What is the Tuition Exchange Program?

The Tuition Exchange (TE) program is a unique reciprocal tuition waiver initiative designed to make higher education more accessible for children of faculty and staff at participating colleges and universities. Established decades ago, it allows dependents of eligible employees—known as 'exporters' from their home institution—to attend another participating school, called the 'import' institution, often tuition-free or at a heavily subsidized rate. This exchange relies on a balanced reciprocity where schools 'swap' students, ensuring each member institution offers a minimum number of scholarships annually.

Currently, over 700 nonprofit, regionally accredited institutions across 48 states and nine countries participate, awarding scholarships to approximately 7,800 students each year. The scholarship value typically covers full tuition or matches TE's annual 'set rate'—$43,000 for the 2025-26 academic year and rising to $44,000 for 2026-27. Families apply through their employer's Tuition Exchange Liaison Officer (TELO), and awards are competitive, with no guarantee of placement at a dream school despite eligibility.

This benefit has long been a cornerstone perk for higher education employees, enabling them to afford top-tier education for their children that might otherwise be out of reach. However, as financial pressures mount on universities, this vital support system is under threat.

The Wave of Layoffs Sweeping US Higher Education

American colleges and universities slashed at least 9,000 jobs in 2025 alone, with the trend accelerating into 2026 amid enrollment declines, federal funding uncertainties, and rising operational costs. By early 2026, monthly cuts included over 300 positions in February and continued program eliminations and staff reductions at dozens of institutions. Public and private schools alike—from large research universities to small liberal arts colleges—have invoked financial exigency or implemented voluntary separations to balance budgets strained by post-pandemic recovery, policy shifts under the Trump administration, and demographic enrollment cliffs.

Examples abound: The University of Southern California (USC) laid off nearly 1,000 employees since mid-2025 to address a $230 million deficit. Princeton University reduced raises and trimmed benefits, while DePaul University cut 114 staff positions, representing 7% of its workforce. These aren't isolated incidents; Inside Higher Ed tracked hundreds of layoffs monthly, signaling a 'brutal year' for the sector where total employment hovers around 4 million.

While necessary for institutional survival, these cuts ripple beyond payroll, striking at employee retention, morale, and long-term loyalty—especially through the loss of family-focused benefits like TE scholarships.

How Layoffs Directly Endanger Tuition Exchange Scholarships

TE eligibility hinges on the exporting employee's active employment status. When a parent is laid off, the home institution must affirm continued eligibility for the scholarship to persist at the import school. Without this certification, the award evaporates mid-degree, forcing students to transfer, take on massive debt, or drop out.

Institutions face no financial penalty for extending eligibility—it's a policy choice rooted in goodwill and reciprocity. Yet, policies vary: Some, like the School of the Art Institute of Chicago (SAIC), explicitly limit benefits to 'active employees only,' leaving laid-off families in limbo. Others may approve extensions, but communication delays exacerbate stress during critical semesters.

The mechanism is straightforward: TE charges families $300 per semester for extended certification if approved, plus standard $55 annual fees per export. Membership dues ($750/year plus $500 initiation) fund the program, but layoffs reduce the pool of potential exporters, straining reciprocity as fewer slots become available overall.

Heartbreaking Stories from Affected Families

Joe Behen, a 30-year SAIC veteran laid off in November 2025 as dean of student wellness, faces the nightmare of his daughter Chloe losing her USC scholarship covering 80% of her $75,000 annual tuition—roughly $60,000. Chloe, a cognitive science sophomore, raves about USC: 'I've met the best people... I love the cognitive science major, the weather, the teachers.' Without it, even in-state options like Illinois would cost more.

Behen launched a Change.org petition on March 1, 2026, garnering 179 signatures, urging 710 TE schools to honor scholarships through graduation and report any losses publicly. 'Don't cut people’s scholarships... it’s the worst nightmare,' he said.

• Lara DeRuisseau's husband, a tenured professor at a Missouri university facing acquisition-driven cuts, risks his daughter's awards at three schools, each offering just 3-4 TE slots amid thousands of applicants.
• Anonymous Facebook parents report sudden losses during orientations, derailing plans after years of service.

These cases highlight emotional tolls: disrupted academics, mental health strains, and family finances upended when support is needed most.

Photo by Vitaly Gariev on Unsplash

Tuition Exchange's Proactive Response

On March 11, 2026, TE President Kristin Tichenor issued a new protocol clarifying extensions for 'reductions in force.' Institutions can support families at zero cost, with TE handling certification post-approval. Tichenor noted rising inquiries: 'You have always had the ability... Good news.'

Visit the official Tuition Exchange site for full details on the process and updated rates. While helpful, adoption depends on cash-strapped admins prioritizing loyalty over immediate savings.

Divergent University Policies and Challenges

No uniform policy exists; decisions rest with HR and leadership. SAIC's strict stance contrasts potential extensions elsewhere. Broader benefit cuts—like USC's scholarship reductions and Princeton's trims—signal eroding perks amid deficits.

Challenges include:

• Competitive slots: Top schools award few TE scholarships.
• Reciprocity strain: Fewer employees mean fewer exports, pressuring imports.
• Legal/ethical debates: Long-service employees argue vested rights.

Broader Implications for Higher Ed Workforce and Retention

Layoffs erode trust, with TE losses amplifying resentment. Employees weigh job stability against family education dreams, deterring talent in a competitive market. Surveys show benefits like tuition remission rank high for retention; cuts could spur exodus to industry or stable sectors.

Institutions risk morale dips, union pushes, and lawsuits, as seen in faculty strikes over exigency declarations.

Statistics Painting a Dire Picture

With 7,800 TE scholars, even 1% affected disrupts 78 families. Layoff trackers confirm ongoing cuts at 100+ institutions.

Photo by Nationaal Archief on Unsplash

Solutions, Advocacy, and Future Outlook

Advocacy like Behen's petition pressures transparency. Solutions include:

• Policy standardization for extensions.
• Endowment reallocations for benefits.
• Alternative aid: Explore scholarships or state programs.

Outlook: Persistent deficits may shrink TE pool, but protocols offer hope. Families should contact TELOs early and document service.

For deeper reading, see this detailed analysis from Inside Higher Ed.

Actionable Advice for Employees and Families

1. Review your institution's policy now.
2. Apply for extensions pre-layoff rumors.
3. Diversify applications; consider tuition remission at employer schools.
4. Seek career stability via higher ed job boards.
5. Build emergency funds for $300/sem fees.

Proactive planning can salvage dreams amid uncertainty.