Tuition Waiver Program

Regulations for tuition waiver program:

• Covers only the cost of tuition and associated fee for the course the waiver is to be used for; does not cover other program fees or course related expenses
• Most courses, graduate certificate programs, distance education, & extension programs within the UNC System that earn academic credit are eligible for the tuition waiver program; course auditing may also be applicable
• Continuing education workshops and seminars that provide continuing education units (CEU) are not eligible for the tuition waiver program
• For a course enrollment to be approved, the applicant must be academically eligible to enroll in the pertinent course and space must be available
• Employee must complete the admissions process and be registered for courses with the UNC System School prior to submitting the tuition waivers

Eligibility Requirements for the tuition waiver program:

• Permanent, probationary, and time-limited employees who work 30 hours or more per week for 9 months or more out of the year
• Must be enrolled in one of the mandatory state retirement programs- either TSERS or ORP.
• The program is only eligible to time-limited employees during their current employment period. For example, if a time-limited employee’s period ends in June of 2024, a request to use the program for a course in September of 2024 would past the employee’s eligibility period and therefore, the request would be denied
• Meet normal work obligations and continue the same employment status for the entire term during which the course will be taken. Otherwise, the employee shall be responsible for payment of all applicable tuition and fees
• Take courses outside of normally scheduled work hours OR the employee must use own Vacation Leave, Comp Hours, or Adjusted work hours with Prior Approval from Direct Supervisor
• All eligible UNC System employees may utilize the Tuition Waiver program at any of the UNC System schools, but it is not available for their dependents

Regulations and Eligibility Requirements for both the tuition waiver and the summer benefit programs for Law Enforcement Officers:

• Law enforcement officers (excluding student employees who are working as part-time law enforcement officers) may enroll in an unlimited number of courses per academic year. In addition to the other requirements of the tuition waiver program, enrollment in courses by a campus law enforcement officer shall be subject to approval by the officer’s campus police chief or director of campus safety and security. Enrollment in courses by the campus police chief or director of campus safety and security is subject to approval by the chief’s or director’s immediate supervisor.
• Law enforcement officers with a probationary, time‐limited, or permanent appointment employed 20 or more hours per week on a continuing basis, regardless of eligibility for participation in either mandatory retirement program (TSERS) or (ORP) are eligible. Temporary staff, including student temporary staff, are not considered law enforcement officers for this regulation and are not eligible.

Tax Information For Educational Expenses

Undergraduate and Graduate Level:

• I understand that I will be responsible for the full tuition and fees of any additional course(s) not covered by the Tuition Waiver and/or Summer Tuition Benefit I understand that I must continue the same employment status with UNCW for the duration of the course(s) otherwise, I will be responsible for all applicable tuition and fees. I have read and will comply with the regulations and requirements of the Tuition Waiver and/or Summer Tuition Benefit programs.
• I understand that if I am applying for financial aid, I must disclose tuition or fee waivers, tuition benefits, or educational reimbursements to the Office of Scholarships & Financial Aid as a part of my financial resources. Contact your Financial Aid counselor for specific details.

Graduate Level Only:

• IRS code section 127 states that all graduate coursework expenses, such as tuition waivers, summer tuition benefits, and/or tuition reimbursements, will be taxed after $5,250 and included in my gross income in a calendar year. Based on the working condition fringe definition under IRS code section 132(d), if the graduate course(s) maintain or improve skills needed in your present work and they are not part of a program of study that would qualify you for a new trade or business, then the educational assistance amount will not be considered taxable, even if you exceed $5,250. A change of duties does not constitute a new trade or business if the duties involve the same general type or line of work as your present employment.
  • Examples of education that help maintain or improve skills in your present work and that do not constitute a new trade or business:
    • An Information Technology Support employee enrolls in an educational MBA program with a concentration in cybersecurity.
    • An Elementary School Teacher takes courses to become a Secondary School
  • Examples of education that constitute a new trade or business, and thus, the University will be required to treat education expenses in excess of $5,250 in the calendar year as taxable and included in your gross income.
    • A third-year police officer takes courses that will lead to a master’s degree in business administration with a concentration in Finance.
    • An employee works as an accountant in the payroll The department prefers the employee to have a law degree but does not require it. At the employee’s own expense, they register and take courses for the regular curriculum that leads to a law degree.
    • An administrative assistant works in the library at a The employee is also taking courses at the university to earn their Bachelor of Science in Nursing (BSN) degree.

If you have any questions about these tax implications and need assistance, please contact one of our tax consultants at tax@uncw.edu.