Private schools have long been a popular choice for parents seeking a more personalized and academically rigorous education for their children. Private schools offer tremendous benefits compared to public schools such as more intimate classroom settings, a more tolerant and supportive environment, an immersive learning experience, different classroom offerings, and more. However, in recent years, private schools have faced a variety of trends and challenges that have impacted enrollment and admissions.
1.) Increasing Competition
Perhaps the most significant challenge facing private schools today is increasing competition. With the rise of charter schools, magnet schools, and online learning options, private schools are facing more competition than ever before. To stay competitive, private schools must offer unique programs and experiences that cannot be found elsewhere. They need to differentiate themselves and be able to show their value proposition to families to effectively attract students.
2.) Rising Costs
Another challenge facing private schools is rising costs. Private schools must provide high-quality facilities, technology, and instruction to attract and retain students, but these costs can quickly add up. To offset rising costs, some private schools are turning to fundraising, grants, and partnerships with local businesses and organizations. Building endowments to provide on-going scholarships, teacher development, and capital expansion are all ways that private schools can offset the impact of rising costs.
3.) The Economic Downturn
As a bookend to rising costs, the downturn in the economy, and significant drop in stock values have decreased families’ discretionary income and endowment levels maintained by private schools, often reducing the level of scholarships that can be provided at a time when families need them the most. Schools need to evaluate their needs today, verse the ability to replenish reserve levels once the economy turns around.
4.) Changing Demographics
Private schools are also facing changing demographics that are impacting enrollment and admissions. For example, the number of school-aged children in the United States is declining, which means that there are fewer potential students for private schools to attract. In addition, the demographics of the student population are changing, with more students coming from diverse cultural and socioeconomic backgrounds.
5.) Emphasis on Diversity, Equity, and Inclusion
As the demographics of private school students change, there is a growing emphasis on diversity, equity, and inclusion. Private schools must ensure that their student populations reflect the diversity of their communities and that all students feel valued and included. This requires intentional efforts to recruit and retain diverse students, as well as a commitment to creating an inclusive and welcoming environment.
6.) Impact of COVID-19
Finally, the COVID-19 pandemic has had a significant impact on private school enrollment and admissions, especially in the New York metropolitan area and other urban centers. During COVID-19 many families, in an effort to reduce exposure, moved out of densely populated cities. What’s more, work forces continue to transition to remote, allowing employees to work from anywhere. As a result, urban centers like NY City saw a loss of families and as such a loss of student base due to the pandemic.
In conclusion, private schools are facing a variety of trends and challenges that are impacting enrollment and admissions. To succeed in this competitive landscape, private schools need to find ways to differentiate themselves. This can come through unique course offerings, immersive classroom experiences, greater college prep and linkages, shared experiences with other schools across the country or around the world, or whatever other differentiating factors schools can develop.
Adam Brigandi, CPA, MBA
Supervisor
Adam is a Supervisor who works with both nonprofit and education clients. His auditing experience allows him to assist in vital audit functions such as systems testing and analysis.