Starbucks Free Tuition Program For Part-Time, Full-Time Employees Unveiled; Benefit Equals Up To $30,000 Per Partner

A Starbucks free tuition program, where part-time or full-time employees are offered two years of free college, was unveiled Monday by company CEO Howard Schultz. The benefit was created through a partnership with Arizona State University’s online studies program and is equal to about $30,000 per employee.

Starbucks’ new partners’ benefit involves generous tuition reimbursement that covers two full years of classes. The company calls its employees “partners.”

CNN Money notes that the recently launched program is yet another unconventional move from the upscale coffee retailer. Starbucks went against the trend when it continued offering health insurance for both full- and part-time employees as other companies dialed back offerings and blamed Obamacare.

Starbucks CEO Howard Schultz became the company’s top executive once again in 2008 and turned around the slumping enterprise. He also stood out among his peers when he backed the boost in minimum wage, CNN Money reports.

The business leader described the new education initiative in grand terms: rebuilding the American Dream for employees who are left behind in an economy that requires a degree. While at the same time, the cost of education can be prohibitive.

“The rules of engagement for running a company that is people-based like Starbucks, and so many other companies: you just can not continue to leave your people behind and only focus on shareholder value,” Schultz told CNN’s Poppy Harlow, as the network’s financial news site reports.

“I feel so strongly this is the right thing to do and Starbucks as a company is going to benefit in ways that probably we can not identify today.”

The Seattle-based company did not release an estimate for how much the program would cost because it has yet to know how many employees will take advantage of it.

The offer also comes with no strings attached; employees will not be required to stay with Starbucks after earning their degree.

Most of the company’s 135,000 U.S. employees can avail of the program, the company CEO said. About 70% of the workforce does not have undergraduate degrees. Starbucks partners currently pursuing studies at another institution can apply transfer credits to Arizona State University.

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