Reply to what is the point of college endowments?

Forum Index » College and University Discussion

Reply to "what is the point of college endowments?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]As a PP noted, the actual budget of a college or university divided by the number of students is way higher than the annual tuition. The difference is covered by endowment income. For example, most senior professorships are "endowed," meaning the restriction on the endowment goes to pay for X professor's salary. Nowadays many new teaching positions are adjunct because they aren't endowed and have to be paid out of the operating budget. When a new building is built and named after someone, some of that money goes into a restricted fund and is used to pay off capital debt and/or operating expenses for buildings and grounds. All that merit aid that students get is endowment income and restricted to reduce tuition (e.g., offset operating expenses).

This is why looking at a school's endowment is part of the application/decision process. Schools with smaller endowments are less likely to give financial aid, more likely to use adjuncts, and more likely to close in the face of declining enrollment. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics