When will Private Schools' bubble burst ?

[Anonymous]

35k , who is paying that next year? It's now 40k( oh ,excuse me: $39,750) .35k is soooo "last year" .

[Anonymous]

Yeah, I think instead of raising tuition to " on campus students" DC privates should sell their curriculum to Indian and Chinese students for online coarses, or in CTY fashion, sell it to non-admitted kids who "test in".

Of course, after a few years of that income, they'd become dependent on that too, and would looking for still more revenue sources.

My question: who beyond the hand picked boards at these schools has oversight as to if this money is really being used well. Do the accreditation review boards look into finances to verify spending patters c/w non-profit status?

[Anonymous]

Anonymous wrote:My question: who beyond the hand picked boards at these schools has oversight as to if this money is really being used well. Do the accreditation review boards look into finances to verify spending patters c/w non-profit status?

You as a consumer have this power. Quit whining about it here, and look at your school's 990 form. Or better yet, just ask the school for a copy of its financial statement. If you don't think the money is being spent wisely, leave the school.

Are you the same person who rants about 3x/yr about how private schools should have their non-profit status revoked?

[Anonymous]

Anonymous wrote:

Anonymous wrote:My question: who beyond the hand picked boards at these schools has oversight as to if this money is really being used well. Do the accreditation review boards look into finances to verify spending patters c/w non-profit status?

You as a consumer have this power. Quit whining about it here, and look at your school's 990 form. Or better yet, just ask the school for a copy of its financial statement. If you don't think the money is being spent wisely, leave the school.

Are you the same person who rants about 3x/yr about how private schools should have their non-profit status revoked?

No, am not that person. And I don't think the 990 form is the be all and end all. No doubt it is prepared with the help of a tax professional that financially advises up to the value of their retainer. My question: does anyone ever audit these 990's?

Does no one else out there find it odd that every school in town has claimed that it needs to nearly double it's tuition over past 6 years? If any company doubled its operating expenses while mostly keeping its product unchanged, wouldn't a good business person ask what ALL that increased revenue was going towards?

Laptops can't cost $15,000 a child , schools don't even pay retail for computers.

[Anonymous]

Anonymous wrote:Another $150 HHI with a kid in private because it is a priority. "Don't tell me it's a matter of priority until you've lived in my house and paid my bills"? Why no, I won't be able to live in your house and pay your bills because I can't afford it. And if you wanted to send your kids to private enough you'd sell your big house and buy one next to mine in the working class neighborhood outside the beltway in PG county and live your priorities. The question is not can you afford private, but do you want to? If your publics are good, you probably don't. Simple enough.

+1

[Anonymous]

Anonymous wrote:

Does no one else out there find it odd that every school in town has claimed that it needs to nearly double it's tuition over past 6 years? If any company doubled its operating expenses while mostly keeping its product unchanged, wouldn't a good business person ask what ALL that increased revenue was going towards?

Yes... I went to NCS in the 90's when it was $14k a year. I was astounded to learn how much it is now; there is no way I could afford to send my daughter there. I find it quite disgusting, actually.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Does no one else out there find it odd that every school in town has claimed that it needs to nearly double it's tuition over past 6 years? If any company doubled its operating expenses while mostly keeping its product unchanged, wouldn't a good business person ask what ALL that increased revenue was going towards?

Yes... I went to NCS in the 90's when it was $14k a year. I was astounded to learn how much it is now; there is no way I could afford to send my daughter there. I find it quite disgusting, actually.

I also find it odd. As a teacher at a selective private school in the area, I have been surprised at what I consider wasteful spending geared, that allows the school to take flashy images and sell the school, rather than facilitating high quality education. I agree with the PP who encouraged parents to look into where the school is choosing to spend their money and would add that they should ask how such facilities or technology are being used to promote their child's education. Additionally, what research was used to support the initiative? There are so many dedicated parents at my school (for which I am eternally grateful), but I feel like their blind faith is being taken advantage of to support programs that bring in other wealthy families, instead of providing the current families what they paid for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As most people on this forum are keenly aware, Private school tuition has climbed from 24K in 2006 to 35K-40K a year in 2013 ( nearly doubled in the last 6 years) . Many upper middle class families with incomes in 250K to 350K range feel priced out, particularly if they have 3 kids.

My question: are these schools using this money wisely ? Have the schools started to hit a tuition figure of diminishing return ( its so high they have to give more and more FA, to get the families they need/want) Why not just charge less, and give less FA ?

Is FA REALLY where this money is going in these "non-profits".

Something smells. I sense a bubble about to burst and last time I felt that way was 2005, 2006.

If the last time you felt this way was 2006, and tuitions have now doubled with applications going up, perhaps your analysis is off...

I don't think applications are going up. I bet they are down over all, particularly for Pre-K through grade 3 . I'd also bet schools are stomaching a lot more wealthy,but wack job parents that they would have passed on before. Decisions like that make it hard on teachers and good teachers and quality Admin who are not ass kissers start leaving. Sooner or later, purely catering to the uber rich who think and operate like they basically own you, is bad for education.

Its kind of like what happens when a bad element moves into a neighborhood. Pretty soon, everyone else leaves and THEN, you are stuck.

I wish it was true that applications for K-4 are down, but having just completed the process for a second time in 4 years, I can tell you that all indications are that they are up or in the same place they were 4 years ago. There appears to be no shortage of people in this town that can afford the tuition. We applied to Big 3-5 and were told throughout different stages of the process that there were literally hundreds of applications for class sizes ranging from app. 20-45 spots.

I also don't see a clear analogy to housing bubble since most people never owned and simply borrowed more than they coud adford. This simply is not the case with private school tuition, where the majority are not receiving FA and are forced to pay outright when full tuition is due and not on borrowed money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This same exact thread has been started every year for the past at least 5 years with someone always claiming the bubble was just about to burst.

You can abandon hope that will happen.

You're probably right. What does it matter if Sidwell, NCS and StA are filled with the clueless about life offspring of people that have profited heavily from feeding off the carcasses of the very poor: Beltway Bandits, IT execs (to provide tech support to chicanery) owners of huge car dealerships and or drugstore/liquor store chains/ crappy rental real estate slum lords, successful ambulance chasers and the 3rd or 4th generation Rockefellers, Kennedys, Tunneys, fill-in-the-blank-senator/judge's grandchildren thrown in to make it look respectable and you've got an endless loop of applicants and graduates. Every institution in America is being overrun with vulgarians with huge wads of blood money stuffed under the seat cushions of their Aeron chairs. Abandon hope, indeed.

Or just ordinary folks who worked their way though college and graduate school are are now successful enough to send their kids to the best schools with no FA. Nothing is stopping you from doing the same except your myopic views and prejudices.

[Anonymous]

Anonymous wrote:35k , who is paying that next year? It's now 40k( oh ,excuse me: $39,750) .35k is soooo "last year" .

I believe you're exaggerating tuition costs by a bit. I just a few examples checked online.

Sidwell $33-34k
Holton $33-35k
NCS $35k
STA $37k

Still very expensive, but claiming that tuition is $40k seems a stretch. Whose tuition is $40k ... or even $39.75k?

[Anonymous]

As an ncs alum from the 90s whose tuition started at 7000 and torpedo out at 10000, I am annoyed by the ridiculously lavish athletic center they built. That money invested well in the endowment would have been better served going to teachers' salaries and lower tuition.

[Anonymous]

Anonymous wrote:Another $150 HHI with a kid in private because it is a priority. "Don't tell me it's a matter of priority until you've lived in my house and paid my bills"? Why no, I won't be able to live in your house and pay your bills because I can't afford it. And if you wanted to send your kids to private enough you'd sell your big house and buy one next to mine in the working class neighborhood outside the beltway in PG county and live your priorities. The question is not can you afford private, but do you want to? If your publics are good, you probably don't. Simple enough.

Right on!!!

[Anonymous]

You're probably right. What does it matter if Sidwell, NCS and StA are filled with the clueless about life offspring of people that have profited heavily from feeding off the carcasses of the very poor: Beltway Bandits, IT execs (to provide tech support to chicanery) owners of huge car dealerships and or drugstore/liquor store chains/ crappy rental real estate slum lords, successful ambulance chasers and the 3rd or 4th generation Rockefellers, Kennedys, Tunneys, fill-in-the-blank-senator/judge's grandchildren thrown in to make it look respectable and you've got an endless loop of applicants and graduates. Every institution in America is being overrun with vulgarians with huge wads of blood money stuffed under the seat cushions of their Aeron chairs. Abandon hope, indeed.

awesome rant, pp

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My question: who beyond the hand picked boards at these schools has oversight as to if this money is really being used well. Do the accreditation review boards look into finances to verify spending patters c/w non-profit status?

You as a consumer have this power. Quit whining about it here, and look at your school's 990 form. Or better yet, just ask the school for a copy of its financial statement. If you don't think the money is being spent wisely, leave the school.

Are you the same person who rants about 3x/yr about how private schools should have their non-profit status revoked?

No, am not that person. And I don't think the 990 form is the be all and end all. No doubt it is prepared with the help of a tax professional that financially advises up to the value of their retainer. My question: does anyone ever audit these 990's?

Does no one else out there find it odd that every school in town has claimed that it needs to nearly double it's tuition over past 6 years? If any company doubled its operating expenses while mostly keeping its product unchanged, wouldn't a good business person ask what ALL that increased revenue was going towards?

Laptops can't cost $15,000 a child , schools don't even pay retail for computers.

At Holton you have to buy your own laptop. It's not included in tuition.

[Anonymous]

Anonymous wrote:

Anonymous wrote:35k , who is paying that next year? It's now 40k( oh ,excuse me: $39,750) .35k is soooo "last year" .

I believe you're exaggerating tuition costs by a bit. I just a few examples checked online.

Sidwell $33-34k
Holton $33-35k
NCS $35k
STA $37k

Still very expensive, but claiming that tuition is $40k seems a stretch. Whose tuition is $40k ... or even $39.75k?

I wonder why you are on the Private School forum, when seemingly you do not have a child in private yourself. Everyone who does, knows that what is published on the website is last years tuition. If you had a kid in private and looked at the mailing that came with your contract, you'd know that the figures you quoted above just went up 4-6% across the board. Why are you debating a subject you clearly have no knowledge of without a dog in the fight to boot.