FastStats: Tuition & Affordability in Independent Schools

In this FastStats, I explore the affordability of independent schools, an increasingly pressing issue over the past two decades. With tuition rising, families find it more challenging to access private education without significant financial aid. This analysis uses historical data from 2004 to 2024 from the National Association of Independent Schools (NAIS) and Southern Association of Independent Schools (SAIS), covering tuition, enrollment, financial aid, and net tuition revenue.

The visualized trends reveal the growing gap between rising costs and accessibility, offering insights into the financial landscape of independent schools.

Tuition Growth: Continuous Increase Across NAIS and SAIS

Tuition has aggressively increased in NAIS and SAIS schools over the last two decades, pressuring families who seek independent education for their children.

Key Data Points:

• NAIS schools have consistently charged higher tuition fees than SAIS schools, though both associations exhibit consistent beyond-cost-of-living growth over time.
• From 2004 to 2024, NAIS tuition rose from $14,622 to $31,088, while SAIS tuition increased from $10,854 to $24,000.

Enrollment Trends: Flat Growth Despite Rising Costs

While tuition has increased, overall enrollment has remained flat in both NAIS and SAIS schools. This lack of substantial growth underscores the affordability challenge facing many independent schools.

Key Data Points:

• Over the past two decades, median NAIS enrollment has fluctuated between 350 and 380 students, while SAIS enrollment has ranged between 600 and 650 students. As a side note, the difference in total enrollment of SAIS versus NAIS schools is that, proportionally, SAIS has more K-12 schools.

Net Tuition Revenue: Stability Through Rising Costs

Despite flat enrollment, net tuition revenue has grown for NAIS and SAIS schools, primarily driven by consistent tuition increases. However, this growth may not be sustainable in the long term if enrollment remains stagnant.

Key Data Points:

• NAIS schools saw net tuition revenue increase from $4.7 million in 2004 to $9.8 million in 2024.
• SAIS schools experienced similar growth, with net tuition revenue rising from $5.4 million to over $12 million.

Financial Aid Trends: Expanded Aid, Yet Insufficient

Independent schools have expanded their financial aid programs in response to rising tuition. However, despite the increase in aid, it still lags behind tuition growth, leaving families to cover significant out-of-pocket costs.

Key Data Points:

• The total financial aid awarded by NAIS and SAIS schools has risen significantly but has not kept pace with tuition hikes.
• NAIS schools awarded over $1.6 million in financial aid in 2024, compared to $555,710 in 2004, while SAIS schools increased from $405,396 to $1.59 million.

Optimizing Financial Aid: Strategic Recommendations for Schools

To better balance rising tuition and financial aid, schools must explore strategies to optimize their aid offerings and ensure sustainability. Based on the data, several strategies emerge:

1. Data-Driven Aid Allocation: Schools should use detailed financial data to target aid to families with need, prioritizing need-based aid over merit-based scholarships.
2. Maximizing Tuition Discounting: Schools can use tuition discounting more strategically to reach families in need, with less potential impact on financial stability.
3. Alternative Revenue Sources:
   • Annual Fundraising Campaigns: The vast majority of our schools run annual campaigns targeting parents, alumni, and the community. The question then becomes whether the school is maximizing its potential. First, check DASL for benchmarks based on your school size, type, and location to determine if you are at least at the medians. If not, explore and discuss. For example, Currey Ingram was below benchmarks for current parent participation with our annual fund, and we tried the usual strategies that involved more nuanced and comprehensive communication. This worked somewhat. But it was the start of a House Program and the awarding of House Points for students if their parents participated that increased current parent giving from 45% to 65%.
   • Revenue-Generating Events: Fundraising events like galas, auctions, and golf tournaments can raise significant funds. For example, a school might host an annual gala with a silent auction, raffles, and sponsored tables. To me, this is where a school might leverage a well-known person in their community. Many of our schools have celebrities, and, if they are willing, this may be how to best utilize their talents.
   • Endowment Income: Schools can succeed with financial aid campaigns or fundraisers. In the same vein, schools often offer naming opportunities for large donations.
   • Grants and Foundations: Independent schools can apply for grants from private foundations or government programs. The EE Ford Foundation provides generous grants specifically for independent schools.
   • Summer Programs and Camps: Many schools generate revenue by offering summer camps, academic programs, or specialty camps like robotics or sports. A school might run a six-week summer camp that draws students from outside the regular school population.
   • After-School Programs and Extracurricular Classes: Schools often charge fees for extended-day programs or specialized extracurriculars, such as music lessons, language courses, or coding classes.
   • Facility Rentals: Our schools are often blessed with awesome facilities like gyms, theaters, and auditoriums. Rentals for community events, sports leagues, or corporate meetings may be possible. For example, we rarely use our gyms on the weekend, so we have a long-standing rental with the county youth basketball program.
   • Community Outreach: There are numerous ventures that fall under the heading of Community Outreach, including:
     • The creation of satellite sites in other parts of the city, country, or even world. The basic premise is that the founding school provides some degree of its brand and expertise in exchange for market share.
     • Many schools offer teaching institutes and other for-profit training programs, either in-person or online.
     • Schools have even ventured into diagnostic, counseling, and childcare services.
   • Corporate Sponsorships and Partnerships: Schools sometimes partner with businesses. For instance, a local business could sponsor a school’s sports complex or annual gala, which provides visibility to the sponsor. At Currey Ingram, we partnered with a professional sports team that now runs its Youth Academy on our property. To do so, a comprehensive upgrade to our facilities was required, the cost of which the sports team covered. Now, both the sports team and the school benefit from state-of-the-art athletics facilities.
   • Real Estate Investments or Leasing: Schools with unused property may lease or develop it as a long-term revenue source. An example might be leasing out adjacent land for office space or a community park.

Conclusion: The Future of Affordability in Independent Schools

The data reveal a clear trend: while independent schools have increased financial aid and net tuition revenue, rising costs continue to outpace family income growth. Independent schools risk becoming inaccessible to middle-income families without meaningful changes to aid allocation and tuition structures.

To ensure long-term sustainability, schools must adopt innovative financial aid strategies, expand endowments, develop alternative tuition models, and expand revenue sources. The trends outlined in this report suggest that, while schools are making strides in addressing affordability, more needs to be done to close the gap between costs and financial aid.

This article integrates data from NAIS and SAIS schools, providing a comprehensive view of tuition and affordability challenges and opportunities. The visualizations presented offer a clear snapshot of the ongoing tension between rising tuition costs and the efforts to make independent education accessible for all​.

As always, I am happy to answer any of your questions.

Dr. Jeffrey L. Mitchell 
Head of School
Currey Ingram Academy
Brentwood, TN

---

Dr. Jeffrey L. Mitchell is the head of school at Currey Ingram Academy in Brentwood, TN, where he has been since 2014. Prior to coming to Currey Ingram, Dr. Mitchell served for five years as head of Tuscaloosa Academy in Alabama, four years as director of Park Tudor Lower School in Indiana, and as a teacher and administrator for 11 years at St. George’s School in Vancouver, British Columbia. He received his B.A. from the University of Winnipeg and both his master’s in educational administration and his Ph.D. from the University of British Columbia. His passion is educating students with learning differences.