Starbucks recently announced that it will make it possible for thousands of its part- and full-time U.S. employees to complete a college degree online at Arizona State University. Starbucks says that this is a unique collaboration that allows employees to finish their bachelor’s degrees with full tuition reimbursement. ASU has a successful online education program.
Starbucks wrote glowingly about ASU:
It is ranked the second most innovative school in the country by U.S. News & World Report and ranks 5th in the nation in producing the best-qualified graduates, according to a Wall Street Journal survey of campus recruiters. Today, almost half of college students in the U.S. drop out before finishing a bachelor’s degree while nearly half of all ASU Online students graduate in under three years.
Moody’s writes about the tuition deal with ASU, which is rates Aa3 (8.5):
Starbucks Corporation is rated A3  stable with brand strength as a key credit factor and has approximately 135,000 employees across the United States.
With potential students located across the 50 states, the Starbucks program will significantly improve brand awareness in markets that ASU has not previously penetrated with its core programs. Ultimately, this should lead to strengthened student demand for ASU’s core and online programs.
ASU is now generating about 10 percent of its tuition revenues from online enrollment. Moody’s says that the additional revenue generated by Starbucks enrollees is expected to outweigh the costs of financial aid that ASU will offer to the Starbucks students. Moody’s wrote: