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Wednesday, October 4, 2023

College funding under pressure

Date: Monday, March 3, 2008
Author: Whitney Kvasager, FT.com

Colleges and universities in the US and Canada are likely to funnel more of their $411bn (274bn, 207bn) in endowment assets into alternative investments in a hunt for the high returns that would cover spending increases.

Lawmakers are demanding that universities and colleges spend more of their burgeoning funds on student aid, saying endowments - and presidents' bonuses - are growing fatter while tuition costs are skyrocketing. They are threatening to impose a spending minimum, similar to foundations' annual required 5 per cent payout.