Private Schools Charted a Conservative Fiscal Course

Prep Schools Face Cuts in Student Aid confirms what most of us have suspected for some time now. Private school endowments have taken a hit in these tough economic times. The good news is that they have not taken as much of a hit as some major university endowments have. Why is that? I am convinced that it is the result of trustees charting a conservative fiscal course when it comes to their fiscal responsibilities and duties. You won't find any derivatives and other exotic investments in private school endowment portfolios. Their physical plants have been updated to save energy costs and make their programs more sustainable.

Supporting this cautious, conservative financial approach is the high regard and affection their graduates have for their alma maters. (Read the comments Peddie grads have left following a recent profile on this site of their beloved school.) If you are grateful to your school for what it has done for you, you will support it over the years. Perhaps you will even remember it in your will as Elizabeth Beckwith Nilsen did with her amazing gift of $31 million for Chatham Hall School. All these factors combine to make most private schools financially stable and poised to weather the economic storms we will face in the months and years ahead.

If you need financial aid, don't panic. Be proactive. If you are going through the applications process for admissions in fall 2010, don't delay. File the Financial Aid Forms as soon as you can. If you are one of those fortunate families who needs no financial aid, you might want to investigate schools which normally might have been a reach. If you don't need financial aid and everything else is what the school is looking for, you just might - no guarantees - get the acceptance you are looking for. Always hedge your bets when applying to private schools and colleges. Include a safe school or two on your list.

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