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Many schools provide deferred payment programs to accommodate those students that have corporate reimbursement. You should ask the schools that you are considering attending whether or not they offer this type of program.

Generally speaking, a deferred payment program covers the portion of your tuition that is corporate-sponsored. For example, if your company covers 50% of your educational expenses, then a university’s deferred payment program will allow you to defer paying 50% of your tuition until a certain period of time after the end of the term. Most companies require transcripts in order to reimburse for your tuition, and most schools will grant you a two week “grace period” from the release of your grades until payment is due on the corporate sponsored portion of your tuition.

In order to qualify for this benefit, you need proof of your corporate reimbursement policy, which usually comes in the form of a written letter from your human resources department. Check with your HR department to see if the company has a standard letter regarding corporate reimbursement.

Working Adults Find Shelter in the Tax Law

With the “Pomp and Circumstance” around tax credits for education occuring almost 10 years ago, most working professionals are not aware that they can deduct educational expenses from their income taxes.

Before you continue, these credits are available for individuals with less than $50,000 per year in Adjusted gross income, or $100,000 per year if filing jointly.

In a ceremony at the White House on August 5, 1997, President Clinton signed into law The Taxpayer Relief Act (The Act) providing taxpayers two nonrefundable tax credits for payments made for qualified tuition and related expenses (tuition and fees, but not books) for post-secondary education–the HOPE Scholarship Credit and the Lifetime Learning Credit.

The HOPE Scholarship Credit allows taxpayers to claim a maximum credit of $1,500 (100 percent of the first $1,000 of tuition and fees and 50 percent of the next $1,000 of tuition and fees) for expenses paid on behalf of the taxpayer, the taxpayer‘s spouse, or a dependent for the first two years of post-secondary education at an eligible institution. The student must be enrolled on at least a half-time basis for at least one academic period during the year for the expenses to be qualified. The HOPE Scholarship Credit applies to expenses paid after December 31, 1997, for education furnished in academic periods beginning after that date.

The Lifetime Learning Credit allows taxpayers to claim a maximum credit equal to 20 percent of up to $5,000 of expenses ($10,000 beginning in 2003) incurred during the taxable year for qualified tuition and fees for eligible students for post-secondary education, including any course of instruction to acquire or improve job skills. The Lifetime Learning Credit applies to expenses paid after June 30, 1998, for education furnished in academic periods beginning after that date.

Both credits limit qualified expenses to the expenses of the taxpayer, the taxpayer‘s spouse, or a dependent of the taxpayer. Additionally, both credits are phased out for taxpayers with modified Adjusted Gross Income between $40,000 and $50,000 (between $80,000 and $100,000 for joint filers). For each qualifying student, taxpayers must choose to claim either the HOPE Scholarship Credit, the Lifetime Learning Credit, or the exclusion for certain distributions from an education IRA for the taxable year. They cannot claim more than one of these benefits for a student for any year.

The Act provides an above-the-line maximum deduction for up to $2,500 of interest paid by taxpayers on qualified education loans. The $2,500 limit is phased in over 4 years (i.e., the maximum deduction is $1,000 in 2004, $1,500 in 2005, $2,000 in 2006, and $2,500 in 2007). Taxpayers may take a deduction on qualified education loans for the benefit of the taxpayer, the taxpayer‘s spouse, or any dependent of the taxpayer as of the time the indebtedness was incurred. Deductions are allowed only for the first 60 months that interest payments are required. The deduction is phased out for taxpayers with modified AGI between $40,000 and $55,000 ($60,000 and $75,000 for joint filers). Married taxpayers must file jointly to take the deduction, and the credit may not be claimed on the return of anyone who is claimed as a dependent on another person‘s return.

When comparing between programs, it’s important to understand the accreditation(s) that the program has received, and the standards used by that accrediting body. Most accreditation is broken into two categories; university (regional) accreditation, and professional school accreditation.

For purposes of higher education accreditation, the United States is separated into six accrediting regions. The accreditation in each of these regions is provided by what are known as regional accrediting bodies. California Universities are accredited by the Western Association of Schools and Colleges (W.A.S.C.). A university residing outside California but offering courses here will fall into one of the other accrediting regions.

It is of prime importance to you that the university you are considering be accredited by one of the six regional accrediting bodies. Although there are some differences between regional accrediting bodies and their assessment criteria, regional accreditation provides standards for the granting of college credit, thereby providing a framework for those students interested in transferring from one institution to another, or those who wish to move on to an advanced degree. In order to be reimbursed for educational expenses, most companies require that the school you are attending be accredited by a regional accrediting body.

In addition to regional accreditation, there are secondary bodies which accredit the strength of a particular professional school within the university, assessing the quality of the school’s curriculum, faculty, and resources. Professional accreditation is voluntary, and the importance of this distinction varies based on the strength of the professional accrediting body, and perceptions of its importance within industry. For example, whereas business school accreditation through the American Assembly of Collegiate Schools of Business (A.A.C.S.B.), the primary accrediting body for business schools, is viewed as important by some, accreditation for undergraduate engineering degrees through the Accreditation Board for Engineering and Technology, Inc. (A.B.E.T.) is perceived as vital by most within engineering schools and industry.

Unlike professional school accreditation, regional accreditation covers an entire university and therefore includes the accreditation of all programs. The criteria for accreditation is based upon the school’s mission and objectives, and the quality of the resources it employs to carry out that mission. In addition, regional accrediting bodies set standards regarding full-time faculty and retainment, the quality of the learning resources, facilities, and the financial strength of the institution. Thus, a professional school belonging to a regionally accredited university would also be accredited under the regional umbrella.

Professional school accreditation, on the other hand, requires the professional school to stand on its own two feet, outside the umbrella of the University, assessing the strength of the school, its curriculum, resources, and preparedness of its graduates. In addition, professional school accreditation usually sets standards with regards to admission requirements, selection of faculty, and curriculum development.

Professional school accreditation is voluntary. Differing philosophies in the way education should be delivered is one of the primary reasons schools have chosen not to seek professional accreditation.

First look to see that the school you are considering is accredited by a regional accrediting body. Then check with people in your industry to determine the importance of various professional school accreditation bodies to determine if this additional “stamp of approval” is important or even required for acceptance within your chosen career track.

With the ever increasing number of colleges and universities offering Fully Employed and Executive MBA programs, the need to evaluate which program best meets your individual needs becomes even more imperative. The investment of time and money warrants a close scrutiny of your available options. If, at the end of the program you are disappointed, chances are you didn’t do your homework. Key Questions
Here are a few key questions to ask the schools under consideration:

Is the curriculum relevant to my job and my career track?

Within the curriculum, look to see if the school offers an emphasis in an area that has relevance to your career track. If you are planning to run an advertising agency someday, make sure the program has an emphasis in advertising, communications, and/or public relations.

Are the faculty relevant to my career track?

At the end of the day, the quality of your experience in a program will be determined by the quality and relevance of the faculty, as well as the quality and relevance of the other students. Make sure that the faculty in the program have practical and relevant experience in your industry. If you plan to remain in software or IT, make sure that the faculty has the requisite and up-to-date knowledge of this industry, either through their personal work experience or consulting.

What is the quality of the other students in the program?

This is a tough one to measure. Arguments can be made for and against stacking a program with students who are just like you. Most universities tend to strive for a balance between students and the industries they represent.

However, you should look at the work experience of the other students in the program, and their current levels of responsibility within their companies. If you currently run a division with profit and loss responsibilities, and have ten years of work experience, you want to stay away from programs that are filled with 22 year olds looking to become consultants.

• Ask about the backgrounds of the other candidates and current students
• Ask about any work experience requirements. Are they based on years of work experience, or on level of responsibility?
• Ask for alumni references within your industry. If the school has graduated successful alumni from your industry, chances are you can be the next.

Due to the interactive nature of most executive-level MBA programs, the caliber of the student is as important as the caliber of the faculty.

Other questions to ask:

Ask the university what makes their fully employed and executive MBA programs unique.
You are certain to have a ready answer from all program directors. Perhaps it is technology integration, or global alliances.If they can’t answer this question, WATCH OUT. It usually means they have nothing unique to offer, and what they do have is probably inferior to other providers.

What additional services does the school provide to the executive student?

Most schools understand the rigorous schedule of an executive, and provide additional services for this student. Find out what they are. These additional services can include textbook delivery, accelerated enrollment procedures, night-time and weekend library hours, and 24X7 access to faculty through email.

Finally, ask the university to break out all of the costs associated with the executive or fully employed MBA program. You may be surprised at some of the “hidden” fees, including laptop computers with installed software, parking fees, medical insurance fees, and field trips.

GOOD LUCK!

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