How the Ivy League stays so rich: College endowments
Video credit: CNBC.com
College is expensive, but there is one place in higher education where there’s no shortage of money — endowments. There’s more than $616 billion worth of endowments assets in the U.S. Most of that endowment wealth lies with a few affluent schools, such as Harvard with its $39.2 billion.
Lawmakers are starting to question why tuition is still rising if some schools have billions of dollars. Most schools only spend about 5 percent of their endowment every year. The rest is invested to grow the endowment even larger. And that’s where things get complicated.
Universities with big endowments have a lot of power, and that power draws the eyes of both investors and activists. Investors look to endowments as inspiration for their strategies, and activists have gone after multimillion- and sometimes billion-dollar investments in things like fossil fuel companies, Puerto Rico debt and private prisons.
In 2017, Trump’s tax bill started to chip away at those universities’ tax-exempt status, adding a 1.4 percent tax on endowment income at schools with more than 500 students and $500,00 per student.
Article source: CNBC.com
When I wasn’t looking forward to being wealthy, and have my mind opened to learning the wealth game of my country, I wasn’t aware of certain information that justified the way certain industries and companies made their money. I did my fair share of criticism without hardcore evidence to justify it, but I wanted to stop looking and sounding dumb during a debate against someone (I wasn’t aware of) who was IN the game and had more intel than me. The moment I settled my ass down, humbled myself, and start seeking knowledge on how America’s business work, that’s when this stuff got more interesting to me than being constantly angry about it.
So one of my main questions was; if these colleges (Ivy League down tyo your local community college) have millions and billions of dollars worth of “endowments”, then what do they spend it on? And why can’t they use these funds to allow ALL motivated students to attend classes for free?
One of my biggest revelations was NOT the school justifying charging five to six figures for you to sit in a auditorium-like class room to listen to lectures all day for a rolled up piece of paper, but the average Jane and Joe who’s barely making ends meet; justify and defending why we SHOULD have expensive colleges. They even justify why tax dollars should be spent on foreign aid to other “all-lies” in the billions, but have an issue investing in systems to avoid homelessness or worse; illiteracy here at home. So in hindsight, these schools didn’t have to answer that question, because the majority of those who might not even have a college degree were willing to defend it like an illiterate bulldog.
Taking a wild guess; 340 million souls in this country. Cut that in half, you have 120 million. Take a quarter of that who want to attend college down to 74 million. A billion dollars for each student would add up to $74 billion annually. But we know it doesn’t take a billion for a 4, even an 8-year college term, so we say $74 million annually for all students earmarked for their education. That’s a little under $600 million a year for every student in America to go to college if they choose to earn an 8-year doctorate degree. That’s a little over a half a billion annually to invest in a potential doctor…times 74 million students. 74 million NEW DOCTORS.
Read that again.
I think the reason most “taxpayers” get spooked on paying for free education over spending trillions on the military is because of the indoctrination of war in the past 60 years and the propaganda sold to us through media, movies and commercials. Education and knowledge has not been the priority in America, therefore, politicians get away with speaking to their constituents in a “insult-of-your-intelligence” fifth grade level. Patriotism in the name of arms over professionalism of conducting international business on behalf of an alleged world superpower has taken over the competitiveness of the majority of the American people. So colleges are able to have billions in the bank in the name of “endowments” right in the face of the average American, investing millions in profitable investment stocks, bonds and other funds that delivers millions in annual dividend revenue, while charging you an arm and a leg just to smell the fresh paint of your child’s dorm room.
IF WE CAN THINK, THEN WE ARE RESPONSIBLE FOR HIGH COLLEGE TUITION COST.
We do not allow colleges to compete with each other. We have made going to Ivy League and major colleges a bragging right t o our co-workers and family m,embers instead of a real product that’s negotiable in the market place. We have been trained to look at our colleges as something we have to strive for them to see us, instead of the other way around. It’s proof of our priories when, in the 21st century, the Age of Information at your fingertips, that these colleges are still relevant. Before they even leave grade school, younger kids are starting their own businesses, hiring…HIRING college students, and questioning everything status quo based on them having access to research on certain topics they find valuable within MINUTES instead of years. These kids are proof that these college tuition days are numbered.
My final take on this college tuition gig is this; tests, NOT hundreds of thousands of dollars of student loans, but TESTS should be your tuition. Knowing how to exercise critical thinking, intellect of weighing the pros and cons of a key decision. Knowing and comprehending basic math skills, and reading. And knowing required skills based on your chosen profession is the NEW tuition. Knowledge is the new (IN)tuition. Therefore, instead of the dullest tool in the shed who can easily drop thousands of dollars to go to college (or their parents rather) but can’t even boil water to cook to save their life, you have a student who can articulate a life decision, and can be professional in the global marketplace representing the business intelligence of America, and can be the INTELLECTUAL ambassador of their respective alma mater. In other words; knowledge IS the new tuition.
In closing; I mentioned earlier that until I was opened to learn new information on college industry, I was ignorant on how the game worked. With the knowledge I did acquire over the years, I know see it from the point of view of the Harvards and Yales and Notre Dames of the world. As long as you have the parents, politicians, the public justify paying thousands of dollars of tuition and college loans to send their kids to theses institutions, I do not blame the Ivy Leagues, who are MORE than capable of providing free college tuition in the name of investing in our youth’s future, to continue charging an arm and a leg to a docile public.
So Charge em up! Heck, charge the torso while you’re at it. Keep on increasing tuition prices until the public decide to finally scream “uncle”, and free education for all, over spending 60 percent of the federal budget on bombing innocent men, women and children while paying bribe money to their blackmail victims…er…I meant “all-lies”…become the NEW political priority for voters. TF