They were having some significant financial problems and had sent out info that they might be closing last school year. Something came through at the last minute that allowed them to remain open although I don't know what. The financial aid is part of their plan to keep the school financially viable -- they figured that it made more sense to have classes more full with some kids paying less than have smaller classes full of kids who could pay the full tuition. The classes are very small, though, as you mention.

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