Alex Rice ‘13
The present economic recession in the United States has impacted every American, but none have felt the recession’s sting more than the lower and middle classes. Last year, the Congressional Research Service defined the middle class as having an income between “$19,000 a year and $91,000 a year.” Under this definition, the middle class comprises the majority of American households in the U.S. According to CNN, “Incomes for 90% of Americans have been stuck in neutral, and it’s not just because of the recession. Middle-class incomes have been stagnant for at least a generation.” Outsourcing and the decline of labor unions are just two of many additional reasons for this trend. The housing crisis has further hurt the middle class by wiping out many Americans’ savings. In addition, job availability since 2008 has fallen. According to the U.S. Bureau of Labor Statistics, the unemployment rate peaked at 10 percent in 2008 and has since slowly declined to a still stark 8.5 percent. The vast majority of those to lose jobs have been members of the middle class – further burdening their financial situation.
Episcopal Academy, although located in one of the wealthiest areas of the country, has not been sheltered from the consequences of these trends. The Episcopal Academy tuition for high school is over $28,000 annually. Although private school tuition is an expense many families are unable or unwilling to pay, Episcopal has dedicated itself to sustaining economic diversity as well as other forms of diversity on campus. Episcopal believes that diversity both enriches the learning experience for all students and offers greater opportunities for education and success than might be readily available to some people. For this reason, the Episcopal Academy has been making every effort to offer financial aid to families of applicants who, though able to get in to Episcopal, might not be able to afford it. Unfortunately, when many people are researching Episcopal Academy for application, they become “sticker shocked” by the high price of tuition. This shock often drives away prospective applicants, but EA’s expectation is not for everyone to pay full tuition, but rather for families to pay what they can afford. The external contractor School and Student Services (SSS) used by all private schools in the United States assesses what a family is able to pay and notifies Episcopal of this number. For example, if SSS assessed that a family could pay $10,000, Episcopal would attempt to cover the remaining $18,000. Bradley Cates, CFO of Episcopal, said, “If there are sufficient funds in the Financial Aid budget, EA will fund the student to attend.”
Unfortunately, the funds are not always available and some students must be turned away or wait-listed until the funds become available. The financial aid budget comprises 13 percent of Episcopal’s total budget, around $5 million. Justin Brandon, VI Form Dean, explained that Episcopal is officially “need blind.” This means that the entire financial aid process occurs after the admissions process. This dissuades admissions officials from taking financial need into consideration when determining if a student is worthy of admission to Episcopal.
According to a resent presentation by Cates at a town hall meeting hosted by the school, Episcopal’s Financial Aid Philosophy states, “The Episcopal Academy’s need based financial aid program enables students to attend the Academy regardless of a family’s ability to pay full tuition.”
Perhaps the most important phrase in this statement is “need based.” Financial aid is based on need, not merit. Regardless of intelligence, if a family does not need financial aid, they will not receive it. Aside from SSS’s assessment, part of Episcopal’s official Financial Aid Policy, presented by Cates at the same town hall meeting reads, “…a family must look to all available resources…before and in addition to requesting financial aid from the school. [Also]…certain lifestyle choices must be examined when a family applies for financial aid.”
Another important factor of financial aid is diversity. Much like highly selective colleges “craft” classes that better the school, “EA tries to diversify its student body in the belief that diversity creates better learning opportunities for every student,” said Cates.
“Diversity” encompasses race and gender, but also socioeconomic status. Cates further explained, “The goal is to create a balanced school with input from the broadest possible spectrum of people – going beyond finding the best and brightest in an attempt to create the best learning situations possible.”
About 20% of families that attend Episcopal receive financial aid of some amount. The current recession explains a relatively new trend: middle class families that at one point could or would have been able to afford the tuition now may not be able to due to the economy. Rachel Tilney, Head of Admissions, said, “Families have become very careful about how they spend their money. Admissions at Episcopal have not been affected as much as at our peer schools, but I think we see fewer people than we did in the past. There are also families that in a better economy wouldn’t have applied for aid that are now because of economic factors.”
Mr. Brandon corroborated this point, stating, “Giving financial aid has become a bigger factor at EA because of the rough economic times.”
Recent school closings in our area further illustrate the need for the increase in financial aid given to families at Episcopal. The Archdiocese of Philadelphia recently announced that it will be closing four of its high schools and 44 of its elementary schools. Schools Episcopal competes against in sports and other activities such as Monsignor Bonner and Archbishop Prendergast were recently informed that their schools will be shut down at the end of this year. Although these schools are part of the Catholic school system, which is run differently than Episcopal, a private independent school, reasons for these closures are familiar. According to NBC 10 Philadelphia, “The schools have suffered for years from rising costs and dwindling enrollment. Higher tuition, shifting demographics and the rise of charter schools have siphoned off many students.”
Episcopal recognizes these economic trends and is making every effort to provide aid to those who need it. Junior Patrick McCarthy remarked, “EA is an institution that searches for the best students possible. Unfortunately, the economy has made EA inaccessible to some families – namely the middle class. For this reason, economic aid is necessary to maintain EA as a diverse and superior institution.”
One student who wishes to remain anonymous said, “I think that EA should focus on what’s best for the school economically, not always on what socioeconomic diversity they can create.”
Junior David Burke said, “EA should give aid to the families who need it and the students who deserve it.”