TUITION SCHOLARSHIP PROGRAM

PURPOSE

In order to encourage employees and their eligible family members to pursue a formal education, Northern Michigan University offers a tuition scholarship benefit.  The tuition scholarship benefit waives the tuition for eligible students, who complete the necessary procedure, on a space available basis.    

This benefit does not include individual charges such as University Fee, Discretionary Activity Fee, Student Athletic Fee, TLC/iBook Fee, program specific fees, laboratory fees, books, and supplies.

ELIGIBILITY

  • Faculty and staff that:
    • Have a full-time equivalent of .50 or greater
    • Are employed on the first day of the semester which benefits are being requested for
    • Are NOT on an unpaid leave of absence (except those receiving long term disability benefits) unless approved by the Director of Human Resources prior to commencement of such leave
  • Retirees
  • Spouses of eligible employees and retirees
  • IRS tax dependent, unmarried dependent children* of the eligible employee/retiree
    • *Dependent Children are defined as an employee’s son, step-son**, daughter, step-daughter** and a legally adopted child.
    • Biological and legally adopted children of divorced parents may be the IRS tax dependent of the employee’s divorced spouse.  A copy of the employee’s divorced spouses most recently filed Federal 1040 tax document must be provided to Human Resources. (see required documentation)
    • **Step-children must be the IRS tax dependent of the NMU employee in order to be eligible.  Proof of IRS tax dependent status must be provided to Human Resources via the most recently filed Federal 1040 tax document.  (see required documentation)
  • Adjunct faculty
    • Adjunct faculty members are eligible to receive a tuition waiver equivalent to their teaching load for the semester in which they are requesting benefits.  Teaching credits may NOT be banked for future use.
  • Contingent faculty, their spouses, and dependent children
    • Contingent faculty, as defined in the AAUP Master Agreement, are eligible to receive a tuition waiver equivalent to their teaching load for the semester in which they are requesting benefits.  Contingent faculty, who provide the necessary documentation (see required documentation), may pass their tuition scholarship benefit on to their eligible spouse/dependent.  The benefit will not exceed the teaching load of the employee for that semester.  Teaching credits may NOT be banked for future use. 

ADMISSION, ENROLLMENT, AND FINANCIAL AID

The tuition scholarship benefit is considered financial aid and all student applicants must be admitted or readmitted to Northern Michigan University in accordance with the normal requirements for admission and readmission. 

Employees may enroll in courses up to a maximum of four (4) credit hours during regular working hours.  Arrangements for such time off must be made with the immediate supervisor.  All time so devoted will be made up within the same bi-weekly pay period through arrangements with the immediate supervisor and/or department head.  If the employer assigns a bargaining unit member to take a class offered only during the employee’s scheduled work time, the employee shall not be required to make up the time. 

Physical Education and/or Recreational courses may not be repeated.

Those who participate in the Tuition Scholarship Program are not eligible to receive additional University funded scholarships and/or grants. 

REQUIRED DOCUMENTATION:

In order for benefits to be applied to eligible students, the following appropriate information must be on file with Human Resources:

Spouse

Biological Child

Step-Child

Legally Adopted Child

Marriage License

 

Birth Certificate of Child

*Employee’s most recent Federal 1040 tax return
(For contingent faculty children, and employee’s children over age 24 only)

Marriage License

Birth Certificate of Child

*Employee’s most recent Federal 1040 tax return
(For all step-children regardless of age)

 

Proof of Adoption

*Employee’s most recent Federal 1040 tax return
(For contingent faculty children, and employee’s children over age 24 only)

*The employee’s appropriate most recently filed Federal 1040 must be on file with Human Resources, if required (as indicated above), before the benefit will be applied for dependent children.  Biological and legally adopted dependent children of divorced parents may be claimed by the employee’s divorced spouse, provided that a copy of the divorced spouse’s Federal 1040 is provided to Human Resources. 

Step-children must be claimed by the employee in order to be eligible for tuition benefits. 

The following Federal 1040 will be accepted for the associated semester:

Semester

Required Federal 1040

Summer

Federal 1040 filed in the current calendar year

Fall

Federal 1040 filed in the current calendar year

Winter

Federal 1040 filed in the previous calendar year

 

DEADLINES

Tuition waiver applications will be accepted electronically, and via paper (only if electronic application is not available) through the last day of the semester in which the benefit is being requested.  It is the employee’s responsibility to ensure that the tuition waiver has been completed and submitted on time. 

Any tuition scholarship program application that is received beyond the last day of the semester, will not be accepted and any amounts owed for tuition and fees will be the responsibility of the student party. 

TERMINATION OF THE TUITION SCHOLARSHIP PROGRAM BENEFIT

The tuition scholarship benefit will discontinue at the conclusion of the semester during which the employee or student becomes ineligible or employment is terminated. 

REFUNDS

If a student drops courses or withdraws from school during the refund period, any refund applicable will revert to the University.

PROCEDURES

An application must be submitted, by the deadline date, for each student each semester the student is enrolled and eligible, following the below procedures:  

Employees

  • Spouses
  • Dependent Children
  • Register for courses
  • Employee must log in to MyNMU
  • From MyNMU, select the “Employee Services” tab
  • Click on “Request Tuition Benefit” and follow directions
    • Note: All required documentation must be on file with Human Resources before your request can be submitted.

Employees: Once you have submitted your tuition benefit request, it will be forwarded on to your immediate supervisor or approval, before it is sent to Financial Aid for processing. 

Retirees

  • Spouses
  • Dependent Children
  • Register for courses
  • Retiree must log in to MyNMU
  • From MyNMU, select the “Employee Services” tab
  • Click on “Request Tuition Benefit” and follow directions
    • Note: All required documentation must be on file with Human Resources before your request can be submitted.

If you do not utilize your NMU Retiree account, please submit the appropriate “Dependent Children Tuition Program Application” or “Faculty, Staff, and their Spouses Tuition Program Application” to the Human Resources office. 

Adjuncts

  • Register for courses
  • Log in to MyNMU
  • From MyNMU, select the “Employee Services” tab
  • Click on “Request Tuition Benefit” and follow directions

Once you have submitted your tuition benefit request, it will be forwarded on to your immediate supervisor or approval, before it is sent to Financial Aid for processing. 

NOTE: Your adjunct contract for the semester that you are requesting benefits must be on file in Human Resources before your tuition benefit request can be submitted electronically and approved.

Contingent Faculty

 

  • Register for courses
  • Employee must log in to MyNMU
  • From MyNMU, select the “Employee Services” tab
  • Click on “Request Tuition Benefit” and follow directions
    • Note: All required documentation must be on file with Human Resources before your request can be submitted.

Once you have submitted your tuition benefit request, it will be forwarded on to your immediate supervisor or approval, before it is sent to Financial Aid for processing. 

NOTE: Your Contingent Faculty contract for the semester that you are requesting benefits must be on file in Human Resources before your tuition benefit request can be submitted electronically and approved.

Contingent Faculty, Spouses, and Dependents

NOTE: Your Contingent Faculty contract for the semester that you are requesting benefits must be on file in Human Resources before your tuition benefit request can be submitted

 

TAXABILITY

NMU will abide by state and federal laws regarding the taxability of benefits.  Tuition benefits are considered taxable under certain conditions.  Graduate level tuition benefits are always considered taxable for spouses and dependents.  Graduate level tuition benefits for an employee in excess of $5,250 in a calendar year are taxable.  Undergraduate level tuition benefits are taxable for dependents ages 24 and above.  Undergraduate level tuition benefits become taxable for the calendar year in which the dependent turns age 24.  Additional Social Security and Medicare taxes will be deducted from your paycheck based on the value of the taxable benefit.  If the taxable benefit is more than $500, the deductions will be spread out over several paychecks to minimize the impact on your net pay.  Winter semester deductions will start in April, Summer semester deductions will start in July, and Fall semester deductions will start in October.  Tuition benefits are also considered taxable for federal and state income tax purposes; however, payroll does not withhold additional amounts for federal or state income taxes.  You may want to consider making a change to your federal or state W-4 to ensure you have sufficient withholding to cover any additional income tax liability.