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Reply to "Sidwell tuition increase"
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[quote=Anonymous]Most endowments pay out a certain percentage of their principal (say 4%) based on an average of its year-end amounts over a multi-year period (e.g., 4-5 years). They use this lookback approach so as to avoid paying out too much in a good year or too little after a bad one. Also, a great deal of thinking has gone into the increasing tuition problem. Everyone can see it won’t end well. But I don’t know of schools that have solved the problem but through the creation of massive endowments and very successful annual fund campaigns. The world awaits she who finds another way. [/quote]
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