HR37 Grant-in-aid for Dependents (version effective January 1, 2018)

Note: Technical-service employees covered by the collective bargaining agreement between the University and Teamsters Local Union No. 8 are eligible for the grant-in-aid provisions that were in effect on January 1, 2018, as specified in Article XXXVI of the collective bargaining agreement. The following policy was effective on January 1, 2018. Effective June 28, 2019, this policy was updated and this version is no longer in effect for employees other than those represented by Teamsters Local Union No. 8 referenced above.

POLICY'S INITIAL DATE: January 28, 1938

THIS VERSION EFFECTIVE: January 1, 2018

Contents:

PURPOSE:

To provide dependents of full-time employees, retirees, and those with Emeritus Status, the opportunity to take University courses at reduced fees.

AMOUNT OF UNIVERSITY GRANT-IN-AID:

Regular tuition will be assessed for each dependent. A dependent is eligible for University grant-in-aid tuition discount provided application is made by a full-time employee or retiree, or in the case the full-time employee is deceased, the person authorized to act for the dependent. The amount of the grant-in-aid would result in out-of-pocket costs for employees to be 25% of the effective in-state tuition rate (excluding other student fees).

NOTE: Tuition reduction for a spouse taking graduate level classes may be subject to taxes. Please contact the payroll office for tax information.

AMOUNT OF FEE REDUCTION:

The educational privilege is a reduction of 75% of the tuition payable per credit.

ELIGIBLE EMPLOYEES:

Dependents of the following employees are eligible for a University grant-in-aid:

1. Full-time employees in Standing, Fixed-Term I, or Fixed-Term Multi-Year positions during active periods of employment and certain inactive periods of employment. See HR16, HR19, HR34, HR105, and HRG11 for eligibility during inactive periods of employment.
2. A member of the armed services who is on the staff of the Department of:
   • Military Science
   • Air Force Aerospace Studies
   • Naval Science
3. A retired employee provided the retiree meets the requirements for the continuation of benefits after retirement (see HR54).

ACTIVE PERIODS OF EMPLOYMENT:

The grant-in-aid for a dependent child or spouse is available for any semester or summer session in which classes begin on or after the employee’s date of full-time employment.

If the employee becomes ineligible for the tuition discount due to changes in appointment status or employment status after the beginning of a semester, the dependent shall continue to receive the discount through that current semester only.  

Dependents are not eligible for grant-in-aid for any semester or summer session in which classes begin after the employee's final day of employment  These limits do not apply to an eligible retiree as indicated in "c" in the section above. 

At such time that a dependent becomes ineligible for benefits, it is the responsibility of the employee to notify HR Shared Services immediately.

ELIGIBLE DEPENDENTS:

The following dependents of eligible full-time employees and retirees are entitled to University grant-in-aid tuition discount:

• A spouse (unless appointed as a graduate assistant, graduate fellow, or non-stipend scholar);
• Children up to age 26 (regardless of whether he/she qualifies as the employee's tax dependent, is a full-time student, or is married). The discount applies to undergraduate credits only; the student cannot be enrolled in a Master's level or higher level program.    

An eligible child is defined as: a biological child, a step-child, or a legally adopted child, or a child whom the employee is the legal guardian.

Dependents who are eligible for the educational privileges provided by policy HR36 Educational Privileges for Faculty, Staff, and Retirees are not eligible for the grant-in-aid provisions of this policy.

APPLYING FOR GRANT-IN-AID:

To apply for a dependent grant-in-aid, the full-time employee must complete the on-line Dependent Grant-In-Aid request form. The online form must be completed prior to EACH semester or summer session in which the Grant-in-Aid is to apply. Grant-in-aid will NOT be applied retroactively to previous semesters. 

WHERE COURSES ARE OFFERED:

Eligibility for a University grant-in-aid applies at all University locations, including World Campus, and the Pennsylvania College of Technology, and, is subject to the following limitations.

LIMITATIONS:

1. Any dependent of an executive, administrator, academic administrator, academic, staff employee or retiree who has already been approved for the tuition discount and is beyond the age of 26 as of July 1, 2015, will remain on the tuition discount until they attain their first Penn State bachelor's degree, as long as they do not have two consecutive semesters of non-registration.   After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued. 
2. Any dependent of a technical-service employee who has already been approved for the tuition discount and is beyond the age of 26 as of January 1, 2018, will remain on the tuition discount until they attain their first Penn State bachelor’s degree, as long as they do not have two consecutive semesters of non-registration. After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued.
3. A dependent who reaches the maximum age of 26 will continue receiving the tuition discount until they attain a Penn State bachelor's degree, as long as the original approval for the tuition discount was prior to the dependent reaching age 26 and the dependent has not had two consecutive semesters of non-registration after reaching age 26.  After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued.
4. If a dependent who meets the criteria outlined in “c” has a serious illness or accident, that prevents them from being enrolled for more than two consecutive semesters, upon re-enrollment to the University, the dependent will be eligible to continue to receive the tuition discount.  The dependent will continue eligibility for the tuition discount until they attain a Penn State bachelor's degree, as long as they do not have an additional two consecutive semesters of non-registration.  After two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued.
5. If the dependent is an active or honorably-discharged member of the armed services, the dependent will be eligible for the tuition discount beyond the age of 26 with proof of military service.  The tuition discount will apply until they attain a Penn State bachelor's degree; after two consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued, unless recall to active service prevents consecutive semesters of registration
6. The grant-in-aid applies to all resident instruction and continuing education credit courses except for professional curriculum such as those offered at the College of Medicine at The Milton S. Hershey Medical Center, the Smeal College of Business Administration Executive MBA Program, and Penn State Law. It does not apply at summer camps or workshops operated by the University unless University credit is given and regular tuition is charged.  The grant-in-aid for an eligible son or daughter applies only for non-Master's level program classes, excluding those outlined above. 
7. When more than one parent is employed by the University, or holds Emeritus Status, the grant-in-aid for a dependent is available to only one parent.

DEPENDENT OF A DECEASED FACULTY OR STAFF MEMBER:

Eligible dependent children or a spouse of a full-time employee who becomes deceased as an active employee, are eligible for the grant-in-aid tuition discount according to the years of service outlined below. 

Eligible Dependent Children and Spouses: 

• Employee with 0-5 years of full-time, continuous service = 2 semesters
• Employee with 5-10 years of full-time, continuous service = 4 semesters
• Employee with 10 years or more of full-time, continuous service = 8 semesters
• Dependent must be enrolled within the number of years equal to the employee's years of service
• All other dependent eligibility rules apply

To initiate the Grant-In-Aid application in this circumstance, please contact HR Shared Services.

CROSS REFERENCE:

HR16 - Leave of Absence without Salary (Other than for Extended Active Military Service)

HR18 - Graduate Study Leave of Absence

HR19 - Leave of Absence for Active Military Service or Training

HR34 - Employment Conditions for Staff Employees

HR36 - Educational Privileges for Faculty, Staff, and Retirees

HR54 - Continuation of Group Insurance after Age 60, Age 65, and after Retirement or Death

HR105 - Reduced FTE Schedules

HRG11 - Family Medical Leave

REVISIONS:

January 1, 2018 – Revised to reflect updates to the benefit for technical-service employees, minor revisions to reflect updates to HR06 Types of Appointments and removal of same-sex domestic partner language.

September 1, 2015 – Revised to reflect removal of two year wait period and to include additional limitations on dependent eligibility.

May 3, 2011 - Revised the Applying for Grant-In-Aid section.

November 12, 2009 - Amount of University Grant-in-Aid section - Language updated to reflect current practices.

August 1, 2007 - Dependent Defined section - clarification added that anyone eligible for HR36 provisions is not eligible for HR37 provisions.

July 1, 2002 - Limitations section - revised to include the Smeal College of Business Administration Executive MBA Program