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UNM Policy Office

MSC05 3357
1 University of New Mexico
Albuquerque, NM 87131

Physical Location:
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Phone: (505) 277-2069

Administrative Policies and Procedures Manual - Policy 3700: Education Benefits

Date Originally Issued: 01-01-2009
Revised: 08-01-2011, 08-01-2012, 07-29-2013, 03-26-2015, 09-01-2015, 06-13-2016, 12-12-2016, 09-30-2017, 08-14-2018, 07-31-2019, 12-09-2020, 12-11-2023

Authorized by RPM 6.3 ("Privileges and Benefits")

Process Owner: Vice President of Human Resources

1. General

The University of New Mexico recognizes the importance of an educated and competent work force. To meet the demands of the changing workforce and the desire of employees to grow academically and professionally, UNM offers various voluntary education benefits. UNM supports and encourages employees to develop themselves through academic, professional, health, fitness, and personal enrichment courses. UNM also provides additional education benefits to spouses or domestic partners, and dependent children of eligible employees, and retirees.

2. Eligibility

2.1. Eligibility for Education Benefits

Employees eligible for Education Benefits include:

  • regular staff employees who are full-time or part-time, and are 0.50 FTE or greater
  • term or contract staff employees who are full-time or part-time, are 0.50 FTE or greater, and have a minimum three (3) month term appointment or contract
  • temporary staff employees who are 0.75 FTE or greater, and have a minimum three (3) month appointment
  • faculty members who have a minimum three (3) month contract, and are 0.50 FTE or greater
  • adjunct faculty who have a minimum three (3) month contract, and are 0.75 FTE or greater
  • post-doctoral fellows who have a minimum three (3) month contract, and are 0.50 FTE or greater

2.2. Retiree Eligibility 

  • UNM retirees are eligible for unlimited employee tuition remission benefits for academic credit and non-credit professional development courses. Retirees may also use tuition remission for health, fitness, and personal enrichment courses, subject to the limitations outlined in Section 3.1.1, and subject to restrictions outlined in Section 3.7. herein. Spouses and domestic partners of retirees are eligible for up to four (4) credit hours of academic credit each semester (see Section 3.8).
  • Retirees are ineligible for the Dependent Education Scholarship. However, if an employee retires and has a dependent currently participating in the Dependent Education Scholarship program, that dependent may continue in the program until there is either a break in semesters, the dependent obtains an undergraduate degree, or completes eight (8) semesters in the program. 

2.3. Ineligible Participants

Those individuals listed below are not eligible to participate in the education programs outlined in this policy.

  • Medical residents
  • Student employees
  • Graduate students on assistantships
  • Part-time employees who are less than 0.50 FTE

2.4. Separation of Employment

If an employee separates from the University for reasons other than retirement, the employee, spouse or domestic partner, and any dependent children are no longer eligible for education benefits effective with the academic semester following the date of separation.

2.5. Death of Employee

If an employee should die while a dependent is receiving the Dependent Education Scholarship, the dependent may continue in the program as long as the dependent meets the requirements of this policy and until there is either a break in semesters, the dependent obtains an undergraduate degree, or completes eight (8) semesters in the program. 

3. Employee and UNM Retiree Tuition Remission Benefit

The University will pay tuition for one (1) or more of the courses listed in Section 3.1, not to exceed the equivalent of in-state undergraduate or in-state graduate tuition for applicable coursework for eight (8) credit hours each fall and spring academic semester, up to six (6) credit hours of which may be taken at New Mexico State University, and not to exceed the equivalent of in-state undergraduate or in-state graduate tuition for four (4) credit hours each summer session, up to three (3) credit hours of which may be taken at New Mexico State University, subject to the restrictions listed herein. The University assesses all employees and retirees eligible for Employee Tuition Benefits in-state tuition for this benefit. In addition to paying tuition under the Employee and Retiree Tuition Remission Benefit, the University pays for mandatory student fees and differential tuition.

Subject to the in-state undergraduate credit hours limitation above, the University will pay the equivalent of in-state undergraduate tuition and mandatory student fees for non-academic courses offered through the UNM Division of Continuing Education or University departments for professional development and improvement of work skills.

To determine the amount of tuition available for non-credit courses, such as courses through the UNM Division of Continuing Education or other University departments, first deduct all academic credit hours taken, then multiply the remaining credit hours by the in-state undergraduate tuition and mandatory student fee rate per credit hour. If an employee exceeds the credit hour limitation, the employee must pay the difference.

UNM Retirees are eligible for unlimited Tuition Remission benefits, subject to the limitations outlined in Section 3.1.1 and subject to restrictions outlined in Section 3.7.

The taxability of Tuition Remission benefits is discussed in Section 3.9.

3.1. Eligible Courses

  • courses in any subject taken and billed through UNM for undergraduate, graduate, or professional academic credit, or for official audit status;
  • courses taken as professional development from the UNM Division of Continuing Education or University departments; and
  • courses taken by UNM employees and retirees offered by New Mexico State University up to a maximum of six (6) credit hours each fall or spring semester and three (3) during the summer semester (cannot be used by a spouse, domestic partner, or dependent children).

3.1.1. Health, Fitness, and Personal Enrichment Programs

The University will pay the equivalent of in-state undergraduate tuition and mandatory student fees for up to three (3) credit hours per calendar year for health, fitness, and personal enrichment programs offered through the UNM Division of Continuing Education, Recreational Services, or other University departments. The calendar year total amount will be based on the tuition rate in effect at the end of the calendar year. The health, fitness, and personal enrichment allowance is in addition to the employee Tuition Remission benefit available for academic and professional development courses.  The value of health, fitness, and personal enrichment programs will be included in the employee's taxable income and be subject to withholding. 

The allowance for health, fitness, and personal enrichment may not be used to pay for food, lodging, or travel expenses.

Spouses, domestic partners, and dependent children are not eligible for health, fitness, and personal enrichment programs. 

Retirees are eligible for up to three (3) credit hours per calendar year for health, fitness, and personal enrichment programs. Retirees will receive a 1099, as required by the Internal Revenue Service (IRS), for the applicable tax year. 

3.2. Time Off

In general, employees should attempt to take courses outside of their work schedule or discuss an alternate work schedule with their supervisor to make up time lost if the course is taken during an employee’s work schedule. However, supervisors are encouraged to support their employees in their pursuit of professional and/or academic growth and may allow an employee to take up to one (1) course of up to four (4) credit hours, or the equivalent thereof, per semester using time off with pay as long as all of the following provisions are met:

  • the course is taken for academic credit toward a degree program or for professional development;
  • is not available outside of the employee's work schedule.

Health, fitness, and personal enrichment courses are not eligible for time off with pay. 

In addition to the above provisions, the business needs of the department are top priority and time off with pay may not be practical. If an employee disagrees with a supervisor's denial of time off, the employee may appeal the decision to the cognizant dean, director, or department head, with the final appeal level being the applicable vice president. As with any work-related problem, the employee may also contact Ombuds Services to seek resolution; refer to UAP 3220 ("Ombuds Services") for more information.

3.3. Supervisory Approval

Supervisory approval is necessary if any of the following situations apply: 

  • An academic credit course taken during the employee’s regular work schedule (approval is to authorize the time off with pay or to approve an alternate work schedule if applicable per Section 3.2. above);
  • A non-credit professional development course taken during the employee’s work schedule (approval is to authorize time off with pay or approve an alternate work schedule if applicable per Section 3.2. above); or
  • A non-credit health, fitness, or personal enrichment course taken during the employee’s work schedule (approval is to authorize the absence from work and to approve an alternate work schedule per Section 3.2. above).

The Tuition Remission benefit is a voluntary benefit offered to employees; therefore, managers and supervisors cannot require employees to use their tuition remission benefit for work-related or management-ordered courses.

3.4. Deadlines  

To avoid late fees, the Tuition Remission form must be submitted for payment prior to the published payment deadline date for the applicable term or course. Late fees are not covered by Tuition Remission and must be paid in full by the employee. Tuition Remission forms will not be accepted after the registration deadline date for the applicable term or course without prior approval from Human Resources.

3.5. Employee Responsibility for Monitoring of Tuition Remission Program

Employees are responsible for monitoring their own use of Tuition Remission to ensure the tuition limits are not exceeded and that they are in compliance with this policy. If it is determined that tuition paid for an employee under this program exceeds the limits of this policy, the University will bill the employee for any excess tuition costs that have been paid. If the bill is not paid, UNM may collect any excess through payroll deductions.

3.6 Non-Academic Courses Offered by UNM Departments 

UNM departments may offer courses or seminars for UNM employees in which Tuition Remission may be available as a method of payment. The Division of Human Resources must approve any course or seminar offered by UNM Departments in advance if Tuition Remission is to be used as a method of payment. Departments who offer courses using the Tuition Remission program are responsible for keeping records of the participants for the course.

3.7.  Restrictions

Tuition Remission can only be used to pay for tuition, differential tuition, and mandatory student fees, and cannot be used to pay for other costs associated with courses including but not limited to course fees, books, supplies, or exams. Tuition Remission cannot be used to pay for travel, food, or lodging expenses. The Tuition Remission benefit will not cover costs at other institutions other than those specifically stated in Section 3 herein.

3.8.  Spouse or Domestic Partner Tuition Remission Benefit 

As an alternative to the Dependent Education Scholarship, the spouse or domestic partner of an eligible employee may receive resident tuition for up to four (4) credit hours per semester for UNM courses taken for academic credit (including graduate courses). Courses taken at any other institution; non-credit professional development courses; and health, fitness, and personal enrichment courses do not qualify for this additional Spouse or Domestic Partner Tuition Remission benefit. The benefit only covers resident tuition rates and the spouse/domestic partner will be responsible for tuition charges in excess of the resident rate. In the event that two benefits eligible employees or retirees are spouses or domestic partners of each other, they may not use their spousal or domestic partner benefits and employee or retiree benefits in the same semester. 

3.9. Taxability of Tuition Remission

If the amount of tuition and mandatory student fees paid during the calendar year exceeds the published IRS maximum amount, the amount in excess of the IRS maximum will be added to the employee’s wages as taxable income. 

The value of the Tuition Remission benefit taken by spouses for graduate credit and courses taken by domestic partners is considered taxable income to the employee and will be included as compensation on the employee's W-2 form filed with the IRS and subject to income tax withholding once per semester.

4. Dependent Education Scholarship

The University will pay resident undergraduate tuition for eligible spouses or domestic partners and dependent children for undergraduate academic courses taken and billed through UNM for up to eight (8) consecutive semesters, not including the summer session (except for the nursing program). The eight (8)-semester limitation applies to both full-time and part-time students. A semester's eligibility is used regardless of the number of credit hours the student takes. If there is a break in the eight (8)-semester enrollment, reapplication is required and the applicant must meet all eligibility criteria. A dependent's eligibility for the tuition benefit ceases once a total of eight (8) semesters have been covered or the dependent fails to meet eligibility requirements. The benefit only covers resident tuition rates and the dependent will be responsible for tuition charges in excess of the resident rate.

4.1. Dependent Eligibility

  • Spouse or domestic partner; domestic partners must meet the requirements of UAP 3790 ("Domestic Partners").
  • Unmarried dependent children who have not reached the age of twenty-five (25) as of the last date to register for the applicable semester (includes natural, adopted, step-children, or legal guardianship).
  • Dependents who become married or turn twenty-five (25) may continue until they have reached eight (8) semesters or there is a break in enrollment but will not be eligible to re-apply for the benefit.
  • Student must meet UNM’s admission requirements and be admitted in an undergraduate degree-seeking status.
  • Student must maintain a cumulative UNM GPA of 2.5 or greater (the student may appeal to the Director of Student Financial Aid in cases of extenuating circumstances).

4.2. Charges Not Covered

Costs that are not covered under the Dependent Education Scholarship are listed below: 

  • The mandatory student fee portion of tuition and fees.
  • Differential tuition.
  • Tuition or other costs at an institution other than UNM.
  • Approved special course fees assessed for participation in instructional academic credit.
  • Costs associated with courses offered for non-academic credit.
  • Non-resident tuition in excess of New Mexico resident tuition.
  • Tuition and fees for courses taken in non-degree status.
  • Tuition and fees for graduate, law, PharmD, and medical education programs.

4.3 Coordination With Other UNM Scholarships or Financial Aid

The amount of an individual's dependent education tuition benefit, plus the amount of any need-based financial aid grants, will not exceed the cost of attendance, as defined by the University’s Student Financial Aid Office. The amount of the Dependent Education Scholarship tuition benefit will not exceed the tuition portion of resident tuition and fees. The amount of an individual's Dependent Education Scholarship benefit will be reduced by the amount of tuition paid by any other tuition waiver or tuition scholarship.  

Examples of other tuition waivers include, but are not limited to, the following:  

  • UNM Scholars, NM Scholars, Presidential Scholars, and Regents' Scholars
  • Lottery Scholarships and Bridge to Success Scholarships
  • Graduate/Teaching Assistantships
  • Miscellaneous departmental tuition waivers

 4.4. Taxability of Dependent Education Benefits

Under current IRS regulations, the value of Dependent Education tuition benefits received by domestic partners and certain dependents is considered taxable income to the employee. The value of the tuition benefit will be included as compensation on the employee's W-2 form filed with the IRS and subject to withholding once per semester in any of the following circumstances: 

  • tuition paid for domestic partners;
  • tuition paid for dependents who are married;
  • tuition paid for dependents who are age twenty-four (24) or older any time in the tax year that the benefit is received; or
  • tuition paid for dependents who are not claimed as a dependent on an income tax return.

5.  Payment of Tuition at Third-Party Institutions

On rare occasions, and only when compliant with Article IX, Section 14 of the New Mexico Constitution, the University may fund the payment of tuition and related expenses for employees to third-party educational institutions in exchange for consideration if the following criteria are satisfied:

  • The substantive course(s) underlying the degree in question must be one as to which the University will derive a demonstrable benefit or value related to the employee's job function within the University,
  • The substantive course curriculum and degree is not offered at the University of New Mexico;
  • If the payment or reimbursement of expenses under this Section, including, without limitation, payment or reimbursement of tuition, is not deductible from the employee's income under the Internal Revenue Code (IRC), including IRC § 162, the employee shall be made aware that the payment of tuition by the University on the employee's behalf may result in taxable income to the employee, and that the employee, and not the University, is responsible for any of the federal and/or state tax consequences of the University's funding of the tuition and related expenses. The University shall pay additional compensation to the employee to assist with the resulting tax burden only to the extent, and in the amount, set forth in that employee's signed agreement; and
  • The employee must have signed a written agreement under which the employee agrees, in exchange for the University's funding of the tuition and related expenses, to continue employment with the University for a period of time equal, following the completion of the degree program, to one (1) year for each year of University funding of tuition and related expenses.  In the event the employee separates from employment at the University, any unamortized amount will be repaid in a manner consistent with a pre-determined repayment plan as set forth in the written agreement, and within twenty-four (24) months, and must include interest payments on remaining unpaid balances. In the event the employee fails to complete a course that has been paid for by the University, the employee will similarly be required to repay the University in a manner consistent with a pre-determined repayment plan as set forth in the written agreement. Requests for an exception to these repayment requirements may be submitted and approved by the University President.     

This benefit is available to eligible employees only as defined in Section 2.1 of this Policy, and must be approved in advance and in writing by the University President through the Vice President for Human Resources, Provost/Executive Vice President for Academic Affairs, or Executive Vice President/CEO for Health Sciences, as applicable. Payment of related expenses must follow UAP 4000 ("Allowable and Unallowable Expenditures"), UAP 4030 ("Travel"), and the employee's written agreement, and such expenses must be reasonable. Tuition payments must be from the budget of the applicable department requesting approval, rather than from University tuition remission funds.

6.  Compliance

Questions concerning allowable use of education benefits should be referred to the Division of Human Resources.

7.  References

Application forms can be found on the HR website forms page. 

UAP 3790 ("Domestic Partners")

UAP 4000 ("Allowable and Unallowable Expenditures")

UAP 4030 ("Travel")