Private-school tuition costs climb at 17 largest Hawaii campuses

The cost of a private-­school education in Hawaii continues to climb as the state’s largest independent schools are charging on average 4.5 percent more in tuition for the upcoming school year, according to a Honolulu Star-Advertiser analysis, with most school officials citing the cost to retain good teachers as their biggest expense.

Hawaii’s more than 100 private schools — 73 on Oahu alone — enroll close to 37,000 students in preschool through high school, according to U.S. Census Bureau data, or roughly 19 percent of the state’s school-age population. With enrollment holding steady in recent years, Hawaii continues to have one of the highest percentages of private school enrollment in the nation, along with Louisiana and the District of Columbia.

The Star-Advertiser surveyed independent schools with high school grades and enrollment of at least 500 students to compare tuition increases across the state’s 17 largest campuses.

Tuition hikes range from just under $200 at Kamehameha Schools’ three campuses, where day tuition will increase to $5,381, to a $1,200 increase at Hawaii Preparatory Academy for the 2017-18 school year. Year-over-year percentage increases range from 2 percent at Island Pacific Academy in Kapolei, where base tuition will increase to $15,975 for high school grades, to 5 percent at several campuses including Mid-Pacific Institute, Le Jardin Academy, Sacred Hearts Academy, Damien Memorial School and Hanalani Schools.

By comparison, for the just-ended school year, tuition increases averaged 3 percent, with a few schools opting to hold tuition flat — a concession no schools are offering next school year.

Admission to the state’s larger private schools — with their state-of-the-art facilities and technology, small class sizes and attractive arts and extracurricular programs — remains competitive despite the rising tuition. Most private schools boast rigorous academics, modern campuses and stable philanthropic support, with some offering gender-­segregated campuses and religious affiliations.

The most expensive private school, not including special-needs schools, in the state continues to be Hawaii Preparatory Academy in Waimea on Hawaii island, with its day tuition for high school grades increasing by 5 percent to $25,800. The school said it has budgeted $4.4 million for financial aid, which roughly half of HPA’s 620 students receive.

Punahou School, the state’s largest single-campus independent school, comes in second with tuition of $23,850, followed by Mid-Pacific Institute at $23,185 and ‘Iolani School at $22,550.

Still, private school tuition in Hawaii tends to be more affordable than on the mainland, especially in areas with similarly high cost of living. Day tuition at an elite co-ed private high school in New Jersey near Princeton University, for example, costs over $51,000. A New York City private school that claims to prepare students to be “global” citizens charges $49,320 in tuition. The median 12th-grade day tuition for National Association of Independent Schools members was $22,784 last school year.

“There’s still no question that even though Hawaii is a more expensive place to live, our private schools are still, compared with many other parts of the country, very cost effective,” Robert Landau, executive director of the Hawaii Association of Independent Schools, said. “And no one is going to say that those schools are fundamentally that much better than some of our private schools — but they are two to three times more expensive.”

‘People costs’ rise

Landau, a former independent school administrator, said private schools face the same increasing costs as other businesses.

“The idea of not raising tuition when your costs automatically go up each year — over 70 percent of your budget is personnel — you just can’t do that,” Landau said. “It’s no different in the public schools: Costs continue to go up. … The money has to come from somewhere. In private schools it’s called tuition. They have fixed costs that just don’t go down, and at the same time, we’re all dealing with this teacher-shortage situation.”

School officials agree, citing the cost to attract and retain faculty with competitive compensation as a major expense.

John Field, vice president for finance and administration at Punahou School, said Punahou makes every effort to keep tuition increases to a minimum, but added that more than 70 percent of the school’s budget goes toward “people costs.”

“It is our desire to maintain competitive salaries and attract the best and the brightest; that really drives the bulk of that expense,” Field said.

Most schools say they are also increasing their financial aid budgets to help more families.

With enrollment of 3,750 students, Punahou is expanding its financial aid budget by more than 7 percent to $7.3 million next school year. Some 685 students, or 18 percent of the student body, are on financial aid, with the average student receiving just over $10,000.

At ‘Iolani School, campus officials say the school works to be as “operationally efficient” as possible to limit tuition increases.

Cathy Lee Chong, ‘Iolani’s director of communications, said the school is budgeting $5.25 million for financial aid for families next school year, a more than 9 percent increase from last year. About 24 percent of the school’s 1,900 students receive need-based assistance, with the average student awarded $9,900.

“Each year, we increase our financial aid budget at a greater percentage increase than the percentage increase in tuition,” Chong said. She added that tuition covers about 75 percent of the cost of educating a student at ‘Iolani, with the difference “covered by a hidden scholarship funded by our endowment and annual giving program.”

At Mid-Pacific, school officials say the school is increasing its financial aid budget to $3.7 million next school year. One-quarter of the school’s 1,580 students receive financial aid, with an average award of $9,500.

“The tuition increase is necessary to retain and attract outstanding faculty, and to support and grow our innovative programs,” said Scott Siegfried, Mid-Pacific’s vice president of external affairs and enrollment management. “We are aware of the sacrifices many families make in paying tuition, and we take this responsibility seriously by working to manage costs, promote philanthropy, and offering financial assistance wherever possible.”

Attractive facilities, opportunities

Frank and Tamara Uhr will be paying their 36th year of private school tuition in the fall as their youngest daughter enters the 12th grade, following the graduations of two older children from ‘Iolani School.

The Uhrs said their parents placed a high priority on education and they have continued to do the same with their children.

“Although my wife and I both attended public schools, when it came time to send our children to school we saw a difference in the facilities and opportunities available at private schools,” Dr. Frank Uhr said. “We’re lucky enough that we both have occupations where we’ve been able to save enough to afford it. But other than having food on the table and a place to live, probably our highest priority is our kids’ education, because we’ve both seen the importance of education in our lives.”

Frank, an orthopedic surgeon, and Tamara, a physical therapist, don’t qualify for financial aid.

“I feel like our money hasn’t been wasted,” Tamara Uhr said. “I sort of joke that my husband and I would rather give our kids good educations than leave them an inheritance, so we’re spending their money now.”

The couple says ‘Iolani’s size and academics initially attracted them, being large enough to offer a range of academic and extracurricular activities but small enough to provide a nurturing setting. They believe the school has made smart investments over the years in quality faculty and first-rate facilities.

By comparison, the amount the state spends to educate public-school students varies because the Department of Education is required to educate all students, regardless of ability or special needs. But Hawaii’s overall per-pupil spending amounts to $12,855, according to a June report from the Census Bureau.