Tuition Benefit Frequently Asked Questions

A. Eligibility

1. What are the eligibility criteria for the IU Tuition Benefit?

The following categories of individuals associated with Indiana University are eligible for the IU Tuition Benefit and the IUHS Tuition Waiver. To be eligible, the individual must have such status by the end of the first week of classes (or at the time of registration for IUHS courses):

  • Full-time (75% FTE or greater) appointed Academic & Staff employees (including IU Residents);
  • Full-time (75% FTE or greater) appointed Academic and Staff employees (including IU Residents) on an approved leave of absence, other than a leave without pay prior to active employment;
  • Former employees with IU Retiree Status;
  • Disabled former full-time (75% FTE or greater) appointed Academic and Staff employees (including IU Residents) receiving long-term disability benefits from a university-sponsored plan, Social Security Administration, or PERF.
  • The spouse and dependent children of the above-listed eligible individuals, as defined below, if they have such status by the first day of the semester/term.
    • Spouse: spouse by marriage, either opposite-sex or same-sex, legally entered into in one of the 50 states, the District of Columbia, or a U.S. territory or a foreign country. To be eligible for the IU Tuition Benefit, by the first day of the semester or term, the spouse must meet the definition of a spouse of an eligible employee or -retiree, or of a deceased employee or retiree who was eligible at the time of their death.
    • Dependent child: a biological or adopted child, stepchild, or child whose legal guardian is an eligible individual. The child must also be unmarried; and be 23 years of age or under, and meet the IRS Support Test requirements as a qualifying child of the employee or spouse.
  • If a deceased employee or retiree was eligible at the time of their death, then spouses and eligible dependent children are still eligible to receive the benefit. A new IU Tuition Benefit application must be submitted for each academic year.

Review the full eligibility criteria for dependents in the Eligibility section of the IU Tuition Benefit website.

2. What if I have questions about whether I am eligible or how to enroll in IU Tuition Benefit?

Contact the Human Resources Customer Care team at AskHR by calling (812) 856-1234 or by email at .

3. What if both parents are eligible for the benefit? Can/will the IU Tuition Benefit be received under both parents?

When both parents of a dependent child are employed by the university and eligible for the IU Tuition Benefit, only one parent can submit an IU Tuition Benefit application for their child for a specific semester or academic year. The system does not allow the submission of duplicate applications. 

Dependent children are eligible to receive an IU Tuition Benefit subsidy for each campus of enrollment, and a separate application must be submitted for each campus.

4. Can I offer tuition benefit to my child if I am divorced and my ex-spouse claims the child as their tax dependent?

Yes, there are special rules for divorced or separated parents. Basically, if one or the other parent claims the child, both parents can claim that same child as a “dependent” for tuition benefit purposes.

5. If my child has become emancipated can I still apply for the tuition benefit for them?

No. The IRS says that “if a child is emancipated under state law, the child is treated as not living with either parent.”  This means the child would fail the residency portion of the IRS Support test requirements in determining tax-dependency status, thus making them ineligible for the IU Tuition Benefit plan.

6. Where do I begin the process of applying to attend IU?

You can start by going to apply.iu.edu.

B. Award rates and benefit limits

1. What is the IU Tuition Benefit for dependent children?

The IU Tuition Benefit for eligible dependent children is a subsidy of 50% of the billed tuition costs (associated with attending Indiana University classes) at the Indiana resident undergraduate rate, up to the completion of a bachelor’s degree or up to a maximum of 140 credit hours of IU Tuition Benefit awards. The benefit does not apply to audit hours or graduate coursework but can be applied toward multiple campuses of enrollment each semester/term. A separate IU Tuition Benefit application will need to be completed for each campus of enrollment.

2. What are the dollar limits for the employee or spouse IU Tuition Benefit?

The rates may be found on the benefits amounts page.

3. Will the employee and spouse benefit limits be based on the tuition at the campus where the student is enrolled or the campus where the employee works?

The benefit is based on the campus where the student is enrolled.

4. When the employee or spouse is the student, is the benefit amount they receive based on their class standing (graduate/undergraduate) or the course designation (graduate/undergraduate)?

The benefit is based on the student’s class standing. For example, if an undergraduate student takes a graduate class, they will be charged the undergraduate tuition rate and tuition will be covered up to the undergraduate IU Tuition Benefit dollar maximum.

If a graduate student takes an undergraduate class,  they will be charged the graduate tuition rate and tuition will be covered up to the graduate IU Tuition Benefit dollar maximum.

5. What will my benefit be for the graduate or professional programs?

For an eligible employee who is the student, the IU Tuition Benefit is based on the campus of enrollment and degree program. They will receive either the same benefit or a slightly higher benefit depending on whether they are enrolled in a graduate program or a professional program (such as Dentistry, Law, Optometry, etc.).  

For a spouse, the IU Tuition Benefit is based on the campus of enrollment, and not the degree program.

Dependent children are only eligible to receive the IU Tuition Benefit for undergraduate coursework.

6. Who determines whether my tuition is charged at the Indiana-resident rate or non-resident?

The Registrar’s Office on the campus where you are registered for classes determines your residency status. Learn how IU determines your residency.

C. Applying for the benefit

1. Where do I find the IU Tuition Benefit application and where do I submit it?

Applications can be found at the Tuition Benefit web page.

The simplest and fastest way to apply is online either through the link above or by visiting one.iu.edu and searching for the “Tuition Benefit” task. An email confirmation will be sent to your IU email address once you have submitted the application. If you do not receive an email confirmation, then your application was not successfully submitted. 

You may also submit your application via the pdf form, or you can print the paper application and send the completed form and any documentation, if applicable,

  • via email to , or
  • by fax to (812) 855-3409, or
  • mail to IU Human Resources – Attn: Tuition Benefit, 2709 E. 10th Street, Ste 321, Bloomington, IN 47408

Former employees with IU Retiree Status must submit a pdf or paper application, as they do not have access to the online application.

2. When do I apply for IU Tuition Benefit?

For tuition for any semester/session to be covered by the IU Tuition Benefit, the employee or Retiree must 1) be eligible by the end of the first week of classes and 2) submit an application by the semester/term deadline.

Deadlines for each semester/term are listed below. After these deadlines no subsidy will be applied, and the student will be responsible for their entire bursar bill for that semester. Applications can be submitted up to a full academic year in advance.

Semester/Term Deadline
Fall October 30
Winter January 30
Spring March 30
Summer July 30

To avoid being billed for the full tuition amount, employees are encouraged to submit their application for the academic year as early as possible. If the application is processed after the student has been billed for tuition, the student must pay the full tuition bill by its due date.  Once the application is processed, the student will receive a refund through the Office of the Bursar.

The online application is the simplest and fastest way to apply for the IU Tuition Benefit, but paper applications are also accepted. In either case, a new application must be submitted for each academic year before the application deadline. 

3. When is the last day I can apply for IU Tuition Benefit?

For tuition to be covered by the IU Tuition Benefit, the employee or retiree must 1) be eligible by the end of the first week of classes, and 2) submit an application by the semester/term deadline.

Deadlines for each semester/term are listed below. After these deadlines no subsidy will be applied, and the student will be responsible for their entire bursar bill for that semester. Applications can be submitted up to a full academic year in advance.

Semester/Term Deadline
Fall October 30
Winter January 30
Spring March 30
Summer July 30

4. What if I need to make changes to a submitted application?

Contact IU Human Resources at prior to the semester/term deadline listed below. We will review your student record and advise if we can change your application, or if a new application will need to be submitted.

Semester/Term Deadline
Fall October 30
Winter January 30
Spring March 30
Summer July 30

5. How do I apply if I am registered for classes on multiple campuses?

If you are registered for classes on multiple campuses,  you must complete an application for each campus of enrollment.

If you are an employee/retiree or spouse, be sure to review the multiple campus plan provisions.

6. How do I know the status of my application?

If you apply for the benefit online, you will automatically receive an email confirmation of your submission. Be sure to verify that the confirmation email reflects the correct semesters/terms, campus, and degree program.  Once your application has been approved by our office you will receive another email confirming that your application has been approved.  You will typically see the benefit applied to your student bursar account either with the first bill of the semester/term or within 1-2 weeks after approval of the benefit.

If the student is a spouse or a dependent child, they will also receive email confirmations. 

If you have questions or concerns regarding your application, please contact IU Human Resources at or call (812) 856-1234 for more information.

7. How can I check to see if I have already submitted an IU Tuition Benefit application?

There are two ways to verify that you’ve already submitted an application:

  • Check your IU email account. Confirmations are sent when an application has been submitted and when it has been approved. Review the confirmation to verify that it reflects the correct campus, degree program, and semesters/terms.
  • Check the student’s bursar account after they register for classes and have tuition charges. .

If you are still unsure whether an application has been submitted, please contact IU Human Resources at .

D. Charges and billing

1. Who determines whether my tuition is charged at the Indiana-resident rate or non-resident?

The registrar’s office on the campus where you are registered for classes determines your residency status. Learn how IU determines your residency.

2. Who do I contact to find out why my IU Tuition Benefit did not get applied to my bursar bill?

If your IU Tuition Benefit subsidy is not applied to your student bursar bill, contact IU Human Resources at or call (812) 856-1234 prior to the respective semester/term deadline listed below.

Semester/Term Deadline
Fall October 30
Winter January 30
Spring March 30
Summer July 30

If your application has been processed, contact the Office of the Bursar on the campus of your enrollment to discuss your bill.

3. Will the IU Tuition Benefit award apply to all the charges on my bursar bill?

No. The benefit applies only to the per-credit-hour tuition rate charged to a student. It does not apply to special fees such as:

  • Music performance studies
  • Student teaching
  • Laboratories
  • Early education experience
  • Advanced dissertation research (B798, G831, G901, or equivalent)
  • Testing out of courses
  • Rental of special equipment or facilities
  • Fees for non-credit courses
  • Mandatory student fees, such as student technology, activity, athletic, transportation fees, etc.

Covered individuals are responsible for all tuition costs over the benefit maximum and excluded fees.

4. What if I need help understanding the charges on my tuition bill, or believe that the charges on my Bursar bill are not correct?

Please contact the bursar office on the campus where you are registered for classes.

  • Bloomington: Student Central on Union at , (812) 855-6500, or 408 North Union.
  • Columbus: Office of the Bursar at , (812) 348-7399, or Campus Center, Room 156
  • East: Office of Student Accounts at , (765) 973-8345, or Whitewater Hall, Room 102
  • Fort Wayne: Student Central at , (833) 384-8784, or Neff Hall, Room 110
  • Indianapolis: Office of the Bursar at , (317) 274-2451, or Campus Center, Room 250
  • Kokomo: Office of the Bursar at , (765) 455-9352, or Kelley Student Center, Room 205
  • Northwest: Office of Student Accounts at , (219) 980-6622, or Hawthorn Hall, Room 109
  • South Bend: Office of the Bursar at , (574) 520-4253, or Administration Bldg, Room 100
  • Southeast: Student Central at , (812) 941-2100, or University Center South, Room 103

5. What happens if I receive an IU Tuition Benefit award for a class, then drop the class?

During the refund period:

If the student drops courses or withdraws from school during the 100% refund period, any refund applicable to the IU Tuition Benefit will revert back to the university, and the employee/retiree is not taxed on any IU Tuition Benefit. For dependent children, the credit hours for the dropped courses will not apply toward the 140-credit hour maximum for the IU Tuition Benefit.

If the student drops courses or withdraws from school during the 25-75% refund period, any refund applicable to the IU Tuition Benefit will revert back to the university, and the employee/retiree will continue to be responsible for any applicable taxes on the IU Tuition Benefit award amount that remains applied to the bursar account. See the Benefit Taxation section. For dependent children, the IU Tuition Benefit award amount that remains on the bursar account for the credit hours for the dropped courses will still apply toward the 140-credit hour maximum for the IU Tuition Benefit.

After the refund period:

If the student drops courses or withdraws from school after the refund period, the IU Tuition Benefit award amount will stay applied to the student’s bursar account, and the employee/retiree will continue to be responsible for any applicable taxes. See the Benefit Taxation section. For dependent children, the credit hours for the dropped courses will still apply toward the 140-credit hour maximum for the IU Tuition Benefit.

6. What happens if I receive an IU Tuition Benefit award for a class then fail the class?

If the student fails courses, the IU Tuition Benefit award amount will remain on the student’s bursar account, the credit hours for the failed courses will still apply toward the dependent child’s 140-credit hour maximum (if applicable), and the employee will continue to be responsible for any applicable taxes. See the Benefit Taxation section.

7. When will the IU Tuition Benefit be applied to my student bursar account?

Once your application has been approved by IU Human Resources, your benefit information will be forwarded to the campus financial aid office for coordination with any financial aid awards that the student may have, then forwarded to the campus bursar office to be applied directly to the student's bursar account.

Most awards will be processed and applied to the student's bursar account within 1-2 weeks from the date of submission. This is after the student has registered for classes and the tuition charges are reflected on the student’s bursar account.

If the application has been processed after the student has paid for their tuition, the student will receive a refund through the bursar office.

E. Eligible courses

1. Does the IU Tuition Benefit apply to audit (non-credit) hours?

For IU employees/retirees and spouses, audit hours are eligible for the IU Tuition Benefit. 

For eligible dependent children, audit hours are not eligible for the IU Tuition Benefit. Courses must be taken for credit to receive the benefit.

2. Does the IU Tuition Benefit apply to online courses?

Any online course or certificate that earns credit hours and is billed through IU’s Office of the Bursar is covered by the IU Tuition Benefit. EdX courses are not eligible for the IU Tuition Benefit as they are billed through the EdX program and not IU’s Office of the Bursar.

3. Does the IU Tuition Benefit apply to courses taken at a different University?

No, the IU Tuition Benefit is a subsidy toward the tuition costs associated with attending Indiana University classes. The benefit is applied directly to the student’s bursar bill.

4. Does the IU Tuition Benefit apply to courses taken overseas?

Maybe. The IU Tuition Benefit only applies to the tuition costs associated with Indiana University and billed through IU’s Office of the Bursar. Some overseas partnering schools may have additional tuition and fees or may charge tuition through their own offices. These are not eligible for the IU Tuition Benefit.

5. Does the IU Tuition Benefit apply to courses taken as part of a certification program?

Maybe. The IU Tuition Benefit only applies to the tuition costs associated with Indiana University.  The certification program needs to be through IU, billed through IU’s Office of the Bursar, and earn credit hours that are transferrable as college credit.

6. Does the IU Tuition Benefit apply to Advanced Dissertation Research courses?

No. Courses such as B798, G831, G901, or equivalent are not eligible for the IU Tuition Benefit.

7. What courses and programs are not eligible for the IU Tuition Benefit?

  • Advanced Dissertation Research courses such as B798, G831, G901, or equivalent
  • Business Essentials Program through the Kelley School of Business
  • EdCert program through UITS
  • EdX MicroMasters courses as they are billed through the EdX program and not IU’s Office of the Bursar
  • Intensive English Program (IEP)
  • Fees for testing out of courses as they are billed as special credit fees and not tuition costs

This is only a partial list of ineligible courses & programs and is subject to change at any time.

8. How do I know if the IU Tuition Benefit applies to a specific course or degree program?

Listed below are the general guidelines for IU Tuition Benefit eligibility for eligible employees, their spouse, and eligible dependent children.

  • Must be admitted as a student at Indiana University; and
  • Must be coursework through Indiana University; and
  • Must be billed through IU’s Office of the Bursar as “tuition” costs; and
  • Must earn credit hours that are transferrable as college credit. For IU employees/retirees and spouses, audit hours are eligible for the IU Tuition Benefit. For a dependent child, the benefit does not apply to audit hours or graduate coursework. 

The IU Tuition Benefit applies only to the per-credit-hour tuition rate charged to a student. It does not apply to special fees such as those for laboratories, applied music, student teaching, education early experience, advanced dissertation research (B798, G831, G901, or equivalent), testing out of courses, or rental of special equipment or facilities. Mandatory fees (activity, health, technology, transportation, etc.) are also not covered by the IU Tuition Benefit.

F. Taxes and other financial aid

1. Are graduate courses subject to taxation?

IRS Section 127 (as described in the IU Section 127 Plan document) allows the preferential tax treatment of up to $5,250 annually for employee subsidies paid toward graduate level tuition, but only for those described in the Eligible Employees and Retirees section.

Graduate level tuition subsidies for courses taken by a spouse are treated as taxable income to the associated employee or Retiree, as well as subsidies for graduate-level tuition for an employee above the $5,250 IRS annual limit.

For tax purposes, it does not matter which family member took the graduate-level course, the IU Tuition Benefit is an employee/retiree benefit. Therefore, the employee or retiree is responsible for applicable taxes. Such taxes will be deducted from the employee’s pay, and in the case of a retiree, the value of the graduate-level Tuition Benefit, in excess of $5,250 annually, will be given as taxable gross income.

The IU Tuition Benefit for graduate-level courses will be added to the employee’s taxable income beginning with the payroll cycle following the end of the full refund period for dropping courses. An email  reflecting the amount of additional taxable income and the payroll periods affected will be sent from University Tax Services. For additional information, visit the Fringe Benefits web page or email .

2. Are graduate courses subject to tax if the recipient's degree program is undergraduate?

Yes, if an undergraduate employee/retiree enrolls in graduate course work and receives tuition benefit in excess of $5,250 annually, it will be considered taxable.

If a spouse is an undergraduate but enrolls in graduate coursework, their tuition benefit will be considered taxable.

For tax purposes, it does not matter which family member took the graduate-level course, the IU Tuition Benefit is an employee/retiree benefit. Therefore, the employee or retiree is responsible for applicable taxes.

If an employee/retiree or spouse is a graduate student but enrolls in an undergraduate course, the tuition benefit received for that course will not be considered taxable.

3. If I am an IU Retiree and either I or my spouse take taxable course work, how will I pay the taxes?

The value of the IU Tuition Benefit award for the taxable coursework will be reported as taxable income on a W-2 tax form and will be mailed to the Retiree. For additional information, visit the Fringe Benefits web page or email .

4. If I am receiving other aid, does the IU Tuition Benefit get applied to my bursar account first?

Yes. Regardless of whether you receive financial aid, scholarships, grants, etc., the IU Tuition Benefit will be the first award applied to your student bursar account. 

5. What if I have a question about my financial aid application (FAFSA)?

Contact your campus Office of Financial Aid.

6. What if I have questions regarding IU Tuition Benefit and how it impacts my grants, scholarships, etc.?

Contact your campus Office of Financial Aid.

7. Should I apply for the IU Tuition Benefit when my student is a 21st Century Scholar?

If your student is a recipient of the 21st Century Scholar award from the Indiana Commission of Higher Education (ICHE), you will not need to apply for the IU Tuition Benefit for the academic year. The 21st Century Scholar award pays full tuition and mandatory fees. However, if your student chooses to enroll in the summer term and is not receiving the 21st Century Scholar award, you would want to apply for the IU Tuition Benefit for the summer term.

8. What if I have questions regarding the taxes for the IU Tuition Benefit?

Contact University Tax Services at or (812) 855-0375. You can also visit the Fringe Benefits web page for additional information.