Many families may desire to attend your school, but they simply can’t afford it. Although there might be temptation to methods such as indexed-tuition and flexible-tuition and award a higher amount of funds out of the general budget, this should be avoided. An East Coast school, recently used this method to increase enrollment and took the funds from their annual budget. According to IRS records, the amount of tuition this school has collected has decreased by over $1,000,000 in two years, leaving their the books in the red with little chance of reversal and survival.
Scholarship Cap /// Take your school’s total annual expenses and divide by number of students to achieve the amount of tuition (ex. $2,000,000/200 = $10,000). For every full-pay student’s tuition add 10 – 15% (Tuition on the above amount would equate to $11,000 – $12,500). Your school’s administrators will use the percentage extra goes toward scholarships for students in need. To avoid such a situation, I suggest schools use these tried and true methods.
Work Study Program /// Students work a certain number of hours each week for a local company or nonprofit organization. The student’s wages are donated back to the school for tuition.
Hybrid Program /// Students attend courses 2 or 3 days per week, and complete work from home the other days. This helps lower the cost for families, and decrease the number of scholarships a school must supply.
Guardian Angel /// Guardian angels (individuals, families, foundations, organizations or corporations) commit to ease the financial burdens of deserving students by covering full or a portion of tuition costs for a predetermined amount of time.
Work Credit Program /// Families who may need assistance with their tuition may participate in a Work Credit Program. The program allows parents the option of paying of combination of tuition and service time by performing specific jobs. Example, instead of your school hiring cafeteria staff, the Work Credit Program allows families to perform those duties and defray tuition costs. The Work Credit Program is considered taxable income and must be reported at the end of each calendar year.