UC Davis Health Tuition Reimbursement: Online Degrees for UC Davis Health Employees

April 5, 2026

UC Davis Health employees have access to four distinct education benefit programs, each designed for a different stage of credential building. The headline program is STEP, the Staff Tuition for Education Program, which reimburses up to $4,000 per calendar year and $16,000 lifetime for UCDH employees pursuing degree programs or skilled allied health certificates. Alongside STEP runs the UC Employee-Student Reduced Fee Program, which cuts University Registration and Educational Fees by two-thirds for employees enrolled in regular UC Davis courses. UC Davis Continuing and Professional Education offers 20 to 40 percent discounts to employees, and the Graduate School of Management runs a Staff MBA Scholarship covering up to 25 percent of fees for the part-time MBA. Each program has its own scope, eligibility window, and stacking logic, and using them effectively requires understanding which one applies to which kind of coursework.

This guide walks through all four programs, the workforce context (UC Davis Health is the academic medical center anchored by UC Davis Medical Center in Sacramento, a Level I Trauma Center, U.S. News-ranked Sacramento’s #1 hospital, and the primary teaching hospital for the UC Davis School of Medicine; the system generates more than $3.4 billion in annual economic output and supports more than 20,000 jobs across Northern California; UC Davis Medical Center ranks among the nation’s best in six adult specialties and three pediatric specialties; clinics extend from Auburn through Roseville and Elk Grove to Davis and Folsom plus the 52-bed UC Davis Rehabilitation Hospital), the online degree paths that align with the system’s clinical and administrative workforce, and how to combine the four programs with federal Pell Grants for the most efficient cost structure.

Quick Facts on UC Davis Health Education Benefits

Quick Facts	UC Davis Health Education Benefits
Employer	UC Davis Health; academic medical center within the University of California system; headquartered in Sacramento; primary teaching hospital for UC Davis School of Medicine; Level I Trauma Center; U.S. News-ranked Sacramento’s #1 hospital
Workforce	Supports more than 20,000 jobs in Northern California; clinical and research staff plus a network of outpatient clinics from Auburn to Folsom; flagship UC Davis Medical Center plus the 52-bed UC Davis Rehabilitation Hospital
STEP (Staff Tuition for Education Program)	UCDH-specific reimbursement program; $4,000 per calendar year, $16,000 lifetime cap; covers tuition and materials/books for Associate, Bachelor’s, Master’s, and PhD degree programs plus accredited vocational and skilled allied health certificate programs; 60-day post-coursework submission deadline; administered through the Tuition.io portal
UC Employee-Student Reduced Fee Program	Two-thirds reduction of University Registration Fee and Educational Fee for employees enrolled in regular session UC Davis courses up to nine units or three courses per quarter or semester; does not apply to most professional schools (Vet Med, Graduate School of Management, School of Nursing) or to UC Davis CPE
UC Davis Continuing and Professional Education (CPE)	20 to 40 percent employee discounts on most certificates and courses, including the UC Davis Open Campus program; a separate track from STEP and the Reduced Fee Program
Graduate School of Management Staff MBA Scholarship	Up to 25 percent of fees covered for eligible staff pursuing the part-time MBA at the Sacramento or Bay Area program locations
Tax treatment	STEP reimbursements may be taxable per IRS guidelines and UC policy; non-taxable reimbursements are paid via check, taxable reimbursements are added to paycheck as imputed income; Section 127 of the IRS Code allows up to $5,250 per year tax-free in employer-provided education assistance
SNHU partnership	UC Davis Health employees and immediate family receive a 10% tuition discount on SNHU’s online undergraduate and graduate programs through SNHU’s workforce partnership

STEP: The Headline UCDH Reimbursement Program

The Staff Tuition for Education Program is the centerpiece of UC Davis Health’s education benefit. STEP covers up to $4,000 per calendar year and $16,000 across an employee’s career, which is five years’ worth of maximum annual reimbursement before hitting the lifetime cap. Reimbursable expenses include both tuition and materials/books, which is broader than the tuition-only structure typical of most healthcare employer programs. STEP applies to matriculated degree programs at the Associate, Bachelor’s, Master’s, and PhD level, plus accredited vocational and specialized certificate programs that prepare candidates for skilled allied health positions used at UC Davis Health. Full program guidelines and eligibility criteria are available on the STEP page within UC Davis HR.

Allied health certificate eligibility is broader than at most employers

STEP’s coverage of skilled allied health vocational and specialized certificate programs is unusually broad. Most employer programs reimburse degree coursework only or restrict certificate reimbursement to a short list of clinical credentials. STEP explicitly funds vocational and specialized certificate paths that prepare candidates for allied health roles at UC Davis Health, including sterile processing, surgical technology, respiratory therapy, sonography, radiologic technology, medical laboratory technician, pharmacy technician, and similar credentials. For UCDH employees considering a career pivot from non-clinical to clinical work, this scope means the path is funded rather than self-paid.

60-day submission deadline is strict

STEP’s procedural requirement worth flagging: requests submitted on day 61 or later after coursework completion are not eligible for reimbursement. This is a hard cutoff. Employees should set a calendar reminder for two weeks after a term ends rather than relying on memory or year-end submission. The portal handling submissions is Tuition.io, and proof of grade plus expense documentation are required. The 60-day window is tighter than the typical year-end submission window most healthcare employers use, so the planning shifts from annual to quarterly.

STEP’s tax treatment depends on coursework type

Reimbursements may be taxable per IRS guidelines and UC policy depending on the coursework type and how it relates to the employee’s current role. Approved non-taxable reimbursements arrive as a check; taxable reimbursements appear in the paycheck as imputed income, which means federal income tax, FICA, and state tax apply. The Section 127 tax-free threshold is $5,250 per year for qualifying employer education assistance, so STEP’s $4,000 annual cap stays under the tax-free ceiling for non-job-related coursework that meets Section 127 criteria. Job-related coursework can qualify under a separate working-condition fringe benefit treatment. The HR Learning and Organizational Development office can confirm the tax treatment for a specific program before enrollment.

The UC Employee-Student Reduced Fee Program: For UC Davis Coursework

The Reduced Fee Program is a system-wide UC benefit and operates separately from STEP. Employees enrolled in regular session courses at UC Davis itself (or another UC campus) pay one-third of the standard University Registration Fee and one-third of the standard Educational Fee, which is a two-thirds reduction. Eligibility caps at nine units or three courses per quarter or semester, whichever is greater. Full eligibility details are on the UC Employee-Student Reduced Fee Program page.

What the Reduced Fee Program does not cover

Two important exclusions: most UC Davis professional schools (the School of Veterinary Medicine, the Graduate School of Management’s full-time MBA, the School of Nursing) are not eligible for the Reduced Fee Program. Neither is UC Davis Continuing and Professional Education. The Reduced Fee Program targets undergraduate and standard graduate coursework in regular UC Davis academic departments, not professional school programs. Employees pursuing nursing credentials at the UC Davis School of Nursing, for example, would not get the two-thirds reduction, though STEP may apply to nursing coursework taken elsewhere.

Why STEP and the Reduced Fee Program complement each other

These two programs cover different territory. The Reduced Fee Program produces fee reduction at the time of enrollment for UC Davis coursework, with no submission process and no waiting for reimbursement. STEP produces dollar reimbursement after course completion for any accredited college or university coursework, including online programs at non-UC schools. An employee taking a UC Davis upper-division course in evidence-based practice plus an online RN-to-BSN course at SNHU could use the Reduced Fee Program for the UC Davis course and STEP for the SNHU course in the same calendar year.

UC Davis Continuing and Professional Education Discounts

UC Davis CPE is a separate division offering certificates, professional courses, and the Open Campus program (which lets non-matriculated students enroll in regular UC Davis academic courses on a course-by-course basis). UC Davis Health employees, students, and retirees receive 20 to 40 percent discounts on most CPE certificates and courses. The discount applies at enrollment rather than as a reimbursement, so the savings show up immediately.

CPE programs span healthcare leadership, project management, data analytics, human resources, and a range of professional development tracks. For UC Davis Health employees who need a focused credential that is not a full degree (a healthcare information management certificate or a project management certificate, for example), CPE often represents the most efficient path. The discount stacks with STEP for the portion of CPE coursework that qualifies under STEP guidelines, though employees should verify program eligibility with the Learning and Organizational Development team before enrollment, because not all CPE coursework meets STEP’s matriculation or skilled allied health criteria.

The Graduate School of Management Staff MBA Scholarship

UC Davis Health employees considering an MBA have a path that is unusual among health system employer benefits: a 25 percent scholarship for fees in the part-time MBA at UC Davis’s Graduate School of Management. The program runs in Sacramento and the Bay Area, with classes scheduled to accommodate working professionals. Scholarship awards reduce program fees by up to 25 percent, which on a multi-year part-time MBA represents meaningful out-of-pocket savings.

The Staff MBA Scholarship is structurally distinct from STEP. STEP reimbursement is unavailable for the GSM part-time MBA because the Reduced Fee Program also excludes professional schools, but the Staff MBA Scholarship fills that gap with its own funding mechanism. Employees pursuing the part-time MBA effectively receive 25 percent off through the scholarship, plus federal Pell Grants for income-eligible employees, plus federal Stafford Loans for any remaining gap. The combination makes the GSM part-time MBA financially accessible for UCDH staff in ways that an outside MBA program at full price would not be.

SNHU as the Online Degree Path Outside UC

Many UC Davis Health employees who want online flexibility, accelerated transfer credit acceptance, or programs the UC system does not offer in fully-online format choose SNHU. UC Davis Health is a confirmed SNHU corporate partner, which means employees and immediate family receive a 10 percent tuition discount on SNHU’s online undergraduate and graduate programs. SNHU runs on a six-term-per-year calendar with no set class times, weekly assignment cadence, and full transfer credit evaluation up to 90 credits toward a bachelor’s.

Stacking SNHU with STEP works well for full degree completion. A typical online undergraduate course with the partnership discount runs about $873; STEP’s $4,000 annual reimbursement covers roughly four to five courses per year, and Pell Grants cover most or all of the remaining cost for income-eligible employees. The net out-of-pocket can drop close to zero for working adults pursuing RN-to-BSN, healthcare administration, business administration, IT, or cybersecurity bachelor’s completion. For graduate work, SNHU’s online MBA, MS in Healthcare Administration, MSN, and MS in Cybersecurity all fit STEP coverage, and graduate course pricing combined with STEP and Pell can keep total program costs in the low five figures.

Online Degrees Aligned With UC Davis Health Career Tracks

Medical assistants, patient services representatives, and clinical support staff

Entry-level clinical support roles at UC Davis Health pay in the $40,000s with growth into specialist and lead roles tied to credential building. Median wages for medical assistants nationally run around $42,000 (see the Bureau of Labor Statistics handbook), and Sacramento-area pay tends to run higher than the national median given California cost-of-living adjustments. The standard advancement path involves an associate’s or bachelor’s in nursing, healthcare administration, or health information management, all of which fit STEP coverage and most of which SNHU offers fully online with the partnership discount.

For UCDH employees in this range, the most cost-efficient path tends to combine Pell Grants, the SNHU 10 percent partnership discount, and STEP’s $4,000 annual reimbursement. STEP’s allied health certificate eligibility also opens up vocational pathways. An MA who wants to move into surgical technology, sterile processing, or sonography can fund the certificate program through STEP rather than self-pay.

Registered nurses pursuing BSN, MSN, and DNP

UC Davis Medical Center employs RNs across acute care, ICU, ED, surgical services, oncology, pediatrics, and the 52-bed Rehabilitation Hospital. RN median pay nationally runs around $86,000, with senior clinical and leadership roles considerably higher in the Sacramento market; the BLS RN handbook tracks current figures. Most clinical leadership advancement at UCDH requires BSN at minimum and MSN or DNP for nurse manager, clinical specialist, and educator roles.

RN-to-BSN completion at SNHU online with the 10 percent partnership discount typically runs 12 to 18 months for working RNs with a prior associate’s-level nursing degree. STEP funds approximately four to five courses per calendar year out of the 10 needed, so a two-year completion timeline keeps the program comfortably within the $16,000 STEP lifetime cap with room left over for graduate-level coursework later. For RNs targeting MSN credentials, SNHU’s online MSN concentrations cover education, leadership, and population health; for nurse practitioner or DNP credentials with substantial clinical hour requirements, regional accredited NP programs at California universities are typically the better fit because of clinical placement coordination.

Allied health: laboratory, imaging, pharmacy tech, and surgical technology

UC Davis Medical Center’s clinical laboratory, imaging, and pharmacy departments rely on credentialed allied health professionals, and these are the populations STEP’s vocational certificate eligibility was designed to serve. Clinical laboratory technicians earn median pay around $59,000 with bachelor’s-level technologists earning around $61,000 (see the BLS clinical lab technologists handbook). UC Davis Health employees moving from lower-credential support roles into lab tech, imaging tech, or surgical tech roles can use STEP to fund the certificate or associate’s degree, then apply the credential to internal job postings.

Healthcare administration and operations management

UCDH’s administrative workforce supports clinical operations, revenue cycle, quality and patient safety, regulatory compliance, and the system’s research enterprise. Healthcare management roles offer median pay around $117,000 nationally, with senior healthcare management often above $170,000; the BLS healthcare management handbook tracks current figures. Career advancement typically requires bachelor’s-level credentials with MHA, MBA, or MSN-leadership for senior roles.

The advantage UCDH employees have on this track is the choice between three different program structures: SNHU’s online MS in Healthcare Administration or MBA with healthcare concentration (full STEP coverage plus 10 percent partnership discount); UC Davis’s part-time MBA at the Graduate School of Management (25 percent Staff Scholarship plus Pell Grants); and CPE certificates for shorter focused credentials (20 to 40 percent CPE discount). Our overview of the best online MBA programs for working adults walks through MBA evaluation factors for healthcare professionals weighing these options.

IT, cybersecurity, and clinical informatics

UC Davis Medical Center runs Cerner-based EHR infrastructure with substantial cybersecurity overhead given the system’s research data and patient privacy obligations. Information security analyst roles offer median pay around $124,000 with strong projected growth (see the BLS information security analyst handbook). Clinical informatics work, which translates between clinical practice and IT system configuration, tends to be filled by clinicians with technical credentials, which makes the dual MSN and MS-Health Informatics path particularly common.

SNHU’s online MS in Cybersecurity, MS in Information Technology, and BS in Health Information Management all fit STEP coverage. Our overview of the best online master’s in cybersecurity programs covers graduate cybersecurity options for healthcare technology professionals, and our overview of the best online master’s in data science programs covers analytics options for clinical data and quality measurement work. For broader IT career planning, which online IT degree has the best career outlook walks through technology decision frameworks.

Behavioral health, social work, and counseling

UCDH’s behavioral health workforce includes licensed clinical social workers, mental health counselors, behavioral health care coordinators, and the integrated behavioral health teams embedded in primary care and pediatrics. State licensure for clinical practice requires master’s-level credentials (MSW for licensed clinical social work; MS in counseling or related field for licensed counseling), with online programs generally requiring in-person clinical field placements coordinated through California-based accredited programs. Our overview of the best online MSW programs walks through CSWE-accredited online options.

Stacking the Four Programs With Federal Financial Aid

Federal aid stacks with all four UC Davis Health education benefit programs. Pell Grants provide up to about $7,395 per year for income-eligible employees and do not require repayment, which makes them the first dollar to apply when planning. Federal Stafford Loans cover gaps at fixed interest rates with deferred repayment until enrollment ends. The FAFSA process for online students works the same regardless of which UC Davis Health benefit program is funding the rest of the tuition.

The funding-stack order that produces the best economics: Pell Grants first, then partner discounts (SNHU 10 percent for online programs at SNHU, or CPE 20-40 percent for UC Davis CPE coursework), then the relevant employer program (STEP for SNHU and other off-campus programs, Reduced Fee Program for UC Davis regular session courses, GSM Staff Scholarship for the part-time MBA), then Stafford Loans for any remaining gap, and out-of-pocket payment last. For most UCDH employees pursuing online bachelor’s or master’s completion through SNHU, the stack of Pell + 10 percent discount + STEP covers nearly all tuition, leaving only minor gap costs.

Borrowing thresholds matter even when the stack covers most costs. Our guides to how much you should borrow for an online degree and how adult students can graduate with minimal debt walk through repayment math relative to expected post-graduation earnings, which is particularly relevant for UCDH employees whose post-credential salary growth is reasonably predictable given the published UC pay structure.

Questions to Resolve With HR Before Enrolling

Each of the four programs has its own administrator, eligibility check, and submission process. Before enrolling in coursework with the assumption that one of these programs will fund it, run through the questions below in writing with HR Learning and Organizational Development.

Does my coursework qualify for STEP, the Reduced Fee Program, CPE discount, or none? The four programs are non-overlapping in coverage scope. Confirm which one applies to your specific program before enrolling.
Is my STEP reimbursement taxable or non-taxable? Job-related vs non-job-related coursework triggers different tax treatment. The HR Learning team can confirm.
What is my remaining STEP lifetime cap? If you have used STEP previously, the $16,000 lifetime cap counts cumulative reimbursement. Confirm your remaining balance.
Can my certificate program qualify under STEP’s allied health vocational track? Specialized certificate programs that prepare candidates for skilled allied health roles at UCDH qualify, but verification before enrollment avoids submission rejection.
How does the 60-day post-coursework submission window work? Day 61 submissions are not eligible. Confirm the start date for the 60-day count (usually the term end date) and set a calendar reminder.
Am I eligible for the Staff MBA Scholarship? Eligibility criteria include service requirements and program selection (Sacramento or Bay Area part-time MBA). Verify before applying to GSM.
Does my SNHU enrollment activate the 10 percent partnership discount automatically? SNHU verifies UCDH employment through the workforce partnership process. Confirm the partnership is active before paying full price.
Are there restrictions on combining programs in the same calendar year? STEP plus Reduced Fee Program in the same year is permitted for different coursework, but stacking multiple programs against the same course generally is not.
What happens if I leave UC Davis Health mid-program? STEP guidelines reference funds being subject to change and budgetary considerations. Verify whether retention or repayment provisions apply.

Should You Use UC Davis Health’s Education Benefits?

Yes, for most UCDH employees pursuing degree or certificate completion. The combination of STEP at $4,000 per year and $16,000 lifetime, the Reduced Fee Program for UC Davis coursework, CPE discounts for shorter credentials, the GSM Staff MBA Scholarship for the part-time MBA, the SNHU partnership discount, and federal Pell Grants for income-eligible employees produces a layered education benefit ecosystem that few other California health systems match. The Complete Guide to Earning an Accredited Online Degree as an Adult Learner provides additional context for evaluating online program fit before applying.

The strongest use cases are RN-to-BSN completion at SNHU online with STEP plus partnership discount plus Pell; allied health vocational certificate funding through STEP for clinical career pivots; the GSM part-time MBA with the 25 percent Staff Scholarship for senior administrative track candidates; UC Davis upper-division coursework using the Reduced Fee Program for working adults completing prerequisites or specialized academic content; and CPE certificates for focused professional development that does not require a full degree. For employees considering returning to college after 30 or completing an online degree while working full time, the four-program ecosystem offers more flexibility than a single-program structure.

The procedural discipline UCDH employees should plan around: STEP’s 60-day submission window after course completion, the calendar-year reset on the $4,000 annual cap, and the eligibility distinctions between programs. Map your intended coursework against the four programs before enrolling rather than after. For multi-year credential pathways, plan how the $16,000 STEP lifetime cap will be allocated across coursework, front-loading prerequisites in years where partner discounts are high and saving STEP capacity for the most expensive degree-track years. Our guide to how adult students can graduate with minimal debt walks through cost-management strategies that work for working adults in healthcare careers.

Start Your Online Degree Through SNHU’s UC Davis Health Partnership

UC Davis Health employees and immediate family members can use the SNHU workforce partnership to reduce out-of-pocket cost on an online bachelor’s, master’s, or certificate program. The 10 percent tuition discount applies to all online undergraduate and graduate degree programs at SNHU and combines with STEP reimbursement (up to $4,000 per calendar year) plus federal Pell Grants for income-eligible employees to produce one of the most cost-efficient online degree pathways available to working healthcare professionals in Northern California. Visit SNHU’s workforce partnerships page to start the enrollment process; an SNHU admission counselor will follow up with details on the partnership discount, transfer credit evaluation, and program selection. The Complete Guide to Earning an Accredited Online Degree as an Adult Learner walks through the broader picture of combining employer benefits with federal aid.

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Dave Bergman

Dave has over a decade of professional experience that includes work as a teacher, high school administrator, college professor, and independent educational consultant. He is a co-author of the books The Enlightened College Applicant (Rowman & Littlefield, 2016) and Colleges Worth Your Money (Rowman & Littlefield, 2020).