How old are your kids and what kind of students are there? Is it likely they would get accepted and thrive there? How long would you have to keep this job for this benefit? Is it 1.5 hours without traffic or does that consider some level of traffic? Would it be shorter if you could time it right? Take away the commute and the tuition benefits, would you still want the job?
People in my town commute for close to 1.5 hours to get to jobs in NYC, usually a combo of driving, train/bus, subway and walking. Few drive because the tunnel/bridge/parking costs make it untenable. Those that can may go in early so they can get home at a reasonable hour, but my friend really can’t leave her office before 5:30 which means she gets home a little before 7 every day. It is doable, but certainly means time away from the family.
From what I have heard, tuition exchange is not always automatic. Your kids would be competing with other USC kids for the benefit. (This is from a friend whose kid had to work very hard to get her dad’s school to honor the tuition exchange - it was competitive). I would definitely ask about the benefit and how it works, before you commit to the job.
"Tuition Assistance granted for undergraduate work is not taxable if child qualifies as the employee’s dependent under applicable IRS provisions. "
There’s a specific IRS rule on tuition benefits provided to university employee children. Because it is compensation being paid to an employee. So a completely different situation/rule than the general rules on scholarships given to regular students.
Generally, university employees pay no tax on the compensation so long as the kid is going to undergrad. Doesn’t work for grad school. Same rule that allows private K-12 schools to pay tuition for teacher’s kids tax free. There’s a few other requirements too.
I believe the tax gimmick also works for tuition reimbursements that can be used at schools other than the employer school.
I love USC, but three hours is a very long commute. Like Simba9, I wondered whether you asked your kids about whether they would like to attend USC if they also got into, say, Cornell or Swarthmore? Pomona? Cal? I would think that gaining entrance to USC would make them competitive at many of those schools.
I know we paid taxes on our measley tuition benefit. (It was a few thousand.) The OP has four children, so it’s unlikely that all of them are even in high school yet. How would they know where they want to go to college?
Blossom’s rule for sound planning applies here: Do not make any decisions or moves for financial aid that are not otherwise sound decisions for you and your family. This means don’t buy an annuity to “shelter” your savings to increase your need-based aid UNLESS it makes sense based on other factors to buy an annuity; this means don’t re-title assets being held so that they are owned by the family dog (being facetious here but you know what I mean- and plenty of people do lame-brain things for the sake of increasing their financial aid).
In this case- Do not take the job at USC JUST for the possible financial aid benefit (your kids might not get in, might not want to go, you might hate the job after a year and quit before the kids even get to college age, etc.). If it’s a great professional move, AND there is an upside in terms of aid- that’s called a win-win. But if it’s not a great professional move (either because of pay, commute, professional advancement and possible mentors/more responsibility, bigger job, etc) then taking it for the POSSIBLE aid is not an optimizing strategy.
I know people (not academics- but folks on the business and support side of academia) languishing in dead-end jobs for years betting on the financial aid fairy making it pay out. Guess what- if you are a financial analyst or contracts lawyer working at a university for 60% of what you could be making elsewhere, and you stay JUST for the aid- you are likely not doing the math correctly. If you love your job- great. If your kid gets in and takes advantage of the tuition benefit, everyone is a winner. But if you hate your job, and you are now tens of thousands of dollars behind the 8-ball financially, AND you have a terrible commute- boy, that calculation is off.
Everyone loves free. But not if it’s costing you actual out of pocket, out the door costs.
I have a colleague who left corporate recruiting to take a job as head of career services at a university- 50% pay cut. More paid holidays and better sick leave, but worse benefits otherwise (the things that cost actual money- like medical, dental, life insurance, pension contributions, stock options). Only two kids- neither of whom are shaping up to be admissions candidates for this university. Bad deal all around. When you are in your 50’s it is hard to get back on the ladder once you take a significant pay cut. (Again- if you love your job at a university- fantastic!!! But if you tolerate it just to log enough years to get the “free” tuition…)
There is a difference between tuition exchange (going to other colleges) and using the reduced or free tuition at your own school.
I’d do it in a minute if I thought my kids could get into USC. MANY people in LA commute 2 or more hours one way and there are ways to do it - train, light rail, sharing rides, sharing vans. Many employers allow you to work 4 ten hour days.
I think it is too much time in the car. That would be 10 hours less a week you will be with your kids. And some days in LA a 90 minute commute can take 3 hours if the traffic is horrible. Plus the stress of spending so much time in the car would probably make you cranky.
While many people commute upwards of 1.5 hours one way in LA (or DC or SF), I bet the vast majority would switch in a heartbeat if you offered them a better paying job and a commute that’s a 15 minute WALK .
I think it depends a lot on what your kids think of USC, they may really want to go there, idk. If it is a school they love (many in socal dream of going to USC) then they just need to hit the marks to get in. I know an employee there and his third just accepted - when done he will have banked a MILLION dollars in education for free. Ya, I would drive for that after putting in an amazing car stereo with Sirius/XM/Apple Car Play, etc. I’d jut be sure chance of them actually going there is good from kid’s side and job side. However, can you start after El Nino?
