Questions and Answers about Tuition

Tuition is the largest source of income for Atlanta International School. Tuition is also the largest annual discretionary expense for most AIS parents. For the school, the level of tuition results from choices made by the administration and the Board of Trustees in balancing a program of academic opportunity and excellence with the fiduciary responsibility of conserving the school's physical and financial assets. For the parent, payment of tuition represents an annual choice between a private school education and other educational alternatives. Thus, for both AIS and our parents, tuition is a subject of considerable importance, upon which the following dialogue is intended to shed some light.

If you have further questions, please contact our CFO & Director of Operations, Ken Wilkins, at 404.841.3840 or kwilkins@aischool.org.

What percentage of the annual budget is paid for by parents in the form of tuition and related charges?

Over 90 percent of operating revenue comes from tuition and related charges. The remainder comes from:

How much of tuition income is dedicated to faculty and staff salaries and benefits?

This is the major part of our operating expenses, comprising 77 percent of all our expenses. Because of the small class sizes, support teachers for the four main languages and other learning specialists, our actual student-teacher ratio is very low, currently 8 to 1 for the school overall. Our commitment to make teacher salaries and benefits more competitive results directly in the need for greater income from tuition and other sources.

How is the level of tuition determined?

In preparing the budget for the coming year, the administration works closely with the Finance Committee of the Board of Trustees. Faculty staffing levels are projected to assure the quality and continuity of the academic programs. All educational program and operating budgets are zero-based for efficiencies and to ensure that they are sufficient to uphold the academic standards required. Annual giving and miscellaneous revenue are then projected, based on historical trends, leaving a remainder to be funded by tuition, less financial aid, plus income drawn from the school's endowment earnings. Local, national and international school compensation trends are also evaluated. The final tuition results come from the Board's commitment to achieve a balanced budget while maintaining a level of financial aid and fiscal responsibility that is consistent with our core values.

Tuition refund insurance (Optional)?

In preparing the school's operating budget, we looked closely at expenses the school was incurring. We looked for areas of cost that could be reduced or eliminated and not negatively affect performance of the school. One expense we looked at was tuition insurance. We reviewed the use of the school's tuition insurance policy and found that the insurance had only been used on average by 24 students per year over a 3-year period, yet every student was bearing some cost of this insurance which, had been paid for out of tuition. So working closely with the Finance Committee of the Board of Trustees we made the change to make the tuition refund insurance optional. Parents, as always, are still responsible for full tuition payment to AIS. Now each parent can decide if they want or need tuition insurance. Taking this action has allowed us to reduce our operation cost by letting only those who need or want the insurance to acquire it for themselves and not have every student bear the cost of insurance that was only used on average by 24 students per year. If we had not taken this step then the school's operating budget would have needed a tuition increase of an additional $200 more per student to remain balanced and fiscally responsible.

What is the main reason for annual increases in tuition?

Faculty compensation, as mentioned earlier, at Atlanta International School, is the single largest expense and has been rising, on average, 3-4 percent above inflation to "catch-up" to national and local median faculty salaries. Good teachers are commanding increasingly better compensation in all educational markets; retaining our faculty is and has been our priority. In addition, major program expenditures -- in technology and other classroom furnishings, for example -- are presently being driven by nationwide trends at rates much faster than can be offset solely by savings in other areas of the budget. While accounted for as an expense, we view these financial commitments to teachers and programs as an investment in educational excellence and in the fulfillment of our mission.

Nine years ago, AIS was considerably behind an important national benchmark: the median salaries for teachers at other independent schools in the nation with enrollments between 750 and 1,000 students. We are pleased with the progress we have made against this benchmark, which you can see on the graph below. However, you will note that other schools are being as aggressive as we are in terms of faculty compensation and just one year after reaching parity, we have fallen behind. We are also watching how our teacher compensation compares with the local public schools and we lag behind that benchmark considerably.

Faculty Compensation

Will all teachers get the same increase in salary?

No. While we will push up faculty salaries and benefits such as retirement plan and medical insurance, it is not just an across-the-board increase. Most teachers will receive a modest increase to their base salary. Then, more differentiated increases are awarded based upon each teacher's development of skills, performance and responsibility. An increase of approximately 4 percent will be made to the total budget dedicated to increasing current teacher's compensation. However, many teachers will experience an increase of 2-3 percent while others will receive 6-10 percent. In addition to cash compensation, we will continue to be very generous in what we allocate to teacher professional development -- an investment that immediately influences every student.

Are other Atlanta private schools experiencing the same financial pressures as AIS?

Yes, but many of them have significant endowment incomes, which offset tuition pressures. All good schools -- secondary and college level -- are experiencing similar pressures on tuition. A primary focus of the Board of Trustees is on increasing the school's endowment. Endowment income is the only alternative to reliance on our parents as a source of operating revenue, either through tuition or annual giving. Aggressively building our endowment is a major part of our future.

Won't this trend gradually squeeze out middle income families?

Although tuition has risen faster than inflation in recent years, need-based financial assistance has risen along with this. Our commitment to need-based financial assistance will not decrease relative to total tuition. Currently, approximately 7 percent of our tuition revenue is dedicated to need-based financial aid. Families who receive financial aid must complete a comprehensive application along with a copy of their tax returns. This is all evaluated by an independent agency to determine actual need.

Moreover, payment plan options are specifically designed to assist middle income families. If there are questions on the payment plan options that are available, please stop by the Business Office or email us your question.

The tuition is said to be "all-inclusive". What does that mean?

A few years ago, tuition was "bundled" to include such things as the cost of books, music and art supplies and equipment, technology, and a host of other items. This remains in place today, making our published tuition appear somewhat higher relative to some schools, which still charge for such "extras" like books and supplies. Extra charges do apply to certain extended field trips and school lunches, but additional assistance to cover these programs is made available to financial aid recipients wishing to participate.

The tuition deposit is due on March 2. Why not in mid-August when school actually begins?

In order to secure the optimum enrollment profile for each class, we must have all places confirmed as soon as possible. The March commitment date is common to most schools and enables them to determine the number of positions available for new students and to contract effectively for staff and supplies in time for the August opening.

Must the full tuition be paid on July 1, or are there other payment options?

The Enrollment Contract and payment arrangements for the year must be confirmed before June 1. Payment of the one-payment plan for full tuition (non-refundable) is also due before July 1. There are other payment plan options available that are explained in detail with the enrollment contract packet that was mailed to you. The first payment using one of the payment plan options is also due before July 1.

What is the school's policy with regard to late payments?

The Enrollment Contract and all deferred payment agreements specify that a 1.5 percent per month charge is applicable to a delinquent account balance and that a student is subject to having his or her enrollment canceled if the unpaid condition persists. If a family is encountering difficulty meeting its payment obligation, please call the Business Office at 404-841-3854 and we will set up an appointment for you to come in to discuss your situation.

What does the matriculation fee cover?

The matriculation fee is a one time non-refundable fee to cover the cost of facilities and equipment that needs replacing from time to time over the course of a student's academic life, like computers, desks, tables, chairs, and equipment for the kitchen, building, and sports programs.

Why does AIS charge an administrative fee for using the payment plan options?

There is a cost to the school to administer the many payment plans we offer. The costs are made up of expenses associated with mailings, phone calls, administrative fees, overtime of staff, lost interest and uncollected tuition. The administrative fees are charged to allow the school to have the revenue as if all payments were made in full and on time. These plans are now used by approximately 60 percent of all the students. Even with an administrative fee, the school will only collect about 90 percent of the total revenue we would have collected if all tuition was be paid in full on July 1.

Another hidden cost to AIS is the cost we incur to process credit cards for tuition payments and fees and gifts to the school. For example, the cost to AIS when taking a $13,875 tuition payment by credit card is about 2.25 percent, or more than $312. The annual cost in credit card processing fees to AIS is well over $50,000 per year.