Financial aid "dried up"

[Anonymous]

Anonymous wrote:Oh please, if your finances are as precarious as you say then you have no business sending your child to an expensive school that charges $30k plus per year.

Why do you think other people (financial aid donors) should help you pay for this luxury? I understand paying for a child with no other opportunities...but not for a child who has engaged, working parents who just don't want to change their lifestyle to find a good school system (of which there are many in this area). Honestly, if you want a good school system for your child, take your lumps, move and find it. It is too bad that you don't think you should have to make these tough compromises/decisions/etc. Why should some other person (financial aid donor) supplement something which is, for you, essentially a life choice...and why should a child with no options have to share financial aid dollars with you? Grow up and make the tough choices we all make.

Financial aid is part of the operating budget and philosophy of almost every school mentioned on this board. And it's intended not only for those living in poverty, but to help middle class families be able to afford to attend.

If you don't believe in tuition adjusted to a family's ability to pay, then it's you who should be looking at publics. You aren't in the right place.

[Anonymous]

Anonymous wrote:Oh please, if your finances are as precarious as you say then you have no business sending your child to an expensive school that charges $30k plus per year.

Why do you think other people (financial aid donors) should help you pay for this luxury? I understand paying for a child with no other opportunities...but not for a child who has engaged, working parents who just don't want to change their lifestyle to find a good school system (of which there are many in this area). Honestly, if you want a good school system for your child, take your lumps, move and find it. It is too bad that you don't think you should have to make these tough compromises/decisions/etc. Why should some other person (financial aid donor) supplement something which is, for you, essentially a life choice...and why should a child with no options have to share financial aid dollars with you? Grow up and make the tough choices we all make.

Financial aid is part of the operating budget and philosophy of almost every school mentioned on this board. And it's intended not only for those living in poverty, but to help middle class families be able to afford to attend.

If you don't believe in tuition adjusted to a family's ability to pay, then it's you who should be looking at publics. You aren't in the right place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I assume the "established" schools are big 3, 5, 10, but what are the "nouveau" schools? We would need FA to send DD to a private, so are wondering if there are any "don't bother" schools in terms of likelihood of actually receiving FA. Sorry, new to the process too.

The schools established before WWII tend to be well established and able to accomodate those who need FA- these include: Prep (1789), Viz (1799), Gonzaga (1821), AHC (1868),Sidwell (1893), Cathedral (1900), Holton(1901), Potomac (1904), Madeira (1906), St Albans (1909), Stone Ridge (1923) Landon (1929) and Bullis (1930).

FWIW -endowment:

Holton $51 million
Sidwell $47 million
STA $45 million
Potomac $35 million
Cathedral $22 million
Landon $14 million
Maret $13 million
GDS $10 million

Prep is getting $888 million over 99 years from its ground lease deal alone. I’m not sure how the payments are spread or what the present value of the $ is, but I’ve got to imagine that Prep is now more established than any of these schools.

[Anonymous]

Georgetown Prep's current endowment appears to be $20 million.
http://www.boardingschoolreview.com/school_ov/school_id/232
http://www.businessinsider.com/most-expensive-boarding-schools-2011-9?op=1
Interesting also that according to the Business Insider article, GP is the 12th most expensive boarding school in the nation ... but still cheaper than 4th most expensive St Albans, and 3rd most expensive Sandy Spring Friends School (!?).

GP's transfer of land to the apartment developer is interesting. I was not aware of the details.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/28/AR2007012801126.html
http://www.ourkids.net/dialogue-new/article.php?id=186
Apparently, the lease was instigated by GP's desire to build a $70 million athletic center. It funded construction through a bond offering, and needs the lease payment stream to pay on the bonds. So in effect, the lease doesn't seem likely to add to the school's endowment for some time to come. The lease payments will total $888 million if they continue for the full 99 years. In present dollars, they really amount to only $1.6 million per year, increasing at 3% per year to (hopefully) keep pace with inflation. (Does anyone know a good NPV calculator online that can determine the effective present value of that payment stream?) Sounds like GP got a new athletic center, and the developer got a pretty prime piece of real estate for its apartment complex. Good deal for both sides.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Oh please, if your finances are as precarious as you say then you have no business sending your child to an expensive school that charges $30k plus per year.

Why do you think other people (financial aid donors) should help you pay for this luxury? I understand paying for a child with no other opportunities...but not for a child who has engaged, working parents who just don't want to change their lifestyle to find a good school system (of which there are many in this area). Honestly, if you want a good school system for your child, take your lumps, move and find it. It is too bad that you don't think you should have to make these tough compromises/decisions/etc. Why should some other person (financial aid donor) supplement something which is, for you, essentially a life choice...and why should a child with no options have to share financial aid dollars with you? Grow up and make the tough choices we all make.

Financial aid is part of the operating budget and philosophy of almost every school mentioned on this board. And it's intended not only for those living in poverty, but to help middle class families be able to afford to attend.

If you don't believe in tuition adjusted to a family's ability to pay, then it's you who should be looking at publics. You aren't in the right
place.



Completely agree with poster above (not original poster)

[Anonymous]

Anonymous wrote:Georgetown Prep's current endowment appears to be $20 million.
http://www.boardingschoolreview.com/school_ov/school_id/232
http://www.businessinsider.com/most-expensive-boarding-schools-2011-9?op=1
Interesting also that according to the Business Insider article, GP is the 12th most expensive boarding school in the nation ... but still cheaper than 4th most expensive St Albans, and 3rd most expensive Sandy Spring Friends School (!?).

GP's transfer of land to the apartment developer is interesting. I was not aware of the details.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/28/AR2007012801126.html
http://www.ourkids.net/dialogue-new/article.php?id=186
Apparently, the lease was instigated by GP's desire to build a $70 million athletic center. It funded construction through a bond offering, and needs the lease payment stream to pay on the bonds. So in effect, the lease doesn't seem likely to add to the school's endowment for some time to come. The lease payments will total $888 million if they continue for the full 99 years. In present dollars, they really amount to only $1.6 million per year, increasing at 3% per year to (hopefully) keep pace with inflation. (Does anyone know a good NPV calculator online that can determine the effective present value of that payment stream?) Sounds like GP got a new athletic center, and the developer got a pretty prime piece of real estate for its apartment complex. Good deal for both sides.

Yes a good deal for both sides at the time. Since inflation hasn't been anywhere near 3%, the deal is turning into a huge windfall for Prep (the power of compound interest) --and that for just 4 acres of 90 on the Prep campus.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Georgetown Prep's current endowment appears to be $20 million.
http://www.boardingschoolreview.com/school_ov/school_id/232
http://www.businessinsider.com/most-expensive-boarding-schools-2011-9?op=1
Interesting also that according to the Business Insider article, GP is the 12th most expensive boarding school in the nation ... but still cheaper than 4th most expensive St Albans, and 3rd most expensive Sandy Spring Friends School (!?).

GP's transfer of land to the apartment developer is interesting. I was not aware of the details.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/28/AR2007012801126.html
http://www.ourkids.net/dialogue-new/article.php?id=186
Apparently, the lease was instigated by GP's desire to build a $70 million athletic center. It funded construction through a bond offering, and needs the lease payment stream to pay on the bonds. So in effect, the lease doesn't seem likely to add to the school's endowment for some time to come. The lease payments will total $888 million if they continue for the full 99 years. In present dollars, they really amount to only $1.6 million per year, increasing at 3% per year to (hopefully) keep pace with inflation. (Does anyone know a good NPV calculator online that can determine the effective present value of that payment stream?) Sounds like GP got a new athletic center, and the developer got a pretty prime piece of real estate for its apartment complex. Good deal for both sides.

The linked articles say that that only $23 million of the $70 million raised was used for the athletic center. The remainder was used for student aid and other school operations. Not exactly the same, but much like a $47 million boost to endowment + a state of the art facility. Not bad for 4 acres of forrested property.


Yes a good deal for both sides at the time. Since inflation hasn't been anywhere near 3%, the deal is turning into a huge windfall for Prep (the power of compound interest) --and that for just 4 acres of 90 on the Prep campus.

[Anonymous]

Anonymous wrote:The linked articles say that that only $23 million of the $70 million raised was used for the athletic center. The remainder was used for student aid and other school operations. Not exactly the same, but much like a $47 million boost to endowment + a state of the art facility. Not bad for 4 acres of forrested property.

Oops, you're right on the $23 million athletic center -- not $70 million. The athletic center appears to be the biggest single line item, but the balance of the $70 million was for other things. Per the other links, it seems the endowment remains at $20 million, but the bond offering allowed GP to avoid using that endowment for various projects, so maybe little difference in the end. Here's the key sentence from one of the articles:

In 2003, an analysis identified that Georgetown Preparatory School in North Bethesda, Maryland needed almost $70 million (U.S.)—three times the school’s endowment fund—for athletic [Ed: $23m per other article] and academic facilities, maintenance, salary increases and student aid.

Thanks for catching my mistake.

[Anonymous]

A 2005 article on GP and other schools that enter into creative leasing and side businesses to raise revenue. To the topic of this thread, this article seems to suggest GP hoped to use the bond offering to hold down tuition. Anyone from GP able to say whether it succeeded?
http://online.wsj.com/article/0,,SB110669325680635870,00.html

And in big cities where private-school waiting lists are long, headmasters worry about an uncomfortable social dynamic if staggering tuition bills squeeze out everyone except rich kids and scholarship students. "I don't want the tuition so high that you frighten kids away," says the Rev. William George, president of Georgetown Prep, where annual tuition is $18,600.

Georgetown Prep's venture into real estate started two years ago when the Jesuit-run boys' school ran a "needs analysis" that identified $68 million in salary increases, student aid, maintenance and new construction -- or more than triple the endowment. The school's solution was to offer a 99-year lease on three of its 91 acres to Dallas-based JPI Apartment Development LP, which plans to break ground this winter on 473 apartments. JPI will pay the school $1.3 million a year in ground rent, which Georgetown Prep plans to use to finance construction of a new field house.

Another article on the same topic. http://ww2.gazette.net/stories/013107/bethnew214416_32335.shtml

The new center includes a 950-seat competition basketball gym, four practice courts, an 11-lane competition swimming pool, a 6,000-square-foot weight training room, a wrestling room and Montgomery County’s only 200-meter indoor track. ‘‘It’s kind of like a Verizon Center for kids,” said the Rev. William L. George, school president. ‘‘It’s attracting a lot of attention. It’s beautiful.” The school’s 99-year agreement with Texas real estate firm JPI, allowed Georgetown Prep to build the 150,000-square-foot, $23 million building without raising tuition or enrollment or using charitable contributions. ... From the agreement, which was finalized in 2004, the school was able to update its golf course and sports fields, build the athletic center and have money coming in for years for improvements and other projects.

And another article, from the developer's perspective.
http://www.housingfinance.com/aft/articles/2008/jul-aug/partingshotslease070808.htm

When Georgetown Prep issued its request for proposals in 2003, in the middle of the condominium boom, no condo developers bid for the right to build on three acres of the school’s golf course. That’s because the school wasn’t willing to sell the land. Instead, it wanted to lease the site and use the income to pay for building a new 30,000-square-foot athletic center. ... The money JPI saved on the cost of construction allowed it to make the high bid of $130,000 a month on the 99-year ground lease. Inigo’s Crossing cost $90 million to develop, with a hard cost of $75 million, or $160 per square foot.