Frequently Asked Questions:

Education Assistance Program: Tuition Benefit for Child

1. Am I eligible for the Vanderbilt tuition benefit for my dependent child?

You are eligible for the benefit if:

You are at least 21 years old.
You have completed five years of continuous full-time employment in a regular or term position here at Vanderbilt or any other accredited college or university, with no break in service greater than three months. If you came from another accredited college or university, a verification letter is required from your previous employer.
Your dependent meets the definition of a "qualifying child" (see below).

2. What is the IRS definition of a “Qualifying Child”?

In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:

Relationship – the taxpayer’s child or stepchild (whether by blood or adoption).
Residence – has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
Age – must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
Support – did not provide more than one-half of his/her own support for the year.

While the four qualifying child tests generally apply, a qualifying child must also meet these tests:

Nationality - be a U.S. citizen or national, or a resident of the U.S., Canada or Mexico. There is an exception for certain adopted children.
Marital Status- if married, did not file a joint return for that year, unless the return is filed only as a claim for refund and no tax liability would exist for either spouse if they had filed seperate returns.

3. Is there a limit to the number of school terms for which my child (or children) can receive the benefit?

Yes, each individual dependent child may receive the benefit for up to 8 semesters (or 12 quarters).

If you have more than one child, you may utilize the benefit for up to 24 semesters (or 36 quarters) for all of your dependent children. If both you and your spouse are Vanderbilt faculty or staff members, you may utilize the benefit up to 48 semesters (or 72 quarters), however this does not increase the number of eligible semesters per child.

4. Am I required to pay taxes on this benefit?

Currently, the tuition benefit for dependent children is not considered taxable income to you, and is not reported on your W2 at the end of the year.

5. How do I request the Vanderbilt tuition benefit for my dependent child?

Simply complete a Tuition Benefit for My Child form for each term in which you wish to receive the benefit. We begin processing on the dates below:

Fall Semester/Quarter - June 1st
Winter Quarter - October 1st
Spring Semester/Quarter - October 1st
Summer Sessions - May 1st

Timely submission provides a smoother flow for your child's registration process!

Your child will also need to complete an Authorization & Release Form for each school they attend. The completed form remains in force throughout the student's entire enrollment at this college or university. A new form must be submitted only when your chils enrolls at a DIFFERENT college or university.

6. How can I remember to submit the form in time?!!!

Send an email to majordomo@list…Leave the subject line blank and type "subscribe tuition-discount" in the body of the email. We'll send an e-mail reminder to you when it's time to complete your forms for the upcoming term!

7. How do I know if the college or university my child is attending is approved for the tuition benefit?

If the college or university your child is attending is accredited and offers academic courses providing college credit that can be applied toward an undergraduate degree, it is most likely eligible. If you have a concern about the eligibility of the school your child is attending, contact the Tuition Team in Human Resources. Otherwise, when you submit your request for the benefit, a review will be made and you will be contacted if the school does not meet the necessary requirements.

8. Are overseas programs eligible for the benefit?

Only overseas programs sponsored by an accredited college or university within the United States are eligible for the benefit.

9. What classes are eligible for this benefit?

Any classwork leading to your child's first undergraduate degree is eligible for the benefit.

10. Will the Vanderbilt benefit pay for costs or fees other than tuition?

The tuition benefit contributes only toward the cost of tuition. Mandatory fees, Registration fees, books, room and board, and other expenses are not eligible for the benefit.

11. Does Vanderbilt pay for overloads?

No, overload charges are not covered by the HRS dependent tuition benefit.

Overload is defined as the credit hour amount above a school's full-time enrollment. If a school charges a flat tuition rate for 12-18 credit hours and the student is enrolled for 19 credit hours, the amount of overload would be one hour.

The benefit amount is based on the individual school's base tuition charge and each school may vary in what they consider to be full-time enrollment. The amount of any overload charges would be the responsibility of the student and/or parent.

12. Who receives the payment for the Vanderbilt tuition benefit?

Vanderbilt requests certain information from your child's school, and when the necessary information is received, the Vanderbilt benefit is paid directly to your child's school. In the event you have already paid the tuition please check with your student's school policy for refunds. Most schools wait until the end of their first 'drop/add' date before providing the information. The 'drop/add' date is the last day a student can add or drop classes without additional charges to their student account.

13. How much will the Vanderbilt tuition benefit contribute toward my child's tuition?

The tuition benefit is based on a 3 tier system, based on the cost of your child's tuition:

If the amount of your child's tuition is	If your child is attending a school on a SEMESTER system
$2,000.00 or less for the semester	Vanderbilt will pay 100% of the tuition.
$2,000.01 to $2,857.00 for the semester	Vanderbilt will pay $2,000.00.
More than $2,857.00 for the semester	Vanderbilt will pay 70% of your child's tuition, not to exceed an amount equal to 70% of Vanderbilt University's current tuition cost*

*-Vanderbilt University reviews and adjusts the cost of tuition on an annual basis.

If the amount of your child's tuition is	If your child is attending a school on a QUARTER system
$1,333.00 or less for the quarter	Vanderbilt will pay 100% of the tuition.
$1,333.01 to $1,904.00 for the quarter	Vanderbilt will pay $1,333.00.
More than $1,904.00 for the quarter	Vanderbilt will pay 70% of your child's tuition, not to exceed an amount equal to 70% of Vanderbilt University's current tuition cost*

Note: The maximum benefit for the 2008-2009 school term is $12,635.00 for semester-system schools; $8,423.33 for quarter-system schools.

14. If my child receives a grant or scholarship which is applicable to tuition, will that affect the amount paid by the Vanderbilt benefit?

Yes, if your child receives a grant or scholarship applicable to tuition, the Vanderbilt tuition benefit will pay the lesser amount which result from the following calculations:

The amount resulting from the calculations outlined in the tables in Question #13 above, or
Your child's tuition, less the amount of the grant or scholarship they are receiving.

15. Can I see some examples of the calculations in Questions #13 and #14?

If your child's tuition is	and they receive a tuition scholarship for	the Vanderbilt tuition benefit will pay	Why?
$1,800 per semester	-0-	$1,800	Tuition is less than $2,000
$2,500 per semester	-0-	$2,000	Tuition is greater than $2,000, and less than $2,857
$2,500 per semester	$1,000	$1,500	Lesser of calculations in Question #13
$11,000 per semester	-0-	$7,700	70% (the tuition amount is less than VU's tuition)
$18,050 or more per semester	-0-	$12,635*	Capped at 70% of VU's tuition

*-$12,635 = 70% of Vanderbilt University's tuition for the 2008-2009 term.

Vanderbilt University is committed to principles of equal opportunity and affirmative action.

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Last Updated: October 19, 2009