While all public schools receive funding from the government, it’s a very different story for private schools. Public school budgets, on average, get a boost of less than 10% up to 12% from the federal government. Nearly half (45%) of its funds come from local taxes and less than 50% come from the state.
On the other hand, private schools must depend on its tuition and endowments. It could also hold fundraisers and receive funding from other sources, including grants for private schools (more on this below).
It’s important to know that there are funding options available for students enrolled in private schools because, let’s face it, costs are high. On average, a private K-12 school costs $12,350 and over $16,000 for high school per year, according to EducationData.org.
This varies, of course, depending on where you are in the country. For instance, if live in Connecticut, you’ll be shelling out more than $23,000 annually for K-12 tuition, on average. On the other hand, if you’re planning to enroll in a private school in Kentucky, you don’t have pay more than $7,000 out of pocket to study for a year in K-12.
Take note that this is only for tuition fees. There are other expenses that you need to consider too. These can vary depending on the school but may include fees for extracurricular activities, social events, athletic events, and yearbooks.
So, yes, even a little bit of funding for your private school education can certainly help decrease the costs. Some of these funding sources are listed below.
Sources of Funding for Private Schools
Despite what you might have heard, private schools do indeed receive some funding from the government and other institutions. Student assistance come in many forms, such as endowments or private scholarships, vouchers, loans, or other types of financial aid.
Financial aid from the government
- Funding for supplemental services provided
The Department of Education allocates funds for private schools that provide supplemental services under the Elementary and Secondary Education Act. These can be in the form of after-school tutoring or academic summer camps, but the school would first need to apply to their state educational agency (SEA).
- 529 Plan
This is a savings plan that’s available in the 50 states and the District of Columbia. The federal program allows you to contribute (maximum limits vary by state) to an account whose earnings will not be taxed nor will your withdrawals for qualified education expenses. Some states offer tax deductions or credits depending on your contribution amount. Best of all, there is no income level restriction – anyone can contribute. The best way to take advantage of this plan is to start early.
- Coverdell ESAs
Similar to the 529 Plan, this is a savings account that will not tax your earnings or withdrawals. There is an income level requirement, though, and maximum contribution is capped at $2,000 per student per year. And, you should use your savings before your student turns 30; otherwise, withdrawals will come with the usual taxes, fees and penalties.
Financial aid from or through the school and others
- Scholarships
One of the most commonly availed of financial aid in private schools, this can be a partial scholarship or a full one. Examples include the Pay it Forward Scholarship, the USA Singers High School Scholarship, the Cooke Young Scholars Program, the NYIT School of Architecture and Design Award Scholarship, A Better Chance, the UNCF Procter & Gamble General Scholarship, and the Caroline D. Bradley Scholarship of the Institute for Educational Advancement.
- School vouchers
This is a state-funded program that may vary from state to state. But, in general, voucher programs can help students pay off a partial amount of private school costs. Most school voucher programs also target low-income families.
- Tax relief
This option, sadly, is limited to just nine states as of this writing. It offers families tax credits and deductions for tuition and other private school expenses.
Another private schools funding source is grants.
Grants for Private Schools
Private school grants are funds used to pay for tuition or a research project. While most private schools do not receive funding from the government, they do offer institutional grants. You’ll have to meet eligibility criteria, such as a certain academic level or having a portfolio of work.
Below are some of the grants that are available to private schools in the U.S.
Federal grants for private schools
- The Federal Pell Grant Program – This is the largest federal grant program available for undergraduate students from a low-income household.
- The TEACH (Teacher Education Assistance for College and Higher Education) Program – Limited to eligible study programs at participating schools, you’ll have to accept a full-time teaching position in a high-need field at a low-income school or educational service agency for at least four years afterward.
STEM grants for private schools
- NEA Foundation – It has awarded $150,000 to the Hamilton County district in Tennessee to expand maker space usage and to Greeley, Colorado, district to align its K-12 framework to Next Generation Science Standards.
- Dekko Foundation – This is focused on early-learning and after-school programs, especially those promoting robotics and early-learning products.
- Cyber.org Technology Grant – This supports qualified extracuricular programs that provide cyber education for K-12 students.
- American Honda Foundation – It offers grants on science, technology, and mathematics.
- Advanced Micro Devices Inc. – This focuses on programs that improve K-12 students’ proficiency in science, computer technology, mathematics, and literacy.
Private school institutional grants
- Performance grants at Graceland University – This Iowa institution offers funding for students wishing to enroll in the fine arts, performing arts, and athletics courses. There’s an art grant, a theater grant, an athletic grant, and a vocal music and instrumental music grant.
- Faith-based grants at Centenary College of Lousiana – Students can submit an essay and be interviewed for the college’s Christian Leadership Center grant. There’s also funding for dependents of a United Methodist Miniser.
- Chaminade University grants – There are several available, including a Transfer Grant program and the Freshman Merit Based Leadership grant. Residents of Hawaii, graduates of a Hawaiian high school or community college can also avail of the university’s Hawaii Freshman Merit Based Leadership grant and the Hawaii Grant.
Grants for Private Schools
These are just a sampling of private school grants that are available to you. The best way to discover and learn more about them is to contact the private schools or check the financial aid section of their websites.