Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How come no one has mentioned that swarthmore is $400m in debt before? That’s substantial!

but they have an almost 3 billion endowment. debt isn't always bad. these colleges dont pay cash for new construction projects.

think there may be more nuance here.

also, they're out of trump's crosshairs. Chicago is not

Agreed. The numbers sound big and misleading; issuing bonds is not a sign of financial instability—on the contrary, the ability to borrow at a low rate over a long period is evidence of confidence in the institution.

The thing that caught my eye, as someone who works at a peer institution, is Chicago’s running an operating budget deficit for 14 years straight. That’s a HUGE red flag for financial mismanagement and presumably is why they have to takedraconian action now. My institution ran a deficit once in the last decade and took significant action the following year to ensure it did not happen again.

Any thoughts on Middlebury's 15 consecutive years of budget deficits?

Middlebury slashes budget by over $10 million, imposes partial hiring freeze - The Middlebury Campus https://share.google/BZL2jfezgEn7CZNON

Anonymous wrote:Endowment funds half of Swarthmore budget. https://www.inquirer.com/education/swarthmore-college-three-month-budget-20250523.html

I believe that’s true for all the top LACs, not just Swarthmore. It’s a different financial model than the universities. Not a problem per se, if the endowment is big

Anonymous wrote:Endowment funds half of Swarthmore budget. https://www.inquirer.com/education/swarthmore-college-three-month-budget-20250523.html

Sounds like it’s in a particularly precarious position. Id look elsewhere.

Endowment funds half of Swarthmore budget. https://www.inquirer.com/education/swarthmore-college-three-month-budget-20250523.html

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most of these so called elite schools were run by academics with little or no financial acumen. Bloated administrative staff, high salaries and building sprees arm race.

This is probably the best assessment

I am not so sure. Two of my former bosses at State's Office of Foreign Assistance Resources are now head CFO/VP of Finance at Swarthmore and Georgetown. They also were at OMB. Hardly financial novices. Both are well respected.

Wow. I did not know that Swat was in financial trouble. If it can happen to them...

Anonymous wrote:

Anonymous wrote:Most of these so called elite schools were run by academics with little or no financial acumen. Bloated administrative staff, high salaries and building sprees arm race.

This is probably the best assessment

I am not so sure. Two of my former bosses at State's Office of Foreign Assistance Resources are now head CFO/VP of Finance at Swarthmore and Georgetown. They also were at OMB. Hardly financial novices. Both are well respected.

This is one of the reasons by DC (well really his parents who supported his decision) applied ED to Northeastern over BU. Northeastern has half the level of debt as BU.

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]UChicago, NYU, USC and Swarthmore mentioned in this article.

Any others to be worried about?[/quote]
The article is silly to mention Swat, given it has an endowment per student 3x or more than any other schools mentioned. Having said that, Swat’s spending well a hundred million on geothermal - instead of new dorms - so non-accommodation students don’t get single rooms until senior year is another example of misplaced financial priorities.[/quote]
They have a carbon goal that the student body agrees with. It is literally only a misplaced priority if you’re an annoying conservative who can’t get over that some people want to take action against climate change.[/quote]
Not according to every student I talked to who wished that they got a single before senior year![/quote]


And I think the point is that Swat has the cash to do both…but chooses not to.

[quote=Anonymous][quote=Anonymous][quote=Anonymous]UChicago, NYU, USC and Swarthmore mentioned in this article.

Any others to be worried about?[/quote]
The article is silly to mention Swat, given it has an endowment per student 3x or more than any other schools mentioned. Having said that, Swat’s spending well a hundred million on geothermal - instead of new dorms - so non-accommodation students don’t get single rooms until senior year is another example of misplaced financial priorities.[/quote]
They have a carbon goal that the student body agrees with. It is literally only a misplaced priority if you’re an annoying conservative who can’t get over that some people want to take action against climate change.[/quote]
Not according to every student I talked to who wished that they got a single before senior year!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How come no one has mentioned that swarthmore is $400m in debt before? That’s substantial!

but they have an almost 3 billion endowment. debt isn't always bad. these colleges dont pay cash for new construction projects.

think there may be more nuance here.

also, they're out of trump's crosshairs. Chicago is not

Agreed. The numbers sound big and misleading; issuing bonds is not a sign of financial instability—on the contrary, the ability to borrow at a low rate over a long period is evidence of confidence in the institution.

I agree. Their bond debt is about 15% of their endowment. That’s a good ratio.

It’s like being a middle class family with an affordable, low interest rate mortgage who maxes out their 401k in a strong stock market instead of paying down their mortgage. You would not say they’re in financial trouble but, instead, are making good financial choices.

[quote=Anonymous][quote=Anonymous]UChicago, NYU, USC and Swarthmore mentioned in this article.

Any others to be worried about?[/quote]
The article is silly to mention Swat, given it has an endowment per student 3x or more than any other schools mentioned. Having said that, Swat’s spending well a hundred million on geothermal - instead of new dorms - so non-accommodation students don’t get single rooms until senior year is another example of misplaced financial priorities.[/quote]
They have a carbon goal that the student body agrees with. It is literally only a misplaced priority if you’re an annoying conservative who can’t get over that some people want to take action against climate change.

Anonymous wrote:

Anonymous wrote:How come no one has mentioned that swarthmore is $400m in debt before? That’s substantial!

but they have an almost 3 billion endowment. debt isn't always bad. these colleges dont pay cash for new construction projects.

think there may be more nuance here.

also, they're out of trump's crosshairs. Chicago is not

Agreed. The numbers sound big and misleading; issuing bonds is not a sign of financial instability—on the contrary, the ability to borrow at a low rate over a long period is evidence of confidence in the institution.

The thing that caught my eye, as someone who works at a peer institution, is Chicago’s running an operating budget deficit for 14 years straight. That’s a HUGE red flag for financial mismanagement and presumably is why they have to takedraconian action now. My institution ran a deficit once in the last decade and took significant action the following year to ensure it did not happen again.

Anonymous wrote:UChicago, NYU, USC and Swarthmore mentioned in this article.

Any others to be worried about?

The article is silly to mention Swat, given it has an endowment per student 3x or more than any other schools mentioned. Having said that, Swat’s spending well a hundred million on geothermal - instead of new dorms - so non-accommodation students don’t get single rooms until senior year is another example of misplaced financial priorities.

Anonymous wrote:UChicago, NYU, USC and Swarthmore mentioned in this article.

Any others to be worried about?

Certainly not Middlebury!

Anonymous wrote:Most of these so called elite schools were run by academics with little or no financial acumen. Bloated administrative staff, high salaries and building sprees arm race.

This is probably the best assessment