Tuition Grant Program TGP

1
Tuition Grant Program (TGP)

• Overview of Program
• October, 2007

2
TGP Overview Table of Contents

• Program Explanation Pages 3-10
• TGP Description
• Annual Process
• Annual Benefit
• Annual Benefit Examples
• Expenses Not Covered
• Length of Payments
• Eligibility Pages 11-18
• Eligible Employees
• Breaks in Service
• Eligible Institutions
• Eligible Children
• Childs College/University Attendance
• Additional Factors Pages 19-24
• Taxability
• Financial Aid
• How and When to Apply Pages 25-27
• For More Information Page 28-29

3
Program Explanation
4
TGP Description

• Stanfords Tuition Grant Program assists
  employees to pay for their dependent children's
  undergraduate college education
• TGP provides tax-exempt payments directly to
  accredited colleges and universities toward the
  cost of the child(ren)s tuition
• Please see comprehensive program guidelines,
  Frequently Asked Questions, and download the
  application form at http//hreap.stanford.edu
• The maximum benefit is the lesser of
• The cost of tuition (or fees) for your childs
  school, or
• Up to one-half of Stanford Universitys tuition
  (Half of the current 2007/08 Stanford tuition is
  17,400)
• The benefit payable on your behalf will be
  calculated each semester, quarter, or each time
  you apply for TGP benefits and seek an
  authorization letter

5
TGP Description (contd)

• The maximum full-time benefit for the 2007-2008
  academic year including summer term is
• 17,400.00 for the full academic year
• 8,700.00 for each semester
• 5,800.00 for each quarter
• Payments are only made for the current academic
  year after an application has been submitted and
  approved. You may not apply for benefits
  retroactively.

6
Annual TGP Process
7
Annual Benefit

• TGP will pay some or all of the actual tuition
  (or required fees instead of tuition, such as
  orientation, registration, or application fees)
  charged by an eligible educational institution to
  matriculated students.
• The amount TGP will pay is based on
• the percent of full-time equivalency (FTE) of the
  eligible employees appointment e.g., 100, 85,
  72, 50
• If you work between 50 and 99 FTE at the time
  of payment, your benefit will be pro-rated by the
  percent of your FTE. This is referred to as the
  part-time benefit.
• the amount of half of the current Stanford
  University undergraduate tuition (half of the
  current 2007/08 Stanford tuition is 17,400) This
  amount changes every academic year
• the amount of tuition your child is being charged
  by the college or university he/she/they are
  attending
• If the childs institution invoices more than the
  maximum benefit, TGP will pay up to the maximum
  amount
• If the childs institution invoices less than the
  maximum benefit, TGP will pay up to the full
  amount of the invoice
• Based on full time eligible employee prorated
  if not full time
• See the next page for examples of the TGP annual
  benefit

8
TGP Annual Benefit Examples
Annual benefit up to ½ of Stanfords current
tuition rate, based on employees FTE and the
maximum allowable per semester or quarter. The
above scenarios have tuition rates that differ
from Stanfords current tuition rate (17,400 for
2007/08).
9
Excluded Expenses

• TGP is to be used toward tuition and required
  fees. Some examples of expenses that are not
  covered are
• Room and board
• Books and course materials
• 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
• See the comprehensive TGP guidelines for a
  complete listing of expenses not covered by the
  TGP benefit

10
Length of Payments

• The Program will make payments toward up to four
  years of work required for a baccalaureate degree
  at the eligible institution attended by the
  eligible child
• Benefits will be paid for a maximum of
• 12 quarters or 8 semesters of eligible attendance
• Benefits for extended part-time attendance may
  not exceed the amount that would be paid for
  full-time attendance in a four-year period, or
  the covered portion of such period.
• No TGP benefits continue beyond your eligible
  childs attainment of the baccalaureate degree.

11
Eligibility for TGP
12
EligibilityEmployees

• To participate in the TGP, you must have
• A benefits-eligible University position that is
  six months or more (four months or more for
  bargaining unit employees) and 50 FTE or
  greater. (for staff)
• Staff In addition to your eligibility, there is
  a length of service requirement you must have
  completed five years of continuing
  benefits-eligible service
• A University appointment of six months or longer
  (for faculty and senior administrative staff)1
• Faculty and senior administrative staff are
  eligible for TGP when your appointment begins
  (Please see next slide for senior staff grade
  level requirements)
• If both parents of an eligible child are Stanford
  employees, 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
• Employees of organizations affiliated with the
  University are not eligible for benefits under
  this Program, such as Carnegie Mellon
• 1 Effective January 1, 2004, faculty of the
  School of Medicine who have a 7/8 or more
  assignment at the Palo Alto Veterans
  Administration Medical Center will be treated as
  benefits-eligible for this purpose.

13
Senior Staff Eligibility GridEffective December
20, 2007
14
EligibilityBreaks in Service
15
EligibilityBreaks in Service (contd)
16
EligibilityInstitutions

• Accredited U.S. Institutions
• TGP payments will be made to accredited United
  States colleges and universities listed in the
  most current edition of Accredited Institutions
  of Postsecondary Education published by the
  American Council on Education (ACE).
• The Benefits office has a copy of this book for
  your reference.
• If an institution is not listed in the ACE
  publication, the parent must provide
  documentation that the units from the institution
  are transferable to Stanford University. Send the
  documentation to Benefits so the institutions
  eligibility can be determined.
• Foreign Institutions
• TGP payments may be made to foreign colleges and
  universities if Stanford University determines,
  at its discretion, that the foreign institutions
  academic standards are equivalent to those of
  accredited United States institutions.

17
EligibilityChildren

• A child is considered eligible if he/she meets
  both of the following requirements
• The child is
• A biological or legally adopted child, OR
• A stepchild who has lived with you for at least
  12 months immediately before you request benefits
  under the Program, OR
• A foster child who has lived with you for at
  least 24 months immediately before you request
  benefits under the Program, OR
• A child of your domestic partner (as defined by
  the Domestic Partner Benefits Policy, available
  through Benefits) who has lived with you for at
  least the 12 months immediately before you
  request benefits under the Program,
• and
• One or more of the following statements are true
  
• The child is your dependent for federal income
  tax purposes, OR
• You contribute at least 50 of the childs
  financial support, OR
• The child lives primarily with you when he/she is
  not away at school

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EligibilityChildren (contd)

• You must advise Benefits immediately if your
  eligible child in the Program withdraws from
  college during an academic year, transfers to
  another college, or is no longer eligible. You
  are also responsible for advising Benefits if
  your employment status changes during the period
  covered by the approved application.
• If you or your child becomes ineligible for the
  Program, Stanford reserves the right to recover
  from you the Program benefits it paid on your
  behalf.
• If your child withdraws before earning any units,
  and the childs institution refunds to Stanford
  the entire amount of tuition paid by Stanford,
  the student loses no eligibility.
• If the institution refunds more than half, but
  less than all, of the amount to Stanford, the
  child loses one half of a quarter or semester. If
  the institution refunds half or less than half of
  the amount, the child loses a full quarter or
  semester of eligibility. You may issue a check
  made payable to Stanford University for the
  amount not refunded by the childs institution.

19
Childs College/University Attendance

• Full-time Summer Attendance
• If your eligible child attends summer session and
  the Program pays for summer attendance, a term of
  eligibility will be deducted from your remaining
  eligibility.
• Part-time Attendance (Including Part-time Summer
  Attendance)
• If your eligible child takes eight or fewer units
  in a term, then the 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 the
  annual benefit amount available.
• Inter-term
• If your eligible child enrolls in an inter-term
  in between semesters, TGP will pay the tuition as
  long as the course does not exceed the total
  maximum semester amount for the year. The student
  loses no additional eligibility.
• If the max semester amount has been used, a term
  of eligibility may be deducted from remaining
  eligibility. An inter-term payment may deplete
  the remaining annual benefit amount available.
• Simultaneous Attendance
• If your eligible child attends and is charged
  tuition by two eligible educational institutions
  at the same time for the same course of study,
  TGP will pay benefits up to the amount that would
  have been provided for the student to attend the
  primary institution full-time. This amount will
  be adjusted if the combined attendance at both
  institutions is less than full time.

20
Additional Factors
21
Taxability Issues

• Tax-Exempt Payments
• Payments made on behalf of your eligible
  child(ren) are made directly to the college or
  university. Because of that, payments are
  excluded from your gross income for federal
  income tax purposes and are thus tax-exempt.
• In order for TGP payments to be tax exempt, it is
  advised that your child must meet one or more of
  these criteria
• The child is your dependent for federal income
  tax purposes, OR
• You contribute at least 50 of the childs
  financial support, OR
• The child lives primarily with you when he/she is
  not away at school
• Please consult a tax advisor to get specific
  guidance regarding taxes and TGP payments
• Please review the comprehensive TGP Guidelines
  for who is considered an eligible child
  http//hreap.stanford.edu

22
Taxable Compensation

• Taxable Payments
• In general, if the child is your domestic
  partners 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.1
• In this case, you make tuition payments directly
  to the childs institution.
• When your application is reviewed, you will be
  issued a taxable compensation letter.
• Next, when you receive the invoice from your
  childs institution, you are responsible to pay
  it.
• Next, provide a copy of the invoice and proof of
  your tuition payment to the Educational
  Assistance Programs office in Human Resources.
• Reimbursements for current employees will be
  processed within two pay periods on either the
  7th or 22nd, depending on the receipt date for
  proof of payment. Reimbursements for official
  retirees will be sent to your home address
  approximately 15 days after receipt of proof of
  payment.
• That reimbursement will be classified as taxable
  supplemental compensation subject to withholding.
  The University will not help pay any taxes due on
  such compensation.
• Also, this supplemental compensation will not
  change your base salary such other benefits will
  continue to be calculated on your regular salary.
  The following examples describe three situations
  in which questions could arise about the
  taxability of the Program funds.
• See Taxability Examples on the next page
• 1 In some situations involving 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 one of the parents claims the child as a
  dependent for federal income tax purposes. If
  this situation applies, consult your tax advisor
  about the taxability of these benefits.
• NOTE There are other circumstances that could
  result in benefits being treated as taxable
  compensation. We strongly encourage you to
  consult your tax advisor concerning your specific
  situation.

23
Taxable Compensation (contd)

• Examples
• If tuition payments are made on behalf of a child
  of your domestic partner and you have not legally
  adopted the child, the Program benefits will be
  treated as taxable compensation to you.
• 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.
• If the child has attained age 24 (19 if not a
  full-time student) and has gross income equal to
  or exceeding the exemptions amount, the child
  will not qualify as a dependent and Program
  benefits will be treated as taxable compensation
  to you.

24
Other Non-Taxable Payments

• Example Late TGP Application Causes Employee to
  make Tuition Payment Directly to Childs
  Institution
• If you must make a payment for tuition directly
  to the childs institution, such as due to a late
  TGP application submission, the TGP Administrator
  will issue a reimbursement check to the school.
• This is because the tax laws discourage direct
  reimbursements to parents, and are done only when
  the tuition benefit is taxable to you.
• Once you have made the tuition payment, you must
  provide an invoice to show the tuition amount and
  proof of payment. If the tuition was paid by
  check, the front and back copies of the check of
  the check are required.
• Upon receipt of payment from the Tuition Grant
  Program, the childs school will in turn issue
  the reimbursement check.
• Note Stanford University is not responsible for
  the length of time it takes the childs school to
  reimburse you after they have received Stanfords
  payment. If the child is over the age of 18, the
  childs school typically reimburses the child
  directly.

25
Financial Aid

• Participation in Tuition Grant Program could
  affect other financial aid benefits for your
  childs education. Contact your childs Financial
  Aid Office for more information.
• For Stanford University students, Educational
  Assistance Programs (EAP) notifies the Financial
  Aid Office and you after the application is
  processed. When registering, the student receives
  the applicable credit toward Stanfords tuition
  through the process specified in the Universitys
  registration procedures.

26
How and When to Apply
27
How to Apply

• To apply for the TGP, complete and submit an
  application between April 1-July 1 on behalf of
  your eligible child for each entire academic year
  the child attends (includes summer session), or
  for each change of school.
• Application forms are available at the campus
  Benefits Office, the SLAC Benefits Office, or on
  the HR EAP web site. Go to http//hreap.stanford.
  edu

28
When to Apply

• As soon as you know the college or university the
  child will attend, complete and submit the
  application to Educational Assistance Programs
  (EAP) in Human Resources. Applications are
  accepted during the academic year, but are due no
  later than July 1.
• To ensure timely payments to your childs school,
  you must submit applications between April 1 and
  July 1 for the upcoming academic year beginning
  in the following September. Failure to do so may
  result in a required deposit, administrative
  delays, or may mean you will have to pay the
  institution directly and wait for them to
  reimburse you after they receive the TGP payment.
  
• Faculty and staff located at SLAC should submit
  applications directly to the SLAC Benefits
  Office.
• SLAC Benefits Office
• 2575 Sand Hill Road, Mail Bin 11
• Menlo Park, CA 94028
• Apply every academic year
• For all semesters or quarters (includes summer
  session)apply between April 1 and July 1

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For More Information
30
For More Information

• Review the complete program guidelines and
  Frequently Asked Questions online, and download
  the application form on the Human Resources
  Educational Assistance Programs web site
• http//hreap.stanford.edu
• Call [phone] (local) or [phone]
  (toll-free)
• TGP is currently option 5 on the menu
• If you are unable to print the TGP application
  form that is online, you can pick up a form in
  the EAP office located at
• 655 Serra Street, 1st Floor Lobby
• Note If you are a SLAC employee, use the same
  forms, but submit them to your own HR office at
  Mail Bin 11.