Tuition Waiver for Employees of the UNC System

The following is a summary by General Administration of the regulations governing waiver of tuition privileges for employees of the University of North Carolina. These regulations, and the application that is required, are available to download on the Cashier's Office Website. Please note that Adobe Reader is required.

1. Waiver of tuition/fee privileges shall be allowed for full-time faculty of instructor rank and above and other full-time employees of the University who hold membership in the Retirement System for Teacher and State Employees of North Carolina (TSERS) or are eligible for such membership but have elected to participate in an approved optional retirement program. Non-Resident aliens appointed to permanent positions (75% time or more) and personnel of the Armed Forces of the United States assigned under military orders to an ROTC program as a permanent change of station are also eligible for tuition/fee waiver privileges.

2. If a participating employee does not continue in an eligible employment status throughout the entire semester during which the tuition waiver had been requested, the full amount of in-state or out-of-state tuition for the total number of credit hours enrolled will be charged to the student’s/employee’s account.

3. Depending upon prevailing tax laws, the value of the tuition waived may be considered reportable taxable compensation subject to social security, federal and state tax withholding, unless the course is deemed job related. To meet the federal job relationship definition, the course must maintain or
improve skills required for the job, or be required by the employer as a condition of continuing employment. If the course is needed by the employee in order to meet the minimum education requirements of the job, the job relationship definition for tax exclusion may not be used. It is the responsibility of the employee and supervisor to determine if the course is “job related” or “required for continued employment” and mark the appropriate box on the Tuition Waiver Application.

4. If a participating employee officially withdraws from school or drops the class for which the tuition waiver had been requested, the value of the tuition waived will not be taxable so long as the withdrawal or course drop occurs no later than the last day to withdraw with a prorated refund for that semester.

5. Waiver of tuition/fee privileges do not include such other charges as special course fees, Program fees (COE, PGM), application fees, late registration fee, charges related to liquidation of indebtedness, or miscellaneous service charges.

6. Employees seeking to enroll using a tuition waiver must be academically eligible for admission and will be admitted to the course on a space available basis.

7. Waiver of Tuition under this Policy is limited to two courses each academic year, defined as Fall, Spring, Summer I, Summer II. The two classes may not be taken in the same semester and only one class may be taken during the summer. If additional courses are taken, the student will be charged for the course based on the students’ classification, residency, and official credit hours. If an employee withdraws from a tuition-waived class, the dropped course counts as one of the two waivers allotted per academic year. The waiver application fee is non-refundable.

8. The one course permitted using a tuition waiver may be taken at any campus of the University of North Carolina. Faculty and staff members eligible for tuition privileges are subject to the rules of the individual institutions. Additionally, Faculty and Staff who are classified as “GRADUATE” or “PBS” (Post Baccalaureate Student) may not use the waiver when taking an audit class only or to waive one class and audit the second class for free. When registering and paying for other on-campus classes (Distance Education does not qualify for other course work) the student may receive one audit class free. (Example: Register for 3 classes; use waiver for 1st class and pay for the 2nd class, if audited - the 3rd class is free)

9. The tuition waiver privilege does not apply to Non-credit continuing education courses.

10. Each applicant must submit a completed and properly endorsed form entitled “Application for Faculty/Staff Tuition Waiver”, with the signed approval of the appropriate Chancellor, Vice Chancellor, Provost or Dean, to the University Cashier’s office no later than 5:00p.m. of the last day to register/add a class (census) for term attending.