A Guide to Paying for Therapeutic Boarding School or Residential Treatment for Your Child

If you have a child that is really struggling in school, at home, or making bad choices in social situations, and you are considering a therapeutic boarding school or residential treatment center, it can be overwhelming. The first thoughts are often, how will you possibly pay for it and how much will it cost. I work with parents every day that are faced with this challenge and I make the following suggestions so parents understand what options are available.

Some residential programs work with insurance companies. If you have private insurance, you should call the behavioral health department within the company and talk with someone about your benefits. Find out if your policy will cover some of the costs of the mental health treatments. Ask questions about whether or not you need preauthorization, if your benefits can be used out of state and out of network. Ask about things such as copay and out-of-pocket totals. And finally make sure to ask if they will consider a single case agreement (an agreement to pay in network benefits for an out of network program).
Consider applying for a personal loan or a medical loan. Medical loans often offer lower interest rates and can be processed very quickly. The interest rates depend on your credit score, so applicants with higher credit scores receive lower rates.
If you have a 529 College plan for your child, you can access it to pay for treatment. If your child is struggling in school, using the funds to pay for treatment can get them to the point that they may be able to attend college in the future.
Many parents apply for and use funds from a Home Equity Line of Credit. Home Equity Lines of Credit are secured with the equity in your home, and offer the benefit of having the interest be tax deductible.
If necessary, you can pay for treatment using credit cards. I recommend this as a last resort, as the interest rates can be very high.
If your child is adopted, check with your county and state to find out if there are adoption funds available for residential treatment.
If your child has an IEP and you work with an Education Attorney, you may be able to get your public school district to cover most or all of the costs of treatment. Keep in mind that most school districts pay only the educational portion of the treatment. This process takes time, and is costly because of the Education Attorney fees. However, if your child likely needs long term residential treatment, this is definitely something to explore.
Some private foundations offer scholarships toward residential treatment costs.

Hiring an Education Consultant does mean an additional expense, but doing so often ends up paying for itself or better. Finding the school that is right for your child is very important, as you hope to have as few transitions as possible during treatment. Education Consultants tour programs regularly, which offers parents some peace of mind that a selected program is reputable and provides good treatment outcomes. Education Consultants can also help negotiate potential payment plans with the selected program, provide resources for scholarships, and offer the support you need when making such a significant decision.

Parenting Child Mental Health