Highest Endowment, Lowest Tuition
Chief Financial Officer David Hanson reported to the faculty last week on the Academy's overall financial status, including information regarding the endowment market value, major capital projects, revenue sources, tuition and financial aid spending.
Principal MacFarlane asked Hanson to present the report because of the importance for all employees to understand and participate in school operations. Faculty are updated on the financial status one or two times per year. Hanson said that the feedback from the event has been positive and that he has been thanked for sharing the information.
According to MacFarlane, the Academy has raised all of the money needed for the music building, and donors have also contributed funds essential to building the fieldhouse and the new center for theater and dance.
Additionally, Hanson stated that Exeter’s tuition is the lowest among a group of peer schools, which includes 8-10 Northeastern independent prep schools, while the Academy’s endowment is the highest. Notably, Exeter’s $46,905 yearly boarding tuition is almost $9000 less than Groton’s $55,700 boarding tuition.
“We’re very proud of that because we want Exeter to remain within reach of every family and every student.”
Exeter relies on a strong network of alumni, parents, donors and trustees who contribute to the endowment and Annual Fund, both of which help to hold down tuition for current students.
History instructor Giorgio Secondi said that because of the size of the school’s endowment, Exeter is less reliant on tuition revenue to pay for current expenditures and that funds drawn from the endowment can finance a larger share of our budget.
Hanson also credited the school’s low tuition to the strongly-effective organization of funds by the Finance department. “We engage in appropriate management of expenses to ensure that we spend our funds efficiently and for the purpose of our mission, [which is] to educate outstanding students,” he said.
In addition to the total tuition being lower than that of other schools in Exeter’s realm, MacFarlane said Exeter is able to offer more financial aid than almost any other school. Hanson said that in regards to financial aid, Exeter budgets approximately $20 million annually for financial aid needs, most of which comes from restricted funds in the endowment. Director of Financial Aid John Hutchins said that because the financial aid budget is almost entirely endowed, it has increased proportionately relative to the Academy’s endowment.
According to a report from the 2014-2015 school year, 46 percent of students receive some amount of aid. Since 2007, Exeter has pledged to provide a free education to all admitted students whose families earn less than $75,000.
MacFarlane said that the determination to lower tuition and provide financial aid is critical in bringing the vision of Exeter to life. “Exeter’s mission has always been to enroll youth from every quarter, and we continue to be committed to attracting and enrolling students regardless of their families’ financial means,” she said. “We’re very proud of that because we want Exeter to remain within reach of every family and every student.”
Students and faculty see financial aid as a force bringing socio-economic diversification to the Exeter community. It lets Exeter focus on selecting a class of academically talented individuals rather than individuals who pay the tuition fee.
Upper Abhijay Bhatnagar said that financial aid breaks the “cultural homogeneity” that prep schools can often be guilty of, and that aid helped Exeter evolve from a school limited to upper-class white men into the place it is today. “The difference that financial aid makes is the difference between Exeter now and Exeter 100 years ago,” he said.
Senior Peter Duff said that this wider range that financial aid allows gives students a larger depth of perspective because of the greater “intermingling of ideas.”
Because of the support of the extended Exeter community, the Academy is currently in a sound financial standing. The size of the endowment has given the school a freedom to focus its efforts on creating a diverse community and on enhancing the experience of the Exeter student.
With Hanson, “there are never any surprises,” MacFarlane said. “The Academy is in an excellent financial shape.”