Many schools offer some form of aid through their own operational budget. In order to qualify for aid, parents must demonstrate their financial need by filling out a survey or application similar to the Free Application for Federal Student Aid (FAFSA) used by colleges. Schools contract third-party companies such as the Private School Aid Service (PSAS) to help administer and track financial need applications.
Private schools seek out talented students to help build and maintain their reputations. Schools may offer merit scholarships to students who demonstrate high academic potential. Merit scholarships often do not require parents to demonstrate financial need and are awarded solely based on the skill, talent or potential exhibited by the student.
Outside organizations may also make funds available to help offset the cost of private school. Local community organizations or religious groups may establish scholarships that are unaffiliated with any particular private school. Some private scholarships require proof of financial need while others may be awarded as contest winnings or on the basis of merit. Examples include Step Up For Students, The Abell Foundation and LINK Unlimited.
Loans help parents ensure that they can send their children to the private school of their choice. Fewer banks lend for primary and secondary schools than for post-secondary educational expenses; however, parents can also investigate home equity loans and unsecured cash access loans as alternatives to pre-collegiate educational loans. Parents should avoid taking out loans for primary and secondary private schools unless it is absolutely necessary to maintain cash flow.