US Private School Tuition Nears $50,000 as Inflation Lifts Costs

The cost of private education in the United States is soaring, with inflation pushing tuition fees to unprecedented heights. According to an annual report by S&P Global, the average annual tuition for day schools increased by approximately 7.4% to $49,284, while boarding schools saw a rise of about 5.3% to $73,080. This marks the largest tuition increase for day schools in at least a decade, based on data from 53 private schools.

The surge in tuition fees is partly attributed to schools not raising fees during the COVID-19 pandemic. However, inflation has since increased costs for teacher salaries and materials, necessitating higher fees from students. An S&P Global representative noted that schools previously tried to keep tuition low to maintain market share, but now appear to have more control over pricing standards.

Despite the significant tuition hikes, demand for private schools remains robust. Approximately 60% of schools reported an increase in enrollment for the fall of 2024 compared to the previous year, with 8% of schools experiencing an enrollment growth of over 3%. Analysts caution that the rise in tuition comes amid demographic shifts, with a declining number of school-age children. Additionally, the increasing availability of school choices and voucher programs may lead parents to opt for more cost-effective options based on their state's specific circumstances.

The expansion of school "choice" (i.e., voucher) programs, which subsidize private school tuition with taxpayer funds, has sparked debate over their fiscal impact. An EdChoice report claims these subsidies save taxpayers money since per-pupil voucher costs are typically lower than public school spending. However, its estimate of how many students switch due to vouchers—rather than using them for a private education they’d pursue anyway—is invalid. The report also ignores that public schools serve more high-need students, inflating costs. Flawed methodology further underestimates voucher program costs, making the report’s weak evidence, poor theories, and slapdash methods useless to policymakers.

In conclusion, the recent surge in private school tuition, driven by inflation, has made private education less affordable and accessible for families across different income brackets. The varying tuition costs across different types of private schools and states may further exacerbate the financial burden on families, particularly those with lower and middle incomes. As private schools balance the need to maintain financial stability with the desire to remain accessible to a diverse range of students, they employ strategies such as tuition adjustments, financial aid, and strategic enrollment management to achieve this balance. However, the increasing cost of private education may lead to a shift in the balance between public and private schools, as well as the potential for school choice programs to expand.