<p>Swarthmore reported strong fiscal year end endowment return of 24.6%. It's endowment was at an all-time high, having exceeded the previous high set in Fiscal 2007.</p>
<p>
[quote]
The market value of the endowment
increased $259.2 million over the
prior year to $1.508 billion at June
30, 2011, a year-end value exceeding
pre-crisis levels. The investment
return was 24.6 percent, which was
among the highest of all large
endowments.
[/quote]
</p>
<p>Endowment spending was towards the low end of the target range (3.8% of beginning endowment level) as the second of three years of budget cuts kicked in.</p>
<p>Still waiting on Pomona and Grinnell, but this strong endowment performance almost certainly solidifies Swarthmore's position as having the second highest per-student-endowment of all liberal arts colleges (behind Pomona).</p>
<p>Last year, Swarthmore spent an average of $80,994 per student. The average price paid per student (after financial aid) was $33,596. In cold dollars and cents like that, it’s easy to see why Swarthmore had a record number of applications.</p>
<p>I’m guessing that Swarthmore will jack prices next year about the same as this year: 3% to 4%.</p>
<p>Right, and there are students not on financial aid who pay in excess of $50,000 annually. That is a stretch for many who are not on financial aid. That’s why it would be wonderful if the endowment gains might be used to offset another hefty tuition increase.</p>
<p>I don’t think that’s likely. With the cost of providing the education at $80,000 per year, the current thinking across the elite tier of colleges and universities is to allow the sticker price to drift upwards so that full-pay customers offset the increasing number of discounted financial aid seats. Think of it in the same way as variable pricing of airline seats.</p>
<p>Full-pay customers get the short of end of the stick on this pricing model with the alternative being a school that offers merit aid discounting. Although, if you think about it, even a full-fare customer at Swarthmore is getting $29,000 a year in merit aid discount, relative to the cost of providing the service.</p>
<p>It’s almost impossible to pay full price at Swarthmore. My host’s family made over 200,000 a year, had only two children and still got financial aid.</p>
<p>As a family who has written checks to Swarthmore totaling more than $350,000 in the past 8 years, we can also testify that it is indeed quite possible to not qualify for need based financial aid and pay full tuition. As HMW says, not easy, but well worth it from what we can tell. And Idad would point out that our 2 kids have gotten an implicit subsidy of about $200,000 from the endowment and alumni fund over those 8 years.</p>
<p>I recently spent significant time with President Chopp and I can tell you that, despite the endowment gains, the effects of the recession are still weighing upon Swarthmore heavily. The move to “no loan” financial aid is also a factor in the pressure being felt. The College runs a very tight financial ship and will continue to do so. There’s not a lot of waste in the numbers quoted in this thread. Also, they are gearing up for another major capital campaign as several important academic buildings need rebuilding or major renovations.</p>
About 48% of Swarthmore students paid full price last year.</p>