camps & education | Day schools trying to put new face on financial aidby julie wiener, jta
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Tehiyah Day School had a problem.
Like many Jewish day schools throughout North America, Tehiyah, in El Cerrito, had plenty of students from lower-income families and a number from affluent ones. But it couldn’t seem to recruit and retain many middle-class students, even as it devoted increasing amounts to financial aid.
So James tried a new strategy: Instead of posting a single tuition price and urging those who couldn’t afford it to apply for a scholarship, the school would post a tuition range — from $7,950 to $22,450 for the 2014-15 academic year.
Known as indexed tuition, the plan permits parents to pay reduced tuition. To qualify for lower amounts, parents still must submit financial forms not entirely unlike what was required in the old aid application.
The change is more about presentation than substance. But James said something about the system feels different.
“It’s a door-opener for middle-income families,” she said. “They say, ‘if it’s based on what I can afford, let’s at least have a look at it.’ ”
In response to mounting concerns about the increasing affordability of Jewish education, day schools like Tehiyah are experimenting with new approaches to tuition and financial aid.
The K-8 Oakland Hebrew Day School has introduced a slightly different model, sometimes called “flex” or “sliding scale” tuition. It is based on how much a family is able to pay, rather than emphasizing how much the school will offer in financial aid.
It means the Modern Orthodox-oriented school will be able to open its doors to Jewish families that would otherwise have found a Jewish education for their children unaffordable. The normal full tuition per year at OHDS totals approximately $22,000.
“The flex tuition approach is a way for us to stay accessible to families with a wide range of economic backgrounds,” said OHDS head of school Rabbi Ari Leubitz. “We feel excellence in our school includes having a constituency of diverse practice and socioeconomic backgrounds. We wanted a situation under which all could pay what they are able to pay.”
Noting that many middle-class parents experience “sticker shock” when they add up the cost of a private school education, Leubitz said the new system is much simpler. “Our tuition number is one number, all in,” he said. “No other fees. It’s very streamlined.”
Once a tuition fee is set for the family, it remains the same throughout the student’s years at the school.
Other Jewish schools have moved to cap tuition as a percentage of family income.
The Solomon Schechter School of Greater Boston launched its iCap program in the 2012-13 term that guarantees a family will never be required to spend more than 15 percent of its household income on tuition. It means families with incomes as high as $400,000 — more than four times the median household income in Massa-chusetts — can still be eligible for financial aid if they have three or more children enrolled and have assets under a certain threshold.
As with Tehiyah’s indexed tuition, iCap isn’t actually costing the school any more money; most families would receive similar assistance had they applied for financial aid under the traditional system. But it does help with sticker shock, particularly for families who by national standards are far from poor but still struggle to cover the cost of a Jewish day school education.
“Most families in that high-end income bracket don’t even imagine they would qualify for a scholarship,” said Dan Perla, program officer for day school finance at the Avi Chai Foundation. The iCap program, he said, “makes it really easy and really transparent.”
Another Boston school, Maimonides, is introducing a version of the program next year. And the Avi Chai Foundation is helping two other day schools, Beit Rabban in Manhattan and the Robbins Hebrew Academy in Toronto, pilot similar efforts.
Some schools are developing elaborate and sometimes costly discounts designed not just to attract new families but to reduce attrition.
Hillel Day School in suburban Detroit is launching a “tuition subvention” program in 2014-15 that provides each student a tuition credit that increases by $1,000 each year they stay in the school, regardless of family income.
Milwaukee Day School tried a similar approach, offering tuition discounts that continue each year a student remains in the school. The strategy resulted in the enrollment of 55 new students last year — one of the largest increases ever seen by the school, according to Brian King, its head of school
But the incentive, which was a one-time offer available only to students enrolled at the school during the 2012-13 academic year, failed to arrest the school’s long-term decline in enrollment. The school currently has 190 students, down from last year’s 208.
One approach Perla and other experts generally discourage is across-the-board tuition cuts, which they say can be financially unsustainable and do not lead to long-term enrollment gains. A recent study of 200 schools conducted by Measuring Success, a consulting firm specializing in data analysis for nonprofits, found that contrary to conventional wisdom, raising tuition does not lead to decreased enrollment.
In addition, many point to the experience of several Cleveland-area Jewish day schools that collectively decreased tuition in the early 2000s without seeing an increase in enrollment or fundraising revenues in the years that followed.
Two of the schools eventually raised tuition and now are initiating more modest incentives, providing discounts for Jewish communal professionals and families that recruit other families.
Meanwhile, at Oakland Hebrew Day School, the parents of prospective students are already inquiring about the flex tuition.
“We are already seeing families calling for tours and information packets,” said Leubitz. “The hope is people will see that this is a phenomenal school that wants to have them in the school. Let’s engage in a conversation.”
J. staff writer Dan Pine contributed to this story.
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