How parents will dig deeper for private school fees post-Covid

Parents will be forking out more for private school fees in 2023 as Covid discounts end. See what the top schools will be charging.

Parents will have to pay up to $2000 more a year for private schools in 2023 as Covid discounts and fee freezes end.

Experts say “nearly 100 per cent” of private schools will hike their fees for next year, reflecting the higher cost of operations and the need to make up for Covid rebates.

Some smaller religious schools are set to increase their fees by 10 per cent, while larger private schools with higher fees will increase by four to six per cent, or up to $2000.

Methodist Ladies’ College on Wednesday signalled its fees would increase by an average of five per cent – which equates to $1700 a year, St Leonard’s by four per cent to $35,812 and Al Siraat College by six per cent to $3290 for year 12.

Some lower-cost schools, such as Minaret College, are keeping their fees the same at $2940 for secondary students.

It comes as the generosity shown towards parents over the past two years can be revealed for the first time, with large schools, such as Wesley College, giving fee remissions to parents of about $30m over the past two years.

Large schools, such as Wesley College, gave fee remissions to parents of about $30m over the past two years. Picture: Mark Stewart

Other schools to write off family debts and post significant fee discounts during 2020 and 2021 include Marcellin College ($3.3m), Assumption College ($1.3m), Marist College Bendigo ($500,000), Lowther Hall ($400,000) and Tintern Grammar ($200,000).

Bacchus Marsh Grammar had 59 applications for hardship totalling $73,000.

Many of these schools received significant JobKeeper funds, including Wesley College which received $18m in 2020.

While some individual claims of hardship will continue to be supported, educational financial experts warn schools will now be wanting to make up for such largesse during the 2023 school year.

Larry Lee, head of marketing for education payment provider EdStart, said schools “holding off on fee increases now have to make up for it”.

“The cost of running schools has skyrocketed so we will see a range of increases,” he said.

He said the schools affected by government funding changes — including higher-fee country schools — were most likely to increase fees the most.

Although most schools are yet to post their fees for 2023, most bills will arrive within weeks as parents pay a term in advance.

Fee increases that have been already announced include Scotch College, which will increase by four per cent to $38,280, East Preston Islamic College will rise to $2750 and Islamic College of Melbourne will rise to $3960.

Melbourne Archdiocese Catholic Schools executive director Jim Miles said schools “will continue to keep fees as low as possible in 2023 and remain accessible to all families who seek a Catholic education”.

“Any family facing difficulties with school fees is encouraged to discuss their situation with their school,” he said.

Paul O’Halloran, partner at Colin Biggers and Paisley, who works with a number of private schools, said schools had the right to make fee changes under the enrolment terms and conditions, although “parents don’t negotiate the enrolment conditions and rarely even read them”.

But he said “schools are businesses with expenses and do need to meet costs like any other business”.

Kate Hill, group executive at Futurity, which was formerly the Australian Scholarships Group, said a lot of schools “went over and above offering rebates and fee reductions, but this is expected to now slow down”.

“Last year 39 per cent of schools said their fees were expected to go up, but now nearly 100 per cent of private schools say their fees will rise,” she said.

She said the number of inquiries for fee financing was up 300 per cent, reflecting the nervousness of some parents.

“Some things are tightening up but a majority of schools will still help those in serious hardship,” Ms Hill said.