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USHE Scholarship
The Utah System of Higher Education (USHE) Employee Scholarship will be accepting applications for the 24/25 academic year on January 2, 2024. See below for additional information.
USHE Scholarship Info

Applications for tuition reduction must be submitted prior to the first day of the semester.  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):

  1. Tuition Reduction Eligibility
  2. Eligible Tuition
  3. Additional Rules-5
  4. Taxability of Tuition Benefits
  5. How to Enroll

1. Tuition Reduction Eligibility:

2. Eligible Tuition

UOnline undergraduate programs are not eligible for the tuition reduction benefit as the tuition rate is already set below on-campus tuition rates. UOnline graduate programs and graduate certificates are eligible for the tuition reduction benefit. The UOnline webpage compares these courses to on-campus programs.  Employees with questions or concerns should reach out to the UOnline Success Team at

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 semester (including semesters where a scholarship may cover the entire cost of tuition).

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 unmarried 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.

If the application is not received and processed before the day tuition is due and tuition is not paid, all classes may be dropped. The student may re-enroll after tuition has been paid, but may not be able to enroll in a desired class if the class is full.

6. Utah System of Higher Education Scholarship:

The Utah System of Higher Education (USHE) Employee Scholarship will be accepting applications for the 24/25 academic year.


The Utah Board of Higher Education administers the USHE Employee Scholarship to support employees of USHE institutions who attend a different USHE institution as a student. Scholarship recipients may receive an award of up to 50% of tuition and fees. An annual award cap may be established based on program demand. The following information is for the 2024-25 academic year. Applicants must reapply for the scholarship annually if they wish to continue receiving the award in another academic year.


Employees must meet the following criteria:

  • Be employed full-time at a USHE institution (if eligible for funding, applicants must remain employed full-time at a USHE institution for the duration of the academic year).
  • Be admitted as a student to a different USHE institution than the one at which the applicant is currently employed and has declared intent to enroll.
  • Pursue a program of study leading to a certificate, degree, or other credential related to their current job duties or a related career progression.

Application Process:

All applicants must:

  • Enroll at a USHE institution other than your employer for the 2024-25 academic year.
  • Provide a brief explanation for enrolling at another institution other than the one at which you are employed (500 words or less).
  • Provide a letter on institutional letterhead from a Dean, Assistant Vice President, or any employee more senior stating that your educational pursuit is related to your current job duties or a related career progression.
  • Complete the 2024-25 USHE Employee Scholarship form between January 2, 2024 and March 20, 2024.

Enroll or make a change to your benefits