Existing state policies to support the costs of apprentices’ classroom training at colleges are a patchwork. Some states have implemented effective subsidies to support credit-bearing apprenticeship offerings without any cost to the apprentice; other policies are well-intentioned but counterproductive. Across the country, though, many states already have the policy groundwork to support college classes for apprentices, even with rather modest investments.

 This report explores the advantages and drawbacks of four current approaches to funding the classroom component of apprenticeship and provide recommendations for policymakers looking to support college-connected apprenticeships in their state.

These four approaches—student financial aid, startup grants, reimbursement systems, and tuition waivers—all affect different stages of the apprenticeship program lifecycle and have different implications for apprenticeship stakeholders. As this analysis will show, some approaches are better suited to connecting apprenticeship to college than others.

• Student financial aid approaches are student-focused, aiming to make college instruction more affordable for apprentices, and may be paid to the learner or to the college to cover tuition costs. Although financial aid has received relatively little attention among apprenticeship researchers and advocates, apprentices can and do draw on a variety of federal and state student aid options. This brief focuses on student grants and scholarships authorized by states.
• Startup grants are program-focused, aiming to increase the capacity of employers, colleges, and apprenticeship intermediaries7 to develop and deliver apprenticeship programs. Though startup grants may have different allowable uses, they typically support development of apprenticeship curricula; instructor training and hiring; and marketing, recruitment, and screening of prospective new apprentices. In some cases, startup grants may subsidize apprentice wages.
• Reimbursement systems are largely program-focused, and provide additional funding to colleges, school districts, and other apprenticeship training providers through a regular application process. Standardized timetables and budget processes are used to allocate funds to training providers, and reimbursed funds typically support instructor salaries, facilities, and equipment or supplies, as well as a portion of administrative expenses.
• Tuition waivers, like financial aid, are student-focused, primarily serving to reduce or eliminate the cost burden of college coursework on apprentices. However, tuition waivers can vary greatly in their incentive structure and their corresponding effects on colleges that enroll apprentices. If colleges are reimbursed for waived tuition costs, apprentices are no different than any other students for accounting purposes. These “funded” waivers have program-focused components that resemble reimbursement systems. If colleges are not reimbursed, however, the waiver serves as a tuition exemption, which can create a potent disincentive for colleges to provide apprenticeship coursework.