This 2024-2025 season, the Mission Enrollment team has reviewed over 15,000 financial aid applications for schools participating in our outsourced Folder Review Program. While the work isn’t quite finished, we’re excited to share some key trends that have stood out during this busy review period.
Our work spans a diverse range of PK-12 private and independent schools, including day and boarding schools, faith-based and secular institutions, and coeducational as well as single-gender environments. Each year, new patterns emerge from the family applications we process, offering valuable insights for the schools we support. Here are the top trends shaping this season:
While we’re not quite at the finish line, we’d like to offer a highlight of this season’s noteworthy trends.
Financial Trends
Income Increased.
High jumps in W-2 wages. Families are getting back to work and making more money.
Yes, some are still working multiple jobs; however, we are seeing income increases in the 30-100K range.
Investments Up. Bank Accounts Down.
Trying to rebuild their net worth with growing investments, many in the millions.
Playing the market rather than a low-interest rate in the bank.
Higher Child Care Costs.
More parents back to work, driving up childcare, after-school care, and summer care expenses.
Parent Education Debt.
Student loan payments have resumed. Funds once allocated for K-12 tuition are now redirected towards loan repayment.
Unemployment Decreased.
Although there will always be a push and pull between job loss and job gain, tax returns indicate a decline in Unemployment Insurance Benefits (UIB).
Draws on IRA, Pension & Retirement.
Pandemic-induced difficulties, living with reduced income, building up credit card debt, and trying to buy a home in the current market, families are pulling from retirement early and taking the hit on taxes.
Increased Credit Card Debt.
Parent narratives explaining the use of credit cards to fill monthly financial gaps for basic necessities like groceries as costs have skyrocketed.
Household Trends
Eldercare Costs. Multi-Gen Households.
Financial support and covering caregiving expenses for grandparents and other relatives.
Jump in multi-generational families living in the same home.
Parent Loss, Illness or Injury.
A growing number of family applications with a recent loss of a parent or a parent with a critical illness or injury necessitating leave from work.
Impacts on household income, high medical expenses, Disability and Social Security benefits, and life insurance payouts.
Older Kids Living at Home.
With rising housing costs, college-age and recent college graduates do not have the financial resources to immediately live on their own.
Real Estate Trends
Higher Home Equity.
Equity is up for homeowners due to recent real estate market trends.
Home equity as an asset is impacting families’ ability to pay by increasing their net worth.
HELOCs are unaffordable, given high interest rates.
Slowed Home Sales.
Families are not selling their homes.
Higher mortgage payments due to interest rate hikes.
Parents who work as real estate agents or brokers report a significant decline in income during this uncertain housing market.
This season’s trends have sparked many discussions for our Mission Enrollment team and the schools we support. As a result, we are in the process of establishing new recommended K-12 financial aid best practices. More will be shared!
