Myths & Facts About Raising Tuition

For some schools, the annual talk about raising tuition can sound less like a discussion and more like a debate. It usually starts with someone saying, “I just don’t think our parents can afford what we’re charging now,” or, “We need to keep tuition low so everyone can afford a Christian education.” And then there’s the classic line that almost guarantees trouble: “Let’s find out what other schools are charging and go a little lower.”

Since 1992, we’ve been running parent opinion surveys for Christian and private schools all over the world. After hearing from hundreds of thousands of parents, one thing has become clear—these kinds of conversations completely miss the point.

So, what is the point? Let’s start by clearing up a few myths and uncovering the real facts about raising tuition. MYTH #1: Tuition Must Be Priced So Everyone Can Afford It

We often hear, “We don’t want to price Christian education out of reach for the average family.” The truth is—you already have.

According to the Pew Research Center, about one-third of U.S. households earn less than $35,000 a year, and roughly 60% make under $75,000. Once tuition reaches more than 10% of a family’s net monthly income (or closer to 7% in areas with high housing costs), it starts becoming very difficult to manage.

Here’s a quick example: if your school’s annual tuition is $10,000, a family would need to make at least $100,000 gross just to pay tuition comfortably for one child—without any aid. And according to Crown Financial, families should ideally budget around 5% of their income for private education (differing slightly from the 7-10% recommendation above).

So, if you think your tuition is still “affordable for the average family,” it’s time for a reality check—it’s already out of reach for most. ​MYTH #2: Tuition Is the Most Important Issue When Parents Choose a Private School ​ You might think tuition tops the list when parents decide where to send their kids—but it doesn’t.

In our surveys, parents rate the factors that most influenced their choice of school. Out of twelve options, tuition consistently lands near the bottom—third from last, to be exact. On a scale of 1 to 5, only 12% of parents rated tuition as a “5” (very influential), while 21% said it wasn’t influential at all.

What does that tell us? Once parents are convinced that a private or faith-based education is what their children need, tuition usually becomes a secondary issue—not the deciding one. MYTH #3: Families Who Worry Most About Tuition Are the Ones With the Least Money You might assume that families with lower incomes are the most sensitive to tuition—but that’s not what the data shows. Once parents decide that a Christian or other private school is right for their child, income has surprisingly little to do with how much tuition influences their decision to enroll. In fact, parents earning under $35,000 rated tuition almost the same as those earning over $75,000.

The real difference between these two groups isn’t how they feel about tuition—it’s how they prioritize the private education option, manage debt, and how much they depend on tuition assistance to make enrollment possible. MYTH #4: If Tuition is Too Low, You Can Always Raise It It’s tempting to think that if tuition seems low, you can simply bump it up—but it’s not that simple.

Tuition is tied more closely to perceived value than almost anything else. And that perceived value comes from many areas of school life—your programs, your teachers, your facilities, your communication, and the overall experience families have.

Just raising tuition doesn’t automatically raise your school’s value. Usually, financial value increases when schools invest in things that families can see and feel—better programming, stronger staff, richer opportunities for students.

The best way to know whether your tuition should go up (or even down) is to gather solid data through a comprehensive parent survey. That’s how you find out what families truly think your school is worth. FACT #1: When Tuition Is a Major Concern, It’s Usually About Value—Not Income or Price

When parents worry about tuition, it’s rarely just about what they earn or what the school charges. It’s about value—whether they believe their investment is truly worth it.

Most parents assume a strong academic program and spiritual foundation are already in place. What really shapes their sense of financial value goes deeper. Over decades of providing our comprehensive Parent & Employee Survey to thousands of schools, these have consistently surfaced as the most influential factors:

• Policies. Especially financial aid, business, discipline, and fundraising policies. These tend to carry the most weight.

• Leadership. The strength of your internal organization, board leadership, and administrative leadership all make a measurable difference.

• Relationships. Parents want connection. Their relationship with the administrator matters most, followed by their interactions with teachers and the business office. Students’ relationships with one another and with teachers also play a key role.

• Atmosphere. A caring, responsive environment—marked by friendliness, school spirit, and positive student behavior—strongly affects perceived value.

• Public Relations. How often and how well you communicate with families. Both the frequency and the quality of your communication matter.

• Curriculum. The courses you offer, how creatively they’re taught, how clearly your school’s values are reflected, and how effectively students are prepared for college, career, and life all contribute to perceived value.

• Parental Involvement. When parents engage meaningfully with the school, their pride and understanding of its mission grow—so does the perceived value of their investment.

All of these factors either build or erode a school’s financial value. The key to strengthening it is intentional, data-informed planning. Develop measurable goals in each of these areas—and let reliable survey data guide you. That’s how schools move from guessing to truly growing.

FACT #2: Tuition Shapes How Families Perceive Value

In many cases, higher tuition and higher perceived value go hand in hand. But simply raising tuition doesn’t automatically make a school feel more valuable to families.

What truly raises perceived value is what the school does with those additional dollars—enhancing programs, strengthening staff, improving communication, and enriching the overall student experience. Every tuition increase should be clearly connected to how it helps the school better fulfill its mission and serve families well.

It’s also wise to adjust salaries and tuition together. When families understand that part of the increase supports teachers and staff, they’re far more likely to see it as an investment rather than just an added expense. FACT #3: Financial Value is Measurable, Can Be Changed, and Must Be Evident to Warrant a Tuition Increase Just like we saw in Fact #2, any significant tuition increase should be paired with a clear communication strategy and a thoughtful tuition assistance program. These aren’t optional add-ons—they’re essential.

Families are far more receptive to tuition adjustments when they understand why the increase is happening and see a credible plan to help those who may struggle with affordability.

While most private schools offer some form of financial aid, fewer than half have a well-structured program in place. Partnering with a third-party service—like SchoolRight's BeneFAQ (Financial Aid Qualification system)—adds objectivity and transparency to the process. It demonstrates professionalism, consistency, and a genuine commitment to fairness—all of which strengthen your school’s financial credibility and perceived value. FACT #4: You Don’t Need Impressive Buildings or Flashy Programs to Create Real Value

It’s easy to assume that a new building or a lineup of high-end programs automatically increases a school’s perceived value—but the data says otherwise.

Our Parent & Employee Surveys have consistently shown that while facilities and special programs do have some influence, they’re nowhere near the top of the list. Families care far more about things like leadership, relationships, communication, and the overall atmosphere of the school than about how new the gym is or how advanced the technology looks.

In short, financial value isn’t built by appearances—it’s built by trust, care, and excellence in the everyday experience families and students have with your school. CONCLUSION

Private schools do well to understand the real myths and facts surrounding tuition increases—and to seek objective, third-party guidance when navigating them. Working with an experienced partner like SchoolRight, LLC can help schools gain reliable insight and practical, values-based advice from consultants who understand both the financial and relational dynamics at play.

When tuition adjustments are well-planned, clearly communicated, and grounded in data, schools position themselves to strengthen their mission and prepare confidently for the future.

On the other hand, schools that make tuition decisions reactively—without adequate information or perspective—often face unnecessary criticism and long-term challenges that could have been avoided.

Snapshot of Schools in This Study

• At risk of closing in 2–5 years?

  • Yes: 8%

  • No: 92%

• Enrollment trend:  

  • Increasing (75%)

  • Stable (19%)

  • Decreasing (6%)

• Average school size: 408 students 

  • Less than 100: 3%

  • 100–250: 28%

  • 251–500: 38%

  • 501–750: 21%

  • 751+: 10%

• Years established

  • Less than 10 years (14%)

  • 11–25 years (57%)

  • 26–50 years (22%)

  • 51+ years (7%)

• Setting

  • Rural (13%)

  • Suburban (80%)

  • Urban (7%)

• Sample size: 10,000 recent responses
  

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