U.S. private school tuition is closing in on a once-unthinkable milestone: $50,000 a year, Bloomberg writes.
A new S&P Global Ratings report shows average day-school tuition climbed 5% to $49,745, while boarding schools rose 3.5% to $75,466. Even at those levels, demand remains resilient. Enrollment increased at nearly two-thirds of the 59 schools rated, with median headcount rising 6% to 705.
That pricing power reflects a strategic advantage. Independent schools rely on tuition for roughly 73% of revenue and are investing heavily in upgraded athletic facilities, wellness centers and STEM spaces to compete for a shrinking pool of students. Fundraising and access to debt markets provide additional flexibility.
Still, rising operating costs are squeezing margins, particularly for boarding programs. Half of schools reporting fiscal 2025 deficits were boarding institutions, prompting some to consider scaling back or eliminating those offerings.
For families and operators alike, elite education is becoming both a premium product and a delicate financial balancing act.
Read the full story from Bloomberg.
Higher ed
