Dive Brief:
- Starbucks is facing criticism for some of the fine-print details of its highly touted program to pay for its employees’ tuition in Arizona State University online programs.
- According to the New York Times, a college junior or senior who qualified for full tuition reimbursement under the Starbucks program would have to earn 21 credits, at a cost of between $10,080 and $11,403, before receiving any reimbursement.
- Starbucks says that it would provide some upfront financial aid, which, combined with government aid, would pay for more than half of the out-of-pocket tuition cost for the student. Also, Arizona State will help arrange student loans until the reimbursement comes.
Dive Insight:
Lesson No. 1 for the Starbucks students: Check the fine print. Starbucks didn’t disclose the hurdles to reimbursement in its news release announcing the program or on its public web page. The risk to the employee is significant, considering that one class at Arizona State is typically three credits and requires about 18 hours of work per week. A student taking one class at a time would take 17 months to earn 21 credits, all while having to work at least 20 hours per week at Starbucks to remain qualified for the reimbursement program. Starbucks is also eliminating a program that offered up to $1,000 per year in tuition reimbursement at any college or university; the new program applies only to Arizona State’s online courses. As New America Foundation analyst Rachel Fishman explains, ASU Online is expensive, charging about $15,000 per year for tuition and fees, compared to $3,264 for the average community college and $8,893 for the average in-state tuition rate.