Frequently Asked Questions about the Tuition Benefit

For employees and their spouses, the tuition reduction benefit only applies to the first 9 credit hours for the fall and spring terms and the first 6 credit hours for the summer and winter sessions. Students who take more than the maximum will be charged the full tuition amount for the credit hours that exceed the maximum.

There is no enrollment limit for dependents.

No, the student is responsible for all books and applicable fees.  Some fees, such as the transportation fee, are waived if an NAU employee is the student.

• Employee – Financial Aid Trust Fee, Information Technology Fee and all applicable class and program fees are required to be paid. The transportation fee is waived.
• Spouse – All applicable university, class, and program fees are required to be paid. The transportation fee is not waived.
• Dependent Child – All applicable university, class, and program fees are required to be paid. The transportation fee is not waived.

No, each university defines what charges are considered ‘Fees’ and what is considered ‘Tuition’. In particular, ASU charges sizable program specific tuition for some graduate and online campus programs which they consider a fee and which the tuition reduction benefit does not apply. 

Students should check with their university to determine what is considered a ‘Fee’ and what is considered ‘Tuition’.

Yes, the benefit is the same for all three state universities, but each has its own tuition amounts and fees. The student total out-of-pocket cost will be different depending on the university and program in which the student is enrolled.

Some programs at ASU and UA do not allow the tuition reduction benefit to be applied to the program.  Please check with each university to ensure your program accepts the tuition waiver.

It depends on the program.

• Exchange Programs:  For exchange programs including “bilateral” and “ISEP”, you pay regular tuition directly to NAU and therefore the benefit can be used for tuition only.
• Faculty-Led Programs: The benefit cannot be used for Faculty-Led Programs.
• Provider Programs:  The benefit cannot be used for Provider Programs.

Yes, the benefit is available for graduate and undergraduate degrees. The benefit for graduate-level degree programs can be considered taxable income.

Review the Tax Treatment section below for more details.

NAU employees may use the benefit for students enrolled in an undergraduate degree through Personalized Learning. ASU and UA employees are not eligible to use the benefit for NAU’s Personalized Learning Program.

Note: The Graduate Personalized Learning Program is not covered under the Employee Tuition Reduction Program.

The following individuals are eligible for reduced tuition rates for themselves, their spouse and eligible dependent children:

• Active regular employees
• Official NAU retirees
• Certain employees of affiliated units
• Some laid-off employees, former employees receiving long term disability payments, and spouses and dependent children of deceased employees may also be eligible.

For complete details on who is eligible for the benefit review the Qualified Tuition Reduction (QTR) Program – ABOR policy 6-902 along with the Education Assistance Plan (EAP) – ABOR policy 6-903.

The program uses the definition of a child from IRS Publication 501. In most cases your child will meet the definition of a dependent child for a given tax year if your child meets the following criteria:

• Age: Is under age 30
• Tax Dependent: Is your tax dependent or could be your tax dependent except for a divorce decree.  If the child is married, they do not file jointly with their spouse.
• Citizenship: Is a citizen or resident of the US, Canada or Mexico
• Residency: Resides with you for more than half the year including any time away for college.  There is an exception for a qualifying dependent of non-custodial parent.
• Support: Provides less than half of their total support, if your child is under age 24, or they do not earn more than the personal exemption, if your child is between ages 24 – 30.

Determining if your child is eligible

• IRS Publication 501: Exemptions, Standard Deduction, and Filing Information section on “Exemptions for Dependents” can help you determine if your child meets the IRS definition of child.
• Review the Dependent Eligibility Questions which includes affidavit questions in the e-TRP
• Contact your tax advisor if you have questions about how to determine if your child meets the definition of a child under IRS code 152(f)(1).

Learn about an exception for divorced or separated parents

No, this program is not available to domestic partners and their dependent children.

No, the benefit is only available to active regular employees who are eligible for benefits.

Graduate students receiving a graduate assistantship appointment are generally accompanied with tuition reduction benefits up to a 75 percent waiver of tuition costs during the fall and/or spring terms.

Graduate Assistants also eligible to the Employee Tuition Reduction Program benefit must choose between the two tuition benefit options and then inform the Graduate College.

You must be an active regular employee who is eligible for benefits on the first day of NAU’s semester to qualify for the Employee Tuition Reduction Program.

If you received the tuition reduction benefit for you, your spouse or dependent child but terminate employment before the first day of classes, the tuition reduction amount will be removed from the student’s account and the student will be responsible for the full tuition amount.

Note: If you are an active regular employee who is eligible for benefits on the first day of NAU’s semester, you qualify for the Employee Tuition Reduction Program benefit for that semester, even if you terminate after the start of NAU’s semester.

The e-TRP form is available 90 days prior to the first day of the semester\term and the form will close for a semester\term on the last day of instruction.

Review the Important Dates and Deadlines for NAU’s submission and posting dates for each semester\term.

Employees from ASU or UA do not use the e-TRP. They should follow the process at their university, including any submission deadlines, even if the request is for a NAU student.

Process for ASU employee                Process for UA employees

To make sure the tuition reduction is applied to the student’s account by the tuition due date you should submit your e-TRP at least 10 days prior to the tuition due date.

Review the Important Dates and Deadlines for NAU’s submission and posting dates for each semester\term.

Employees from ASU or UA do not use the e-TRP. They should follow the process at their university, including any submission deadlines, even if the request is for a NAU student.

Process for ASU employee                Process for UA employees

Students are responsible for all tuition and fees and for ensuring the employee submits the e-TRP in time to be applied by the tuition due date.

If the employee does not submit the e-TRP in time, the student can enroll in a tuition payment plan or pay the account balance in full to avoid additional fees or being dropped from courses for non-payment.  The student will then be reimbursed once the tuition reduction has been applied to the student’s account.

Review the Important Dates and Deadlines for NAU’s submission and posting dates for each semester\term.

If you need additional assistance, please contact Student Accounts at sdas@nau.edu.

NAU students should refer to the Important Dates and Deadlines for the first date that eTRPs are posted for each semester\term.

If you submit your eTRP after the first posting date, it should be posted within 1-2 business days of your eligibility being verified.

No. The reduction amount will adjust for any schedule changes made within the term.  This is true for requests submitted by NAU, ASU and UA employees.

The student is subject to the refund rules at the university they attend.  For NAU, the Refund Policy applies to tuition waivers granted under the e-TRP.

Classes dropped voluntarily after the refund period ends will remain taxable as long as the waiver meets the other criteria for taxation (currently zero percent refund after the fourteenth calendar day for 8-to-16-week classes and after the seventh calendar day for three and five week and dynamically dated classes).

Visit the Refund Policy web page to view NAU’s refunds policy.

If you need additional assistance, please contact Student Accounts at sdas@nau.edu.

In some cases, the employee is taxed on all or part of the amount of the tuition reduction benefit.

Undergraduate program: Amount of the tuition reduction for student enrolled in an undergraduate program is not taxable to the employee.

Graduate program: All or part of the benefit may be taxable to the employee if the student is enrolled in a graduate level program, but how much the employee is taxed is based on if the student is the employee or the employee’s spouse or dependent child.

• Employee: The first $5,250 of reduced tuition for graduate level classes is not taxable, but the employee will be taxed if the amount of the reduced tuition exceeds $5,250 within a tax/calendar year.
• Spouse: An employee will be taxed on the full value of the tuition reduction for graduate level classes.
• Dependent Child: An employee will be taxed on the full value of the tuition reduction for graduate level classes.

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

Examples

1. An undergraduate student, who is a dependent child, receives $15,000 of tuition reduction benefit. The employee is not taxed on the tuition reduction benefit.
2. 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.
3.  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 on $4,750, the amount of the tuition reduction over $5,250.
4. A graduate student, who is the employee’s spouse, received a $2,000 tuition reduction in the tax/calendar year. The employee, not the spouse, is taxed on the entire $2,000 of tuition reduction.

If you have any questions about taxation, please submit a Financial Administration and Technical Support request in the Employee Service Center, selecting “eTRP Taxation” for the Inquiry Type.

Employees may be allowed to attend university classes during working hours if approved by their department. Employees may use vacation or compensatory time, if eligible, or if approved they can make up the time before or after normal working hours. All employees enrolled in classes during scheduled working hours are expected to fulfill their assigned responsibilities and obligations.

No.  ASU and UA both have their own process for their employees to request a tuition reduction for NAU students.

• ASU employees should go to tuitionreduction@asu.edu or  https://students.asu.edu/tuitionreduction for information on ASU’s application process.
• UA employees should go to https://bursar.arizona.edu/ or  https://hr.arizona.edu/employees-affiliates/benefits/educational-benefits for information on UA’s application process.

NAU’s Educational Partnership team is creating several partnerships with organizations in Arizona. This partnership provides a 10% tuition reduction for students enrolled in a graduate program at NAU. Tuition Reduction Partnerships (TRP) that are currently active include, Arizona Department of Administration, Coconino Community College, City of Phoenix, City of Tucson, Phoenix Children’s Hospital, Valley Metro, and Maricopa Community College District and others. See the Organization Partnership page for more information.

Students who inquire about a partnership should check their organization’s HR website for more information on how to apply for the benefit.