They are well-endowed but financially flaccid.
"MIT, Cornell to reduce financial aid; Cite drain on endowments" by Janet Lorin |
Bloomberg News, August 10, 2012
NEW YORK — Cornell University and Massachusetts Institute of Technology
are scaling back financial assistance to students, adding to the burden
of families already coping with climbing college costs....
Students are being asked to pay more even as college endowments show
double-digit growth as they recover from the 2008 financial crisis....
I would certainly understand if you kids are wondering if there is even one institution in AmeriKa that hasn't been turned into a cash cow for certain people. That's your lesson for today.
Cornell’s endowment grew 20 percent to $5.35 billion in the year ended
June 30, 2011, according to the school. Still, it is down from a $6.1
billion peak in 2008....
Oh, the poor babies are only sitting on a little over $5 billion. How are your investment, average American? Do you even have them? Do you even have the fortune to have a job?
Oh, sorry, kids. I suppose that one is directed more to your parents.
Cornell drew $35 million from its endowment in the 2009-2010 year to
augment undergraduate financial aid....
MIT also cited its financial-aid program’s sustainability for the
changes, said Elizabeth Hicks, executive director of student financial
services. The school’s endowment totaled $9.9 billion as of June 2011,
an 18 percent increase from a year earlier, though down from $10.1
billion in 2008, according to the school.
WTF? Maybe it's me, kids, but I fail to see how they are in such trouble sitting on almost $10 billion dollars.
While MIT does not have a shortfall, it did not want to penalize
families who made just above the income cutoff. The new system offers a
‘‘smoother curve,’’ admissions dean Stuart Schmill said. Financial-aid
expenditures have been rising at MIT at a faster rate than tuition
increases, he said....
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Also see: Sunday Globe Special: Lip-Smacking Debt Collectors
Yeah, good thing government is helping you kids out.
UPDATE:
"Colleges boosting financial aid to students; Aim is to soften the crushing burden of tuition and debt" by Peter Schworm |
Globe Staff, August 18, 2012
Many colleges in the Boston area and beyond are boosting financial
aid this fall to help offset rising tuition costs, building on efforts
that have accelerated since the recession amid sharp criticism of
spiraling tuition and fees and crushing student debt....
Nationally, financial aid to undergraduates has risen sharply, from $21.9 billion in 2007 to almost $30 billion last year, as
colleges continue to vie for cost-conscious students and respond to the
growing need for assistance among hard-pressed families....
Over the past decade, tuition at public four-year colleges increased at
a rate 5.6 percent higher than inflation, substantially faster than the
previous two decades....
Even as they increase overall financial aid, some are requiring certain students to chip in more....
I'll give you two guesses as to which schools they cite.
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Someone else is needing Viagra because I'm down on the Globe.
