REG 07.55.08 - Tuition Waiver for Faculty and Staff - Procedures

REG 07.55.08 – Tuition Waiver for Faculty and Staff – Procedures

Authority: Issued by the Chancellor.

History: First Issued: December 19, 2006. Last Revised: October 14, 2025.

Additional References:
N.C. Gen. Stat. § 116-143
Employee Tuition Waiver Guide

Contact Info: University Human Resources Benefits Office (policy) (919-515-2151); University Cashier’s Office (processing of waiver) (919-515-2986)

1. Introduction

This regulation implements NCSU POL07.55.07 – Tuition Waivers for Faculty and Staff. Specifically, the regulation sets forth eligibility for tuition waivers, establishes application procedures, and establishes the roles and responsibilities for university units that process the applications. The University Human Resources Benefits Office (Benefits Office) is responsible for policy promulgation and interpretation. The University Cashier’s Office (Cashier’s Office) handles the processing of the waiver and maintains all data associated with waiver requests.

2. Tuition and Fee Waiver Definitions

2.1. North Carolina State University (NC State) permits the waiver of tuition for employees (as that term is defined in UNC 1000.2.2.1[R]) for up to three courses per academic year, provided that such enrollment does not interfere with the employee’s normal employment obligations. Per special provision, law enforcement officers may enroll in an unlimited number of courses per academic year subject to approval by the officer’s campus police chief or director of campus safety and security (and enrollment in courses by the campus police chief or director of campus safety and security is subject to approval by the chief’s or director’s immediate supervisor).

2.2. Tuition waivers may be used during any academic session (fall and spring semesters and/or summer sessions). The waiver may be applied to up to two courses taken by an employee in fall or spring semester and for one course during a summer session. If additional courses are taken, the employee will be charged for the course based on the employee’s student classification, residency and official credit hours.

2.3. The tuition waiver may be used to take a course at any constituent institution of the University of North Carolina. Employees exercising this privilege are subject to the rules of the individual institutions.

2.4. The tuition waiver applies to both audited courses and those taken for academic credit. Employees classified as “Graduate” are not eligible to use the waiver and receive an additional free audit course.

2.5. The tuition waiver privilege does not apply to non-credit continuing education courses and does not apply to study abroad programs (i.e., cannot be applied towards a study abroad program cost inclusive of instructional expenses).

2.6. A drop/withdrawal from a tuition-waived course after the Drop/Revision Deadline counts as one of the waivers allotted for that academic year.

2.7. NC State also permits the waiver of corresponding required fees with the limitations set forth in NCSU POL 07.55.07 – Tuition Waivers for Faculty and Staff.

2.8. “Tuition” shall mean the tuition charges for the academic year established by the Board of Governors and shall not mean charges or fees for enrollment in correspondence courses, continuing education courses, extension courses, or other instruction principally supported by receipts from enrollees.

2.9. “Fees” shall mean those student fees required for attendance at NC State related to credit instruction, regardless of when the instruction occurs or by what means it is delivered. Campus policy must specify under what circumstances, if any, a student may receive a waiver for receipts-supported courses.

3. Application Procedures

3.1. Each employee requesting a tuition waiver for courses at NC State must:

3.1.1. Enroll in the desired course(s) no later than the last day to add a course (Census Date) for the semester or summer session being attended; and

3.1.2. Submit via the MyPack Portal, a completed, properly endorsed “Application for Faculty/Staff Tuition Waiver” form with signed approval of the employee’s supervisor to the Cashier’s Office no later than 5:00 p.m. of the Census Date to add a course for the semester or summer session being attended.

3.1.3. Enrollment in courses and forms submitted after the Census Date for the semester or session will not be accepted for waiver.

3.2. For employees of institutions other than NC State, it is the employee’s responsibility to submit a printed copy of the electronic application to the Cashier’s Office by no later than 5:00 p.m. on the Census Date. For NC State employees enrolling at an institution other than NC State, it is the employee’s responsibility to follow the policies and procedures set by that institution.

3.3. Verification of employment will be cross-referenced in MyPack Portal (or for employees from other institutions, will be otherwise verified) to ensure that the employee is in an eligible employment status.

3.3.1. After confirmation of eligibility, the Cashier’s Office will verify that the request does not exceed the allowable number of waivers.

3.3.2. Individuals who are not in an eligible employment status or who have exceeded the allowable waivers will be notified in writing via email by the Cashier’s Office that the waiver cannot be accepted. If the waiver is not accepted, the employee will be allowed to drop the class within five (5) business days without penalty or may continue in the class and pay all applicable costs.

4. Calculating the Waiver

4.1. If an employee is eligible for a tuition waiver, the cost of one course in the summer session and up to three courses in the fall and/or spring (for a total of up to three courses per academic year) will be deducted from tuition and fee charges.

4.1.1. If an employee is taking multiple courses, tuition will be charged at the full rate for the courses exceeding the tuition-waived courses.

4.1.2. The course(s) with the greatest number of hours are selected for deduction first.

4.1.3 If class hours are equal, the on-campus courses are selected over distance education courses.

4.2. Courses with a co-requisite lab/practicum are treated as one course.

4.3. Incremental tuition costs associated with certain programs (ex: Masters of Business Administration, Masters of Accounting) will also be included in the waiver calculation. If an employee is taking multiple classes, the incremental tuition will be charged based on the rate for the remaining schedule.

4.4. Residency does not have an effect on the amount waived. The out-of-state rate will be waived at the full amount for that course.

5. Loss of Eligible Employment Status

5.1. If an employee does not continue in an eligible employment status throughout the entire semester or session during which the tuition waiver had been requested, the employee’s options are as follows:

5.1.1. Continue their course enrollment and pay the full amount of the in-state or out-of-state tuition and fees for the total number of credit hours; or,

5.1.2. Withdraw from the course(s) for which they were receiving the tuition waiver immediately upon discontinuation of their eligible employment status and not be held responsible for the costs of the course(s).

6. Taxation

6.1. The Cashier’s Office will provide the University Payroll Office (Payroll) with a list of faculty and staff who have utilized the waiver each semester. Payroll will consolidate the list for the fall and spring semesters and summer sessions [to create a calendar year list] to determine if any employee has exceeded the IRS allowable limit. Employees with waiver amounts that exceed the IRS allowable limits may be subject to taxation on the excess value. Payroll will notify employees that the excess amount will be processed as “Wages in Kind” for purposes of taxation.

6.2. Certain job-related education may qualify for exclusion from income as a working condition benefit. To qualify for tax exclusion, the course(s) must meet at least one of the following tests:

6.2.1. The education is required by NC State or by law for the employee to keep his or her present salary, status, or job. The required education must serve a bona fide business purpose of the employer.

6.2.2. The course(s) maintains or improves skills needed in the job.

6.2.3. If the education meets one or both of the above tests, it is not qualifying education if it:

6.2.4. Is needed to meet the minimum educational requirements of the employee’s present trade or business, or;

6.2.5. Is part of a program of study that will qualify the employee for a new trade or business.

6.3. The value of the tuition waived will not be taxable if the employee withdraws or drops the tuition-waived class no later than the last day to withdraw with a prorated refund for that semester.