Home > Benefits > IU Tuition Benefit > Frequently Asked Questions

Tuition Benefit Frequently Asked Questions

Forms & Publications Subsidy rates Plan information

A. Eligibility
  1. What are the eligibility criteria for the IU Tuition Benefit?

    The following categories of individuals associated with Indiana University are eligible for the Tuition Benefit and the IUHS tuition waiver: 

    • Full Time* IU Academic and Staff Employees (including Residents) employed by the end of the first full week of classes for the semester or term.
    • Full Time* IU Academic and Staff Employees (including Residents) on an approved leave of absence, other than a leave without pay prior to active employment.
    • Former employees with IU Retiree status.
    • Disabled former full-time* Academic and Staff Employees (including Residents) receiving long-term disability benefits from a University-sponsored plan, Social Security Administration, or PERF.
    • Spouses and dependent children** of eligible employees

    To be eligible, an employee or qualified former employee must have such status by the end of the first week of classes or at the time of registration for IUHS courses.

    * Full-time is 75% FTE or greater. Employees in temporary positions or in positions less than full-time are not eligible for plan membership.

    ** Dependent children have additional eligibility requirements. See the Eligibility Section for more detail.

    A student who is not a US citizen or qualified alien (defined under 8 U.S.C. 1641) is not eligible for scholarships, grants, fellowships, or any aid paid for with institutional funds such as the IU Tuition Benefit.  For more information regarding citizenship verification go to kb.iu.edu/d/bbaw.

  2. What if I have questions about whether I am eligible or how to enroll in IU Tuition Benefit?

    Your campus Human Resources office will be able to determine if you are eligible and advise you how to enroll in the benefit.

    View campus contact information

  3. What if both parents are full-time Academic or Staff employees? Can/will the IU Tuition Benefit be received under both parents?

    Individuals are not eligible to receive benefits as both an employee and as a dependent of another employee or as a dependent of more than one employee.  For example, when both parents of a dependent child are employed by the University, one of the parents, but not both, may enroll the child in the Tuition Benefit.

  4. Can I offer tuition benefit to my child if I am divorced and my ex-spouse claims the child as their tax dependent?

    Yes, there are special rules for divorced or separated parents. Basically, if one or the other parent claims the child, both parents can claim that same child as a “dependent” for tuition benefit purposes.

  5. If my child has become emancipated can I still apply for the tuition benefit for them?

    No. The IRS says that “if a child is emancipated under state law, the child is treated as not living with either parent.”  This means the child would fail the residency portion of the IRS support test requirements in determining tax-dependency status, thus making them ineligible for the Tuition Benefit plan.

B. Award rates and benefit limits
  1. What is the tuition benefit for dependent children?

    The tuition benefit for dependent children is a subsidy of 50% of the Indiana resident undergraduate rate, up to the completion of a bachelor’s degree or up to a maximum of 140 credit hours of IU Tuition Benefit awards.

  2. What are the dollar limits for the employee or spouse IU Tuition Benefit?

    The rates may be found on the benefits amounts page.

  3. Will the employee and spouse benefit limits be based on the tuition at the campus where the student is enrolled or the campus where the employee works?

    The benefit is based on the campus where the student is enrolled.

  4. Will the benefit be based on the employee's standing (graduate or undergraduate) or on whether the class is a graduate class or undergraduate class?

    The benefit is based on the employee's standing. For example, if an undergraduate student takes a graduate class he or she will be charged the undergraduate rate and tuition will be covered up to the undergraduate IU Tuition Benefit limit.  

    If a graduate student takes an undergraduate class he or she will be charged graduate tuition and receive up to the maximum amount for graduate IU Tuition Benefit.

  5. What will my benefit be for the graduate or professional programs?

    All recipients will receive either the same benefit or a slightly higher benefit depending upon if they are enrolled in a graduate program or professional program (such as Law, Optometry, Dentistry, etc.).

C. Applying for the benefit
  1. Where do I find the IU Tuition Benefit application and where do I submit it?

    Applications can be found at the Tuition Benefit web page. You may enroll online or submit a paper form to University Human Resources.

  2. When do I apply for IU Tuition Benefit?

    For the 2016-2017 academic year, Tuition Benefit applications cannot be accepted after October 1.

    For academic years starting with the Fall 2017, in order for tuition for any semester/session to be covered by the Tuition Benefit, the employee or Retiree must 1) be eligible by the end of the first week of class and 2) submit an application by the semester deadline.

    Deadlines for each semester are listed below. After these deadlines no subsidy will be applied and the student will be responsible for their entire bursar bill for that semester. Applications may, however, be submitted in advance for up to a full academic year.

    Semester/Term Deadline
    Fall October 30
    Winter January 30
    Spring March 30
    Summer July 30

    In order to avoid being billed for the full tuition amount, employees are encouraged to submit this application for the academic year as soon as possible. If this application is processed after the student has been billed for tuition, the student must pay the full tuition bill by its due date.  Once the application is processed, the student will receive a refund through the office of the Bursar.

    Online is the simplest and fastest way to apply for tuition benefit. If you desire, you can still complete and submit the paper application form manually. In either case, a new application must be submitted for each academic year to University Human Resource Services.  

  3. When is the last day I can apply for IU Tuition Benefit?

    For the 2016-2017 academic year, Tuition Benefit applications cannot be accepted after October 1.

    For academic years starting with the Fall 2017, in order for tuition for any semester/session to be covered by the Tuition Benefit, the employee or Retiree must 1) be eligible by the end of the first week of class and 2) submit an application by the semester deadline.

    Deadlines for each semester are listed below. After these deadlines no subsidy will be applied and the student will be responsible for their entire bursar bill for that semester. Applications may, however, be submitted in advance for up to a full academic year.

    Semester/Term Deadline
    Fall October 30
    Winter January 30
    Spring March 30
    Summer July 30
  4. What if I have already submitted an IU Tuition Benefit application for the academic year?

    Applications can be submitted per term/semester or once for an entire academic year.  You will need to submit a new application each academic year or if you change the campus where you’ll be attending classes.

  5. How do I apply if I am attending multiple campuses?

    If you are attending multiple campuses during the same term, you will need to complete an application for each campus of attendance.

    If you are an employee/IU Retiree or spouse, be sure to review the multiple campus plan provisions.

  6. Who do I contact to find out the status of my application?

Please contact University Human Resources at or call (812) 855-1286 for more information.

D. Charges and billing
  1. Who do I contact to find out why my IU Tuition Benefit did not get applied to my bursar bill?

    If your tuition benefit does not get applied to your bursar bill you should contact University Human Resources at or call (812) 855-1286.

    If your application has been processed you should then contact the Office of the Bursar on the campus of enrollment to discuss your bill.

  2. Will the IU Tuition Benefit award apply to all the charges on my bursar bill?

    The benefit applies only to tuition charges. It does not apply to special fees such as those for laboratories, applied music, student teaching, education early experience, dissertation research (G901,B798 or equivalent), or rental of special equipment or facilities. Activity, health, technology and transportation fees are also not covered by the IU Tuition Benefit.

  3. What if I need help understanding the charges on my tuition bill, or believe that the charges on my Bursar bill are not correct?

    Contact the Bursar's office at the campus where you are enrolled.

  4. What happens if I drop a class that I received an IU Tuition Benefit award for?

    If the student drops courses or withdraws from school during the refund period, any refund applicable to the IU Tuition Benefit will revert back to the University. If the student drops courses or withdraws from school after the refund period, the IU Tuition Benefit award amount will stay applied to the student’s bursar account, the credit hours for the dropped courses will still apply toward the dependent child’s 140 hour maximum (if applicable), and the employee will continue to be responsible for any applicable taxes. See the Benefit Taxation section.

E. Eligible courses
  1. Does the IU Tuition Benefit apply to audit (non-credit) hours?

    For employees/IU Retirees and spouses, audit hours are eligible for the tuition benefit.  The tuition benefit for the eligible dependent child is limited to credit hours only and does not apply to audit hours.

  2. Does the IU Tuition Benefit apply to the MBA online courses?

    MBA online courses are covered by the IU Tuition Benefit for employees, former employees with retiree status or spouses.

  3. Does the IU Tuition Benefit apply to courses taken at a different University?

    No, the Tuition Benefit is a subsidy toward the tuition cost associated with attending Indiana University classes.  The benefit is applied directly to the student’s bursar bill.

  4. Does the IU Tuition Benefit apply to courses taken overseas?

    The IU Tuition Benefit only applies to the tuition costs associated with Indiana University and billed through our bursar offices. Overseas partnering schools may have additional tuition and fees that will be charged. These are not eligible for the IU Tuition Benefit.

  5. Does the IU Tuition Benefit apply to courses taken as part of a certification program?

    Maybe. The IU Tuition Benefit only applies to the tuition costs associated with Indiana University.  The certification program needs to be through IU, billed through IU’s Office of the Bursar, and earn credit hours that are transferrable as college credit.

  6. Does the IU Tuition Benefit apply to Advanced Dissertation Research courses?

    No. Courses such as G901, B798, G831, or equivalent are not eligible for the IU Tuition Benefit.

F. Taxes and other financial aid
  1. Are graduate courses subject to taxation?

    IRS Section 127 (as described in the IU Section 127 Plan document) allows the preferential tax treatment of up to $5,250 annually for employee subsidies paid toward graduate level tuition, but only for those described in the Eligible Employees and Retirees section.

    Graduate level tuition subsidies for courses taken by a spouse are treated as taxable income to the associated employee or Re­tiree, as well as subsidies for graduate-level tuition for an employee above the $5,250 IRS annual limit.

    For tax purposes, it does not matter which family member took the graduate-level course, the Tuition Benefit is an employee/retiree benefit. Therefore, the employee or retiree is responsible for applicable taxes. Such taxes will be deducted from the employee’s pay, and in the case of a retiree, the value of the graduate-level Tuition Benefit, in excess of $5,250 annually, will be given as taxable gross income.

    The Tuition Benefit for graduate-level courses will be added to the employee’s taxable income beginning with the payroll cycle following the end of the full refund period for dropping courses. A letter reflecting the amount of additional income and the payroll periods affected will be sent from the FMS Payroll department.

  2. Are graduate courses subject to tax if the recipient's degree program is undergraduate?

    Yes, If an undergraduate employee/retiree enrolls in graduate course work and receives tuition benefit in excess of $5,250 annually, it will be considered taxable.
    If a spouse is an undergraduate but enrolls in graduate coursework, their tuition benefit will be considered taxable.

    For tax purposes, it does not matter which family member took the graduate-level course, the Tuition Benefit is an employee/retiree benefit. Therefore, the employee or retiree is responsible for applicable taxes.

    If an employee/retiree or spouse is a graduate student but enrolls in an undergraduate course, the tuition benefit received for that course will not be considered taxable.

  3. If I am an IU Retiree and either I or my spouse take taxable course work, how will I pay the taxes?

    The value of the IU Tuition Benefit award for the taxable course work will be reported as taxable income on a W-2 form and will be mailed to the Retiree. 

  4. If I am receiving other aid, does the IU Tuition Benefit get applied to my bursar account first?

    Yes. Regardless of whether you receive financial aid, scholarships, grants, etc., the IU tuition benefit will be the first award applied against your bursar account. 

  5. What if I have a question about my financial aid application (FAFSA)?

    Contact your campus Office of Financial Aid.

  6. What if I have questions regarding IU Tuition Benefit and how it impacts my grants, scholarships, etc.?

    Contact your campus Office of Financial Aid.

 

Quick link

Apply for the
IU Tuition Benefit
2016-17 & 2017-18 Academic Years

Publications

Plan Booklet (PDF)

Plan Highlights (PDF)

Forms

IU Tuition Benefit
  Online
  PDF:
     2016-17
     2017-18

IUHS Tuition Waiver (PDF)

To complete and submit the PDF form electronically, download it to your computer first.