Starbucks to expand online college tuition benefit for workers

Out of a total of 191,000 employees, more than 140,000 employees are eligible for the program.

Out of a total of 191,000 employees, more than 140,000 employees are eligible for the program.

Seattle-based coffee chain Starbucks Corp. announced on Monday that it would offer full four year college tuition assistance program to every U.S. employee of the company. The move marks a major expansion of the coffee giant’s previously-announced educational commitment.

According to the company, employees who put in at least 20 hours of work a week will be eligible to have full tuition. The Starbucks college program was founded in 2014, with full-tuition reimbursement available only to seniors and juniors, while students in their first two years got a stipend of $6,500 to cover about half their fees.

The effort is the latest of several recent initiatives by major U.S. companies to make their workplaces more appealing and also to win favour of its customers by cultivating their images for being socially responsible. McDonald’s announced last week that it was expanding a college tuition program to employees at its more than 14,300 U.S. stores. The fast food giant also announced that it would increase hourly wages for U.S. workers at its company-owned stores. Other big employers that have recently announced wage hikes include Target Corp, Wal-Mart Stores and Gap Inc.

Out of a total of 191,000 employees, more than 140,000 employees are eligible for the program. The tuition program is an alliance between Starbucks and Arizona State University, which charges roughly $30,000 for two years of its online degree program. At present, there are about 2,000 Starbucks employees enrolled in ASU online courses. The Arizona State University offers nearly 49 online bachelor’s degree programs, in a variety of subjects ranging from business administration to art history and employees are not required to stay with Starbucks after earning their degrees.

In the next ten years, Starbucks intends to spend at least $250 million to help 25,000 employees graduate. Besides helping employees get ahead, Starbucks CEO Howard Schultz said the economy will gain from having more educated workers in the labor force.

Arizona State University President Michael Crow said the tuition it collects for Starbucks workers will be reinvested into expanding educational opportunities. As part of the collaboration with Starbucks, ASU is offering a discount or scholarship of about 42% of the standard tuition for eligible employees at their company-owned U.S. stores. That means Starbucks would be accountable for up to 58% of the tuition.

The amount Starbucks pays stands to be less and tuition fees are covered through a combination of ASU College Achievement Plan Scholarships, federal assistance like Pell Grants (administered by the school) and loans as a result of their limited incomes. The remainder and loans are reimbursed by Starbucks at the end of each semester.

As part of the agreement, Starbucks has agreed not to recommend undergraduate degrees from other universities to its employees, and Arizona State University agreed not to enter into a similar alliance with any other company without prior consent from Starbucks during the first two years of the program.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

What makes Netflix the first streaming success story?

What makes Netflix the first streaming success story?

Netflix has become synonymous with streaming movies and television. Not only that, Netflix reigns supreme in the world of streaming with mind-boggling 209 million subscribers. Here
12 hours ago
Tesla’s Q3 results deliver high growth and revenue

Tesla’s Q3 results deliver high growth and revenue

Tesla’s total revenue grew 57% YoY at $13.76 billion, as it delivered more cars and witnessed a steady growth in other parts of the business.
2 days ago
Should you sit out on the Rivian IPO?

Should you sit out on the Rivian IPO?

Amazon-backed EV maker Rivian has filed for its initial public offering. We find out if the Rivian IPO is worth the price or simply the next internet bubble.
3 days ago
Bitcoin vs Gold: Here’s what experts have to say

Bitcoin vs Gold: Here’s what experts have to say

Many say that Bitcoin is the digital version of gold. While gold, like the dollar, is an outdated investment vehicle. We turned to experts to settle the bitcoin vs gold debate.
4 days ago
Best Pharma Stocks to Buy Right Now

Best Pharma Stocks to Buy Right Now

Industry Leaders has curated a brief list of the best pharmaceutical stocks you can buy right now, along with a list of pharma penny stocks that have the best potential to grow in
5 days ago
Why Is Squid Game So Popular?

Why Is Squid Game So Popular?

The Squid Game segments were watched by at least 132 million people in the first 23 days of the show on Netflix. Know what excited the viewers.
6 days ago