Employee Tuition Reduction Program

Another benefit the university offers regular employees is the tuition reduction sponsored by the Arizona Board of Regents.  The Qualified Tuition Reduction (QTR) Program - ABOR policy 6-902 along with the Education Assistance Plan (EAP) - ABOR policy 6-903 allows employees, their spouse and their eligible dependents to take advantage of educational opportunities at a reduced tuition rate at the following universities:

  • Northern Arizona University (NAU)
  • University of Arizona (UA)
  • Arizona State University (ASU)

Who is eligible for the benefit?

You, your spouse or dependent child can pay a reduced tuition rate up to a maximum number of credit hours.

Learn more about who is eligible for the benefit

What is the benefit?

Fall and Spring

  • Employee, Retiree or Affiliate - Tuition for students taking 1-9 credit hours is reduced to $25 a semester.
  • Spouse - Tuition for students taking 1-9 credit hours is reduced to $25 a semester. 
  • Dependent – Tuition for student taking 1-9 credit hours is reduced to 25% of actual resident tuition. There is no enrollment limit.  

 Actual resident tuition is charged for any hours taken over 9 hours for employees and their spouses.  Students are responsible for all books and applicable fees.   

 Summer and Winter

  • Employee, Retiree or Affiliate - Tuition for students taking 1-6 credit hours is reduced to $25 a semester.
  • Spouse - Tuition for students taking 1-6 credit hours is reduced to $25 a semester. 
  • Dependent – Tuition for students taking 1-6 credit hours is reduced to 25% of actual resident tuition.There is no enrollment limit.

Actual resident tuition is charged for any hours taken over 6 hours for employees and their spouses.  Students are responsible for all books and applicable fees.   

How do I submit a request

Effective June 30, 2017 there is a new process to request the Employee Tuition Reduction Program Benefits.

Go the e-TRPProcess web page for information on how to submit an e-TRP and the link to the form.

What is not covered?

The tuition reduction benefit does not apply toward books, applicable fees, program fees or tuition charged for hours exceeding the maximums listed above. Fees can vary based on the university, type of student or program. You should contact the institution you wish to attend for their current tuition rates/fees.

Review NAU Tuition and fees

What is the benefit for the Personalized Learning program?

The tuition reduction benefit for the Personalized Learning program is only available to NAU employees/retirees and their eligible spouse or dependent children. Students enrolled in a degree program through Personalized Learning must contact Personalized Learning to find out the amount of the tuition reduction benefit for this program. Employees/retirees from ASU or UA are not eligible to use the tuition reduction benefit for the Personalized Learning program.

Contact pl@nau.edu for more information. 

Is the benefit taxable?

The tax treatment is different for undergraduate and graduate level courses.  

  • Undergraduate level courses: The tuition benefit for undergraduate courses for employees and their dependents is not taxable. 
  • Graduate level courses: The first $5,250 of the benefit for graduate level courses taken by the employee is not taxable, but any amount over $5,250 will be taxable to the employee as income. An employee will be taxed on the full value of a tuition waiver for graduate level courses for a spouse or dependent.

 The tax treatment of tuition reductions for both undergraduate and graduate level courses is subject to change by the IRS.

Tax Treatment Examples

An undergraduate student, who is and dependent child, receives $15,000 of tuition reduction benefit.  

The employee is not taxed on the tuition reduction benefit.

 

A graduate student, who is the employee, receives $5,000 of tuition reduction for the tax\calendar year.   

The employee is not taxed on the tuition reduction benefit. 

 

A graduate student, who is the employee, receives $10,000 of tuition reduction for the tax\calendar year. 

The employee is not taxed on the first $5,250 tuition reduction benefit. The employee is taxed of $4,750 the amount of the tuition reduction over $5,250.