Tuition Grant Program (TGP)

A. Stanford's Tuition Grant Program assists employees by helping them pay for their dependent children's undergraduate college education. If you are an eligible faculty or staff member and your child is claimed as your dependent on your federal income taxes, TGP provides tax-exempt payments directly to accredited colleges and universities toward the cost of the child's tuition. Benefits for other eligible children are provided on a taxable basis.

A. The maximum benefit is the lesser of:

• The cost of tuition (or fees) for your child's school, less any applicable grants or scholarships or
• Up to one-half of Stanford University's tuition (Half of the current 2011/2012 Stanford tuition is $20,025)
  • The benefit payable on your behalf will be calculated each semester, quarter, or each time you apply for TGP benefits and receive an authorization letter.
  • There is a maximum TGP benefit per semester of $10,012.50.
  • There is a maximum TGP benefit per quarter of $6,675.

A. You must submit a completed TGP application form for each academic year. The Educational Assistance Programs (EAP) Office will review and determine your and your child's eligibility. Proof of dependent relationship is required and must be submitted with the first application for each dependent. A list of acceptable documents can be found on the TGP website at http://hreap.stanford.edu/tgp.html. Copies of official documents are acceptable. Please do not send original documents.

If you and the eligible child qualify for TGP benefits, Stanford University will issue an authorization letter to you. It is your responsibility to forward the letter to your child's institution immediately. The letter will verify that payment from Stanford is guaranteed and provides billing instructions for the institution. You must reapply between April 1 and July 1 for all semesters or quarters, including summer term.

A. If payments were made directly to you, they would be considered taxable income. If you already paid the tuition prior to receiving your TGP authorization letter, the EAP office will send the tuition payment to your child's institution. The institution will be responsible for your reimbursement.

A. For employees in benefits-eligible staff positions, there is the Staff Tuition Reimbursement Program (STRP). The program supports employee development by providing partial or full reimbursement of tuition costs for courses meeting requirements of undergraduate or graduate degree programs related to current performance or planned career development. Individuals must be enrolled in a degree program to qualify for assistance. See the STRP guidelines at http://hreap.stanford.edu.

A. The following items are on the exclusion list; the complete listing of excluded items is included in the comprehensive TGP Guidelines available here: http://hreap.stanford.edu:

• Room and board
• Books and course materials
• Transportation and parking
• Laboratory fees
• Expenses at any United States or foreign institution that are not normally included in the basic tuition and fees by Stanford University, the University of California, or the California State Universities
• Other costs or expenses that Stanford, in its discretion, decides are not tuition within the meaning of this Program

A. For Staff, you must be in a benefits-eligible University position that is six months or more (four months or more, or to the extent provided in the collective bargaining agreement for bargaining unit employees) and 50% FTE or greater. In addition, you must have completed five years of continuing benefits-eligible service to qualify.

For Faculty, University Officers and Executives, you must be in a University appointment of six months or longer. Faculty, University Officers and Executives are eligible for TGP when your appointment begins.

A. No, only one four-year benefit period is allowed for each eligible child regardless of which parent applies. The same limits and conditions apply as if Stanford employed only one parent.

A. Yes, if you have satisfied the five years of continuous service requirement, your TGP benefits are prorated based on the percent of time you work; e.g., 50%, 75%, etc. The position must be benefits eligible and at least 50% FTE to qualify for TGP.

A. If it is a paid leave, TGP benefits continue without interruption. For unpaid leaves, if the service requirement is met, TGP benefits continue without interruption. For long-term disability, if the service requirement is met, TGP benefits continue during the disability time period. For a sabbatical, TGP benefits continue without interruption. For a full explanation of how the Benefit is affected by leaves of absence, please consult the TGP Guidelines at http://hreap.stanford.edu.

A. Yes, assuming the service requirement has been met and you are an official retiree (meeting the criteria set forth by the Benefits Office for official retirees). If, at the time of your retirement, you hold a position that is less than 100% full-time service, your TGP benefit will be paid at the full-time rate only if you worked in 100% full-time service positions for more than half of the years you were a benefits eligible Stanford employee during the 10-year period immediately preceding your retirement. If the majority of your service was not full time, your TGP benefit as a retiree will be based on the average percent of your full-time equivalency during your last 12 months of active service.

A. If you are rehired as a faculty member or University Officers and Executives, you are immediately eligible for TGP upon rehire. If you are rehired as a staff member, you must complete another five-year period of continuous benefits-eligible service to reestablish eligibility for the TGP benefits, unless any of the provisions of Administrative Guide Memo 22.1(d)(1) apply to you.

• The provisions in that memo include:
  • If your employment is ended by a layoff and your employment is reinstated within 24 months of the date of that layoff, your prior service is bridged (i.e., counted as continuous through the layoff period), or
  • If your employment otherwise ends, you return to work within one year, and your department classifies your re-employment as a “reinstatement” per Guide Memo 22.1(d)(1), your prior service is bridged.

If these two circumstances met the service requirement, your participation can begin immediately, as long as you and your child meet all other TGP requirements. If your service is not bridged, your term of service is counted from your new hire date

A. Your eligible child(ren) already receiving TGP benefits will continue and your other children, if any, will become eligible for TGP benefits when they qualify under the other conditions of the program. However, all TGP benefits end, if at the time the employee passes away there are no eligible children participating in the program, with the exception of those employees who would qualify as an Official Retiree at the time of their death. Children of deceased employees are eligible only up to age 40.

A. Proof of dependent relationship is required and must be submitted with the first application for each dependent. A list of acceptable documents can be found on the TGP website at http://hreap.stanford.edu/tgp.html. Copies of official documents are acceptable. Please do not send original documents.

A. Yes, if a foster child has lived with you for at least 24 months immediately before you request benefits under the Program, AND if one or more of these statements is true (see below), you are eligible for TGP benefits.

• The child is your dependent for federal income tax purposes, or
• You provide more than 50% of the child's financial support, or
• The child lives primarily with you when he/she is not away at school

A. Yes, if one or more of these statements is true (see below), you are eligible for TGP benefits.

• The child is your dependent for federal income tax purposes, or
• You provide more than 50% of the child's financial support, or
• The child lives primarily with you when he/she is not away at school

A. Yes, if one or more of these statements is true (see below), you are eligible for TGP benefits.

• The child is your dependent for federal income tax purposes, or
• You provide more than 50% of the child's financial support, or
• The child lives primarily with you when he/she is not away at school

A. Yes, if a child has been your ward under a court-approved legal guardianship and has been your ward immediately prior to your request for benefits under the Program for at least 60 months, AND if one or more of these statements is true (see below), you are eligible for TGP benefits.

• The child is your dependent for federal income tax purposes, or
• You provide more than 50% of the child's financial support, or
• The child lives primarily with you when he/she is not away at school

A. No, age is not a factor in determining the child's eligibility for TGP benefits (the child might be 16, 25, 32, etc.), unless the eligible employee is deceased. In that case, if the service requirement was met before the employee's death, benefit payments for your eligible children already receiving benefits will continue; other remaining children will become eligible when they qualify, up to age 40.

Also, if the child is over the age of 24 (19 if not a full-time student) and has gross income equal to or exceeding the IRS exemptions amount, the child will not qualify as a dependent and TGP benefits will be treated as taxable compensation to you.

A. Yes, as long as the maximum amount of semesters or quarters has not been reached. However, if you are receiving the Benefit as taxable compensation, additional rules apply. Taxable TGP benefits for a child will not be paid over a period of more than 4 consecutive years. If benefits for a child become taxable part way through the child's college education, the remaining benefits for which the child is eligible must be taken in consecutive regularly-scheduled quarters or semesters for all benefits to be available. No TGP benefits continue beyond your eligible child's attainment of the baccalaureate degree. Once the benefit becomes taxable, the remaining benefits for which the child is eligible must be taken in consecutive regularly-scheduled quarters or semesters for all benefits to be available. If time off is taken during the period of time in which the benefit is taxable, the consecutive quarters/semesters rule remains in effect and the student will only have the remaining consecutive quarters/semesters in which to use TGP benefits. If the TGP benefits are not fully utilized in this timeframe, they are forfeited. Please review the full taxable benefit policy in the TGP guidelines located at http://hreap.stanford.edu

A. Yes, if your eligible child takes eight or fewer units in a term, then TGP will pay only half of the equivalent full-time academic term of eligibility. The amount payable to the institution cannot exceed one half of the amount available for that term, or the balance of half of the TGP maximum annual benefit amount. Additional restrictions may apply if the benefit is being received on a taxable basis. Please review the full taxable benefit policy in the TGP guidelines located at http://hreap.stanford.edu

A. Yes, the program will pay for your eligible child summer session and a term of eligibility will be deducted.

A. The accreditation process is rigorous and Stanford University must adhere by it. The program does not provide payment to institutions that have not completed the accreditation process. Additionally, accredited institutions have to meet quality standards for their educational curricula, helping to ensure a high quality academic program.

A. Obtain backup information from the institution that proves it is accredited and includes it with your application to determine the eligibility.

A. The maximum full-time benefit for the 2009-2010 academic year – including summer term – is:

• $20,025 for the full academic year
• $ 9,675 for each semester
• $ 6,450 for each quarter

The amount changes each year, based on the current Stanford tuition. If you work less than full time, the amount is prorated (see Eligibility for Employees section).

A. If you have satisfied the eligibility requirements, and your child's college or university tuition is the same as Stanford's, TGP can pay up to ½ of Stanford's annual tuition. In many cases, however, your child's college or university tuition is less than half of Stanford's annual tuition, so that amount is what TGP will pay.

A. The program was established to support the children of long-time employees attaining an undergraduate degree. Graduate education is not included in TGP because graduate degree typically includes financial support for the student, such as a teaching assistantship or a research grant. Additionally, the tax laws differ based on the age of the child.

A. Yes, only if your child is claimed as your dependent on your federal income tax return for the year that includes the tuition payment date. The payments are made directly to the institution on behalf of your eligible child. These payments are excluded from your gross income for federal income tax purposes and are non-taxable. If your child is not claimed as your dependent on your federal income tax return or if you die while benefits are payable, the benefit is considered taxable compensation.

A. If the child is your domestic partner's child whom you have not adopted, or is otherwise not your dependent for federal income tax purposes, the benefit payments do not qualify for tax-exempt treatment.

Follow the steps below on how to make the tuition payments directly to the child's institution.

1. When your application is reviewed and eligibility is determined, you will be issued a taxable compensation authorization letter.
2. When you receive the invoice from your child's institution, you are responsible to pay it.
3. Provide a copy of the invoice and proof of your child's tuition payment to the Educational Assistance Programs office in Human Resources.
• Payments to the institution must be made by the employee receiving the TGP benefits.
4. Reimbursements for current employees will be processed within two pay periods on either the 7th or 22nd of the month, depending on the receipt date for proof of payment,
5. Reimbursements for official retirees will be sent to your home address approximately 15 days after receipt date for proof of payment.
• The reimbursement will be classified as taxable supplemental compensation subject to withholding. The University will not help pay any taxes due on such compensation.
• The supplemental compensation will not change your base salary; such other benefits will continue to be calculated on your regular salary.

A. In some situations, parents who are divorced, or married parents who are legally separated or live apart, the Stanford parent can receive program benefits without taxation as long as the parent who is the Stanford employee claims the child as a dependent for federal income tax purposes.

A. If someone else (including the child) provides over 50% of the financial support of the child, tuition payments made on behalf of the child will be treated as taxable compensation to you.

A. If the child reach the age of 24 (19 if not a full-time student) and has gross income equal to or exceeding the IRS exemptions amount, the child will not qualify as a dependent and TGP benefits will be treated as taxable compensation to you.

A. The benefit is offset by any applicable grants or scholarships your child may receive from his/her institution. Participation in TGP could also affect other financial aid benefits for your child's education. Contact your child's Financial Aid Office for more information. If your child will attend Stanford University, the TGP Office will notify the Financial Aid Office and you after the application is processed. When registering, the student receives the maximum benefit amount per quarter toward Stanford's tuition through the process specified in the University's registration procedures.

A. Please consult with your tax advisor. Remember, if the payments were made directly to your child's college or university and not to you, they are considered tax exempt.

A. Currently, the non-taxable TGP benefit has not been affected by the new IRS regulation. However, the taxable TGP benefit does have some additional time constraints associated with the program. The following is the new ruling regarding the duration of the taxable benefit: The Program will reimburse the employee for tuition payments toward up to four years of work required for a baccalaureate degree at the eligible institution attended by the eligible child. Taxable TGP benefits for a child will not be paid over a period of more than 4 consecutive years. If benefits for a child become taxable part way through the child's college education, the remaining benefits for which the child is eligible must be taken in consecutive regularly-scheduled quarters or semesters for all benefits to be available. No TGP benefits continue beyond your eligible child's attainment of the baccalaureate degree. If time off is taken during the period of time in which the benefit is taxable, the consecutive quarters/semesters rule remains in effect and the student will only have the remaining consecutive quarters/semesters in which to use TGP benefits. If the TGP benefits are not fully utilized in this timeframe, they are forfeited, even though your child may not have attained their baccalaureate degree. Please review the full taxable benefit policy, including examples, in the TGP guidelines located at http://hreap.stanford.edu

A. The time to apply for the upcoming academic year is between April 1 and July 1 and when you know what institution your child will attend. Complete and submit the application to the Educational Assistance Programs Office in Human Resources. Applications are accepted during the academic year.

A. It is located on the Human Resources Educational Assistance Programs web site http://hreap.stanford.edu. Select the Tuition Grant Program (TGP) and print the pdf application form (Adobe Reader software is required; it is free from Adobe at: www.adobe.com). Submit completed applications to: Educational Assistance Programs, 320 Panama Street – Bambi Modular, Stanford, CA 94305-4160. (SLAC employees must submit completed applications to: SLAC, Mail Bin 11, 2575 Sand Hill Road, Menlo Park, CA 94025.)

A. To ensure timely payments directly to your child's institution, you must submit an application between April 1 and July 1 for the upcoming academic year. A late application can delay tuition payments to the institution.

• If you first become eligible for TGP benefits after July 1, you should submit your application as soon as you become eligible
• Faculty and staff located at SLAC should submit applications directly to the SLAC Benefits Office.

A. Yes! Apply every academic year between April 1 and July 1. One application can cover a partial academic year or an entire academic year, including summer by marking the correct boxes on the application form.

A. Yes, call the main Benefits number: Locally: (650) 736-2985 or Toll-free: (877) 905-2985. TGP is currently option 5 on the menu.

A. Yes, it's http://hreap.stanford.edu. There are FAQs, a PowerPoint Overview, the application form, and the comprehensive TGP Guidelines that you can review and/or print.

A. Yes, visit the Human Resources Department lobby at 320 Panama Street (Bambi Modular) to obtain the applications. (SLAC employees can come get the application, but will need to submit it to the SLAC Human Resources Office, Mail Bin 11.)