Sidwell tuition increase

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If the stock market has done so well lately, wouldn’t their endowment also do well? I don’t know how these things work so I am asking seriously. And if so, couldn’t they ramp back some of the tuition increase?.

Yes, they could.

But doesn't that wouldn't necessarily be a good idea. Eventually, there will be an economic downturn, in which case the endowment won't do well, tuition increases will hit families even harder than they do now, and need for financial aid will increase. Smart schools save the windfall they get from a strong economy to help them through those down times, then spend more to help families when the need is greatest.

So did they actually do that in the last downturn?

Listen Moms. None of you run a school so pipe down or leave if you are an unsatisfied customer. All of you have choices. If SFS is not for you, get off this thread and start planning for a new school for your kid next year. There are plenty of families who will take your spot and gladly run with the good and the bad of the place. And btw there is good and bad everywhere. Welcome to adulthood.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If the stock market has done so well lately, wouldn’t their endowment also do well? I don’t know how these things work so I am asking seriously. And if so, couldn’t they ramp back some of the tuition increase?.

Yes, they could.

But doesn't that wouldn't necessarily be a good idea. Eventually, there will be an economic downturn, in which case the endowment won't do well, tuition increases will hit families even harder than they do now, and need for financial aid will increase. Smart schools save the windfall they get from a strong economy to help them through those down times, then spend more to help families when the need is greatest.

So did they actually do that in the last downturn?

Listen Moms. None of you run a school so pipe down or leave if you are an unsatisfied customer. All of you have choices. If SFS is not for you, get off this thread and start planning for a new school for your kid next year. There are plenty of families who will take your spot and gladly run with the good and the bad of the place. And btw there is good and bad everywhere. Welcome to adulthood.

That a pretty strong response to a valid follow up question.

-- parent who saved for and anticipates the increases, and who also likes to discuss things when there is obviously not a consensus

[Anonymous]

Most endowments pay out a certain percentage of their principal (say 4%) based on an average of its year-end amounts over a multi-year period (e.g., 4-5 years). They use this lookback approach so as to avoid paying out too much in a good year or too little after a bad one.

Also, a great deal of thinking has gone into the increasing tuition problem. Everyone can see it won’t end well. But I don’t know of schools that have solved the problem but through the creation of massive endowments and very successful annual fund campaigns. The world awaits she who finds another way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Whitman Free
B-CC Free
Blair Free
TJ Free
WJ Free
Wooton Free
Churchill Free

love love love

We moved one DC from private school to one of those and while money was not a factor I have admit it was nice not to have to pay tuition! DC loved the school and got a great education. The sum total of PTA fees, sports boosters fees, sports uniforms and swag, donations to the Education Foundation, donations to various student led fundraisers, etc. probably totaled $600/year (and most of that was optional). I guess we paid for lunch. Freed up plenty of money for DC to do a summer international exchange program through the school and other school sponsored trips.

+1. We make enough that we could relatively comfortably pay tuition with major sacrifices, but no so much that tuition is irrelevant and it wouldn't be nice to have an extra $500k around per kid over the lifetime of the tuition.

We decided it just wasn't worth it anymore with such strong public options available. There are pros and cons to each, ignoring the money, and we just didn't think it made sense to continue.

The fact that we knew tuition would continue to climb considerably was certainly a factor in that decision, both from a dollar standpoint and a principle standpoint.

[Anonymous]

Anonymous wrote:

One solution is to decrease the huge financial aid budget. Currently SFS has $7 million annual FA budget; 23% of students receive FA and the average FA award is $ 26900. Certain amount of FA is good and necessary to attain the talents and maintain a diversified student body. But such a large amount the school currently gives out is not necessary, in particular when many full pay hard working families are struggling with the increase. I thnks the teachers deserve to receive good benefits and an increase in salary, but many families on FA do not deserve. SFS should have no issue to maintain a good diversified student body with significant cut to the FA budget.

The school has made diversity and particularly economic diversity a priority. Having a large FA pool reflects that value.

Good luck trying to change it.

[Anonymous]

Anonymous wrote:If the stock market has done so well lately, wouldn’t their endowment also do well? I don’t know how these things work so I am asking seriously. And if so, couldn’t they ramp back some of the tuition increase?.

I am sure the endowment has grown, but not enough to materially impact the decisions to be made for the next 12 months. Endowments depend on yield, not basis.

[Anonymous]

Anonymous wrote:40,840 currently
42,371 2017-2018
43,959 2018-2019
45,607 2019-2020
47,317 2020-2021
49,091 2021-2022

That's insane.

[Anonymous]

Anonymous wrote:Sidwell is losing its way. The administration and board is far too focused on the campus integration and raising something like $150m. the school was once special because it did not feel the need to keep up in hardware with places like St Albans and NCS.

i am an alum and have a DS there but am increasing thinking of taking him out as I really feel like it is losing its moral core as it focuses too much on money and prestige. Sad.

I disagree. They had a once in a century chance to obtain the land immediately around the campus and have control going forward. It would have been a dereliction of duty not to take advantage. Now they have to figure it out, but even if they can consolidate the campuses (and use the proceeds from selling the Bethesda campus to cover a decent chunk) and lease out the soon to be former Fannie Mae building, it will be better for the longer term outlook to have control for the future.

[Anonymous]

Anonymous wrote:That core was lost long ago. Now it will continue to lose its “middle class” (teachers, scientists, professors, public defenders, writers etc). Does it care? Obviously not. It will still have applicants and fill classes. But it is a sad state for what was a special place.
Garman may not be on the board, but I know he could have a cultural influence. Nice guy, I guess. But he hasn’t done anything.

Ironically, I know many among the current parent community who are of those exact professions you cite.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If the stock market has done so well lately, wouldn’t their endowment also do well? I don’t know how these things work so I am asking seriously. And if so, couldn’t they ramp back some of the tuition increase?.

Yes, they could.

But doesn't that wouldn't necessarily be a good idea. Eventually, there will be an economic downturn, in which case the endowment won't do well, tuition increases will hit families even harder than they do now, and need for financial aid will increase. Smart schools save the windfall they get from a strong economy to help them through those down times, then spend more to help families when the need is greatest.

So did they actually do that in the last downturn?

Yes

[Anonymous]

+10


Listen Moms. None of you run a school so pipe down or leave if you are an unsatisfied customer. All of you have choices. If SFS is not for you, get off this thread and start planning for a new school for your kid next year. There are plenty of families who will take your spot and gladly run with the good and the bad of the place. And btw there is good and bad everywhere. Welcome to adulthood.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:From the Bureau of Labor Statistics:

Total compensation costs for private industry workers increased 2.5 percent in the Washington-Baltimore-Northern Virginia, D.C.-Md.-Va.-W.Va., metropolitan area for the year ended September 2017 the U.S. Bureau of Labor Statistics reported today. . . . Locally, wages and salaries, the largest component of total compensation costs, advanced at a 3.3-percent pace for the 12-month period ended September 2017. Nationwide, total compensation costs rose 2.5 percent over the year and wages and salaries advanced by 2.6 percent.

Private schools are people intensive businesses. Comp costs drive the tuition raises. Add in campus improvements and tuition rises even further.

Will every parent see the same rise in wages and salaries? Of course not. And that's a shame and I feel for those that are in that position.

+1 to this; thanks for sharing actual facts

Also, schools will tend to be above average in annual increases. For public schools they follow the union-negotiated scaled which usually involves a step increase annually (which is usually in the 2-5% range) plus a cost of living adjustment for inflation. If private schools want to be able to compete for good teachers (particularly in a tight labor market like we see now) they have to match these annual increases.

I totally understand not liking the increases and being concerned about affordability. Believe me, the administration and boards of these schools share your concerns. But so far no one has come up with a solution. If you have a solution that allows them both to maintain their current programs and maintain their ability to hire good teachers without these tuition increases, please, share.

One solution is to decrease the huge financial aid budget. Currently SFS has $7 million annual FA budget; 23% of students receive FA and the average FA award is $ 26900. Certain amount of FA is good and necessary to attain the talents and maintain a diversified student body. But such a large amount the school currently gives out is not necessary, in particular when many full pay hard working families are struggling with the increase. I thnks the teachers deserve to receive good benefits and an increase in salary, but many families on FA do not deserve. SFS should have no issue to maintain a good diversified student body with significant cut to the FA budget.

This is an approach taken by several very highly-regarded private schools in other parts of the country which currently charge significantly less in tuition, particularly in the lower and middle school divisions, and yet still manage to attract a diverse student body.

Yep

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:From the Bureau of Labor Statistics:

Total compensation costs for private industry workers increased 2.5 percent in the Washington-Baltimore-Northern Virginia, D.C.-Md.-Va.-W.Va., metropolitan area for the year ended September 2017 the U.S. Bureau of Labor Statistics reported today. . . . Locally, wages and salaries, the largest component of total compensation costs, advanced at a 3.3-percent pace for the 12-month period ended September 2017. Nationwide, total compensation costs rose 2.5 percent over the year and wages and salaries advanced by 2.6 percent.

Private schools are people intensive businesses. Comp costs drive the tuition raises. Add in campus improvements and tuition rises even further.

Will every parent see the same rise in wages and salaries? Of course not. And that's a shame and I feel for those that are in that position.

+1 to this; thanks for sharing actual facts

Also, schools will tend to be above average in annual increases. For public schools they follow the union-negotiated scaled which usually involves a step increase annually (which is usually in the 2-5% range) plus a cost of living adjustment for inflation. If private schools want to be able to compete for good teachers (particularly in a tight labor market like we see now) they have to match these annual increases.

I totally understand not liking the increases and being concerned about affordability. Believe me, the administration and boards of these schools share your concerns. But so far no one has come up with a solution. If you have a solution that allows them both to maintain their current programs and maintain their ability to hire good teachers without these tuition increases, please, share.

One solution is to decrease the huge financial aid budget. Currently SFS has $7 million annual FA budget; 23% of students receive FA and the average FA award is $ 26900. Certain amount of FA is good and necessary to attain the talents and maintain a diversified student body. But such a large amount the school currently gives out is not necessary, in particular when many full pay hard working families are struggling with the increase. I thnks the teachers deserve to receive good benefits and an increase in salary, but many families on FA do not deserve. SFS should have no issue to maintain a good diversified student body with significant cut to the FA budget.

This is an approach taken by several very highly-regarded private schools in other parts of the country which currently charge significantly less in tuition, particularly in the lower and middle school divisions, and yet still manage to attract a diverse student body.

Yep

So present it to the board and ask them why they are not pursuing this strategy.

[Anonymous]

The hostility directed at those who dare question the tuition increase is silly. I want other sidwell parents to know that the majority of us are sympathetic and understanding of the different financial positions and sacrifices most of us have to make and that these increases have a very real effect on many. It’s an awful predicament of higher education. That merits attention and productive discussion. Please ignore the blowhards.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:From the Bureau of Labor Statistics:

Total compensation costs for private industry workers increased 2.5 percent in the Washington-Baltimore-Northern Virginia, D.C.-Md.-Va.-W.Va., metropolitan area for the year ended September 2017 the U.S. Bureau of Labor Statistics reported today. . . . Locally, wages and salaries, the largest component of total compensation costs, advanced at a 3.3-percent pace for the 12-month period ended September 2017. Nationwide, total compensation costs rose 2.5 percent over the year and wages and salaries advanced by 2.6 percent.

Private schools are people intensive businesses. Comp costs drive the tuition raises. Add in campus improvements and tuition rises even further.

Will every parent see the same rise in wages and salaries? Of course not. And that's a shame and I feel for those that are in that position.

+1 to this; thanks for sharing actual facts

Also, schools will tend to be above average in annual increases. For public schools they follow the union-negotiated scaled which usually involves a step increase annually (which is usually in the 2-5% range) plus a cost of living adjustment for inflation. If private schools want to be able to compete for good teachers (particularly in a tight labor market like we see now) they have to match these annual increases.

I totally understand not liking the increases and being concerned about affordability. Believe me, the administration and boards of these schools share your concerns. But so far no one has come up with a solution. If you have a solution that allows them both to maintain their current programs and maintain their ability to hire good teachers without these tuition increases, please, share.

One solution is to decrease the huge financial aid budget. Currently SFS has $7 million annual FA budget; 23% of students receive FA and the average FA award is $ 26900. Certain amount of FA is good and necessary to attain the talents and maintain a diversified student body. But such a large amount the school currently gives out is not necessary, in particular when many full pay hard working families are struggling with the increase. I thnks the teachers deserve to receive good benefits and an increase in salary, but many families on FA do not deserve. SFS should have no issue to maintain a good diversified student body with significant cut to the FA budget.

I so agree with this. Frankly I am getting sick and tired of subsidizing other perfectly-well-off-but-not-tip-top-earner families. The holy grail of "diversity" is not worth it.