Tuition Exchange

Through Tuition Exchange scholarships, member colleges and universities offered over 7,800 scholarship awards in the 2023-24 academic year, totaling over $328 million dollars. Each member school determines its policies and procedures for eligibility and scholarship requirements. That's why working closely with the Tuition Exchange Liaison Officer (TELO) where you are employed is essential.

Click here to find your TE Liaison Officer.

Tuition Exchange is a member-based scholarship opportunity. There is no guarantee that your student will be selected to receive Tuition Exchange at the institutions they apply to.  Depending upon the institution, the scholarship selection process can be very competitive so it is important to know the TE application deadlines for the schools the student is considering.   Clicking on the school under consideration on the TE Member List will provide useful information on the school's process  and TE application deadlines (be sure to click on "Application  Year Information" once on that page).

TE Central has created two Frequently Asked Question documents. You are encouraged to read all, as your student is both an EXPORT and an IMPORT student. We are confident that you will find most, if not all, the answers to your questions.

Who is eligible?
Eligibility is determined by the Export institution (home institution). The school may set requirements for employment status, years of service, or priority status or limit the number of eligible students per family. Start with the Tuition Exchange Liaison Officer (TELO) at the parent's school first to determine eligibility guidelines. The guidelines are often published in the employee handbook or the college's internal website.  

Are all eligible students guaranteed a scholarship?
No. The Tuition Exchange scholarships are never guaranteed. The Tuition Exchange scholarship is competitive and one for which you must apply. In order to be offered a TE Scholarship, the student must have applied for admission to the Import college/university and have been accepted for admission. Each institution tries to maintain a balance between its exports and imports. Members often set up a mechanism to establish priority for exports. When export requests exceed the number of students looking to attend the member school, the school may not be able to offer new exports. 

How competitive is the award process?

Tuition Exchange scholarships are competitive. Every student must meet the Imports school's admission requirements and application deadlines. Member schools may have additional requirements for TE recipients, such as maintaining a specific GPA and completing the FAFSA annually. Other members limit awards to just a few new students each year. You can increase your odds of receiving a scholarship if you apply to one or two schools that offer scholarships to many applicants. Click here for additional information.

When do I apply for admission to the colleges I select?
You should apply for college admission simultaneously with applying for a Tuition Exchange scholarship.

What is the application process?

• At least 12 months before you hope to access the TE scholarship program, contact your TE Liaison Officer for details on the process and deadlines. The first step is to contact the TELO where the parent is employed. Ask for a copy of the Export guidelines and determine how your employer selects Export students.
• Your TE Liaison Office determines all EXPORT employee eligibility.
• TE Liaison Officers at the institutions you apply to will notify you and your home Liaison Officer of the award decision. If you're accepted for admission at a particular school but haven't been notified regarding a TE scholarship decision, contact your Admissions Counselor. 
• Review the financial aid award notification carefully. It will specify the TE scholarship amount, duration, and conditions of your scholarship, along with details about the institution's charges. Ensure you understand all expenses you're responsible for and any requirements you must meet to maintain the TE scholarship in subsequent years. It is possible that your total award can include federal and state grants and institutional scholarships (academic and co-curricular).
• The application process starts with the EXPORT TE Liaison Officer. The IMPORT school will update your export TE Liaison Officer when you enroll. If you withdraw or transfer to another institution, promptly notify the Liaison Officers at the school you're leaving and the home institution.  Remember, if you decide to transfer to another TE member school, you start over with the application process. There is no guarantee that your new school will offer you a TE scholarship.

Should I expect a written notification?
The Tuition Exchange encourages member institutions to send a formal letter notifying you of the award and outlining the terms and conditions for receiving and continuing the scholarship. Often this notification is the Financial Aid Award or Notification. If not clear - check with your Admissions Counselor or Financial Aid Office. 

How many semesters does the scholarship cover?
Most scholarships cover four years (eight semesters) of undergraduate education. Institutions have the right to offer scholarships for less than four years and, in some rare cases, institutions are willing to offer more than four years.  Check with the individual Import school that offers the TE Scholarship for specifics.

Some schools allow scholarships to be used for professional and graduate study. Tuition Exchange eligibility at the graduate level is generally limited to the employee and spouse/recognized domestic partner as most schools follow the dependent definition outlined by the Free Application for Federal Student Aid (FAFSA).  The FAFSA considers all graduate students to be independent, regardless of age. For additional information, check with your employer first. 

What must I do to retain my scholarship?
You must meet the institution's standards for academic performance, social and personal conduct, and other terms and conditions of the scholarship. Those requirements vary by school. It is your responsibility to ask and understand the renewal requirements.

What happens if the employee loses eligibility?
The family member whose employment enabled TE eligibility must continue to meet the home institution's eligibility criteria. If the family member is considering a job change, they should visit HR at the home school. If the parent separates from the institution, the Export school's TELO will update the student's status and the Import school will be notified that the student is no longer a qualifying dependent for TE eligibility. If the parent becomes employed at another TE-eligible institution and the student meets that institution's definition of a qualified dependent for TE purposes, the student would need to do a new TE application under the new Export school where the parent is employed.

What is the dollar value of Tuition Exchange scholarships?
Scholarships cover full tuition, one-half tuition for a non-resident at a public institution, or the TE set rate determined by The Tuition Exchange. They do not include special fees, course overloads, or room and board charges. For 2024-2025, institutions that charge more than $42,000 are permitted to award less than their full tuition but not less than the set $42,000. For 2025-2026, the TE set rate is $43,000 per year.

• Colleges can cover other expenses, such as housing, in their awards. Check the TE Member Schools page for details on which schools offer scholarships that include more than basic tuition.
• Some member schools reduce their scholarships by the amount of federal and state grants awarded, whether or not these awards are based on financial need.
• The scholarship offer letter that notifies you of your award should indicate renewal requirements. If you're unsure, ask the school to clarify before you accept the scholarship.

Are Tuition Exchange scholarships taxable?
You should seek guidance from your tax professional advisors regarding the taxability of an exchange scholarship. For necessary information, consult the Internal Revenue Service Publication 970, Tax Benefits for Education, on the IRS website (www.IRS.gov).

Excerpts from Publication 970: "Qualified tuition reduction means a tax-free reduction in tuition provided by an eligible educational institution."... "for education below the graduate level"... "provided to the following individuals: "current employee, a former employee who retired or left on disability, widow or widower of an individual who died while an employee, a widow or widower of a former employee who retired or left on disability, a dependent child or spouse of any person listed above."

It is important to note that graduate education is excluded unless it is provided "to a graduate student who performs teaching or research activities." The tuition reduction benefit "must not discriminate in favor of owners, officers, or highly compensated employees."

What is the role of the Tuition Exchange in the process?
The Tuition Exchange promotes and maintains the exchange on behalf of member institutions. Scholarships are granted by member institutions, not by The Tuition Exchange.  TE memer institutions set their own dependent eligibility guidelines and criteria for awarding the scholarship. The officers of The Tuition Exchange disclaim responsibility for any misunderstandings among applicants, participants, and institutions concerning the value and duration of scholarships or circumstances which might result in the early termination of the scholarship. The Tuition Exchange partnership continues to seek ways to make scholarships more widely available to qualified applicants and strengthen the exchange by adding new members.