NEW YORK (AP) – The scholarship portion of a new education program Starbucks is offering to help workers pay for an online degree consists entirely of a discount from Arizona State University and not money from the chain.
The Seattle-based company this week unveiled a benefit that is designed to let college juniors and seniors earn a degree from ASU at no cost. For the freshman and sophomores years, workers would pay a reduced tuition. Workers who are admitted to ASU could pick from 40 degree programs, and wouldn’t be required to stay with Starbucks after they earned their degrees.
A major aspect of the program is an upfront scholarship Starbucks said is an investment between itself and Arizona State University. When asked how much of that scholarship portion the company is providing, Starbucks initially said financial terms weren’t being disclosed.
Following the announcement, however, Arizona State University President Michael Crow told The Chronicle of Higher Education that Starbucks is not contributing any money toward the scholarship portion. Instead, Arizona State will essentially charge workers less than the sticker price for online tuition.
Starbucks said Thursday that the scholarship is a reduced tuition rate. It estimates the reduction in tuition would average about $6,500 over two years to cover tuition of $30,000.