Tuition Benefit Policy

In addition to the "full-time, benefits eligibility" and the service requirement, eligibility for tuition benefit is premised on the student's application and admission into the desired academic program.

Admission into any academic program is never guaranteed, and competition may be intense for a limited number of available openings. The application and admission processes with their stated requirements and requisite costs are the student's responsibility, and must be complete before the employee, spouse, legally domiciled adult, and/or dependent child is eligible for any tuition benefit.

• Students who are eligible and receiving an employee, spouse, legally domiciled adult or dependent child tuition benefit must remain in strict compliance with all academic, financial and financial aid policies and requirements, including but not limited to the satisfactory academic progress policy: http://www.luc.edu/academics/catalog/undergrad/reg_academicstanding.shtml
• Failure to comply with stated policies and requirements will result in forfeiture of the tuition benefit for current or future terms. 

None at this time

All requests for faculty graduate tuition benefits in the School of Medicine and any Ph.D. programs must be made in writing to the Health Sciences Campus Office of Faculty Administration. The request for use of the tuition benefit should:

• Be made well in advance of the academic term and/or application to the academic program.
• Include the endorsement of your department chair, department director and dean
• Reflect a summarized list of reasons regarding how the investment (of your time and university resources) would further your career and the work of the department or school

If your request is approved - enroll and complete tuition benefit process.

Exclusions 

The majority of academic programs are included in the University Tuition Benefits except for these limited exceptions that are excluded below: 

Faculty and Staff:

• Arrupe College                 
• Stritch School of Medicine
• School of Law
• Executive Education programs
• Certain executive MBA cohort-based programs
• English as Second Language Programs (ESL)
• No Limited Enrollment or Cohort Based Programs
• *Continuum Programs (non credit, fee based programs)
• Any program that is not conferred at Loyola University Chicago.
• *Non Credit Certification Programs 

*Certain certificates are covered only if the program charges tuition by the credit hour, are billed through LOCUS and follow the other aforementioned requirements. If the courses are taught by the Continuum program or are fee based and DO NOT CHARGE TUITION, the program will not be covered by the tuition benefit. Please contact your program directly prior to enrollment to clarify the course structure and how the course is billed.

Dependents of Faculty and Staff:

• Arrupe College
• All graduate and professional academic programs (excluded)
• Executive Education (excluded)
• Non Credit; Certificate Programs (excluded)

Additional Exclusions Include:

• Program Deposits
• Co-pays
• Technology, instructional, and any other fees associated with courses taken
• Books
• Room and Board
• Any other charges billed outside of the rate of tuition
• Late fees

Almost all undergraduate and some certificate programs are covered under the employee tuition benefit program. Exclusions, enrollment caps or specialized application procedures will be determined by the Chief Academic Officer.

• The Employee Tuition Benefit pays 100% of tuition for eligible employees taking undergraduate or eligible certificate courses.
• At no time will the tuition benefit apply to more than three courses per semester (9 semester hours) or two courses per quarter (8 quarter hours).

The Educational Assistance Policy will allow eligible faculty and staff the ability to use the tuition benefit for all academic semesters/quarters which include J-Term and all summer sessions.  

• If you have previously been awarded a tuition restricted merit scholarship and/or other institutional aid (IE. Loyola Grant, Director’s Award, Heritage Award, etc.) and are then awarded the tuition benefit, the previously awarded scholarship(s)/grant(s) will become honorary and cannot be used to cover the remaining tuition, fees, room and board, or other direct or in-direct expenses.

For exclusions please refer to the Benefit Coverage Exclusion section.

• Most graduate and professional programs (see the exclusion information above) are covered under the graduate employee tuition program. They are specialized courses of study and require a special time commitment from the faculty and staff member in the advancement of their career and reflect a significant investment by the university in the faculty or staff member.
• Exclusions, enrollment caps, or specialized application procedures will be determined by the Chief Academic Officer and posted annually in this policy. For exclusions please refer to the Benefit Coverage Exclusion section.
• The graduate employee tuition program pays 100% of tuition for eligible employees taking graduate and professional program courses.
• At no time will the graduate tuition benefit apply to more than two courses per semester (8 semester hours) or two courses per quarter (8 quarter hours).
• The Educational Assistance Policy will allow eligible faculty and staff the ability to use the tuition benefit for all academic semesters/quarters which include J-Term and all summer sessions.
• Graduate Tuition Benefit is Taxable, please refer to "Guidelines: application Procedures & General Information" below for more information.
• If you have previously been awarded a tuition restricted merit scholarship and/or other institutional aid (IE. Loyola Grant, Director’s Award, Heritage Award, etc.) and are then awarded the tuition benefit, the previously awarded scholarship(s)/grant(s) will become honorary and cannot be used to cover the remaining tuition, fees, room and board, or other direct or in-direct expenses.

All faculty/staff graduate tuition benefits received in excess of $5,250 per calendar year must be taxed as non-cash compensation and added to an employee's taxable wages. This means your net pay (take-home) will be reduced due to additional payroll taxes being withheld. Taxes are assessed over the pay periods of the academic term in which the tuition benefit is received. Additional information can be found on the IRS website.

*The annual tax limit for tax-free employer provided education assistance will be indexed for inflation beginning after calendar year 2026, meaning the current limit of $5,250 will gradually increase over time.  

Graduate Tuition Benefit is Taxable

Federal law currently makes graduate tuition benefit provided in excess of $5,250 in a calendar year subject to federal and state income tax, as well as social security withholdings. 

Graduate tuition benefit received in excess of $5,250 in a calendar year is imputed as income and taxed based on current income tax tables and tax bracket.

Additional tax withholdings for this taxable tuition benefit will be taken from paychecks during the course of the academic term for which tuition benefits apply.

The University cannot provide tax advice or counsel, so faculty and staff should consult with their personal tax advisor.  Employees may seek a course specific tax exemption under narrow IRS rules for education related to your current duties and responsibilities. 

Information on “qualified educational expenses” can be found on the Internal Revenue Service website, see IRS Publication 970 on Tax Benefits for Education at: http://www.irs.gov/publications/p970/ 

Undergraduate Tuition Benefit is non-taxable

Federal law currently considers the employee, spouse or dependent child undergraduate tuition benefit as a *non-taxable benefit at educational institutions as defined by the Internal Revenue Code.

*Please note, any Legally Domiciled Adult (LDA) undergraduate tuition benefits received is taxable and imputed as income on the employee's paycheck. Human Resources will add the value of the benefit to the employee's bi-weekly or monthly pay and the employee will be taxed on that amount.

Most undergraduate courses and programs are covered under the Employee Tuition Benefit Program. Exclusions, enrollment caps, and specialized application procedures are determined by the Chief Academic Officer. For exclusions, please refer to the Benefit Coverage Exclusion section. 

• The spouse, legally domiciled adult, and dependent child tuition benefit pays 90% of undergraduate tuition (including Rome Center tuition and other selected Study Abroad Programs) of full-time benefits-eligible employees, retirees, and deceased employees. Note the benefit covers tuition only and does not include student activity or instructional fees, room and board, or other expenses.
• The Tuition Benefit will allow the dependents of eligible faculty and staff the ability to use the tuition benefit for all academic semesters/quarters, which include J-Term and all summer sessions.

Dependents
Dependents are only eligible to receive the tuition benefit for undergraduate courses and programs. Dependent children, spouses, or LDA’s are not eligible for the tuition benefit for graduate programs. Eligible dependents are able to receive the benefit for Summer Semesters (all sessions), Fall, J-Term, Spring, and approved study abroad programs. All dependents are subject to approval and eligibility before receiving the tuition benefit. No verification from Human Resources is required for participation once the eligibility has been approved. 

*Loyola University's definition of dependent child, legally domiciled adult, and spouse follows the guidelines set forth by the Internal Revenue Service.  A dependent child is no longer eligible for the tuition benefit once they turn the age of 24. 

The student will pay a co-pay per each academic term towards tuition if the student is enrolled. This co-pay will apply to all semesters including J-term and all Summer Sessions. Each summer session is subject to their own co-pay. 

Note: Beginning July 1, 2017 the co-pay will be 10% of the full tuition cost.

1.  FACHEX is an acronym for Faculty and Staff Children Exchange Program. It is an undergraduate tuition remission program for children of full-time, benefits-eligible faculty and staff of participating institutions.

• It permits dependent children of full-time, benefits-eligible faculty and staff an opportunity to receive the same tuition benefit offered at 25 of the 28 Association of Jesuit Colleges and Universities.
• Details, benefits, and application procedures vary by college and university. See information on the FACHEX programs which are available and updated at www.luc.edu/finaid/fachex.shtml.

2.  Tuition Exchange is a reciprocal scholarship opportunity at over 677 member schools and is effective at the onset of the 2023-2024 academic year. Dependent children of benefits-eligible full-time faculty and staff who are pursuing their first bachelor’s degree may apply for a scholarship at participating “host” schools.

• The Tuition Exchange Program is administered by the Financial Aid Office. Details, benefits, and application procedures are available at https://www.luc.edu/finaid/fachex/. 
• Tuition Exchange manages a national scholarship exchange program for the dependent children of employees of member schools.
• This is a competitive scholarship program based on employee eligibility and acceptance of the student by the import institution.  It is important to understand that each TE Program institution uses its own criteria to determine the selection of recipients and the value of the TE Scholarship.

In order to maintain eligibility for the benefit, it is the employee's responsibility to comply with all the guidelines and deadlines explained in this document.

Financial Aid Application and Process (UPDATED)

Employees or their dependents who are admitted at least half-time in a degree-granting program may utilize the Tuition Benefit without completing the Free Application for Federal Student Aid (FAFSA).

The FAFSA is not required to receive the Tuition Benefit.

However, individuals who wish to be considered for federal student loans or other federal or state financial aid programs must complete the FAFSA and any associated financial aid processes, including submission of required documentation and signatures, in accordance with deadlines established by the Office of Student Financial Aid.

The FAFSA form is available online at https://studentaid.gov/ or through the Office of Student Financial Aid.

Employees and/or their dependents are responsible for complying with all applicable financial aid deadlines if they choose to pursue federal or state aid. Failure to meet those deadlines may impact eligibility for financial aid but does not impact eligibility for the Tuition Benefit.

Tuition Benefit Process

The process for determining eligibility for employee and dependent tuition benefits is automated. Employees are not required to submit a form to Human Resources for each academic term.

To ensure accurate eligibility determination for dependent tuition benefits, employees are responsible for maintaining complete and accurate dependent information in Human Resources records, including full legal name, date of birth, and Social Security Number (if applicable).

Employees may add, update, or review dependent information through the Employee Self-Service system.

Failure to provide accurate dependent information in a timely manner may result in delays or denial of the Tuition Benefit for the applicable academic term.

Employees and dependents who do not possess a Social Security Number but are otherwise eligible should contact Human Resources directly.

Fees and Payments

The Tuition Benefit applies to tuition only. Employees are responsible for all other charges, including but not limited to room and board, fees, deposits, and co-pays.

Payment must be made in full, or acceptable payment arrangements must be established with the Bursar’s Office, by the applicable payment deadlines for each academic term.

Failure to make timely payments or establish an approved payment arrangement may result in cancellation of enrollment and/or suspension of the Tuition Benefit for current or future academic terms.

Deadlines

Employees and their dependents who currently meet the Tuition Benefit eligibility requirements must comply with all applicable deadlines related to registration, fee payments, and Tuition Benefit eligibility requirements.

Failure to meet deadlines, provide required dependent information, or resolve outstanding balances may result in loss or suspension of the Tuition Benefit for the applicable academic term and, if ongoing, for future terms.

General Information

When a Class May be Taken?
Employees may take classes outside of their normal work schedule. Any exception to this rule is a very rare exception and must have a written endorsement by the supervisor that includes the agreed arrangements to make up all missed time and work and a signed authorization by the appropriate Vice President or Provost.

Graduate Tuition Benefit is Taxable
Federal law currently makes graduate tuition benefit provided in excess of $5,250 in a calendar year subject to federal and state income tax, as well as social security withholdings. 

• Graduate tuition benefit received in excess of $5,250 in a calendar year is imputed as income and taxed based on current income tax tables and tax bracket.
• Additional tax withholdings for this taxable tuition benefit will be taken from paychecks during the course of the academic term for which tuition benefits apply.
• The University cannot provide tax advice or counsel, so faculty and staff should consult with their personal tax advisor.  Employees may seek a course specific tax exemption under narrow IRS rules for education related to your current duties and responsibilities. 
  • Information on “qualified educational expenses” can be found on the Internal Revenue Service website, see IRS Publication 970 on Tax Benefits for Education at: http://www.irs.gov/publications/p970/ 

Undergraduate Tuition Benefit is non-taxable
Federal law currently considers the employee, spouse or dependent child undergraduate tuition benefit as a *non-taxable benefit at educational institutions as defined by the Internal Revenue Code.

*Please note, any LDA tuition benefit received is taxable and imputed as income for the employee. Human Resources will add the value of the benefit to the employee's bi-weekly or monthly pay and the employee will be taxed on that amount.

Related Documents and Web Links:

• Up to date list of Academic Program Exclusions or Special Application Procedures are found within this policy under Program Exclusions. 
• Up to Date list of Financial Aid, Tuition Benefit and Payment Deadlines can be found at www.luc.edu/bursar or www.luc.edu/finaid

Forms:

• Financial Aid Forms on-line at https://studentaid.gov/

Admissions:

• Undergraduate Admissions admission information and processes www.luc.edu/undergrad
• Graduate and Professional programs admission information and processes at www.luc.edu/gpem
• Academic Progress policy on-line at www.luc.edu/finaid/aid-process/responsibilities/academic-progress/
• Tuition Exchange program at Jesuit Institutions (FACHEX) on-line at www.luc.edu/finaid/fachex.shtml

Revised: 10/07, 9/08, 4/09, 6/09, 10/10, 2/11, 10/11, 12/16, 5/18, 6/18, 12/18, 1/23, 2/24, 6/24, 04/25, 12/25, 4/26