Reply to Amount of Endowment Tax Liability Expected for 25 Elite US Universities

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I dont know[b] why they don't stop charging tuition[/b]. Or move the FA limits up to 500k HHI and 3mm assets. so only 20% pay tuition. [/quote]

Princeton probably will, at least to get the number of tuition-paying students below 3,000. They aren’t that far off already.[/quote]

To make this work many schools on this list will have to abandon need-blind in making admissions decisions. Even the top schools need tuition revenue. Each school will need to figure out if its bottom line or net revenue is better if: 1) decrease the number of students, 2) increase the number of students on full aid for tuition and fees, or 3) pay the endowment tax.

This is a win for the enrollment management companies and their algorithms.[/quote]

This is why it makes sense in Princeton’s case though. [b]About 3200 grad students, most of whom are PhDs or Wilson school students that go for free, and of 5700 undergrads, 62% of them are getting aid that on average is more than tuition. They can easily push below 3000 tuition payers if they aren’t already there.[/b]

There may be some others like Dartmouth. Probably will be much harder for schools that are bigger or reliant on MBA, JD, and other grad programs for revenue.[/quote]

You are neglecting a crucial concern: What is the definition of "tuition paying students" ? Are students with grants--either/or based on merit or financial need--tuition paying students ? [/quote]

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