There you have it. This data on college endowments exposes how much money they have saved up and what they earn on it. But what about college pricing and endowment size? I mean, why does Harvard raise their tuition costs every year when they have $36 billion in their investment coffers (endowments)? That’s enough money to give every student that attends Harvard a free education for over 200 years!
Havard is just a big one, every college raises their tuition year after year, regardless of endowment size. And now we hear these “non-profit” colleges complaining that they may have to increase their tuition prices even more to offset the new Tax Cuts and Jobs Act hit on their endowments. The provision imposes an annual 1.4% tax on endowments at schools with at least 500 students and endowments of at least $500,000 or more per student.
Lawmakers have criticized that schools like Harvard are hoarding sizable non-taxable endowments that could be used to lower tuition costs or provide more financial aid for students. However, the colleges are all crying the blues, even though, according to the Chronicle of Higher Education, only 30 or so elite, private colleges will be affected.
Anyways, I’ll leave it to all of you to determine who the bad guys are in this scenario. Here is
NABUCO's full press release. You should read it. Most importantly, as a business owner you should realize that college is a business and it is always about the money. In order for you to come out the other end without getting ripped off, you need to put together a solid plan.