<p>They don’t respend their entire endowment every year!</p>
<p>[Financial</a> endowment - Wikipedia, the free encyclopedia](<a href=“http://en.wikipedia.org/wiki/Financial_endowment]Financial”>Financial endowment - Wikipedia)</p>
<p>“The total value of an institution’s investments is referred to as the institution’s endowment.”</p>
<p>Your Link: [U-M</a> Budget Update - University Budget - Understanding the Budget](<a href=“http://www.vpcomm.umich.edu/budget/understanding.html]U-M”>http://www.vpcomm.umich.edu/budget/understanding.html)</p>
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<li><p>The university could chose to implement a semester system where a spring-summer term would be impossible. They however still have to maintain the buildings, run them, pay professors, conduct administrative tasks, etc. If they’re taking less from IS students during this term they are still going to profit better than if they made it unavailable. If they charged the same amount for IS students as they did for OOS students for the spring-summer term, VERY few IS students would take one.</p></li>
<li><p>Since the need of the OOS students is higher, they should be getting more still. I don’t have any statistics on aid given out to IS vs OOS students so I can’t incorporate it.</p></li>
<li><p>If the university is going to offer the SGUS and EGL programs, they can’t complain that they have to accept less money from IS students. More undergrads are from IS, so many grad students from those programs will be IS. I know those are only for Engineering, but if there’s not a similar thing from the other colleges I still can’t tell what percentage are IS vs. OOS. I think they should take whoever they want for grad school though, and to my knowledge they do. If you have statistics that show that they favor instate students please show me. Or if you have legitimate reasons to believe they do, again, please show me.</p></li>
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<p>On selectivity, the lower the acceptance rate, the better people conceive the university is, and the stronger the applicant pool. Schools like Harvard do this. Even if this is not Michigan’s aim, it still helps them. Furthermore, even if the average test scores from IS students is lower than for OOS, there are still many who are at the same caliber and higher than the average OOS student, and if they had to pay the same amount to go to Michigan as they would to go to a comparable school, they would go to that comparable school instead.</p>