As the 40 or so members of Fairchester Independent Schools readied for their annual admissions fair, scheduled for Saturday, Sept. 26 in Stamford, few admissions staff knew what to expect.
At this time last year, Lehman Bros. had collapsed and wealthy parents were readying for huge hits to their home values, stock portfolios and year-end bonuses ”“ which provide much of the disposable income allowing their children to attend prep schools.
Those problems were exacerbated by a collapse in the student loan market that had college-age children scrambling for financial aid, and creating another uncertainty in the family budget.
While local private schools have not reported any significant drop off in enrollment heading into the fall, stories abound throughout the county of public schools absorbing increased numbers of students this year, a probable sign that some parents are putting kids on the school bus in their home districts.
In the plus column, a year after the Wall Street collapse and credit market crisis, Fairfield County continues to enjoy a relatively low unemployment rate compared to other Northeast metropolitan area cities, and hedge funds and other key employment sectors appear to be on the verge of a rebound.
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The Fairchester Independent Schools admissions fair may provide the first inkling of whether the recession will have an impact on students planning to apply for the 2010 academic year for entry to private academies in Fairfield County and Westchester County, N.Y. Beginning with the Rye, N.Y.-based School of the Holy Child”™s Nov. 1 entrance exam, similar exams are scheduled to begin popping up through November, December and January, with Rye Country Day School holding the final exam of the year on May 9, 2010.
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Throughout November, schools will also be holding open houses and tours in a bid to attract new students.
Prep schools have enjoyed a quarter century of remarkable growth, according to Rob Evans, executive director of the Wellesley, Mass.-based Human Relations Service, a consultant to schools and other organizations. During that time, prep schools reaped revenue from expanding enrollments and fundraising even as they raise tuition, allowing them to build new facilities and hire staff.
While concerns have spread in recent years about school affordability, few have worried about the very viability of that model until now, Evans added. He said heads of school everywhere are concerned about potential declines in applications, new demands for financial aid and the ability of schools to raise cash in capital campaigns for new construction or endowments.
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While a few schools have enviable endowments ”“ the assets of the Hotchkiss School in Lakeville are valued at more than $500 million ”“ others lack that kind of muscle and must make ends meet year to year. That puts schools in the unaccustomed position of likely having to lay off staff for economic reasons rather than performance ones, Evans said.
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Private-school enrollment was flattening nationally when students arrived for classes last fall, with enrollment up 0.2 percent according to statistics tracked by the National Association of Independent Schools, eliminating the impact of schools joining the NAIS survey for the first time.
Among those students, 19 percent were on financial aid, up from 18 percent in the 2007-2008 academic year, and aid awards had swelled by $900 on average to nearly $12,900.
Still, tuition also rose, by more than $2,000 on average for high-school students to $39,300. At the same time, the average per-student endowment at schools dropped by $2,500 to under $40,000, putting additional pressure on school budgets.
