Reply to LACs will avoid endowment tax

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It’s 3000 “tuition-paying” students, so I’m pretty sure Smith will fall under 3,000. With a little maneuvering, Dartmouth and Princeton could as well. [/quote]

It’s full-time students plus part-time students calculated on a full-time student equivalent basis. Will be tough to game. I think Smith is still just under 3k though.[/quote]

Ah, I see the part of the bill now that mentions tuition-paying. But then that’s defined as full time + part time equivalent later on. Good luck to the tax writers with this crappy language.[/quote]

In the previous iteration of the statute, IRS guidance defined “tuition-paying” as paying tuition. (And under recent Supreme Court precedent, they couldn’t interpret it any other way.)

Most of Princeton’s grad students don’t pay tuition. And 70 percent of undergrads receive aid and the average amount of aid (more than $70k) exceeds the cost of tuition, so a substantial number of undergrads are not “tuition-paying.”  If Princeton isn’t already at fewer than 3,000 tuition-paying students, it could get there with a relatively small expansion of its financial aid policy.

I don’t know Dartmouth as well, but I’m guessing they could get there as well. [/quote]

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