Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

For the schools subject to the tax, it’s a huge deal. This is a tax of several *billion* dollars for most of them.

No, it is not. An 8% tax on investment income (because it is not on the whole endowment, but on investment income only) is a billion dollars for exactly zero institutions. For Harvard it is maybe a bit over $300 million and it goes down quickly from there for other institutions. And that’s on an endowment over $50 billion and before they take steps to reduce their realized investment income. There are only four other institutions above the size threshold and in the 8% bracket.

I'm confused. Is the endowment tax a tax of AUM or on the income the endowment generates? I always thought is was the AUM.

^that was satire, if you didn’t notice

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

For the schools subject to the tax, it’s a huge deal. This is a tax of several *billion* dollars for most of them.

Very few universities are being taxed a billion. The wealthiest LAC-Williams-only has $3.6bil

At my Williams reunion in June, the President told the alumni society that the tax could cost Williams as much as $40 million per year. That was really operating money for the college.

Williams chooses to finance an incredibly expensive all-grant program. The college could splurge on whatever it wanted if it got rid of that.

Yeah, let’s go back to making college only for the rich. F*ck them poors, right?

Anonymous wrote:

Anonymous wrote:Has the endowment tax change gone through?

Senate is currently voting on a version of the bill that has the exemption. It'll probably pass, as they want to protect Hillsdale.

Hillsdale will indeed be exempt, as will other rich LACs, such as Williams, Amherst, Bowdoin, Hamilton, Swarthmore, Pomona, Claremont McKenna, Carleton, Grinnell, Davidson, W&L, Wellesley and Bryn Mawr.

https://www.forbes.com/sites/emmawhitford/2025/07/05/these-26-rich-private-colleges-just-got-a-tax-cut-from-republicans/

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

For the schools subject to the tax, it’s a huge deal. This is a tax of several *billion* dollars for most of them.

Very few universities are being taxed a billion. The wealthiest LAC-Williams-only has $3.6bil

At my Williams reunion in June, the President told the alumni society that the tax could cost Williams as much as $40 million per year. That was really operating money for the college.

Williams chooses to finance an incredibly expensive all-grant program. The college could splurge on whatever it wanted if it got rid of that.

What program is this?

Financial aid

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

For the schools subject to the tax, it’s a huge deal. This is a tax of several *billion* dollars for most of them.

Very few universities are being taxed a billion. The wealthiest LAC-Williams-only has $3.6bil

At my Williams reunion in June, the President told the alumni society that the tax could cost Williams as much as $40 million per year. That was really operating money for the college.

Williams chooses to finance an incredibly expensive all-grant program. The college could splurge on whatever it wanted if it got rid of that.

What program is this?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

It was a huge deal for a number of schools. This move makes the NESCAC as well as schools like Swat and Pomona exempt where is was going to cost a few of them many millions of dollars per year. It just shows that it was nothing but revenge politics. Protecting Hillsdale was more import than any other reasoning. Notre Dame is taking it in the shorts on this one.

I think Hillsdale was already exempt because they don’t take federal money.

They were exempt from title IX compliance but not the endowment tax. They tried to write a carve out but it was rejected.

Ah, thanks for the clarification

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

For the schools subject to the tax, it’s a huge deal. This is a tax of several *billion* dollars for most of them.

Very few universities are being taxed a billion. The wealthiest LAC-Williams-only has $3.6bil

At my Williams reunion in June, the President told the alumni society that the tax could cost Williams as much as $40 million per year. That was really operating money for the college.

Williams chooses to finance an incredibly expensive all-grant program. The college could splurge on whatever it wanted if it got rid of that.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

It was a huge deal for a number of schools. This move makes the NESCAC as well as schools like Swat and Pomona exempt where is was going to cost a few of them many millions of dollars per year. It just shows that it was nothing but revenge politics. Protecting Hillsdale was more import than any other reasoning. Notre Dame is taking it in the shorts on this one.

I think Hillsdale was already exempt because they don’t take federal money.

They were exempt from title IX compliance but not the endowment tax. They tried to write a carve out but it was rejected.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

It was a huge deal for a number of schools. This move makes the NESCAC as well as schools like Swat and Pomona exempt where is was going to cost a few of them many millions of dollars per year. It just shows that it was nothing but revenge politics. Protecting Hillsdale was more import than any other reasoning. Notre Dame is taking it in the shorts on this one.

I think Hillsdale was already exempt because they don’t take federal money.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

For the schools subject to the tax, it’s a huge deal. This is a tax of several *billion* dollars for most of them.

No, it is not. An 8% tax on investment income (because it is not on the whole endowment, but on investment income only) is a billion dollars for exactly zero institutions. For Harvard it is maybe a bit over $300 million and it goes down quickly from there for other institutions. And that’s on an endowment over $50 billion and before they take steps to reduce their realized investment income. There are only four other institutions above the size threshold and in the 8% bracket.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

For the schools subject to the tax, it’s a huge deal. This is a tax of several *billion* dollars for most of them.

Very few universities are being taxed a billion. The wealthiest LAC-Williams-only has $3.6bil

At my Williams reunion in June, the President told the alumni society that the tax could cost Williams as much as $40 million per year. That was really operating money for the college.

Dartmouth cozied up to Trump and got nothing in return. Boo hoo

It was a big deal to my family. We chose a WASP school because of the financial aid. DS could have gone to our public flagship on a scholarship for a little less overall money. But the flagship, while a great option, is usually ranked between 150 and 200, and the WASP school seemed to have a lot of "value added." When Congress passed the original version of the bill, it certainly created a bit of anxiety. Were we going to have to dip into my retirement plan? If we couldn't afford the WASP, DS could transfer to the public flagship but would have lost the opportunity for the scholarship. In short, these things matter.

Side note: I feel bad for Dartmouth, which has a large endowment for its ~4,500 students and, in my mind, is more LAC than university.

Anonymous wrote:

Anonymous wrote:They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.

Wow, people made such a big deal out of nothing. Life goes on.

It was a huge deal for a number of schools. This move makes the NESCAC as well as schools like Swat and Pomona exempt where is was going to cost a few of them many millions of dollars per year. It just shows that it was nothing but revenge politics. Protecting Hillsdale was more import than any other reasoning. Notre Dame is taking it in the shorts on this one.