The U.S. Private School Market: An Explainer

The U.S. Private School Market: An Explainer


Private schools are a small part of the total U.S. K-12 school market, but with the expansion of private school choice programs in many states, the sector is on track to grow in enrollment and value to education companies.

How Many Private Schools are There?

The most recent federal data available, from 2021, found 29,730 K-12 private schools in the U.S. In the 2019-20 school year, over 61 percent of private schools were prekindergarten, elementary, and middle schools, compared with 71 percent of public schools.

How Many Students Attend Private Schools?

U.S. private schools enrolled 5.47 million students in 2021, according to the National Center for Education Statistics. That’s 10 percent of all K-12 students.

In recent decades, the share of students in private schools has decreased. From 1995 to 2001, between 11.4 and 11.7 percent of all students attended private schools. That fell, starting in the early 2000s, and in recent years the percentage has flattened out at around 10 percent on average. Federal data lag several years behind year-to-year changes in enrollment.

In recent years, school choice programs have expanded in many states, potentially leading to a significant increase in the percentage of students served by private schools that aren’t yet reflected in federal estimates.

Which Regions Have the Highest Private School Enrollment?

Private schools enroll the largest share of students in the northeast (13 percent) and the lowest in the west (8.3 percent), according to 2021 federal data.

What’s the Average Size of Private Schools (Compared to Public)?

Private schools are generally smaller than public schools, with over 44 percent of them enrolling fewer than 300 students, according to 2021 data. More than 60 percent of public schools enroll more than 500 students.

Are Most Private Schools Religious?

Almost 75 percent of private schools in the U.S. are religious, and about half of those religious schools were Catholic in the 2020-21 school year, the most recent year with federal data available.

However, since 2009, Catholic school enrollment has decreased from 39.4 percent to 33.2 percent of all private school enrollment. Nonsectarian (non-religious) schools now enroll 25.5 percent of private school students, up from 22.8 percent in 2009.

What’s the Average Tuition of Private Schools?

Average U.S. private school tuition was $12,790 in the 2020-21 school year, according to federal data.

Tuition varies widely between schools of different religious backgrounds. Catholic schools charged the least tuition, on average, at $9,720 per year in 2020-21, compared with nonsectarian schools, which charge $19,590, and other religious schools, which charge $10,910.

By comparison, in public schools in fiscal year 2021, the U.S. Census Bureau reported that average per-pupil spending was $14,347.

About half of Catholic schools are administered by a diocese rather than an individual parish, and the diocese may hold more centralized purchasing power (more akin to a school district) than with individual, independent private schools.

Which States Have Universal Private School Choice?

Some states have programs, open to all families, that allow families to use public funds for private school tuition or, in some cases, other education-related expenses.

Students in these private school choice programs represent a small fraction of the nation’s total K-12 enrollment, almost 2 percent in the 2023-24 school year, but the numbers signing up for new state programs have sometimes exceeded projections.

And, in recent years the number of private school choice programs have grown rapidly. In 2023, lawmakers in 42 states introduced bills to establish or dramatically expand school choice programs.

What Are the Different Types of Private School Choice?

Private school choice programs differ widely in how much funding they provide, how they’re set up, where the funding comes from, and how the money can be used. Some states have several different kinds of programs.

See this glossary from Education Week to learn more:


Education Savings Account (ESA)

Education savings accounts provide public per-pupil funds—often a percentage of per-student state funding—to families with children who don’t attend public schools that they can use to pay for private school tuition or other education expenses, such as tutoring and homeschooling supplies. Some states restrict ESAs or specific ESA programs within the state to students with disabilities, students attending schools with poor performance, and/or students from low-income families. Recently, more states have begun adopting universal ESAs, which all families can access regardless of income, disability status, or any other qualifying factor. ESA funds are generally given directly to families, often in the form of debit cards with restrictions on how the money can be spent. While ESAs and vouchers are often used interchangeably, what sets ESAs apart from vouchers are that they can be used for a wide array of education expenses, not just private school tuition. (See EdWeek’s 2023 explainer on ESAs.)



Voucher

School vouchers describe public funds that families can use at private schools of their choice, including those that are religious, to subsidize the cost of student tuition. Many vouchers are restricted to students with disabilities, students attending poor-performing schools, and students from low-income families, but some states have vouchers that are available to any student. (See EdWeek’s 2017 explainer on vouchers.)



Tax-Credit Scholarship

Tax-credit scholarship programs provide scholarships to families that they can use at private schools of their choice, including those that are religious. The scholarships most commonly come from state-authorized nonprofit organizations, which issue the scholarships out of donations that they receive from businesses or individual taxpayers who receive tax credits for those donations. Eligibility can be limited based on family income, disability status, or other factors, or it can be universal. (See EdWeek’s 2024 explainer on tax-credit scholarships.)



Tax-Credit Education Savings Account

Tax-Credit ESAs are a less common form of ESA through which families receive a designated, per-pupil amount from a state-authorized nonprofit organization that administers the account. Families can use the funds to cover any educational expense, including private school tuition, tutoring, or homeschooling costs. Businesses and individual taxpayers receive tax credits for donations to those nonprofit organizations. (See EdWeek’s 2024 explainer on tax-credit education savings accounts.)



Direct Tax Credit

Some states offer tax credits directly to parents to defray the cost of private school tuition or home-school expenses. Such credits are still among the rarer forms of private school choice, but they have become gradually more common as Oklahoma and Idaho most recently have adopted new tax-credit programs. States’ existing tax-credit programs have varying levels of generosity. Some states offer tax deductions instead of direct credits to defray private-school tuition costs. EdWeek doesn’t track these deduction programs, as they tend to cover a smaller portion of private-school costs than other forms of private-school choice. (See EdWeek’s 2024 explainer on states’ use of tax credits to fund private school choice.)





Universal school choice

Private school choice programs that are open to all families regardless of disability status, income, location, or public school performance. Universal policies have become more popular in recent years.



School choice

State and, to a lesser extent, federal policies and programs that allow families to send students to schools that they wouldn’t be assigned to attend in the traditional public school system. This can include charter schools; magnet schools; traditional public schools outside of a family’s assigned school zone, district, or town; homeschooling; and private schools, including those that are religiously affiliated.



Private school choice

Policies and programs that direct state and other public funds to private schools, including religious options, where families can choose to enroll their children.



Public school choice

Policies and programs that allow families to attend public schools other than the school to which a child would normally be assigned. These schools include charter schools, magnet schools, as well as traditional public schools where families proactively decide to enroll their children. This EdWeek tracker is focused on private school choice and does not include data on public school choice programs.



Magnet schools

Public schools with a specific focus, such as STEM, performing arts, or career and technical education, that are free to attend and open to all students in a district. Some magnet schools are also open to students outside of a designated district or state and require students to apply to attend.



Charter schools

Schools that receive public funding but typically operate independently of local school districts, with private nonprofits most commonly running them and less often for-profit entities. Districts or state authorizing bodies create contracts, or “charters,” with organizations that want to open charter schools, often for a designated period of time. Charters are tuition-free and are often open to all students in a district or an even broader metro area. However, they tend to have caps on enrollment and decide enrollment based on a lottery system. Because charter schools are a form of public school choice, they are not included in EdWeek’s private school choice tracker. (See EdWeek’s 2018 explainer on charter schools.)



Inter- and intra-district choice

Policies and programs that allow students to attend public schools other than those to which they would normally be assigned. Those schools can be located in the student’s home district but outside of their traditional school zone (intra-district choice) or outside of their home district (inter-district choice). These policies are sometimes referred to as open enrollment.





How Much Money Do Private School Choice Programs Give Per Student?

The money available per student in states’ different private school choice programs varies widely. Oklahoma has the most generous tax-credit scholarship program, offering up to $7,500 to families whose children attend private school. Most tax-credit scholarship programs give between $1,500 to $2,500 per student. Education savings accounts, however, tend to offer families similar amounts of money to the per-pupil amount the state spends on a public school student.

How Many Students Are Using Private School Choice Programs?

According to EdChoice, a nonprofit that advocates for private school choice, Florida has the most students on education savings accounts — 136,000. Indiana has over 69,000 students in their voucher program, the country’s largest. The largest tax-credit scholarship program is in Pennsylvania, where over 54,000 students are in the program.

What Kinds of Expenses can Families Pay for With Education Savings Accounts?

The different things parents can pay for using education savings accounts vary state to state, but many states allow expenses for private school tuition, therapies like speech-language or behavioral therapy, fees for tests, tutoring, textbooks, computer hardware, and uniforms.

Arizona, which created the first ESA program in 2011, also allows other expenses for materials like books, educational discs, backpacks, furniture like desks and chairs, and tickets for educational outings, like to museums and plays. A few states allow expenses like summer and after-school programs and workforce credentials.

What Services Do Private Schools Need?

According to EdWeek Market Brief reporting in 2023, the biggest needs for private schools are teacher recruitment, financial planning, and students’ social-emotional learning.

Myra McGovern, vice president of media for the National Association of Independent Schools, said in EdWeek Market Brief reporting in 2023 that companies should think about private schools like small colleges, and that they should try to get to know the school’s philosophy before trying to sell to them to find the right angle.

What About Private Schools Internationally?

ISC Research, which collects data on international schools, defines international private schools as those that teach wholly or partly in English to at least some students in countries where English is not an official language, or schools that offer a curriculum that’s not the host country’s national curriculum in countries where English is an official language.

International private schools have also grown in recent years and now enroll an estimated 7 million students globally, in almost 14,500 schools, according to ISC Research.

The countries with the most international schools are:

Asia has 57 percent of all international private schools, enrolling 4.7 million students.

Much of the growth in international private schools is in medium-fee schools, which appeal to families from a broader range of incomes. Medium-fee schools grew 17 percent from 2018 to 2023, compared with the market’s overall enrollment growth of 10 percent.

The most popular curriculum in international private schools is the Cambridge curriculum, with 35.4 percent market share, followed by the U.K. and IB curricula, which both have 28.1 percent of the market, and a U.S. curriculum at 19.1 percent. But many schools offer more than one curriculum.





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