There is no upper limit on the budget… Spending 500,000 yuan on consultation to get their children into a prestigious school is worth it, parents say_1
In a recent discussion at a high school in New Mexico, graduating students sought advice from their teachers on how to navigate the academic, financial, and social pressures of college life. With rising tuition fees and competitive admissions processes, some families are willing to invest up to $50,000 for private college admissions consultants to help their children gain entry into Ivy League schools. CNBC reports that despite the steep costs associated with applying to prestigious colleges, many parents deem it a worthy investment.
The article highlights that certain families have virtually unlimited budgets to ensure their children secure spots in the world’s most competitive institutions. For instance, parents working with Command Education, a college consulting firm in New York, may spend around $120,000 annually on consultancy fees alone, not including costs for SAT or ACT prep. By the time their children graduate high school, families might find themselves spending nearly $500,000.
Acceptance rates at leading American universities, including Ivy League schools, have reached record lows, intensifying the competition. Thomas Howell, founder of Forum Education, based in New York, comments on the increasing competitiveness of college admissions, noting that the pressure to achieve favorable outcomes weighs heavily on families.
For some, the quest for admission into top-tier universities has become an investment, leading to significant expenditures on tutoring, college counseling, and standardized test preparation without strict limits. While some private universities can cost nearly six figures per academic year, others have opted for less expensive public institutions or alternative career paths. Howell suggests that opinions on whether spending money on college is justified vary widely. For students unable to secure admission to the top 20% of universities, he advises considering more affordable options instead.
Hafeez Lakhani, founder of Lakhani Coaching in New York, notes that affluent families remain willing to invest over $100,000 in their children’s education, representing about 20% of their clientele. He remarks, “This may be one of the largest expenses parents incur outside of buying a car.”
On average, Lakhani’s clients spend around $58,000 on college admissions consulting, with some parents amassing costs of up to $800,000 over several years to ensure that their children receive what he describes as “Navy SEAL-level” tutoring for each subject. He charges $1,600 per hour for his services, yet parents continue to line up for his expertise. Other consultants at his firm charge about $290 per hour, but families frequently prefer to work with Lakhani himself.