Private school tuition on the rise again

The cost of a private school education in Hawaii is on the rise again as the state’s largest independent schools are charging 3 percent more in tuition, on average, for the upcoming school year, according to a Honolulu Star-Advertiser analysis.

Private schools enroll nearly 37,000 students in the islands, representing about 17 percent of the state’s school-age population. Even with tuition increasing each year, demand is strong at independent schools here, and Hawaii continues to have one of the highest percentages of private school enrollment in the nation.

From state-of-the-art facilities and attractive study-abroad programs to rigorous academics and wide-ranging sports and extracurricular activities, admission to the state’s larger private schools comes with a hefty price tag. But many schools say that as tuition has gone up, so have their financial aid budgets for needy families.

Tuition increases at individual campuses range from a low of 1 percent, or $180, at St. Andrew’s Priory School for Girls, where tuition is $17,820 for high school grades, to more than $1,200 at Le Jardin Academy in Kailua. Tuition at the Windward Oahu college-preparatory campus is $19,929, a 6.7 percent increase over last school year.

A handful of schools are holding tuition flat — which school leaders say is a strategic but challenging move in the ever-competitive market — including Island Pacific Academy in Kapolei ($15,675), La Pietra: Hawaii School for Girls ($18,900), Saint Louis School ($14,000) and Kamehameha Schools’ three campuses on Oahu, Maui and Hawaii island ($5,023).

Not including special-­needs schools, Hawaii Preparatory Academy in Waimea on the Big Island continues to be the state’s most expensive independent school, with day tuition for high school grades increasing by 3.8 percent to $24,800. Punahou School, the state’s largest single-­campus private school, comes in second with tuition of $22,950, followed by Mid-Pacific at $22,100 and ‘Iolani School at $21,700.

Tuition at these schools is at or near the cost of annual tuition at the state’s private universities: Annual full-time undergraduate tuition at Hawaii Pacific University is $23,160 for the 2016-17 academic year and $23,310 at Chaminade University.

Still, private school tuition in Hawaii tends to be more affordable than on the mainland, said Robert Landau, executive director of the Hawaii Association for Independent Schools.

“Yes, Hawaii has a high cost of living, we can’t deny that. But if you look nationally, independent education is still a pretty good deal in Hawaii. If you’re looking at tuition costs compared to schools in other parts of the country that have a similar cost of living, like New York — you’re looking at schools there that are twice as much,” Landau said.

Tuition at an exclusive all-boys school in northwestern Connecticut, for example, costs $49,800, while a relatively new for-profit private school in Manhattan charges $49,550.

“Then you have to look at: What do you get for your money? Are Hawaii independent schools less expensive because of quality?” Landau said. “Absolutely not.”

As in previous years, private school officials cite increasing personnel costs to attract and retain high-quality teachers and staff with competitive wages and benefits as the driver of tuition hikes. Several schools add that tuition doesn’t cover the full cost of educating students, saying endowments, fundraising and philanthropy help subsidize the cost for every student.

Financial aid

At Punahou School, where tuition is going up by 4.1 percent, John Field, the school’s vice president and treasurer, said the school makes every effort to keep tuition increases to a minimum.

“Obviously, every year when we formulate the budget, we try and be as thoughtful as we can in terms of any increases, because we know how tough it is for parents,” Field said.

He said salaries and benefits for faculty and staff make up 69 to 70 percent of the budget. “So that’s pretty much what drives increases year over year. … Of course, we want to invest in them as much as we can because they are our most important asset,” he said.

With enrollment exceeding 3,700 students, Punahou is again increasing its financial aid budget by roughly 10 percent, to $6.8 million, next school year, Field said. The school expects 680 students, or 18 percent of the student body, will receive need-based financial aid, with an average award of $10,000 per student.

In a letter to parents explaining the need to increase tuition by 3.8 percent at ‘Iolani, Head of School Timothy Cottrell wrote that “tuition covers approximately 75 percent of the cost of educating a student at ‘Iolani. The cost of an ‘Iolani education begins, for every student, with a hidden scholarship that closes the tuition gap and that is funded by our endowment and the annual giving program.”

Competition

Cathy Lee Chong, ‘Iolani School’s director of communications, said the school is budgeting $4.8 million for financial aid for families next school year, a nearly 8 percent increase from last year, and approximately 23 percent of the school’s 1,900 students receive need-based assistance.

“For three consecutive years, the percentage increase in our financial aid budget is more than double the percentage increase in tuition,” she said.

At Sacred Hearts Academy, the state’s largest all-girls school, Head of School Betty White also pointed to rising personnel costs necessitating a 6 percent tuition increase to $14,108 for high school grades. She said the school has been working hard to remain competitive.

“We’re finding that local families are really shopping around. As the tuition goes up, the cost of elementary and secondary education goes up in a private setting, they want to make sure that they can afford it and that they’re getting what they’re paying for,” White said. “You stay competitive by making sure that you have a good, sound program, and you do everything you can to market that. … We’re hoping we can open with 900 girls, and so far it seems to be on track, so we’re hanging on.”

She said the school has a $1 million financial aid budget for next year that will help as many as 35 percent of families.

Personnel costs

At Saint Louis School, Head of School Glenn Medeiros, who joined the all-boys Catholic school last summer, said he streamlined the school’s expenses to be able to hold base tuition flat at $14,000 for high school grades.

“We tried to limit the rise in tuition this year, and I’m going to try to continue to do that as long as we can afford it,” Medeiros said. “We’re doing our best to try to make it as affordable as possible for our families, and we understand that it’s not easy. … We’re doing everything in our power to find that right price point that we feel is doable, but at the same time not losing that quality of education that we’re providing.”

Saint Louis announced last fall that it would be adding elementary grades for the 2016-17 school year and again become a K-12 campus. Medeiros anticipates the school’s enrollment to grow from 630 students this year to more than 700, and between 51 percent and 53 percent of students will receive need-based financial aid.

At Hanalani Schools in Mililani, Head of School Mark Sugimoto said increasing personnel costs also are behind the Christian school’s 4 percent tuition increase to $11,745 for high school.

“Our teachers do sacrifice, which we greatly appreciate. We can honestly say they’re not here for the money, which is nothing to be proud of on one hand, but we are thankful,” he said.

A quarter of the school’s 720 students receive financial aid. “Part of the mission of the school is to make a Christian education affordable to as many families as possible,” Sugimoto said.

‘Sacrifices’

For Colin and Moana Yost, the cost of sending their children to a private school comes with sacrifices. The couple’s daughter, who got into Punahou in the sixth grade, will be entering high school, while their son was recently admitted for the sixth grade.

“Punahou and other schools like it achieve a much smaller student­-teacher ratio, and I think that has enormous impact on the educational experience,” said Colin Yost, part-owner and chief operating officer for a local solar energy firm. “The reason why we chose Punahou is because, to me, it offers the most open and encouraging atmosphere for kids to figure out who they are as individuals. Nobody is put in any kind of box whatsoever.”

Yost said he and his wife, an attorney with the city, don’t qualify for financial aid.

“We’re paying full tuition for both of them, so it’ll be more than our mortgage for the two kids together, and that’s not easy,” he said. “We’ve had to make some sacrifices.”

By comparison, the amount the state spends to educate students enrolled in public schools varies because the Department of Education is required to educate all students, regardless of ability or special needs. But Hawaii’s overall spending on public schools amounts to $11,823 per student, on average, according to U.S. Census data.

BIGGEST CAMPUSES

Hawaii’s largest private schools are raising tuition next school year by an average of 3 percent. Increases at individual campuses range from zero to almost 7 percent over last school year.

* Note: Base tuition covering high school grades

Source: Honolulu Star-Advertiser research