Walt Disney Co. has announced cuts to the education program that it provided for employees via the Disney Aspire program. Previously, Disneyland employees received tuition perks as one of the benefits of working at the organization, having educational opportunities available to them for free. Since 2018, the program provided employees with support for completing their college education while they continued to work, guaranteeing assistance for both bachelor’s and master’s programs.
This will no longer be the case as Disney employees will see tuition support for the bachelor’s program reduced soon, while master’s programs will no longer be supported by Disney Aspire.
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Disney’s Education Program to Enforce a $5,250 Funding Cap
As per Disney’s notice on the education program cuts, the master’s program will no longer be covered by the program so employees will no longer be able to seek support for advanced degrees. This change has likely already been enforced, and master’s programs and Penn Foster Trades programs will no longer be open for enrollment through the Disney Aspire program.
Access to these programs was provided in collaboration with Guild Education, a portal that has helped innumerable companies kickstart their employee education programs. Employees will still be able to seek assistance for undergraduate degrees through the portal, but even this will come with its own narrow limits.
Reports suggest that by November 27, 2024, the Disney Aspire in-network schools will enforce a funding cap of $5,250 on the educational assistance provided to an individual employee. This cap is the same as the IRS limit on tax-free benefits for educational assistance programs and is commonly followed by many organizations.
The tax benefits allow employers to deduct the stated $5,250 annually per employee as a business expense if spent on education assistance programs but any amount spent beyond that is taxable. This is likely the reason why Disney has chosen to cut down on the college tuition perks it is willing to offer.
Organizations that follow the same strategy usually announce the tuition cap in advance so employees know what they are signing up for, but Disney’s sudden change of heart has made it hard for existing employees to accept the decision, many of whom joined the organization with the promise of the support it offered.
How Will the Disney Employee Tuition Reduction Plans Affect Employees?
An online petition started by a Disney cast member states “The Disney Aspire program was highly sought after. It provided an opportunity for passionate and dedicated individuals like myself to pursue advanced education. Disney’s commitment to this unique program has been laudable, however, the unanticipated changes have been disconcerting.” The petition goes on to implore the company to reinstate the master’s degree programs, showing how revered it was among employees.
With regards to Disney’s education program cuts, a spokesperson told HR Dive, “Since Disney Aspire was first introduced, we have continued to evolve the program to meet the needs of our cast members and employees, as well as the needs of our business.” Disney has not provided any indication that it intends to reverse its decision on the programs.
Employees enrolled in the current term will continue to be fully funded until the November 27 deadline, but when the funding period is renewed, they will likely be faced with the funding cap as well. Apart from the Disneyland employees’ tuition-based perks, the funds covered all educational expenses such as books or resources required for the program. Now, employees will have to find a way to cover the rest of the costs themselves or cut back on the education plans.
The change will have a big impact on employees who relied on the company to see their education through, particularly the employees who were hoping the program would help them achieve their master’s. Other organizations like Apple and Starbucks have a similar $5,250 expense limit on their education programs and companies that don’t could soon follow suit.
