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Alternative Tuition Assistance Resources

Alternative Tuition Assistance Resources

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By Susan F. Schulz, Ed.D., Founder, Schulz School Advisors

Owners of Title IV approved schools have many challenges when it comes to managing student financial aid. Financial Aid staff must be properly trained and updated whenever there are changes. Third-party consultants must pay attention to the specifics of each school client.

Schools must also have a comprehensive plan so that students are very aware of the loans and grants for which their signatures obligate them. Graduates must be well informed about their payment obligations and the number of years they will be paying off school loans. Graduates often feel like they have a lifetime of student debt management after they leave school – not a pleasant memory of the time spent training for a new career or opportunity

School owners in many different states, and accredited by various accreditors, tell us how they are overcoming these challenges. From our conversations, we have compiled several alternative tuition assistance resources. Here is a summary of those that school owners have shared with us. In addition to addressing the challenges of loan management, alternative tuition also provides some remedies to 90/10 challenges.

Disclaimer: Before implementing any of these concepts it is essential to check with all your regulatory agencies to be sure they are permitted.

Employer tuition benefits

Many companies offer tuition assistance as part of their employee compensation package. It is important to determine which businesses in your community offer these benefits and let prospective students know. This takes “community outreach” initiatives. Specifically, your Career Services team needs to contact every company that employs your graduates or could. Inquire whether compensation includes tuition benefits. Strangely companies don’t always publish this information and need to be asked.

You may be able to market directly to the employees and HR departments of these companies.

Many companies value training, and your school might be the one to meet their needs. Show the benefits of employee training that your school can provide.

Ask what training might be needed in the future and design courses and programs that offer them. By doing this you can increase enrollment, benefit from the students’ tuition benefits, and meet hiring needs of employers. You will also discover who to contact about job and externship openings. In addition, company owners are great to invite to sit on your advisory boards. Their staff can offer classroom presentations and visit Career Services to talk to students about specific skills needed when hiring.

In certain industries, the hiring company will pay tuition for the student. Often the student must agree to work for the company for a certain period of time after graduation. The student may have to agree to allow tuition payments to be deducted from their salary. This strategy is popular with truck driving companies that are desperate for drivers as well as schools training for automotive and other highly technical industries. It can work in many job markets where there are limited trained people available to hire. To make this happen a “community outreach” person on your staff needs to reach out to employers. It takes making appointments and sitting with decision-makers at each company. Aim for a win-win for all parties – the employers, the students, and the training institution.

Employer scholarships – another version of employer tuition benefits

Employers may be open to tuition assistance by providing scholarships that do not have to be paid back. Employers may offer outright scholarships in order to increase the number of employees trained to meet their hiring needs. Check regulatory guidelines to be sure your definition of “scholarship” is in line with rules.

Tuition payment upon placement

There are a growing number of schools that do not require tuition payment until the graduate is employed. Doesn’t that sound amazing? We have spoken with several school owners doing this, and they have proved that it works.

Here’s an example. An ophthalmic training school is located within an ophthalmic medical center. Training is specific to eye care and highly technical. Therefore the graduates can earn $20 or more an hour. The students complete the program and typically get hired immediately. They are given five years to pay tuition starting from the date they are employed. It’s a win for everyone.

Yes, some upfront funding is required until there are sufficient graduates. However, since training is completed within a medical practice, there are little to no costs for office space, classrooms, supplies, or equipment. Staff handles administrative and teaching tasks. Students do pay for books, uniforms, and supplies upon registration. Check regulatory refund policies, so you are in line with them.

Micro school industries

There is a growing number of on-ground and online schools that offer consulting and research work to companies on a fee basis. For example, an industrial design college also owns a consulting company. The consulting company provides industrial design services to companies requiring them. Wherever possible the consulting projects are completed in class by students and teachers. It’s a win-win. Consulting projects get completed, students learn by doing, and fees pay tuition, so students graduate nearly debt-free.

An online college we know has a different approach. They take on paid consulting and research projects that staff completes and where appropriate students work on these projects for course credit. The school gains a flow of income, which eases tuition payments for students and is applied to other costs.

Native American Tribal groups in Florida: Miccosukee, Seminole, Tequesta

This is a little- known resource that may be available in your state from other Tribal communities. Explain your programs. Find out who the decision makers are and plan an in –person visit. Ask about and attend Tribal College Fair events. Often the Tribal community will pay full tuition for a qualified Member. Typically the school owner is expected to create and maintain relationships with the Tribal higher education contact.

Locating the Tribal education decision maker is often a challenge. It takes internet research and lots of phone calls and emailing. We find that when the school owner makes the contact doors open a bit quicker. In any case, it’s about being open, interested, and respectful in all communications.

Work off tuition

Some institutions, such as massage and cosmetology schools, have clinic sites. This is where the public is offered discounted services and students can practice required course skills. An accredited massage school owner told us how her students graduate debt-free. Her tuition assistance program requires students to work in the clinic for the number of services or hours that equal the tuition. These are hours in addition to services required by the program. Students enhance their skills and also graduate debt-free.

Yes, the service hours total more than the hours required. But it is a win-win for all. The school has a cash flow, customers get quality service at low prices, and graduates increase their skills and graduate with no loans.

Important note: It is essential that school owners check with each of their regulatory agencies to be sure this concept is allowed. Some schools have been sued because of “wage and hour issues.” The claim is that students are employees of the school. Working off tuition may be deemed a form of unpaid compensation.

Workforce Investment Act (WIA)

Workforce Investment Act (WIA) is also known as One Stop, Career Stop, and Unemployment offices. Use the internet to locate the offices near you. Be sure that the school owner, director, or decision maker creates and maintains relationships. WIA typically wants to see institution employment and job placement data. In fact, often job placement statistics are the key to gaining approval.

Once you are enrolled with one office then seek approval in every other office within the counties near your school. Benefit from what you learn from one office to be successful in the next.

It is important to coach prospective students about how to have successful WIA meetings. This means creating a package for the student to take on their interview. Be sure it includes information about your school, its programs, job placement data, where graduates work, enrollment agreement, catalog, fees, and more. Know what each WIA office wants, so the prospective student has a successful interview and is approved for a full scholarship. Be sure that your WIA representative and the admissions staff follow up.

Credit unions

Credit Union banks are often more agreeable to awarding student education loans than commercial banks. However, students must be credit-worthy. This is another tuition opportunity that is best developed by the institution owner or director. Relationships must be made and then maintained with the appropriate people at the banks. Prospective students need to be coached on how and where to apply. Ideally, you can get copies of the forms that the credit union will ask students to complete. It’s a good idea to work with the prospective student to fill out the forms before meeting with the bank.

Recourse lenders

These are companies that are set up to lend tuition funds to students, the institution, or both. Each company has different terms and services. Interest is applied. These companies are usually easy to locate on lists of companies found on state association websites and websites of organizations focused on the career college sector. Career Education College and Universities (CECU) lists all allied members alphabetically. Search on company names that offer financial aid services. http://www.career.org/allied-plus-allied-member-directory.html. Here’s the Florida school association. http://www.fapsc.org/search/custom.asp?id=1961. Check under the following categories: collection services, default management, financial aid, receivables management, student financial aid, and tuition financing.

Payment plans

Your institution can assume the role of “bank” and offer payment plans to qualified students. There are also companies that manage the collection process for a fee. You can also offer automatic deduction from student credit cards. Some of these resources are listed on the websites described above.

State grants and awards

Bright Futures and other tuition assistance plans are offered to Florida postsecondary students. Some career schools can qualify. There are tuition assistance programs in other states like California and New York. It pays to research what is offered in your state. It takes patience, but even if a handful of your students qualify, that’s fewer loans to worry about.

Market to international students

International students very often want U.S. degrees. They are typically required to pay tuition in cash plus show proof of funds for living expenses. On-ground schools must be SEVIS approved.

International students usually seek degrees, and the location of the school must be “international” friendly. International friendly implies that students from another country will be comfortable in that city. Specifically, this means that there are other international students, there is reasonably priced housing, transportation, and ideally a direct flight from the student’s home country.

Of great importance is that the school has a very strong full- time International Student Services Department. International students can easily get “lost.”

They need a lot of hand-holding for everything – housing, health, and many tasks of daily living.

There are many non-U.S. colleges seeking alliances with U.S. degree-granting schools. This means a steady flow of students from the international college to yours. If you offer online degrees, it makes it easier for international students to attend your institution and SEVIS approval is not required.

Tips and disclaimers

These concepts have been conveyed to us by owners of a variety of schools and colleges. Some are large, others small, some accredited but not Title IV approved, and others that rely on Title IV. An alternative tuition concept that works for one school owner may not work for you. A concept may not be allowed by your state or by your accreditor. That is why checking with all regulatory agencies before taking any action is a must.

Typically the school owner or decision-maker must initiate and maintain relationships with tuition assistance providers. People you approach often want to know they are working with high-level personnel.

Note that not every school will qualify for the alternative tuition assistance described above. Not every student will be eligible. Usually proof of outstanding graduate employment data is important to bring to any meeting. Remember that if you can enroll one student from each of the resources described that will be over 12 students you might not have enrolled otherwise.

Schulz School Advisors is not responsible for any decisions made by these resources, by any regulatory agencies, or any funding awarded.


Susan Schulz

DR. SUSAN F. SCHULZ is Founding Owner of Schulz School Advisors and president of Susan F. Schulz & Associates, Inc. The focus is on setting up and developing schools and mergers and acquisitions. She has been an innovator in the career school sector for over 22 years and watches and reports on trends in private higher education in the U.S. and internationally.



Contact Information: Susan F. Schulz, Ed.D. // Founder // Schulz School Advisors // 561 483 9554 // susan@susanfschulz.com // susanfschulz.com, schulzschooladvisors.com // Social Media: LinkedIn

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