Los Angeles-area private schools feel the pinch

At the private New Roads School in Santa Monica, 20 families decided not to re-enroll in the fall because of financial nervousness.

At Loyola High School near downtown, 40 families have come forward since the beginning of the school year seeking financial aid to help cover tuition costs, even as the school's endowment -- heavily invested in equities -- has taken a battering in the financial market.

Pacific Hills School in West Hollywood is creating flexible payment schedules for some families and is tightening its own belt with an eye toward more tough times ahead.

The economic meltdown that has ravaged many banks and homeowners is also affecting private schools in Los Angeles and nationwide, forcing educators to revise budgets, plan extra fundraising appeals and brace for possible lower enrollments next year. The distress comes at a time when some independent schools already have seen potential students gravitate to public charter schools, which are free and offer some of the same advantages of private campuses.

In previous downturns, private schools have tended to fare well, with minimal drag on enrollment or tuition trends. Some affluent families are recession-proof, and many others will sacrifice in other areas to avoid disrupting their children's schooling.

A sampling of 59 Los Angeles area independent schools found a slight increase in enrollment in 2008 over the previous year: 29,024 from 28,944, according to the National Assn. of Independent Schools. But much of this year's enrollment picture was determined last winter and spring, and it may be that schools have yet to feel the full brunt of the economic downturn.

Educators at private schools say the severity of economic forces this time have put them in uncharted territory.

"People are more worried about their financial future and carefully looking at expenditures," said Patrick Bassett, executive director of the independent schools group. "So far, we're seeing a lot of activity in admissions fairs, but schools are very conscious of the need to be receptive to parental concerns about financing."

That is evident at Loyola, the venerable, 143-year-old all-boys Catholic prep school, where the number of families on financial aid climbed from 18% to 22% this year. But officials were surprised when, after classes began this fall, 40 additional families sought help to pay the school's $12,500 annual tuition. It is expected that even more families will seek extra support throughout the school year, said John Baker, vice president for advancement.