NAIS Senior Research Analyst
Overview
As schools grapple with the complexities of evolving financial landscapes, there is a growing recognition among school leaders and administrators of the importance of adapting to meet the diverse needs of their communities. Amid these changes, more and more schools are showing interest in exploring flexible tuition models as a means to foster greater inclusivity and equity within their student body. School leaders are interested in learning about shifts in tuition models and the benefits experienced by schools employing flexible tuition models.To gain insights into these shifts, in December 2023 NAIS conducted a survey of business officers at NAIS schools. A total of 298 respondents participated in the survey, representing a response rate of 27%. Additionally, NAIS conducted interviews with heads of school, admissions officers, and business officers to delve deeper into the nuances of these emerging trends. Interviewees were selected from diverse school settings, encompassing various geographical locations, institutional characteristics, and personal demographics. The findings of this research are detailed below.
Executive Summary
- Only 9% of respondents reported that their school employed a flexible tuition model, with the remainder, 91%, indicating otherwise.
- Among those implementing flexible tuition, durations varied, with 31% reporting that they had been using a flexible tuition model for under one year; 23% between one and three years; 19% between three and five years; 19% between five and 10 years; and 8% for more than 10 years.
- Terms used to describe flexible tuition models included flexible tuition (19%), individualized tuition (19%), indexed tuition (11%), tailored tuition (8%), variable tuition (6%), and others (36%, with various responses).
- Reasons for implementing flexible tuition models involved softening language around financial aid in order to foster affordability and increase enrollment (69%), increasing representation of lower-income families (24%), and helping overcome financial barriers for higher-income families (7%)
- Methods for determining tuition amounts varied, with 56% using a combination of calculation method and personalized conversations, 39% using an external calculation method, and 6% an in-house calculation method. No respondents (0%) reported engaging in individual conversations with applicants.
- Schools reported that adoption of flexible tuition models led to increased enrollment from low-, middle-, and high-income families, with 41% reporting an increase among low- and high-income families, and 53% experiencing an increase among middle-income families.
- Additional benefits included an enhanced sense of community and inclusivity (33%), reduced financial stress for families (33%), improved retention rates (33%), and a greater ability to meet enrollment goals (53%).
Downloadable Content
- Read the full report: 2024 NAIS Survey on Flexible Tuition Models (PDF; member login required)
Additional Resources
- Independent School Magazine: The Changing Face of Financial Aid
- NAIS Toolkit: Reimagine Tuition