The University of Pennsylvania's tuition benefit program provides the opportunity for eligible faculty and staff to take academic courses at the University of Pennsylvania. This benefit is a resource to allow for the continual career and professional development of faculty or staff. You are encouraged to utilize this valuable benefit as you pursue your career goals.

Question: Who is eligible for the University's tuition benefit plan?

Answer: To be eligible for the University's tuition benefit program, the Faculty/ Staff Scholarship Program, you must be a full-time faculty or staff member or limited service employee.

Question: What is the tuition benefit for me as a faculty or staff member?

Answer: The Faculty/ Staff Scholarship Program applies to credit courses at Penn and covers two course units each in the Fall and Spring semesters and two course units over the entire Summer sessions, for a total of six course units per year.

Question: What is the tuition benefit for my spouse or domestic partner?

Answer: Spouses and domestic partners of eligible faculty or staff who have completed at least three years of full-time service may receive a scholarship equal to 50 percent of the tuition and technical fee for both undergraduate and graduate level credit courses at Penn. There is no limit on the number of courses that will be covered. The graduate tuition benefit for spouses and domestic partners is considered to be taxable income to the staff member.

Question: What is the tuition benefit for my dependent children?

Answer: Dependent children of eligible faculty or staff who have completed at least three years of full-time service may receive:

1) A Faculty/Staff Scholarship equal to 75 percent of tuition and technical fee for any undergraduate school at Penn and for the Medical, Dental, Law and Wharton graduate schools at Penn. All other graduate schools at Penn are covered at 100 percent tuition and technical fee. The graduate tuition benefit for dependent children is considered to be taxable income to the staff member.

2) A Direct Grant Scholarship up to a maximum of 40 percent of Penn's undergraduate tuition only at an accredited college/university other than Penn. Students with tuition charges less than 40 percent of Penn's tuition will receive a scholarship equal to the tuition amount of the institution they attend.

The Direct Grant Scholarship is for undergraduate studies only.

Question: Are there any restrictions on the tuition benefits?

Answer: At Penn, the benefit applies to credit courses only and the prospective student must first apply and be accepted by the individual school. Also, staff must have supervisory approval to take time off for courses offered during regular work hours.

The Direct Grant Scholarship for dependent children is limited to undergraduate courses at accredited colleges/universities for a maximum of eight semesters (or 12 trimesters) and covers tuition only.

Question: What do I need to do to receive this benefit?

Answer: If you are applying to the Faculty/Staff Scholarship Program for the first time, submit an application to the Benefits Office before you or the student registers for courses. If you are applying to the Direct Grant Program for the first time, submit an application along with a copy of the itemized tuition bill to the Benefits Office.

Question: What happens if I leave the University?

Answer: You must remain employed as a regular full-time faculty or staff member through the midpoint of the semester in order to be eligible for a Faculty/Staff or Direct Grant scholarship for that term. For the current academic year, the midpoints are:

Question: How do I renew the tuition benefit?

Answer: If you are currently receiving a Faculty/Staff Scholarship, you do not have to reapply unless it has been more than one year since you last received the benefit. After the first application, the benefit is automatically awarded each term you or the student registers for courses. Participants in the Direct Grant Program are contacted in the Spring and given instructions on how to renew the scholarships.

Question: How are tuition benefits awarded?

Answer: For students at Penn, scholarships are credited directly to the student's account. It is not necessary to send your bills to the Benefits Office. For the Direct Grant Program you must present an itemized tuition bill along with your application. The Direct Grant Scholarship checks are mailed directly to the appropriate office at your child's school and made payable to the school in care of the student. A payment receipt showing the following information will be mailed to you at your home address: the name and social security number of your child, the amount of the scholarship, the name of the school to which it was sent, the mailing date and the number of terms remaining for your child in the program.

Question: Will employees be taxed for their courses?

Answer: Faculty or staff members who receive graduate tuition benefits must pay Federal income tax and FICA/Medicare for the tuition and fees paid by the University. Taxes on courses are subject to change pending revisions in the federal legislation.

Question: What is the present rate of withholding taxes?

Answer: Presently, all graduate level tuition benefits are taxable at the following rates:

28 percent federal withholding, 6.2 percent FICA and 1.45 percent Medicare. The University must withhold these amounts according to the IRS Revenue Code Section 127. The Benefits Office will keep you informed of any changes as they occur.

On August 20, 1996 President Clinton signed The Small Business Protection Act of 1996. This act retroactively reinstated the exclusion of $5,250.00 for graduate level educational assistance for faculty or staff. All affected employees who had taxes withheld from their benefit in the 1995 calendar year will be receiving a refund. If you have any questions regarding your refund for 1995 please contact Ken McDowell in payroll at 8-7278. All affected employees who had taxes withheld from their benefit for Spring 1996 or Summer 1996 will be receiving a refund through their student account. If you have any questions regarding your refund for these terms contact Anthony DeLong in HR/Benefits at 8-4812.

For more information, please call the Division of Human Resources at 898-6093 or e-mail us at askhr@pobox.upenn.edu.