Policies and Procedures

Guide to the Tuition Waiver Policy

The following materials present an updated explanation of the campus tuition waiver policy, including information about base-rate waivers and reimbursements of tuition waved.

A Guide to the Campus Tuition Waiver Policy on Graduate Assistantships
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College/School Tuition Waiver Policy

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A Guide to the Campus Tuition Waiver Policy on Graduate Assistantships

2007-2008

The tuition waiver policy has three principal provisions.

The vast majority of assistantship appointments ranging from 25 through 67 percent for three-quarters of the term provide waivers of full tuition, regardless of residency classification.
In certain curricula, tuition waivers for students holding assistantships are "base-rate" waivers, i.e., the waivers cover no more than the in-state lowest full-time tuition (in 2007-2008 about $4,187 per semester), regardless of the student's residency status and regardless of the source of assistantship. The students are responsible for paying the remaining tuition.

The base-rate waiver policy applies only to students who began at or after the dates indicated below; students who began graduate or professional study before those dates are "grandfathered," i.e., they are governed by the policy in effect before the approved change as long as they continue to be registered and in good standing.

The approved "base-rate" curricula and beginning dates are:
- For students who began graduate or professional study Fall 1996 or after:
  - Law JD and LLM
  - DVM in Veterinary Medicine
  - MS in Accountancy
  - MD in Medicine (except Medical Scholars)
  - MS in Technology Management
  - MBA
  - Executive MBA
  - MS in Policy Economics
  - MS in Finance
- For students who began graduate study in 1997-98 and after:
  - Master of Social Work
- For students who began Summer 2, 1998, and after:
  - MS, MS/LEEP and CAS in Library and Information Science
- For students who began in Fall 2001 or after:
  - Master of Accountancy (MAS)
  - Master of Architecture (M Arch)
  - MS in Tax

It is the student's curriculum that determines the type of waiver, not the unit granting the assistantship.

Some enrolling colleges or departments may demand reimbursement for tuition income lost through assistantship waivers. Under the current budget policy each college receives the tuition income from its graduate students; that income forms part of the college's operating budget. In these circumstances an assistantship, through its associated tuition waiver, represents a reduction in potential income for the student's enrolling college. The policy allows colleges to demand, from the unit appointing the assistant, reimbursement for the value of the tuition income lost through assistantships outside the college.

All of the units named above have received approval from the Provost and the Graduate College to seek reimbursement for any tuition income lost through assistantship tuition waivers. However, the Graduate School of Library and Information Science does not intend to seek reimbursement from other units. . The reimbursement sought will be the value of what is waived, in 2007-2008 about $4,187 per semester. (If the student is classified in state and registered for less than 3 units of credit, the waiver value may be lower.)

Six other units have declared that, although their students on assistantships will continue to receive waivers of full tuition (resident or non-resident) and service fee, they will seek reimbursement for tuition lost through waivers. In this case the requested reimbursement amounts can be much higher.

The Institute of Labor and Industrial Relations will seek reimbursement for assistantship tuition waivers given to ILIR master's degree students with entrance dates of Fall 1996 and later. The Department of Speech and Hearing Science has adopted the same policy for master's degree students entering Fall 2000 and later.

The College of Liberal Arts and Sciences will seek reimbursement only from certain campus-level administrative units such as the Chancellor's and the various vice-chancellors' offices, the Library, and Planning, Construction, and Maintenance (PCM). This policy affects students with entrance dates beginning Fall 1999.

The College of Engineering will seek reimbursement only from certain unitssuch as certain administrative (non-research) units (effective for students beginning graduate study Fall 1996 or later). The College of Engineering will also seek reimbursement from other academic units that seek reimbursement from the College of Engineering (effective for students beginning graduate study Fall 2004 or later).

The College of ACES and the College of Education will seek reimbursement only from certain units, such as administrative units in which the duties to be performed are not directly in support of a student's academic goals and academic units that seek reimbursement from ACES or Education. This policy affects students beginning graduate study Fall 2004 or later.

A unit considering appointing a student to an assistantship is strongly advised to check that student's curriculum for the possibility that a request for reimbursement of the cost of the assistant's tuition waiver might be forthcoming. There is no mechanism for automatic charges; the student's enrolling unit has the responsibility for obtaining reimbursement, but note that the policy is supported by the campus administration.

Before colleges and other units can elect to change their tuition waiver policy, they must seek and receive approval from the Provost and the Dean of the Graduate College. The units named above received the necessary permission.

Other provisions of the policy:

Fee waivers. All tuition waiver-generating appointments also waive the service fee, the health service fee, the AFMFA fee and the Library/Technology Fee. They also provide vision insurance, dental insurance, and partial payment of the health insurance fee.
Summer automatic waivers. Students without summer waiver-generating appointments who held waiver-generating appointments for the previous spring semester are eligible to receive summer automatic tuition waivers if they chose to enroll in the summer semester. The summer automatic waiver provides the same tuition waiver (base rate or full) as that granted during the previous spring. However, only the service fee is waived. Authorized enrolling colleges may request reimbursement for summer automatic waivers from an appointing unit if that unit was billed for the waiver in the spring semester.
Assistants with multiple appointments. In the event of split appointments, units should agree in advance as to the responsibility for tuition waivers for students in curricula that seek reimbursements. Where there are no advance agreements, the default arrangement is that the unit providing the percentage of the appointment that moves the assistantship into the eligible range of 25% through 67% (usually the unit last to add the appointment to the payroll) is responsible for the value of the resulting waiver.
Reimbursement from research grants and contracts. To receive reimbursement from the appointing units, the enrolling college must request a transfer of any tuition indirect cost earned by the appointing unit related to the student's appointment. Currently, a provisional rate of 56% of a graduate assistant's stipend is charged to research grants and contracts as tuition ICR on all projects that have the full, negotiated indirect cost rate. The amount of the reimbursement is limited to the amount collected, if any, on the grant or contract. No tuition remission charge is currently made for projects that have an approved indirect cost rate lower than the full, negotiated rate.
Fellowships. A fellowship, defined as an award providing living allowance of at least $6,000 for the academic year and demanding no services in return, always includes a full waiver (or payment by the funding agency) of all tuition assessed, regardless of whether the student's program is base-rate or full for assistantship waiver purposes. This applies to fellowships originating on and off-campus. Students in the College of Medicine, except those in the Medical Scholars Program, must obtain written approval from the College of Medicine before accepting a fellowship, and subsequent tuition waiver, controlled by another campus or university unit. Effective fall 2007, students in the College of Veterinary Medicine, except those in the Veterinary Medical Scholars Program, must obtain written approval from the College of Veterinary Medicine before accepting a fellowship, and subsequent tuition waiver, controlled by another campus or university unit. Should a student in the College of Veterinary Medicine, not in the Veterinary Medical Scholars Program, accept a fellowship without the approval of the College, the College may request that the Graduate College remove the fellowship waiver. In cases of dispute the Graduate College decides whether an award is a fellowship. Tuition waiver income lost due to fellowships is not reimbursable.
Traineeships. Traineeships are research fellowships that are awarded to provide educational training in particular disciplinary areas. A traineeship covers full tuition, may cover all non-refundable fees, and provides a stipend for living expenses. In cases of dispute the Graduate College decides whether an award is a traineeship. Tuition waiver income lost due to traineeships is not reimbursable. Students in the College of Medicine, except those in the Medical Scholars Program, must obtain written approval from the College of Medicine before accepting a traineeship, and subsequent tuition waiver, controlled by another campus or university unit. Effective fall 2007, students in the College of Veterinary Medicine, except those in the Veterinary Medical Scholars Program, must obtain written approval from the College of Veterinary Medicine before accepting a traineeship, and subsequent tuition waiver, controlled by another campus or university unit. Should a student in the College of Veterinary Medicine not in the Veterinary Medical Scholars Program accept a traineeship without the approval of the College, the College may request that the Graduate College remove the traineeship waiver. In cases of dispute the Graduate College decides whether an award is a traineeship. Tuition waiver income lost due to traineeships is not reimbursable.
Electing to pay the difference between the base-rate and full waiver for a student. Appointing units may use their own funds to pay the remaining tuition for students enrolled in base-rate waiver curricula whom they appoint to assistantships. However, in every case an appropriate source of funds must be used and appropriate object codes specified so the transactions can be properly tracked in the accounts. Grant or contract funds may not be used for that purpose.
The base-rate policy does not apply to the waivers awarded to faculty, academic professional, civil service staff and allied agency personnel by the Board of Trustees through the University's General Rules. It also does not apply to undergraduate assistantships or any other waivers not associated with graduate student teaching, research, graduate, or pre-professional graduate assistantships.
Taxability of tuition waivers associated with assistantships and fellowships. Current tax law exempts Teaching Assistants (TAs), Research Assistants (RAs), and most Fellows from having to pay taxes on tuition, service fee, and health service fee waivers associated with these appointments.

Effective January 1, 2003, the University adopted an Educational Assistance Plan, complying with Internal Revenue Code 127, which excludes from taxable income $5,250 per calendar year in tuition and fee waivers associated with graduate assistant (GA) and/or pre-professional graduate assistant (PGA) appointments. Under other Sections of the Internal Revenue Code, GA and PGA tuition and fee waivers exceeding $5,250 per calendar year may be excluded from taxable income if the GA or PGA appointment meets certain criteria.

Students receiving waivers associated with GA or PGA appointments will receive information from the Payroll Office to assist in determining what portion, if any, of the waiver should be considered taxable income and whether or not it will be necessary to withhold additional taxes from these students' paychecks.

Questions can be directed to the Graduate College, (217) 333-0035 or email grad@uiuc.edu.

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