Less than a month before the end of the school year for the Sierra – Amazonía regime, enrollment processes are already underway in various private educational institutions for the next cycle, 2023-2024, which also confirms the recovery of these companies, according to a study conducted by Oikonomics Economic Consultant , with data on tuition fees and pensions of private schools with more students.

In this way, based on figures from the Internal Revenue Service (SRI), the consultant confirmed that the initial, higher and complementary matriculation centers across the country experienced steady growth from 2020, where they recorded sales of $537 million. For 2021, the amount was 10% higher ($589 million), and in 2022, the year-on-year growth reached 11% ($651 million).

Humanitarian law does not include the reduction of pensions of private educational institutions

Sales of these educational institutions represent on average 30% of all registered economic activities related to education.

Oikonomics focuses its study on Quito, where values ​​maintain the same trend as at the national level. In 2020, the sales of these educational centers amounted to 222.5 million dollars, in 2021 the growth was moderate, recording a variation of only 0.22% compared to the previous year (222.8 million dollars), and in 2022 the annual growth rate records amounts similar to the national one, with 11% ($245.4 million).

Similarly, the sales of these education centers in Quito represent, on average, 29% of the total sales generated by all teaching-related activities.

As Andrés Rodríguez, General Manager of Oikonomics, explains, although these data show that educational institutions have experienced growth in the level of sales, each institution maintains its differences, one of the most noticeable being the number of students.

Does this mean that the increase in sales is due to the increase in the value of tuition fees and pensions, and not the number of students?

Rodríguez explains that the sale of educational institutions shows the evolution of the sector in the aggregate, and the study only takes into account students registered in the period 22-23 and the prices of tuition fees and pensions for the period 23-24. “For this reason, we do not mention or claim that institutions retain the same number of students, nor that the increase occurred due to an increase in the value of tuition fees or pensions,” says the expert, who adds that sales growth can respond to many factors of institutions or demand itself.

For his part, economic analyst Jorge Calderón reminds that in 2020 the pandemic caused part of the population to leave their studies in fiscal schools, but for individuals there was a migration of students from the private to the public system; and also to cheaper private schools, which generated a drop in sales that year, adding to the fact that institutions reduced their costs to be more affordable.

The cost of private education is a concern for parents in the country who are also afraid of returning their children to classes

However, in the following years, with the recovery of the economy and the transition to the hybrid modality, and then the return to direct teaching, the institutions continued with the usual fees and the collection began to increase.

“Without a doubt, everything has recovered, parents whose salaries have been reduced or in some situation affected by the pandemic, are starting to return their children to institutions, from state to private institutions or from private institutions that have moved. they pay less to the institution than they originally were,” explains Calderón, who adds that many institutions have also implemented technological implementations and educational innovations that empower them, under the supervision of the Ministry of Education, to increase the value of pensions, which also affects the growth of income.

How much is tuition and pension paid?

Oikonomics collects information on the prices of school fees and pensions for the school period 2023-2024, the data was taken from the websites of each educational institution, as well as by telephone.

The results for centers classified by Basic General Education show that the average tuition is $190.84, while the average pension is $281.27. These data suggest that, on average, 1 in 10 private students, in face-to-face centers located in the urban area of ​​Quito, pay 42.4% of the Single Basic Wage (SBU) – which is $450 – for tuition., and 62.5% of SBU as a pension.

If both amounts and the total amount to be paid in the school year are taken into account, the student will pay on average the equivalent of 6 basic salaries ($2722.3) in the above modality.

The increase in freight and raw materials is forcing parents in Sierra to find school supplies at higher prices

The consultant emphasizes that the values ​​of education centers can vary within the EGB levels, as there are schools that differentiate their prices for primary and upper primary.

In terms of educational centers classified by high school students, the average cost of tuition is $166.40 and the pension is $240.76. As with the previous segmentation, it can be said that 1 out of 10 students in this modality pays 37% SBU for enrollment and 54% SBU in each pension.

Overall, a school year for this type of high school student costs 5.2 SBUs, or an average of $2,357.7.

The study clarifies that each educational center used for this analysis maintains differences in school fees and pension prices, as well as in the additional costs a parent incurs by keeping a child in school, such as transportation, uniforms, meals, extracurricular activities, etc.

Some of the possible reasons why each institution maintains these price differences are: different pedagogical models used, focusing on different aspects and values.