Sliding Scale Tuition

[Anonymous]

There are a couple independent schools around the country that use a sliding scale tuition program. Every family is charged a different tuition level based on their family income and assets and siblings. It is intended to eliminate the distinction between financial aid and full paying families and encourage more "middle class" families to consider independent schools. It also is designed to eliminate the tuition gap and the annual fundraising needed to fill the typical independent school's budget, though they still do lots of capital campaigns. These schools also set a maximum tuition cap so extremely wealthy families don't get charged $100k.

Here's an example of one such school http://www.manhattancountryschool.org/about-us/sliding-scale-tuition.

Any DC area schools considering such an approach? As parents, what would you think of this kind of tuition model? Would you find it more or less attractive when considering schools?

[Anonymous]

My understanding is Manhattan Country School is having to make some very tough financial decisions--like giving up their beautiful building. Sliding scale is a fine idea if it is sustainable. I think you need a large endowment to be viable.

[Anonymous]

sliding scale = sliding financial aid

[Anonymous]

I am not down with the "sibling" aspect. Why do people who make prudent financial decisions on having the kids they can afford have to be punished. Scale should be if you make under xxx dollars you get aid..above..no aid. Simple and fair.

[Anonymous]

Anonymous wrote:sliding scale = sliding financial aid

Agree. It's basically the same system most schools already use, just with a different name.

[Anonymous]

Anonymous wrote:I am not down with the "sibling" aspect. Why do people who make prudent financial decisions on having the kids they can afford have to be punished. Scale should be if you make under xxx dollars you get aid..above..no aid. Simple and fair.

Start your own school and implement your system.

[Anonymous]

Oh please..the poster wanted to hear various opinions and I gave you mine.

[Anonymous]

Anonymous wrote:Oh please..the poster wanted to hear various opinions and I gave you mine.

Your opinion is simple alright.

[Anonymous]

OP, I don't think people would go for it. Wealthier people tend not to like to disclose their financial information. I think what you have described is the way it works out in practice already, at least at our school. But those who pay more feel better about doing so in the form of a tax deductible charitable contribution. I think being required to pay more than others up front would be a big turn off for a lot of people, even though it would provide more cetainty for the school.

[Anonymous]

sliding scale = sliding financial aid

Same thing. Different name.

[Anonymous]

As a potential financial aid family, it would be nice to have a sense before spending a lot of money and time to apply, whether the school had the potential to be affordable.

Of course, I assume that these schools have different admission rates for students with different incomes. If it meant that families who potentially needed financial aid were considered equally that would be fantastic, but I can't imagine how that would work financially for the schools.

[Anonymous]

The system wouldn't work on a large scale because the well to do families would chose other schools that used the tuition they payed for teachers and facilities, not subsiding other families. Progressive taxation works only when you can throw people in jail if they don't comply.

[Anonymous]

Agree with the posters who state that to a certain extent the "sliding scale tuition" already exists, given financial aid on the one end of the income scale, and the high prevalence of annual giving on the other end of the income scale. Voluntary donations from the wealthier families, even in a culture that makes such giving de rigeur, still allows the donors to get the tax write-off for charitable donations as well as reap all the other psychological benefits of philanthropy.

So . . . I don't see it.

[Anonymous]

I don't see it either, for a number of reasons. This is not FA by another name.

[Anonymous]

A system like this is gaining in popularity among parochial schools who have a vested interest in affording religious education to all students who so desire and who simultaneously do not want families to limit birth rates.

Basically, the proposed systems include a tuition rate of 15-20% of the families income with a maximum of $30K per child (these schools regular tuition was previously $20K). Parents who paid the $30K were entitled to some sort of tax benefit for part of the tuition.