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Going back to school to get your MBA is a big decision. Especially as a full-time working professional who is already trying to balance life, work and a family.
While earning your MBA is an exciting new experience, it will also come with some tradeoffs that lead to a big reward: earning your degree and advancing your career.
One of the biggest considerations with an MBA decision is around the question of financing. Going back to school can take a financial toll on your budget and may be one of the biggest barriers students face. But, it doesn’t always have to be that way. Of course, we recommend finding an affordable MBA option (like the Professional MBA – an AACSB degree less than $20,000 in total tuition). Affordable tuition coupled with potential employer tuition reimbursement can minimize your out-of-pocket costs or student loan debt.
What is tuition reimbursement?
While using Federal Student Aid (loans) is one way to finance your education, employer-based educational benefits could be another way to pay for your MBA without having to pay that money back in the long run.
Typically organizations that offer employer-based educational benefits do so by offering tuition assistance (aka tuition reimbursement) that provide qualified employees a payment reimbursement of a specific amount of money per year (e.g. $5,250 per calendar year) to put towards their college classes after a course is completed with a passing grade.
Your company pays your tuition, and you put the knowledge and skills learned back into your company. It’s a gift that keeps on giving.
Is tuition assistance a benefit I can use?
Check your company’s website or talk to your manager, Human Resources, or Benefits department to ask what tuition assistance benefits are available to you.
If this is something they offer, get the details and ask what you need to qualify. You will need to pitch the idea to your supervisor and get their approval. Find more information in this Harvard Article about “How to Use—and Ask For—Employer Tuition Reimbursement Benefits.”
Be sure to ask about the “fine print”. Some employers require students to stay at the company for a certain amount of time following graduation, or else they must repay the tuition funding. It’s not uncommon for your employer to have you sign an agreement for use of the reimbursement funds.
How to: Maximize your employer’s tuition reimbursement for your Boise State Professional MBA.
Great! You found that your company offers a tuition assistance program. It’s time to do the research, plan ahead and make sure that you’re utilizing this resource to its fullest potential.
Here’s what you need to know –
1. How much money does your company offer for a college education?
Is the reimbursement paid as a total percentage of the program, or a maximum dollar amount per year? Be aware of what kind of “year” they’re talking about – calendar, academic or fiscal.
According to this Forbes article, the author explains: “Many employers offer up to $5,250 per year in tuition reimbursement for college courses. Under section 127 of the tax code, the IRS allows your employer to deduct the expense, and the benefit is not taxable to you as an employee.”
In our Boise State MBA programs, most students we serve receive $5,250 per calendar year in employer tuition reimbursement. Some receive more (like Boise State employees / spouses who receive $5 / credit hour for certain programs, including Professional MBA) – talk with your employer if you think there is flexibility for an increase.
2. How is the money reimbursed and when?
Remember – a tuition reimbursement is essentially a refund. Meaning, you pay for your courses upfront before the tuition deadline, then your company refunds the money back into your pocket after completing the course with a passing grade. Few employers that we work with pay the university or you directly up-front.
What if you don’t have the cash flow to pay for your first courses out of pocket? No problem. It is common for students to start with federal loans to pay for their first semester tuition. Once they get their company’s tuition refund for their first set of classes, they can then flow that reimbursement into paying for their next term.
3. How much does a Professional MBA program cost?
You can view the per-credit and per-term tuition and fees here for both Idaho residents and non-residents.
4. What are the start and end dates for each term? When do you plan on taking courses?
With the Professional MBA curriculum, students must take all fall and spring classes in sequential order with their classmates. However, they have the flexibility to take required summer courses during their summer of choice.
See our course plan scenarios web page showing the different summer options.
The bottom line
The key to maximizing your employer’s tuition benefit boils down to knowing when you plan on taking summer courses, and what your employer’s tuition benefit offers. You don’t want to leave any “free” money on the table.
While Boise State’s professional MBA program can be completed in an average of 2 years, summer courses can be arranged so that they span 3 calendar years:
| Month | May-July | Aug-Dec | Jan-April | May-July | Aug-Dec | Jan-April |
|---|---|---|---|---|---|---|
| PMBA (2 year avg. completion) | Year 1 | Year 2 | ||||
| Calendar Year (Jan-Dec) | Year 1 - $5,250 | Year 2 - $5,250 | Year 3 - $5,250 | |||
As you can see, depending on your company’s employer tuition benefit policies, it’s possible to get three years of employer tuition money for a two year MBA program!
Let’s break that down into dollars:
| Company reimbursement / year = $5,250 | Idaho Resident | Non-Idaho Resident |
|---|---|---|
| Total program cost (2 yr completion)* = | $18,768 | $29,612 |
| - Company tuition reimbursement (for 3 yrs) = | $15,750 | $15,750 |
| + Approx. book cost estimate** = | $2,500 | $2,500 |
| Approx. Total out-of-pocket exp. after reimbursement = | $5,518 | $16,362 |
*Books are not billed by the university and therefore non usually included in tuition reimbursement – plan to pay for out-of-pocket your company’s plan says otherwise.
**Cost per credit calculation is based on the 2021-22 University Fees for Graduate Students. Fees and total program cost are subject to change. Total cost does not include textbooks. Estimate $2,000-$3,000 total for textbooks (approx. $60/credit).
It’s as easy as that! Getting the information and planning ahead will help you maximize your company benefit and keep your wallet happy in the long run.
Not a Professional MBA student but have more questions?
Contact our team by emailing us at GraduateBusiness@boisestate.edu.
Resources for current students
Many of you who are receiving tuition assistance from your employer will need to submit something for reimbursement. Here are some helpful reports and resources you’ll need:
- How To: Print Unofficial Transcript – shows all your completed courses, grades, and GPA. You should see your official grades recorded here within 10 days after the last day of class at the latest. Most employers will accept an unofficial transcript for tuition reimbursement.
- How To: View Term Summary Report – helpful if your HR department needs to see the name of the course along with the tuition charge on the same statement.