Opinions on Using Employer TA

[futuremrsmlb]

This may seem odd to some but I am weighing my options as I gear up to start graduate school.

I have two options for payment which include fed student loans and tuition assistance.
My employer will pay up to $2000 per class that I take as a grad student.
The only drawback (if you consider it that) is I will be required to sign a promise to remain employed with the company for two years beginning the day I graduate.
The online MBA program at University of Mount Olive is only 1 year so I would be done Summer 2017 (based on starting this summer).
That means I have to stay with the company until 2019 at least.

I am on the fence about it due to the lack of advancement opportunities within the company. I enjoy my job and the pay is good. The only thing I see my degrees being good for at this company is for pay increases. I am not complaining about that, I just want to be able to pursue other interests if I want...I guess 2 years is not so bad, right?
Please share your thought/opinions.

Thanks everyone!

[rebel100]

This may seem odd to some but I am weighing my options as I gear up to start graduate school.

I have two options for payment which include fed student loans and tuition assistance.
My employer will pay up to $2000 per class that I take as a grad student.
The only drawback (if you consider it that) is I will be required to sign a promise to remain employed with the company for two years beginning the day I graduate.
The online MBA program at University of Mount Olive is only 1 year so I would be done Summer 2017 (based on starting this summer).
That means I have to stay with the company until 2019 at least.

I am on the fence about it due to the lack of advancement opportunities within the company. I enjoy my job and the pay is good. The only thing I see my degrees being good for at this company is for pay increases. I am not complaining about that, I just want to be able to pursue other interests if I want...I guess 2 years is not so bad, right?
Please share your thought/opinions.

Thanks everyone!

I'm not a fan of loans, see it as a form of slavery that will crowd into every decision you make until you have it paid off. Is the tuition assistance pro rated? Some companies will reduce the amount as you work, 1 year would decrease the payback by half...just worth knowing.

If you take the TA and leave early could you take out a loan to pay it off at that point? if you stay, great your covered. If you leave, you have an option to pay back your employer.

At my company they can hold any pay due and accrued leave to count against any paid out tuition reimbursement. Collecting any additional funds however is problematic...or HR department routinely has to make up payment plans for folks who have left early after receiving a TA payout...a little underhanded, but life happens.

Why Mount Olive? I've never heard of it, but at the $2000/class rate you have some great options. Harvard Extension wouldn't be too much more than that and every employer on the planet is familiar with that brand.

I would take the tuition assistance, worst case scenario is you opt to leave early and can deal with it then. Student loans are likely to follow you for a lot more than two years...

[davewill]

Only you know how bad two years is. Be sure you understand what happens if you accept, but can't/don't finish the two years. You never know when your health might change, or when an offer too good to refuse will come your way. You might even talk a future employer into paying off your obligation.

[futuremrsmlb]

I'm not a fan of loans, see it as a form of slavery that will crowd into every decision you make until you have it paid off. Is the tuition assistance pro rated? Some companies will reduce the amount as you work, 1 year would decrease the payback by half...just worth knowing.

If you take the TA and leave early could you take out a loan to pay it off at that point? if you stay, great your covered. If you leave, you have an option to pay back your employer.

At my company they can hold any pay due and accrued leave to count against any paid out tuition reimbursement. Collecting any additional funds however is problematic...or HR department routinely has to make up payment plans for folks who have left early after receiving a TA payout...a little underhanded, but life happens.

Why Mount Olive? I've never heard of it, but at the $2000/class rate you have some great options. Harvard Extension wouldn't be too much more than that and every employer on the planet is familiar with that brand.

I would take the tuition assistance, worst case scenario is you opt to leave early and can deal with it then. Student loans are likely to follow you for a lot more than two years...

University of Mount Olive is pretty well known and recognized in NC. The MBA program is online and will only take 1 year to complete. Basically, its the shortest online program I could find with AACSB accreditation. All the other programs I looked at were 16-24 months and I don't want to spend more time than I have to finishing.

[futuremrsmlb]

Only you know how bad two years is. Be sure you understand what happens if you accept, but can't/don't finish the two years. You never know when your health might change, or when an offer too good to refuse will come your way. You might even talk a future employer into paying off your obligation.

Absolutely agree and I have considered this. If I complete 1 year after graduation and then leave I would only owe 50%

[rebel100]

Absolutely agree and I have considered this. If I complete 1 year after graduation and then leave I would only owe 50%

I would take the TA.

[TrailRunr]

Do you have to repay if you get canned? Someone else mentioned health, which is a huge risk as we get older.

If your cash flow is going to be tight (or worse) with a TA repayment event, I would take both the student loans and the TA. As the TA repayment terms expire, pay the student loans down. I don't consider this the same as indentured slavery since you will keep the matching funds in an off-limit savings account in case of a repayment event.

[rebel100]

Do you have to repay if you get canned? Someone else mentioned health, which is a huge risk as we get older.

If your cash flow is going to be tight (or worse) with a TA repayment event, I would take both the student loans and the TA. As the TA repayment terms expire, pay the student loans down. I don't consider this the same as indentured slavery since you will keep the matching funds in an off-limit savings account in case of a repayment event.

Not entirely without risk, but this thought crossed my mind as well.

[dfrecore]

This is a very common requirement for TA. Not sure if this is still the case, but many employers used to pay it off for you as a hiring bonus. My thought would be take it, with the intentions of staying, but if something better comes up, ask the new company to pay it off for you. In the meantime, start saving up so you can pay it off yourself if need be.

Also, you said that there is not a lot of advancement opportunities at the company, but I would look at it another way; they are giving you an advancement opportunity for your LIFE. Something you can take with you to the next job, and all future jobs. Assuming that they're going to be forking out $25k (?) for a graduate degree for you, that's a pretty great benefit and advancement.

And, you never know when a company will make changes to their structure, or get bought out, or buy another company, or spit, or add divisions...you get the picture. Just because it doesn't look like there are advancement opportunities NOW doesn't mean there won't be some LATER.

Take the TA and start piling up cash!

[futuremrsmlb]

Do you have to repay if you get canned? Someone else mentioned health, which is a huge risk as we get older.

If your cash flow is going to be tight (or worse) with a TA repayment event, I would take both the student loans and the TA. As the TA repayment terms expire, pay the student loans down. I don't consider this the same as indentured slavery since you will keep the matching funds in an off-limit savings account in case of a repayment event.

If I am let go through no fault of my own (layoff, reduction in force) I would owe them nothing. I hadn't considered using the student loans as a means to repay TA if needed. Something else to consider! Thanks