Time To Trade Up?

The worst recession we have seen in decades combined with a shrinking enrollment pool together with rising tuition fees and falling endowment yields equals a recipe for some very tough times for many private schools. In August 2008 before the financial maelstrom hit, Patrick Bassett, the President of NAIS, was quoted in the Washington Post warning of the perfect storm for private school enrollments. August 2008 seems like light years ago considering the economic meltdown which has occurred since. One can only assume that the perfect storm is indeed at hand.

Many schools have substantial endowments which, even with a 20-30% drop in their book value, will enable them to survive. These schools will continue to offer generous financial aid packages and attract more applicants than they have places for. Other schools will not be so fortunate.

What does this mean for parents? This just might be the time for you to trade up to that school you really wanted your children to attend. As enrollments decline and the application pool shrinks, boards will get jittery. The admissions offices will be more inclined to sweeten the financial aid pot and/or discount tuition. After all, they cannot have unfilled places in their incoming classes and survive for long.

Do your research. Make sure your child offers every last thing the school of your dreams wants. Start the search process early. Then go for it!