Human Resources Policies

HR37 Tuition Discount for Dependents

Policy Status
Active
Subject Matter Expert
Jill Musser, 814-865-1473, benefits@psu.edu
Policy Steward
Vice President for Human Resources

POLICY'S INITIAL DATE: January 28, 1938
THIS VERSION EFFECTIVE: September 8, 2026

 

Contents:

PURPOSE:

To provide dependents of full-time employees, retirees, and those with Emeritus status the opportunity to take University courses at reduced tuition fees. Eligible dependents receive a Penn State University tuition discount of 75% of the tuition payable per credit. 

ELIGIBLE DEPENDENTS:

The following dependents of eligible full-time employees and retirees are able to receive the University tuition discount: 

  • A spouse (unless appointed as a graduate assistant, graduate fellow, or non-stipend scholar);
  • Children up to age 26 (regardless of whether they qualify as the employee's tax dependent, are a full-time student, or are married) until they attain their first Penn State bachelor's or Integrated Undergraduate Graduate degree. The discount applies to undergraduate credits and Integrated Undergraduate Graduate (IUG) programs 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 stepchild, or a legally adopted child, or a child for whom the employee is the legal guardian. 

Dependents who are eligible for the educational privileges provided by University Policy HR36 are not eligible for the tuition discount provisions of this policy. 

Note: The tuition discount for spouses enrolled in a graduate level class may be considered taxable income. 

ELIGIBLE EMPLOYEES:

Dependents of the following employees are eligible for the tuition discount:

  1. Full-time employees, including those on an approved leave of absence.
  2. An approved member of the armed services who is on the staff of the Department of:
    • Military Science
    • Air Force Aerospace Studies
    • Naval Science
  3. A retiree as outlined in University Policy HR54, and those with Emeritus status under University Policy AC25.

Note: Employees covered under a collective bargaining agreement should consult that agreement for further guidance. 

ACTIVE PERIODS OF EMPLOYMENT:

The tuition discount 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 the semester, the dependent shall continue to receive the discount through that current semester only. 

Tuition discount will not be applied retroactively to prior semesters. 

Dependents are not eligible for tuition discount 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 under University Policy HR54 and those with Emeritus status under University Policy AC25. At such time that a dependent becomes ineligible for benefits for any reason, it is the responsibility of the employee to notify HR Services at 814-865-1473 immediately.

LIMITATIONS:

  1. A dependent who reaches the maximum age of 26 will continue receiving the tuition discount until they attain their first 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. 
  2. If a dependent who reaches the maximum age of 26 has a documented serious illness or injury that prevents them from being enrolled for more than two consecutive semesters, the dependent will be eligible to continue to receive the tuition discount upon re-enrollment to the University. The dependent will continue eligibility for the tuition discount until they attain their first Penn State bachelor's degree. After two additional consecutive semesters (excluding summer) of non-registered status, the tuition discount will be permanently discontinued. 
  3. If a dependent who reaches the maximum age of 26 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 their first 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. 
  4. When more than one parent is employed by the University, or holds Emeritus status, a dependent is only eligible for one tuition discount.

 

WHERE COURSES ARE OFFERED:

Eligibility for a dependent tuition discount applies at all University locations, including World Campus and the Pennsylvania College of Technology. 

The tuition discount applies to all resident instructions and continuing education credit courses for which regular tuition is charged, except for professional curriculum such as those offered at the College of Medicine at the Milton S. Hershey Medical Center and Penn State Dickinson Law. It does not apply at summer camps or workshops operated by the University unless university credit is given and regular tuition is charged. 

DEPENDENT OF A DECEASED FULL-TIME EMPLOYMENT:

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

  • Employee with 0-5 years of full-tme, continuous service = 2 semesters
  • Employee with 5-10 years of full-time, continuous service = 4 semesters
  • Employee with 10 years or more 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 eligible rules apply. 

To initiate the dependent tuition discount application in this circumstance, please contact HR Services at 814-865-1473. 

CROSS REFERENCE:

AC25 – Emeritus Status

HR36 - Tuition Discount for Full-Time Employees and those with Emeritus Status 
HR54 - Retirement Qualifications and Retirement/Posthumous Benefits 

Application Procedure

Date Approved
Date Published
Effective Date