<p>Michigan hqas always been a wealthy university. Back in 1990, with an endowment of $500 million, it was the 26th wealthiest university in the nation. Today, 15 years later, Michigan's endowment has just breached $5 billion, making it the 6th walthiest university in the nation. What makes Michigan so impressive is that the rate at which its endowment is growing is by far the largest of any major university. Over the last 15 years, Michigan's endowment has grown by 1,000%. Harvard is second with 600%. Most university endowments have grown by 200%-400% in that period of time. Last year was no different. Michigan's endowment grew by 19.1%, good for 4th place among major universities.</p>
<p>Michigan closed 2004 with an endowment of $4.25 billion. This 19.1% increase puts the University at over $5 billion, and given the significantly lower increase in the endowment funds of other major universities with similar endowments to ours (Cornell, Penn, Emory, Columbia and Wash. U.), we have solifified out place at #6 or #7 (Columbia may still be slightly higher, but Michigan may have overtaken them). At this stage, only the Big 5 are wealthier, and that will remain the case for some time.</p>
<p>What does this mean for the students? More financial aid? More opportunities? Sorry for seeming short-sighted, but I don't see how this is beneficial in any way to the undergraduate population which is filling the U-M coffers with tuition money.</p>
<p>I am not sure I understand your point Stanford_dude. Last time I checked, 70% of University of Michigan students pay an average of $12,000/year (room and board after aid is accounted for) to attend the University. The remaining 30% pay an average of $30,000 to attend the University. That's an average of $18,000/year for tuition and board for all undergrads. Can you tell me how much undergraduate students at comparable universities (Brown, Chicago, Columbia, Cornell, Duke, Emory, Northwestern, Notre Dame, Penn, Vanderbilt, Wash U. etc...) pay to attend their respective schools? </p>
<p>This said, Michigan's endowment helps students in several ways. It will helps Michigan in its quest to upgrade its facilities, dorms, etc... It helps the university hire better professors. And yes, it will, eventually, help Michigan give students more aid. Of course, all this is limited since a university can only use 5% of its endowment toward operation costs, but at least Michigan is doing well to keep up.</p>
<p>By the way, student tuition (and room and board) accounts for $400 million. Michigan's operation budge is well over $2 billion (not including the hospital). Michigan gets over $200 million from alums annually, and twice that from the government. I would not credit undergraduate tuition for filling the University coffers.</p>
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which is filling the U-M coffers with tuition money.
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<p>tuition money goes straight towards operating expenses, it doesn't go into some "coffer" and doesn't up the endowment. </p>
<p>Student tuition pays only part of the expenses associated with providing a U-M education, so it's not as though MI students are paying soem inflated sum and getting only a little value in return, with the University rolling around in the extra.</p>
<p>Alexandre has explained how the endowment helps students. I'll also point out that the present campaign has some specific goals for financial aid--they are soliciting money specifically to go towards grant aid for students (both to improve the need-based and expand the merit-based). That will help the individual students who are getting it, and it will help all students because Michigan will be able to enroll an even better student body.</p>
<p>Ahh. My apologies for sounding a bit edgy; I had a bad day. :( But from what you have said, it sounds like a very good thing. Better facilities and better professors are always a great addition! ^^</p>