Editor's choice: LendingClub personal loans
- Coapplicants welcome
- Check your rate without affecting your credit
- May qualify with a credit score of 640
Sending your child to private school can open a world of opportunity. But private education can be expensive, with tuition ranging from $10,000 to $50,000 a year. Unlike college tuition, you won’t be able to finance private K-12 schools with a traditional student loan. This doesn’t mean you’re out of options. You can still finance your child’s education with other types of loans.
There are a number of ways you can finance private K-12 education, and many of these can be combined to help ease the strain on your budget when tuition payment comes around. Here are our top methods of financing your child’s private school costs:
Personal loans are a popular way to finance private K-12 tuition. Because personal loans rarely outline ways you must use the money, you can fund anything from tuition to uniforms.
Many lenders offer both secured and unsecured options, and with good to excellent credit, you may have access to low rates and loans up to $100,000 to cover your child’s education.
In response to increasing private school tuition, Sallie Mae has begun offering specialized K-12 education loans. These loans have low interest rates, much like personal loans, but Sallie Mae and other online lenders are often willing to finance up to 100% of tuition costs.
You’ll have to shop around, though. Interest rates can be fixed or variable and you may need to shell out for a few miscellaneous fees. Payments typically start immediately after your child’s school receives funds.
You won’t be able to pay for your child’s full tuition costs with a credit card, but it can be helpful if you need to purchase books or want to invest in an additional uniform. Many have lower interest rates than you’d find with a loan. There are even cards that don’t charge interest if you qualify for an intro rate. This period can last 15 months or more.
Keep the following points in mind when applying for any type of loan to finance your child’s private education:
The average cost of tuition nationwide is roughly $9,000 a year for elementary school and $13,500 a year for high school, but the exact cost will vary by school and by state.
However, your expenses won’t end there. You’ll also need to budget for common costs that can quickly add up, including:
If you’ve decided that a personal loan is the right choice to finance your child’s private school tuition, make the process easier by comparing lenders and prepping the documents you’ll need before you apply.
In general, you’ll also need good or excellent credit in order to qualify for large loan amounts at low rates.
Before applying for a loan, maximize cost savings on your child’s private education by looking into other financing options.
Private schools are a worthwhile investment, but they can be quite expensive. If you’re unable to cover the full amount of tuition and related expenses on your own, you do have options that can help ease the strain on your budget.
To learn more about personal loans, read our guide on your options and how to apply so you can make an informed decision about how to finance your child’s K-12 private education.
Acorns alternatives offer lower fees and more investment options. Learn more.
President Biden said he supports offering $10,000 in forgiveness for federal loans, plus a few other options. Here’s what to expect.
No-cost options are available, but these policies may not offer the coverage you need.
401(a) and 401(k) plans are retirement savings vehicles with tax benefits, but they have key differences.
Understanding your electricity bill can help you identify usage trends and lower your monthly cost. Plus, 4 tips to save money on electric.
Ways to protect your assets and what you need to know about marital debt.
Keep more of your money by aiming for a $0 tax refund from the IRS.
If your child gets sick or injured and has to take time away from college, tuition insurance can reimburse you for what you already paid.
Coverdell ESAs are tax-advantaged accounts that help you save for your child’s college expenses.
Teaching teenagers how to budget can be a tricky task. 7 experts give their best tips on how to budget for teenagers.