Organizations invest millions in tuition reimbursement programs every year. Yet many employees who want to continue their education never take advantage of the opportunity. But why?
The answer isn't a lack of interest.
InStride research conducted with employees at Fortune 500 companies found that the vast majority of workers were interested in pursuing additional education while continuing to work. However, awareness of available tuition benefits was significantly lower, and participation rates were even lower.
80% of employees were interested in pursuing education while working.
For many employees, the challenge is access, not motivation.
Why employees don’t use traditional tuition reimbursement benefits
Working adults face a unique set of challenges. Between full-time jobs, family responsibilities, caregiving obligations, and everyday life demands, finding time to pursue education can be difficult.
Financial barriers add another layer of complexity.
Traditional tuition reimbursement programs require employees to pay tuition upfront and wait for approvals and reimbursement later. For many workers, that expense can make participation unrealistic, even when a benefit exists.
Only 25% of interested employees surveyed said they started a tuition assistance program (TAP) application.
The process itself can also feel overwhelming. Researching programs, completing applications, gathering transcripts, and navigating financial aid requirements can create enough friction to discourage employees from even getting started.
How tuition assistance supports employee development
Employees consistently view education as an investment in their future.
Many are motivated by opportunities to increase earnings, qualify for new roles, build in-demand skills, and create greater career mobility. More than just earning a degree, it’s about opening doors to new possibilities.
When organizations make learning more accessible, employees gain the opportunity to develop skills they can apply immediately in their current roles while preparing for future career growth.
How education programs benefit employers
Education programs work both ways: employees build skills, and businesses build stronger teams.
Organizations that invest in education can strengthen talent pipelines, support retention, improve employee engagement, and help build skills that align with evolving business needs.
Only 40% of those surveyed said they knew their employer offered tuition assistance.
Employees notice when their employer invests in their future. InStride's survey found that professional development opportunities can have a meaningful impact on employees' decisions to stay and grow within an organization.
Moving to a modern approach to tuition reimbursement
The most effective education programs remove barriers rather than create them.
That means helping employees discover relevant learning opportunities, simplifying the enrollment process, reducing financial obstacles, and connecting education directly to career growth.
When education becomes easier to access, more employees take advantage of opportunities that benefit both their careers and their organizations.
2–3x higher participation rates than traditional tuition reimbursement*
*Compared to typical tuition reimbursement participation of 1–2%
Because education isn't just another employee benefit; it's an investment in people, potential, and long-term success.
Let InStride help you transform your tuition reimbursement program into a modern benefit.
Frequently asked questions about tuition reimbursement
What is a tuition reimbursement program?
A tuition reimbursement program is an employee benefit that helps workers pay for approved education expenses. In most programs, employees pay tuition upfront and receive reimbursement after completing coursework.
Why don’t employees use tuition reimbursement benefits?
InStride research found that while 80% of surveyed employees were interested in pursuing education while working, only 40% knew their employer offered tuition assistance, and only 25% of interested employees started an application.
Employees often do not use tuition reimbursement benefits because of financial barriers, limited awareness that the benefit exists, and complex application or enrollment processes. Working adults may also be balancing full-time jobs, family responsibilities, caregiving obligations, and other demands that can make it difficult to pursue education. As a result, even employees who want to continue their education may struggle to take advantage of available benefits.
Are traditional tuition reimbursement programs still worth it?
While tuition reimbursement remains a valuable employee benefit, many organizations struggle with low participation and limited visibility into outcomes. Research suggests employees are interested in education opportunities, but financial, administrative, and awareness barriers often prevent them from taking advantage of available benefits.
What are the benefits of tuition reimbursement for employers?
Tuition reimbursement programs can support employee retention, workforce development, internal mobility, and talent attraction.
How can employers improve tuition reimbursement participation?
A modern approach shifts education from a passive or legacy benefit to an active lever for real workforce transformation where programs are intentionally aligned to business goals. They also remove financial barriers through models like direct billing, making access realistic for employees. Modern programs embed coaching and support throughout the journey, ensuring successful enrollment and progress to completion. Equally important, programs are built today to generate measurable outcomes, giving leaders clear visibility into ROI.
What is the difference between tuition reimbursement and tuition assistance?
Before evaluating your program, it’s important to clarify the terms because they are often used interchangeably but operate differently in practice.
Tuition reimbursement
The most traditional model. Employees pay for education upfront, then submit for reimbursement after completing a course or program. This traditionally has been contingent on grades or completion requirements. While common, this model places a financial and administrative burden on employees, which can limit participation.
Tuition assistance
A broader category that includes tuition reimbursement but can also encompass more flexible options, such as upfront funding, direct billing, or partial subsidies. In many organizations, tuition assistance programs still rely heavily on reimbursement structures.

