NEW YORK ― Starbucks says more than 1,000 of its workers have enrolled for an upcoming fall semester at Arizona State University to take advantage of a program that helps pay for their tuition.
That’s from about 4,000 workers who started the application process, 2,000 who completed it, and 1,800 who were accepted by the school, according to Starbucks. The Seattle-based company said the most popular degree programs being pursued are psychology, organizational leadership, health sciences, mass communications and media studies and English.
Starbucks said it is too early to tell how much the company will end up paying in tuition reimbursement for the first batch of students. Reimbursements to workers will vary, with many employees expected to qualify for financial aid such as federal Pell grants because of their limited incomes. Over time, however, Starbucks said it expects to spend “tens of millions of dollars” a year on the tuition reimbursement as more workers take advantage of it.
The company is partnering exclusively with Arizona State University’s online school to offer the benefit.
The program was greeted with fanfare this summer because tuition reimbursement is a rare benefit for low-wage retail and food workers. Starbucks also isn’t requiring workers to stay with the company once they finish their degrees. Some of the program’s terms also drew criticisms, however, such as its requirement that students complete 21 credits before being reimbursed.
The program’s terms also vary depending on the student’s year.