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Starbucks to Expand Online College Tuition Program

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In this Nov. 24, 2014, file photo, barista Jay Rapp prepares a Chestnut Praline Latte at a Starbucks store in Seattle. Starbucks on Monday, April 6, 2015, said its workers can now have four years of tuition covered for an online college degree from Arizona State University instead of just two, marking the latest sign that companies are rethinking their treatment of low-wage workers. (AP Photo/Ted S. Warren, File)

In this Nov. 24, 2014, file photo, barista Jay Rapp prepares a Chestnut Praline Latte at a Starbucks store in Seattle. Starbucks on Monday, April 6, 2015, said its workers can now have four years of tuition covered for an online college degree from Arizona State University instead of just two, marking the latest sign that companies are rethinking their treatment of low-wage workers. (AP Photo/Ted S. Warren, File)

CANDICE CHOI, AP Food Industry Writer

NEW YORK (AP) — Starbucks says its workers can now have four years of tuition covered for an online college degree from Arizona State University instead of just two, marking the latest sign that companies are rethinking their treatment of low-wage workers.

The Seattle-based coffee chain says the decision is part of its commitment to “redefine the role and responsibility of a public company.”

The expansion of the program comes as employers increasingly seek to win favor with customers by cultivating their images for being socially responsible. Last week, McDonald’s also announced it was expanding a college tuition assistance program to workers at its more than 14,300 U.S. stores. At its company-owned stores, McDonald’s said workers would get a pay bump and be able to earn paid time off as well.

Among the other major employers that have announced wage hikes recently are Wal-Mart Stores and Gap Inc.

The public declarations of improved pay and benefits come as the growing income disparities between the richest Americans and everyone else have become a major political issue. Last year, more than a dozen states and multiple cities raised their local minimum wages, according to the National Employment Law Project. And since late 2012, ongoing protests by labor organizers have highlighted the financial hardships of fast-food and retail workers, and generated negative publicity for McDonald’s and Wal-Mart in particular.

“People understand the glaring differences between those at the top, and workers who aren’t making that much,” said Tsedeye Gebreselassie, a staff attorney at the National Employment Law Project, which gets funding from unions and has supported the protests for pay of $15 an hour and unionization for low-wage workers.

Already, Starbucks is known for offering workers health care coverage and company stock, which are considered unusual benefits in the retail and fast-food industry. And Starbucks CEO Howard Schultz said the coffee chain’s education program is helping build customer loyalty as well.

“Consumers want to choose those companies that have like-minded values as them,” he said.

Additionally, Schultz said Starbucks is fighting to “attract and retain great people,” and that workers have higher expectations from employers.

“The benefits of yesterday may not be as relevant today,” he said.

The tuition program is a collaboration between Starbucks and Arizona State University, which charges roughly $30,000 for two years of its online degree program. Without providing details, Arizona State University President Michael Crow said the school will “more than break even” with the tuition it collects for Starbucks workers. He said that money will be reinvested into expanding educational opportunities.

As part of the agreement with Starbucks, ASU is providing an upfront discount or scholarship of about 42 percent of the standard tuition for eligible workers at the chain’s company-owned U.S. stores. That means Starbucks would be responsible for up to 58 percent.

The amount Starbucks pays stands to be less, however, since many workers are expected to qualify for federal Pell grants and other aid as a result of their limited incomes. Workers would pay whatever costs are leftover, and Starbucks would reimburse them at the end of each semester.

Previously, Starbucks had said it would pay back workers after the completion of 21 credits, which had prompted some criticism that workers were being forced to wait too long for reimbursement.

So far, Starbucks Corp. says nearly 2,000 workers have enrolled for the program; the chain has more than 140,000 workers at its company-owned U.S. stores and support centers. Workers can pick from a variety of fields to study and are not required to stay with Starbucks after earning their degrees.

As part of the initial agreement, Starbucks agreed not to promote undergraduate degrees from other universities to its workers, and Arizona State University agreed not to enter into a similar partnership with another company without prior approval from Starbucks for the first couple years of the program.

____

Follow Candice Choi at www.twitter.com/candicechoi

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances. 

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Sponsored by JPMorganChase

As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support 

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC

© 2026 JPMorgan Chase & Co.

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