<p>So, I was looking for endowment numbers, because somewhere Harvard's 29 Billion Dollar endowment came up. I found a comparison with the UK.</p>
<p>It turns out that Endowment per student at Princeton is the highest at:</p>
<p>812,500 Pounds or $1,590,631.25 PER STUDENT.</p>
<p>That is just insane.</p>
<p>what,exactly is an endowment?</p>
<p>I googled the definition but I don't see how it could possibly come out to exceed $1,000,000 per student...</p>
<p>The endowments have also increased since the report was released; using $13B and 6610 students (grad and undergrad), you get $1,966,717.10 per student.</p>
<p>You're right, that is an insane amount of money.</p>
<p>dude, those numbers are huge! no wonder it has the number 1 financial aid... :P</p>
<p>They shouldn't even charge tuition.</p>
<br>
<blockquote> <p>what,exactly is an endowment?<<</p> </blockquote>
<br>
<p>It is the money that the school holds in the form of investments. It's not a pile of cash. It's the value of the stocks, bonds, and real estate that it owns. The school doesn't spend the capital if it can be avoided. Instead it lives off the interest.</p>
<p>"They shouldn't even charge tuition."</p>
<p>Then they would run out of money. For an endowment to last for ever, they normally disburse 4-6% of its value.</p>
<p>Much of the endowment is now invested in highly illiquid investments. For example, HYP invest more in Private Equity and Hedge Funds than in highly marketable common stocks. 50 years ago Bonds made up much if not most of the portfolio. Private equity and hedge funds result in the endowments saying they earned 10, 15 or 20% per year over the last 5 years. Publicly traded common stocks haven't earned those returns consistently over the last 5 years. If the Universities were to spend down their endowment it would take years to liquidify their investments...much like an aircraft carrier making 180 degree turn.</p>
<p>Endowments give the university freedom from the vagaries of life like recessions and fund raising and give the donor a feeling of making a 'perpetual gift.' </p>
<p>Finally, donor intent trumps everything. The donors in most cases didn't give these amounts unrestricted. The university must honor donor intent (chaired professorships, financial aid, science buildings, whatever) or return the money!</p>
<p>Simba,</p>
<p>I doubt that they would run out of money as Pton spends about 4% and earns 10 to 15% per year. Further, each graduating class generates more donors for many years to come. You could give away the tuition and still have the endowment but a) you would conflict with the values of the school (giving free rides to the rich) b) violate the donor restrictions of the endowment and c) ruin American higher education as very few schools could match this ruinous philosophy.</p>
<p>Guys- Endowment doesn't mean much for undergrads. It's not like that money goes to you or can be used by you. And lots and lots of that $ are in nonliquid assests.</p>
<p>There was a discussion about quitting with tuition but they are not willing to do so. Look at it from this direction:</p>
<p>If you pay for something, be it 50000 or 10000 (depending on your situation, even 10000 can be huge), you commit yourself to it much more than if you don't have to.</p>
<p>In Germany, tuition is inexistent (well kinda was) and thousands were immatriculated just because they enjoyed pleasures as a cheaper transport fee or reduced entrance fees. Of course this is different at a private university but still, you could easily take yourself like 5 years instead of 4 to complete your BA.</p>
<p>Pton, unlike many other schools, will always enable you to attend it, heck they would finance a whole class if necessary, but they want that you contribute not only with your spirit but also by monetary means. </p>
<p>In the end (dunno whether that's a reason), it could come across as "cheap" if you say no or small tuition. It's like that sport car brand which sells a super sport car for 200000 $. However, nobody buys it, because you search for a mistake or a lack in quality.</p>
<p>Okay as someone said before... Princeton is not sitting on a pile of cash. Most of their 'warchest' can not be liquidated into spendable cash~~. There is no way they can finance repeatedly entire classes because they simply can not lose that much cash. This may not be true at Princeton, but at other Universities especially the Ivies, undergrad is a cash cow for grad students.</p>
<p>Took that a little to seriously. I know that the money is going to specific things, but that is a lot of stuff. It's amazing.</p>
<p>A lady who works at the Financial Aid Office told me that Princeton's endowment is 24B. I guess she lied to me. :(</p>
<p>The stats that are in that link are probably old.</p>
<p>The reason HYP can get so much on their dollar is because they can play by different rules when dealing with things like hedge funds...some of the business deals seem a little shady as well, even though it's all perfectly legit.</p>
<p>It was in the financial column of Newsweek once, but I can't find the exact week right now...</p>
<p>HYP Sets up their own hedge funds. THey don't use external managers. They hire their own and pay them freaking ridiculous amounts of money. THat's why they are able to consistently return 20+%. In 1990 Harvard only had $4 billion. Just goes to show--- Harvard's reign on top is fairly recent. I have a feeling inthe long run the traditional big 3 will switch up a bit.</p>
<p>"They shouldn't even charge tuition."</p>
<p>Actually I think they should charge more, since many students' families can well afford it. And then rebate the difference to those whose families can't. </p>
<p>About Harvard being the richest overall--it's not recent. Show me a year, however far back you care to look, when it wasn't richest ;)</p>
<p>Plus it wouldn't be fair to call Harvard the richest based on how much they have total, since they have far more alumni than say Princeton or Dartmouth. Now speaking of endowment per student, Princeton trumps all! :D</p>
<p>well, minus olin, that is.</p>