Sliding Scale Tool

Why Sliding Scale?

A provider may opt to offer a sliding scale tuition option to some or all of their enrollment to support families who fall into the gap between those who qualify for subsidized childcare and those who can comfortably afford market rates. These families often earn too much to be eligible for assistance, yet still struggle to absorb the full cost of care. Sliding scale tuition gives providers a structured, transparent way to make childcare more accessible for these families while maintaining the financial health of their programs.

Who Sliding Scale Tuition Benefits

A well-designed sliding scale benefits both families and providers:

Families gain access to childcare they may not otherwise afford.
Providers fill spots that might otherwise sit empty, keeping classrooms full and cash flow steadier.

In periods where enrollment demand dips, offering temporary sliding scale pricing can help programs maintain continuity of care for families and predictability in staffing and operations. Some income for a vacant spot is nearly always better than none, and a small portion of sliding scale enrollment can help stabilize revenue during slower seasons.

Why This Approach Helps Providers

One of the biggest challenges providers face when considering reduced tuition is the discomfort of negotiating pricing with families. Without a framework, these conversations can feel personal, inconsistent, or difficult to explain. AQCE’s sliding scale tuition tool removes the guesswork. It gives providers a clear, objective formula that considers:

The provider’s own weekly rate for the family's child care
The program’s lowest possible rate they could accept for a given spot
A family’s household size and income
Whether or not the family's claimed income should qualify them for existing assistance
A built-in affordability rule that ensures families for whom childcare would be equal to or less than 15% of their gross income pay the provider's market rate
A sliding range between the program’s lowest rate and their market rate that runs relative to their household income within the affordability parameters.

This structure helps providers avoid haggling with families and offers a defensible, transparent rationale for whatever tuition amount is generated, and it also gives the provider a specific, third-party "approval" or "denial" to assist in their communication with families.

Does Offering Sliding Scale Devalue Child Care?

Offering sliding scale tuition is not the same as lowering prices across the board. Instead, it allows programs to strategically use available capacity without compromising their standard tuition structure. Some providers may choose to offer sliding scale to only a few families at a time or to use it as a short-term option to prevent losing a family during a difficult financial period.

Supporting Sustainability

The tool also helps providers draft a defensible tuition contract that protects both sides. Programs can include:

Income verification requirements
Time-limited pricing with scheduled rate increases
Late payment or missed payment penalties
Policies that allow back-charging the difference between sliding scale and market rates in the event of default

These measures make sliding scale tuition sustainable for providers while still offering flexibility for families.

Why AQCE Built This Tool

Our goal is simple: to equip Lincoln's childcare providers with practical, fair, and sustainable options that support enrollment and improve access to care for families who need it most. Sliding scale tuition is one promising strategy, and this calculator helps providers implement it confidently, consistently, and transparently.