Can You Afford Private School?

Can You Afford Private School?

"Tuition's One-Fifth of Our Salaries"
At a public school north of Boston, 14-year-old Rob was bringing home a report card of straight Fs. His mother Jackie feared he wouldn't make it through eighth grade.

"He has a learning style, not a disability, that's different from what's reasonable to expect public-school teachersto teach," she says. "After fighting for eight years with public schools, I finally decided on private school."

One year later, his transfer to a private boarding school in New Hampshire has apparently paid off for Rob.He's happy in an alternative program that stresses group discussions over use of textbooks in class.The innovative curriculum includes an extreme sports component, designed to encourage students to push themselves physically,as well as mentally. The boy's grades have shot up -- all Bs, save for one D in math.

"He's doing fabulously," says his relieved mom. "It's like night and day."

While Rob's academic record has improved, his parents' financial fortunes have taken a dive. This year, they'll paya whopping $31,000 for tuition and an additional tutoring program. Jackie has curbed herappetite for travel; she eats out less often, has put off needed home repairs, and for the first timeever, her two children will receive just two gifts each this Christmas, one from each parent.

"His dad said if we send him to private high school, we won't be able to afford college," Jackie recalls."I said if we don't send him to private high school, there'll be no need for the money for college."

Private School Demographics Changing
Much has changed since the days when private schools were seen as elite institutions serving only a privileged class.Today plenty of middle-class parents like Jackie are investigating the private school option,either in response to a specific academic need, or out of general dissatisfaction with their local public schools. According to the National Association of Independent Schools, private-schoolenrollment has shot up 19.4 percent in the last 10 years. While economic prosperity is one reasonfor the attendance boom, an increase in financial-aid budgets is also a factor. Last year,private schools awarded a record half-billion dollars in aid to families, most of whom were middle class, not poor.

"One third of students are on financial aid," says John White, admissions director at Thayer Academy,a secondary school in Braintree, Massachusetts. "We have a very strong financial-aid program.It's 17 percent of our operating budget, and the average award covers 60 percent of the tuition."

Surprisingly, even some parents earning six-figure salaries discover they qualify for assistance, becauseschools use an aid formula that goes beyond income to include assets and special circumstances. Familieswith older siblings in college, for example, or heavy debts due to medical bills, school loans, or job loss, may receive help with tuition even though their salaries appear substantial. Awardsare based on information provided on a PFS (Parent Financial Statement) and tax returns.

"What I tell middle-class families is, 'Go ahead and apply'," says White. "You never know."

Adding It All Up: Things to Consider