1 Starbucks and ASU: Partners in educating leaders for the world. Starbucks Questions ASU Questions What is this new program? ASU is joining with Starbucks to offer an extraordinary new program to all of their full- and part-time partners of every brand, employed within the US, the chance to finish a bachelor s degree with full tuition coverage through ASU s top-ranked degree program, delivered online. Why are we partnering with Starbucks? We both believe everyone deserves the opportunity to get a great education. Starbucks is establishing a new precedent for the responsibility and role of a public company that leads through the lens of humanity and supports its partners life goals with access to education. And we have a constant desire to find new ways to offer more people a quality higher education, and the freedom to pursue their passions in any direction. With these shared values this partnership was a natural for both of us. How will this program help the partner earn a bachelor s degree? This program is designed to support college completion full tuition reimbursement for juniors and seniors to finish their degrees, and providing an on-ramp to higher education for freshman and sophomores with a CAP Scholarship. In addition to financial support, Starbucks and ASU will support students every step along the journey. ASU counselors will provide individualized support through graduation. Where do I go to learn more? We invite all partners to explore the advantages of pursuing higher education by visiting starbucks.com/collegeplan. I am enrolled at another college and want to transfer, what should I do? You can transfer to ASU at any time, provided you meet their admissions criteria. That means you can finish your freshman and sophomore studies at your current college and wait to transfer until you qualify for full tuition reimbursement as a junior or senior, or you may transfer now to take advantage of the CAP scholarship. You may talk through your options with an ASU counselor, with no obligation to apply or transfer. Can family members use the Starbucks College Achievement Plan? No. This Plan is offered to help current partners finish a college degree. As with all of our programs, we will look for opportunities to innovate in the years ahead. Will studying for an associate s degree qualify for this program? No. At this time, the program covers undergraduate bachelor s degrees only. However, if you choose to start or complete an associate s degree at another college, you may be able to transfer to ASU later to complete a bachelor s degree online. Will studying for a graduate degree or second bachelor s degree qualify for this program?
2 Partners who already have a bachelor s degree cannot use this program for further study at this time. Currently this program is about creating opportunity for partners who don t yet have a college degree. I want to take part in Starbucks College Achievement Plan, but ASU doesn t offer the degree program I want. ASU currently has a choice of more than 40 bachelor s degree programs, delivered online, and regularly looks to bring more degree programs into their suite of online offering. If your preferred major isn t offered today, make an appointment with an ASU counselor. ASU counselors may be able to help you find an excellent equivalent (and help you transfer any academic credits you ve earned). They may also be able to advise on whether your preferred major will be offered in future. Does on-campus enrollment at ASU qualify for the program? These benefits are only for partners attending ASU online and cannot be used for oncampus study at ASU. If you are attending in person and are interested in switching to the ASU online program, contact your academic advisor, visit starbucks.com/starbuckscollegeplan or talk with an ASU enrollment counselor. How do I receive the tuition reimbursement through Starbucks College Achievement Plan? As a Junior or Senior each time you complete 21 credits, you are reimbursed for the full cost of the tuition and mandatory fees for those credits, as well as any other credits you earned that semester provided you remain eligible for benefits, enrolled in classes and on track to graduation. Your reimbursements automatically appear in your paycheck you don t have to fill out additional forms or take extra steps to make it happen. Is there a tax implication when receiving this benefit? The Starbucks College Achievement Plan is included in a Qualified Education Reimbursement plan under Internal Revenue Code Section 127. As such, CAP Reimbursement payments up to $5,250 per year are tax free for federal income tax and most state income tax purposes. Exceptions to the above are as follows: If the annual benefit exceeds $5,250, the excess amount will be reported as a taxable payment to the partner and applicable federal and state taxes will be withheld from the payment. Certain states have not adopted the federal treatment (currently Alabama, Indiana, New Jersey, and Pennsylvania). If you work in one of these states, the full CAP Reimbursement payment is taxable for state income purposes and may be subject to applicable state tax withholding. Future changes in tax law could impact the federal or state taxation and/or the annual limitation of the benefit.
3 I m a junior or senior. What should I expect to pay upfront for my tuition before I get a Starbucks Reimbursement? Juniors and seniors will receive a CAP Scholarship that covers approximately $30,000 in tuition costs for two years of full time study that you will never need to repay. When you register for classes, you pay ASU the tuition balance that remains. Most students qualify for student loans to cover these payments. Each time you complete 21 credits, you earn an CAP Reimbursement for the full tuition costs and mandatory fees for those 21 credits, and any other credits earned that semester. I m a freshman or sophomore. What should I expect to pay for my tuition? Freshmen and sophomores will receive a CAP Scholarship that covers up to $6,500 in tuition cost for two years of full time study that you will never need to repay. You may also qualify for financial aid from ASU in addition to federal student aid and/or grants. Starbucks does not reimburse remaining tuition for freshman and sophomore students, but as soon as you become a junior you will automatically qualify for full junior/senior benefits for the rest of your credits through graduation. Do I need to take full time study to earn the full CAP Scholarship? No. You will receive the CAP Scholarship for part or full time course of study. Full time freshmen and sophomore students will receive approximately $6,500 over the course of two years of study; and junior and senior students will receive approximately $30,000 over the course of two years of study. The amount will vary depending on course load and major and you can work with your ASU financial aid counselor for information specific to your situation. How will I get reimbursed for expenses covered by the program for junior and senior student status? CAP Reimbursements will automatically show up in your paycheck. You don t have to take any further steps to make that happen. You will generally receive your payment within two paychecks after the grant is approved. We encourage you to apply these toward the following semester s tuition. Other than tuition coverage, what other expenses are covered under the program? The CAP Reimbursement grant covers tuition expenses, ASU s financial trust fee, Retention Coaching fee and ASU s technology fee. The $60 ASU application fee is waived for all U.S. benefits-eligible partners. The ASU Tuition Calculator is a great tool to help you plan. What should I plan to pay on my own? Text books, class fees, laptops, living expenses, etc. are not covered. Visit for list of partner discounts that are available to you on books, computers, and other items. Additionally ASU students can receive discounts on equipment through the ASU 1-to-1 program. https://gomobile.asu.edu/
4 What kind of time commitment would I have to make to take part in this program? Your ASU counselor can advise you on the time commitment you should expect to make for your course load. While there is no required course load, partners are encouraged to maintain at least a half time course load of 15 credit hours (approximately 5 courses) a year to stay on track towards graduation and for juniors and seniors to ensure their credit hours don t expire for reimbursement. What kind of support will I get to succeed at an online degree? This program is designed, above all, to get you to graduation. You ll have an ASU enrollment counselor to help you navigate the whole process of applying, choosing the right major, registering for classes, and figuring out financial aid and tuition financing. Once you start classes, you ll have an academic advisor and a personal success coach who can check in if you need it. And, you ll have the encouragement of Starbucks and your fellow partners all the way to graduation. How long would I have to stay with the company after I graduate? Unlike traditional employer education programs, with Starbucks College Achievement Plan there is no commitment to stay at Starbucks. What happens if I leave the company before I complete my degree? Once you leave employment with Starbucks, you will no longer receive the CAP Scholarship and will no longer be eligible for receipt of the CAP Reimbursement grant for any credits you may have completed towards your 21 credit milestone. You will not be required to reimburse Starbucks for any benefit, whether the CAP Scholarship or Reimbursement grant, received prior to separation from employment. What happens if I lose benefits eligibility while I m studying at ASU? Will I have to pay anything back? Can I stay enrolled? If you lose benefits eligibility while you are taking classes at ASU, you will continue to receive the CAP Scholarship for that semester. You will not have to pay back any previous CAP Reimbursement grants. You will not receive an CAP Scholarship for any future classes you register for in the following semester and beyond, and these classes cannot be counted towards your next CAP Reimbursement grant. Once you regain general benefits eligibility, your CAP benefits will automatically be reinstated for any new classes you register for. If you are a junior or senior, classes you have already registered and paid for while you were benefits eligible are still counted towards your next CAP Reimbursement grant. However, your CAP Reimbursement will not be paid until you regain benefits eligibility. What if I take a leave of absence from work? If you are on an approved leave of absence, you may continue to participate in the program as long as you continue to maintain Starbucks benefits eligibility.
5 What happens if I switch majors, fail a class, or drop a class? We know that occasionally students will need to switch majors, or will fail or drop a class. The priority is to keep you on track to graduation, and to give you the flexibility you need to do that. For juniors and seniors, the CAP Reimbursement grants will cover up to 75 college credits in total, including all classes paid in full that you fail, drop after the drop/add period, or change, provided you remain in academic good standing with ASU. How does earning a degree online compare to on-campus learning? ASU s degree program, delivered online is ranked in the top ten nationally by U.S. News & World Report, which combines the same academic rigor as their on-campus programs with the reach to support all of our partners nationally, and the flexibility to meet the needs of working professionals with busy lives. Admissions standards for Starbucks partners are the same as for all other applicants to ASU, whether for online or on-campus study. Will my online degree carry the same credentials as a traditional degree? Yes, you get a quality education and respected degree. At ASU, the diploma and transcript you earn will be identical to an on-campus degree they will simply say ASU. Courses are taught by the same award-winning faculty, but are re-designed especially for effective and rigorous online learning. Dr. Crow is changing the model for higher education and how success is measured. How will this benefit your partners? Dr. Crow s accomplishments are reflected in the swift ascent of ASU in several rankings, but his most impressive achievement might be the unique role he has played in reconsidering how to measure the performance of a university. While many American universities measure their success by who they exclude on Day 1, touting their low acceptance rates as proof of their value, Dr. Crow has flipped that model on its head. Emphasizing access and inclusion, he has made the quality of ASU s graduates and their preparedness for the workforce the standard by which to judge the university. In the process, he is attacking head-on the inequality inherent in our higher education system, and taking on a deeply entrenched status quo. Starbucks shares these values, and is proud to have him as our partner.
6 Does the documentary Ivory Tower accurately portray student life at ASU? It s no surprise that parties happen at college campuses across the nation. What is surprising is that ASU produces more Fulbright scholars than Harvard, Yale or Stanford. ASU offers academic excellence at scale, giving more students the opportunity to receive a world-class education without crippling debt. It is ranked the second most innovative school in the country by U.S. News & World Report, and ranks 5th in the nation in producing the best-qualified graduates. Starbucks is proud to partner with an academic institution that recognizes the need for innovation to offer more people a shot at a quality higher education. Will this partnership lessen the value of an ASU degree for other students? The standards for admission of Starbucks partners into the Starbucks College Achievement Plan, as well as the coursework within the program, will be identical to those for every other ASU student. We believe that the program will introduce ASU s groundbreaking commitment to access and excellence to a new cohort of students and their families. ASU s core values place an emphasis on access to a quality education, especially for those who have been traditionally excluded from the opportunity to attain a college degree. This partnership is another way that ASU is walking the walk to make a quality college education accessible and achievable to deserving students. Many people are successful without a college degree. Why is this program right for your partners and will it help them have a successful future? On average, bachelor s degree holders earn $1 million more over their lifetimes than high school graduates. Getting a degree is a choice we are very proud to afford our partners. By removing tuition costs as a barrier, and by creating a uniquely supportive environment for combining work and education, we hope to make it possible for thousands of Starbucks partners to complete a degree and build a brighter future for themselves, inside or outside of Starbucks.
7 Are you offering Starbucks College Achievement Plan in lieu of increasing wages? No. We currently pay above the minimum wage in every market we serve and are committed to doing more going forward. Wages are only one component of a total compensation approach. Starbucks continues to invest in its people whether they work part or full time with benefits that most other retailers don t offer such as affordable health care, company stock, a 401(k) savings plan with a 6 percent match in 2014, a free pound of coffee every week and a 30 percent discount on food, beverages and merchandise. And now, the Starbucks College Achievement Plan an unprecedented opportunity for a for our partners, to earn their college degree, at no cost to them, no strings attached is the latest example of Starbucks investing in its partners. Is this is just a tuition reimbursement program? This is a significantly richer benefit than tuition reimbursement and is designed to help our partners complete their bachelor s degree. The value of two years of full-time study under the Starbucks College Achievement Plan is $30,000-- far more than tuition reimbursement. Over 50 percent of college students in the U.S. don t finish their degrees due to economic or social pressures; we ve created a model in partnership with ASU that directly addresses the needs of working professionals to help them cross the finish line, no strings attached. Will partners have to give up a benefit to take advantage of Starbucks College Achievement Plan? No. We have a longstanding history of investing in our partners in innovative ways, and Starbucks College Achievement Plan is the new, next way we are enhancing the partner experience. A college education is a lifelong benefit our partners can take with them whether they pursue a career at Starbucks or wherever they aspire to go. What are the financial terms of the partnership? Financial terms for our partnership will not be disclosed. We aren t going to discuss finances but both parties have an interest in this partnership financial and otherwise. ASU s growth goals for online learning as established by ABOR are to enroll 100,000 online degree seeking students. This is a step in doing so.
8 What is the cost to Starbucks to offer this program? How will it impact the bottom line and offer value to shareholders? Doing well by our partners has proven to be good for business. It reduces turnover, improves our store experience and attracts the best talent. We are always looking for new and innovative ways to support our partners and position them for future success, including tuition reimbursement. Back in 1988, we offered affordable health care and 401k matching, and we later offered stock to our partners. Our performance since introducing those pathbreaking benefits speaks to the wisdom of this approach. By creating a pathway to higher education for our partners, we re helping to shape some of the best-qualified workers in America. In addition to receiving an excellent education at ASU, they will simultaneously get training in business, leadership, and customer service from the best company in the service industry, and proving their grit as working students. We believe that when they graduate, they will be among the most valued and well-prepared workers and citizens out there, and we hope they will have a lifelong positive relationship with Starbucks. Are you talking to other companies? We have a constant desire to find new ways to offer qualified students the opportunity to receive a quality higher education and will continue to seek out and evaluate partnerships with like-minded companies who are committed to the on-going education of their employees. How do we evaluate companies we work with? We will evaluate their mission and core values as a company, the brand reputation and will it help elevate the prestige of the ASU brand. In addition, we seek to understand their commitment to their employees and how engaged are their employees to the company. How many students can the infrastructure support? Both in terms of technology and offline support? Our infrastructure is designed for scale and can handle much higher demand than currently exists. We will proactively build out the infrastructure to meet any demand. What does this mean for current ASU students who work for Starbucks? Current ASU students who are studying on campus and who are also benefit eligible Starbucks partners should speak to their academic advisor to determine steps to transfer to the online College Achievement Plan.
9 Are the admission requirements different for Starbucks partners who apply to ASU? No. The Starbucks partners will be held to the same admissions requirements as other students applying to ASU. Will this de-value my ASU degree? No. Whether studying on campus or online, your degree is from ASU. Your ASU degree will continue to be viewed in high regard because of the quality of the education you receive at ASU from our top ranked faculty. ASU student who study online are fullfledged Sun Devils and your diploma and transcripts from ASU will look the same whether you take course in a classroom or online format. There is no indication on your diploma or transcript that your studies were completed online. Does this benefit apply to Employees at the Starbucks stores on campus? The Starbucks College Achievement Plan is designed specifically for eligible Starbucks partners of company owned stores. Some Starbucks stores, including the ones on ASU campuses, are operated by licensed franchisees and the employees of those locations are employees of the operator, not Starbucks, and therefore are not eligible for this program. Are there going to be additional demands on the faculty to service these new students? No. ASUs instructional models include scale and ensuring we have needed faculty and faculty support. Will there be new faculty hired to teach these new students? New faculty will be hired as needed by each department to maintain an average faculty student ratio of 1:24. Will there be special courses developed for the Starbucks partners? Participating CAP students will be offered the same curricula as ASU online students, which is the same rigorous content taught on campus by the same top ranked faculty. Will this impact my ability to sign up for the classes I want? No. As a standard practice with our online classes, there are no limitations on class enrollment. If we have a high demand for specific classes we will open up another class taught by another top ranked faculty member. How many new students are you anticipating from this partnership? Through this partnership, we are anticipating up to four thousand students in the first year and as many current and future partners that are looking to obtain a bachelors degree in the coming years.
10 What is the financial benefit to ASU from this program? Financial terms for our partnership will not be disclosed. We aren t going to discuss finances but both parties have an interest in this partnership financial and otherwise. ASU s growth goals for online learning as established by ABOR are to enroll 100,000 online degree seeking students. This is a step in doing so. What percentage of students will be from outside Arizona? While educating the qualified students of Arizona is of upmost importance to us, we feel the opportunity to provide access to a large group of hard-working Starbucks partners throughout the country, is very important as well. Will this close doors to qualified Arizona students? Absolutely not. As proven by our track record, we will continue to focus our efforts on providing every opportunity for qualified Arizona students to attend ASU and succeed. Since this program is online and thus not limited by physical facilities, there is plenty of room for everyone. Are there Arizona tax dollars being committed to funding the education of out of state students? Is there a commitment to diversity within the admissions of the Starbucks College Achievement Plan? ASU Online specific: Can you tell me about the classroom? ASU instructors and faculty use a variety of methods to share materials, have students interact, and to be able to monitor student s progress throughout the course. One of the benefits of completing your degree online is flexibility. A few courses may require specific log-on times for certain activities or assignments, but most courses have assignments and due dates; when the student logs on to complete them is determined by the student. Some assignments and tests may only be available for a limited time (such as a 48-hour period), so they must be completed at some point within the designed time. How long does it take a typical student learning online to graduate? The average ASU Online student who graduates from one of our undergraduate programs spends 5 terms with ASU online before graduating
11 What are ASU online s graduation rates? 10% of ASUs online degree seeking students graduate every semester. Additionally, 40% of students graduate in under 3 years. How many students are currently enrolled in ASU s online programs? ASU currently has 10,000 undergraduate and graduate students earning their degree online. What are the fastest growing undergraduate programs offered online at ASU? From Spring 2012 to Spring 2013 the fastest growing programs are: BSE in Electrical Engineering (146% growth) BA in Mass Communications and Media Studies (88% growth) BA in Organizational Leadership (67% growth) BAS in Applied Science (Internet and Web Development) (36% growth) BS in Nutrition (Nutrition Communication) (34% growth) What are the top 5 programs (by headcount) offered online at ASU? BA in Psychology (872 students) Nursing BSN (706 students) BS in Criminal Justice and Criminology (601 students) BS in Communications (456 students) BLS in Liberal Studies (455 students) What does the online student body currently look like? There are currently more than 10,000 ASU Online students enrolled in degree programs About 3,000 students have graduated from ASU Online since % of ASU Online students are female and 37% male 46% of ASU Online students reside in AZ followed by CA, which makes up 25% 56% of ASU Online students are between years old Class standings: 4% Freshman, 11% Sophomores, 40% Juniors and 45% Seniors How much of a discount did ASU give Starbucks? Both parties have a commitment to the success of this program. ASU gives scholarships all the time to deserving students and we will do so with these students as well. SBUX also has a vested interest in their partner success, as ASU does for it s students.
12 What do partners need to do in order to participate? ASU has created an application that partners can access to explore degree programs, understand the rigor of online learning to consider how they would like to approach their education. The application process is the same and once admitted, partners are ASU students. Is ASU doing anything special for this set of students that isn t available to the typical ASU student? Innovations that we have created or improved upon to assist partners in their student experience are available to all students. We find better ways, effective efficient ways to deliver materials and are now available -examples: we created a tremendous application that was previously done with human interaction and provided a better solution in an app to welcome partners so they are familiar with partners and more efficiencies when we do talk to them and provide a better student experience something to use moving forward Students used to be presented with only one option, now students can vary/customize their view to better - best Customized view of the students FA package now student have the opportunity to view their FA on an incremental basis What are the financial considerations? -Partners to earn a degree -There were efficiencies that were gained as a part of this relationship. Universities as a part of their business have to gain more students. As a result of this partnership, SBUX is providing students that we do How is this going to benefit Arizona? -SBUX is one of the largest employers in AZ. (March partners in AZ alone* likely will not want to disclose) -Will broaden the geographic diversity of students in the online program so now students will be able to interact with more than students in AZ and CA (our largest online student populations) -Provisions for all students are better student services for online and on ground students admissions, FA etc. have all been improved as a result of this - AZ should be confident that when they come to ASUO they are accessing one of the premier online institutions in the country and it is through relationships
13 Why focus on students in other parts of the country rather than AZ -Online learning is about scale, the larger we get, the better we serve students -We have a very small (tiny) out of state population compared to other competitors (for profits) in the state. You are a public school supported by public funds how can you partner with a multibillion dollar company, will you become Starbucks U? For profit schools are funded 90% by federal grants, we receive a % from the state but generate the rest of the revenue ourselves. These prospective students are no different than any other qualified prospective student, looking for the opportunity for a quality education from a world class institution. Why would Rover want their employees to earn a discount degree (speaking of quality of online learning)? What are the alternatives to have quality at scale? ASU is doing it best and innovating in this space with award winning faculty and quality course design. The department of education did a meta-analysis in 2009, that, online learning performed at or better than face to face. Aren t you concerned that you re focusing too much on online and taking away from the campus experience? Quality programs and faculty whether online or on ground. Online is merely a modality of course delivery. We have great retention as a university. Students earn the same degree regardless of online or on ground. How much money has ASU spent on this program? What is the annual cost of the program? ASU is focused on quality programs at scale. We ensure we can deliver the same quality experience to all students, focusing on the same 1:24 student teacher ratio, quality enrollment services, coaching and advising. The cost is no different than how we look to grow our programs every term.
14 What will this do to ASU retention rates? The Program promotes completion just based on how they have structured the benefit. They will be on the hook until they complete a certain number of credits and then SBUX will reimburse them. All aspects of the program, from the SBUX reimbursement to the support services from ASU, is geared toward graduation. Final information on ASU online: About Arizona State University (ASU) Online ASU Online is headquartered at ASU s SkySong Campus in Scottsdale, Arizona and offers more than 70 undergraduate and graduate degree programs entirely online. ASU s online program began in the spring of 2009 and holds the same accreditation as the university s traditional program. ASU students who learn online connect with the full university experience: interaction with internationally recognized faculty, access to collections from ASU's eight award-winning libraries, an alumni network tens of thousands of members strong and membership in a community of thousands of students pursuing their degrees. ASU Online offers its students and faculty access to more than 100 education technology tools, which were developed by more than 50 different companies. Ranked 9 th on the 2014 "Best Online Programs list U.S. News & World Report Ranked 1 st in the nation for online student services and technology U.S. News & World Report Ranked 4 th in the nation for Best Online Programs for Veterans U.S. News & World Report Other thoughts: National Center for Education Statistics 1. Average Graduation Rates: Quote: About 59 percent of first-time, full-time students who began seeking a bachelor s degree at a 4-year institution in fall 2006 completed that degree within 6 years. The graduation rate for females (61 percent) was higher than the rate for males (56 percent). 2. Average Costs: The average net price (total cost minus grants) of attendance in for firsttime, full-time students was $12,410 at public, in-state 4-year institutions, $21,330 at private for-profit 4-year institutions, and $23,540 at private nonprofit 4-year institutions. The percentage of first-time, full-time undergraduate students at 4-year degreegranting institutions receiving financial aid increased from 75 percent in to 85 percent in