Colleges Consider Tuition Increases to Offset Endowment Losses

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October 30, 2008

Colleges Consider Tuition Increases to Offset Endowment Losses

As college endowments shrink due to losses in the stock market, many institutions are considering increasing tuition to levels higher than planned, reports Reuters.

Some colleges have seen their endowments decline by 15 percent or more. Tuition, however, has increased much faster than inflation in recent years — jumping 175 percent since 1992, the news agency reports.

Comments

I believe that colleges are driving themselves to a point where no one will want to support them.

What good purpose do colleges have for endowments other than providing tuition assistance and scholarships, and as a nest-egg for tough times? Well, these are tough times, and more people than ever will need some tuition assistance.

By raising tuition to compensate for shrinking endowments, colleges will only be hurting themselves. And you don’t need a degree to figure that out!

— Kevin Feldman Oct 30, 01:12 PM #
Will they lower tuition when the endowment gains?

— Leah Oct 30, 01:50 PM #
Colleges should really be a leader in using their endowments for the betterment of students in hard times. Their donors would see this very good use and donate even more to the respective colleges. It is a win – win if the colleges could see it that way!!

— Ferdinand Starbuck Oct 30, 02:42 PM #
Colleges are a joke when related to value of attracting students . Endowments should be used to help these kids succeed in life. Everyone is getting grredy.

— Gary Yazwa Oct 30, 05:31 PM #
Colleges charge more when the economy does well because students’ families have more available to pay for college costs. Now institutions want to charge more when the economy is slow because their portfolios are down? Large endowments should already be cause of embarrassment. Given current conditions it is time to reflect on the true mission and REDUCE tuition and fees. What is the mission? Learning and educating, or acquiring assets?
If this approach is taken I predict a backlash, and I hope it is led by the alumni. Let’s all call our alma maters.

— bsr Oct 31, 09:19 AM #

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