INDEPENDENT SCHOOLS BOOST FINANCIAL AID TO STUDENTS, BOLSTER FUND RAISING
North Shore Country Day School, the new Upper School.
Private schools have learned a few lessons from the economic slowdown. They've tightened operations and slowed tuition increases. Some have stepped up fundraising efforts, and several are expanding despite the weak economy. At the same time, they're offering more financial aid than ever before.
"Private school is a real financial commitment," says parent Kitty Burns, a real estate agent in Hinsdale. Her son and daughter attend Saint Ignatius College Prep, a Catholic high school in Chicago. Despite the economic slowdown, private school enrollments overall have not been seriously impacted. Enrollments dipped only about 1% nationwide at the height of the downturn, according the National Association of Independent Schools. The group also says that few schools have gone out of business because of the hard times.
Locally, Fox River Country Day School in Elgin closed last year. The school got caught in a squeeze when enrollment dropped while the school was still trying to pay off the debt used to finance the construction of a new grade school on the campus. But enrollments at high-profile private or independent schools in Chicago have been steady, and the competition for admission is as intense as ever. Institutions such as the Latin School of Chicago, Francis W. Parker School, and the University of Chicago Laboratory Schools still have their pick of qualified students. "The competition for nursery school spots is crazy," says Keith Shahan, president of the Independent Schools Association of the Central States.
Private schools in the suburbs, which often compete for students with good public schools, aren't oversubscribed like the popular private city schools. Applications at some suburban private schools have declined because of the weak economy, administrators say, though many of the schools have managed to hit their enrollment targets.
"Our enrollment has grown slightly," says Tom Doar, head of school, North Shore Country Day School in Winnetka. The school has 500 students from junior kindergarten through grade 12. Enrollment is up 10% in the last 10 years. But, Mr. Doar admits, "Times have changed."
SCHOLARSHIPS AVAILABLE
The biggest change is in the number of families seeking financial aid, administrators say. About 20% of families with students at North Shore Country Day get some financial aid, a number on the rise. With tuition of $25,800 for grades 10 to 12, the school allocates about $1.4 million annually to financial aid.
Private schools in the city have also increased their financial aid to families. The Chicago Waldorf School on the city's North Side has a scholarship program. "A lot of people can't afford the tuition and
North Shore Country Day School, inside the new Upper School.
the economy hasn't helped," says Clay Henley, a portfolio manager at JP Morgan, who served on the school's finance committee for 12 years. Mr. Henley's son started at the school at age 3 and recently graduated from high school.
Several years ago, when the downturn hit, the Latin School created a fund to help families who already had students enrolled there. The school gives out $3 million in needs-based financial aid every year.
About 11% of the families with children at the University of Chicago Laboratory Schools receive some financial aid. Tuition at the high school is $26,520 a year. "Our parents have been impacted by the downturn," says Dave Magill, school director. "We've done the best we can to help."
At some private schools, a sizable percentage of families get help. At Saint Patrick High School in Chicago, enrollment has dropped about 20% over the last five years due to the recession. Saint Patrick targets middle-income families, and about half of the students get some financial aid, according to Joe Schmidt, school principal. The average award to a family is $3,000; tuition is $9,400. Last year, the school raised $2 million to help cover tuition assistance and other expenses.
Students in class at Roycemore School.
Despite the economic pinch, private schools are holding tuition hikes in check. Annual increases have been about 2% to 3%, administrators say. Raises for teachers are less common, and operating expenses have been tightened. "We visit and revisit every expense line on the budget," says Rabbi Leonard Matanky, dean and head of school at the Ida Crown Jewish Academy, a high school on Chicago's North Side. Scholarships last year totaled $1.5 million and were awarded to about 55% of the students.
Rendering of new, in-progress school for the Lycée on Wilson Avenue.
FUNDRAISING PUSH
Many schools have ramped up fundraising efforts in order to fill the budget gaps. Capital campaigns are under way at a number of private schools. Somewhat surprisingly, given the lackluster economy, some schools are expanding.
Roycemore School in Evanston moved to a new building last January to accommodate more students. In a $17 million project, the school bought and renovated an older building in the downtown area, and the rehabbed structure includes a new gym. The new campus is about double the size of the old one, says Brian Arbetter, a partner at the Chicago law firm of Baker & McKenzie, whose daughter is a senior at the school. Mr. Arbetter is also on the school's board of trustees. "This was a big project for many years," he says.
The Lycée Français de Chicago plans to move to a new building in fall 2015. The school purchased a four-acre site in the Lincoln Square neighborhood formerly occupied by Ravenswood Hospital. The school currently has about 620 students, but it will be able to accommodate as many as 665 students on its new campus. The new facility will cost about $33 million.
Other expansions are under way. The University of Chicago Laboratory Schools will open a new early childhood campus in 2013. "We plan to add 300 students across all the grades over the next five to six years," says Mr. Magill, the school's director.
Parent Jane McCarthy chaired a $30 million capital campaign at North Shore Country Day School to renovate the high school, a project that was finished last fall. The campaign was first announced just a few weeks before the economy crashed, and although the fundraising push took longer than anticipated, it raised more money than expected. Not only was the school able to fund the new high school, but donors also contributed $10 million to the school's endowment, which took a hit in the market crash. "It's a real sign of the school's health," says Ms. McCarthy.
— Jane Adler
