Banner Health Tuition Reimbursement: Online Degrees for Banner Health Employees

Banner Health operates one of the broadest education benefits portfolios in U.S. health care. Most large hospital systems offer a single tuition reimbursement program tied to IRS Section 127 limits and a small list of preferred school partners. Banner has built something more layered: a flagship Education Achievement Program that fully funds RN-to-BSN tuition for selected nurses at Arizona State University, plus discount-rate partnerships with five additional online universities, plus the standard tuition reimbursement benefit available to all eligible employees. Understanding which benefit applies to your situation is the difference between paying out of pocket for a degree and paying nothing.

This guide covers what Banner Health offers across all of its education partnerships, who qualifies for each, how the benefits stack with federal financial aid, and which online degree paths produce the best return on the time invested for Banner employees in nursing, allied health, administrative, and clinical support roles.

Why Banner Health Invests Heavily in Employee Education

Banner’s education benefits portfolio is unusually substantial for a healthcare system, and the reason has to do with the specific economics of nursing labor markets. The American Association of Colleges of Nursing has documented that hospital units staffed with higher percentages of BSN-prepared nurses produce measurably better patient outcomes, including lower mortality and reduced failure-to-rescue rates. A 10-percentage-point increase in BSN-prepared nursing staff is associated with roughly a 5% reduction in those adverse outcomes.

Banner Health operates 30 acute-care hospitals and faces ongoing pressure from the Magnet Recognition Program and from quality-of-care benchmarks that effectively require an increasing share of BSN-prepared nurses on staff. Recruiting BSN nurses from the external labor market is expensive and slow. Funding BSN education for existing RN employees is operationally faster, retention-positive, and more cost-effective per nurse credentialed. The Banner Education Achievement Program at ASU was launched in 2021 specifically to address this workforce challenge, and the broader portfolio of education partnerships extends similar logic across non-nursing roles.

For employees, this means Banner has direct organizational incentive to fund your degree. The benefits are not a courtesy; they are workforce strategy. Employees who understand the available programs and apply them strategically can complete substantial credentials at little to no out-of-pocket cost.

Standard Tuition Reimbursement (Available to All Eligible Employees)

Banner Health’s foundational education benefit is its standard tuition reimbursement program, which operates on a structure consistent with IRS Section 127 employer-provided educational assistance rules. Under these rules, employers can provide up to $5,250 per year in tuition assistance that is excluded from the employee’s taxable income, regardless of whether the coursework is job-related. Most large healthcare systems align their internal tuition programs to this federal cap as the maximum annual benefit per employee.

Banner does not publicly publish the exact annual dollar limit of its standard tuition reimbursement program, but the structure follows the typical large-employer model. Eligible employees submit pre-approval requests for coursework toward an approved degree, complete the coursework with a minimum grade (typically C or better for undergraduate, B or better for graduate), and receive reimbursement after grade verification. Reimbursement covers tuition and required fees but typically excludes books, supplies, and incidental costs.

Eligibility for standard tuition reimbursement

Standard tuition reimbursement at Banner is available to benefits-eligible full-time and part-time employees who have completed an initial waiting period (typically 90 to 180 days, depending on role classification). Employees must be in good standing, meet minimum scheduled hours requirements, and complete the pre-approval process before enrolling in any course intended for reimbursement. Coursework must be at a regionally accredited institution and must support either current job performance or eligible career advancement within Banner.

Some Banner facilities offer enhanced tuition support beyond the system-wide minimum, particularly for nursing roles where local recruiting pressure is highest. Employees should confirm specific benefit terms with their facility’s HR department or through the Banner Benefits Resource Center, since program details vary by location and job classification.

How standard reimbursement stacks with partner programs

The Banner education partnerships described in the next sections are designed to stack with standard tuition reimbursement rather than replace it. An employee enrolled in University of Phoenix at the Banner-discounted $5,000 annual cap, for example, can use Banner’s standard tuition reimbursement to cover that $5,000, producing zero out-of-pocket tuition cost for an entire year of bachelor’s coursework. The same stacking logic applies to UAGC, UMGC, and other partner programs, with the practical effect that many Banner employees pay nothing out of pocket for partner-program degrees.

The Flagship: Banner Education Achievement Program at ASU

The Banner Education Achievement Program, launched in October 2021 in partnership with InStride and Arizona State University, is the most generous education benefit Banner offers. Selected RN employees receive 100% tuition coverage for ASU’s online RN-to-BSN program, with no out-of-pocket tuition cost to the employee. This is materially different from the standard tuition reimbursement model in two ways. The benefit covers the full cost of the program rather than capping at $5,250 per year, and the funding is paid up-front rather than reimbursed after completion.

Eligibility for the ASU program

• Active RN employment at Banner Health (full-time or qualifying part-time)
• Current unencumbered RN license in the state of practice
• Associate degree in nursing (ADN) or nursing diploma from an accredited program
• Selection through the program’s competitive application process; not all applicants are accepted
• Commitment to remain employed at Banner during the program (specific terms vary)

Banner does not publish the total number of nurses funded annually through the program, but the application process is competitive and selective rather than open enrollment. RNs interested in the program should apply early in the application cycle and prepare materials that demonstrate sustained Banner employment, clinical performance, and clear career goals.

What the ASU RN-to-BSN program covers

The ASU online RN-to-BSN is delivered through ASU’s Edson College of Nursing and Health Innovation. Coursework is fully online and asynchronous, designed for working RNs maintaining clinical schedules. The program typically requires 30 to 36 nursing credits beyond the prior nursing education, with program length varying based on transfer credit and course load. ASU is regionally accredited by the Higher Learning Commission, and the BSN program holds CCNE accreditation, which is the gold-standard programmatic accreditation for nursing programs.

Selected employees receive coverage for all direct tuition costs. Course materials and incidental fees may not be covered and should be confirmed before enrollment. The ASU degree credentials are identical to those received by ASU campus students, with no notation of online format or employer-funded status on the diploma or transcript.

Partner Discount Programs (Stackable with Standard Reimbursement)

Beyond the ASU flagship program, Banner has established discount-rate partnerships with five additional online universities. These partnerships do not provide full tuition coverage like the ASU program, but they provide reduced per-credit rates that, when combined with Banner’s standard tuition reimbursement and federal financial aid, can produce zero or near-zero out-of-pocket tuition for employees. Each partnership has different program offerings, discount structures, and eligibility rules.

University of Phoenix

The University of Phoenix alliance is the most comprehensively documented Banner partnership outside the ASU program. Banner employees pay $5,000 per year in tuition, with University of Phoenix waiving the standard resource fees that cover ebooks and course materials. The $5,000 cap covers up to eight courses per year for bachelor’s degrees, five courses per year for master’s degrees, or three courses per year for doctoral degrees. Employees who exceed those course caps pay the standard university tuition rate for additional courses.

University of Phoenix is regionally accredited by the Higher Learning Commission and offers a broad catalog including business administration, healthcare administration, nursing (RN-to-BSN, MSN), criminal justice, education, IT, and counseling. The combination of the Banner discount and standard tuition reimbursement can produce zero out-of-pocket tuition for many employees, particularly those pursuing healthcare-administration or nursing-leadership credentials. Books and certain administrative fees remain employee responsibility.

University of Arizona Global Campus (UAGC)

UAGC, formerly Ashford University before its 2020 acquisition by the University of Arizona system, offers the broadest set of programs available to Banner employees and their families at the lowest published partner rate. The standard Banner discount is $306 per credit for associate and bachelor’s programs. Beyond this base discount, UAGC selects five Banner Health employees per year for a full scholarship covering 100% of program costs for the BSN degree. The scholarship application is competitive and separate from standard discount enrollment.

UAGC is accredited by WSCUC (the Western Association of Schools and Colleges Senior College and University Commission). The institution has a complicated history that prospective students should understand, including its prior identity as Ashford University, federal regulatory actions during the Ashford era, and its 2020 transition to nonprofit status under University of Arizona system ownership. WSCUC accreditation is current and meets federal financial aid requirements, but employees considering UAGC should research the institution’s history and read recent program reviews before committing to a multi-year degree program.

University of Maryland Global Campus (UMGC)

UMGC offers a 25% discount on out-of-state tuition rates for Banner employees and their immediate family members, plus the standard $50 application fee waiver. The discount applies to most UMGC undergraduate and graduate programs, with several notable exceptions. The MBA, Master of Science in data analytics, multiple cybersecurity programs, all doctoral programs, and select legacy programs are excluded from the discount. Employees considering these excluded programs pay the full out-of-state rate.

UMGC is regionally accredited by the Middle States Commission on Higher Education and is one of the largest online public universities in the United States, with a particular strength serving working adults, military personnel, and first-generation college students. The 25% discount produces meaningful savings on UMGC’s already moderate out-of-state pricing, particularly for IT, business, education, and healthcare administration programs.

University of Arizona Online

The University of Arizona’s main online programs (distinct from UAGC) offer Banner employees an application fee waiver and a tuition reduction. UA Online delivers the same University of Arizona degrees as on-campus students receive, with no notation of online format on the diploma. The benefit extends to spouses, domestic partners, and dependents.

UA Online programs include Bachelor’s in Nursing (RN-to-BSN), Bachelor’s in Healthcare Administration, MS in Healthcare Administration, MBA, MS in Public Health, MS in Cybersecurity, and a number of other graduate degrees. The Doctor of Nursing Practice with AGACNP (Adult-Gerontology Acute Care Nurse Practitioner) specialization is particularly relevant for Banner RNs pursuing advanced practice credentials. The DNP-AGACNP requires hybrid format with on-campus intensives, which working Banner employees in Arizona can access more easily than employees in Banner’s other states.

Carrington College

Carrington College offers Banner Health employees a participant discount on its online RN-to-BSN program. Carrington is accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC), which is a national accreditor rather than regional. The accreditation distinction is meaningful for prospective students. Regional accreditation (held by the other Banner partners) supports broader credit transfer and graduate school admissions than national accreditation. Banner RNs evaluating BSN options should generally prioritize the regionally accredited partners (ASU, UAGC, University of Phoenix, UMGC, UA Online) over Carrington for long-term educational mobility.

How to Stack Banner Benefits with Federal Financial Aid

The single most important strategic insight for Banner employees pursuing online education is that the partner-program discounts and the standard tuition reimbursement can both stack with federal financial aid, often producing zero out-of-pocket cost. Many employees do not realize this and pay tuition out of pocket when they could be receiving full coverage.

How the stack works

Federal financial aid (Pell Grants for undergraduate students, Stafford Subsidized and Unsubsidized Loans, Graduate PLUS Loans for graduate students) is awarded based on financial need calculated through the FAFSA. Pell Grants for the 2025-2026 academic year cover up to approximately $7,395 per year for the most financially needy undergraduate students. Federal student loans are available to a much broader pool of applicants regardless of need.

When a Banner employee enrolls in a partner program, the partner’s billing system applies the discounted rate first, then accepts payment from any combination of federal aid, Banner tuition reimbursement, and out-of-pocket payment. For employees whose Pell Grant award plus Banner tuition reimbursement exceeds the partner-discounted tuition, the full tuition is covered with no out-of-pocket cost. The financial-aid-eligible portion of the FAFSA award supports living expenses, books, and other costs not covered by employer benefits.

Banner employees should complete the FAFSA at fafsa.gov early in the academic year to determine federal aid eligibility. Our FAFSA for online students guide walks through the federal aid process for working adults pursuing online degrees, including how to handle the income reporting that working employees often find confusing.

Common stacking scenarios

A Banner medical assistant earning $42,000 annually who enrolls at University of Phoenix at the Banner $5,000 cap, with a Pell Grant award of approximately $4,500 (typical for this income level) plus Banner tuition reimbursement of $5,000, has total aid of approximately $9,500 against $5,000 in tuition. The remaining $4,500 supports books, fees, and living expenses, producing not just zero out-of-pocket tuition but net financial benefit.

A Banner RN earning $78,000 annually who is selected for the ASU Education Achievement Program receives 100% tuition coverage with no income-based reduction. Federal aid eligibility at this income level produces minimal Pell Grant award but full federal loan eligibility. Combined with the ASU full tuition coverage, the RN can use federal loans (or choose not to) to support living expenses during accelerated coursework periods.

A Banner MSN-prepared nurse practitioner pursuing a doctoral degree at University of Phoenix faces the doctoral course cap of three courses per year at the $5,000 Banner discount. Federal Graduate PLUS loans cover any remaining tuition above the discount, and the full doctoral program completion timeline runs longer than for bachelor’s pursuits. Banner employees considering doctoral programs should carefully model the multi-year cost projection before committing.

For broader context on graduate program borrowing decisions, our guide to how much you should borrow for an online degree walks through the borrowing thresholds that apply across degree levels.

Best Degree Paths by Banner Health Role

RNs pursuing BSN

Apply for the Banner Education Achievement Program at ASU first. The 100% tuition coverage and the strength of the ASU credential make this the highest-value option available. If not selected, UAGC’s BSN scholarship (5 employees annually at 100% coverage) is the next-best option. If neither full-coverage program admits the applicant, the discount partnerships at University of Phoenix, UMGC, UA Online, or Carrington produce manageable out-of-pocket costs when combined with Banner standard reimbursement and federal aid. Our RN-to-BSN online guide covers what to expect from the bridge programs across all of these partners.

ADN-prepared RNs and pre-licensure students

Pre-licensure students are not yet RNs and therefore do not qualify for Banner education benefits. Banner offers separate clinical training partnerships through nursing schools, but tuition assistance is generally tied to current employment. Our CNA-to-RN online guide walks through pre-licensure pathway options including ADN-completion routes that can position pre-licensure students to qualify for Banner education benefits after RN licensure.

Allied health professionals (radiology techs, respiratory therapists, lab techs, surgical techs)

Allied health roles benefit most from the standard tuition reimbursement combined with University of Phoenix or UA Online for bachelor’s completion in healthcare administration, health information management, or applied health sciences. The University of Phoenix BSHA (Bachelor of Science in Health Administration) and UA Online’s Care, Health & Society BS are particularly relevant for allied health professionals seeking management or administrative advancement.

Patient access, registration, and revenue cycle staff

These administrative roles fit well with University of Phoenix or UMGC bachelor’s programs in healthcare administration, business administration, or health information management. The combination of Banner tuition reimbursement, partner discount, and Pell Grant eligibility (common at the income range typical for these roles) often produces zero out-of-pocket tuition. Career advancement into management within Banner generally requires bachelor’s-level credentials, and these programs are explicitly aligned to that advancement path.

IT and informatics professionals

Banner IT staff seeking advancement into healthcare informatics, cybersecurity, or data analytics should evaluate UA Online’s MS in Cybersecurity, UMGC’s broader IT graduate catalog (note the MBA and select cyber programs are excluded from the Banner UMGC discount), or University of Phoenix’s MS in Information Systems. Healthcare informatics specifically is a high-demand specialization within Banner, and informatics roles typically require either nursing background plus IT credentials or IT background plus healthcare familiarity.

Managers and aspiring managers

Banner managers and aspiring managers at any career level benefit from MBA, MS in Healthcare Administration, or related leadership credentials. UA Online’s online MBA, University of Phoenix MBA, and UAGC’s master’s programs are all available with Banner discounts. Note that UMGC’s MBA and select graduate programs are excluded from the Banner discount, so prospective MBA students should focus on the other partners. Our Healthcare Administration Degrees Online guide covers the broader landscape of online healthcare administration programs.

Application Process for Banner Education Benefits

Step 1: Determine eligibility

Confirm employment status, hours worked per week, length of service, and good-standing status. Most Banner education benefits require benefits-eligible employment plus a minimum service period (typically 90 to 180 days, varying by role). Verify with your HR contact or the Banner Benefits Resource Center (833-849-9825) before assuming eligibility.

Step 2: Select a degree path and partner

Determine the credential and field that aligns with your career goals at Banner. Match the credential to the appropriate partner program from the list above. RNs targeting BSN should apply to the ASU Education Achievement Program first. Other employees should compare partner program offerings, costs after discount, and accreditation against career goals.

Step 3: Apply to both Banner and the partner program

For the ASU Education Achievement Program, complete the program-specific application during the active application cycle. For partner discount programs, apply directly to the partner university and complete the Banner verification form to access the discounted rate. Standard tuition reimbursement requires pre-approval through Banner’s HR system before enrolling in any course.

Step 4: Complete the FAFSA

Regardless of which Banner benefit applies, complete the FAFSA at fafsa.gov to determine federal aid eligibility. Use the partner university’s federal school code (available on the partner’s financial aid page) when submitting the FAFSA. Pell Grants and federal loans stack with Banner benefits at most partners, often producing zero out-of-pocket cost.

Step 5: Maintain eligibility throughout the program

All Banner education benefits require continued employment, minimum scheduled hours, and minimum academic performance (typically C or better for undergraduate, B or better for graduate). Some programs include service commitments after completion, particularly the ASU Education Achievement Program. Read the specific terms before committing, since failure to meet requirements can result in repayment obligations.

Tax Considerations

Banner Health’s standard tuition reimbursement program is structured to qualify for the federal tax exclusion under IRS Publication 970 / Section 127, which allows up to $5,250 per year in employer-provided educational assistance to be excluded from the employee’s taxable income. Reimbursement amounts above $5,250 in a calendar year may be treated as taxable wages and reported on the employee’s W-2. The threshold applies regardless of whether the coursework is job-related, which is more generous than the older job-related-coursework rule.

The ASU Education Achievement Program’s full tuition coverage may exceed $5,250 in some calendar years. Banner manages the tax treatment internally, but employees should confirm with HR how the benefit is reported on their W-2 to avoid surprises during tax filing. Federal Pell Grants and other need-based federal aid are not taxable income, but federal loans do not affect taxable income either way (they must be repaid, but they are not taxed when received). Tax law for educational assistance is complex, and employees with significant education benefits should consider consulting a tax professional.

Where Banner Benefits Fall Short

Banner Health’s education benefits portfolio is among the most comprehensive in U.S. healthcare, but several limitations are worth understanding before committing to a program.

Selectivity of full-coverage programs. The ASU Education Achievement Program funds a limited number of nurses annually, and the UAGC BSN scholarship funds five employees per year. RNs who do not gain selection cannot rely on these programs and should plan for partner-discount alternatives that produce out-of-pocket costs.

Variation across facilities. Banner Health operates 30 hospitals and many outpatient facilities, and education benefit terms vary by facility and role classification. Employees in some locations report stronger tuition support than employees in others. The system-wide framework establishes minimums, but specific benefit terms should always be confirmed with the local HR contact.

Service commitment requirements. Some Banner education benefits include service commitments requiring continued Banner employment for a defined period after completion, with repayment obligations if the employee leaves before fulfilling the commitment. These terms vary by program and should be read carefully before committing. Employees considering departure from Banner during or shortly after a Banner-funded program should model the repayment obligation against the value of the credential and the new opportunity.

Partner program quality variation. The Banner partner list spans regionally accredited public universities (ASU, UA Online, UMGC), regionally accredited but lower-tier private universities (University of Phoenix, UAGC), and a nationally accredited career college (Carrington). Credential value, transfer credit acceptance, and graduate school admissions consideration vary substantially across these tiers. RNs and other employees should weigh credential value alongside out-of-pocket cost rather than choosing the cheapest option by default.

Graduate-level coverage caps. The University of Phoenix doctoral cap of three courses per year produces a slow pace toward doctoral completion, and UMGC excludes its MBA and several graduate programs from the Banner discount entirely. Employees pursuing graduate or doctoral credentials should carefully model multi-year costs and timelines before committing.

Family member access is partial. Spouses and dependents qualify for partner discounts at UAGC, UMGC, and UA Online but not for the standard tuition reimbursement program (which is employee-only). Family members pursuing degrees at non-partner institutions receive no Banner benefit.

Should You Use Banner Health Education Benefits?

For Banner Health employees committed to an extended career with the organization, the answer is almost always yes. The combination of standard tuition reimbursement, partner discounts, and federal aid stacking produces low or zero out-of-pocket cost for most employees pursuing degrees aligned with career goals at Banner. The ASU Education Achievement Program specifically produces an outcome that few other employer education benefits in U.S. healthcare can match. Selected RN employees receive a fully-funded BSN at one of the most-recognized nursing schools in the country, with no out-of-pocket tuition obligation.

The strategic question for any individual employee is which combination of programs produces the best fit for career goals, current credential level, and life circumstances. RNs targeting BSN should apply to ASU Education Achievement first. Other employees should match degree goals to partner offerings using the table above. All employees should complete the FAFSA before assuming any out-of-pocket cost. For broader context on adult learner online degree decisions across employer benefit scenarios, the Complete Guide to Earning an Accredited Online Degree as an Adult Learner walks through the questions every working adult should ask before enrolling.

Banner employees considering departure from the organization should weigh service commitment terms against the value of staying long enough to complete the program. Banner employees uncertain about their long-term commitment to the organization should pursue programs without service commitments, even at higher out-of-pocket cost, to preserve career mobility.

If you are evaluating online programs against Banner education benefits and want to compare across institutions, our online program explorer lets you filter by program type, accreditation, format, and other priorities. For Banner-specific benefit questions, contact the Banner Benefits Resource Center at 833-849-9825 or review the official Banner Health benefits portal. Our Complete Guide to Earning an Accredited Online Degree as an Adult Learner provides additional context on how to evaluate online programs against employer-provided benefits.

Related Reading

• Accredited Online Nursing Programs for Working Adults. Broader survey of online nursing options for working RNs and pre-licensure students.
• Healthcare Administration Degrees Online. Online HCA program guide for Banner employees pursuing management roles.
• Returning to College After 30. Adult learner framework that applies across employer-funded and self-funded education paths.
• Ascension Tuition Reimbursement. Peer healthcare employer education benefits for comparison.
• HCA Healthcare Tuition Reimbursement. Vertically-integrated healthcare employer benefits for comparison.

Find an Online Program That Fits Your Banner Benefits

Banner Health’s education benefits open access to a wide range of accredited online programs. Our online program explorer helps you compare accredited programs by field, format, and other priorities so you can match your degree goals to the Banner partnership that produces the lowest cost. Start your search to see which programs align with your career trajectory at Banner.