NEWS: Disney Is Cutting Cast Member College Tuition Benefits

The Walt Disney Company employs thousands of people, ranging from college-age students to adults who have been with the company since Magic Kingdom opened in 1971.

There are a variety of reasons why people choose to work for the company, including the benefits available to employees. But now, one of those benefits seems to be changing.

The Disney Aspire Program is an “educational investment and career development program” for eligible hourly full-time and part-time Disney employees. The program assists Cast Members by covering their college tuition.

Previously, this program offered 100% tuition assistance and other financial benefits, like reimbursement for textbooks. It is a major draw for many people hoping to work for the company; Disney notes that 1 in 4 applicants for hourly roles had cited Disney Aspire as a primary reason for applying.

Disney is now making cuts to the program. Those enrolled in the Disney Aspire program recently received an email update from Guild, the third-party company that runs the program. The email notes that now, Disney Aspire in-network schools will have an annual funding cap of $5,250.

The funding period is late November through late November of the following year, and the program will continue to cover tuition, fees, and books up to that cap of $5,250 annually.

The notice further stated that another change is effective immediately. Master’s Degree and Penn Foster Trades programs will no longer be available for new enrollment through Disney Aspire. Students currently enrolled in those programs may continue, but will be subject to the funding cap.

For reference, tuition at the University of Central Florida (which is the largest University in Florida and the college that many Disney World and Orlando area Cast Members choose to attendattend) is $212 per credit hour. The new funding cap would pay for at least 18 credit hours per year with some extra room for books and fees. For employees who work full-time and go to school part-time, that funding cap would likely be sufficient.

It appears this specific change could be due to tax implications. The IRS website states the following about educational assistance programs: “Taxpayers do not have to pay tax on the amount of benefits up to $5,250 per calendar year and their employer should not include the benefits in their wages, tips and other compensation shown in box 1 of their Form W-2.” Other major companies have similar tuition assistance limits, including Home Depot, Starbucks, and Apple.

We reached out to Disney for comment on this change and received this statement from a spokesperson:

“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 Aspire continues to offer an evolving catalog of programs and degree options across various fields of study, skills, and professions, providing our eligible employees the opportunity to pursue disciplines and diplomas including high school equivalency, English language learning, and undergraduate degrees.

In addition to Disney Aspire and our education reimbursement program for salaried employees and cast members across the U.S., we also offer a variety of hands-on learning, training, and career development experiences that help employees and cast members to get to where they want to go professionally.”

This is a developing story. We’ll make sure to keep you updated with any more information about this change and its implications, so stay tuned to AllEars.

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