<p>"Enrollment and the Economy"</p>
<p>SSAT</a> MEMBERS WEBSITE</p>
<p>Today's New York Times: <a href="http://www.nytimes.com/2008/11/08/education/08college.html?_r=1&pagewanted=all%5B/url%5D">http://www.nytimes.com/2008/11/08/education/08college.html?_r=1&pagewanted=all</a>.</p>
<p>Interesting reading. Some speculation about financial aid. Tufts may not be able to be need-blind in admissions this year. Some colleges are increasing their financial aid pool, but may be using it differently, and many will likely become more need-sensitive this year.</p>
<p>I would assume that the colleges' concerns are matched in the prep school world.</p>
<p>From the Andover website:</p>
<p>
[quote]
The admission and financial aid team reported a strong start to the 2009-10 season. According to Jane Fried, dean of admission, her team is responding to the global economy with a strong, broad-based recruitment plan, which includes the full support of Andovers need-blind admission policy. Preliminary applications are up, compared to the same time last year, as are attendance at events and interviews on campus.
[/quote]
</p>
<p>So, maybe applications will be increased this year......will be interesting to see how this plays out.</p>
<p>Just</a> Past the Ivied Halls, Endowments Suffer (NYT.com)</p>
<p>I don't think many prep schools have endowments large enough to dabble in private equity or hedge funds.</p>
<p>Applications may be up. We've attended some open houses, and turnout has been very good. I think that will make estimating yield an interesting question this year. Will the schools accept more students than last year, assuming that a certain number will not accept the offer, due to finances? Or will they play it safe, and turn to the waitlist, as spots open up?</p>
<p>From today's New York Times. Refers to college endowments and giving, but may have relevance to boarding schools.</p>
<p>And I have to post quickly, before someone beats me to it. :)</p>
<p>hopefully things will resolve to some extent in four years</p>
<p>i'm concerned on how my parents are going to pay for all of this o_O korean won to us dollar exchange rate is horrible.</p>
<p>being an int'l student I doubt I can get a ton of fa in university (we've given up the prospect in boarding schools who could easily accept the next Korean genius with so much more potential than me but willing to pay for their 4 years at potential-utilizing)</p>
<p>Tee hee...</p>
<p>Here's another article from today's New York Times. It's also worth reading. </p>
<p>Private</a> Schools Say Theyre Thriving in Downturn</p>
<p>The schools cited are day schools, but the issues they cite are relevant to this thread. Many school leaders are able to cite concrete examples of their plans to trim their budget. In this parent's opinion, none of the plans mentioned would effect the quality of a student's education.</p>
<p>Thanks, Periwinkle. I am outside the NYC area for the holiday and did not see that article on private schools, as it wasn't in the National edition of the paper that I read today.</p>
<p>I love RSS. It allows me to keep track of breaking news and articles.</p>
<p>I am befuddled. On the one hand, the press is replete with articles about shrinking endowments, declining giving and cutbacks at elite institutions; on the other hand, all the elites (including the elite prep schools) insist that they are still committed to need-blind admissions. So which is it? In this uncertain environment, with the won trading at 1460 to the dollar, can the A's and the E's of the world afford to continue to be need-blind and to aid up to half their enrollments?</p>
<p>Also, if they are truly need-blind, then why do they ask on the first page of the application whether a candidate will be applying for aid?</p>
<p>Is this a good year for full pays?</p>
<p>I am new to this discussion. I wish to hear from those of you who have lots of experience in this area.</p>
<p>Pan,</p>
<p>That's a good point about them asking about FA on the application. I personally do not think they are truly need blind. 70% of the school has to pay full tuition. They have to be conscious of that ratio, or conscious of finding enough full pay students. To say that they can just accept whomever they want, even if it is 100% financial aid kids just doesn't make sense from a budget point of view.</p>
<p>pan1956: Most Part Ones of applications are not necessarily instrumental for the admission officers to read and consider and evaluate, but rather for the secretarial staff to use for data entry purposes. Obviously schools will need to collect statistics about their applicant pool for their records: how many people are applying for grade 9, 10, 11, 12 and PG, how many boys and girls, what is the racial/ethnic background, how many kids applying who are international students, how many kids applying from each state, how many applying from public school/private school/home school, AND how many are applying for financial aid. </p>
<p>newyorker22: According to the Andover website, 42% of the student body receives financial aid, leaving 58% to have to pay full tuition. I am sure Exeter's ratio of financial aid to full pay students is similar, if not even better.</p>
<p>42% receive financial aid...but not 100% aid.</p>
<p>An institution that is truly NEED-BLIND in deliberating admissions runs the risk, albeit theoretical, that, once the admissions decisions are made, all those offered admission require aid. So maybe I am a skeptic, but it stretches credulity to believe that any institution is truly NEED-BLIND.</p>
<p>And it makes intuitive sense that this must be especially so as endowments and giving drop through the floor.</p>
<p>Even Groton and I believe Choate indicate on their websites that the need for aid affects the likelihood of admission.</p>
<p>There must be some mechanism that ensures that they get the critical mass of 50-60% full pays.</p>
<p>Comments????</p>
<p>First, many boarding schools (and Universities) have made the strategic decision to keep spending money on financial aid, at the expense of capital projects - new buildings, etc. So instead of taking endowment funds for new construction, they are allocating those funds to maintain economic diversity. Bravo</p>
<p>These schools also have a long history of knowing the broad demographic composition of their applicant pool, so they do have some insight into how many applicants will need what kind of financial aid. Having said all that, I think very, very few prep schools are TRULY need blind through the application process - maybe two - and if we have more days like today, even those numbers might decline.</p>
<p>And what about the prospect that we may be at the precipice of a protracted and deep recession, worse even than that of '73-'74? In such a context, no one can say when assets and giving will recover; maybe it will take ten years!</p>
<p>Under such dicey economic conditions, how do the schools manage to commit to those who will certainly need aid continuously for the length of their matriculation? It must be very tempting to abandon their commitment to economic diversity.</p>
<p>I agree that there is a choice to maintain aid at the expense of capital investment. Such a strategic choice of course risks deterioration of the physical infrastructure. I imagine that at some point, if endowments and giving do not recover, maintaining generous aid then takes a chunk out of OPERATIONS (instruction, extracurriculars, quality of dining, athletics, etc.)</p>
<p>The schools are facing some really painful choices.</p>
<p>WE HAD A RECESSION IN '74?! O_O</p>
<p>i am so uncultured :P
come on people, let's at least try to enjoy the terrible economy (US has it good right now. if you guys come to Korea everything is basically 30% off, EVEN the plane. :O )</p>
<p>I think it isn't usually a choice between significant capital investment and financial aid. The typical path for significant capital investment is a capital campaign. Most secondary schools, colleges and universities have put initiation of capital campaigns on hold for now.</p>
<p>Endowment income goes towards maintenance and repair, financial aid, faculty and student programs, etc. Some endowment income is restricted such that it must go towards a named category, often financial aid but sometimes faculty chairs, a sport, etc. Tuition covers much of this. If you want to know what % tuition covers, take a look at the annual fund descriptions for each school. Usually it is on their website. </p>
<p>Anyway, I just wanted to point out that in general it is not a choice between maintaining financial aid and building. It is more likely a choice between financial aid and maintenance or headcount or salary and benefits, etc. Some schools may borrow using endowment as collateral for a short-term fix.</p>
<p>Burbparent - you are correct, endowment principal is USUALLY not a source of financial aid support - However I believe that in order to maintain current levels of support institutions will dip into corpus to support those important programs. Of course that is not sustainable, but they will do it in the hope/prayer that the declines in endowment are temporary.</p>
<p>So are there any opinions, or better still, any agreement, about whether this is an ordinary or a better than ordinary year for full pay applicants?</p>