Financing Basics

You and I can understand the average cost of tuition of private schools as detailed in Private School Review by being aware of a couple of factors. We will take a look at those factors and also show you how the cost of a private K-12 education varies from region to region. That way, if you have to move from one location to another, you will have a general idea of what to expect as far as your private school expenses go.

We will begin with a look at how the cost of elementary schools compares with schools offering high school grades.

Costs subsidized by religious organizations

Let's examine one reason why average tuition costs can be less in one area than in another. That has to do with the number of religious schools included in the statistics. I am not being negative here. Just factual. Faith-based schools, be they Roman Catholic, Jewish or Christian, or any other religion, tend to be subsidized by their religious organizations. For example, a temple that establishes an elementary school will do so to serve its congregation in the first instance and then as an outreach to the wider Jewish community in the second instance. The tuition generally will be discounted for families who are members of the temple. This practice is similar to how state universities charge less for students who are state residents as opposed to students who are from out of state.

This video offers an overview of

Comparing private school tuitions from one school to another is in so many ways the classic apples to oranges comparison. Why? Because each private school is unique. Each school has its own expenses and sources of revenue. But the variables implicit in the calculation of tuition cost are what drive the numbers. Income and expenses are unique in the same way each private school is unique. With that apples to oranges analogy in mind let's look behind the numbers we see on Average Private School Tuition Cost here on Private School Review.

Understanding tuition

In its simplest form tuition is the amount of money that a school charges for educating your child. Tuition is revenue or income on the school's balance sheet. This is the dollar figure which a school has to charge per student in order to offset all the many and varied expenses of running the school.

To arrive at the amount to charge per student the school has to add up all of its expenses. From that total, it subtracts any income from investments, endowments, and gifts. That net expense is what our tuition charges must offset. To remain viable a school simply must balance its budget. It cannot spend more than it takes in. If it does, it will soon go out of business.

The number of students for which a school has places is the next part of the calculation. For example, if you only have places for 350 students and your

Many parents think that tuition insurance is a waste of money or that they really don’t need it. I suppose that if you happen to be fabulously wealthy, losing $30,000 or $40,000 because your child has to withdraw from her private school might not be a big deal. But for the rest of us, that's real money.

Here’s why you are required to take out tuition insurance. 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. The school has to know that the fees on which it is counting to balance its budget will indeed be there, regardless of whether or not your child is at school or has withdrawn.

Here is how one tuition insurance provider explains the concept:

"The cost of a private school education is a substantial investment. The Tuition Refund Plan provides insurance to protect your investment. Because student withdrawals are sometimes unavoidable, the Tuition Refund Plan is a welcome resource for families who must

The cost of a private school education ranges from virtually nothing at several free schools to well over $125,000 at a couple of exclusive European boarding schools.

• This doesn't include all the extras such as riding or music lessons, school trips, travel to and from the school, local transportation, health insurance, computers, and so on.
• These sundries add up quickly, so don't forget to take them into account.
• Also not included are acceptance deposits, application fees, and admissions testing.

Examples of Private School Charges

• Remember that this is merely a sampling.
• Explore every school that interests you thoroughly as part of your school search process.
• Set aside financial concerns for the moment.
• Focus on finding the school that is the best fit for both you and your child.
• Paying for private school tuition is obviously a major concern. Most schools will offer financial aid as well as other options.
• Visit school websites in order to determine the current costs. Find that information under the admissions links.

Day Schools

Day schools are non-residential schools.

• Most of them offer classroom instruction from 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, particularly varsity sports.

Many day schools offer a full range of grades from pre-kindergarten through to Grade 12.

• Some schools even offer a PG or Post-Graduate year as well.
• Essentially, most of these day schools function as

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.

This video offers an overview of Church Farm School.

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 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