Private School Tuition

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Our school arranges for a 2.5% simple interest tuition loan through First Bank and Trust. 10 month amortization period, paid automatically on the 15th, costs me less than $200 per year to keep my liquidity to invest all year for the $10,000 tuition we pay for 2 kids.

Despite the irrational fear of paying interest on the money board, borrowing money (at simple or compound interest) to stay liquid and earn a higher return elsewhere is the better strategy. My $10,000 invested each and every year my kids are in school in the Vanguard 500 Index will earn far more than just about any rate I could borrow their tuition. I'm happy to pay ~$930 per month for 10 months so I can add another $10,000 every year to my investment portfolio and keep it there for the next 20 years.

(The math still works if you use a HELOC or some other low interest financing to pay tuition, provided you're investing in long term assets and retiring the tuition debt over the school year.)

There's no point using an elementary 529 plan due to short term volatility and limited time to accumulate funds. Elementary tuition is a short term expense that should be paid from current income, while you invest for yourself long term at the same time.

For college, I recommend you use the LA Start program for college because you get a huge $2,400 per child state tax credit (very valuable with current $10,000 SALT limitations) a little match bonus and 18-25 years to accumulate and reinvest without worrying about volatility. The Louisiana plan is actually one of the best rated plans nationally and has Vanguard funds with institutional expense ratios (0.02% expense ratio, $2 per $10,000 invested!)

If junior doesn't go to college, you can make yourself the 529 beneficiary and go to golf school or learn to be a sommelier or something else cool. Can't do that with an elementary 529.

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Our school arranges for a 2.5% simple interest tuition loan through First Bank and Trust. 10 month amortization period, paid automatically on the 15th, costs me less than $200 per year to keep my liquidity to invest all year for the $10,000 tuition we pay for 2 k

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That’s gotta be a parochial school. I don’t know of any private schools (non religious or military under $15k per student.
Most are over $20k

You must not be from New Orleans. Your tuition peaks from ages 0-2, then steadily declines through college (if you go to LSU). Catholic elementary is right around $5,300-$5,500 just about everywhere, Catholic high school slightly less, and high school tuition is higher than a year of tuition at LSU.

This does not include places like Newman or Country Day and Sacred Heart that cost $20,000+. Kindergarten at Sacred Heart is $14,000!!!

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u must not be from New Orleans. Your tuition peaks from ages 0-2, then steadily declines through college (if you go to LSU). Catholic elementary is right around $5,300-$5,500 just about everywhere, Catholic high school slightly less, and high school tuition is higher than a year of tuition at LSU.

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Catholic high schools are a little less than double Catholic elementary schools in the area. Not sure the last time you looked at the tuition numbers

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If the OP is in Thibodaux k-7 is approx. 4k and 8-12 is approx. 7.5K

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I’d go the public school route before I’d do parochial.

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Depends on where you live. Most of the public schools around NOLA are shite. If your kid can test into one of the advanced studies schools like Ben Franklin or Patrick Taylor then its good, but the regular public schools are complete garbage which is why parochial schools are so common in this area. Although parochial school enrollment has been taking a beating the past few years because there’s more magnet school options

Not true! Parochial school tuition at some of the top schools in NOLA are 10K for elementary and well worth it. Offer so much more electives and after school activities.