Students at Culver Academies learn to develop leadership by meeting challenges head on. (Photo by Sloan Losch)
A private school education can be a significant financial commitment for many families, but it is certainly possible with a combination of careful planning, financial management and understanding the available funding options. Whether you are considering private school for the first time or trying to make it more affordable for multiple children, there are several options you can explore to make tuition a financial reality. If you’re reading this, you already recognize that there’s value in a private school education and that financial tradeoffs will be required. However, as an admissions professional with two decades of experience working at boarding schools, I can tell you that it’s not as daunting as it seems. Read on to learn eight simple steps to affording a private school education.
1. Assess Your Financial Situation
Assessing your financial situation is the first step. Gather information about your household income, expenses and savings. Creating a detailed budget can help you identify areas where you might cut costs to allocate more funds toward education. Review your discretionary spending and identify areas where you can cut back. For example, limit dining out, reduce entertainment expenses and find ways to save on optional monthly expenses. This could free funds that can be used for tuition. This will also allow you to understand how much you can realistically save or invest in education without jeopardizing your financial stability. Also consider that some current expenses will be covered at a new school – uniforms in lieu of a traditional school wardrobe, meals at a boarding school, outside travel teams, clubs or tutors may not be necessary if your child enrolls in an independent school. As your child progresses through school, tuition costs may increase. Make sure your financial plan accounts for potential tuition increases so that you can adjust your savings and spending habits accordingly.
2. Understand the Costs Involved
Before diving into ways to afford private school, it is important to first understand the full financial picture. Private schools typically have annual tuition rates, but the costs sometimes extend beyond just the tuition. Tuition can vary widely depending on the institution, location, boarding vs day, and grade level. In addition to tuition, families may also need to budget for:
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Books and supplies: Some schools provide these items as part of tuition, but others may require families to purchase textbooks, uniforms, laptops, or other resources.
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Transportation: If the private school is far from home, families may need to factor in costs for transportation.
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Extracurricular activities: Many private schools offer a wide range of extracurricular programs, but some may come with additional fees, such as for sports, music, clubs or field trips.
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International Student Costs: Some private schools ask families to pay for additional intensive English courses or U.S.-based health insurance.
By understanding all of these costs up front, families can begin to create a more accurate picture of what school will actually cost them each year.
3. Research Private Schools and Their Financial Aid Packages
Each private school has its own pricing structure, so it is important to find schools that fit your financial situation. Some private schools are more affordable than others, and some offer a variety of financial aid programs.
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Need-based financial aid: Many private schools offer financial aid to help offset tuition costs for families who demonstrate financial need. This aid is typically awarded based on the family’s income, assets, family size, and other factors. Be sure to check with the school’s admissions office about how to apply for financial aid, as many schools require a financial aid application and tax documentation to assess your eligibility.
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Merit-based scholarships: In addition to need-based aid, some private schools offer merit-based scholarships for students who excel academically or in extracurricular activities. These scholarships can significantly reduce the cost of tuition, and it is worth looking for schools that offer this type of support. For example, Culver Academies offers five Distinguished Merit Scholarships that cover tuition, room and board for four years.
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Third-Party scholarships: There are numerous external scholarships and grant opportunities available for students attending private schools. Organizations, foundations and community groups often provide funding based on various criteria such as academic performance, leadership and specific talents. The National Association of Independent Schools has a list of some of these scholarships on their website: NAIS - Links of Interest.
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Payment Plans: Some schools also provide payment plans, allowing parents to spread tuition payments throughout the year rather than paying a lump sum. That can make a significant difference in affordability.
4. Look into Tax Benefits and Education Savings Accounts
The cost of private school tuition can be partially offset by tax benefits and education savings plans. Consult with a tax advisor to see what options are available to you. For example:
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529 Plans: These tax-advantaged savings accounts are designed to help families save for education costs. While 529 plans are typically associated with college savings, recent changes to federal law allow families to use these funds for K-12 private school tuition as well, up to a certain limit. Using a 529 plan to pay for private school can reduce your taxable income, making it easier to cover the cost of tuition.
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Education Tax Credits: Some states offer tax credits for private school tuition or education-related expenses. These programs vary by state, so it is worth researching what options are available in your state.
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Tax-Deductible Expenses: While tuition itself is generally not deductible, other educational expenses may be eligible for tax deductions or credits. For example, if your child has special educational needs, you may be able to deduct certain expenses related to those needs.
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Education Savings Accounts (ESAs): Set up a dedicated savings account for educational expenses. Many families use high-yield savings accounts or education-specific investment accounts to save for tuition.
5. Consider Alternative Financing Options
If you are not eligible for financial aid or scholarships, you may want to explore other ways to finance private school tuition:
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Payment Plans: Many private schools offer payment plans that allow families to pay tuition in monthly installments instead of in one lump sum. These plans can help break down the large cost of tuition into more manageable payments.
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Loans: While taking out a loan for private school tuition should be approached with caution, it is an option for families who need additional financial support. There are private loans specifically designed for education expenses, and some schools may offer their own loan programs to help families afford tuition. However, this should be considered carefully, as taking on debt to cover education expenses could have long-term financial implications.
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Home Equity Loans: If you own a home and have equity built up, you might be able to take out a home equity loan to cover the cost of tuition. These loans often offer lower interest rates than private loans, but you should weigh the risks of putting your home on the line.
6. Consider the Long-term Benefits
While the upfront costs of private school can be daunting, consider the long-term benefits of private education, which may justify the investment. Studies have shown that students who attend private schools often have higher academic performance and college attendance rates than their public-school counterparts. Enhanced educational quality, smaller class sizes and more individualized attention may contribute to outcomes that benefit students in higher education and beyond. The Association of Boarding Schools recently released data collected from thousands of independent school students on the benefits of boarding school. You can view the report here: The Boarding Advantage - BoardingSchools.com
7. Schedule a Meeting with the School
If you are seriously considering a specific girls school, boys school, or co-ed independent school do not hesitate to schedule a meeting with the admissions office or financial aid department. They can provide detailed information about financial aid packages, scholarships, and even payment plan options. This meeting can also help you gauge the school’s willingness to work with your family’s financial situation.
8. Involve Your Child in the Process
Finally, it is important to involve your child in the process of affording private school. Teaching your child about the value of money, budgeting, and the sacrifices required to afford a private school education can help them appreciate the opportunity and be more mindful of the resources involved. It can also encourage them to take full advantage of the educational opportunities they are being provided.
Private school tuition can be a heavy lift for many families. Following the steps laid out above will ensure that you enter the process well-informed, allowing for peace of mind and clear decision making. To learn more about tuition, financial aid, and scholarships, including a list of frequently asked questions, visit Culver Academies tuition and financial aid page.
Students at boarding schools develop lifelong friendships.