How Variable Tuition Can Make a Difference

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How

VARIABLE TUITION Can Make a Difference

What is Variable Tuition?

For the past 91 years, Wooster school has lived up to the charge set forth by our founder, Reverend Aaron Coburn, when he said that we should ask, “from each according to ability, and give to each according to need.” Wooster has a proud history of being a place that will work hard to make access affordable to as many families as possible. One could argue that it has never been more important that students attend school in a community that is rich in socio-economic diversity.

Wooster currently commits 27% of it operating budget to financial aid, with 44% of our families participating in our Variable Tuition Program. This commitment to inclusion and a diverse school population is integral to our unique educational program and we are proud to be a leader in this regard throughout Fairfield and Westchester counties.

We recognize that many families who might not expect to be eligible for “financial aid” still qualify for a tuition break. The Variable Tuition Program allows families to apply for variable tuition, which, for the 2016-2017 school year, ranges from families paying $1,000 to $29,450 per year. Full tuition for the Upper School Class of 2020 is $34,350. Wooster is determined to remain accessible to families from various economic backgrounds, so we offer a wide range of tuitions, which includes fees and daily lunch.

“We want to ensure that local communities especially are aware of, and able to benefit from, this longstanding part of our mission. I talk to a lot of parents who say, ‘I’d love to have my child attend Wooster, but there’s no way we can afford it.’ By making Wooster’s philosophy and commitment to affordability clear, we can open up possibilities for a lot more people—it’s a win-win.”

- Matt Byrnes, Head of School

Are You Eligible for Variable Tuition?

The complex formula used to calculate the exact variable tuition level considers many factors that affect a family’s ability to pay. It is impossible for our school, or for a family, to determine the level of tuition for which they qualify unless the entire Parents’ Financial Statement (PFS) is completed. Families can begin to complete the PFS in late October. The online form can be found at www.sssbynais.org.

An application for Variable Tuition does not affect a student’s admission decision. The Variable Tuition Committee calculates a family’s ability to afford tuition and operates separately from the admissions process.

Unfortunately, we do not have the resources to offer Variable Tuition to every student who qualifies for both admission and a reduced tuition. A student may be admitted to the school but placed in a waiting pool for Variable Tuition.

Deadlines for applying for Variable Tuition are early. A complete copy of your 2015 tax returns, W-2, and all schedules must be submitted to School and Student Services (SSS) by NAIS by December 15, 2016 for returning students and February 1, 2017 for new students. Your 2016 W-2s will be required no later than February 15, 2017 to be followed by your 2016 tax returns and schedules by April 30, 2017. Self-employed people need to provide business expense information. Variable Tuition award information is sent with the admissions decision letters in mid-March.

Defining The Variable Tuition Range While the amount of Variable Tuition awarded to individual families is tied to family income, there is variability based upon other measures and circumstances.

Income means pre-tax earnings from wages and business investments. The formula that determines a family’s ability to pay considers different expenses than the IRS uses to calculate taxable income. Therefore, all tax schedules must be submitted. If parents/guardians reside in separate households, the income and expenses of both households are considered in the calculation.

Assets If a family has major assets, savings, or investments, the formula computes an income supplement that is added to the gross income. This income supplement varies, but usually net assets of $50,000 or less will have little impact on the computation. Home equity is based not on market value but on the price paid for the home and the years it has been owned. Generally this will undervalue the equity.

The income assumed to be generated by assets also takes into account parent age, leaving retirement savings intact. For most, but not all applicants, the additional income inferred from assets is a small factor. However, if the student has assets (savings, trust accounts, etc.), the formula includes them in calculating the amount the parents can pay.

Case Study 1 This is an example of a family of four, with two children attending tuition-charging schools.

The combined gross income of the parents is $255,000. State and federal taxes amounted to $85,000. The family owns real estate with an estimated net equity of $200,000 and has $50,000 in investments.

There were no allowable unusual expenses. After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family’s suggested level of contribution, the estimated family contribution for educational expenses for one child is $26,000, or $13,000 for each child.

Family Size Living allowance estimates are based on the number of people in a student’s household(s). Income is adjusted by expenditures for housing, food, or medical needs to obtain the available discretionary income.

Number of Private School or College Tuitions Currently Being Supported A student’s Variable

Tuition grant is also divided by the number of family members (including adults) attending any tuition-charging elementary school, high school, or college.

Unusual Expenses The formula for determining the parent contribution for educational expenses takes into account certain “unusual expenses” such as care of an aging grandparent, parent educational loan payments, legal fees, closing costs, and other expenses listed in the application instructions for the Parents’ Financial Statement.

Other Discretionary Costs The formula expects

a family to allocate only a portion of discretionary income to tuition payments.

Divorced, Separated, or Never Married Parents

Variable Tuition is based on the family’s ability to pay as demonstrated by the information submitted in the Parents’ Financial Statement (PFS). Both custodial and non-custodial parents (regardless of legal settlements) who are divorced, separated, or never married are required to submit the PFS. In exceptional cases where one parent cannot comply, the custodial parent should submit a written explanation. Lack of information from either parent may significantly affect the Variable Tuition amount.

Frequently Asked Questions About Variable Tuition Does every family applying to Wooster need to submit financial forms? No, only those families who feel they are unable to pay full tuition and want to apply for a reduced tuition amount need to submit the forms.

Does an application for Variable Tuition affect a student’s chances of admission to the school? A family’s financial need does not affect a student’s acceptance to Wooster School. Variable Tuition is determined separately.

When will a family learn if they have been offered Variable Tuition? Admission

acceptance letters sent on February 24, 2017 will include a separate response regarding Variable Tuition. Responses to families will fall into three categories: an offer of Variable Tuition; notification that the family does not qualify for Variable Tuition; or notice that the family is wait-listed for Variable Tuition. A wait list designation means that a family will be considered for Variable Tuition if additional funding becomes available.

Are all students who are offered admission also offered Variable Tuition if their parents qualify? Unfortunately, no. The number of accepted students whose families

qualify for Variable Tuition usually exceeds our school’s budget. We do not guarantee funding for, nor are able to fund, all deserving students. Most years, Variable Tuition is offered to a high percentage of accepted students whose families demonstrate need.

If a ninth grader’s family participates in Variable Tuition, does the student stay in the program until graduation? Provided family circumstances remain the same and our

resources can continue to support the program to the same extent, we intend to fund the student for four years. To continue in the program, the family must reapply each year.

What kind of economic situation qualifies a family for acceptance into the program?

There is a wide range of families who qualify, from those who can afford only minimal tuition to those who can afford almost full tuition. In calculating each family’s ability to pay, we consider many factors.

If a family does not receive Variable Tuition one year, can they reapply the following year? Families are welcome to reapply each year for variable tuition.

What is tuition for the 2017-2018 school year? Tuition and payment dates, established

in December, are included in the acceptance letter mailed on February 24, 2017. Tuition increases each year. Three payment plans are available: one payment, two payments, or ten payments a year.

Who handles questions regarding Variable Tuition? General questions about Variable Tuition should be addressed to the Admission Office at 203.830.3916 or admissions@ woosterschool.org.

Case Study 2 This is an example of a family with one child and high “unusual expenses” related to the care of an elderly parent. Parental gross income is $158,000 and federal & state taxes of $45,800, unusual expenses of $40,000 and net worth of $75,000. After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family’s suggested level of contribution, the estimated family contribution for educational expenses for one child is $12,000.

Case Study 3 This is an example of a single parent with three children, but only one in a tuition-paying school. Parental gross income, plus child support, is $84,000 with federal and state taxes of $23,000. The parent owns a home but has little to no equity to date.

After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family’s suggested level of contribution, the estimated family contribution for educational expenses for one child is $4,000.

How To Apply For Variable Tuition Go to www.woosterschool.org/affording for information about our Variable Tuition program. Please note that the Variable Tuition application process is entirely online, and the Wooster School Admission Office will send interested families an email with links and information about procedures and deadlines. Additionally, the Parents’ Financial Statement (PFS) must be submitted to School and Student Services for Financial Aid (SSS) and a copy of your 2016 tax returns, W-2, all schedules, Form 4506-T, and the LWHS Supplemental Information Form must be submitted to School and Student Services (SSS) by NAIS by December 15, 2016 for returning students and February 1, 2017 for new students.

Case Study 4 This is an example of a family of five that is considering a tuition-paying school for one or more of their children Combined parental gross income is $340,000 with federal and state taxes of $120,000. The family owns a home with a purchase price of $700,000 with current equity of $150,000. The family also has investments valued at $350,000.

After consideration of the School and Student Service for Financial Aid (SSS) calculation, which is adjusted for the Fairfield County, CT and Westchester County, NY costs of living, and the family’s suggested level of contribution, the estimated family contribution for educational expenses for one child is $28,000, for two children, $14,000 per student.

Wooster School is a Pre-K through 12th Grade co-educational college preparatory, independent day school.

91 Miry Brooke Road, Danbury, Ct 06810

woosterschool.org | 203-830-3900

The Wooster School students pictured in this brochure do not necessarily represent students receiving Variable Tuition.