School Tuition Assistance Policy
Within the parameters of the annual budget, the archdiocese encourages schools to give tuition assistance to students whose families demonstrate financial need. Each school must have guidelines that govern the distribution of these funds.
In determining eligibility, the school should require a formal application and parent/guardian financial statement. Schools should use the same requirements as the Catholic Education Foundation when determining eligibility for school assistance. Schools may not require parental/guardian service hours in exchange for tuition assistance. Without permission from the Assistant Superintendent, the maximum amount of assistance to be awarded should not exceed 80% of the tuition.
The Catholic Education Foundation provides tuition assistance to students who attend archdiocesan schools and who qualify according to financial guidelines established by the Catholic Education Foundation. The Catholic Education Foundation annually publishes the policies and procedures governing the program.
Schools may seek other sources for tuition assistance such as through private foundations and grants; all agreements with such foundations or grant-making organizations must be reviewed by the Office of the Legal Counsel.
Negotiated Tuition
The entire Catholic community is responsible for the financial support of parish and school programs for the education and formation of children and youth. However, the primary financial responsibility for the education and formation of the individual child resides with the family, through the payment of tuition and fees.
Families who are unable to pay the published tuition rate are required to negotiate a written payment plan that will enable them to pay a negotiated rate in full during the school year in which the child attends the school. This payment plan must be signed and dated by the parents/guardians, the principal, and the pastor for parish schools, and placed on file in the principal's office. The principal is required to review and enforce the plan and if the parents/guardians do not meet the terms of the agreement, they may be required to withdraw the child from the school.
For international students any negotiated tuition must conform to the tuition amount stated on the student's I-20 visa.
Negotiated tuitions have to be reflected in the school budget as a separate line item to show the impact of reduced tuition on total school revenue.
Other fees charged by locations may be negotiated at the discretion of the person in charge.
Employee Tuition Reduction
Employees of the archdiocese or locations may apply for financial aid or scholarships at preschools, elementary schools, and high schools on the same basis as all other families. If their entitlement for scholarship assistance is identical to all other applicants and is generally based on financial need or other criteria the school establishes for scholarships, the aid has no tax consequences to the employees.
If employees are provided tuition reduction because of their employee status, whether or not the reduction is based on need, the employee tuition reduction is taxable compensation to the employee receiving the reduction. This reduction must be reported to the Internal Revenue Service and to the State of California by including the information on the employee's annual Form W-2 as income received, with adjustments if federal and state income taxes have been withheld.
If a school elects, it may develop a written qualified tuition reduction program for all its employees as a non-taxable employee fringe benefit. Schools considering such a program must first consult with the Office of Financial Services and the Department of Catholic Schools.
For more on tuition assistance policies in the Archdiocese, see ADLA Handbook 6.2.3.
