Affording Center School
Investing in your child’s education can be a difficult decision.
Choosing and paying for a private independent school is more achievable
than many families may think.
At Center School, we know that making this type of commitment takes a lot of planning, management of finances, and research. We are here to help you navigate your options as you embark on this journey to provide your child with the education they need and deserve.
We highly recommend that you speak to a tax professional, financial advisor, or professional familiar with private school tuition funding. Current tax laws may differ depending on personal financial obligations.
Funding a private school education
529 Savings Plan - a tax-advantaged savings plan designed to encourage saving for future education costs.
The 2017 tax reform package expanded the benefits of a 529 savings plan to include withdrawals for a private school education up to $10,000 per child per year to use towards tuition payments. Learn more about 529 plans.
Education IRA/Coverdell Education Savings Accounts - a trust or custodial account set up solely to pay educational expenses.
Similar to a 529 saving plan, a Coverdell ESA can be used to fund tuition for elementary and secondary schools and possibly other school expenses. According to the IRS, these distributions can be made tax-free if used for qualified education expenses.
Tuition Payment Plans - many flexible payment plans.
We offer tuition payment plans to help you budget over a period of time for your Center School tuition. Tuition can be paid in full at once, or in two or 10 installments. Families who chose the pay in 10 installments begin payment in June of the previous school year through March of the current school year. For families who choose to enroll mid-year, these plans may look slightly different as tuition is prorated.
An extended payment plan may be offered to qualified families who commit and enroll early for the following school year.
An extended payment plan may be offered to qualified families who commit and enroll early for the following school year.
Support from grandparents and other family members - tax gifts or personal contributions.
One in six families with children at independent schools relies on grandparents to help with the school fees, according to Independent School Parent. There are several ways family members can elect to support your child, such as adding additional contributions to a 529 plan or gifting a sum of money (up to $15,000 per year) to use for tuition from their personal finances. Additional information on gifts can be found on the IRS website.
K- 12 Education Loans - specialized education loans to cover school tuition costs.
Some traditional higher education lenders have started offering K-12 education loans as more and more families are opting for a private school education for their children.
Private Personal Loans - a popular way to pay for a private school education.
Private loans help to bridge the affordability gap of a private school education with fixed-rate terms and conditions. A private loan will allow for more flexibility to pay for tuition and any additional school expenses.
Health Coverage Tax Credit - Medical Benefit IRS Publication 502.
As of 2011, the IRS ruled that tuition for a special school that is designed to support and help students manage or overcome disabilities can be counted as a deductible medical expense if the primary reason for attending the private school is a medical benefit and the teacher is specially trained and qualified to work with children who have learning disabilities. This information is on page 13, in the IRS publication 502, “Medical and Dental Expenses”
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