Is Australia the most private school-obsessed country in the world? With comparatively cheap fees compared to the UK and US, one third of parents are currently sending their kids to private schools.
In Australia, one aspect of the education system that stands out is the accessibility of private schooling. While elite private schools can charge upwards of $30,000 per year, there are also more affordable options, with some schools costing only a few thousand dollars annually.
This affordability has made private schooling a feasible option for many middle-income families—unlike countries such as the UK, where private education is often out of reach due to high fees. In fact, only 5.9% of children in the UK attend private school, compared to a much higher 37% in Australia.
However, while the initial cost of private schooling in Australia may seem more manageable, it’s important that parents consider the long-term affordability. A family’s financial situation may change during the 13-year schooling period, and external factors such as job loss, illness, or divorce can significantly impact their ability to meet these costs.. According to the Australian Financial Review, the average annual increase in school fees is currently 6.4%, higher than inflation.
As cost-of-living pressures continue to mount, many parents are turning to online platforms like Reddit to seek advice on managing school fees. Some families are opting to take out loans from educational loan providers such as Edstart, fall back on credit cards or increasing their mortgage to cover school fees.
Managing school fees
Trevor Greenhill is Managing Director at Cloud Payment Group. With grown children of his own who have been through the school system, he said his best advice is to plan ahead.
Think ahead and plan your finances early. If possible, saving for those expensive higher school fees whilst your children are still young or consider enrolling them in public primary schools and saving for private secondary education instead.”
For families already enrolled and facing this year with 2024 school fees still on the credit card, Trevor offers a number of suggestions for parents before the debt burden becomes all encompassing.
- Communicate Early: If you are struggling to pay school fees, it’s important to reach out to your school as soon as possible. Speak with the principal about any change in situation.
- Negotiate a Payment Plan: Aim to keep paying what you can, and work with the school to establish a payment plan that is realistic for your financial circumstances. Make sure to get any agreement in writing and stick to the plan.
- Explore Assistance Programs: Ask the school about any student assistance schemes that may be available to support families in financial hardship. These programs are also available for private school students.
- Request Fee Reductions or Waivers: In some cases, schools may be willing to reduce or waive fees, particularly if your family has a long history with the school, or if your child has excelled in academics or sports.
- Look for Scholarships: Check if your child is eligible for any scholarships that could help reduce school fees.
- Reevaluate Your Family Budget: Consider cutting back on other areas of the family budget—such as annual holidays or after-school activities, to make school fees more manageable.
- Consider Changing Schools: If affording the fees seems impossible in the foreseeable future, you may need to consider transferring your child to a more affordable school. Despite the inevitable disruption to your child, remember it is preferable to the stress of heavy debt.
Some schools will stop children from graduating or even attending their school formal due to unpaid fees, but in my view, it would need to be a quite long-standing debt for that to occur. Parents really need to consider the implications for school debt beyond the immediate financial burden and take action as soon as possible.