This website has already discussed some of the perks certain employers offer that make it easier to pay off student debt. Indeed, many workers out there are fortunate to have a number of employment benefits that can impact their finances. Some individuals may even work for an employer that will pay for all or part of the cost of obtaining a degree, and this can impact someone’s student debt decisions.
There are a number of reasons why employers may assist their workers in obtaining additional degrees. Some bosses may want a worker to earn an additional credential so that an employee can take on more responsibilities. Other employers may offer educational assistance to attract individuals to work for a given company. Furthermore, some employees may need to obtain additional credentials in order to progress in their careers, and industry practices mandate that employers subsidize the cost. In any case, there are certain things to consider before deciding to head back to school if your employer will pay for all or part of the cost.
In many fields, including the legal industry in which I currently work, employers rarely offer to pay for educational costs. However, in certain fields, it is common for employers to help pay for the cost of obtaining additional degrees. For instance, in the educational field, many employers will pay teachers and other staff to obtain master’s degrees and other credentials. Additionally, in the financial industry (in which one of my brothers currently works), certain employers will help pay for their worker’s to obtain master’s degrees so that the employee is eligible to earn a CPA credential. In addition, many people who work for universities receive free tuition if they attend classes at the institution at which they work. In some cases, their children get free or subsidized tuition too. Although many of us might not receive any educational assistance from employers, some individuals have this benefit.
It goes without saying that if your employer will pay all of the costs associated with obtaining a degree, you should likely accept this benefit from your employer. In many instances, this perk will be worth tens of thousands of dollars, and obtaining an additional credential will likely enrich your career even if you do not plan on staying at that job. Of course, some workers have responsibilities that may prevent them from earning an additional degree even if the cost is being picked up by your boss. Nevertheless, in the vast majority of instances, it makes sense to earn an additional degree if your employer will pay for your educational expenses.
Sometimes, employers will only partially pay for the cost of obtaining an additional degree. If this is the case, some factors must be considered before deciding to head back to school. Of course, the amount of educational costs your employer will pay will likely be the biggest factor in determining if you should earn an additional degree. If your employer will pay about half or more of your educational costs, then it might make sense to head back to school. However, if your employer will only pay around a quarter or less of your educational expenses, it might not make sense to become a student again.
In addition, some employers attach conditions on any deal to pay for educational expenses. It is not uncommon for an employer to require an employee to work at least three more years at the company in exchange for paying educational costs. I have even heard of some employers requiring individuals to work at companies for five years or longer in exchange for educational assistance, and this restriction could inhibit someone from advancing in their career.
If you like your company and do not mind working at the same gig for several years, then a condition restricting you from leaving a company in exchange for educational costs might not be so bad. However, if you do not like your boss, do not want to work at your job in the near term, or want to change careers, it might not make sense to take your employer up on an offer to pay for educational expenses.
Another important factor to consider when taking an employer’s offer to pay for educational costs is whether an additional degree will increase your income. Some employers have set pay scales, and individuals with more education automatically earn more money. Furthermore, other workplaces have implicit policies establishing that once someone obtains an additional degree, they will receive a salary increase. Whatever the situation at your job, if an additional degree will allow you to earn more money, then you should consider receiving employer assistance to go back to school.
Before deciding to head back to school, you should also assess whether it will be difficult to handle the responsibilities of being a student while employed full-time. As mentioned in a previous article, it is oftentimes hard to work a full-time job while earning a degree. Although some employers might be sympathetic to employees who are attending school, especially if they are providing assistance, it can still be difficult to handle everything. If you have family responsibilities or otherwise do not think you can manage the difficult workload of working full-time as a student, you might not want take an employer up on an offer to pay for educational costs.
In the end, if your employer will subsidize the cost of obtaining an additional degree you should seriously consider going back to school. Although some factors must be seriously considered, you should usually take an employer up on an offer to pay for educational expenses.