Published
February 15, 2013
Many parents think that tuition insurance is a waste of money or that they really don’t need it. Here’s why they do. When you sign the contract with the school, you are responsible for the annual tuition, room and board charges for the academic year. The school will have operating expenses which it must honor regardless of whether your child completes the full year or has to withdraw after the second month.
To protect themselves most schools offer you two options: you can pay the entire year’s tuition, room and board in one payment by July 15; if you opt to pay in two installments or in monthly payments, then you will be required to purchase tuition insurance.
What does tuition insurance cost? Typically you will pay .009% to 1% of the face value of the education charges. As noted above tuition insurance is mandatory unless you pay in one payment up front.
Tuition insurance affords protection and peace of mind for parents and the school. Specifically you would need tuition insurance in the event that your child is forced to withdraw from the school. There are several reasons why that might be necessary.
An illness or injury
The last thing any of us parents want is for something to happen to our darlings. All of us in our quiet reflective times breath a sigh of relief that we have gotten thus far without serious accident or injury to our children. But the reality is that the unexpected can and does happen. God forbid...
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Published
October 13, 2011
Private schools charge everything from nothing at all to well over $50,000 a year for their services. For the purposes of this article I am considering tuition or tuition and room and board only. I am leaving out all the extras such as riding or music lessons, school trips, travel to and from the school, local transportation and so on. These sundries add up quickly so don't forget to take them into account. Also not included are acceptance deposits and application fees.
Here are some examples of what the various types of private schools charge. Remember that this is merely a sampling. You should explore every school which interests you as part of your
school search process.
Day Schools
Day schools are non-residential schools. Most of them offer classroom instruction Monday to Friday. Intramural sports and activities are fitted in during the week with many schools devoting an afternoon to non-classroom activities. Occasionally there will be events planned for Saturdays, in particular varsity sports.
Published
August 14, 2011
One of my young employees was horrified to discover that a certain Los Angeles day school charges $30,000 tuition. "How do they pay for that?" was his shocked cry. It's difficult for a 24 year old who's only making $40,000 to understand how families can afford college much less private school. So, exactly how does a family afford a private school education? Here are some ways they can make that special educational opportunity possible.
Scholarships
There are not many
scholarships for K-12 private school students. Still, it is worth doing your research in this area to uncover the scholarships which do exist. Several states have programs set up which allow citizens to contribute to funding for private schools. Arizona and Washington offer special tax credits for gifts to private schools for scholarships.
Financial Aid
This is the most exciting part of the 'paying for private school' picture. Understand that each private school is independent. Each school stands on its own two feet financially speaking. That's why
financial aid will vary from school to school. Older, established schools such as Andover and Exeter have substantial endowment funds. That's why they and a few other schools can offer a virtually free education to students who come from families which make below a certain amount. $75,000, for example. But you will have to visit the schools' web sites to find out the details. Better yet, call and ask.
Loans
If you are strapped for cash, but have assets which can be pledged as collateral,...
Published
November 08, 2009
The
article in the New York Times sounds ominous. Certainly, as it points out, private school endowment funds have seen declines in their value as a result of the economic and financial meltdown of 2009. But there are other factors which the article does not address which make the impact on financial aid less of an issue than the writer would have you believe.
Let's look at the facts.
Conservative Investment Policies
The investment approach for private school endowments has historically been a conservative, cautious approach. Trustees and their advisors have generally been good stewards of their finances. They avoided risky investments such as derivatives and real estate despite calls from some quarters to maximize returns. The reason for the decline in their portfolio value is simple: just about every investment-grade instrument declined.
Sustainability
Back in the 90s, sustainability became an important principle in private school mission statements and philosophies. The National Association of Independent Schools has taken a leadership role in supporting all kinds of sustainability initiatives including
financial sustainability with its 1,500 member schools.
From the Nais: "In order for independent schools to thrive in the 21st century, NAIS believes that they must be sustainable along five dimensions: financial, demographic, programmatic, environmental, and global."
As a result, schools with significant endowments (greater than $10 million) generally were well-positioned to weather the economic storm which 2009 brought on with a vengeance.
Financial Aid is a Priority
Financial aid goes to the heart of most private schools' commitments to diversity. It is not an...
Published
November 08, 2008
No doubt about it, private school tuition costs are rising. Some schools seem to be rising at a faster rate than others. Why? What's behind those tuition increases? Unfortunately for many private schools costs of basic goods and services have risen dramatically. Energy costs alone chew up a major part of any school's budget. Faculty and staff salaries and benefits are a substantial part of budgets as well. In order to attract and retain qualified, skilled and experience personnel, you need to offer a decent compensation package with annual increases. Most schools also offer free or substantially reduced tuition for children of faculty and staff.
Let's look at a couple of schools' tax returns or Forms 990 and analyze a few lines of expense data which they reported to the IRS. The Foundation Center keeps Forms 990 for every non-profit organization which files with the IRS. Click the links to see how much the school reported as income and expenses as well as a wealth of other data.
| |
2002 |
2005 |
| Instructional |
7,261,431 |
8,579,257 |
| Utilities |
388,919 |
473,036 |
| Insurance |
133,232 |
159,520 |
| Cleaning Services |
309,617
|
281,143 |
| Instructional |
7,261,431 |
8,579,257 |
| |
2002 |
2005 |
| Instructional |
5,099,223 |
6,006,740 |
Telephone
|
136,363 |
97,368 |
| Printing & Publications |
364,708 |
628,550 |
| Supplies |
624,291 |
980,491 |
Note that it is frankly impossible to compare apples to apples when it comes to private schools. Even their accounting and reporting varies from school to school. But a review of the data shown above paints the same picture: costs are rising.
Another fact to consider is that tuition charged by a school...
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Published
April 15, 2013
Here are a dozen or so girls' schools' public thoughts about themselves and their missions.
Make Summer a Special Time!
If you have children in private school, then you are most likely looking at three months, perhaps even longer, which you must fill with activities of one kind or another during the long summer break.
Are You Liable?
Is your DEL key about to get gaveled? It doesn't matter whether you teach in a public or private school setting. You expose yourself to legal risks every single day on the job.
More articles:
Why Private School,
Choosing a Private School,
Pre-elementary,
High School Issues,
Running a Private School
Financing Basics
The various private school charges explained.
-
Private School Jobs
Teaching in a private school is different from teaching in a public school. Find out more here including information on duties, compensation and where to find jobs.
-
Using Facebook, YouTube and Pinterest to Promote Your School
Social media is an effective marketing tool for your school. Here are some suggestion for using Facebook, YouTube and Pinterest.
-
Boarding or Day School?
Many parents agonize over sending their child to boarding school or keeping them at home and sending them to day school. A look at the pros and cons here.
-
Seattle Area Schools
The Seattle area is home to many fine private schools as well as to major companies such as Microsoft, Boeing and Starbucks.
-
Private School May Be Free If You Make Less Than $75,000
Harvard, Yale and Dartmouth set the pace. Now several top private schools are offering free or greatly reduced tuition for children from families making less than $75,000.
- More articles:
Why Private School,
Choosing a Private School,
Elementary Issues,
High School Issues,
Jobs in Private Schools
Note: Data has been gathered from the Dept. of Education, schools, and commercial data sources.
