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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Tuition never covers financial aid.

Let's say a school has an annual budget of $10 million.  The school will have several revenue streams to get to that $10 million - tuition, summer camps, facility rentals, fundraising.  Some schools may have an endowment that throws off income as well.

Tuition is the largest income stream, but it would never cover the full budget, hence the other income streams.

Most financial aid is going to be covered by fundraising and income from an endowment.

That's a really crude and simple breakdown of the overall budget picture.

- Former board member of a local independent school[/quote]

What you meant was: Tuition never [b]fully[/b] covers financial aid. Right?

So, tuition covers some of the financial aid?[/quote]

PP here - if you view money as being fungible, then you could argue that some tuition covers some financial aid, but that's not generally how schools view it.

It would be the rare school where full pay families are actually covering the full cost of the education (I've been involved with multiple schools and never saw tuition covering the full cost per child).  In other words, if you're paying full freight, you're not subsidizing the family paying 60% of the sticker price.  [b]Your tuition may cover 90% of the actual cost for your child.  So the extra 10% for you[/b] and the extra 40% for the other family [b]have to come from other revenue streams[/b] as I outlined above.  I think there are some full pay families (and others) who think the full pay families are, from their tuition alone, helping to pay for other students.  That's generally not true.

Again, this is all on a really superficial level and doesn't get into other aspects of a budget that need to be addressed by the school.  [/quote]

The bolded part is false for at least top DMV private schools.  If you are full pay $50k+ for your child, the tuition certainly covers your child's cost.  As you said, tuition is the largest stream of all sources, and usually it is at least 80%.  If a full tuition of $50K+ cannot cover the cost of a student, something is wrong with school.[/quote]

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