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Another option is to do a long-term rental or a lease-purchase. Those are usually much more cost-effective. Also, you can finance a used Yamaha U1 for about $80 a month with about $400 down. That isn't too bad.

Students who don't practice on an acoustic piano usually lag behind (progress-wise) students who do have one. The touch sensitivity of the keys and the pedaling make the world of a difference. I also find that these students are not always as quick to adapt to different types of acoustic pianos at festivals.

I'm with you 100%, pianoeagle. In fact, one of my students who has left me apparently would fight her mom about practicing because she didn't want to practice on that (a keyboard with fewer than 88 keys, no touch sensitivity, and no pedals). After two years of practicing on that with no hope for a real piano in the near future, it was no surprise that she gave up on piano.