The Education Data Initiative finds the average family will spend over $300,000 per child sent to private school from kindergarten through college. Put in this perspective, many families will question whether private education is truly affordable for them.
Schools can assuage this doubt with one trick—making tuition as easy as possible. Whether that’s through payment plans, convenient payment options, extensive financial aid, and/or helpful communication, schools have the means to make education accessible to their community.
The nature of payments can be a sensitive subject, requiring compassion and understanding. We’ll explain how to approach families about tuition with these tips and best practices.
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How to Discuss Tuition Payment Options with Families
Few families can afford to pay for independent school tuition in one lump sum. Instead, most would prefer to make monthly or semesterly payments to align with family income schedules. Clearly explaining any tuition payment plans and options can help yield more families during the final enrollment stages.
Follow these four strategies when discussing tuition payment plans.
1. Be Transparent and Empathetic
Clearly outline the total cost of tuition and fees in a sample tuition bill via handout or school webpage, listing the different payment plan options available, in addition to the income and achievement factors contributing to financial aid.
Answer tuition-related FAQs honestly with as many details as possible. Understand independent school is an investment that many families make sacrifices to afford, so having flexible payment options may be a convincing factor.
2. Visualize Financial Scenarios
Every family brings different family income, financial stability, interests, and assets. Help each visualize how their unique scenario impacts the total cost of attendance, via interactive calculators.
Different payment plans may impact the total amount to be paid. For example, if a plan offers a ten-percent discount for paying in full before the first installment deadline, a family will pay less on that plan than paying in monthly installments. Let families see how each option or discount plays out with a tuition calculator accounting for every factor.
Similarly, having a financial aid calculator on your school website lets families better understand how their unique circumstances will impact expected awards and overall tuition fees to pay. Include all relevant factors such as total income, number of students, and non-retirement savings.
3. Promote Financial Aid Options
Families may not realize the breadth of financial aid opportunities your independent school offers. Highlight any financial aid or scholarships that are available through your school and local outside sources, such as private organizations and businesses.
Encourage parents to apply for any school vouchers or tax relief programs available in your state. You can also introduce different savings accounts with tax advantages, such as:
- 529 Plans: Also known as a Qualified Tuition Plan, a 529 plan is a state-administered savings and investment account that offers tax-free earnings and withdrawals for qualified education expenses like K-12 tuition.
- Coverdell ESAs: A Coverdell Education Savings Account (ESA) is a trust account that also offers tax-free earnings and withdrawals for educational-related expenses. Coverdell ESAs are more flexible in how you can spend them. Qualified expenses include tuition, textbooks, uniforms and other school supplies.
4. Be Patient
Give families time to compare all tuition payment options so they can make the right decision. It can also take several weeks to hear back from grant and scholarship applications. Be available to answer any questions that may pop up while they decide.
Prepare for Common Tuition Questions
As families research different payment options, they are bound to ask many questions about tuition payment schedules, expected family contribution calculations, and financial aid. Here are some common questions your team should be prepared to answer:
What Is Included with Tuition?
Prepare a pamphlet or digital document that you can share with families that outlines all the courses, services, and amenities included with tuition. This will help families visualize the total expenses while highlighting the true value of your education.
Are There Other Costs Besides Tuition?
Outline any other costs besides tuition that families are responsible for paying. For example, you may charge separately for the following:
- Meals
- Books
- Uniforms
- Field trips
- Extracurricular activities
- Transportation
Do You Offer Financial Aid?
Be prepared to discuss the financial aid options available through your school and community. Encourage families to apply for as many grants and scholarships as they are eligible to receive. Families may also ask other financial aid-related questions like:
- How many students typically receive financial aid?
- How much is the average grant or scholarship worth?
- What is the deadline to apply for financial aid?
You might also inform families about any aid available for non-tuition-related expenses.
Can I Negotiate Tuition?
Parents and guardians are learning that many independent schools are willing to negotiate their prices for lower-income families or extenuating circumstances. Establish a negotiation policy in advance so administrators and consultants know how to respond when discussing school tuition. If you’re unable to reduce your tuition and fees, you can work with families by offering longer payment schedules or discounts for paying upfront.
Sending Tuition Payment Reminders
Families are busy and can easily lose track of payment deadlines. Sending payment reminders helps them stay on track and avoid late fees. Following up on payments also ensures that your school receives the necessary funding to operate.
Effective payment reminders are subtle and not overly demanding. Consider these best practices for sending tuition payment reminders:
1. Use Sensitive Language
The goal of a tuition fee reminder message is to help busy families remember to pay on time, not to embarrass or offend them. Use sensitive language with a polite tone and express your gratitude for their support. Give automated messages a personalized touch by adding the name of the caregiver or student. Provide an email address or phone number that families can contact if they have any questions or concerns about their bill.
2. Don’t Go Overboard
If you bombard families with multiple payment reminders a week, they become ineffective. The appropriate times to send payment reminders or updates are when:
- The next payment is due soon
- The family has missed a payment
- There remains an outstanding balance
- The next payment includes additional fees
Be sure to keep the reminder short and simple, with only essential information like the amount, due date, and available payment methods.
3. Use Automated Templates
Sending tuition fee reminder messages manually takes many hours and increases the risk of mistakes. Use automated templates to streamline the process and free up your administrative team to expand what they have time for. Create one template for each type of reminder you plan to send. For example, use this template for upcoming tuition payments:
Hello [Caregiver’s name],
This is a friendly reminder that your child’s next tuition payment is due on [due date]. You owe [amount]. Submit your payment online at [website].
Kindly disregard this message if you’ve already made this payment. Please call [phone number] with any questions or concerns.
Thank you!
4. Clearly Explain Payment Options and Instructions
Complicated payment procedures discourage families from paying their balance on time. Improve your school’s tuition collection rates with clear and simple instructions on how to make a payment. Start by explaining the payment process during your initial financial planning meeting with the family. Then, include follow-up instructions in your payment reminders. Consider adding a convenient link to the student’s account or payment platform as well.
Make Quality Education Accessible
Navigating the realm of independent school tuition need not be a daunting journey. As schools seek to accommodate diverse family financial situations, timely tuition payment reminders can pave the way for more accessible and inclusive education. Remember, the key to these discussions lies in compassion and understanding.
By following the tips and best practices outlined in this blog, you’ll be better equipped to engage in constructive conversations with families, ultimately ensuring that quality education remains within reach for all.
