Tuition assistance

Three types of financial assistance are typically offered to families: 

1. a sliding scale fee
2. scholarships
3. discount programs for economic need or multiple children enrolled in care  

A sliding scale fee changes the amount families pay for child care based on their gross income. Gross income is the amount of money a family makes before taxes and other deductions. It's not the same as adjusted gross income. You can find a family's gross income by looking at their pay stubs. With a sliding scale fee, you may charge one price for families who earn less than a certain amount of money. You could also have different prices based on how much money a family earns, how many children they have, or other things.

Scholarships can be offered to help families cover tuition or copayments. Scholarships can be determined by financial need or be based on temporary or ongoing hardships a family may be facing. For example, a family may receive medical bills that create additional hardship and stress on the family for a period. Even though they might be receiving the same income, their costs have gone up as they face large medical expenses.   

Tuition discount programs help families pay less for child care. These programs can be based on things like siblings or financial need. For example, if a family earns less than a certain amount of money, you could lower their tuition by 25%. You can also give a discount for each additional child in the family, like 5-10% off. This may encourage the family to enroll all their children in your program. It also helps families who are struggling to pay for child care for multiple children.

Any policy should be written, communicated to all parents, and accessible for them to read and review at any time. The policy should be displayed on your website, included in your parent handbook, posted next to other announcements in your program, and/or other places where the community can access it.  

For each policy you offer, include the following details:  

• What are you offering? 
• Who can benefit from this policy? 
• How much funding can a family receive? 
• How can a family apply? 
• What is the appeal process if a family is denied for assistance and thinks they should receive it?  

For example, your announcement could look like this:  

New Tuition Assistance Program  

[Business Name] is offering a Tuition Assistance Program beginning on [date] to help families in need offset the costs of child care services. This new program will provide [a sliding scale fee, scholarships, discounted rates] to assist families within our community access child care during times of need.  

Tuition Assistance Program Information

Under the new Tuition Assistance Program, rates will depend on gross family income per each family’s State Median Income (SMI):  

Note: Will the program award a certain number of full or partial scholarships per year? For example:  

As part of our new Tuition Assistance Program, [Business Name] will offer [number of full and/or partial scholarships] per year.  

 Note: Alternatively, will the program offer a percentage discount to families? For example:

Families participating in the Tuition Assistance Program will receive a discount of [include the details here. This could be a percentage discount awarded to eligible families who apply, or it could take the form of a discount for additional children enrolled in your program].  

To be eligible for the Tuition Assistance program, [include eligibility requirements here, such as SMI requirements, etc.]. Interested families should submit an application by [date]. Families will receive notice of their application decision within [#] days. Once notified of the decision, you may contact [contact information] if you have any questions about your decision.  

To request an application for the Tuition Assistance Program, please contact [email or phone].  

It's important to clearly communicate eligibility requirements so staff and families understand when they will and won't qualify. For example, state the number of children you will need to serve in a family before a sibling discount begins. When offering an economic need discount, state exactly how much income a family would have for the discount to kick in. Many families might not know what the SMI is and if they qualify based on their family size and income level. Information on Texas income limits and parent share of cost for Child Care Scholarships are posted in the CCS program costs section on the CCS Forms for Families webpage. This is important information to share if using this as a part of your assistance policy.  

Your policy may include a requirement that families be in full-time care to be eligible for discounts. There's no reason to not offer financial assistance to families enrolling a child part-time, but some businesses want to support full-time families first.  

You'll want to have an application and review process. You can collect documents such as pay stubs to verify financial need. Remember when you receive documents containing personal information, especially personal financial information, you must secure them so they're not a liability for you if there's a data leak.  

You can also require that the families show verification that they're working to be eligible for the program. Again, this isn't necessary, but some child care businesses prefer to see the family needs child care to continue to participate in the Texas economy.  

You can offer a sliding scale tuition policy, scholarships for copays, and a discount for the number of children for one family enrolled in care. All three of those policies can exist in the same family handbook so that you can continue to support different types of families.   

Options for Happy Apple Child Care  

Option 1: offering a discount for more than one child enrolled  

Happy Apple Child Care will offer a 5% discount to families with more than one child enrolled. This discount applies to full-time enrollment only. Each additional child after the first enrolled in the program will be eligible for the 5% discount. To apply for the discount, speak to the director or email the director at centerowner@happyapple.org.

Option 2: variable-rate scholarship for tuition or copayments  

The team at Happy Apple Child Care recognizes that some families may have ongoing or temporary financial need. If this might apply to your family, you can apply for full or part-year scholarships to cover a part of your copayment or tuition.  

• Full-year scholarships will be based on documented family need and a percentage discount of between 25% to 50% will be determined by the director on a case-by-case basis. The director will re-evaluate the scholarship if the family enrolls for another year. 
• Partial-year scholarships will be awarded for a set percentage of between 25% to 50% and a given amount of time based on temporary financial need of families or for new families who may face additional costs as they start with us. 

To apply for a scholarship, email the director at centerowner@happyapple.org.  

Option 3: sliding scale fee  

Happy Apple Child Care is committed to ensuring that every family can attend our center regardless of their financial situation. We set our tuition fees lower for families who demonstrate financial need.  

• If your family’s current gross income is within 175% of the current federal poverty level for a family of your size, your tuition rate will be $75 a week. If your gross income is from 176% of the poverty level to 200% of the poverty level for your family’s size, your rate will be $150 a week. You can check your family size and Federal Poverty Guideline percentages to see if you might be eligible. 
• To apply, you need to contact the director and share your family's current gross income. 
• These tuition rates must be reviewed and renewed every twelve months, and you'll be requested to show proof of income. If Happy Apple increases rates for other families, there may be an increase in the rates your family is required to pay. 
• Families that meet eligibility for other scholarships, such as state subsidy, will be requested to utilize that form of support first. If your income changes during the year and affects your eligibility, you are asked to share this information as soon as possible with the director so they can adjust your tuition accordingly.  

Option 4: sliding fee scale based on a single financial decision point  

Happy Apple Child Care is committed to ensuring that every family can attend our center regardless of their financial situation. Families interested in applying for a lower tuition rate can send the director an email with just the first page of their 1040 Federal Tax Return for the last tax year to verify gross income. Any families with a gross income of $50,000 or less will be eligible for a scholarship. Requests will be reviewed by the director, and you'll receive a decision in writing by letter or by email. If you are approved for a scholarship, it will be available for 12 months from the approval date. After that time, you'll need to reapply for the scholarship. If you have a sudden and dramatic change in your financial situation, for example due to a lay-off, contact the director immediately to determine if there are scholarship funds that could be issued temporarily.  

Option 5: sliding scale fee based on income  

Happy Apple Child Care is committed to ensuring that every family can attend our center regardless of their financial situation. To help families, we offer a sliding scale fee structure based on gross income. At time of application, each adult in the household must demonstrate the need for full-time care, usually in the form of a 30 or more-hour work week or a full-time student schedule or both. If families make less than $30,000 a year in their gross income, they're eligible for a 25% discount on all fees. Those making $30,001 to $40,000 a year are eligible for a 10% discount, and those making $40,001 to $45,000 a year are eligible for a 5% discount. The discount amount will be reviewed annually, and additional information must be provided as needed. If there's an immediate change in the family's financial situation after you are enrolled, either requiring additional support or if they no longer need support, they should contact the director as soon as possible.  

Option 6: per-child, flat rate discount  

Happy Apple Child Care is committed to ensuring that every family can attend our center regardless of their financial situation. We offer discounts to families with multiple dependent children in their household attending our center. Each additional sibling will receive a $50 weekly discount. For example, a family with two children enrolled at Happy Apple will receive a $50-per-week discount for the second child. A family with four dependent children in their household will receive $50 off three children’s weekly rates. We hope this helps alleviate some of the financial stress for families enrolling multiple children in child care.   

Example of an appeal process for a center with an individual owner  

If you have any questions about the decision of your eligibility for a scholarship, contact the center owner at centerowner@happyapple.org with any questions and request a review of your case. All reviews are final.  

Example of an appeal process for a nonprofit  

If you have questions about the decision on your scholarship, contact the Happy Apple Board of Directors Chair at chair@happyapple.org and request a review of your case. All reviews are final.  

Example of a policy without a review  

All decisions by the director or the owner are final and there is no appeal for scholarships. Families may reapply after 12 months or if their financial circumstances change.   

Disclaimer  

The information contained here is for educational purposes only and is not intended to constitute legal, tax, or financial advice.