Tuition Remission Notes

RULES FOR EMPLOYEES:

1. Eligible employees may take a maximum of three undergraduate or two graduate courses per term.
2. Tuition Remission is considered a fringe benefit which ends upon termination.
3. Tuition Remission will be reduced by your PHEAA Grants. Tuition Remission will affect Drexel need based and Drexel Non-need-based (merit) financial aid.
4. Graduate Tuition Remission for employees may be taxable according to IRS guidelines. See Notice Below:

Beginning January 1, 2002 – graduate tuition remission became eligible for exclusion from gross income, as provided under section 127 of Internal Revenue Service Code. The Economic Growth and Tax Relief Reconciliation Act of 2001 provided an exclusion from taxation on graduate level courses. The amount that is excludible under Section 127 is $5,250 per year. Any amount of tuition remission in excess of the annual $5,250 amount is considered taxable income to the employee, subject to Federal, FICA and Medicare tax withholding. In addition, the excess amount will be reported as wages in Boxes 1, 3, and 5 on Form W-2, Annual Wage and Tax Statement.

SUBMISSION PROCESS FOR FT EMPLOYEES:

1. Complete, print out, and sign the Tuition Remission Application.
2. Submit to Human Resources, 3201 Arch Street, Suite 430, 4th Floor.
3. If applying for Dependent Tuition Remission, then provide proof of dependency via last year’s tax return form.
4. HR will approve/deny based on current data in the College of Medicine employee database.
5. Results will be communicated to the Bursar’s Office via mail and electronically.
   

Note:

Only Full-time employees (and their dependents) of Drexel University and DU College of Medicine are eligible for Tuition Remission. FT Employees eligible for 100%, while their dependents can be 20-100% based on employee’s length of service.

To submit in time for the start of the academic year, please use August 1st as the deadline. The Bursar’s Office will apply this benefit towards your tuition bill once HR has verified and relayed eligibility and % information to them.

For applicants planning to start classes during the academic year, please submit application as soon as possible or at least one month before the start of the term/semester.