Private school tuition can be a lot to take on, but families don’t necessarily have to cover the full cost themselves. Private school financial aid, K-12 scholarships, school choice programs, 529 plans and other forms of tuition assistance can all help reduce what a family pays out of pocket. Some options come directly from the school. Others come from state programs, savings accounts or scholarship organizations.
The key is knowing what’s available — and knowing that more than one option may apply to your family. What’s on a school’s website isn’t always the final number, and there are strategies around how to approach a school’s aid office. Here’s a practical look at nine ways families can make private school tuition more affordable, including a new opportunity for K-12 scholarships arriving in 2027: The Education Freedom Tax Credit, or EFTC.
1. Apply for Private School Financial Aid
Start with the school itself. Most private schools with established financial aid programs assess need directly and can offer aid based on household finances. This guide covers the full process, including what schools typically ask for and when to apply.
2. Ask About Sibling Discounts on Tuition
Many schools reduce tuition when more than one child from the same family enrolls. It’s worth asking even if the school doesn’t advertise it. One watchout: Some schools specify that a sibling discount doesn’t stack with need-based aid or a scholarship award, so it’s worth asking directly rather than assuming both apply. Ask the admissions or business office during enrollment, and again each year at re-enrollment, since policies can change.
3. Tuition Payment Plans Exist at Some K-12 Schools
Spreading tuition across 10 or 12 monthly payments instead of two or three lump sums doesn’t reduce the total cost, but it can make the cash flow easier to manage. Ask if payment options are available and whether there are fees or interest charges for paying over time. Some schools also offer different schedules for families who pay tuition annually, by semester or monthly.
4. Ask About Discounts for Volunteer Hours
Beyond need-based aid, some schools — particularly religious and parochial schools — offer a discount for paying tuition in full upfront, for referring another enrolled family, or for logging a set number of volunteer or service hours during the school year. These aren’t universal, and they’re rarely advertised prominently.
5. Use a 529 Plan for K-12 Tuition
A 529 plan, formally a qualified tuition program, is a tax-advantaged account that grows savings tax-free when used for qualified education expenses. Since 2018, that’s included K-12 tuition, originally capped at $10,000 per student per year.
The One Big Beautiful Bill Act, signed into law in July 2025, doubled that cap: starting with the 2026 tax year, families can withdraw up to $20,000 per student annually for K-12 expenses, and the list of qualifying expenses expanded beyond tuition to include tutoring, curriculum materials, and standardized testing fees. Not every state’s tax code has conformed to the federal update, so it’s worth checking your specific 529 plan’s rules before assuming the full $20,000 applies at the state level too.
Be the First to Know
Get notified when the Education Freedom Tax Credit launches so you don’t miss the opportunity to support K–12 students while benefiting from a federal tax credit.
6. Learn About the Gift Tax Rule for Private Schools
If a grandparent or other relative wants to help with tuition, there’s a provision worth knowing about: under IRC Section 2503(e), tuition paid directly to the school is entirely exempt from gift tax, in any amount — no annual limit applies. The rule only works if the payment goes straight to the institution, not to the parent or the student. (If a relative instead wants to give cash to a family directly, the standard annual gift tax exclusion, $19,000 per recipient for 2026, applies instead.)
7. Look for State School Choice Programs
Many states offer their own private school choice programs — vouchers that send state funds directly toward tuition, or Education Savings Accounts (ESAs) that families can use more flexibly. This breakdown of how these programs work covers the differences; availability and rules vary by state.
8. Educate Yourself on K-12 Scholarships, Including the EFTC
K-12 scholarships can come from several sources, including schools, state programs and Scholarship Granting Organizations (SGOs). The Education Freedom Tax Credit (EFTC) creates a new potential source beginning in 2027.
Under the EFTC, donors can receive a dollar-for-dollar federal tax credit (up to $1,700 for individuals, or up to $3,400 for married couples filing jointly) for contributions to an SGO. Those organizations then award scholarships to eligible students. AFC Scholarship Fund is one such SGO. Eligibility is broader than most families expect, measured against a specific household income standard rather than a flat cutoff — here’s exactly what counts. The scholarship itself can cover more than tuition; there is a wide variety of covered expenses. Scholarships become available starting January 1, 2027, in states that opt in.
9. Combine Private School Financial Aid and Scholarships
Not all of the above are mutually exclusive. A family might combine a need-based grant from the school, a state ESA, and an EFTC-funded scholarship in the same year.
See If You Qualify for an EFTC-Funded Scholarship
AFC Scholarship Fund’s eligibility calculator can walk you through a few quick questions — household size, state, and income — and give an estimate on the spot. It’s free, takes about a minute, and doesn’t require creating an account.
Family Stories: The Real Impact of School Choice
- One student’s transfer to a new school restored confidence and opened up opportunities that hadn’t been there before.
- Kingdom Life Academy is a Christian micro-school built around preparing students for life beyond the classroom — one example of the kind of school families find when they start comparing options.
- Valiant Cross Academy built its program around brotherhood and opportunity, giving its students a clearer path forward.
Yes. A 529 plan can cover up to $20,000 a year per student in K-12 expenses under current federal rules, including tuition. It's a separate mechanism from a K-12 scholarship, so using one doesn't disqualify a family from the other.
Yes, under IRC Section 2503(e), as long as the payment goes directly to the educational institution rather than to the parent or student.
Yes. Need-based aid from the school, a state program, a 529 plan and an EFTC-funded scholarship aren't mutually exclusive — see "Combine Private School Financial Aid and Scholarships" above for how that works in practice.
Starting January 1, 2027, in states that have opted into the tax credit.
