dcsimg

College Endowments Plunge

By CityTownInfo.com Staff

February 20, 2009

Colleges and universities across the country are facing steep endowment losses, forcing schools to cut back on programs and scholarships and increase tuition.

The New York Times reports that Harvard University announced this week that it would slow expansion in a nearby Boston neighborhood as a result of a decline in the school's endowment. Officials expect the value of the university's endowment to drop by 30 percent this academic year. Additionally, the school announced a 3.5 percent increase in tuition, room, board and fees beginning this fall.

Virginia Commonwealth University is facing much the same situation. According to the Virginian-Pilot, the school lost 28 percent of its endowment's value within a year. The fund covers more than 200 scholarships, four endowed chairs, and travel and speaking fees for 20 notable lecturers.

"We've never seen anything like this," said Thomas Burke, executive director of the foundation.

Bloomberg.com reports that the Massachusetts Institute of Technology will freeze executive salary raises and cut back on hiring after the school's endowment fell about 25 percent. Susan Hockfield, president of the institution, announced that MIT will also raise tuition by 3.8 percent for the coming academic year. The school is planning to trim $50 million from its budget for fiscal year 2010.

"Achieving cuts on this scale requires more than simple belt-tightening," Hockfield said in the announcement. "It demands new ways of thinking about how we can work more effectively at lower cost."

A list of endowment losses at Big Ten institutions of higher learning appears on US News & World Report, ranging from Northwestern University's 14 percent drop to the University of Iowa's 29.35 percent loss.

According to a survey by the National Association of College and University Business Officers, endowment funds lost an average of 23 percent of their value within five months by the end of last November. The New York Times reports that all institutions, private and public, were affected by the downturn.

Nevertheless, school officials expressed confidence that in time, the endowments would rebound. "When you have this market fluctuation, 50 years from now, when you're looking at our returns, it will be a blip," said Alonzo Brandon, executive director of foundations at Old Dominion University, in the Virginian-Pilot. "A big blip, but a blip."

Career and Education News

Find a school near you

Our News Writers and Editors

CityTownInfo Writers and Editors

Follow CityTownInfo.com

Follow Us on Facebook
Follow Us on Twitter
Follow Us on Youtube

Career and College Resources on CityTownInfo

Real-World Career Reports

Career Stories from workers: daily activities, job tips, best/worst job aspects, training, etc.
Daily Career & Education News from our staff. We're an approved Google News provider!

Career References and Original Articles

Resource Center. A starting point for all CityTownInfo career and college resources.
Career Overviews of hundreds of careers: descriptions, salaries, forecasts, schools, more.
Best Careers Not Requiring Degrees: Good pay, job growth, low need for degrees.
Helpful Articles, many in "how-to" format; e.g., "How to Become a Chef".
Infographics covering employment and educational trends.

College Directories and Lists

These lists link to thousands of detailed school profiles.

Colleges by State. Nearly every college and trade school in the country.
Colleges Listed Alphabetically. About 7,000 colleges & trade schools, including online schools.
Colleges by Major City. Browse cities with multiple college options.
Online Colleges. Colleges with online degree programs.
Graduate Schools by State. Colleges offering graduate degree programs.
Graduate Schools by Major City. Find cities with multiple graduate school options.
Back to Top
SPEAK TO AN ADVISOR 1.844.285.6104