Dollars for Scholars: Private School is
 Not Just for the Rich

by Julie Hanahan

Private-school education is no longer the birthright of a privileged class. Today, many parents are investigating the options offered by private schools, either in response to a specific academic need or out of general dissatisfaction with their local public schools.

If you are considering a private-school education for your child, you are not alone. The National Association of Independent Schools reports enrollment in private schools has risen 19.4 percent in the last 10 years. In Ohio, of children age 3-17 enrolled in private schools, the majority come from families with incomes from $50,000 to $74,900 (U.S. Census Bureau 2000).

Whatever your family’s financial situation, private education may be an option.

"Don’t assume you can’t afford it" is the advice from Kristina Dooley, director of admissions for The Andrews School in Willoughby. "With the options available, many families find they can accommodate the costs, especially when weighing the benefits."

Stephanie Goldscher, director of admissions and communications for the Lillian and Betty Ratner School in Pepper Pike, makes this suggestion: "Apply to the school or schools first. Financial information follows the admission process."

After selecting the school or schools that offer the programs you feel would benefit your child, the first step is to contact the admissions office to request financial aid information. Complete a parent financial statement and provide certain tax documents. The National Association of Independent Schools offers this form online. Accepted by virtually all private schools, the filing of the application is free online.

Assistance is available for many families, even those with six-figure incomes, due to the aid formula used by many schools.

"Assistance isn’t simply based on income. We value the diversity of our students," notes Kevin Smith, headmaster of The Phillips-Osborne School in Painesville. "We set aside a significant portion of our budget each year just so we can provide this educational opportunity to a diverse group, both economically and culturally."

Parents who think they might not qualify may be pleasantly surprised to find that schools use an aid formula that goes beyond income. Families with other children in college or private schools, school loans or special circumstances such as job loss may receive help with tuition even if their incomes seem substantial.

On the advice of a tax advisor or financial planner, certain tuition costs may be deductible if the school is medically necessary due to a child’s physical or mental disabilities.

Payment plans offer another option. All schools will divide the tuition and fees into two or more payments. If lump payments are beyond reach, third-party payment plans such as SMART can spread payments over 10 months or more. This is a contract between the participating provider and a chosen school. Payments are made to the provider, who pays the school on the family’s behalf. These providers also offer additional programs, such as tuition insurance in case of the need to withdraw a child for medical or other reasons.

Traditional banks offer education loans and personal loans. Based on the bank evaluation of assets and credit, negotiate a payment plan which fits your budget. Locally, Key Bank offers education loans for up to $30,000 per year for students in K-12.

"Third-party programs are used by many of our students," Dooley said. "One program is prepGate, which works with families for children K-12." prepGate offers educational loan programs for all schools, including parochial, day, boarding and special needs.

Policies vary, but almost all schools offer scholarships or grants for students that require no repayment by the parents. Need-based and/or merit-based programs exist throughout schools in Northeast Ohio. Some also offer work/study programs, with students performing clerical or maintenance tasks at the school in exchange for financial aid or discounts.

Voucher programs, although available in Ohio, generally are not accepted in local private schools. Policies will continue to change, so parents should inquire at an individual school.

Other opportunities exist for parents of school-age children. Many schools offer a discount for children of school employees or reciprocity with affiliated schools for continuing education for the parents.

Most parochial schools in the area offer reduced tuition rates for families with two or more children enrolled. Independent schools typically do not, but multiple students in private education will be taken into consideration in offered financial-aid packages.

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Resources:

National Association of Independent Schools (NAIS), www.nais.org for free parent financial statement form and application submission

prepGate, www.prepgate.com, offers parochial, day, boarding and special-needs educational loans

SMART offers tuition management programs, including monthly payment plans, www.smartontheweb.com

Key Bank educational loans are available, with information at www.keybankeducationloans.com

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Courtesy U.S Census Bureau

School Enrollment-Social and Economic Characteristics of Students: October 1999.

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