A Guide to Understanding Tuition Exchange Membership Requirements and Expectations
Membership in the Tuition Exchange program means the attending school funds the scholarship to Import defined eligible students with tuition or a set rate, whichever is less. The set rate for the 2023-2024 academic year is $41,000. The scholarship can be made up of various grants and scholarship dollars—schools detail which funding option it uses inside the School search option.
Tuition Exchange is not an employee benefit. There are no guarantees that the approved Export employee's student will be awarded the scholarship. The process is two-prong. The first is that the parent is an eligible employee, and the student is a qualified dependent of the employee. The second is that the student applies, is admitted, and meets the criteria established by the Import school for awarding the scholarship.
No money exchanges hands between the Export and Import school. The import school is discounting (not charging) the attending TE scholar's tuition in full or up to the set rate. The attending school is responsible for providing the student with a 1098-T annually. Currently, for undergraduate students, there are no federal tax implications. You should check with your tax advisor or the IRS website for the most up-to-date information. For graduate students, current IRS regulations state that the first $5,250 in U.S. dollars is untaxed. In all cases, the scholar is the scholarship recipient and is a potential tax obligation of the student.
The export school reviews the parent's eligibility throughout the year, confirming the employee is, at a minimum, meeting the Employer's expectations, i.e., full-time employment. If the parent no longer meets the Employer's eligible guidelines, the student's scholarship eligibility and funding at the Import school is terminated.
The import school may impose expectations on the scholar. Expectations can include completing the FAFSA annually, living on campus, maintaining a minimum grade point average, and even enrolling in a certain number of credit hours per semester. It is the responsibility of the student to understand the expectations and adhere to them to maintain the scholarship.
No money exchanges hands between the Export and Import school. The import school is discounting (not charging) the attending TE scholar's tuition in full or up to the set rate. The attending school is responsible for providing the student with a 1098-T annually. Currently, for undergraduate students, there are no federal tax implications. You should check with your tax advisor or the IRS website for the most up-to-date information. For graduate students, current IRS regulations state that the first $5,250 in U.S. dollars is untaxed.