How To Pay for Private School: 8 Smart Ways To Cover Tuition

Private schools — both colleges and K-12 institutions — may offer the prestige or educational rigor you’re interested in, but they often cost much more than public options. Fortunately, planning ahead for these costs and lining up financial aid such as scholarships, grants, and loans can alleviate some of the burden. 

If you’re wondering how to pay for private school, this guide will help you plan for the cost.

Current private student loan rates

How much does private school cost?

The average cost of private school depends on what type of institution you’re talking about.

“There is a huge difference in the sticker prices between public and private colleges,” says Shannon Vasconcelos, senior director of education finance for Bright Horizons College Coach. “The typical two-year college is a public community college and is the least expensive option of all.”

In 2025-26, the average published price for tuition and fees at private, nonprofit four-year colleges was $45,000 per year, compared to $16,030 in the 2023-24 year at private, for-profit colleges, according to the College Board. Public colleges, on the other hand, average less than $12,000 per year at a four-year, in-state institution, $41,880 at an out-of-state school, and just over $4,000 at a two-year school.

For K-12 private schools, the average varies by school and grade level. For example, the 2025-26 tuition at The Buckley School in Los Angeles, Calif., ranges from $48,250 for grades K-5 to $56,800 for grades 6-12. Meanwhile, Asheville School, a private school in Asheville, N.C., charges $76,950 for boarding school tuition. 

How to pay for private school tuition

There are many tools you can utilize to pay for private school tuition. Some require repayment, while others don’t. Here are eight options to explore for your private school costs.

1. Scholarships and grants

Scholarships and grants are forms of gift aid, meaning they don’t need to be paid back. You can often get these directly from your school or through other sources, like community groups, trade organizations, and private companies.

“The best, lowest-cost way to pay for private school would be to maximize gift aid,” says Jack Wang, a financial aid adviser at Innovative Advisory Group who specializes in college planning. 

Gift aid can be need-based or merit-based. If your school doesn’t offer grants or scholarships,  or you’re not eligible for those they do offer, you can find external options through websites like Fastweb, BigFuture, or Scholarships.com. 

2. School-based tuition assistance

Your school may also offer some sort of tuition assistance. This could be reduced tuition if you meet certain conditions, or it may take the form of an extended payment plan that makes current tuition costs more manageable. 

“Many private K-12 schools offer tuition payment plans, which allow families to spread out tuition payments on a monthly basis, rather than having to come up with a large chunk of cash at once,” says Vasconcelos. “These payment plans often have small administrative fees associated with them, but are typically far more affordable than paying interest on a loan over a number of years.”

3. 529 or Coverdell accounts

Education savings tools, like 529 plans or Coverdell accounts, are another option. These allow you to save money, invest those funds in various portfolios, and then withdraw funds for education-related costs tax-free.

“While Coverdell and 529 accounts are generally thought of as college savings accounts, both can be used to pay for private elementary and secondary school expenses with tax-free earnings,” explains Vasoncelos. 

The recently passed “One, Big, Beautiful Bill Act” has expanded the use of 529 plans, particularly for K-12 schooling. Beginning in the 2026 tax year, you can withdraw as much as $20,000 per year, which can include expenses beyond tuition. 

4. Employer benefits

Many employers and private companies offer tuition assistance or reimbursement. They can give each employee up to $5,250 per year in tax-free tuition assistance. This may provide you the funds you need to help cover education costs for yourself or, in many cases, your children.

Some employers also offer scholarship and grant programs that you and your kids may be eligible for. Talk to your human resources department to learn about what benefits you may be able to take advantage of. 

5. Private student loans

You can also borrow money to pay for school. There are many lenders that offer private student loans for college, but loans for K-12 schooling can be harder to find.

“Federal student loans — the major player in the college loan market — do not exist in the K-12 space, and there are limited private loans designed specifically for K-12 tuition,” says Vasconcelos. 

For K-12, you’re more likely to need a personal loan. If you go this route, make sure to shop around, as rates can be high and vary by lender. 

“The most expensive way to pay for private college is by borrowing student and parent loans,” says Vasconcelos. “While you earn interest when you save, you pay interest when you borrow. That $100,000 loan could cost you $150,000.”

6. Education lines of credit

Some financial institutions offer education lines of credit, sometimes called student lines of credit. These function much like loans, only you have a line of credit you can withdraw from as needed. 

The benefit of this approach is that you don’t have to use it all, and you only pay interest on what you actually withdraw from the credit line. This can help you save on interest in the long run. 

7. Vouchers

Depending on where you live, there may be vouchers available for you to use toward private school costs. These are forms of tax-funded tuition assistance that you can use to pay for private or charter schools in your area.

Availability of these depends on your location. In Texas, for example, families will be able to get $10,000 in vouchers toward private school costs starting sometime in 2026. In addition to Puerto Rico, 15 states and the District of Columbia have a voucher program as of May 2025.

8. Family savings

Savings shouldn’t be overlooked, either. Putting cash into a high-yield savings account — such as windfalls you come into, like tax refunds or holiday bonuses — can be a great way to offset some of the costs that come with private school.

“While most families can’t afford to save enough to pay for the full cost of a private college, every bit helps. Every dollar you save is a dollar you don’t have to borrow and pay interest on, and that will save you substantial amounts of money,” Vasconcelos explains.

How do private school loans work?

If you’re paying for private college, federal and private student loans are both options you can explore. Federal loans typically have lower rates and offer unique borrower benefits, so they should be your first choice. You also won’t need good credit or a cosigner to qualify.

If you’re attending a K-12 private school and need to finance your tuition, you’ll need to look into private school loans through companies like LightStream, Republic Finance, and Addition Financial. The exact requirements and terms of these loans vary by lender, but you can typically expect:

• Shorter loan terms (1 to 10 years)
• Loan amounts up to $100,000
• Interest rates ranging from 6% to 30%

Since these are private loans, your credit is a factor when qualifying and setting your interest rate. If you don’t have much credit history or your credit score is low, you may need a cosigner on your loan to be eligible. 

Are private school loans tax deductible?

If you’re using student loans to pay for college, a portion of the interest you pay is tax deductible. But if you’re using a private K-12 school loan, tax deductions aren’t an option.

The best tax-advantaged strategy for covering K-12 costs would be to utilize a 529 education savings plan or a Coverdell account. These allow for tax-free withdrawals to cover qualifying educational costs. 

Tips for reducing private school costs

To reduce the costs of private school, it’s important to borrow as little as possible. Utilize savings, gift aid, and other forms of assistance before turning to loans. This will cut down on the interest you pay and minimize your costs.

You should also plan to apply for any aid early, when funds are still plentiful, and consider negotiating your tuition. This isn’t always a possibility, but some schools may allow it, particularly smaller ones. 

Finally, if you have to borrow funds, make sure you or your cosigner has strong credit before you apply, as this will help you qualify for a lower interest rate.