< BACK TO RICE POLICIES

Policy Number: 430

Policy Suffix:

Dependent Tuition Benefits

I. General Policy

This policy applies to eligible dependents of benefits-eligible Faculty and Staff, as well as eligible dependents of retirees.

Rice University provides eligible dependents with different levels of undergraduate tuition benefits at Rice University, other universities having reciprocal tuition arrangements with Rice, and any undergraduate accredited, degree-granting college or university in the United States.

Definitions and Eligibility

The following dependents may be eligible for this benefit:

  1. Spouses and registered (under Rice procedures) domestic partners of Rice Employees/Retirees (as defined below) who are seeking their first undergraduate degree, and
  2. Eligible Dependent Children (as defined below) of a Rice Employee/Retiree, and
  3. Eligible Dependent Children of a deceased Rice employee who was actively employed at Rice until their death and would have qualified for Retiree status under Rice Policy 414 had they chosen to retire before their death.

For purposes of this policy, "Rice Employee/Retiree" means an eligible active faculty, active staff member, or a Retiree under Rice Policy 414 (in the case of a Retiree, whether living or deceased). Rice Employee/Retiree also includes a deceased employee who was actively employed at Rice until their death and would have qualified for Retiree status under Rice Policy 414 had they chosen to retire before their death.

For purposes of this policy, "Eligible Dependent Children" means those who meet each of the following four criteria:

  1. seeking their first undergraduate degree, and
  2. under age 25 at matriculation, and
  3. one of the following:
    • the unmarried biological child of the Rice Employee/Retiree and for whom the Rice Employee/Retiree is the legally designated parent; or
    • the unmarried stepchild of the Rice Employee/Retiree and who is the biological or adopted child of the Rice Employee/Retiree's current spouse; or
    • the unmarried legally adopted child of the Rice Employee/Retiree and for whom the Rice Employee/Retiree is the legally designated parent; or
    • the unmarried biological or adopted child of the Rice Employee/Retiree's domestic partner (as currently registered under Rice procedures) and for whom the domestic partner is the legally designated parent, and
  4. a dependent of the Rice Employee/Retiree at the time the benefit is awarded and for any previous three years during the child's life. A child is considered a dependent when at least one of the following statements is true:
    • the child is claimed as the Rice Employee/Retiree's dependent at least every other year on their federal income tax returns, or
    • the Rice Employee/Retiree's household provides more than 50% of the child's financial support, or
    • the child lives primarily with the Rice Employee/Retiree when they are not away at school.

The intent of these eligibility criteria is to provide tuition for children in close, long-term child/parent relationships with a Rice Employee/Retiree. This policy does not attempt to extend the benefit to all possible child/guardian relationships. For example, grandchildren and other children for whom the Rice Employee/Retiree is a guardian are not eligible.

Upon request, the Rice Employee/Retiree must provide Rice with proof of relationship, dependency, and/or residency, which may include providing IRS forms, high school enrollment forms or other proof of residency, and birth or marriage certificates.

Commencement of Eligibility

Eligibility begins the first semester following the faculty or staff member's completion of three continuous years of employment in a benefits-eligible position at Rice University. The three years of continuous benefits-eligible service must be completed by the first day of classes to permit the use of the benefit in that semester. Spouses, registered domestic partners, and children continue to be eligible as long as their spouse or parent is continuously employed in a benefits-eligible status at the beginning of each semester and all other eligibility criteria continue to be met.

Termination of Service or Eligibility

Should employment cease (or eligibility for this benefit otherwise cease) during an academic year, the benefit will continue through the end of the semester in which employment or benefits eligibility ceases and will end immediately thereafter. Dependent children who marry as undergraduates lose eligibility for tuition remission beginning with the semester after the date of their marriage. If a divorce or revocation of domestic partner registration causes a student to lose eligibility, the student loses eligibility for tuition remission beginning with the first semester after the date of the divorce or revocation of domestic partner registration.

Use of the Benefit at Rice

The student's admission to Rice University is not automatic. Eligible dependents must be accepted to Rice through the standard admission process. To be admitted as an undergraduate degree candidate at Rice, the prospective student must submit a formal application to the Rice University Office of Admission according to the admission calendar and must meet the established deadlines. The student must competitively meet the University's requirements for admission and pay applicable application fees.

Upon the eligible dependent's admission to Rice, to a university with which Rice has a reciprocal agreement, or any accredited, degree-granting institution, the Rice Employee/Retiree must complete the Application for Dependent Tuition Benefits and return it to the benefits team. Eligibility is reviewed semester-by-semester. Typically, students will not be awarded tuition remission after the beginning of a semester, nor will tuition remission be withdrawn before the end of a semester.

Additionally, the Rice University Application for Financial Assistance must be completed and returned to Student Financial Services, and the FAFSA (Federal Application for Student Aid) must be completed online at www.fafsa.ed.gov. Student Financial Services uses this information to verify dependency for eligibility for federally-funded financial aid and to assist the family with additional financing options. For questions about student financial aid to Rice University, contact Student Financial Services.

The benefit for each eligible dependent is limited to a maximum of eight semesters. In the case of transfer students, this benefit is limited to the number of semesters necessary at the time of transfer to complete the first undergraduate degree at Rice (not to exceed, and most likely, less than, eight semesters.) The benefit for each eligible dependent at the time of the employee’s dependent tuition benefit eligibility is limited to the maximum number of semesters necessary to complete the first undergraduate degree (not to exceed, and most likely, less than, eight semesters). For example, if a parent of a Rice junior becomes eligible for this benefit after completing three years of service, the child is only eligible for the remaining junior and senior years of school, and not the full eight semesters going forward.

This benefit does not cover studying at Rice (or any other) summer school program.

No more than two semesters of approved study abroad (fall or spring semesters only) will qualify for tuition remission for the full cost of the program’s tuition, not to exceed the amount of tuition remission for the same semester at Rice. This benefit does not cover summer study abroad.

Reciprocal Agreements with Other Universities

To be admitted as an undergraduate degree candidate at universities with reciprocal tuition arrangements with Rice, the prospective students must meet all admission requirements and established deadlines of the reciprocal institution. Rice may have reciprocal tuition agreements with other universities at any given time, and these arrangements may change without notice. However, should a qualifying dependent matriculate under a reciprocal tuition agreement that is terminated during the student’s undergraduate college years, the tuition scholarship will continue for up to a total of eight semesters, subject to the terms and limitations of this policy. This change may trigger a taxable event for which the employee is responsible.

Participating schools reserve the right to limit the total number of students to whom they grant a tuition scholarship; therefore, Rice urges students to apply as early as possible and to respond to an offer of admission as soon as possible. Students should notify the Office of Enrollment upon applying to a university with a reciprocal agreement. Upon accepting admission to a reciprocal tuition university, please contact the Office of Enrollment to complete the appropriate forms.

Dependents meeting all requirements of the reciprocal university can use up to eight semesters of tuition scholarship in their progress toward their first undergraduate degree at reciprocal exchange universities. For those selected for the program, for tax valuation purposes, each semester of this benefit has a value equal to that semester’s tuition at the participating institution.

To maintain eligibility, the student must meet all requirements of the participating institution, which may differ from those of Rice University. All rules concerning admission, leaves of absence, residency and graduation requirements, and their effects on tuition remission under this program are solely those of the reciprocal universities. Students must resolve all academic and enrollment issues directly with the participating school.

For more information, please contact the Office of Enrollment at Rice.

Use of the Benefit with Other Accredited, Degree-Granting Institutions

Rice will assist with paying tuition for undergraduate courses at any accredited, degree-granting institution for the employee’s eligible dependent child(ren) as follows:

  • The employee must be eligible for the benefit as defined in this Policy.
  • The dependent must be enrolled in an accredited institution in the United States.
  • The child must meet the Definitions of Eligibility.
  • The child must be enrolled in undergraduate courses leading to the student's first associate degree, undergraduate degree, or a Comprehensive Transition and Postsecondary (CTP) Program degree.
  • The employee must have three (3) or more years of continuous benefits-eligible service as defined in this Policy.
  • The benefit will be the lesser of the following but will not exceed 10% of Rice’s published tuition rate:
    • 10% of the total Rice tuition per semester or
    • 100% of the total tuition at the other accredited, degree-granting institution.
  • Each eligible dependent child may receive tuition assistance for up to 8 academic semesters or 12 academic quarters of post-secondary courses.
  • Fees, books, room and board, the remaining amount of tuition, etc., are the employee's responsibility and are not covered by this Policy.

Taxability

Tuition remission is intended to provide benefits that are, to the extent possible, excluded from taxation under the Internal Revenue Code and other applicable laws. Tuition remission is not taxable for dependents defined by IRS rules, but it is taxable if the dependent does not meet applicable federal tax law definitions (for example, the IRS does not recognize as a dependent any Eligible Dependent Child whose age is greater than 23 and whose taxable income, as reported on a W-2, is more than the individual withholding limit for the applicable tax year).

The full value of this benefit will be reported as income to the employee when Rice determines that the benefits cannot be excluded from taxation. This occurs, for example, with an Eligible Dependent Child of a domestic partner, who is not, under IRS definitions, a legal dependent of the Rice employee. Employees should consult their tax advisors for information regarding potential tax liability relating to tuition remission.

Application and Restrictions

This policy applies solely to undergraduate degrees at Rice University, to undergraduate degrees at universities with current reciprocal tuition agreements with Rice, and to other undergraduate, accredited, degree-granting institutions in the United States.

This policy does not extend tuition remission benefits retroactively; there are no benefits for past study other than those created under the prior Policy 430-94.

The definition of eligible dependents in this policy is effective August 1, 2009, and may be utilized by eligible dependents of Rice Employee/Retirees as early as the fall semester of 2009. The three-year employment vesting requirement does not apply to a Rice Employee/Retiree appointed or hired on or before July 1, 2010; for such employees, the one-year employment vesting requirement in the prior Policy 430-94 applies instead.

Dependents of a Rice Employee/Retiree appointed or hired after July 1, 2010, are subject to all eligibility criteria and limitations under this policy.
All students matriculating in the fall of 2009 or later are limited to eight semesters of study. The ten-semester limitation in the prior Policy 430-94 will continue to apply for any students who matriculated prior to the fall of 2009.

Some of the provisions of this benefit may not apply to schools with reciprocal tuition agreements, and are instead governed by inter-institutional agreements in place at the time of matriculation. Please consult with the Office of Enrollment for more information.

For questions on tuition remission for eligible students admitted to Rice, contact the benefits office. For questions on reciprocal tuition agreements with other universities, contact the Office of Enrollment.

Any questions of interpretation regarding this policy shall be referred to the Human Resources Office for a determination.

II. Responsible Official and Key Offices to Contact Regarding the Policy and its Implementation

Responsible Official: Executive Vice President for Operations, Finance, & Support

Key Offices: Human Resources

See also:

Policy 403, Benefits Eligibility

Policy 414, Retiree Definition and Benefits

Frequently Asked Questions

1. What will the expanded policy cover?
  1. Just as the current policy is written, the expanded policy will cover only tuition costs and will not apply toward other fees, books, housing, or dining expenses for eligible dependents.
2. Can my dependent use the expanded Tuition Remission Benefits at another college or university and then transfer to Rice, Trinity, or Austin College and receive 100% tuition?
  1. Parents will choose one track at the start of their child’s higher education journey:
    1. the 100% at Rice, Trinity, and Austin College -or-
    2. the 10% of Rice’s tuition applied to any accredited U.S. college or university.
  2. If someone selects the 10% of Rice’s tuition option and then transfers to one of the reciprocal institutions (including Rice), they will still receive the percentage of Rice’s tuition benefit.
3. Do I get to keep 100% of Tuition Remission benefits at Rice, Trinity, and Austin College as a Rice Retiree?
  1. Yes, current eligible employees and eligible retirees (as defined in Policy 414) will retain the 100% tuition at Rice, Trinity, and Austin College based on the most recent hire date.
  2. However, no university policy is guaranteed to continue as currently written, so all university policies are subject to change.
4. Are my dependents eligible to receive the expanded tuition benefits?
  1. If you are eligible for the benefits under the updated policy (which will retain the same eligibility requirements as the current policy), your children will be eligible for the expanded tuition benefit.
5. What am I eligible for if my child is already enrolled in another institution?
  1. Your child will be eligible for the remaining semesters based on their current enrollment. Rice will not pay for tuition beyond the regular eight semesters of education allotted to new students eligible for the Dependent Tuition Benefit policy.
  2. For example, if your eligible child is a junior in the Fall of 2025, your child will be eligible for the 10% of Rice’s tuition applied to their current U.S. college or university for their four remaining semesters (and not eight semesters after becoming initially eligible).
6. What happens if I am not eligible for the policy until my child is a senior?
  1. If your child becomes eligible after enrolling in an eligible institution (including Rice), your child is eligible for the remaining semesters under a four-year degree program.
  2. In this example, if you meet the eligibility requirements and your child starts their senior year, you are eligible for the benefit for the remaining two semesters of study (i.e., the child’s senior year). Rice will not pay for tuition beyond a child’s regular eight semesters, even if the child needs more time to graduate.
7. How does the benefit pay tuition at other institutions?
  1. Rice will have an application process for the 10% of Rice’s tuition, similar to the current tuition process. However, your tuition bill from the eligible institution must be submitted before each semester. Late submissions will be paid as soon as possible, but Rice will not pay any late fees due to an untimely submission of paperwork to Rice.
  2. Rice will pay the institution directly - we will not issue funds directly to the student or employee.
8. What happens if the tuition is less than the Rice benefit?
  1. Rice will pay up to the tuition due at that institution for eligible dependents. If the amount is less than the benefit, Rice will pay up to the full cost of your child’s tuition.
9. What if my child has a scholarship?
  1. Rice will pay any outstanding tuition bill up to the benefit maximum of 10% of Rice’s tuition ($3,125 per semester in 2024-2025). If your child’s tuition due is less than this amount, Rice will only pay up to the amount due to the institution.
  2. Rice will not pay more than what is due, even if a scholarship was awarded to your child and their tuition bill is less than Rice’s benefit.
10. Will I have to submit my children’s grades for the semester?
  1. Currently, only the Rice, Trinity, & Austin College tuition agreements monitor performance for academic eligibility. While we will not be monitoring academic performance, there is a semester limit in place, so please ensure your child is performing academically before continuing to apply the benefits toward their tuition.
11. Does the dependent tuition benefit pay for a graduate degree?
  1. No, the benefit only covers the eligible child’s first undergraduate degree.
12. What happens if I leave Rice?
  1. Payment will not be made if the semester has not started. The benefit will continue through the end of the semester when employment or benefits eligibility ceases and will end immediately thereafter.
13. Will I get a check from Rice if my child’s tuition is less than the Dependent Tuition Benefit?
  1. No. Rice will pay the tuition due up to 10% of Rice’s tuition directly to the school. No funds will be paid directly to any employee.
14. What documentation will I have to provide along with the Dependent Tuition Benefit application?
  1. Birth and/or marriage certificates and tax forms may be required depending on the Rice faculty or staff member’s relationship with the child.
  2. Tuition bill from the college or university
15. Will Rice reimburse me if I paid the tuition bill already?
  1. No, Rice will only pay the college or university directly
16. How do I get a refund if I already paid the tuition bill to the college or university?
  1. You will need to contact the school directly about issuing you a refund or a credit for a future semester. Rice will not issue payment directly to the faculty or staff member.

Signatures

Reginald Des Roches, President

Policy History

Clerical Changes

February 2, 2018
January 18, 2023
January 31, 2023
August 15, 2023
December 21, 2023
March 4, 2024

Revised

September 9, 2009 (effective August 1, 2009)
July 1, 2024 (effective July 1, 2024)

Issued

October 1, 1994

Supersedes

Policy 212-90