Ask Orthonomics: Stay Out of Debt

I received this "Dear Orthonomics" comment from my previous post regarding K-12 loans to which I would like to apply: Do not do this under any circumstances.

I should add that I spotted this article in a frum publication and it was rewritten slightly, nearly hailing the arrival of the K-12 loan. Boo!

Dear Orthonomics,

Can k-12 student loans be discharged in a bankruptcy? I know that you usually can't do this with college loans. I send my kids to a Jewish community day school and was advised by a friend that I could take out one of these loans and have it taken care of via Chapter 11 or 13 if I run into trouble. I have also thought about taking out a loan against my house and my wife's 401K. We had a lot of expenses this year due to my son's bar mitzvah and my wife had her hours cut at work. We would welcome any suggestions.

Dear Reader,

My advice: don't. Secondly, stop listening to well meaning, but sorely mistaken friends. While I don't know if private K-12 loans can be discharged, bankruptcy is never a plan. Besides the complete lack of yashrut and the evil of borrowing with no viable plan to repay, a bad credit rating is a sure way to make sure that underemployment turns to a permanent scar on employ-ability. Credit rating is becoming increasingly important in the hiring process. If you need a security clearance, you will be in hot water. As I understand it, while bankrutcy isn't an automatic black mark and the circumstances can be evaluated, I can't imagine making a bar mitvah will be deemed as anything but irresponsible. While I have no idea what you or your wife do, I do know that a clean credit report is to your benefit. I also know that when you aren't chasing your tail out of desperation, that your mind is clear to dealing with financial blows.

Regarding borrowing from a 401k, once again, don't! Borrowing from a 401k is a particularily poor way of borrowing to provide what you don't have the cash t oprovide. There is a 10% penalty on early withdrawal. Then each dollar is subject to the highest marginal rate at the state and federal levels. And, if you phase out of available tax credits, which is quite likely, you will take another tax hit. Before you know it, the $30,000 became $20,000 and if you didn't pay up enough taxes, you can end up with a non-dischargeable debt to the IRS and your state's tax authorities. Not smart.

So what do you need to do. Draw up a budget that takes into consideration the new reality on the ground. The spending must be matched to income from current sources and anything that doesn't fit into the budget has to head to the chopping block. No 401k loans, no HELOC loans, no K-12 loans. Certainly not "creative", but sound advice nonetheless.

[Update: I apologize for not reading more carefully. I get asked all the time about early w/draw on a 401k. Regarding borrowing, my answer is the same even if there are advantages to this type of loan, as there are advantages to borrowing against a home for school instead of taking about a K-12 loan. This isn't about the fancy math, but about now living above your means and if you have to take from savings, that is a signal you are above your means. If you don't have liquid savings to take from, and must turn to retirement savings, kal v'chomer. I know it is painful to have to forgo on something expected, but we can't bankrupt ourselves in the name of a bar mitzvah, wedding, or even day school tuition].

Sincerely,

Orthonomics

Smart Money Mag: Student Loans for K-12

It isn't new news that Orthodox parents have been financing private K-12 education (usually via home equity lines of credit), but this Smart Money article, sent to me by another wonderful reader, outlines the newest loan industry, K-12 loans.

Personally, I'm just not that committed to private schooling to take out pre-college loans. I'm not convinced that college loans are an "investment" worth making in many cases. It goes without saying that I'm not going to favor student loans for the K-12 set.

The article states that most of the demand is coming from high-income parents (i.e. $150,000).

Much of this demand is coming from high-income families. Roughly 20% of families that applied for aid to pay for their children's kindergarten through 12th grade private school education had incomes of $150,000 or more, according to 2010-11 data, the latest from the National Association of Independent Schools. That's up from just 6% in 2002-03. Those who don't get approved for free aid, like grants, increasingly turn to loans, experts say.

This does not surprise me a bit. Being that it is tax season, I'm once again reminded that when you hit the $110,000 mark, some valuable credits like the child tax credit start being reduced and by $150,000 (!), these credits are other valuable losses that can reduce taxable income are long gone or limited in their entirety.

At $150,000 there is a large tax burden, a full tuition bill, and not a chance at aid, grants, scholarships. So, to loans such parents turn.

Besides the risk that loans entail, the entire idea of taking a K-12 loan in order to increase the chances of getting into a better college is upside down. What happens if the parents can't take on anymore debt? The kids will end up with less college opportunity.

Something interesting which I've pointed out on my blog before, paying private school tuition over 10 months, which is default in Orthodox Jewish schools, is NOT standard in private schools. Some schools, as you can see below, claim a 10 month plan is a "financing" plan and they charge a hefty sum of money to help you finance over 10 months. We'd run into ribbit issues, but it is still good to remember that paying over 10 months is a gift of sorts.

Schools are offering their own financing options as well. The Blake School in Hopkins, Minn. says 132 of its families signed up for its 10-month payment plan this year -- which charges an 8.5% fixed rate -- and that's up 19% from the previous academic year. The Hawken School says it provides a small number of loans with a 6% rate. "These loans aren't as taboo as they once were -- there are a lot more schools that are much more willing now to present a loan program as an affordability option," says Kristen Power, northeast regional director for the NAIS' School and Student Services, which processes families' financial aid applications to private schools.

Student Loans for K-12 in book equal a lot of risk and little benefit. . . . . .you can't even deduct the interest repayments to reduce your taxes, making the other financing "solution" of a HELOC look like a smart idea, although none of the above is smart in my book.

Cash, Cash Equivalent: Is it really ever appropriate?

Every Chanuakah imamother has threads about "Chanukah Gelt" or gifts given directly from parents to teachers, morot, rebbes, and I promise I'm going to write about it. And then I don't. Next rolls along the next giving season, Pesach, and once again I never get around to the subject.

Well, I was surprised to see the cash gift thread arrive a bit prematurely in regards to Purim and I figured, hey, this doesn't need to be a lengthy post, but it is deserving of a discussion. So in the spirit of not procrastinating (or, perhaps in the spirit of procrastination), I'm going to ask my readership not whether cash or a cash equivalents is the better gift for teachers but to ask:

Is is ever appropriate for parents to give cash gifts directly to teachers who are not your own employees/contractors, but employees of the school that you contract with?

Personally, while I respect the institution of "Chanukah Gelt" (instituted when parents paid the Rebbe directly), "Pesach money," and "I'd like to help out the teacher who probably isn't getting paid much," I don't think it is appropriate to give anything more than a de minimus gift (excuse my tax terminology, 'tis the season). And I'm not really sure what the definition of de minimis is, but from what I understand from friends of mine (who live in a community where the custom is common and who appreciate this custom), certain parents will give well into the 100's, sometimes into the 1000's in gelt.

I have a hard time seeing the custom in its current manifestation as a positive. I believe in paying an appropriate market rate, on time, every time. I pitch in for the class gift, although there are years where I'm tempted to pinch my pennies. But, I see this type of giving as an ethical pitfall. (I will ignore any possible financial pitfalls here).

I do believe some (public) school districts issue guidelines on what type of gifts, if any, may be given. I believe one nearby school district prohibits cash and cash equivalents. If the district sees a personal gift as interfering with proper relationships between the school, parents, and teachers, how much more so in a financially private school market where "cash is king"? I don't want to put out accusations, but many do believe that certain behaviors are ignored because of a parent's stature, do we want our teachers to have to function in an environment where they feel their hands are tied more than they already are? Giving tips in a profession where it isn't normative can be interpreted as bribery of sorts. And, there is the issue of insensitivity to those with less when a gift becomes expected.

So, readers, is cash (or cash equivalents) beyond a "de minimis" amount (which would be hard enough to define) ever appropriate?

Mesila Lectures Available Online

With thanks to a few readers, I was made aware that the recent Mesila event, all 85 minutes of it, can be viewed in its entirety at Baltimore Jewish Life. I was able to listen to the speeches while processing some paperwork and I especially liked the message of the first speaker, Rabbi Hopfer:

“There is a way to live as an ehrliche yid,” said the Rav,”and it has to do with building strength of character and living within our means….You are not permitted to take money from someone without knowing if you have a normal, natural way to pay back. If you do not know how in the world you are going to pay it back, it’s gezeila [stealing]….When husbands and wives talk to each other about how they are going to live, there has to be an understanding between them to try to live a principled life. You don’t buy something without being able to pay for it, if it is going to put you into debt. You can’t do something that you can’t afford.”

Rabbi Hopfer continued to speak about raising children to be principled: “When children grow up and know they just can’t have what they want, although others can afford it, it builds character--the bedrock of what family is all about; a house built on principles. A happy home doesn’t mean you just give them everything that they want. A husband and wife have to discuss where their priorities are, and they might change from month to month. If you spend money on something one month, you might have to cut back on spending on other things that month…It’s criminal for us to go into debt if we can’t afford it; it is a source of tremendous pressure and tension between husband and wife…There has to be gevurah, a strength of character, honesty and principle. When a child grows up learning that Mommy and Daddy live like that, with principle and character, that is a healthy family.”

I was particularly intrigued by something that Rabbi said, something that I've noted (i.e., helping isn't always helpful), which is summarized at Baltimore Jewish Life:

The Rav also discussed that it is a Jewish concept not to take money from other people. “There’s a time when you are permitted to take money from other people, but know that it is a b’dieved, especially from a tzedaka. We have become too accustomed because of our tzedaka organizations, or maybe because of our government programs, to being takers, instead of givers; it is not the yiddishe way, if we don’t have to…It’s a noble thing to do, to try to live within our means and not have to come on to someone else. When children grow up seeing their parents having this attitude, they will grow up having the strength of character and withstand the temptations of what their friends have. They won’t feel deprived.”

There is one trap that I think we have to stay away which is the belief that we are so different from other Americans. Mentioned in the introductory remarks is a popular "financial guru" with a radio show listened to daily by 3 million Americans (referenced at the 2 minute mark) who believes that any family can live on less than $40,000 a year if necessary. The comment was "that number for a frum family is laughable!" Similar sentiments abound such as this one at a relatively new blog, The Partial View, where he compares the average price of a Thanksgiving meal: $49.20 for a family of 10 to Shabbos writing:,

As frum Yidden with kosher food prices plus large mishpachos $ 49.20 wouldn't cover the basic Shabbos meal for even 3 people. This just brings out the point when looking at average expenses and challenges we face as Yidden, comparing our expenses with the national average just does not factor in.

Yes, we do face certain higher costs, but I too can absolutely live on less than 40K if it absolutely necessary (note to my husband: don't quit your job or anything like that because I don't want to live in a crunch:). But I've reviewed my budget and excluding tuition and some much appreciated extras, I think it is doable. And, I happen to serve tasty, healthy food, week in and week out, on a "food stamp" budget--and my food stamp budget includes diapers and cleaning supplies too.

I find it empowering to know that we can live on less and I personally view our more expensive life through a more positive lens when I can view our spending patterns--some of which are related to being part of an Orthodox community, as choices, not as a ball and chain.

Overall, I thought the message of the speakers was a breath of fresh air and I hope that the message of self-control and principal continues to spread.

The Rest of the Homeschooling Responses

Hate to start asubject line and never finish it up, so below are the other Yated Chinuch Roundtable responses. The most revealing, often insensitive and jaw-dropping responses (e.g. "I can't ever see a reason to homeschool a child") are in my first post: An Epidemic? Do I Detect Some Fear?

Below are the rest of the responses with some comments in [brackets].

Menahel, The Toronto Cheder

The decision to home-school your daughter is a huge, possibly life-changing decision. [As is choosing a school in many cases]. Often, searching parents end up soliciting information from other home-schooling parents, but they may not receive an impartial view from the home-schooling parents, who tend to defend their choices instead of giving accurate pros and cons to home-schooling. [Funny, because in this entire series of responses there hasn't been much reflection --except an insinuation that the parents might want to avoid tuition--as to why homeschooling is a word that is rolling off tongues of yeshiva parents. Might there be some real issues in yeshiva schools that parents are responding too? Social issues? Emotional issues? Family issues? Learning issues? Academic issues? Hashkafic issues? Pedagogic issues? As for homeschooling parents, I've spoken with the Jewish and non-Jewish homeschoolers and the responses regarding their reasons to homeschool and the planned duration are very diverse, ranging from "some time off" to tackle an issue to "we're going for the finish line"]. If you decide to go ahead with the home-schooling and you feel that your daughter is succeeding, it is most likely that you will continue this throughout her elementary years. You shouldn't only consider her situation at this juncture of her young life. It's important to look ahead at the big picture of her life now. [See above. There are no set rules].

There are serveral enticing reasons to home-school a child:
safety
no bullying issues
curriculum is tailor-made according to the child's strengths and challenges
anxiety and stress of homework are non-factors
child's self-esteem remains intact throughout
emotional bond between parent and child is greatly reinforced
can generate stability if a family is going through a transition or ordeal
children are generally well-rested
the obvious fact that a home-schooled child can accomplish more in one day than their peers do in a week at school

[Ahhhhhhh, some reasons, from emotional to academic].

There are also compelling reasons not to home-school a child:

they miss out on all the "extra" and memories that schools provide, including outings with a teacher, extracurricular activities, and healthy competition. Most adults don't remember the actual Gemara or Chumash that they were taught, but they do remember the way it was taught or the time that a rebbi or morah went out of their way for them. [Once again the argument that yeshiva schooling isn't really for the academics. For me, that is what school should be about: laying an academic foundation. And the rest can be supplemented outside the classroom.]

the parents may fancy themselves as great teachers, but in reality they're not. This will impede the child's progress [There are no less than adequate teachers that might be going the same, hence an interest in homeschooling?]

the lack of socialization learning to get along with peers, and understanding a teacher's social cues. Being in school also teaches a child how to succeed even when others are creating adversity, as well as how to interact, discuss and disagree with peers. [Sorry, but I'm stepping onto a soap box. . . I happen to think well facilitated discussion groups are an advantage of school, although that too could be taken into a different venue, but as the person who had to pick up the slack in nearly every, single group that I was assigned to from late elementary school through high school, I don't believe that all of the group work that many teachers love and is so fashionable is at all healthy, Rather than teaching "succeeding even when others are creating adversity." my experience is that the majority of kids learn that they can push off their responsibilities onto others, without penalty, because someone will do the work. Personally I think a lot more character development happens on the sporting field/gym than in the classroom because no one can hit the ball for you, run your leg of the 4*100, or, moving over to another venue, play your trumpet solo or recite your lines in the musical]. In addition, some children will exceed expectations that parents and teachers have of them due to healthy peer pressure. [What of negative peer pressure?]

loss of emotional support other than parents. Many adults credit a particular rebbi or morah with changing their lives. Often, a child needs to have a mentor or confidant other that their parents. Rabbeim/moros can open up topics in ruchniyus or topics within topics, that appeal to the child, which maybe the parent hasn't even heard about [many homeschoolers go work with tutors and Rebbis. And, and issue many schooling parents express is the lack of time (and money) to seek out opportunities that would help their children grow).

Chazal say in Pirkei Avos: "Kol sheruach chachomim nocheh heimenu ruach habriyos nocheh heimenu." Since Yehoshue ben Gamla's time, chadorim have been set up for talmidim. Adults who are most matzliach in life are the ones who are me'urov im habriyos.

A friend related that in his elementary school years, there was an illui in his class who was two years younger than the rest of his classmates. While this boy excelled in learning, he never learned how to communicate properly and it unfortunately affected him as an adult and as a husband and father. [Uh, marriages and parents have issues! Nonsensical argument, besides the boy was in school]. Home-schooling your daughter will cause her to be different and may create issues with her choice of high schools and seminaries later on. [Finally, the crux of the issue: being different]. Since you are blessed with a choice of several schools in you kehillah, choose the one that best suits your daughter's needs. Allow the capable menaheles and moros/teachers to succeed with your daughter along with your encouragement and close contact with the school. [How different are these schools really, as the responses aren't much different].

Hatzlacha.

Dean, Beth Jacob Seminary, Montreal

Your reason for wanting a one year respite from school for your daughter so that she can "benefit from a year away from the social pressures and stress." To me, this implies that you are running away from a problem and hoping that it will go away. Not only will it not go away, but it will fester and, like any other problem not dealth with, it will only grow in reality and in her imagination and will probably multiply itself twofold or more. [What a strange response. Yes, we need to deal with problems, but sometimes getting away from an issue is a starting point, even for adults]

If she is having stress, you must find the reason for that stress and try, to the best of your ability, to alleviate the underlying causes that brought it about. I also do not understand how removing your daughter from her society will remove her social pressures. She can only overcome such social pressures by learning how to deal with others. I also do not agree with you when you say that she will benefit from being removed from the social scene. She must try to understand what is causing the problem and try to minimize it. She may not be able to do it on her own and may need expert held. [If the environment of the school is hefker and the staff is on a different page, it will be near impossible to deal with the issue. I've heard such sad stories (public school stories too) and sometimes a fresh start is the best course. Reading in between the lines I hear the "deal with it" hashkafa which can be vastly inappropriate depending on what you are dealing with).

If one moves one's child from one school to another because the school is more difficult academically than what the child can handle, then I would agree fully with such a move, as one should always try to place one's children in school where they fit academically and where they can grow.

However, social situations are something else. Our children should be taught to get along with all types of people no matter the school. I therefore do not think that taking her out of school for a social reason will solve any of her stressful problems or any of the social pressures.

The only time that I would recommend home-schooling is when there is absolutely no other alternative to any conventional type of schooling. Examples would include living in a community which does not provide the type of hashkafah and education necessary. One of my nieces, who is from a chareidi Yerushalayim background, married a young man from London with a similiar background. They went into the field of kiruv and are living in Capetown, South Africa. Since the schools there do not provide the type of education they need for their children, their only option is home-schooling.

You say that there are several possible schools that your daughter could attend. If that is so, then you should turn over heaven and earth to find a solution to her problem and create a situation where she will be more socially adept. In the long run, the social aspects of conventional schooling are what will be ingrained into her personality. (Oh YES they will!).

More in Part 3, my final post on the subject. I have a lot of saved articles of interest. IF anyone has the letters to the editor section and if any of them address this round table, shoot me an email.

An Epidemic? Do I Detect Some Fear?

What an interesting and revealing (with a capital R) set of responses in the Yated Chinuch Round Table to an extremely vague inquiry from a parent on the wisdom of homeschooling a child for whom the parent deems is in need of break from school. . . and much thanks to Imamother forum participant because I have taken a long hiatus from reading the publication.

In a great show of "achdus" each and every mechanech forcibly condemns homeschooling, not just for this mother/daughter but across the board. I certainly wasn't expecting an endorsement from those who are immersed in the rather homogeneous school of thought of modern day, conventional schooling. However, the responses have left my head shaking side to side and my eyes popped wide open.

The current "yeshiva system" for all of its achievements (and there are very many to admire) simply does not always work for every child and every family, and in some cases the situation on the ground is detrimental to the student and their future. And yet in these responses there is almost no self-reflection regarding the conventional system and no commiseration with the pain of a parent who is only trying to figure out how to best help her child grow and thrive. I'd say at least two of the responses border on cruel!

Here is the vague question that begs "expound me."

What is the opinion of the panel regarding home-schooling?
I live in a community with several schools, but feel that my daughter can benefit from a year away from the social pressures and stress and would like to try this. In the experience of the distinguished mechanchim, is there a reason not to?

Let's take them one by one in two to three posts (I will start with some of the most eye-popping and work my way down). My comments will be in [brackets]. Excuse the snap in my type.

Rosh Yeshiva, Yeshiva Darchei Torah, Far Rockaway

Home-schooling is the "in" thing in today's day and age, a fad bordering on epidemic. [An epidemic? Do I detect some fear of the idea even being out in the marketplace of free ideas? Being a home-camping parent/early childhood "homeschooling" parent, I'm fairly certain it is safe to say homeschooling is NOT reaching epidemic proportions, nor will it anytime soon. I don't think we need to worry about homeschooling becoming an epidemic when it is near impossible to find close in age children that are home for the 8-10 weeks of summer].

My question is: Does your daughter want/need to be home-schooled or is this your idea? There is an interesting phenomenon. Serious baalei teshuvah are able to make up in 2-3 years what our children have studies for 15. Why, then, do our children spend so many years in yeshiva? [Just ignore this stunning inditement for a second because we won't be returning to this programming.]

There are two major components besides for ongoing learning.

One is the yedios one absorbs on a daily basis from one's rebbi/morah/menahel/gedolim, etc. There are so many nuances that make up a typical day in yeshiva/Bais Yaakov. Let's call this the osmosis part of education. There is no way in the work that your daughter will pick all this up in a home-schooling environment.

Second, there is a social aspect to being in a classroom. Learning how to play with friends, interact in after-school activities, and joining in the group are most important as well. We receive hundreds of calls over the summer asking to place children with certain rabbeim. While I seriously believe that it is narishkeitin, because all the rabbeim are wonderful [Evvvvvveeeeerrrrrryyyyyy single one? If only every employer could be so lucky!], there is nothing more important than good friends in the classroom [and does the girl have good friends?]. You are sending your daughter to a Bais Yaakov not only to learn, but, even more importantly, to make and retain friends. If your daughter has the common, everyday pressures of stress, teach her how to work with it. Don't run away from it. [First it might be helpful to explore where the stress is coming from. . . . bullying? a learning issue? A school day that is too long?]

Home-schooling should be left only for those who cannot function in a classroom- a handicapped or learning-disabled child who does not want to be placed in a public school, or a child who is cracking under pressure of stress. There is no sensible reason to take a healthy, normal girl out of her milieu. We have all seen too many karbanos [from where? There isn't a statistically significant enough yeshivish population to begin to analyze. I imagine there are no failures from the "system."]. Don't gamble with your children.

I am not even discussing the silliness of trying to avoid paying tuition. This should not be a discussion or consideration. [This is a hum zinger. . . "silliness"? Are there not families in the author's school suffering financially in this environment? Are there not families and marriages not slowly dying under growing debts and financials stresses (This is regularly spoken about by Orthodox organizations when they meet to discuss tuition)? Are there not children that might be living with extra stress from their homes because of the rat race to find that $$$$ and make ends meet? . oh, I forgot, "money ain't a thing" and should not factor into such decisions. Private school parents, a published statement like this from a very well respected Rosh Yeshiva has to make you wonder, right?]

Rebbi, Yeshiva Chofetz Chaim, Baltimore

I can't ever see a reason to homeschool a child. Aside from academics, there is so much to be gained from school. In fact, an argument can be made that the social aspects of school are even more important than the academics.

It sounds to me like your daughter needs a strong boost of self-confidence. Speak to her teachers for the upcoming year and explain her concerns. Homeschooling is not the answer. [Emphasis mine. Ever, ever? Can you bottle this confidence because it would eliminate a lot of sleepless nights for concerned parents?]

General Editor, Artscroll/Mesorah Publications

Unless there are compelling reasons, I would be opposed to homeschooling. The writer implies that there may be such "compelling reasons," but as a general rule it is a bad idea and, in most cases, a disservice to the child.

Academically, it is not likely that homeschooling will cover the normal school curriculum, simply because the drive to learn and teach will dwindle as the weeks go by, and there is little stimulus to maintain the program. [And this is not true of some classrooms too? Silly to even argue an unsupported point] Sooner or later, the child will go back to school and then she will be at a disadvantage, thus even increasing the pressures that the parent is trying to remove. Socially, the child will be without friends. Not at first, because she'll still be friendly with her old schoolmates, but that will wear off, since she will not be part of the school environment anymore. [If this is not the stupidest statement of the entire round table, I'm not sure what is. Seems the the socialization problem might be endemic to the very system being promoted. . . and pray tell, how do military brats even have friends?]

The parents shold consult the school on how to ameliorate the "social pressure and stress," but running away from the problem will not solve it. If, indeed, the problem is as significant as the writer implies, a professional should be consulted. [We don't even know where the problem is stemming from, but I guess the possibility that it might be coming from within the walls of the school is not something we should consider!]

The Solution: Move to Houston

Needless to say, while I favor inexpensive living and I prefer Jewish life outside of New York and New Jersey, there are many reasons why people live where they live. So I'm disappointed that the OU solution to the financial woes looks to be a campaign to "Move to Houston."

Mr. Cohen points out the article Orthodox Union has found solution to Orthodoxy's problems: Houston. No doubt the title is a bit snarky.

While Houston does has far more affordable housing costs and the tuitions may be "considerably lower" than New York area day schools, they are still massive, ranging betwee $10,790 and $18,883.

A former New Yorker (with 7 children) leading the Houston Orthodox marketing campaign states:

With the number of children the average Orthodox family has, what are you going to need to make to pay your bills, live comfortably and not be on scholarship? In New York, it’s in the hundreds of thousands of dollars,” said [M], who has seven children. “In Houston, you can do it for under $100,000.”

Seven children in school at $15,000 a head average is $105,000 by the way.

I always recommend taking out a calculator before making declarations.

And a P.S. Houston weather is not a selling point in my opinion.

But They Aren't Funding EVERYTHING!

There is a new tuition blog, Yeshiva Sanity, that I'm keeping an eye on. One early post that caught my eye asks "Are WE the Problem?" Well, of course we are the problem and have been since the days of Mitzrayim, but the implied solution, a more centralized funding solution, isn't the real reason why the Catholic Church or the Church of Latter Day Saints can and do provide a low cost education.

As referenced in the article, the Mormon Church subsidizes the cost of attendance at Brigham Young University (BYU) which is practically "free" all things considered at $2,280 for church members and $4,560 for non-members. Yep, a private university with public university pricing even for non-church members. Likewise, the average tuition of Catholic diocese schools averages approximately $3,400 annually, with the actual cost averaging nearly $5,400, a nearly $2,000 subsidy for school attendees.

One might think, wow, if we were only unified, we could provide a more affordable product too: "If only we had the sense of community that the Mormons and Catholics had we would less of a tuition crisis. People whose kids have grown up and have the most means and least expenses would be subsidizing the younger parents who are mostly at the beginnings of their careers and can least afford to pay." [sic]

I fully believe that with greater coordination, savings could be realized, but those who compare us to them with the belief that if we only cooperated that we could come closer to the BYU result are missing something very fundamental: both groups have put their eggs in limited baskets.

I hope I have my information correct, but here is what I have gathered from various sources, including people I've spoken with:

The Church of LDS is highly centralized. Young Mormon students attend Sunday school and there are numerous social activities within the wards (local churches for which membership is assigned based on residence) and temples (regional). Education becomes more formalized in high school as youngsters attend "seminary" which takes place before public schooling. In areas with religious release time, there are paid teachers. In areas with smaller populations, schooling is provided by (unpaid) lay leaders before public schooling hours or through home study groups. While there are some day schools in the Pacific Islands and in Mexico, in America there is no day schooling movement to speak of. Mormon children predominantly attend public schools. Nor is there a subsidized Mormon Camping Movement with its own fundraising, infrastructure, and costs.

Following high school, post-secondary formal Mormon education generally includes a 1-2 year mission for young men and women (and they pay for the privilege, although the church subsidizes the umbrella structure and going on a mission is more popular among the male set). BYU is a popular choice for young Mormon students, but there are also "institutes of religion" serving the single, Mormon ages 18-30. Many of the institutes are located adjacent to college campuses and there are public universities that are highly popular among young Mormons that do not attend BYU or one of the other BYU branches.

From what I can gather, the Mormon Church has put their eggs in a few baskets. The wards and temples provide the K-12 set with Sunday education, Seminary education, and social activities that promote social identification and attachment. The umbrella structure for missions provides young men and women with an opportunity to develop their lay leadership skills. The institutes serve the educational needs and social needs of the young adults. And BYU is the flagship institution, a desirable place for students to attend college for complete immersion and meeting their match (about half the student body is married).

To briefly touch on the Catholic Church, their educational eggs are concentrated on the K-12 through diocese schools. Non-diocese schools can be quite expensive and Catholic Universities cost a fortune, just as other private universities.

Within the Orthodox Jewish world, we have an educational basket for every age bracket from 2 years old on up, and each bracket is subsidized in some way, shape, or form through fundraising, community infrastructure, etc, to say nothing about the expectation that one participate in the non-unified system from the age of 3 on up. We have preschool. We have preschool day camp. We have day school/cheder/yeshiva/bais yaakov. We have day camp. We have sleepaway camp. We have adventure and travel camps. We have boarding high schools for boys and girls. We have the year or two in Israel. We have beis medrash programs. We have social-educational youth group programs. We have outreach programs of every flavor and outreach yeshivot/seminaries. We have Jewish Universities (YU, Touro). We have college seminaries with relationships for degrees within the daled amot. We have Kollels galore. We have community Kollels too. We have shul and yeshiva sponsored avot u'banim and other learning programs. We have kollel dirshu with a stipend. We have learning within shuls with its own infrastructure and adult education institutes with their own corporate structure. (Did I miss any educational program that is supported directly or indirectly with donor money?)

In other words, even if we were to centralize/coordinate our K-12 efforts, we are funding just about everything under the sun and we have a lot of eggs in a ton of baskets. Therefore I don't think we can expect the BYU result at YU.

Shabbat Shalom.

New Low Cost Option: Yeshiva High School in Los Angeles

Wish I had found out about this new school before the open house. But, better late than never, right?

Los Angeles is now hosting a second low cost yeshiva high school option called Yeshiva High School with a tuition of $8000 (the first was Yeshivas Ohev Shalom which had a PSA on this blog in 2010). The mission statement is a big different than other mission statements I've read. It reads: "The Yeshiva High School is intended to serve the greater Los Angeles community and to provide each student with a diverse self-directed, independent education in a safe, supportive and nurturing environment that promotes self-discipline, integrity, motivation, and excellence in learning. We are dedicated to Halacha, Torah Hashkafa, a love of Eretz Yisrael, outstanding academic achievement, and moral conduct. The Yeshiva High School joins parents, community members and businesses to assist student to become self-sufficient, respectful, ethical adults who are successful life-long learners committed to contributing responsibility both in the Jewish and global communities."

You can see the course offering, philosophy, etc on the website. I pulled the tuition from a article in the Jewish Journal that came through my feed.

What To Do When The Money Doesn't Exist?

Hat Tip: with thanks to a loyal reader

A mother at Imamother writes the following (two excerpts):

I'm supposed to register my second child for school next year and even if after the humiliating questionaires and grilling they agree to give us a break, I wouldn't have enough to pay the school and I have no idea what I am going to do. I am putting off having a third child indefitiely ONLY BECAUSE the cost of tuition is prohibitive. this cannot be what sarah schneirer had in mind. I don't have the guts to put my kids in public school although it grows increasingly tempting. What options are there if the money simply DOESN'T EXIST and there is nowhere to get it from? I am constantly fighting a sense of panic. This issue is controlling our finances, our family planning, our emotional health...this is WRONG! Especially in today's economy, where people need to be happy with whatever job they can get, how does anyone in the frum community pay more than one tuition? who has a spare 10 or 20 or 30,000 a year after living expenses? WHAT DO I DO??

--AND--

[. . . . . . ]I AM getting a tuition break. full tuition would be nearly $7000. But for my next kid the most I can do would be 2500 and the school won't take that. I have a friend with girls in the same school who ligitimatly can't pay because the school she works for is behind in paying her. her kids are getting kicked out. schools are toughening up, and not giving breaks and grace periods like they used to because they are also short on cash. also the exedous from brooklyn to lakwood means fewer young families and fewer kids in the schools. that means fewer tuitions. so they need whatever money they do have coming in and they won't give up on it so easily. Our school got a new tough as nails administraotr and you have to go through a song and dance just to get an appointment with him and even if you do, he has heard the same sob story ten thousand times. the fact is we just can't afford it the same way we can't afford to buy a house and qwe can't afford a new car. we can't afford private school. I looked into homeschooling. I don't think I can pull it off. I don't have the patience or the orginization or the space. I may have to look into it again, but not everyone can be a teacher. even for their own kids.

Additional info: The husband works a "dead end" job, has no degree/vocational certificate and what he makes only covers about half their living expenses. The mother freelances, but hasn't experienced great success.

Wow, this is a really difficult situation with no "good solutions" in the here and now. Reading between the lines, the underemployment on the part of both parents makes the oft suggested individual solutions (moving, aliyah) problematic. It also makes the "obvious" alternative of homeschooling, suggested as it should be, difficult because the parents need to be investing in their own earning potential, skills, etc.

I regard homeschooling/group schooling as one of the most doable alternatives for centrist/modern Orthodox Jews in the upper middle income brackets (esp. where income is earned primarily by one parent). It is one thing for a family staring another 5-digit tuition bill in the face that falls on top of another 5-digit tuition obligation to decide to home school. It is quite another thing for parents who just don't have much disposable cash regardless of where they send their children to school. This is just my opinion, but I think it would be very, very helpful to have some real money to work with if taking the homeschooling route (especially in a world that can be described as hostile to the very idea).

So what are parents like these to do when their well has simply run dry and the schools are not able to accommodate? Are there any practical solutions in the here and now for parents that don't think they can home school?

I always love flexibility and many options. Flexibility seems to be sorely lacking here. It is hard to know just how limited the family's options are or if they are limiting their own options unnecessarily. I do believe that no matter what schooling route they ultimately go in, or regardless of if they grow their family, the parents must invest in their own earning potential. .. from developing a marketable skill set to developing the skills that are keeping them from seeing the possibility in homeschooling.

The Disconnect

Rabbi Berel Wein wrote a JPost column this past week called THE DISCONNECT about the widening disconnect between leadership and the vast bulk of the Orthodox population. He points to a few issues and asks the populace to demand more from "those who claim the ability and knowledge to lead us." Quite frankly, I'm not certain which leaders Rabbi Wein thinks the populace should be demanding more from. What I am certain of is that there is a disconnect, especially from crowned leadership (that Americans are increasingly turning to, bypassing the LOR-Local Orthodox Rabbi) and even from the local Rabbinate who aren't particularly subject to the same demands.

There isn't much in the article that I want to blog about from the article, except to point out something that I'm not certain many 'leaders' are willing to admit (perhaps even to themselves? Leadership of some schools will tell people that the tuition burden is mostly shared even though there is much evidence to say that this is not the case). So it is nice to see some confirmation of what many in the populace believe to be true vis a vis tuition:

The tuition rates for attending Jewish schools are rapidly reaching the breaking point. A small percentage of parents – those who pay full or almost full tuition at schools – are subsidizing the rest of the parent body who cannot afford the astronomical amounts that are termed full tuition. But that group of people – those who can and do pay full tuition – is a rapidly diminishing breed. Instead of addressing this problem – the true time bomb that threatens the future of Torah education – we spread our wealth so thin that we are unable to help the situation.

An issue that Jewish Worker blogs about this week demonstrates this vast disconnect is regarding monetary needs/tzedakah and just how vast and broad the need is. Shas is working on a plan to provide life insurance under a group plan to kollel students. A monthly premium would be deducted from their checks to provide for this need. One would think such an idea would be embraced wholeheartedly. But, as per the Israeli Mishpacha, Rav Shteineman has come out against this plan claiming that it is the zechut of tzedaka to widows and orphans is saving the generation from destruction. As Jewish Worker rightfully points out, even where life insurance could take over from tzedakah, there is no shortage of need and suffering in the Chareidi community. Yet the answer to hishtadult is "no", which Jewish Worker points out is an answer of "let them suffer so we can do a mitzvah" because the needs of the community are growing exponentially.

Dr. E over at Cross-Currents, in response to Rabbi Wein's article, notes the following regarding the disconnect. . . and (dan l'chaf zechut), I can only conclude that Universally recognized great Torah minds are simply shielded from the realities of those that they lead, even if their pictures are plastered on proclamations and advertisements for certain tzedaka organizations. The math is staggering:

Focusing on that, how did it become that way? One obvious culprit is a creation called Askanim. Ma rabu maasecha Hashem! These are the gatekeepers and social engineers who are both the diagnosticians of the ills of our community as well as the technicians who deliver the therapy. They know what is best for the masses and exploit the name recognition of great people, filtering information in both directions. Believe it or not, here was a time in history when great Rabbinic luminaries answered their own phones, opened their own mail, read newspaper, and penned their own signatures after carefully reading the paragraphs above it. But, more importantly, they lived in the communities for whom they led, paskened for, and inspired. (It would make a great doctoral dissertation to pinpoint the year and place when the period of the Acharonim transitioned into the era of the Askanim.) While we have some great Poskim with encyclopedic minds covering the breadth and depth of Torah, they are prevented from developing the other main attribute of previous Gedolei Hador, which is “getting it”. As a result, we have a disconnect that spans not only across oceans but also across the street within one’s neighborhood. It is certainly possible to have Kavod Hatorah, while at the same time stipulating that thanks to the Askanim, many of the Torah giants should be seen in more limited roles.

Speaking of the math, following the passing of Rabbi Nosson Finkel zt"l, the Rosh Yeshiva of the Mir, there is a campaign underway to close the $10,000,000 debt (yes, 10 mil) the yeshiva has. As per Jewish Worker, who once again pulls from Mishapcha (English version), for 5 straight months, Rebbes have not been paid, nor have kollel avreichim. Even if the money is raised to pay off this debt, what of the future operating costs? And, unless one believes the tzedakah pocket is unlimited, what of the other institutions for which might ordinarily be recipients of tzedakah? (Divrei Chaim makes this point) While I believe the free market will sort much of this out, I don't think like the idea of collapse, and with this type of debt is seems that something will come crashing down. I think we'd all prefer to see a more natural consolidation. But the numbers just look bleak.

Rafi at Life in Israel is reporting on desperation from selling baby naming rights to the highest bidder to ongoing, long term theft where the culprit was finally caught: an avreich stealing baby formula because he doesn't have what to feed his 5 children. Chazal's words are being brought to life and it is just painful.

Many turn to a popular Rabbi for advice on life issues (I know a number of followers in my own back yard and I believe the following to be quite large). In a column regarding overwhelming wedding expenses, the advice given is "just pray" and leave the 300,000 shekel debt to Hashem.

Avremel, you don’t make weddings, Hashem does!”

“Reb Lazer, that’s either Baal Teshuva talk or Breslever talk. We don’t think like that. We have to raise the money ourselves!”

I couldn’t believe what I was hearing. Here’s a man of 48, born into a Chassidic family; he learned in cheder, in lower yeshiva, in upper yeshiva, and then for another seven years in rabbinical kollel before he had to go to work to pay his bills. It was pitiful to see such a person with beard, long sidecurls, a long coat and Chassidic knickers with black socks living a life completely without Hashem and devoid of emuna.

Avremel had tears in his eyes and his upper lip was quivering. “Where in the world am I going to get 300,000 shekels in 7 months? It’s impossible!”

“Li hakesef ve’li hazahav, ne’um Hashem!” I quoted the Prophet who tells us that Hashem has all the gold and silver. If we need money, we go to Him. “Why not try talking to Hashem?”

Where is the yashrut? How destructive is this type of behavior in families and when entering into shidduchim? Yet here is a platform to speak about yashrut, about hishtadult, about being reasonable, and the answer is prayer, and only prayer?

(As one of my valued commentators points out, I am being a bit unfair in my remarks regarding hishtadult. So, I want to clarify the thought. The father is absolutely doing his hishtadult vis a vis effort and work. He is anything lazy holding down more jobs than I ever care to hold down. The effort that I was referring to was not in terms of working more, but in terms of extracting himself from a lifestyle that can simply no longer be maintained and further promises that should not and cannot be made. The point has been reached where this father simply cannot obligate him to pay another bill. The point has been reached where the father must extradite himself from the current situation of supporting growing families. Working yourself to death will eventually leave all those who depend on him in an untenable situation. Hashem does make weddings, but to imply that Hashem will drop 300,000 shekel from the sky--that is approximately $79,000 as per my foreign currency calculator--is not leadership, nor is it a proper way to conduct one's dealings ever! One article I see tells me that average Israeli salary is approximately 95,000 shekel per year. The father is already working more than one job. How is this advice?)

Because I'm out of time, I will deal with another disconnect issue soon.

Tuition in Israel

This Arutz Sheva article showed up in my Google Alerts for Yeshiva Tuition today. MK Orlev is setting up a panel to examine why tuition is so high in Israeli Yeshiva high schools. While many here in the US of A speak about how inexpensive tuition is in the state of Israel, tuition in Israel is much lower ($1400 per year per student for commuters and $3200 for schools with dormitories).

Yet, for many Israelis, the tuition is excessive, especially with multiple children. Parents want transparency and cost cutting measures. The committee would investigate budgets and see if they are getting all of their government funds.

I'd like to hear from my Israeli readers regarding this article and whether the calls to do something regarding tuition are widespread and what those who can't meet the costs do in the present.

Lakewood Sensibilities or just plain Sensible?

Chaim of Divrei Chaim writes about a chessed dinner put on through the school (which is is generally pleased with) in which the young teenage girls enjoy a banquet a bid on prizes including things like a manicure, shopping trip to Woodbury Commons, or Shabbos in New Square which starts at $100 per person (take from the comments). Such an event brought him to the passuk "love kindness and walk modestly with your G-d" as being not two values, but a relationship of values. The way of chessed is through modesty (and by that the Navi isn't speaking of clothing measurements alone).

Every once in a while a Orthodox leader or Rabbi decries America materialism, mostly in relationship to the tuition crisis (subject of an upcoming post), yet few seem to blink an eye when schools put on this type of event or go on day trips that many families wouldn't even consider going on themselves. The idea of putting teenagers into a group setting to bid for prizes, prizes that introduce greater luxuries or require more cash outlay, are particularly distasteful to me.

Perhaps adults "need" carrots to guide their giving and make it "palatable" or to attract more attention in the marketplace, but do we need this for children? If we really want to tackle rampant materialism and entitlement (and such come up as regular subjects), the place to start is with some basic sensible chinuch. My 13 year old has no business taking her ma'aser money and bidding on a manicure in order to make a simple donation. . . . and for that matter, I don't need to so either!

A commentator b writes "In December of '05, the BMG Ladies Auxiliary sent out a Chinese Auction booklet that offered prizes that were, by Lakewood standards, extravagant. Rabbi Kotler soon retracted the booklet and issued an apology. Chaim, you have the sensibilities of a Lakewood Yeshiva person. For the rest of us, the reality is that this is a good and efficient way to raise money."

Well, label me a "Lakewood Yeshiva person" if you may, but one need not live in Lakewood or even have a yeshiva education to say, "what in the world is going on here?". I'd label the questioning/opposition as just plain sensible! And I think that "we" are making a major mistake in chinuch with the notion that there need to be a prize for everything.

(On a related note, Jewish schools have a very broad socio-economic spectrum and relatively small numbers of students. I think it important to keep that in mind when planning school related events. A mother-daughter tea at $36+ babysitting if necessary, ski trips, graduation trips, etc all add up and parents of teenagers tell me they can spend upwards of $1000 on the extras in a year.)

Of course, a yashar koach to Chaim B's daughter who was able to ask questions when seeing the event.

Parsonage for Women: A Money Saving Idea

Hat Tip: a reader

Avi Chai Foundation, based on an essay by Rabbi Michael Broyde, is making the case for female day school/Bais Yaakov teachers to qualify for parsonage.

Parsonage allows a religious institution to pay a "minister" a housing allowance (in short, an amount not to exceed the lower of actual cost or fair market value of a furnished home + utilities + repairs). The institution benefits as parsonage is not subject to the employer payroll tax.

The employee benefits as the parsonage is not subject to Federal Tax. (It does however count as income for the purposes of the Earned Income Credit). The employee pays both halves of the social security tax on their earnings and parsonage. But, because those receiving parsonage are employees rather than a contractors, employers can offer other tax advantaged benefits.

Obviously the female Rabbinate in the Reform and Conservative movement qualify to take parsonage in full. [Updated: I believe that a yoetzet halacha would certainly qualify]. The case for parsonage for Orthodox female religious study staff is a harder case to make given that there are no formal programs for female religious leaders.

I think Rabbi Broyde makes an interesting argument, but not one I'm particularly comfortable with. His argument is as follows:

The Jewish legal tradition lacks almost any ecclesiastical function that can be performed by ordained rabbis only and recognizes that lay leadership can rise to the level of clergy in functionality, form, title and duties…. [I]in many yeshivas, some women serve in roles identical to those served by rabbis, e.g., supervising prayer, providing religious guidance, teaching sacred texts with religious fervor, conducting themselves as religious role models, and otherwise serving sacerdotal functions. These women are entitled to the parsonage allowance exclusion according to the laws of the United States”.

Certainly we aren't the only tradition for which lay leaders can perform any function. In fact, I believe that the Mormon Church has only lay leaders who have achieved various ascending rank who serve as lay leaders and preside over religious life in addition to regular employment.

Also, it is hard to have a leg to stand upon regarding women having a leadership function when the Orthodox world has been fighting such within its own daled amot. There is, shall we say, little precedent.

According to the Avi Chai blog post, there are already Modern Orthodox and Chareidi schools claiming parsonage for women. I don't believe that this is done where I am and I don't know any CPA that would recommend as such.

So, feel free to comment here or there. I don't think this is a shoe-in, especially as parsonage is generally reserved for those who are ministers inside of churches (or Rabbis inside of synagogues). I know of no other religious group, save the Amish, that has their own schooling system. I think there is a fine line between taking full advantage of the tax law and acting rashly. But, there is no question that there are savings to be recognized.

Some after notes and thoughts:

**I certainly believe that functioning yoetzet halacha would qualify for parsonage.

**It would be interesting if those who work in the schools could give the readership an idea of what percentage of women limudei kodesh teachers have husbands who do NOT have a parsonage through their own Rabbinic post or teaching post. I don't want to venture a guess, but at least as you move right on the spectrum, it is my observation that kli kodesh come in pairs.

**Worthwhile reading (hat tip: Tax Prof blog). Cordozo Law and Gender Journal, ORTHODOX JEWISH WOMEN AND ELIGIBILITY FOR THE PARSONAGE EXEMPTION, Jacob Lewin analyzes Rabbi Broyde's view which he views as overstepping and perhaps even abusive. Excellent read.

Some tests:

1. Does the person administer sacerdotal functions customarily

administered only by clergy? 2. Does the person conduct worship

services? 3. Does the person perform services in the control, conduct, and

maintenance of a religious organization? 4. Is the person considered a

spiritual leader by his or her religious body? 5. Does the person have a

formal license, commission or ordination?

"We Expect"

Thank you to the readers who are sending me tuition links like the subject is going out of style. Not to worry, I will continue with some of the bread and butter with my blog, I've just been busy.

First up on the tuition circuit is this editorial from the new President of the Orthodox Union, Mr. Savitsky: Do We Have an Economic Model that Works?

I'm just left speechless by this near promise on the issue of affordability private Jewish education:

One of the solutions we expect is that the funding of secular education in yeshivos will be paid for by the city, state, or federal government. The money must follow the student, and every student by law has the right to a secular education.

While I appreciate the efforts to secure funding for private school students (despite my own ambivalent stance re: government funding and private education ), I am just aghast the only thinking being presented is:

1. Secure government funding (hasn't happened yet and little positive indication that it will happen)

and

2. Relocate people to promising communities.

The four criteria per the article are:

-First, a community must possess the basic infrastructure: shuls, mikvahs, a yeshiva environment, access to kosher shopping, an eruv, and kosher restaurants.

- Second, it must have serious opportunities for employment at all levels. Without jobs, we will not be successful in encouraging people to move.

- Third, it must be a warm, caring and cohesive community that offers financial incentives for people to move; it must have affordable housing and education; and the community has to be willing to engage in outreach as unaffiliated Jews become attracted to their synagogues.

- Fourth, there has to be stability in rabbinic, educational, and lay leadership. Why invest in a community if its rabbinic leadership changes every few years?

I've probably played out the commentary on the former. Do readers see positive signals that private school students of the average Orthodox demographic in any state are soon to see funding? The statement is rather bold and unbelievable without any evidence of legislative change.

Regarding the latter, I am very curious which communities have been identified on the list of 10 and I'm looking forward to seeing the short list rolled out. I do believe that young people would be well served exploring less pricey communities and building a life in those communities. There are a few incentive programs of recent memory, one featured on VIN in a smaller Long Island community. Since no incentive packages have a long term track record, building an incentive program is certainly experimental. I'd like to hear more about what the accomplishments and pitfalls have been.

Dental Care is Important

Thank you Mr. Cohen for pointing out this news story that underscores that dental care is important and must be prioritized. For new blog readers or infrequent readers, dental care is something that many forgo to pay for other things (including tuition).

And only 24 years old. How sad.

Update: No this post is not about the health care debate. Yes, certainly he could have made different choices. Bottom line, dental care is health care and I've seen enough anecdotes/posts about forgoing dental care for tuition (not that I'm doing the math) and I don't think it is wise. Done. :)

Simply Don't Understand the Response

Earlier this year I posted a PSA for the West Orange Cooperative Yeshiva (WOCY) which was slated to open this coming September. The WOCY had rented a facility, hired staff, and enrolled students.

Recently, the Cooperative announced that some enrolled students flew the coop and the school would no longer open. Clearly, such is a risk in any small school.

What I can't understand is after renting a facility, hiring staff, and enrolling students, only to see the project collapse, how this can be the press release:

The West Orange Cooperative Yeshiva achieved an incredible goal of enticing the local yeshivot to match and even beat our tuition rates for many West Orange students this year. This is a wonderful accomplishment and really why we began this endeavor.

Based on this information which came from some of our student body as well as other prospective families, it became clear that there was minimal need for us to continue. More and more families that were interested in our school started signing at wonderfully reduced tuition rates that they were not offered in the past. In lieu of this, we will not be opening this year and fully expect the tuition assistance to continue in the future.

We are very thankful to our local yeshivot for recognizing the tuition crisis and reacting in a way that helps the community at large

.

While is is quite nice for the parents who wanted to only pay $XXXX, that they are now able to pay $XXXX (for school year 2011-2012) in the school of their choice, such cannot be why a school is organized. And what of minimal need? These are kindergarten students; students with 12 more years of schooling ahead of them. Are the established schools going to continue to offer reduced tuition for many years to come when there is no competition, and no real threat of competition because they can now call the parents' bluff?

And, where is the yashrut? There were staff that committed themselves to the school. And surely not every parent flew the coop. What of those parents who didn't intend to be looking for another arrangement in the 11th hour? What of sincere parents down the road who might like to form a co-op but will not be taken seriously should they try?

I simply don't see the silver lining here. But, perhaps someone will explain it to me.