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Establishing and Managing a Tuition Aid Program

by Teresa Vast
July/August 2003
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Article Link: https://www.childcareexchange.com/article/establishing-and-managing-a-tuition-aid-program/5015227/

The primary goal of a tuition aid program is to help families enroll and keep their children in your center. Tuition aid revenue can also improve your center's financial stability and boost quality. This article explores some of the basic issues in establishing and managing a tuition assistance program - target groups, sources of aid, determining need, and whether to use an external financial aid service.

Tuition Aid Helps Families AND Centers

As an early childhood administrator you know that financial barriers prevent many families from enrolling their children in your center. Among participating families, late and missed payments tell you that many parents struggle to pay the tuition and fees.

Moreover, since tuition revenue comprises an average 87 percent of the typical center budget (Cost, Quality & Child Outcomes Study Team, 1995), low or fluctuating enrollment can threaten your center's financial viability and the quality of your program.

Most directors strive to set prices at affordable levels, often relying on subsidies of donated space, goods, and services, and on the willingness of staff to accept low wages. But even these "bargain" prices are higher than many can afford. Public child care subsidies help some families pay, but many states' authorized payment ...

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