Connecticut’s education landscape continues to evolve, and CHEFA’s FY 2025 sector reports highlight how independent schools and higher education institutions are navigating shifting student demand, rising costs, and ongoing competitive pressures.
Independent Schools: Stable Demand, Higher Costs, and Continued Investment
CHEFA’s independent school portfolio includes 33 schools across the state—boarding, day, and specialty schools—representing $713.2 million in outstanding bonds. Overall demand remains healthy with a 1.3% increase in application volume.
Selectivity also remains strong. Boarding schools now accept about 45% of applicants—far more selective than national independent school benchmarks—and day schools continue to compare favorably to peers nationwide. Total enrollment increased 1.5% over the past five years, mainly attributable to the day schools who have steadily increased their enrollment in each of the past five years. In looking at geographic distribution, total CT residents remained level, averaging 38% of total enrollment while international student presence has increased 10% over the past five years, accounting for roughly 21% of the boarding school’s total enrollment in FY 2026.
Financially, schools are feeling the pinch of rising costs. Operating margins and cash flow have tightened. Still, schools continue to invest in their campuses: 64% invested more in facilities than their annual depreciation, a sign of long‑term planning and reinvestment.
Higher Education: Strong Interest, Softer Follow‑Through
CHEFA’s higher education portfolio includes 16 institutions with $5.24 billion in outstanding bonds. Despite widespread headlines about national enrollment challenges, Connecticut institutions continue to attract attention: applications increased 28% over the last five years, yet commitment is lagging. Students are more selective and cost‑conscious, pushing matriculation to its second‑lowest level in five years. Financial pressures are also mounting as rising costs and flat tuition revenue drive a 41% drop in median net income.
Still, the sector shows signs of resilience. Total endowment wealth has grown 5%, reaching its record high with 6 institutions exceeding a $500m balance. Debt remains manageable as the portfolio effectively reduced its leverage profile, despite a 79% increase in median capital investment. Institutions are prioritizing campus reinvestment while remaining conscious of their debt profile.
Connecticut’s schools—both K–12 and higher education—are working hard to stay competitive, serve students, and invest in their futures. CHEFA will continue supporting these efforts through responsible, cost‑effective financing and ongoing sector analysis.