Policy 609 - Education Benefits - Human Resources

609. Education Benefits

Statement

The University grants education benefits to provide opportunities for personal and educational development for all benefit eligible employees taking courses for credit. It also has several education benefit programs for spouses, registered domestic partners, and dependent children (as defined by the IRS) of eligible employees. Each of the University's education benefit programs are described below in the following chart.

SUMMARY OF EDUCATION BENEFITS

Tuition Remission

Tuition Reimbursement

FACHEX

Tuition Exchange

Employee’s tuition to SCU (as well as eligible dependents) is automatically paid by the institution

Employees are reimbursed for tuition expenses incurred outside of SCU, with the exception of certificate programs offered at SCU.

The Faculty, Administrator and Staff Children Exchange program (FACHEX) is a program in which children of eligible employees of participating Jesuit colleges and universities may apply for undergraduate admission to one of the institutions and, if accepted, are eligible for consideration of tuition remission subject to the terms and conditions set by the accepting institution.

The Tuition Exchange program is a national scholarship exchange program for institutions of higher education. Children of eligible employees may apply for undergraduate admission to one of the participating institutions and, if accepted, are eligible to be considered for tuition remission subject to the terms and conditions set by the accepting institution.

Eligibility Requirements:

SELF: Available to any benefits-eligible employee after one year of continuous service to the institution in a benefits eligible position

DEPENDENTS: Employee can access the tuition remission benefit for dependents after three years of continuous service in a benefits eligible position to the institution – benefit will cover one degree per eligible dependent

Eligibility Requirements:

SELF: Available to any benefits-eligible employee after three years of continuous service to the institution

DEPENDENTS: Employees can access the tuition reimbursement benefit for dependents after three years of continuous service in a benefits eligible position to the institution – total lifetime benefit of $12,000 (regardless of number of dependents).

Eligibility Requirements:

DEPENDENTS: Current benefits eligible employees who have at least three years of continuous service with the University are eligible to apply for FACHEX for their dependent children.

FACHEX Awards are not guaranteed.

Verification of dependent status is required. Participation in this program is in lieu of enrollment at Santa Clara University.

Eligibility Requirements:

DEPENDENTS: Current benefits eligible employees who have at least three years of continuous service with the University are eligible to apply for the Tuition Exchange program for their dependent children.

Tuition Exchange is not guaranteed.

Verification of dependent status is required. Participation in this program is in lieu of enrollment at Santa Clara University.

Special Circumstances:

If after ten years of continuous service, a current/active employee dies or is disabled, the tuition remission benefit continues for dependents – same rules apply in terms of covering one degree per dependent*

If after twenty years of cumulative service, a current/active employee retires, resigns or is laid-off, the tuition remission benefit continues for dependents – same rules apply in terms of covering one degree per dependent*

*Must meet IRS definition of a dependent and be claimed on the most recent tax return

Special Circumstances:

None – tuition reimbursement benefit is only accessible when an employee is an active employee. Once an employee is no longer active at SCU – tuition reimbursement is not accessible.

Special Circumstances:

Eligibility for FACHEX continues for the dependent children of an eligible employee with 10 years of continuous service who becomes disabled or dies during active employment or is on an approved leave.

Beyond the special circumstance noted above, FACHEX is only accessible when an employee is an active employee. Once an employee is no longer active at SCU – FACHEX is not available.

Special Circumstances:

Eligibility for Tuition Exchange continues for the dependent children of an eligible employee with 10 years of continuous service who becomes disabled or dies during active employment or is on an approved leave.

Beyond the special circumstance noted above, Tuition Exchange is only accessible when an employee is an active employee. Once an employee is no longer active at SCU – Tuition Exchange is not available.

Procedure

TUITION REMISSION

Tuition Remission is available for all undergraduate and graduate courses offered in any term at the University, excluding online, ancillary or continuing education courses, and the executive MBA program. Tuition Remission may be available for limited professional development courses offered by the Leavey Executive center, including the Heroic Leadership for All and Five Dysfunctions of a Team programs. Eligible employees will be granted Tuition Remission for themselves for up to a maximum of two undergraduate courses per academic quarter and one undergraduate course per summer. For graduate courses, eligible employees will be granted Tuition Remission for themselves for up to a maximum of eight units per academic quarter or semester and four units per summer. For purposes of administering this policy, one undergraduate course will be defined by the offering department in the schedule of classes, e.g., one course may be a three credit lecture while another course may be a four credit lecture plus lab. Employees participating in cohort-based educational programs may be granted approval to participate in additional summer courses, based on the program requirements, excluding all online programs. The employee must pay tuition for any additional undergraduate courses or graduate units taken. All normal course prerequisites must be met. Dependent children attending the Young Scholars' program are also eligible for Tuition Remission.

Tuition Remission covers 100% of tuition for employees and their dependents, provided the employee is working in a benefits eligible position that is at least .75 FTE. Employees in a benefit eligible position with an FTE between .50 FTE and .74 FTE will receive tuition remission for themselves only, on a pro-rated basis. Tuition Remission does not include other costs such as books, laboratory, application, service, and other fees. All charges other than tuition must be paid to the University in the same manner as required of other students. The University is not responsible for any additional tax liabilities that employees and/or dependents may be subject to in receiving educational benefits. The Tuition Remission limitation on the maximum number of courses does not apply to dependents.

Eligibility

Current benefits eligible employees who have at least one year of continuous service with the University are eligible for Tuition Remission for themselves for classes at Santa Clara University. Current benefits eligible employees who have at least three years of continuous service in a benefits eligible position with the University are eligible for Tuition Remission for their spouse/registered domestic partner and dependent children pursuing an academic degree (matriculating) for one degree, graduate or undergraduate, per dependent student. Verification of dependent status is required for all undergraduate courses. For purposes of the Education Benefits Policy, employees who were employed on a full-time basis in a benefits-eligible position prior to joining the University by a public or private educational institution offering a baccalaureate or advanced degree will be credited with the related number of years and months of continuous full-time employment at that institution towards the benefits eligible service required by the University. Employees must provide the Department of Human Resources with a letter from the former institution(s) stating the dates of prior full-time service and have no more than a 30-day break in service between employment at the prior institution and acceptance of employment at the University.

Eligibility for undergraduate Tuition Remission continues for the spouse/registered domestic partner and/or dependent children of an eligible employee with 10 years of continuous service who becomes disabled or dies during active employment or is on an approved leave. Employees with 20 or more years of continuous service in a benefits-eligible status who resign, retire, or are laid-off are eligible to receive undergraduate Tuition Remission for themselves, their spouses and/or dependent children. If an employee separates from employment and is re-hired by Santa Clara University within one year from the date of separation, and have 20 or more years of cumulative service in a benefits-eligible status at resignation, retirement, or lay-off are eligible to receive undergraduate Tuition Remission for themselves, their spouses and/or dependent children. All other eligibility requirements must be met. In the event that the employee retires, resigns or is terminated and has less than 20 years of continuous service, eligibility for this program will cease as of the end of the quarter/semester in which the employee leaves the University.

The service requirement for Tuition Remission must be met within 15 calendar days of the close of late registration for the quarter/semester. In order to be eligible for tuition remission, a child must meet the IRS definition of a tax dependent and be claimed as a dependent on the employee’s federal tax return at the time of each and every registration for any undergraduate course. There is no age limit; however, for children age 24 and older a copy of Page 1 of the employee’s most recent tax return (Federal Form 1040), showing the dependent being claimed, must be provided with social security numbers and other sensitive information redacted.

Registration

Employees, spouses, and children are permitted to register for courses during the general or late registration periods. Payment of the applicable registration fees or tuition penalties resulting from withdrawing from a course after the formal add/drop period are the responsibility of the employee.

Time-off from work

Release time for class during regularly scheduled working hours may be granted to employees provided the employee and his/her supervisor arrange in advance for the employee to make up the lost time without creating overtime payment. The operational requirements of the department must be taken into consideration when granting such release time.

Application

Tuition Remission application forms are available on the Department of Human Resources website. The applicant must meet eligibility requirements each quarter/semester. An applicant who is a full-time student or an employee taking classes need complete only one application per academic year. The application should be completed in the Spring quarter/semester of the prior academic year. Applicants who are employees and taking classes during work hours are required to have their supervisor sign the application, however, the supervisor's signature does not guarantee release time. Employees must notify the Department of Human Resources immediately if they or their spouse/registered domestic partner or children become ineligible for the benefit.

TUITION REMISSION IMPORTANT DATES

TERM	WINDOW TO SUBMIT APPLICATION
Academic Year	May 31 - June 15
Summer	April 1 - April 20

TUITION REIMBURSEMENT

The Tuition Reimbursement program provides eligible employees with tuition and educational fee reimbursement for themselves or their dependents. The maximum reimbursement amount per year cannot exceed the IRS limit on tax-free education assistance, and there is a lifetime benefit limit of $12,000.00 per employee.

Eligibility

Current benefits eligible employees who have at least three years of continuous service with the University are eligible for Tuition Reimbursement for themselves and their dependents. For purposes of the Tuition Reimbursement program, dependents are an employees' spouse/registered domestic partner and/or their dependent children, as defined by the IRS. For purposes of the Education Benefit Policy, employees who were employed on a full-time basis in a benefits-eligible position prior to joining the University by a public or private educational institution offering a baccalaureate or advanced degree will be credited with the related number of years and months of continuous full-time employment at that institution towards the benefits eligible service required by the University. Employees must provide the Department of Human Resources with a letter from the former institution(s) stating the dates of prior full-time service and have no more than a 30-day break in service between employment at the prior institution and acceptance of employment at the University.

Employees may use Tuition Reimbursement for accredited college courses or vocational certificate programs, provided the courses or programs are job related. Any college, university or vocational program listed by the U.S. Department of Education as accredited post-secondary institutions would qualify. The Tuition Reimbursement program does not provide any time-off from work for employees.

Dependents must be a matriculating student pursuing an Associate or Bachelor's degree or a vocational certificate program. Any vocational program listed by the U.S. Department of Education as accredited post-secondary institutions qualifies.

The usage of tuition reimbursement for a dependent does not count against the one degree limitation for the tuition remission program, if the dependent were to be accepted and enroll at Santa Clara University in the future.

Application

Tuition Reimbursement application forms are available on the Department of Human Resource website. Employees must submit an application to request Tuition Reimbursement. If approved, employees pay the cost of tuition and fees out-of-pocket and then submit proof of payment for the expenses they are seeking to get reimbursed along with proof of successful completion of the course(s). Employees must notify the Department of Human Resources immediately if they, their spouse/registered domestic partner or children become ineligible for the benefit.

TERM	WINDOW TO SUBMIT APPLICATION	WINDOW TO SUBMIT REQUEST FOR REIMBURSEMENT
Fall	August 1 - August 15	December 15 - January 15
Summer	April 1 - April 15	August 15 - September 15
Spring	April 1 - April 15	June 15 - July 15
Winter	February 1 - February 15	April 15 - May 15

FACHEX & TUITION EXCHANGE

FACHEX

FACHEX Awards are not guaranteed. They must be offered by the accepting institution. FACHEX eligibility does not qualify a dependent child for admission, nor does an offer of admission to a participating Jesuit university guarantee a FACHEX Award.

Eligibility

Current benefits eligible employees who have at least three years of continuous service with the University are eligible to apply for FACHEX for their dependent children. Verification of dependent status is required. Participation in this program is in lieu of enrollment at Santa Clara University. For purposes of the Education Policy, employees who were employed on a full-time basis in a benefits-eligible position prior to joining the University by a public or private educational institution offering a baccalaureate or advanced degree will be credited with the related number of years and months of continuous full-time employment at that institution towards the benefits eligible service required by the University. Employees must provide the Department of Human Resources with a letter from the former institution(s) stating the dates of prior full-time service and have no more than a 30-day break in service between employment at the prior institution and acceptance of employment at the University.

The service requirement for FACHEX must be met within 15 calendar days of the close of late registration for the quarter/semester.

In the event that the employee resigns or is terminated, eligibility for this program will cease as of the end of the quarter/semester in which the employee leaves the University.

Application

It is important to remember that FACHEX/Tuition Exchange is a completely separate application process from the admissions process, contingent upon an offer of admissions into an institution. To apply for FACHEX/Tuition Exchange online at other universities,

Please go to www.TuitionExchange.org.
Go to Families, then Online Applications.
Select the schools in the “Applying To” box. If the school is a FACHEX and Tuition
Exchange school one application will be needed. Do not select Santa Clara University. (If admitted to SCU, your child would be using your Tuition Remission benefit, not FACHEX).

Once the employee's eligibility is certified, the electronic application will be forwarded to the colleges listed on the application. The employee's child will then be placed on a waitlist by the participating colleges until they decide who will receive the award at their college. Please note that after the employee's eligibility to participate is certified, all further contact concerning FACHEX will be directly between the employee and the colleges to which the employee's child is applying. Employees must notify the Department of Human Resources immediately if their children become ineligible for the benefit.

For questions or assistance in applying for FACHEX, please contact the FACHEX Coordinator in the Financial Aid Office at OneStop@scu.edu.

TUITION EXCHANGE

The Tuition Exchange program is a national scholarship exchange program for institutions of higher education. Children of eligible employees may apply for undergraduate admission to one of the participating institutions and, if accepted, are eligible for tuition remission subject to the terms and conditions set by the accepting institution.

Eligibility

Eligible employees who have at least three years of continuous service with the University are eligible for Tuition Exchange for their dependent children. Verification of dependent status is required. Participation in this program is in lieu of eligibility for enrollment at Santa Clara University. For purposes of the Education Policy, employees who were employed on a full-time basis in a benefits-eligible position prior to joining the University by a public or private educational institution offering a baccalaureate or advanced degree will be credited with the related number of years and months of continuous full-time employment at that institution towards the benefits eligible service required by the University. Employees must provide the Department of Human Resources with a letter from the former institution(s) stating the dates of prior full-time service and have no more than a 30-day break in service between employment at the prior institution and acceptance of employment at the University.

The service requirement for all programs must be met within 15 calendar days of the close of late registration for the quarter/semester. Eligible children must meet the IRS definition of dependent and claimed as a dependent for income tax purposes at the time of each and every registration for any undergraduate course. In the event that the employee resigns or is terminated, eligibility for this program will cease as of the end of the quarter/semester in which the employee leaves the University.

Eligibility for Tuition Exchange continues for the spouse/registered domestic partner and/or dependent children of an eligible employee with 10 years of continuous service who becomes disabled or dies during active employment or is on an approved leave.

Application

After reviewing the list of participating colleges and universities on the Tuition Exchange website (www.TuitionExchange.org), select the institution(s) to which the student has or will apply. All students must seek admission to the institution as a separate process.

Please go to TuitionExchange.org.
Go to Families, then Online Applications, then FACHEX Online Application.
When selecting the schools in the “Applying To” box. If the school is a FACHEX and Tuition Exchange school one application will be needed, scroll down to the bottom of the list for the FACHEX Schools. Do not select Santa Clara University. (If admitted to SCU, your child would be using your Tuition Remission benefit, not Tuition Exchange).

The following apply to all of the education benefit programs under this policy:

SATISFACTORY ACADEMIC ELIGIBILITY

Employees, spouse/registered domestic partner and children (i.e. dependents) must maintain the same academic standards required of other students to remain eligible for Tuition Remission, Tuition Reimbursement, FACHEX, and Tuition Exchange.

ADMISSION REQUIREMENTS

The employee, spouse/registered domestic partner and children (i.e. dependents) must qualify for admission under the standards required of other applicants for Santa Clara University, Tuition Remission, Tuition Reimbursement, FACHEX, and Tuition Exchange programs.

PARTICIPATION

Participation in any of the educational benefits programs is limited to one program per qualifying individual per academic year. Employees are not allowed to combine benefits for themselves or their dependents in a given academic year. For example, the employee and their qualified dependent may both be enrolled in Tuition Remission; however, the employee cannot have their qualified dependent in a Tuition Exchange Program, and apply for Tuition Reimbursement for that same qualified dependent in the same academic year.

Consider the following scenarios as well:

Scenario A:

An employee’s dependent is taking courses at a local Community College. Since the employee has been working at SCU for three years, the employee can use tuition reimbursement to cover portions of the tuition expenses (up to the yearly allowance and the overall lifetime limit).

Dependent completes an Associates degree and transfers to SCU to start an undergraduate degree program. At this point, the employee can use their tuition remission to cover the expenses for their dependent. In this case, an employee can use tuition reimbursement and tuition remission at different points of the dependent’s educational journey.

Scenario B:

An employee has been accepted to an SCU degree seeking program and is using their tuition remission. Employee’s dependent is taking courses outside of SCU at a degree-seeking program. The employee can use their tuition reimbursement to help cover the cost of the dependents courses up to the yearly allowance and lifetime limit.

In this case, an employee is able to use both the tuition remission for themselves, and the tuition reimbursement for their dependent.

Taxability

Courses taken and benefits received under the Tuition Remission, Tuition Reimbursement, FACHEX, or Tuition Exchange programs may be subject to federal and/or state income tax. Verification of dependent status is required. In the event that benefits under this plan are deemed to be taxable income, the University will add the education benefit taxable amounts to the employee’s taxable gross wages and may be required to withhold the applicable tax withholdings from the employee's paycheck(s). The employee will not be reimbursed by the University for any taxes owed.

Graduate And Professional Degrees

Graduate degrees can only be covered through the Education benefit while the employee is a benefits eligible staff member. Upon retirement and/or death or separation of employment after the requisite service length, spouse and dependents can only access undergraduate degrees. This is due to graduate degrees being taxable for non-employees.

Responsibility

It is the responsibility of the employee to conform with the requirements outlined in this policy, in order to remain eligible for and receive these benefits. The Department of Human Resources is responsible for the interpretation and administration of this policy.

Resource

Contact the Department of Human Resources with any questions regarding this policy. Specific questions regarding FACHEX can be addressed by the Financial Aid Office.

Policy Approved: October 23, 1998

Last Updated: October 15, 2025

Last Reviewed: August 2025

Maintainer: Human Resources