<p>Yes, it is a good year to be full pay. In fact, I'll go out on a limb and say that it is always a good year to be a full pay.</p>
<p>Many schools claim to be need-blind but even the schools that claim to be need-blind do not claim to be legacy-blind or your-dad's-a-senator-blind. Also, even among the schools that are need-blind, not all provide 100% of need. So, I can admit you regardless of your need but if I don't provide you with the full financial aid package that makes it possible for you to attend, it doesn't do you a whole lot of good.</p>
<p>I don't mean for this to sound cynical. The truth is is that that full pay student, and his parents who are big donors to the annual fund and the capital campaign, are important to the overall current and longterm financial health of the school. They are the folks who fund the scholarships that allow us to consider economic diversity.</p>
<p>BTW, I have worked at secondary schools and universities (including an Ivy) and this has been true everywhere I have been. My suggestion has always been that we be honest about it and auction off the last space in the freshman class to the highest bidder. At least that way we know we're getting some of that welath to redistribute on the front end - and before that ill-prepared student ends up failing out. No one has ever taken me up on it. ;-)</p>
<p>sbergman, I totally agree about the auction system. Why not sell 4 or 5 seats? there is no telling how much they would go for in the far east and then the schools would know they would at least get top dollar.</p>
<p>Thank you sbergman, for being so blunt and direct about it! So if I am correct, you suggest that a claim that the admissions process is need-blind is deceiving unless the school also commits to financial aid to the extent that it is required. Does this effectively lower the yield on those who apply for aid and are accepted?</p>
<p>Second half of tuition is due this month. Just heard at the bus stop, 25 boys not returning next January to Brunswick School in Greenwich, CT. Not necessarily a reliable source so cut it in half and still substantial amount. Fyg Brunswick is one of the top private day schools in Southern Fairfield County, CT. Probably more challenging to get accepted than most boarding schools. This is the first repercussion I've heard of from the failing economy with respect to students/parents at private schools. I have not read this whole thread so maybe this is old news. My guess that there will be more but really won't be known until the kids return to school next January. Has anyone heard of any other similar stories?</p>
<p>I got an e-mail from my alma mater today and they said that they are going to do everything possible to ensure that all currently enrolled students remain enrolled and graduate...in that they refuse to let a financial downturn stand between the students that they committed to give an education to and having those students receive it.</p>
<p>It was a very powerful, compelling letter from the Headmaster. It made me feel full of school spirit and pride. And I'll be sending them some little bit extra to help in that cause:</p>
<p>Our first challenge is to continue to offer every young man at +++++++++ the superior education that he has the right to expect. We are committed to maintaining the high standards we have set for ourselves in all areas of the School's life. One way we must meet that challenge is to recommit ourselves to student financial aid. It is foolish to think that we will not experience an increase in requests for financial assistance not only from families applying to the School but also from families whose sons are already at +++++++++. I have already stated publicly that it is my desire that every boy currently enrolled at +++++++++ finish his education here and graduate with his class. I would hope that no family would consider removing their son from +++++++++ for financial reasons without first discussing it with someone here. While the situation may seem to be dire, I believe we can find creative solutions to the problem. The School is willing to work with each and every family in our community. It is precisely at times such as these that being a member of the +++++++++ community is so vitally important. It is at moments of crisis, like these, that we, as a community, need to support each other, stand together as one and work for the good of all.</p>
<p>I was reaching for my checkbook even before reading the next paragraph -- which made the obvious plea for support. Schools that have maintained good connections with their alumni and other constituencies that can be called upon as financial resources are right to tap into them hard and heavy -- while, perhaps, even easing up on the pressure of families of currently enrolled students to give. My donation will be at the "Hey, every little bit helps" donor level, so I'm not the demographic that they most need to inspire. That said, I think they're on the right track with this appeal. Not everyone is worse off right now, so the job is to find those people and appeal to them.</p>
<p>Another wonderful school sent letters out last week saying "We know that your financial picture may have changed. Please let us know asap so that we can budget to meet every student's need." I was impressed...that kind of caring for students creates very loyal alums.</p>
<p>Got a letter from our school (hasn't everyone) describing the impact of the current market on the school. They mention that only 6% of operating revenue comes from the endowment, and while their investments have outperformed the S&P 500 through this turmoil (not hard to do so if a significant percentage of your assest are in cash equivalents), they recognize that there will be a difference in the revenues coming from the endowment next year and that they should be able to manage it by taking prudent steps. </p>
<p>So perhaps there is a silver lining to being at a school with a small endowment?</p>
<p>Those are interesting stories. I know that Brunswick has an elementary school too, and I would make a guess that many of those being pulled out are younger kids. It's certainly easier to pull your son out of a $28,000 kindergarten to go to the free one down the road if times are tough. Parents of high school kids would probably be less likely to do it, but it's going to happen to them too.</p>
<p>Dyer Maker's school letter was nice---that is also a school in the NY suburban area, I believe, and I really think that area is hit so much harder than the others. The suburban town that I live in (I'm no longer a true "newyorker" due to the birth of my second child this year, which sent us to the suburbs)----anyway, my suburban town said that they enrolled more private school kids this September than they had expected, and with the economy they are bracing themselves for a surge in enrollment in all grades due to parents pulling their kids out of privates.</p>
<p>One anecdote is that two more of my students stopped their boarding school search. Both had wall street dads who were laid off, one lost most of his savings too. A third family says that they will still focus on top tier schools, but won't pay for anything but the top and have eliminated visiting any others.</p>
<p>It will be interesting to see what happens this spring.</p>
<p>It makes perfect sense to me that kids would exit private schools (especially elementary, as newyorker22 suggests) given the economic situation. But I hadn't thought about the effect in the opposite direction. Here's a quote from an article in the last Phillipian about a recent meeting of financial aid officers from 50 prep schools last month:</p>
<p>"With the economy in a slump, local towns and cities are making budget cuts, prompting parents to begin what Ventre called a “flight to quality.”</p>
<p>According to Ventre [Andover's Director of Financial Aid], “flight to quality” is the natural reaction that many families have when they feel that local public schools are not giving their children the best possible education. He said this is leading to a large increase of calls to private schools such as Andover and many other members of AISAP."</p>
<p>Here's something to consider. The non-profit sector accounts for 12.5 million jobs in the US. Just over 1 million of those are in independent elementary and secondary education. That's twice the number of jobs in the US auto industry. We can claim an impact on the economies of dozens of small towns whose major employer is the local boarding school and, using Detroit math, we can balloon our numbers by including the employees at the local Sonic and the vendors who make our school ties. I'm pretty sure that in my state, education is the only sector with a positive foreign trade balance. My boss drives a hybrid without having been shamed into it by a congressman and none of us have ever received a year-end bonus.</p>
<p>If there's a downturn in applications, do you think we should be scheduling a trip to DC? ;-)</p>
<p>note to those in the northeast.....Sonic is a drive-in burger joint. Best tater tots and foot longs anywhere. Oh, and the cherry lime-aid. They still make milkshakes with ice cream and milk, fresh bananas and chocolate syrup. (nostalgic sigh) </p>
<p>sbergman, if there's a Sonic within walking distance of your school, my son might rethink being within 4 hours of home.</p>
<p>More of a bike ride than a walk but on the nightly van run (called the "Pig Run" because it also stops at the Piggly Wiggly, how's that for nostalgia?).</p>
<p>The Sonic is a recent addition. Story (rural myth?) is that a student at the nearby college told her father that s/he wouldn't go to school here because there wasn't a Sonic and dad was able to take care of the objection. Sonic, by the way, does not seem to be suffering any negative effects of the downturn in the economy.</p>
<p>Just a follow up on my last. The bus stop gossip is that 35 students will not be returning to Brunswick next Fall. I understand that 25 of those will not be returning January 2009. I don't know what grades.</p>
<p>To summarize, with points relevant to this discussion, the top of the college market, those colleges which offer FA to meet all need, Harvard, Yale, etc., are seeing an increase in applications. Those colleges which can't offer generous financial aid are seeing their application numbers running lower than this time last year. Some will not fill their classes, which will require cuts. State universities are seeing noticeable increases in numbers of applications.</p>
<p>To translate to the boarding schools, Exeter, Andover, and other schools which offer full FA, will see an increase in applications, with a greater percentage seeking aid. Schools which can't offer FA may see a decrease in applications.</p>
<p>The Congressional Budget Office just released economic predictions: 2.2% contraction in 2009 and probably over 9% unemployment; maybe very weak growth in 2010. This is really really miserable.</p>
<p>Is this going to affect the financial aid picture at the top tier schools, or will it be business as usual?</p>
<p>Miserable is certainly right. For folks like me who may have to consider loans, what impact has the credit tightening had on loans for boarding school. I have heard reports of college students not being able to get student loans, what about parents considering boarding school, any direct experiences out there.</p>
<p>Schools I am familiar with are stating they will maintain their commitment to economic diversity - which means they are cutting operating budgets in places other than financial aid, and deferring capital projects. They can probably do this for one year, after that it will be harder to sustain.</p>
<p>But every financial aid committment they make is for two or three or even four years! On the other hand, a full pay is like money in the bank for several years. Unfortunately, there must be some temptation to compromise on socioeconomic diversity.</p>