@AAQ
Having professionals not related to the institution relieves a lot of stress and protects the privacy of the applicant. As JFS professionals they often have access to other resources for the applicant that can help reduce the cost burden (programs, grants, private scholarships that the school head may not know about).
In small communities there are not usually more than a couple of day schools/yeshivos so having choice based on price competition does not exist. What does exist is the schools are constituent agencies of Federation and revive a slice of general Jewish Fundraising in the community (something that doesn’t happen in NY).
When the last day school was built in our area of CT, 80% came from the general Jewish Community, not the frum community. OOT the non-observant Jews realize the importance of keeping these schools healthy and also contribute to scholarship funds.
