12/18/2023 0 Comments Scripps college endowment![]() “That would be more encouraging if those schools were also using their endowment booms to enroll more students.” Harvard, Princeton, Yale, Stanford and a handful of others have used their endowment booms to increase financial aid for the students that they do enroll to the point where more than 90 percent of their students don’t borrow at all,” Eaton said. will continue to be the last bastion of debt-free higher education. While growing endowments are good news for their institutions, very few students actually benefit from the high returns, Eaton said. I think that societal trend is playing out in higher ed institutions as well as other institutions.” “Unfortunately that meant that less wealthy people also saw negative effects. “Wealthier people, especially during the pandemic, got even more wealthy,” Redd said. The growing wealth inequality among higher education institutions mirrors the wealth gap among American individuals, Redd said. The return gap between the largest endowments-worth $1 billion or more-and the smallest, worth $25 million or less, was 13 percentage points, according to the study. There’s just no way you can match what the elite institutions are doing.” “It’s really not a viable strategy for a college or university with a smaller endowment to grow its endowment. “Not only do they invest larger shares of their portfolio in private equity and hedge funds, they invest with hedge funds and private equity funds that tend to earn the highest rates of return,” Eaton said. IIE Report Shows Rebound in International Students in U.S.AAUP: Inflation underlines years of stagnant faculty pay.Report: State higher ed funding up 4.5% in 2021.About 13 percent of institutions said their endowment was valued at $50 million or less. One in 10 institutions said their endowment was worth between $501 million and $1 billion, and more than half-57 percent-of institutions reported an endowment between $51 million and $500 million. Together, those institutions captured 83.7 percent of the total assets reported by all 720 institutions in the study. Combined, these institutions boasted $821 billion in assets during fiscal year 2021, which began on July 1, 2020, and ended on June 30, 2021.Ībout 19 percent of institutions reported an endowment worth more than $1 billion, according to the study. The study-conducted annually by the National Association of College and University Business Officers and the Teachers Insurance and Annuity Association of America-surveyed 271 public colleges and universities and their affiliated foundations, as well as 442 private institutions and seven noncollegiate nonprofits. The average college endowment value increased by 35 percent, to $1.1 billion, and the median endowment size swelled to $200 million. College and university endowments posted sky-high returns in fiscal year 2021, with endowments of all sizes growing by at least 20 percent, according to a new study.
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