PURPOSE

In order to encourage employees and their eligible family members to pursue a formal education, Northern Michigan University (NMU) offers a tuition scholarship benefit.  The tuition scholarship benefit waives the tuition for eligible students, who complete the necessary procedure, on a space available basis.    

This benefit does not include the costs of any fees, tools, supplies or books incurred as a result of enrolling or participating in an educational course.  

ELIGIBILITY

To be eligible for the tuition scholarship program, the student must fall into one of the below eligibility categories, supply all required documentation, and have a tuition waiver application submitted and approved before the final day of the semester in which the scholarship is being used.

For the purposes of this policy, dependent children are defined as an employee’s biological child, stepchild, and legally adopted child. 

Eligibility for Unlimited Credit Hours Scholarship 
  • Full-time Faculty employed on the first day of the semester and their
    • Spouse
    • Unmarried IRS tax dependent child(ren) 
  • Staff with a full-time equivalent (FTE) of .50 or greater and employed on the first day of the semester and their
    • Spouse
    • Unmarried IRS tax dependent child(ren) 
  • Person with NMU Retiree status and the
    • Spouse of a living person with NMU Retiree status
    • Unmarried IRS tax dependent child(ren) of a living person with NMU Retiree status

Surviving spouse and dependent child(ren) of a deceased employee may have additional eligibility as defined in the applicable Collective Bargaining Agreement. 

Eligibility for Limited Credit Hours Scholarship
  • Adjunct Faculty 
    • The Tuition Scholarship benefit is limited to a maximum number of credit hours equivalent to the teaching load for the same semester.
    • The benefit is available only to the adjunct faculty member and may not be transferred to a spouse or dependent child.
      • Example: Adjunct is teaching eight (8) credits in the Fall semester.  The adjunct member is only eligible to use the tuition scholarship for no more than eight (8) credits in the Fall semester.
  • Contingent Faculty 
    • The Tuition Scholarship benefit is limited to a maximum number of credit hours equivalent to the teaching load for the same semester.
    • During the semester in which the contingent faculty member is teaching, the benefit may be used by:
      • The contingent faculty member; 
      • The contingent faculty member’s spouse; or
      • The contingent faculty member’s unmarried IRS tax-dependent child
    • The maximum number of credit hours available to the family collectively can not exceed the contingent faculty member’s teaching load for that semester.
      • Example: A contingent faculty member teaching nine (9) credits in the Winter semester may allocate the nine (9) credits of benefit among themselves, their spouse, and/or their unmarried IRS tax-dependent child.  If the spouse uses four (4) credits, the child and/or faculty member may use the remaining five (5) credits during the same semester.
  • Continuing Contingent Faculty 
    • Continuing contingent faculty have the same maximum benefit as contingent faculty (the maximum number of credit hours for the tuition scholarship is equivalent to the faculty member’s teaching load for the applicable semester).
    • During the semester in which the continuing contingent faculty member is teaching, the benefit may be used by:
      • The continuing contingent faculty member; 
      • The continuing contingent faculty member’s spouse; or
      • The continuing contingent faculty member’s unmarried IRS tax-dependent child
    • Unlike the benefit for contingent faculty, unused credit hours may be deferred for use in a subsequent semester within the same calendar year.
    • Deferred credit hours may be used by the continuing contingent faculty member, their spouse, or their unmarried IRS tax-dependent child.
      • Example: A continuing contingent faculty member teaches 9 credits in the Winter semester.  Four credits are used by the faculty member’s eligible child during the Winter semester. The remaining five credits may be used during a subsequent semester in the same calendar year by the faculty member, their spouse, or their unmarried IRS tax-dependent child.
Dual Employment Benefits Eligibility

An eligible employee as defined above can only access this program as an employee.  They are not permitted to access the benefit as a spouse or dependent child during the time that they are an eligible employee.

LOSS OF ELIGIBILITY  

Employees that are on an unpaid leave of absence on the first day of the semester in which benefits are being requested are ineligible for this benefit.  For purposes of this policy, an employee receiving long-term disability benefits retains their eligibility for the tuition benefit.

Loss of eligibility on the first day following the end of the semester in which a below event occurs:

  • Dependent child marries
  • Employee, spouse, and dependent child(ren) when
    • Employee resigns or terminates from employment with NMU (unless the employee is granted Retiree Status)
    • Employee dies (unless the employee is granted Retiree Status or meets the additional eligibility defined in applicable Collective Bargaining Agreement)

ADMISSION

All student applicants must be admitted or readmitted to Northern Michigan University in accordance with the normal requirements for admission and readmission. 

ENROLLMENT

Employees may enroll in courses up to a maximum of four (4) credit hours during the employee’s regular working hours.  Arrangements for such time off must be made in advance with the immediate supervisor. All time will be made up within the same bi-weekly pay period through arrangements with the immediate supervisor and/or department head.  This exception does not apply if the employee is required by Northern Michigan University to take a course only offered during the employee’s scheduled work time.

Physical Education and/or Recreational courses may not be repeated.

FINANCIAL AID

The tuition scholarship benefit is considered financial aid and students who participate in this program are not eligible to receive additional University-funded scholarships or grants.  University-funded means any funds deposited at the University where the University makes the decision concerning the recipient. Some exceptions apply such as student scholarly activity/research and travel.  

Employees should apply for other Federal Student Aid by completing the Free Application for Federal Student Aid (FAFSA) form.

Contact the Financial Aid office for a complete list of exceptions as well as questions regarding the FAFSA.

TAXABILITY

NMU complies with all federal and state tax laws regarding the benefit taxability.  Tuition benefits are considered taxable income under the following conditions:  

Graduate-Level Tuition Benefits
  • Spouses and Dependents: Always taxable
  • Employees: Taxable for any amount exceeding the annual IRS Section 127 limit ($5,250 through 2026; adjusted annually for inflation beginning in 2027) within a calendar year
Undergraduate-Level Tuition Benefits
  • Dependents Age 24 and Older: Taxable starting in the calendar year the dependent turns 24
Payroll Deductions for Taxable Benefits

Required Federal, State, Social Security, and Medicare taxes will be withheld directly from the NMU employee’s paycheck based on the taxable value of the benefit.

Deduction Spreading

If the total taxable benefit exceeds $500, deductions will generally be distributed across multiple paychecks to reduce the impact on net pay.  In instances where an employee is separating from NMU employment, the full required tax withholding may be deducted from a single final paycheck.

Deduction start dates depend on when enrollment and benefit data are finalized.  Typically, the following deduction schedule applies:

  • Winter Semester: January
  • Summer Semester: June
  • Fall Semester: September

REFUNDS

Any refund(s) that are the result of a tuition scholarship student’s withdrawal from or drop of a course will revert to the University.

REQUIRED DOCUMENTATION:

The required documentation must be on file with Human Resources before this program can be applied to eligible students.   

  • Spouse 
    • Marriage License
  • Biological Child
    • Child's birth certificate
    • If the child is over age 24 or is accessing the benefit as a child of a Contingent Faculty member: Employee’s most recent Federal Form 1040*
  • Adopted Child 
    • Proof of adoption
    • If the child is over age 24 or is accessing the benefit as a child of a Contingent Faculty member: Employee’s most recent Federal Form 1040*

Children of divorced or unmarried parents:
Biological and legally adopted children of divorced or unmarried parents may be claimed by the parent who is not an NMU employee and remain eligible for the tuition scholarship. The Federal Form 1040 claiming the child must be submitted to Human Resources.

  • Step Child 
    • Child's birth certificate
    • Marriage License
    • Employee's most recent Federal 1040 tax return

Important: Stepchildren must be claimed by the employee in order to be eligible for this program. A Federal Form 1040 is required for all stepchildren, regardless of age.

Required Federal 1040

The employee’s most recently filed Federal 1040 must be on file with Human Resources, if required (as indicated above), before the benefit will be applied for dependent children.   

The following Federal 1040 will be accepted for the associated semester:

  • Summer Semester: Previous tax years Federal 1040
  • Fall Semester: Previous tax year's Federal 1040
  • Winter Semester: Federal 1040 from two (2) previous tax years ago

Example: Fall 2026 scholarship requires a copy of your 2025 Federal 1040.  Winter 2027 scholarship requires a copy of your 2025 Federal 1040. 

PROCEDURE TO REQUEST TUITION SCHOLARSHIP

The below process must be completed each semester that the student is enrolled.  Failure to request the benefit in sufficient time for processing may result in late fees being assessed to the students account. 

  1. Log into MyNMU 
  2. Select the Wildcat Benefits Hub tile
  3. Select the "Tuition Benefit Request" link (second login required)
  4. Click "Apply for Tuition Benefits" 
  5. Select the appropriate student (Employee, Spouse, or Dependent)
  6. Select the appropriate semester you are requesting benefits for
  7. Acknowledge that you have read and understand the terms and conditions, and click continue
  8. Review/complete the requested information and submit

Employees requesting benefits for themself must be approved by their immediate supervisor prior to the tuition benefits request being submitted to Financial Aid.  

Please note that a signed contract/employment agreement for the semester tuition benefits are being requested must be on file in HR prior to being able to access the Tuition Benefit Request.  

Continuing Contingent and Contingent faculty requesting tuition benefits fora a spouse or dependent child(ren) must contact hr@nmu.edu to complete the necessary process via paper form. 

CONTACTS

HR@nmu.edu for the below topics:

  • To provide required documentation 
  • To have your spouse or dependent child(ren) NMUIN tied to your employee benefits 
  • Error messages when requesting tuition benefits 
  • General questions

FAO@nmu.edu for the below topics:

  • You, or the student, received a bill for tuition and you requested tuition benefits 
  • Your bill reflects only a partial tuition benefit
  • You, or the student, have other scholarships or financial aid and have questions about what you can use
  • FAFSA questions

Payroll@nmu.edu for the below topics:

  • Taxable tuition 

TERMINATION OF THE TUITION SCHOLARSHIP PROGRAM BENEFIT

The tuition scholarship benefit will discontinue at the conclusion of the semester during which the employee or student becomes ineligible, employment is terminated, or the benefit is terminated, modified, amended or changed to end such coverage.