Private High School Loans
Fund Quality Education
The choice between a public or private high school education is one based on a number of factors. Depending on where in the country you reside, a public school system may be considered sub-par for your child’s educational goals. While this is unfortunate, such an environment often makes up for its shortcomings by providing an ample number of private alternatives.
State of Public High Schools
Over the last few decades, between federal budget cuts and dwindling numbers of public school teachers, the American public school system has pretty much been on a downhill slide. Certain regions of the country tend to attract higher numbers of teachers because of income level and standard of living. For instance, the bustling and cosmopolitan Northeast tends to attract more teacher candidates than the Deep South, where graduation rates are typically low. In response, more and more state governments are anteing up their own funds to repay teachers who are willing to work in underserved areas, often rural or inner city public school systems. The results may be indicative of trends that show a small, but discernible decline in the number of students enrolling in private high schools.
In the meantime, private high schools in fact remain a popular choice for many whose goals are to offer a solid college preparatory program that will have kids fast-tracked for good colleges and lucrative careers.
The Cost of Private
Private means money. Annual costs at a private high school range generally between $10,000 and $30,000, rivaling many college tuitions. For parents of means this may be de rigueur, but how do less solvent families finance this educational option while also battening down the hatches for an equally demanding college education? And, while national trends are indicating a small decline in these institutions, costs continue to spiral upward.
Types of Loans
In the past the only option for finding extra money for private school was to refinance your home or take out a home equity line of credit. But offering up the hearth and home to the economic gods has become slightly less ordinary thanks in part to increasing trends in the lending industry that have taken the demands of the whole American educational scene along with the needs of ordinary individuals to heart.
Not only does the lending industry provide aid, though. According to many experts in private education, most independent high schools maintain a financial aid program from which many of their customers draw. And on top of this there are increasing numbers of participants in tuition payment plans.
For example, Choate Rosemary Hall in Connecticut is one of the Northeast’s top private schools. The institution not only provides grants, but also administers their own Independence Foundation Loan. Various grade levels of students are qualified for a couple of thousand dollars in financial aid loans available directly through CRH.
Deerfield Academy in Massachusetts costs close to $30,000 a year for a non-boarding student. According to the academy over $5,000,000 is loaned to students each year depending on family situation.
Loan Products
Some of the most popular loans recommended by top private schools include:
- Chase Education One loans are a group of closely related products intended to offer students and families financial options for educational activities that are not normally covered by federal or private loans. The K-12 Education/Private School Loan is extended to creditworthy borrowers and offers those qualified up to $30,000 a year. The product promises quick approvals and a 48-hour turnaround on approved funds. Rates are reduced for borrowers who make timely payments and setup their accounts for automatic withdrawals.
- The AchieverLoan from KeyBank was created, like Chase’s, for the express benefit of helping finance annual tuition at private K-12 schools. The loan is intended to divert borrowers from the urge to take out home equity loans or refinance.
- Citiassist K-12 Loans from Citibank give borrowers the option to take out loans up to $15,000 per year. If you don’t qualify on your own, get a co-borrower to sign with you and repayment may be spread over 10 years following disbursement of the loan.
