Financial Assistance Basics & Myths

Every private school has its own policies about who receives financial aid, what types of aid are awarded, and how much aid a particular family will receive. In most cases, the financial aid office cannot tell you if your family will qualify for financial aid until you submit an application that allows the school to evaluate your unique situation.

HOW SCHOOLS DETERMINE ELIGIBILITY FOR FINANCIAL AID

To determine your eligibility for financial aid, you must submit an application form and financial statements. There is no income limit that automatically makes your family ineligible for financial aid. Financial aid officers take into account your income, assets, and expenses, including educational costs for other children. 

Bottom line: If you feel your family cannot afford to pay the full cost, regardless of your income, it’s worth the effort to submit a financial aid application.

WHEN TO APPLY

Every school has its own financial aid schedule, and the deadlines are different for schools with rolling admissions. In general, most financial aid applications are due in January or February. Check with your school of choice for the deadline. You will receive a financial aid decision shortly after your child is admitted to a particular school.

TYPES OF FINANCIAL AID AVAILABLE

Grants are the most common type of financial aid offered by private schools. They are awarded annually to students who demonstrate financial need, and students must re-apply each year. Grant money comes from the school’s budget and does not have to be paid back.

Merit scholarships awarded by the school are rare and are usually reserved for students who have a special talent that the school is seeking, such as art, music, or academics. Generally, scholarships are based on financial need. They may be awarded once, annually, or as long as the student meets the scholarship criteria.

Scholarships from outside organizations are also rare, and often awarded by local chapters of national groups like the Rotary Club. Ask the school for a list of organizations that have provided scholarships to their students in the past, and check the list on parents.nais.org. Each scholarship program will have its own eligibility rules, application, and deadlines.

Tuition loans are personal loans provided by a private lender. You must apply directly to the lender, and your loan amount and interest rate will depend on the lender’s credit requirements. Some use loans to pay for expenses not covered by a grant. 

Tuition Payment Plans allow you to make monthly payments rather than writing one or two large checks each year. Schools offer payment plans through a third-party financial services company, which charges a relatively small fee.

Sibling discounts are designed to help families with more than one child enrolled in the same school. Many schools are shrinking these discounts, or phasing them out altogether. Even so, it’s worth asking if this situation applies to you.

Most families pay for tuition through a combination of these options. The school’s financial aid officer can help you create a financing plan that fits your family’s needs. Don’t hesitate to ask questions and explore all the options available to you.

Myths About Financial Assistance

Myth: An independent school education is out of reach for all but wealthy families.

Reality: Tuition can be expensive. But hundreds of private schools offer financial assistance to make sure that the students they’ve admitted have a realistic chance to enroll, no matter what their families’ financial status.

Myth: All schools our child applies to will offer our family the same financial aid package.

Reality: How much assistance you receive may vary a lot from school to school. The amount a school can offer depends on factors such as the size of its endowment, its tuition costs, and its philosophy about providing aid. If your decision to send your child to an independent school depends on getting some financial help, it pays to apply for aid at more than one school.

Myth: The deadlines for admission and financial aid are the same. 

Reality: Often the deadlines are not the same. Check with each school (the deadlines are usually on the school’s website), and be sure to keep track of what you must do when. Do not wait to begin the financial aid process until after you receive an admission decision. It pays to complete both admission and financial aid applications at the same time, even if they’re due on different dates; plus, many schools require that they be done at the same time.

Myth: The financial aid application process is complicated.

Reality:  There’s some truth to this one, but schools’ financial aid offices are working hard to make the process as clear and convenient as possible. More than 2,100 schools use SSS, School and Student Services by NAIS, to help them make financial aid decisions.  This means you may only have to fill out one form to apply for financial aid at several schools. The form and instructions are available online. In addition, many schools offer financial aid workshops, and staffers welcome your calls any time you have questions.

Myth: If we tell the school our family needs financial aid, this might hurt our child’s chances of being admitted.

Reality: The typical school will not reject a qualified student’s admission application because the child is applying for financial aid.  That said: Admission is not a guarantee that the student’s family will receive financial aid. The amount of aid depends on the family’s eligibility and the funds the school has available.

Myth: It’s too intimidating to talk to the school about our private financial matters.

Reality:  The school is your very best source of realistic information about the procedures and timelines for getting aid and of advice about the types of financial assistance available. The members of the financial aid staff want you to turn to them for help.