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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Almost all these endowments were in early rounds at SpaceX, Anthropic, OpenAI etc. They're about to reap huge gains. (WashU has already announced). They do using federal cuts as cover to cut things they've wanted to cut, and add some public facing cuts (no more food to-go containers at Yale!), but they're richer than ever. And all WASPS were unaffected as they had under 3000 students. Richest schools like Princeton that had under 3000 "tuition-paying" students also unaffected.

These top college would like to keep tuition-paying enrollment under 3k. Which means increasing aid to full-tuition packages to more not less[/quote]

They're going to get their research grants back somewhere from 1-3 years from now too, they still have to cover payroll in the meantime. Harvard took out a dang bridge loan, I don't think they're tapping into their credit rating and paying out interest for funsies.

And again, most of the endowment money can't be used to cover operating expenses - if your endowment grows by 30%, that's great for the stuff you're allowed to spend your endowment on, but you can't simply cash out a billion dollars and use it to pay for whatever.[/quote]

Universities routinely issue debt for projects and operations. They have been doing it for decades. Harvard issued bonds earlier this year. Their cost of capital was under 3% as the rating agencies (which know much more about this than you) continue to rate them AAA and investors (who also know more about this than you) have strong faith in Harvard. And they are usually able to issue tax-exempt debt so the interest rates they pay are lower than corporate debt. Doesn't it make sense to borrow at these low rates rather than tap into your endowment which will likely be returning a much higher interest rate? It is basic math.

I can't stand people who ignorantly think that universities/hospitals/municipalities issuing debt is a sign of weakness. It is a sign of using their brains. Leverage is great when used wisely. If a university starts going overboard with the leverage, the rating agencies call them out on it. That is far from the case here, and with most other schools issuing debt.[/quote]

I didn't say it was a sign of weakness. I think it's reasonable to say that they're under more financial strain than normal - the grant cuts have been very widely reported - and that they might want to take some modest measures like letting in an extra 50 rich kids (who happen to be predominately white yes I said it look at the demographics for most of these schools) to help close the gap.[/quote]

Actually, there is a good chance the rich kids are Asian. Though again, not sure why race is relevant or needs to be mentioned. But you keep on winning. Clearly not a Harvard grad. Or even Yale. Or Cornell.[/quote]

I cannot tell you how delightful I find it that "private school matriculations are doing well because colleges are letting in more rich kids for financial reasons" is upsetting you in this way. (I did in fact go to Harvard though since this is anonymous forum I have no way to prove it, which is also where I formed my cynical views of rich private school kids going to Harvard)[/quote]

For a Harvard alum you completely lack reading comprehension as well as EQ skills. And lack understanding of basic statistics. Or for a citizen of the world for that matter. Jeez. Sorry you have kept such a chip on your shoulder about people with wealth. Not a fun way to go through life. Your four years at Harvard (or however long you were there) must have been miserable.

When I interact with people I try not to focus on race, gender, wealth, etc. But if someone proves themselves repeatedly not to be that sharp I do notice that...[/quote]

Yeah, now you're also demonstrating why I feel the way I do about rich people so kudos for helping to reconfirm me in my life choices.[/quote]

I'm not rich. Comfortably UMC. But definitely not rich. Keep on digging.[/quote]

So you're a UMC person pushing back against my besmirching of rich people, even more delightful.[/quote]

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