Financing a Private School Education

While everyone will agree that private school education is not cheap, it doesn't have to break your budget. Affording a quality education does take some planning, and most families employ several strategies to keep the costs within reach. In this planning it is important to realize that the family bears the primary responsibility for financing a child's education to the extent that it is able. After that there are others out there to help you in your efforts.

Perhaps the best source of information lies with the financial aid officers at the individual schools you're considering. They can explain the full range of options that they offer and may be able to provide some information on the limited outside funding sources available. Understand that each school may offer different strategies and may have different policies. It is important to ask each school about the specifics of their various options and see how these options fit within your financial planning.

NAIS's financial aid services program, School and Student Services (SSS), also provides extensive resources for families. Click here to go the SSS Website for Families. It is also on this site that you can access the financial aid application called the Parents' Financial Statement (PFS). Read more about the PFS below.

For the typical private school, financial aid and tuition assistance comes in three forms:

• Need-based Financial Aid
• Merit Awards
• Tuition Payment Plans and Tuition Loan Programs

Need-Based Financial Aid

How much aid is available? For the academic year 2005-06, 972 National Association of Independent Schools (NAIS) members awarded $957.7 million in financial aid. These same schools reported that 18.7 percent of their students received some financial aid. The average award for boarding schools was $17,295 and for day schools, $9,232.

Schools award financial aid grants based upon the financial need of a family. These grants do not need to be paid back and are used to offset tuition costs. The money for these grants comes directly from the school's budget and demonstrates the school's commitment to having a socioeconomically diverse student population.

To determine your family's eligibility, you will have to fill out an application for financial aid. You can get this form from the school's financial aid officer. Most NAIS schools use the Parents' Financial Statement (PFS) which is the application of School and Student Services (SSS). SSS is an NAIS-owned service that helps schools objectively determine a family's ability to pay for school tuition and other educational expenses. Families can complete the PFS online or in print.  If the school you are considering does not use SSS, be sure to ask what steps you need to follow in order to apply for assistance.

The amount of aid a family receives is a decision made by each school -- and it may vary considerably from school to school. The size of its endowment, its tuition costs, and its philosophy of awarding aid affect how much a school can offer. If your decision to send your child to a private school depends on getting some financial help, it pays to apply for aid at more than one school.

Merit Awards

Merit scholarship awards are often based upon some demonstrated talent such as athletic, artistic, or academic. During the 2005-06 academic year, 310 NAIS member schools offered $25.7 million in merit awards with the average award being $3,545. If you think your child may qualify for a merit award, it is important that you check with the school about the particulars of their merit award program. Fewer than 5 percent of enrolled students received merit-based financial aid.

While most schools offer need-based aid, some schools also offer special scholarships based on criteria other than economic circumstances. Examples of non-need-based awards are merit scholarships and sibling discounts.

Sibling discounts are a lesser-used option and depend upon the number of children enrolled within the same school. These discounts may not be very large, but be sure to see if the schools you are considering offer such a program.

Tuition Payment Plans and Tuition Loan Programs

Many families require assistance beyond what a school may be able to offer. On the SSS Website for Families, you will find information about tuition loan and tuition payment programs. This should serve as a resource to help you identify other types of financing options that may be available to you. We encourage you to contact these companies and agencies to check on current fees and rates and to assess whether their services would be reasonable financing alternatives for you at the school of your choice. This list is neither an endorsement nor representation of sponsorship of these payment plans or loan programs.