Reply to Let's Brainstorm Schools That Might Still Be Accepting Students

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[quote=Anonymous]The other issue facing all schools is this:

The current tuition levels are becoming unsustainable for many. I hear some say, “Oh, yes, but people said that 20 years ago and nothing happened.”  The fact is that tuition rates of schools increase by close to 50 percent every 10 years if you assume 4 percent annual increase in tuition.

With current tuition rates, fewer people can afford K-12 throughout. So what tends to happen is that the top K-12s might still have their pick if students, other schools like the k-8s might have to fight a bit harder for the overall smaller pool of kids. And the high costs also mean that some families will simply defer private school until high school to reduce the outlay. This again points to weaker demand across the board in the K8 range. This is a cliff schools need to anticipate.

Doge will also have spillover effects on the DC economy and will permeate sector across the board that could also see not just those in government questioning whether they can continue to afford private school.

Some private schools also developed a false sense of security as demand for school outpaced available slots during Covid because public schools did such a poor job. While some kids stayed in the private schools system, a large number have also returned to public schools.

Schools that continue on this path of unabated increases could hit a wall and should ensure they have robust reserves and/or stand ready to cut costs.

But the bottom line is the board should have seen this train wreck coming and should have taken measures several years and years ago — whether it was via the annual fund and other donor outreach or finding ways to reduce expenditures, renegotiate with creditors, etc.

This should be a cautionary tale for any school on shaky financial ground or thinking about undertaking big expenditures.  
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