Exeter Launches Major College-Style Grant Based Financial Aid Initiative
By Jesse Reisner ‘08
News Staff Reporter
This winter, Phillips Exeter Academy announced the launch of a campaign to provide financial aid for a greater portion of its students beginning this year and continuing into the next and to institute student grants in place of student loans.
Exeter is currently transferring funds into its financial aid budget, preparing to supply 40 percent of its students with financial support of some kind next year.
Students receiving financial aid at Exeter will not be obligated to repay student loans as part of their aid program. Instead, they will receive direct grants to fulfill the tuition requirement. This year’s average grant was about $25,000.
Mr. Paul Mahoney, Director of Financial Aid at Exeter, commented on the Academy’s new establishment. “We have been, up to this year, discriminating against kids who needed financial aid,” said Mahoney.
Like all preparatory schools, Exeter has always had to make decisions concerning the financial eligibility of a student. “Our policy is not to admit someone unless we provide them with the aid that we think is necessary or appropriate in their case. So, there were some times when we didn’t admit somebody not because they weren’t a strong candidate, but because we didn’t have the financial aid,” stated Mahoney.
The new financial aid plan affects the admissions office a great deal. “This made a significant impact on the admissions committee; they could take whomever they wanted, and we were able to fund all of their choices,” explained Mahoney.
Mr. Andy Noel, Director of Financial Aid at Choate, detailed Choate’s financial aid program. “Currently our loan program is such that we offer low-interest loans through the Independence Foundation to rising Juniors and Seniors who are on financial aid,” said Noel.
Exeter is clearly making a statement by providing forty percent of its student body with financial resources. Choate is unlikely to reach Exeter’s percentage any time soon. “This year we’re at 27 percent, and we’re among the lowest of the schools we compare ourselves with, admissions wise,” said Noel. “However, we have good confidence that we’re going to increase that percentage for the coming year to 29, potentially 30.”
There is a rising trend in financial aid at many universities. Schools such as Harvard are taking the steps to acquire the brightest and most intellectually distinguished students in the world, regardless of their financial profiles.
Exeter’s new policy will sffect Choate through the competition between all New England prep schools. “Interestingly, Exeter’s decision may have an impact on us, such that kids that are applying to Choate and Exeter and who qualify for financial aid, and who are juniors and seniors, may see a difference in a financial aid grant at Exeter versus a loan at Choate,” stated Noel.
Exeter’s objectives are understandable, but they will come at a high cost. “I think something that Exeter hopes to gain is yield on these kids. Often, kids in all of our pools of admission are incredible. I know that Exeter’s move to do this is going to help families afford this education. It’s also going to help the school attract really incredible kids whose families qualify for financial aid,” stated Mr. Noel.
Two years ago, Choate’s Financial Aid Committee made a decision to offer loans at a low-interest rate to juniors and seniors in order to spread the financial aid budget out to more families who qualify for aid. Further, there’s a principle that states that when a Choate student on financial aid reaches working age, he or she should make some financial pledge to help finance tuition and board costs. “The committee decided to offer a loan in the student’s name that he or she could certainly pay back sooner, if he or she chose to do so,” explained Noel.
This loan of $2000 for juniors and $2500 for seniors carries a very low interest rate; payments begin four years after graduation from Choate. Given in the student’s name, the loan allows each student to control his or her own financial situation and work off the money given.
Exeter’s decision to replace student loans with grants can only contribute to the acceptance of more qualified applicants, in spite of their financial conditions.
