Starbucks CEO Schultz: Sell Coffee While Earning a Degree

Want a free college degree—but need to work full-time? For decades, the idea that ‘education changes lives’ has powered rags-to-riches tales, from ancient scholars to modern factory workers. Now, Starbucks is offering a new chapter: earn your bachelor’s degree online while serving lattes.

Yes, you can get a full four-year bachelor’s degree for free—Starbucks will cover 100% of tuition costs through a $2.5 million partnership with Arizona State University. But there’s a catch: you have to be a Starbucks employee first.

How Starbucks Is Funding Free College for Employees

This week, Starbucks announced a $2.5 million investment to provide all its employees with full tuition coverage for online bachelor’s degree programs at Arizona State University. The benefit is available regardless of how many college credits you’ve already earned. The program isn’t limited to recent grads or new hires—it’s open to part-time and full-time partners (Starbucks’s term for employees) currently working at the company.

The Economics Behind Educating Baristas

The move aligns with the human capital theory put forward by economist Theodore Schultz, who won a Nobel Prize for demonstrating that education boosts worker productivity and earnings. Back in 1979, Schultz’s research showed that better-educated workers tend to secure higher-paying jobs, improving both individual livelihoods and broader economic growth. Howard Schultz, the Starbucks CEO (no relation), is applying that principle to his workforce: offer education, improve prospects.

But Will a Free Degree Really Change Your Life?

Not necessarily. A 2014 report by the Brookings Institution, led by former U.S. Treasury Secretary Lawrence Summers, analyzed U.S. income data from 1979 to 2013. It found that while a college degree can boost lifetime earnings by over $400,000 compared to no degree—adding roughly $20,000 per year—the advantage mainly applies to workers in the lower-middle income bracket. In higher-income tiers, the impact is far less dramatic. So while Starbucks’ program could help a high school grad move into a better job and break cycles of poverty, it doesn’t guarantee a fast track to becoming a CEO or landing a high-paying corporate role.

What This Means for Young Workers Today

In today’s tough job market, global youth unemployment remains a major issue. The International Labour Organization reports that 202 million people worldwide are jobless, with numbers expected to rise by 3 million in 2015 alone. While Starbucks’ education initiative offers a valuable stepping stone, it’s clear that higher education alone may not be enough to escape economic barriers without broader support—from governments, employers, and labor markets.

Frequently Asked Questions

Which degree programs are covered by Starbucks’ tuition plan?

The program covers all undergraduate bachelor’s degree programs offered online by Arizona State University. There is no restriction on majors, and employees can apply regardless of how many college credits they already have.

Do I need to be a full-time Starbucks employee to qualify?

No, both part-time and full-time Starbucks employees (referred to internally as ‘partners’) are eligible for the tuition assistance program, as long as they are actively working for the company.

How much does Starbucks contribute toward tuition?

Starbucks is covering 100% of the tuition costs for online bachelor’s degrees through a $2.5 million partnership with Arizona State University. The exact amount per student varies based on the chosen ASU online program.

Is this benefit available to new hires only?

No, the tuition assistance is available to all current Starbucks employees, not just new hires. Existing partners can apply regardless of when they started working at the company.

Does the program include any other educational support besides tuition?

The announced program specifically covers full tuition for online bachelor’s degrees. Additional educational resources or benefits were not detailed in the announcement.

What’s the connection between Howard Schultz and the economist Theodore Schultz?

Though they share a last name, Starbucks CEO Howard Schultz is not related to the economist Theodore Schultz, who developed the human capital theory that underpins the rationale for investing in employee education.

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