gives access to all employees and can impact business outcomes at every level.”

– Zac Lorenzen, Executive Director, Strategic Partnerships, Bellevue University

Under IRS Section 127, employers can offer up to $5,250 per year in tuition assistance to employees on a tax-free basis. This means the benefit does not count as taxable income for employees, making it a valuable way to reduce the cost of continuing education.

From the employer side, tuition assistance might be deductible as a business expense, which provides an incentive for companies to invest in employee education.

These programs support service members and state residents in continuing their education, helping learners of all ages and backgrounds gain skills relevant to today’s workforce.

Military Tuition Assistance (TA)

The Department of Defense (DoD) offers Tuition Assistance to eligible active-duty service members across all branches—including the Army, Navy, Marine Corps, Air Force, Space Force, and Coast Guard. This benefit typically covers up to $250 per credit hour, with an annual cap of $4,500.

Each branch manages its own TA process, so eligibility, coverage limits, and application procedures may vary slightly. The best first step for any service member is to contact their installation education office and schedule an appointment with a guidance counselor to review options and begin the application process.

While military spouses do not qualify for DoD Tuition Assistance, Bellevue University extends its Military Preferred Partnership (MPP) tuition rate to spouses.

Additional Military Education Benefits

For veterans, the Post-9/11 GI Bill (Chapter 33) remains the most widely used VA education benefit, covering tuition, housing, and other education-related expenses. In addition, veterans may qualify for a range of other programs depending on their service history and circumstances, including:

• Montgomery GI Bill: Active Duty (Chapter 30)
• Montgomery GI Bill: Selected Reserve (Chapter 1606)
• Veteran Readiness & Employment (VR&E, Chapter 31)
• DEA: Survivors & Dependents Educational Assistance (Chapter 35)
• VEAP: Veterans Educational Assistance Program (Chapter 32)

Bellevue University helps eligible students navigate these options through the Veteran Services Team, which provides guidance on benefits, personalized college financing plans, enrollment certification, tutorial support, and other veteran-specific services.

State Tuition Assistance Programs

Many states offer tuition assistance, grants, or scholarships to help residents access higher education—often through need-based or merit-based awards.

In Nebraska, programs include:

• Opportunity Grant (NOG): A need-based grant for residents attending eligible postsecondary institutions. Eligibility is determined through the FAFSA.
• Nebraska Promise: Provides free tuition at qualifying Nebraska colleges and universities for full-time undergraduate students (12+ credit hours per semester) working toward their first bachelor’s degree, with family incomes under $65,000 or Pell Grant eligibility.

Across the country, these state programs make higher education more accessible for residents and service members alike. By combining federal and state benefits, students can often significantly reduce their education costs.

Applying for tuition assistance can feel daunting, but breaking it into clear steps makes the process much more manageable. Here’s a practical guide:

1. Check Eligibility: Review your employer’s tuition assistance policy to confirm eligibility requirements, such as employment length, job role, or course approval.
2. Select Your Program: Identify the bachelor’s degree, master’s degree, certificate of completion, or courses you want to take and make sure they align with your employer’s approved programs.
3. Complete Employer Paperwork: Submit the required forms to your HR department or benefits administrator. This often includes course details, tuition costs, and expected outcomes.
4. Obtain Approval: Your HR or benefits team will review the application and confirm approval before tuition is paid. Make sure you understand any conditions, such as maintaining a minimum grade or committing to continued employment.
5. Consider FAFSA or State Requirements: If you’re using state tuition assistance or grants in combination with employer benefits, you may need to complete the FAFSA or other state-specific forms.
6. Enroll and Submit Documentation: Once approved, enroll in your courses and provide any documentation required for tuition payments or reimbursements.

By following these steps, employees can navigate the process with confidence, ensuring they fully leverage available tuition assistance programs. Unlike generic guides, this approach focuses on practical, real-world steps from an employee perspective, making it easier to take action.

Tuition assistance programs offer clear advantages for both employees and employers. For employees, these programs provide an opportunity to build new skills, advance careers, and reduce student debt, making higher education more accessible and affordable.

For employers, offering tuition assistance can improve recruitment and retention, while helping address the evolving needs of a multi-generational workforce. As technology and industry requirements shift, employees across all age groups—from entry-level professionals to experienced staff—need ongoing upskilling and professional development. Investing in education programs ensures employees stay competitive, adaptable, and engaged.

Bellevue University partners with 150 companies to provide employer tuition programs, helping organizations maximize the impact of their employee education benefits.

“After months of dedication, perseverance, and hard work, I’m thrilled to share that I have officially completed my Master’s of Human Resource Strategic Management! This journey has been challenging and rewarding, and I’m incredibly grateful for the support of my family, friends and mentors along the way. A very special thanks to Bellevue University for seeing me through my higher education path thus far, and of course Hy-Vee, Inc., for its unwavering support and generosity toward my education and professional development.”

– Sydni Haugaard, Retail Recruiter at Hy-Vee

Tuition assistance is more than just an employee perk—it’s a strategic tool for building skills, advancing careers, and staying competitive in today’s rapidly evolving workforce.

If you’re eligible, don’t let this opportunity go unused; check your employer’s tuition assistance policy, explore available federal and state programs, and take the first step toward upskilling and advancing your career today.