Scholarships and bursaries

For many families, a scholarship or bursary is what makes a non-government school possible. They're also misunderstood. A "scholarship" might cover a small share of tuition for one year or most of the fees for six. A bursary might be generous but reviewed each year. And both can come with conditions that matter if your circumstances change. This guide explains the main types of fee assistance, how applications usually work and the questions to ask before you accept an offer.

Types of fee assistance

Schools use different names, but most fee assistance falls into a few groups.

Academic scholarships

Awarded for academic ability, usually based on a scholarship test, school reports and sometimes an interview. They're commonly offered for entry to secondary school or to the senior years.

Specialist scholarships

Awarded for ability in a particular area, such as music, performing arts, visual arts or sport. They typically involve an audition, portfolio or trial, and often require the student to take part in school ensembles, teams or performances.

All-rounder or general excellence scholarships

Awarded for a combination of academic, co-curricular, leadership and community contribution.

Equity, access or community scholarships

Some schools offer places for students who would otherwise be unable to attend, such as students from rural and remote areas, Aboriginal and Torres Strait Islander students, students from refugee backgrounds or students facing disadvantage. These may combine merit and need.

Bursaries and fee assistance

Bursaries are generally based on financial need. Families apply with income and asset details, and the school decides how much assistance to offer. Some schools call this fee relief or fee assistance.

Sibling and other discounts

Not strictly scholarships, but sibling discounts and discounts for particular groups can reduce the total cost. Check how they interact with scholarships, because some schools don't combine them.

How applications usually work

Processes differ, but a typical scholarship round looks like this:

1. The school publishes dates, often a year or more before entry.
2. Families register, sometimes paying a fee.
3. Students sit a test, often run by an external testing organisation on behalf of a group of schools, or attend an audition or trial.
4. Shortlisted students are interviewed.
5. Offers are made, with a deadline to accept.

Bursary applications often run separately and involve detailed financial forms. Check the timing so you don't miss deadlines.

Preparing for a scholarship test

Scholarship tests often assess reasoning, reading, mathematics and writing. Practice can help children feel familiar with the format, but expensive coaching isn't necessary for everyone and can add stress. Keep it in proportion: a scholarship test is one opportunity, not a verdict on your child.

Questions to ask before accepting

The offer letter is part of the deal, and the conditions matter.

• What exactly is covered? A percentage of tuition only, or levies and extras too?
• For how long? One year, a stage of schooling, or until Year 12?
• What are the conditions for keeping it? Results, behaviour, participation in ensembles or teams, attendance?
• Is it reviewed? How often, and what happens if your child doesn't meet the conditions?
• What happens if fees rise? Is the scholarship a percentage, which rises with fees, or a fixed amount?
• Can it be combined with sibling discounts or bursaries?
• Is there anything to repay if your child leaves early?
• Will you need to commit to staying for a period?

Get the answers in writing. If a scholarship requires you to stay for a set period or repay amounts if you leave, read the terms carefully. The ACCC explains that unfair terms in standard form consumer contracts are prohibited, and that it's often worth asking the business to remove or change a term you think is unfair before signing.

Scholarships and your budget

A scholarship reduces the cost, but the remaining fees, levies and extras still need to be affordable for every year you plan to stay, especially if the scholarship is reviewed or ends at a certain year. Use our cost planner with the fee after the scholarship to test your budget, and consider what would happen if the scholarship stopped.

Bursaries and privacy

Bursary applications usually require personal financial information. Ask how the school will store and use it, who will see it and whether it will be shared. Most schools handle bursaries confidentially, and recipients aren't identified to other families.

How funding affects fees

Non-government schools receive government funding that the Department of Education reduces according to the community's capacity to contribute, measured from parents' median income. Fees fill the gap. Scholarships and bursaries are funded by the school from fees, donations or foundations. That's one reason the number and size of scholarships vary so much between schools.

Other sources of help

Beyond school scholarships, look at:

• Community and philanthropic scholarships offered by foundations and organisations for particular groups or areas.
• Government assistance, such as the Assistance for Isolated Children Scheme for eligible boarding students.
• Moneysmart's guidance on school costs, which points to No Interest Loans, Saver Plus and state assistance.

Helping your child through the process

Scholarship applications can be stressful for children, especially when they sense how much is riding on the result. Some ways to keep things in perspective:

• explain that a scholarship is one way to attend a school, not a measure of their worth;
• keep preparation light and familiar rather than intense;
• make sure they get a good night's sleep and a normal breakfast before a test;
• talk about the outcome calmly, whatever it is;
• have a plan that works whether or not a scholarship is offered.

If you aren't offered a scholarship

Many more students apply than receive scholarships. If your child isn't successful, it doesn't mean they wouldn't thrive at the school. Ask whether bursaries or other fee assistance are available, whether you can reapply at a later entry point and whether sibling or other discounts apply. Then look again at your budget and your shortlist. The best school for your child may be one you can afford comfortably without a scholarship.

Scholarships at later entry points

Some schools offer scholarships at several entry points, such as the start of secondary school and the senior years. A student who wasn't successful earlier might be later, and some schools use senior scholarships to attract students for particular programs. Check each school's scholarship policy for the full range of entry points and eligibility rules.

Comparing offers from two schools

If you receive scholarship offers from more than one school, compare the net cost over the full enrolment, not just the headline percentage. A larger percentage at a higher-fee school can still cost more than a smaller one elsewhere. Compare the conditions too: a more generous scholarship with strict conditions may be less secure than a modest one that's guaranteed until Year 12. Use our cost planner with each school's fee after the scholarship to see the totals side by side.

Tax and scholarships

Scholarships are usually applied as a reduction in fees rather than paid to families. If any payment is made directly to you or your child, the tax treatment can depend on the circumstances, so check with the ATO or a registered tax agent.

Key points

• Scholarships are usually merit-based; bursaries are usually need-based.
• Check exactly what's covered, for how long and under what conditions.
• Ask whether the scholarship is a percentage or fixed amount, and whether it's reviewed.
• Get terms in writing and read any repayment or minimum-stay conditions.
• Make sure the remaining cost is affordable even if the scholarship ends.