Out-of-state students who were recruited to attend Minnesota state colleges or universities based on talents or special skills are eligible for waivers that cover the difference between in-state and out-of-state tuition; the student must only pay in-state tuition. The Minnesota Department of Veterans Affairs also offers waivers for war orphans who attend state institutions. However, most tuition waivers are used by employees as part of their benefits package. Employees of Minnesota state colleges and universities are eligible for waivers as part of their collective bargaining agreements. Employee spouses and dependents are also eligible. Faculty of the university, including temporary and adjunct faculty, are likewise eligible.
Check with your human resources office to get the answers to any questions, explain your specific benefits and determine eligibility. The uniform tuition waiver application developed by the Office of the Chancellor must be filled out by every individual requesting a waiver. The employee or dependent must submit the original approval form to the registrar at the time of registration. You can also apply for a tuition waiver online at the Minnesota State Colleges and Universities Office of the Chancellor. The website is listed in the resources section.
As of 2011, tuition waivers are granted only for courses that are taken for credit. In addition, space must be available in the course and cannot be taken away from paying students. Unused waivers cannot be transferred to future semesters. Students must submit their waivers within 10 days of the start of the course. Minimum continuous employment requirements must be met before employees and dependents can use waivers. Waivers are not available to employees during permanent layoffs. Tuition waivers cannot be stacked if employees are working at more than one state institution. If an employee is already taking a course and separates from the institution, the course can be completed and the waiver applied.
Institutional employee tuition wages can be subject to taxation. Internal Revenue Code sections 127 and 117 govern the taxation of tuition waivers that are provided as an employment benefit. Tuition waivers used by an employee and spouses and dependents younger than 24 for undergraduate courses are non-taxable. If tuition waivers are used for graduate courses and exceed $5,250, the award is taxable for employees, spouses and dependents. Tuition waivers are not considered income, and are, therefore, not subject to Minnesota state income tax, according to the Minnesota Department of Revenue.