FAQ on the 2025 Tuition Assistance Benefit program updates

Every year, the university invests almost $1 billion to offer our faculty and staff a robust set of benefits. TAB is only one part of that set, which also includes a competitive retirement savings program that in addition to match contributions of up to 5%, also includes a 5% non-elective contribution provided by USC to all eligible employees – regardless of whether they contribute to their retirement – allowing for a total USC contribution of up to 10%. We offer self-funded health plans with rich benefit levels that include hearing aid services, fertility services and an expanded travel benefit for reproductive care, transitional services, a comprehensive maternity care program, and expanded Lyra Health visits. In 2023, USC expanded Long Term Disability insurance to all benefits-eligible employees, extending this benefit to an additional 11,000 employees in the unanticipated event of a disability – at no cost to them.

Maintaining this package of benefits, which is among the most robust of all our peer universities, requires balance to ensure that our compensation programs remain competitive, affordable, and sustainable. That commitment has been demonstrated through the USC Competes Moonshot, with close to $500 million invested through the start of FY25 to increase the competitiveness of our compensation programs – putting us ahead of schedule for the Moonshot’s goals and aligned with feedback from our employees that competitive wages and salaries are very important to them. Decisions to change benefits programs are not made lightly, with consideration for how our employees value and use the various programs and their elements, and with the goal to impact the least number of employees possible. We also look at our peers, to ensure our benefits package remains robust. With respect to TAB, the program spend has grown by nearly 60% since FY2017, with the university spending over $70 million on the program in FY2024. With the updated TAB plan in full effect, the university still expects to spend between $50 to $60 million per year, while maintaining the most valued and used elements of the TAB program and keeping our program more generous than the over than 30 peers benchmarked.

As part of the university’s commitment to supporting our active faculty and staff in their career advancement and offering a competitive advantage in recruiting, hiring, and retaining talented faculty and staff, we maintain the most valued and frequently used features of the TAB program.

The following elements of the TAB program did not change with the implementation of the updated TAB plan (effective April 15, 2025):

• 100% tuition assistance for our full-time, active faculty and staff to pursue undergraduate up to six (6) units for record per semester, including summer sessions, and no more than four (4) units at the graduate level (including doctorate degrees).
• 100% tuition assistance for each eligible child to earn an undergraduate degree up to one undergraduate degree program or 144 undergraduate units, whichever comes first, plus the opportunity for Tuition Exchange benefits. For undergraduate dependents currently enrolled in and using TAB, and who decide to apply for and are accepted to a progressive degree program during the course of their undergraduate studies, they remain eligible for coverage for the graduate coursework associated with the progressive degree under the current TAB plan.
• Immediate eligibility to faculty and immediate eligibility to staff hired before Jan. 1, 2019, and a 2-year waiting period for staff hired after Jan. 1, 2019.
• The 15-year service benefit provision (also known as the “15-year letter”) for those employees hired prior to July 1, 2011, and who have accrued 15 years of eligible service, will remain in place and continue to be subject to the terms and conditions of the TAB plan effective at the time of enrollment, which as of summer 2025 will include those set forth below.

The following updates apply to eligibility and use of USC’s tuition benefits for faculty, staff, and their dependents (including children and spouses/registered domestic partners) who are accepted to degree programs for the summer 2025 term and beyond. For individuals enrolled in and using TAB prior to the April 15 plan update, their benefits will remain unchanged through the completion of their program, provided they do not have a break in enrollment.

• For faculty and staff, graduate certificates are not covered. (Note that under the plan prior to the April 15 update, graduate certificates were only covered for faculty.) Graduate degree programs will continue to be covered for both faculty and staff.)
• For children of all faculty and staff, the age cap is 26 years of age (consistent with health plan coverage), regardless of the sponsoring faculty or staff member’s hire date.
• Each child of active faculty or staff is eligible for 100% tuition coverage for one undergraduate degree, while graduate studies – as part of a progressive degree or graduate degree program – is no longer covered in the updated TAB plan. Undergraduate dependents enrolled in and using TAB prior to the plan update, and who decide to apply for and are accepted to a progressive degree program during the course of their undergraduate studies, are eligible for coverage for the graduate coursework associated with the progressive degree.
• For spouses/registered domestic partners, they are eligible for 25% of their tuition cost to be covered, for a maximum of one degree undergraduate or graduate program.
  
  

For many years, USC’s compensation and benefits have been strong. However, our last overall evaluation of benefits was in 2006, and over the last decade, salaries slowly began to lag behind in the market. After evaluating this trend, and hearing from faculty and staff that competitive wages and salaries are very important to them, we announced the Presidential Moonshot in 2022 – USC Competes. This Moonshot focuses on increasing the competitiveness of our compensation programs by the start of FY27. We are very pleased that having made close to $500 million in additional investments by the start of FY25, we exceeded our targets by more than one year. In order to make these investments, we are working to control benefits costs while keeping them competitive and affordable.

We reviewed programs at 34 local, Big Ten, and Association of American Universities (AAU) peer institutions and found that the majority offer tuition assistance benefits only to active faculty and staff and dependents working toward undergraduate degrees. Moreover, virtually all peers who offer TAB benefits restrict them to children, up to age 26, for use toward a single undergraduate degree, and are not available toward graduate degrees. More than 60% of our peers do not offer any tuition support for spouses and partners, and an even greater fraction do not cover graduate certificates for faculty and staff. It was critical to us to make certain that our benefits program would remain among the most competitive of our peers, even after making several cost effective changes.

TAB, like all benefits, is periodically reviewed and updated, as it was in 2019 and 2011. This review included an assessment of peer benchmark data and faculty and staff use. With this information in mind and the university’s commitment to keeping TAB financially sustainable, these updates were developed and presented to the Employment Benefits Advisory Committee (EBAC), which includes faculty and staff representatives, in September 2024 for their feedback. They were brought back for a final discussion with EBAC in October 2024. Members and guests of Academic Senate and Staff Assembly were then made aware of the forthcoming updates the week of Oct. 14, 2024.

During the initial review, the university evaluated several options for driving long-term financial resilience and pared them down to those that would be most feasible and that would allow a continued focus on the benefits USC faculty and staff value most.

Like all large organizations, the university periodically evaluates its benefits to keep them cost-
effective, competitive, affordable, and sustainable. As stated in the updated TAB plan, the university reserves the right to, at any time, amend the TAB program. However, we are not aware of any additional changes at this time, and the updated TAB plan is available on the Employee Gateway (see the plan document section of the page).

Full-time, actively at work benefits-eligible faculty and staff (including fixed-term employees and Keck Medicine of USC employees) are eligible to receive tuition assistance and to have their child and spouse/registered domestic partner receive tuition assistance for eligible coursework at USC. Please be aware of the following additional requirements:

• Waiting periods: For faculty, they are eligible upon hire. For staff hired before Jan. 1, 2019, they are eligible upon hire. For staff hired on or after Jan. 1, 2019, they are eligible after a 2-year waiting period (including to sponsor their children and spouses/registered domestic partners).
• Two-year service period: For staff hired on or after Jan. 1, 2019 (including a rehired staff member), they must remain employed by USC for two full years after completion of their degree (or, if the staff member does not complete the degree, two full years after the last day of the semester in which the staff member takes their last class).

The following categories of individuals are not eligible for the TAB program: Part-time faculty (including adjunct faculty); part-time staff; fellows and other postdoctoral scholars; teaching assistants; research assistants; laboratory assistants; temporary, contingent, and resource employees; and FICA-exempt student employees.

For faculty, there is no waiting period.

For staff hired before Jan. 1, 2019, there is no waiting period.

For staff hired on or after Jan. 1, 2019, there is a two-year waiting period. Staff hired on or after this date must be employed by the university as an eligible staff member for at least two (2) full years before the first day of classes in any semester or session for which they wish to use the benefit.

For staff hired on or after Jan. 1, 2019 (including a rehired staff member), they must remain employed by USC for two full years after completion of their degree (or, if the staff member does not complete the degree, two full years after the last day of the semester in which the staff member takes their last class). Failure to meet this two-year employment requirement will result in forfeiture of the benefit used and the staff member will be responsible for repayment of the tuition.

For TAB eligibility purposes, enrollment assumes class attendance during the enrollment period. Being admitted to the university or registering for courses does not constitute as enrollment.

For example, if a dependent is accepted in Spring 2025 (before April 15) but begins classes in Fall 2025 (after April 15), they are considered to have enrolled after April 15 and will be subject to the updated TAB plan.

Under the USC TAB program, an “Eligible Child” is defined as:

• a biological child of an eligible staff employee or eligible faculty member
• a child who is legally adopted by an eligible staff employee or an eligible faculty member
• a current stepchild of an eligible staff employee or an eligible faculty member

Eligible children must also not exceed the age cap that’s in place when they enroll.

• If enrolled before April 15, 2025, the age cap was 30 (35 for faculty and staff hired prior to Jan. 1, 2019)
• If enrolled during or after April 15, 2025, the updated TAB plan applies, and the age cap is 26 (consistent with health plan coverage)

Under the USC TAB program, a “Spouse” is defined as the legally married spouse of an eligible staff employee or eligible faculty member.

The program also recognizes “Registered Domestic Partners,” defined as satisfying the university’s guidelines for registered domestic partner status, which requires that (1) both persons are members of the same sex or one or both persons are over age 62 (if opposite sex), (2) both persons are capable of consenting to the domestic partnership, and (3) the couple has a certified certificate of domestic partnership issued by a state or other governmental entity.

For TAB eligibility purposes, enrollment assumes class attendance during the enrollment period. Being admitted to the university or registering for courses does not constitute as enrollment.

For example, if a dependent is accepted in Spring 2025 (before April 15) but begins classes in Fall 2025 (after April 15), they are considered to have enrolled after April 15 and will be subject to the updated TAB plan.

No. For individuals enrolled in and using TAB before April 15, those benefits remain unchanged through the completion of their program, provided they do not have a break in enrollment.

The updated age cap of 26 for children does not affect those who were enrolled in TAB prior to the April 15 plan update, so in this scenario, your child did not experience any changes.

If your child was enrolled prior to the April 15 update, the age cap was 30 (35 for faculty and staff hired prior to Jan. 1, 2019). If your child reaches that age cap before completing their program, they are eligible through the semester during which they reach the age cap. The following semester onwards, they will no longer be eligible for TAB benefits.

Please refer to the updated TAB plan to determine related tuition benefits and eligbility for faculty or staff, their children, and their spouses/registered domestic partners is determined by the date of the individual’s enrollment to USC.

The maximum units covered by TAB are provided below. If you register for more than what’s covered, then TAB will pay up to the maximum amount.

• For active faculty and staff:
  • Up to six (6) units for record per semester, including summer sessions, for undergraduate
  • Up to four (4) units at the graduate level (including doctorate degrees)
• For children:
  • Up to one undergraduate degree program or 144 undergraduate units, whichever comes first
• For spouses/registered domestic partners:
  • 25% tuition assistance for one-degree program, up to a maximum of 144 undergraduate or 72 graduate units, whichever comes first

Yes, faculty and staff can audit one work-related, audit-only (no grade) course per semester (including summer), provided they:

• Get written approval from their supervisor and the course department
• Take courses that improve job skills or are required for their position
• Accept any participation limits set by the instructor

For non-work-related courses or to receive grades, tuition is not covered.

For the purposes of TAB eligibility, enrollment assumes class attendance during the enrollment period. Admittance to the university and/or registering for courses prior to the start of the semester would not constitute enrollment.

For any eligible child who enrolls after April 15, 2025 (including any student who is accepted but not yet enrolled), the updated TAB plan will apply. This means they are subject to an age cap of 26 and they have 100% tuition coverage for one undergraduate degree (no graduate degree).

For eligible children who enroll after April 15, 2025, the age cap of 26 applies. In other words, if they are under 26 when enrolling, they will have 100% tuition coverage for one undergraduate degree through the TAB program up until the end of the semester in which they turn 26. After the semester they turn 26, they will no longer be eligible for TAB benefits.

As an eligible faculty or staff, your tuition benefits can be applied to any number of eligible children such that each of your children have access to TAB to earn one undergraduate degree.

For any eligible children who enroll after April 15, 2025 (including any student who is accepted but not yet enrolled), the updated TAB plan will apply. This means they are subject to an age cap of 26 and they have 100% tuition coverage for one undergraduate degree (no graduate degree).

If your child enrolled before April 15, 2025 and is using TAB for their undergraduate degree program, and they decide to apply for and are accepted to a progressive degree program during the course of their undergraduate studies, they are eligible for coverage for the graduate coursework associated with the progressive degree under the prior TAB plan.

If your child was enrolled in a progressive degree program prior to April 15, 2025, they will be able to maintain their coverage.

However, if your child was enrolled in a progressive degree program after April 15, 2025, they will be able to utilize TAB for the undergraduate portion of their degree only, as the one undergraduate degree limit applies to progressive degrees as well. Students remain undergraduates until completing 144 total units (unless their undergraduate degree is conferred prior to earning 144 units or they are awarded a graduate research or teaching assistantship by their academic unit or the Graduate School), and then transition to graduate status, after which future tuition will no longer be covered by TAB.

Under the updated plan program, TAB provides one undergraduate for each eligible child of active faculty or staff. If your child is enrolled in a undergraduate or graduate degree program before April 15, 2025, they can maintain their coverage until they complete their degree, as long as they remain continuously enrolled, and you as their faculty or staff sponsor remains eligible as a USC employee.

There will be no ability to utilize any remaining credits for a second degree.

As covered in the current and upcoming TAB programs:

• If you are an eligible faculty or staff who begins an employment-related Leave of Absence (including mid-semester or mid-session), you may complete your enrolled coursework but are ineligible for further tuition assistance until you return to active work status, as determined by the university.
• For your child or spouse/registered domestic partner, they will continue to receive their TAB benefits during your Leave of Absence.

An eligible dependent (including children and spouses/registered domestic partners) seeking a Leave of Absence while a student utilizing TAB must contact Campus Support and Intervention (CSI) for approval. If CSI approves the leave, they will notify the appropriate office to restore any lost units to the student’s account.

As part of the updated TAB plan, the 15-year benefit will be maintained for the following employees:

• Eligible employees hired prior to July 1, 2011
• Eligible employees with 15 years of benefits-eligible service

Children of former eligible faculty and staff receive TAB under the updated plan rules and future modifications.

Active eligible faculty and staff maintain TAB eligibility through continuous employment. The 15-year benefit letter applies only to former employees.

Faculty and staff hired after July 1, 2011 are not eligible for the 15-year benefit letter.

Faculty and staff hired prior to July 1, 2011, who have accrued 15 years of eligible service, should contact the HR Service Center by calling 213-821-8100 or emailing uschr@usc.edu to request their 15-year benefit letter.

As part of the updated TAB plan, the 15-year benefit will be maintained for the following employees:

• Eligible employees hired prior to July 1, 2011
• Eligible employees with 15 years of benefits-eligible service prior to their termination

Children of former eligible faculty and staff receive TAB under the updated plan rules and future modifications.

For a child enrolling in fall 2025, they would be eligible for one undergraduate degree subject to the 26 year age cap.

No, the 15-year benefit provision (for former faculty and staff hired prior to July 1, 2011, and who have accrued 15 years of eligible service) is not the same as TAB for current employees. The 15-year letter only provides tuition assistance eligibility for children.

No, as with the current 15-year benefit letter, this provision does not provide degrees for former faculty and staff.

Yes, each child of former faculty and staff (who completed 15 years of service before July 1, 2011) is eligible for 100% tuition reimbursement for an undergraduate degree or participation in the Tuition Exchange program, limited to 144 units and up to the age cap of 26.

No, as with the current 15-year benefit letter, this provision does not provide degrees for spouses/registered domestic partners.

As stated in the 15-year benefit letter, your child will be eligible for TAB benefits subject to the terms and conditions in effect at the time of their enrollment. For example, if a former employee has a 15-year benefit letter and their child enrolls for or after April 15, 2025, their child can use it for an undergraduate degree up to age 26.

No. There will be no changes to the Tuition Exchange program at USC, which offers coverage to undergraduate degrees for eligible children.

The updated TAB plan may be available for USC Study Abroad programs. The program must be a USC-approved school. Dependents need to consult with their Academic Advisor for more information.

No. A graduate certificate is not a degree, but rather a credential that can be earned in a specialized area through a short, intensive program. As part of the TAB updates effective April 15, 2025, graduate certificates will no longer be covered for faculty or staff. Undergraduate and graduate degree programs will continue to be covered.

Yes. Doctorate programs are designed for students who have already completed their undergraduate studies and often (but not always) require a master’s degree for admission. They represent the highest level of academic achievement within graduate education at USC.

A Progressive Degree Program at USC is a unique opportunity that allows exceptional USC undergraduate students to begin working on a master’s degree while still completing their bachelor’s degree. This program typically takes five years to complete, combining bachelor’s and master’s degrees. Students apply in their junior year, start graduate courses in senior year, and generally finish the master’s in the fifth year.

While faster than pursuing degrees separately, it’s longer than a standard four-year undergraduate degree. Students have up to six years to complete both degrees. This accelerated path enables students to deepen their education and prepare for their future careers more quickly, with the master’s degree building on the undergraduate field of study.

For more details about the TAB program, including tax implications, how to apply for benefits, and the updated TAB plan effective April 15, 2025, visit the Tuition benefits page on the Employee Gateway.