• Introduction
• Highlights
• References

Employers are interested in helping their employees continue their education. According to the National University Continuing Education Association (NUCEA), 90 percent of companies currently offer continuing education benefits and 97 percent plan to offer them by the year 2000 (NUCEA 1996). Another survey found that 75 percent of the surveyed employers provided tuition benefits (University of Pennsylvania 1997). NUCEA reports that the benefit ranks above child care, flextime, and family leave benefits in popularity with employees.

This report examines the utilization of employer aid. This includes the description of the types of employees and educational and training programs that employers support. Two National Center for Education Statistics (NCES) data sets provided the data for this report: the "Adult Education" component of the 1995 National Household Education Survey (NHES:1995) and the 1995-96 National Postsecondary Student Aid Survey (NPSAS:1996). NHES provides information describing all educational activities of adults, including enrollment in credential, adult basic skills, work-related, and other structured training or educational programs. NPSAS, which represents students of all ages and backgrounds at all types of accredited postsecondary institutions, provides detailed information about how employers help students pay for their education if they attended a postsecondary institution.

The central purpose of this report is to describe the use of employer-provided financial aid by students seeking a degree or credential. According to NHES, 13 percent of adults participated in credential programs in 1995. That was less than either the 21 percent of adults who participated in work-related programs or the 20 percent who participated in other structured programs. Forty-one percent of the adults in credential programs were seeking bachelor's degrees (figure A). Another 19 percent were seeking associate's degrees. In some cases, a credential program may include professional certification.

Figure A.-Percentage distribution of adults enrolled in credential programs according to highest level program enrolled in: 1995

One-half of adults who were executives, administrators, and managers who enrolled in credential programs received financial assistance from their employers. This compared with 10 percent of the employees who were in marketing and sales, and 4 percent of those who were handlers, cleaners, helpers, or laborers.

Seventy-two percent of adults employed as engineers, surveyors, or architects who enrolled in credential programs received financial assistance from their employers. That was more than those who were social scientists or lawyers; teachers, except for postsecondary; writers, artists, entertainers, or athletes; health technologists; in marketing and sales; administrative support; service; construction; production; transportation and material moving; or handlers, cleaners, helpers, and laborers.

Adults who worked part time were less likely to receive employer financial aid if they enrolled in credential programs than those who worked full time. Seven percent of adults who worked part time received financial assistance from their employers if they took credential programs compared with 37 percent of those who worked full time.

NPSAS data indicate that 6 percent of all undergraduates received financial aid from their employer. Four percent of the undergraduates who perceived themselves as students who worked received employer financial aid compared with 25 percent of those who defined themselves as undergraduate employees. The following findings are limited to undergraduate employees (employed undergraduates who considered themselves primarily employees rather than students).

The control of the institution was related to the probability of receiving employer financial aid (table A). Forty-six percent of the undergraduate employees who attended private, not-for-profit institutions received employer financial aid compared with 23 percent of those who attended public institutions.

The level of program in which students were enrolled also related to the probability of receiving employer financial aid (table A). Thirty-four percent of the undergraduate employees who were enrolled in bachelor's degree programs received employer financial aid compared with 23 percent of those enrolled in associate's degree programs, and 18 percent of those enrolled in certificate programs. Undergraduate employees who enrolled in business programs were more likely to receive employer financial aid than were those in the humanities, social and behavioral sciences, education, and life sciences.

The average employer financial aid amount awarded to undergraduate employees was $932, and ranged from $432 for those attending institutions with tuition and fees below $1,000 to $3,437 for those attending institutions with tuition and fees between $5,000 and $7,499 (table A). Employer financial aid recipients in public institutions received $510 compared with $2,321 received by those in private, not-for-profit institutions.

Table A.-Percentage of undergraduate employees* who received employer financial aid, and average employer financial aid award received, by selected characteristics: 1995-96

Thirteen percent of graduate and first-professional students (this category includes doctors, lawyers, and theologians) received employer financial aid (table B). Master's degree students were more likely to receive employer financial aid than were doctoral or first-professional students. Sixteen percent of master's degree students received employer financial aid compared with 5 percent of the doctoral and first-professional students.

The average employer financial aid amount awarded to graduate students was $2,451 (table B). Male recipients received a higher average amount of employer financial aid than females. Males received an average employer financial aid award of $2,987 compared with $1,980 received by females.

Table B.-Percentage of graduate students who received employer financial aid, and average employer financial aid award received, by gender and degree program: 1995-96