Education Stipends: Your 2026 Guide

Key takeaways

An education stipend makes continuing education more accessible, allowing employees to enhance their success in their positions and advance their career goals. 

• Eighty-five percent of employers plan to prioritize upskilling, or teaching employees additional skills, between 2025 and 2030 [1].

• Education stipends may be reimbursed or prepaid, allowing employees to select continuing education options that fit their needs.

• You can use your education stipend for online courses, professional memberships or conferences, certifications, and more. 

Learn more about education stipends, including available types, how to use them, and benefits for employers and employees.

What is an education stipend?

An education stipend, sometimes called a learning or development stipend, is a set amount of money an employer gives an employee so they can use it on educational opportunities, usually those that help you improve your skills and education as they relate to your current job. Learning stipends are nontaxable, and employers typically give them out monthly, every four months, twice a year, or once a year.

Every company is different, but if you follow the organization's guidelines, you can usually spend the stipend however you want. You might use your stipend to take classes, attend conferences, purchase or subscribe to industry-related media, buy books, attend workshops, pay for coaching or mentorship, or participate in other programs that can improve your professional life.

Read more: What Is Continuing Education?

Types of education stipends

You'll typically encounter two basic types of education stipends: reimbursement and prepaid. If you receive a reimbursement stipend, you pay for your educational opportunities out of pocket, and your employer reimburses you. This stipend can be challenging for employees who need more money to pay for additional learning, especially more expensive opportunities, like courses and workshops.

A prepaid stipend is one in which your company gives you the money upfront. It typically comes in the form of a prepaid card, like a gift card, and you can use it when you purchase the learning activity of your choice.

Why employers offer an educational stipend

While it may seem like offering an education stipend only benefits employees, it's also something employers can benefit from in many ways. When you invest in your employees' development, you might experience an improved overall performance from your staff, increased employee engagement, and workers with enhanced skills and knowledge that can help with your bottom line. It could even help attract new talent.

An education stipend allows your employees the personalization and flexibility to pick educational options that suit their unique needs, which shows you trust their judgment and value their autonomy. When employees feel their employer trusts them, they're happier overall. Happy employees tend to stick around, improving your retention rates. 

Ultimately, your employees want to learn and grow, and providing them with options like education stipends is a great place to start. According to the World Economic Forum’s Future of Jobs Report 2025, 85 percent of surveyed employers will prioritize upskilling between 2025 and 2030, ensuring their employees possess the necessary skills to succeed [1]. 

Who is eligible for a stipend?

Your employer will determine who is eligible for a stipend, so review its educational stipend policy for specific guidelines. In some cases, an organization offers its employees the same stipend, and the policy outlines the specific ways they can use it.

Advantages of an education stipend to employers

Having happier, more satisfied employees who trust their employers is a great start, but you'll encounter numerous other advantages to providing your employees with education stipends. Some of them include: 

• You may close any skill gaps that exist in your workforce.

• You'll likely see an increase in reskilling and upskilling, especially with Gen Z employees. 

• In a competitive job market, you'll set yourself above your competition.

• You may increase brand awareness.

• Employee retention is usually stronger in companies that offer education stipends.

• Advertising education stipends may help with recruiting high-quality employees.

• You may see an increase in employee productivity.

• You may see an increase in employee engagement.

• You'll likely improve your company culture by incorporating a growth mindset. 

Advantages of an education stipend to employees

Of course, education stipends are quite advantageous for employees as well. Continuing your education and honing your professional skills can be a form of job security. It also makes you a better worker. For this reason, consider taking advantage of education stipends and any other type of resources your employer offers to help you with professional development. If your company doesn't provide these perks, consider asking if they will. Some of the other advantages of education stipends for employees include:

• You have more control over the type of educational opportunities you seek, so you don't have to worry if you have a unique learning style.

• You'll improve your skills, which may help your job performance and lead to advancement. 

• Workplaces that offer education stipends are likely to experience an increase in morale, which can also lead to a better relationship between employees and management.

• Any training you participate in, certifications you earn, or degrees you earn will look good on your resume if you ever change jobs or seek a promotion or raise. 

What to use an education stipend on

One benefit of an education stipend is that you have some flexibility. As long as you stay within company guidelines (if any exist), you can use it how you see fit. From simply subscribing to a trade magazine that relates to your field to earning that master's degree you've always dreamed of, some popular ways to use an education stipend include:

• Taking courses, either online or in person, at a local educational institution 

• Buying books 

• Paying membership fees for a professional club or organization 

• Learning a second language 

• Earning professional credentials, like a certification related to your position or industry 

• Enrolling in college to earn an associate, bachelor's, master's degree, or PhD 

• Purchasing productivity apps and tools 

• Subscribing to newsletters and magazines that relate to your industry

• Hiring a coach or mentor 

• Taking a public speaking lesson 

• Attending professional conferences 

• Taking advantage of online learning platforms, like Coursera

Explore bite-sized ideas for meaningful career growth

Stay informed of career trends and tips by subscribing to Career Chat, our weekly LinkedIn newsletter. Then, check out these resources to broaden your learning:

• Watch on YouTube: How to Prepare for AI in Your Career

• Read an insider story: Meet the Automotive Tech Exploring New Careers With Coursera Plus

• Enhance your skills: How to Strengthen Your Critical Thinking Skills

Consider using your education stipend to take online courses or to complete your bachelor’s degree or pursue your master’s degree with flexible programs offered by esteemed university partners on Coursera.