Parents who dole out tuition costs to send their children to private schools are facing the same economic crisis and rising costs as everyone else.
» 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.
» 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.
» Tuition loan programs assist many families in making tuition payments more affordable by providing the funds up front and spreading the payments over a longer period of time than tuition payment plans allow. Tuition payment plans are typically coordinated between a particular provider and the school. However, due to recent financial turmoil, most providers of loans for private school tuition have suspended or canceled lending to the K-12 markets.
Source: National Association of Independent Schools
But according to data from the National Association of Independent Schools, during the five most recent recessions going back to 1968, enrollment numbers and annual giving totals actually increased for independent schools.
“I’m sure all private schools are bracing for the worst, but we have not seen a decrease in giving, and we don’t expect a decrease in enrollment,” said Ben Shifrin, head of Jemicy School in Owings Mill and Towson.
The average median tuition for day schools in 2007-08 was $16,440, while the average median tuition for boarding schools in 2007-08 was $30,828, according to NAIS data.
“People are definitely cutting back, but one thing they won’t limit is their child’s education,” Shifrin said. “We are, though, seeing an increase in requests for financial aid.”
Shifrin recommended, though, that parents considering enrolling their children in private school or continuing private school education ask questions about the school’s endowment and annual giving campaign before signing a tuition check.
Whether or not the Wall Street slump has affected the school’s endowment can have significant effects on the school’s ability to retain or attract high-quality teachers and develop effective teaching programs, Shifrin said.
“Other questions parents need to ask are if the school has taken on debt in recent years by building new facilities and how much money has been allocated to financial aid,” Shifrin said.
