Ohio mom works at school cafeteria so her kids can get 95% discount on college

Trading sandwiches for tuition: Ohio mom works at school cafeteria so her kids can get 95% discount on college

Trading sandwiches for tuition: Ohio mom works at school cafeteria so her kids can get 95% discount on college

Ohio mom Meghan Heater spends most weekday mornings at the University of Dayton’s mess hall, putting together sandwiches and salads for some steady income — and deeply discounted tuition for her kids.

Heater has worked at the college for four years now, which qualifies her for tuition assistance along with her family. By the time her eldest daughter (who is now 15) starts university, she can receive the maximum benefit of 95% off tuition.

Don’t miss

“It’s a lot of time on your feet and hard work,” Heater told CNBC.

Still, Heater considers the work incredibly rewarding. Assuming all three of her daughters attend the University of Dayton — where one year’s worth of tuition is about $47,600, she estimates she and her husband will have scored over $500,000 in higher education expenses for just a fraction of the price.

Many colleges offer tuition benefits to children of employees

While skyrocketing college costs can deter many from pursuing higher education, parents like Heater are seeking jobs with institutions that offer tuition breaks for their kids.

“With how expensive college has gotten, it is something that probably a lot of people are trying to take advantage of,” Jacob Channel, senior economist at LendingTree and a student aid expert, told CNBC.

While these tuition remission programs have existed for years, they’re gaining more attention as Americans look for alternatives to taking on massive student loans that can leave them with mountains of debt. Over 43 million Americans are burdened with federal student loan debt, with an average balance of $37,088 per borrower, according to the Education Data Initiative.

Read more: Generating ‘passive income’ through real estate is the biggest myth in investing — here’s how you can do it in as little as 5 minutes

CNBC says 90% of colleges and universities offer such benefits to children of full-time employees, citing data from the College and University Professional Association for Human Resources.

And it’s not just teachers and faculty who are able to score discounts.

“We’ve got everyone from facilities crews to police officers to all sorts of trades and industries. We’re always looking for great talent,” Jeff Herring, chief human resources officer at the University of Utah, told KSL Newsradio.

How do these tuition benefit packages work?

These programs can differ between institutions, but some offer as much as 100% off in tuition coverage, according to CNBC, and don’t restrict the number of credit hours or classes that the beneficiaries can take. Some may even allow beneficiaries to apply their benefits to other colleges as well.

About half of these institutions include a waiting period before the benefits kick in. For example, Heater had to work four years at the University of Dayton to score the maximum tuition break for her children, but could have received 45% off if she had only been there two years and 70% off after three years.

Of course, there can be some additional caveats as well, including maintaining certain admission requirements.

And just like with any education benefits offered by an employer, the Internal Revenue Service says once the amount exceeds $5,250 annually, you’ll have to pay taxes on the excess to Uncle Sam (although there may be some exceptions).

“While the tax won’t offset the benefit of the waiver, it is still something to keep in mind so you aren’t blindsided by a tax bill,” Channel told CNBC.

What to read next

  • Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds

  • Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here’s how you can save yourself as much as $820 annually in minutes (it’s 100% free)

  • Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here’s how

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    Input this code: captcha