TUITION REDUCTION
Applications for Tuition Reduction are due on or before the last day to withdraw from semester-length classes. Check the Registrar’s website for specific dates. Applications will not be accepted after that date. Applications for Continuing Education/Lifelong Learning classes must be submitted before the class begins.
Please refer to Policy 5-305 for more information about tuition reduction for University of Utah employees. This site contains information about the following tuition reduction topics (scroll down to see more):
- Tuition Reduction Eligibility
- Eligible Tuition
- Additional Rules-5
- Taxability of Tuition Benefits
- How to Enroll
- Utah System of Higher Education Scholarship
1. Tuition Reduction Eligibility:
Faculty and staff are eligible for tuition reduction after six months of full-time (.75 FTE or greater) employment.
- One-half of the applicable resident or non-resident rate for undergraduate, graduate, and some Continuing Education courses.
- All undergraduate tuition reduction benefits and first $5,250 of graduate tuition reduction benefits are a tax-free benefit.
Spouses of current employees are eligible for tuition reduction after the employee has completed one consecutive year of full-time employment.
- One-half of the applicable resident or non-resident rate for undergraduate, graduate, and some Continuing Education courses.
- All undergraduate and Continuing Education tuition reduction benefits are a tax-free benefit. (All graduate tuition benefits are taxable to the employee.)
Domestic Partners of current employees are eligible for tuition reduction after the employee has completed one consecutive year of full-time employment.
- One-half of the applicable resident or non-resident rate for undergraduate and graduate tuition, and some Continuing Education courses.
- All tuition reduction benefits for a domestic partner are a taxable benefit to the employee.
Dependent children under the age of 26 of current employees are eligible for tuition reduction after the employee has completed three consecutive years of full-time employment with the University.
- One-half of the applicable resident or non-resident rate for undergraduate and graduate courses (does not apply to Continuing Education courses).
- All undergraduate tuition reduction benefits are a tax-free benefit. (All graduate tuition benefits are taxable to the employee.)
The children of an employee’s Domestic Partners are eligible for tuition reduction after the employee has completed three consecutive years of full-time employment.
- One-half of the applicable resident or non-resident rate for undergraduate and graduate courses (does not apply to Continuing Education courses).
- All tuition reduction benefits for an employee’s domestic partner’s child are a taxable benefit to the employee.
Volunteer faculty members who receive no pay from the University and their spouse or domestic partner are eligible for tuition reduction.
- One-half of the applicable resident or non-resident base tuition rate for undergraduate and graduate courses, and some Continuing Education courses.
- Reduction is not applied to any differential charges or special fees.
- All graduate-level tuition reduction benefits for the employee’s spouse are a taxable benefit to the employee. All tuition reduction benefits for the employee’s domestic partner are a taxable benefit to the employee.
Apply for the benefit using the Application for Reduced Tuition.
Emeritus faculty and staff members and their spouses are exempt from payment of tuition and student fees. Exemption does not apply to course special fees. Benefits may be taxable (see above).
A retired employee, their spouse or domestic partner and unmarried, dependent children under the age of 26 are eligible for tuition reduction.
- The retired employee must meet the University’s eligibility requirements for retirement (see Planning for Retirement).
- Apply for the benefit using the Application for Reduced Tuition.
The spouse and dependent children under the age of 26 of a deceased employee are eligible for tuition reduction if the employee had completed six months of continuous, full-time service immediately prior to their death. Rules for spouse and children above apply.
Other Benefits Quick Links
- Additional Benefits
- Employee Appreciation Day
- Employee Events & Recognition
- Employee Childcare
- OneU Cares Faculty & Staff Emergency Fund
- Public Service Loan Forgiveness
- Preferred Realtor Program
- Staff Excellence Awards
- Staff Recognition Dinner
- Staff Service Awards
- Tuition Reduction
- Training & Development
- Menu Item
2. Eligible Tuition
Utah System of Higher Education (USHE) Policy R824, Tuition Remission Benefits was recently amended to provide, tuition waivers “shall only apply to the undergraduate institutional tuition at degree-granting institutions….” Following that amendment, the university amended Policy 5-305, Reduced Tuition Programs, as well as the accompanying rule, to allow for additional tuition waivers for eligible university employees.
Effective with the Fall 2024 semester, the employee tuition benefit will apply to base undergraduate tuition, base graduate tuition, and undergraduate differential tuition. Employee tuition benefits for graduate program differential tuition (currently added by several graduate-level programs) will phase out over the next academic year, ending with the Spring 2024 semester.
Students who are employees or the eligible family member of an employee who are graduate students during the Spring 2024 and/or Summer 2024 semesters, will have a legacy benefit to continue receiving the reduction on graduate-level differential tuition for up to seven years as long as the following criteria are met:
- The employee remains in a position eligible for tuition reduction benefits with the university.
- The student is enrolled continuously (fall and spring semesters) in the same degree program.
- The employee applies for the reduced tuition benefit each fall and spring semester (including semesters where a scholarship may cover the entire cost of tuition). Employees must also apply for the reduced tuition benefit for summer semesters, if the student will be attending, in order to receive the tuition reduction benefit. Students are not required to attend summer semesters in order to retain the legacy benefit.
In the event there is a semester prior to the Fall 2031 semester where all three criteria are not met, the student will lose legacy status. In the event the student is unable to attend a semester because of a serious health condition, the employee may apply for a waiver of the second bullet for that semester. In no event will a student retain legacy status past the Summer 2031 semester.
3. Additional Rules:
- Eligibility requirements must be met before the official first day of the regular semester in which classes are to be taken.
- Tuition reduction does not apply to special fees, program fees, lab fees, miscellaneous fees, student insurance, text books or study abroad charges.
- There is no limit on the number of credit hours per semester.
- If an employee is also a spouse or dependent child of an employee, tuition benefits are available in either capacity, subject to the limitations specified in University Policy 5-305 and Rule 5-305A.
4. Taxability of Tuition Benefits:
The Internal Revenue Code (IRC) provides three sets of rules that may be used to determine whether a tuition benefit is taxable. If any of the three provisions applies, the tuition will be a tax-free benefit.
- IRC Section 117(d) (Qualified Tuition Reduction Programs). Tuition benefits provided to employees, their spouses and dependents for undergraduate courses may be excluded from taxable income. There is no dollar limit on the amount that may be excluded. However, Section 117(d) only applies to undergraduate courses – graduate level courses are taxable (unless the student is “engaged in teaching or research activities” for the University).
- IRC Section 127 (Educational Assistance Programs). The University of Utah Employee Educational Assistance Program qualifies as an Educational Assistance Program. Section 127 applies to employees only. The maximum amount that may be excluded from taxes under Section 127 in any year is $5,250. The Section 127 exclusion applies generally to graduate-level tuition benefits except for classes involving sports, games, or hobbies which are neither job-related nor required for a degree.
- IRC Regulation Section 1.132-1(f) “Fringe Benefit” rules. The IRS fringe benefit rules provide that tuition can be a tax-free benefit if the education “maintains or improves job skills”. Under these rules, the exclusion does not apply if the course is required to meet the minimum educational requirements of the employee’s job or if it qualifies the employee for a new occupation. The fringe benefit rules do not apply to tuition benefits provided to a spouse or child of an employee.
The University complies with federal and state tax regulations governing any applicable taxability, tax reporting and/or withholding of taxes on the University's reduced tuition and educational assistance programs. The value of any taxable tuition benefits will be added to the employee's taxable income and be subject to all employment tax withholdings near the end of the semester.
5. How to Enroll:
If you are an eligible employee, you may apply for tuition reduction benefits through UBenefits. You must submit a new application for each semester and your application must be submitted before the first day of the semester. When you apply, you will certify whether the courses the student will be taking are undergraduate or graduate-level courses. If the courses are graduate-level courses, there will be a few more questions you need to answer. You can enroll in future semesters at the same time.
6. Utah System of Higher Education Scholarship:
Please note: Continuation of this program—and the annual award amount—is subject to available legislative funding and administrative action. Finalized details will be shared after the 2026 legislative session wraps up in the spring. The information below is tentative for the 2026–27 application cycle.
Overview:
The Utah Board of Higher Education offers the Utah System of Higher Education (USHE) Employee Scholarship to support full-time employees pursuing education at a different USHE institution. The scholarship covers up to 50% of tuition and fees, though an annual cap will likely be established due to demand.
Eligibility Requirements:
- Be a full-time employee at a USHE institution
- Be admitted as a matriculated student to a USHE institution other than your current employer and plan to enroll during the 2026-27 academic year
- Pursue a degree/certificate aligned with your current job duties or a related career progression
- Continuing education programs are not eligible
Application Process:
- Submit an online application: Applications open May 4 and close June 12, 2026. A link will be provided closer to the opening date.
- Provide a brief statement: Submit a 500-word (or less) explanation of why you are enrolling at a USHE institution other than the one at which you are employed.
- Submit a letter of support: Provide a letter on institutional letterhead from a Dean, Assistant Vice President, Director, or any more senior administrator in your department stating that your educational pursuit is related to your current job duties or a related career progression.
Important Notes:
- Recipients must reapply each year to be eligible to continue receiving the scholarship.
- Recipients may receive an award for up to 4 years, 8 semesters, or the completion of an approved program whichever comes first.
- Final details, including confirmation about the continuation of the program will be available later in the spring.
- For questions, contact your institution’s HR department.