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lsusaint86
Nicholls St. Fan
Thibodaux
Member since Nov 2009
132 posts

Private School Tuition
For those of you who have kids that attend a private school, what is your preferred method of savings that you pull those funds from? Savings Account, Money Market, Brokerage Account, 529 K-12, etc.





jralspanky
Fargo
Member since Apr 2009
798 posts

re: Private School Tuition
We just paid it yearly


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92
SaDaTayMoses
LSU Fan
Da Platte
Member since Oct 2005
2853 posts

re: Private School Tuition
check book checking account


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200
Phate
New Orleans Saints Fan
Baton Rouge
Member since Mar 2006
11190 posts

re: Private School Tuition
I have a son starting Kindergarten in August. We're going to pay this upcoming year and then put funds in a 529 K-12 monthly for next year and continue that for now. May not get a ton of interest but it'll be something.


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GoIrish02
Notre Dame Fan
Metairie
Member since Mar 2012
893 posts

re: Private School Tuition
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.
This post was edited on 5/1 at 2:01 pm


LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
15943 posts

re: Private School Tuition
At 2.5% interest rate, I wouldn't pre-pay it either.

The two years I sent my kids to a catholic school, the rate the school offered was like 9.9 percent (they offered it to everyone, no credit qualifying). Maybe we could have used a HELOC or some other financing we got ourselves at a much lower rate, but that seemed to complicated, so we just paid it upfront.


Jp1LSU
LSU Fan
Key West
Member since Oct 2005
1383 posts

re: Private School Tuition
quote:

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


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


GoIrish02
Notre Dame Fan
Metairie
Member since Mar 2012
893 posts

re: Private School Tuition
A lot of the other Catholic schools use the loans as a profit center, marking up the rate to raise money.

Our pastor views the loans as a tool to make it easier for people to attend and reduce the school's credit risk too.

You'd be surprised how many Catholic grade schools in New Orleans have no credit policy, allowing students to attend when their parents just stop paying, even across school years.

Our last pastor was afraid to confront deadbeat parents, the new guy isn't, which is one of many improvements under his leadership.
This post was edited on 5/1 at 3:47 pm


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10
GoIrish02
Notre Dame Fan
Metairie
Member since Mar 2012
893 posts

re: Private School Tuition
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!!!


DreauxB2015
LSU Fan
Louisiana
Member since Nov 2015
3657 posts

re: Private School Tuition
Tax return baw .


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10
BlastOff
New Orleans Saints Fan
New Orleans
Member since Feb 2016
489 posts
 Online 

re: Private School Tuition
quote:

Catholic elementary is right around $5,300-$5,500 just about everywhere, Catholic high school slightly less


Uh no, it gets more expensive for high school. You're elementary number is right, but it only goes up, not down.


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50
saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
23377 posts

re: Private School Tuition
quote:

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.
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


Y.A. Tittle
Winthrop Fan
Member since Sep 2003
73766 posts

re: Private School Tuition
quote:


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.
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


Yeah, there is literally nothing correct about anything that guy posted.


GoIrish02
Notre Dame Fan
Metairie
Member since Mar 2012
893 posts

re: Private School Tuition
(no message)
This post was edited on 5/1 at 10:27 pm


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Tiger Prawn
LSU Fan
Member since Dec 2016
12067 posts

re: Private School Tuition
quote:

Catholic elementary is right around $5,300-$5,500 just about everywhere, Catholic high school slightly less,
I’m paying $5500 for catholic elementary school. Catholic high school is between $10-12k right now


jralspanky
Fargo
Member since Apr 2009
798 posts

re: Private School Tuition
If the OP is in Thibodaux k-7 is approx. 4k and 8-12 is approx. 7.5K


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Jp1LSU
LSU Fan
Key West
Member since Oct 2005
1383 posts

re: Private School Tuition
Catholic schools are so cheap. It’s almost impossible to find a private school under $25k per year. Our daughter is taking the SSAT (secondary school admissions test) in June and these tuitions are insane, but I’d go the public school route before I’d do parochial.


Tiger Prawn
LSU Fan
Member since Dec 2016
12067 posts

re: Private School Tuition
quote:

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


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20
BamaAlum02
Alabama Fan
Huntsville, AL
Member since Nov 2005
479 posts

re: Private School Tuition
Currently pay out of checking.

I'm hoping that I have overfunded the 529 plans and I can use that excess for the last 5-6 years of #3's school. College tuition will probably keep rising and I will actually be underfunded by the time that rolls around (10+ years).


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Tigerroc
Member since Jun 2017
45 posts

re: Private School Tuition
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.


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