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Reply to "Sidwell tuition increase"
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[quote=Anonymous]Financial aid is creates a vicious cycle. A large financial aid budget enables schools to attract a more diverse group of families which then increases the rack rate for tuition which then increases the need for financial aid . . . An alternative approach - everyone gets on board with larger annual fund contributions. Taken to its extreme - school charges $100 tuition but then expects everyone to pony up $40k or so in annual fund contribution. School meets its budget, families end up paying less because they can count this as a charitable contribution. Obviously this wouldn't work in the extreme but the more people contribute to the annual fund the more latitude the board has to reign in tuition increases.[/quote]
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