Looking for a ‘Well Endowed’ College?

Looking for a ‘Well Endowed’ College?

  • 128 US and Canadian Colleges have endowments over $500 Million
  • Harvard’s Endowment is the largest at over $27 Billion
  • High Endowment per Student enables Colleges to Expand Faculty and Campuses
  • Well Endowed Colleges are offsetting Tuition Costs with Endowments

If you happen to be looking for a ‘well endowed college’ come the fall of 2012, the number with endowments above $500 million is 128; considering only 120 colleges and universities accept fewer than 50% of the applicants, there are a number of well-endowed schools to attend.  The number boasting endowments of $1 billion or more is 62, having fallen from 76 after the 2008 crash. (If you wish to see the 2010 college endowment list, just go to the National Association of College and University Business Officers, http://www.nacubo.org, and click on 2010 Market Value of Endowment Assets, the most recent study available).  Harvard at $27.5 billion; Yale, $16.6; Princeton, $15.8; and Stanford, $13.8 head the list. However, even number 49, Grinnell College, whose $1.2 billion endowment fund is in the capable hands of Warren Buffett, the 2nd wealthiest man in the world, have huge financial muscle.

Though the value of these endowments is impressive, probably a more meaningful figure to consider is the amount of endowment a school has per student. The list of the top 10 schools with the highest per student endowments still contains the select four: Princeton, Yale, Harvard and Stanford; it then rounds out with Grinnell College, Amherst, MIT, Swarthmore, Pomona College, and Franklin Olin School of Engineering, which features free tuition and a faculty without tenure. Amherst, Grinnell, Pomona, and Swarthmore are private, small liberal arts undergraduate-only schools. Their endowments give them the flexibility to add a department, expand their campuses, or attract elite faculty members.

Until the crash of 2008, most of these endowments were growing at a very healthy clip; they had increased, on average, over 17% per annum over the previous five years. Yale University, alone, under the leadership of David Swensen, an institutional investor, an erstwhile legend, had had a 20-year annual average growth rate of 16%. Then, during 2008-2009, Yale’s endowment plummeted from just under $23 billion to around $16 billion.

Prior to the crash, however, the wealth of these endowments attracted the attention of Congress (rarely a good thing). Congress wanted these colleges to spend at least 5% of their endowments, annually, to make attendance more affordable for those less well-endowed students. Private foundation endowments, after all, had a 5% spending requirement: why not university endowments?  A Congressional review discovered that most of the schools with annual pre-crash endowment returns of 17% spent a paltry 4% per annum. If the colleges in the billion dollar endowment club spent a full 5%, this would translate into $1.5 billion extra that could be used, among many areas, on tuition relief.  

Consequently, the top two dozen endowed universities and colleges, including Harvard, Princeton, Yale, Cornell, and Stanford were advised to begin using their generous endowments for tuition relief.

  • Cornell began replacing loans with grants for undergraduate students with household incomes (HHI) below $75,000.  
  • Stanford eliminated tuition completely for students with HHI below $100,000.
  • Dartmouth & MIT eliminated tuition for students with HHI below $75,000
  • Harvard implemented a descending total payment scale for families with HHI below $180,000; between $120,000 and 180,000, only 10% of their total income goes to Harvard. The amount continues to decline till, below $60,000, the family pays no tuition.
  • Yale implemented a similar program to Harvard’s, except that the 10% contribution will include families with HHI below $200,000.

Reducing the onerous debt most students who attend highly selective private schools are saddled with is a good use of endowments. Yet, another advantage of attending a well-endowed school is it provides a sense of security for the school’s financial future -something Antioch College alumni can’t say. Additionally, endowments provide resources to keep the facilities maintained, and the faculty of the highest quality. It’s good to share the wealth; at least, possibly, 5% of it. 

자산이 풍부한 대학을 찾아보자

  • 50 이상의 자산이 있는 대학 : 미국과 캐나다의 128 대학
  • $27 Billion 넘는 자산을 가진 Harvard
  • 학생 일인당 자산이 높은 대학의 높은 발전가능성        
  • 풍부한 자산의 대학의 등록금 기여도

 

여러분이 자산이 풍부한 대학을 찾는다면, 2012 가을을 기준으로 $500 Million 넘는 자산의 대학 수는 128이다; 50%이하의 응시생을 받는 대학이 120 뿐인 상황에서 자산이 많은 대학을 찾는 것이 유익하다.  $1 billion 넘는 자산을 자랑하는 대학은 62개교인데, 2008 76개교에서 숫자가 줄었다 (자세히 알고 싶다면, National Association of College and University Business Officers, http://www.nacubo.org에서 ‘2010 Market Value of Endowment assets’ 클릭하면 된다).  Harvard $27.5 billion; Yale, $16.6; Princeton, $15.8; Stanford, $13.8 순서이다한편, 49위에 있는 Grinnell college $1.2 billion으로 세계 2위의 부자인 warren Buffett 기부이다.

자산액도 중요하지만, 학생당 자산을 고려하는 것이 의미있다학생당 자산의 10 순서는 Princeton, Yale, Harvard, Stanford이며, 다음 순서는 Grinnell college, Amherst, MIT, Swarthmore, Pomona College, Franklin Olin School of Engineering(등록금 무료에 교수는 평생고용제 없음)이다.  Amherst, Grinnell, Pomona, Swarthmore대학들은 사립이며 작은 인문대학으로 학부만 있다 대학들은 막대한 자산으로 학과증설, 캠퍼스 확장, 엘리트 교수영입에 힘쓰고 있다.

2008년까지만 해도 대학들의 자산은 증식되고 있었다지난 5년간 평균 17% 증식을 보였다.  Yale대학은 대학투자자인 David Swensen 리더쉽  아래에서 지금까지 20 동안 년평균 16% 증식을 보였다그러나 2008-2009년에는 $23billion에서 $16 billion으로 급락하였다.

급락하기전, 대학들의 자산은 국회에서도 관심을 가졌다국회는 대학들이 년간 최소 5% 자산을 사용하여 저소득층의 학생들이 혜택을 받도록 했다그래서 사립대학들이 5% 사용하도록 요구했다국회 보고에 의하면, 자산의 17% 증식에도 불구하고, 겨우 연간 4%만을 사용하고 있었다.  Billion dollar 대학들이 연간 5% 사용한다면, 1.5 billion 사용하는 것이고 이돈은 등록금 혜택으로 이어질 것이다.

결과적으로 24 자산의 대학들 (Harvard, Princeton, Yale, Cornell, Stanford 등등) 학생들에게 등록금 삭감의 혜택을 주게되었다.

  • Cornell 학생대출을 HHI (household incomes) $75,000이하의 가정의 학생에게 그랜트를 주었다.
  • Stanford HHI $100,000 가정의 학생에게 등록금을 면제해 주었다.
  • Dartmouth & MIT에서는 HHI $75,000 가정의 학생의 등록금을 면제해 주었다.
  • Harvard에서는 HHI $180,000이하의 가정에 차등적으로 등록금을 삭감하였다; $120,000~180,000 가정에는 10% 등록금만 부가하였다.  $60,000이하의 가정에는 등록금을 면제하였다.
  • Yale역시 하버드와 유사하다.  $200,000이하의 가정은 10%만의 등록금이 부가되었다.

최고의 명문대학에 빚의 부담을 안고 다니지 않게 것은 좋은 점이다 다른 혜택은 많은 자산의 대학들은 학교의 좋은 재정상태에 안정감을 가질 있다 (Antioch College대학 졸업생은 흉내낼 없는 ).   또한 대학들의 자산은 좋은 시설을 확충하고 교수의 질을 높일 있다부를 나누는 것은 좋은 것이다; 적어도 5%이긴 하지만.