Major private schools in Hawai'i are increasing tuition by lesser amounts than in years past, citing the slowing economy's strain on family bank accounts.

While tuition is going up, officials also say their schools will offer more financial aid than they have in previous years to help offset costs for families that need it.

This month, several private schools began announcing tuition hikes ranging from 3 to 5 percent for the 2009-10 school year, which amounts to about $500 more a year at most schools. That compares to increases ranging from 6 to 10 percent last year.

Only St. Francis School has announced that it would not be increasing tuition.

'Iolani School plans to implement a 4.7 percent tuition increase, which comes after last year's increase of 6.4 percent. Tuition has been set at $15,600, which is $700 more than the school's current fee, said spokeswoman Cathy Lee Chong.

"It is an increase but it is a smaller increase than we have made in the past," Chong said. "The increase was made with as much sensitivity to families' economic concerns. We're fortunate that our programs and our quality of teaching don't have to be affected by the adverse economic climate."

But, in a letter sent home to parents, 'Iolani School Headmaster Val Iwashita said the decision to keep tuition increases low may affect the school's budget.

"Steps we take this year may result in a deficit for the school," Iwashita wrote. "We are willing to take that short-term risk, knowing how important it is to support our students and you, our parents."

FEELING THE RECESSION

In general, private school officials say the recession has meant a smaller pool of applicants, more families requesting financial aid and increased operating costs.

Most officials say minimal tuition hikes are needed to pay for increasing operating costs — employee health insurance and electricity rates — and to help retain quality teachers.

At Le Jardin Academy, tuition increases will range from 3 percent to 4.7 percent, depending on the grade level. High school tuition will increase to $9,250, from $8,833 this year, said Adrian Allan, headmaster.

Allan said the increases are being made with a projection that enrollment could be down.

"Most schools are making a negative prediction on enrollment to stay safe, because no one is quite sure how the recession is really hitting the population that comes to our schools," he said.

"Let's assume we have 5 percent less students. If that's the case, you have to tighten your belts," he said.

As most schools began to raise their tuition, many simultaneously increased the amount of financial aid they will be providing.

Damien Memorial, for instance, will receive $200,000 over the next two years from the Clarence T.C. Ching Foundation for academic scholarships. The money is in addition to scholarships the school already provides to those who qualify.

Damien, an all-boys Catholic school in Kalihi, is known for providing generous tuition assistance. About half of the school's 600 or so students receive some sort of financial support, said school president Bernard Ho.

"Part of our mission ... has been specifically to help the poor and marginalized as well as the academically challenged or talented. We will make every effort if a boy is not able to finance his own tuition to give him some sort of assistance," Ho said.

Damien plans to increase its tuition for middle school students by 2.4 percent, to $8,425. Its high school tuition will increase by 4.3 percent, to $9,575.

Mark Flores, a retail manager from Waipahu, has four sons at Damien. One of his sons will be graduating this year, but he'll still have three enrolled next year.

"We're very blessed to receive financial aid from the school. I'm not sure how else we could afford it," he said.

At one point, Flores and his wife debated sending their youngest son, currently in seventh grade, to a public school.

"He wanted to follow his brothers to Damien," Flores said.

Sister Joan of Arc Souza, principal of St. Francis School, said the co-ed Catholic school decided in December that it would not increase tuition.

"It's the Franciscan thing to do at this difficult time," she said by phone from New York. "The people who come to us, for the most part, could not afford to pay more," she said.

Souza said the school has seen an increase in the number of parents requesting financial aid. For those families, the school has been offering a variety of options — lower payments, spreading payments out over a longer period of time or other financial assistance.

NO WORD ON PAY RAISES

At Punahou School, spokeswoman Carlyn Tani also said there has been an increase in people requesting financial aid. The school plans to increase its tuition by 3.7 percent, to $17,300.

"This represents the lowest increase in recent memory. We tried to keep it as low as possible, balancing both the needs of our families in the tough economic times and the need to maintain the excellence of Punahou's educational environment," Tani said.

In anticipation that families will require more financial assistance, Tani said the school has increased its financial aid budget by 10 percent.

Similarly, 'Iolani School plans to increase its financial aid budget. Currently, about 231 students, or about 13 percent of the student body, receives some form of financial aid, Chong said.

The school will increase its financial aid budget from $2 million to $2.3 million next year, she said.

Typically, private schools attribute at least part of their tuition increases to staff pay raises. But this year schools are not saying whether their teachers will get paid more.

At Mid-Pacific Institute in Manoa, tuition is expected to rise by $500, to a total of $16,500.

"We feel like this is reasonable and needed because we do have increases in utilities, health insurance and all of those things that are givens," said Joe Rice, president of Mid-Pac.

"After that we will determine if there is any money to give salary increases," he said.

Phone calls to Saint Louis School were not immediately returned.