Paying For It

The article in the New York Times sounds ominous. Certainly, as it points out, private school endowment funds have seen declines in their value as a result of economic and financial meltdowns. But there are other factors which the article does not address which make the impact on financial aid less of an issue than the writer would have you believe.

Let's look at the facts.

Conservative Investment Policies

The investment approach for private school endowments has historically been a conservative, cautious approach. Trustees and their advisors have generally been good stewards of their finances. They avoided risky investments such as derivatives and real estate despite calls from some quarters to maximize returns. The reason for the decline in their portfolio value is simple: just about every investment-grade instrument declined.

Sustainability

Back in the 90s, sustainability became an important principle in private school mission statements and philosophies. The National Association of Independent Schools has taken a leadership role in supporting all kinds of sustainability initiatives including financial sustainability with its 1,500 member schools.

From the Nais: "In order for independent schools to thrive in the 21st century, NAIS believes that they must be sustainable along five dimensions: financial, demographic, programmatic, environmental, and global."

As a result, schools with significant endowments (greater than $10 million) generally were well-positioned to weather the economic storm which 2009 brought on with a vengeance.

Financial Aid is a Priority

Financial aid goes to the heart of most private schools' commitments to

Financial aid can be very confusing for many parents. You wonder whether you make too much to be eligible. Is there a specific time when you apply? Here are five facts most of us didn't know about private school financial aid.

1. You have to apply for it.

Applying for financial aid at most private schools is a separate process from applying for admission to the school. You also need to make sure that you apply early. This is particularly important if the school has no specific admissions deadline or rolling admissions.

2. You may be eligible for free tuition if your family income is below a certain amount.

Exeter, Andover, Groton, St. Paul's, and Deerfield all have financial aid programs that offer a tuition-free education to admitted students whose income is below a certain threshold. The threshold varies but is in the $60-75k range.

This video reports of free private school tuition.

"Exeter offers $25 million annually in need-based financial aid. Tuition-free attendance is available for families with incomes below $75,000."

3. There is a common application form.

Many private schools use a common financial aid form. This vastly simplifies the process of applying to several schools. You will have to fill out the Parents' Financial Statement (PFS) online at w w w.nais.org/financialaid/sss. You can also complete a paper version of this application. This

Money always talks. When you pay cash for something, no matter what that something is, you will get a better deal. Or the vendor will offer a cash discount. Or perhaps you can negotiate better terms. Nowadays the same thing applies to getting into private school. Assuming that your child offers everything the school is looking for, if the school knows that you do not need any financial assistance, you can be virtually assured of acceptance. Why is that? What's changed?

This video reports on the ways that the pandemic has affected schools.

The Perfect Storm

World events have a direct impact on private school endowments. They can shrink as much as 20-30%, even more, when the stock market becomes a bear market. You and I can see how a school's finances are impacted by reviewing their tax returns, the Form 990. Form 990 is the tax return not for profit organizations file each year. Most schools file at the end of their fiscal year which typically is June 30.

Added to the market conditions are the vast numbers of jobs that have been shed as companies have folded or downsized. That means there are fewer parents able to afford private school without at least some financial assistance. Another factor is that many parents who were counting on sending their children to private school are scaling back their spending. The result is that there are fewer

Many parents find themselves facing financial challenges when it comes to paying for their child's private school education. It can be especially difficult when circumstances change unexpectedly, such as a job loss, medical expenses, or a decrease in income. However, withdrawing your child from private school or immediately resorting to public school may not be the only option. Let's explore some alternatives and steps you can take in different scenarios.

Scenario A: Uncertain Job Situation

If you're facing uncertainty due to a job loss or potential layoffs, it's understandable to feel concerned about continuing with private school. Before making any decisions, consider reaching out to the school and discussing your situation. Many private schools have financial aid programs in place to assist families during challenging times. By openly communicating your concerns, you may find that the school is willing to work with you to find a solution. They understand the importance of education and retaining students, so they may be able to offer some financial assistance or flexible payment options.

Scenario B: Unexpected Medical Expenses

When unexpected medical bills arise, and you find yourself in a financial bind, it can put additional strain on your ability to pay for private school tuition. In this situation, reaching out to the school and explaining your circumstances is crucial. They may be willing to reassess your financial aid package or offer additional support. Private schools are often compassionate and understand that unforeseen circumstances can affect a family's financial stability. By having

There are only a handful of free private schools in the United States.

• Most of them were founded many years ago by visionary, community-minded individuals.
• These public-minded men and women believed that children from working-class and poor families should have the same educational advantages as children from families with money.
• Several schools have a religious connection, such as Regis High in New York and the Cristo Rey Schools.
• While the details vary from school to school, they all provide a tuition-free education.
• The Cristo Rey schools have a work-study component.

Parental involvement is another feature of these schools.

• These schools have had an enormous impact on society.
• They benefit thousands of students, and their families are priceless.

As you read about these schools and watch the videos, remember that all these schools believe emphatically that an education does not consist solely of academics.

• Each school understands that a child needs nurturing and counseling to maximize the opportunities before him.
• These schools expect the child's family to be involved.
• His education is a partnership of three: home, school, and student. That's what it takes to provide the solid foundation a child needs to succeed in adulthood.

Free Private Schools

De Marillac Academy, San Francisco

De Marillac Academy, San Francisco is an example of the best educational initiative the Roman Catholic Church sponsored.

• Established by the Daughters of Charity and De La Salle Christian Brothers, the school provides tuition-free schooling for middle school-age children in one