Understanding ASU's Qualified Tuition Reduction Program

One of the most valuable benefits offered to employees of Arizona State University (ASU) and other state universities is the Qualified Tuition Reduction (QTR) program. This program, sponsored by the Arizona Board of Regents, allows eligible employees, their spouses, and dependent children to pursue educational opportunities at a reduced tuition rate. This article provides a comprehensive overview of ASU's QTR program, including eligibility requirements, covered expenses, application procedures, and tax implications.

Who is Eligible for the QTR Program?

The QTR program extends reduced in-state tuition to a variety of individuals affiliated with the state university system. Eligibility criteria include:

Regular Benefit-Eligible Employees: Individuals employed at least 50% within the state university system are eligible. Employment must begin on or before the first day of the session to qualify for the employee reduced in-state tuition.
Official NAU Retirees: Those who have officially retired from Northern Arizona University (NAU) may also qualify.
Former Employees Receiving Long-Term Disability Benefits: Individuals receiving long-term disability benefits with five years of continuous service may be eligible.
Designated Affiliates: Specific affiliates designated by the university may be eligible for the program.
Spouses and Dependent Children: Spouses and dependent children of eligible employees can also receive reduced tuition. Furthermore, spouses and dependents of deceased employees may also be eligible for the benefit.

Eligibility Requirements for Spouses and Dependent Children

Spouse: A legally recognized spouse is eligible for the QTR benefit.
Dependent Child: A dependent child must meet specific criteria to be eligible:
- Must meet the definition of "child" as defined under IRS §152(f)(1).
  
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- Must be the employee's dependent for tax purposes. An affidavit confirming the child's eligibility may be required. The program uses the definition of a child from IRS Publication 501. In most cases your child will meet the definition of a dependent child for a given tax year if your child meets the following criteria:
  - Age: Is under age 30
  - Tax Dependent: Is your tax dependent or could be your tax dependent except for a divorce decree. If the child is married, they do not file jointly with their spouse.
  - Citizenship: Is a citizen or resident of the US, Canada or Mexico
  - Residency: Resides with you for more than half of the year including any time away for college. There is an exception for a qualifying dependent of non-custodial parent.
  - Support: Provides less than half of their total support, if your child is under age 24, or they do not earn more than the personal exemption, if your child is between ages 24 - 30.

Individuals Not Eligible

It's important to note that certain individuals are not eligible for the standard QTR program:

Domestic Partners: This program is not available to domestic partners and their dependent children, except for same-sex and opposite-sex domestic partners and their family members who have been certified by the Provost’s Office before Nov. 1, 2014.
Graduate Assistants: While graduate students receiving a graduate assistantship may receive tuition reduction benefits, they must choose between those benefits and the Employee Tuition Reduction Program and inform the Graduate College of their decision.
Employees Not Active on the First Day of the Semester: To qualify for the Employee Tuition Reduction Program, employees must be active and benefit-eligible on the first day of the semester. If employment terminates before the first day of classes, the tuition reduction will be removed from the student’s account.

What the QTR Program Covers

The QTR benefit primarily covers tuition expenses. However, it's essential to understand what is included and excluded:

Covered: The benefit is for tuition only.
Not Covered: Students are responsible for course fees, labs, textbook purchases, and potential taxation.

Tuition Reduction Amounts

The tuition reduction amounts vary based on the beneficiary (employee, spouse, or dependent child) and the institution:

Employees and Spouses (U of A, NAU, and ASU): Tuition is reduced to $25 per semester/term.
Dependent Child (U of A, NAU, and ASU): Tuition is reduced to 25% of the in-state tuition amount.
Employees, Spouse and Dependent Child (University of Arizona Global Campus (UAGC)): Tuition is reduced to $3.57 per credit hour for undergraduate programs and $4 per credit hour for master's and doctoral programs. Includes qualified domestic partners.

Credit Hour Limits

The QTR program also specifies credit hour limits for each semester:

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Fall/Spring: 1-9 credit hours are covered at the reduced rate.
Summer/Winter: 1-6 credit hours are covered at the reduced rate.

Credits exceeding these limits are charged at the in-state per-credit resident tuition rate.

How to Apply for the QTR Program at ASU

To apply for the QTR program, applicants must be admitted as students at their respective universities and have a student ID. The application process involves the following steps:

Access UAccess: Log into UAccess.
Navigate to the QTR Application: Select the compass (diamond in a circle) in the top right corner.
Submit the Application: Complete and submit the Qualified Tuition Reduction Form. At ASU, the Qualified Tuition Reduction Form must be submitted on or before the first day of a session to qualify for reduced tuition. The e-TRP form is available 90 days prior to the first day of the semester\term and the form will close for a semester\term on the last day of instruction.
Deadlines: Apply for QTR in UAccess during the application timeframes. These deadlines apply to all University of Arizona employees, whether using QTR at ASU, NAU, or University of Arizona Global Campus (UAGC), regardless of class start dates. Medical school applications are also subject to these dates and deadlines. Note: You must submit a separate application for each semester or session. However, only one application is required for all summer sessions.

QTR Application Deadlines Examples

SEMESTER	APPLICATION OPENS	APPLICATION DEADLINE	MUST BE AN ACTIVE EMPLOYEE ON
Spring 2026	Oct. 14, 2025	Feb. 18, 2026	Jan. 14, 2026
Summer 2026	Feb. 18, 2026	June 22, 2026	May 18, 2026
Fall 2026	May 24, 2026	Sept. 28, 2026	Aug. 24, 2026
Winter 26/27	Sept. 21, 2026	Jan. 12, 2026	Dec.

Applications can be submitted online up to three months before the beginning of the semester for which the tuition reduction is requested. Submitting an online application does not guarantee the continuation of this benefit if the employee's status changes before the first day of the semester. UAGC students can expect to complete the QTR application process 3 times per year.

If you or your dependent attend ASU or NAU, you must submit a screenshot of your approved application directly to that university’s tuition office.

Verifying Application Status

Applicants can monitor their application status in UAccess Employee:

Log in: Log into UAccess.
Navigate to QTR Applications: Select Main Menu > University Benefits > Qualified Tuition Reduction > View QTR Applications.
Search for Application: Enter your transaction number and click "Search." If you do not know your transaction number, click "Search" to view all submitted applications.

Once Human Resources approves the application, the Bursar’s Office will adjust student account balances within 48-72 hours.

Tax Implications of the QTR Program

The tax implications of the QTR program vary depending on the level of education and the beneficiary:

Undergraduate Degrees: Tuition savings for undergraduate degrees are not taxable for employees, spouses, or dependent children.
Graduate Degrees: Tuition savings up to $5,250 per year are not taxable. However, employees are taxed on the value of the tuition reduction exceeding $5,250 per year. The Tuition Benefits Taxation Guidelines page provides a general overview of the tax liability of the QTR and DPTP benefits. This does not constitute tax advice.

Tax Scenarios

Employee (Graduate Student) - $5,000 Tuition Reduction: The employee is not taxed on the tuition reduction benefit.
Employee (Graduate Student) - $10,000 Tuition Reduction: The employee is not taxed on the first $5,250 of the tuition reduction benefit but is taxed on the remaining $4,750.
Spouse (Graduate Student) - $2,000 Tuition Reduction: The employee, not the spouse, is taxed on the entire $2,000 of tuition reduction.

Tax Schedule

Spring taxation begins in March.
Summer taxation begins in August.
Fall taxation begins in October.

Employee-only benefits exceeding the $5,250 threshold amount within the same tax calendar year are taxed on only the amount that exceeds the $5,250 threshold.

If you have any questions about taxation, please submit a Financial Administration and Technical Support request in the Employee Service Center, selecting “eTRP Taxation” for the Inquiry Type.

Additional Considerations

Institutional Merit-Based Aid: Institutional merit-based aid provided by the University will not exceed the value of stated resident tuition for each respective academic year when combined with the Qualified Tuition Reduction (QTR, a benefit for faculty and staff) or other tuition reduction programs (or waivers). Students offered multiple awards designated for base tuition, cannot receive more than 100% of base tuition.
Program Restrictions: Some programs at ASU and UA do not allow the tuition reduction benefit to be applied. Check with each university to ensure your program accepts the tuition waiver.
Tuition Calculator: Use the Bursar Office’s Tuition Calculator to calculate total tuition before and after applying QTR.
Forms: Employees, spouses and dependents can download a qualified tuition reduction form to complete for submission. Forms are accessed and submitted through Adobe Sign. Any additional required signatures will be routed electronically to the appropriate signer or returned to ASU Student Business Services for application to the applicable student account.

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