I have said this before, but the rules for taking monies from your endowment is very very very strict. It is not an ATM.
You can’t just say - “we had a $400 million loss, so let’s take that from the endowment.”
What can be taken from the endowment is based on very very strict guidelines and is limited. Colleges have closed their doors for financial reasons and still had monies in their endowment.
Not what people want to hear - but that is the reality.
@L1LSwag I haven’t seen any news
Seems like we are heading into July.
Agree in usual times but these are not usual times. I am not sure why you expect that UMICH will keep on accepting students way way more… Have to target against very little International students acceptances. Yet the same old rules apply on Endowments ?
Has Michigan ever conducted online classes for the masses ? Have they ever ended semester on Thanksgiving ? Have they ever taken 7300 kids when they admit 7000 ? They wont be able to use Endowments as needed.
@panda2002 hopefully or they might announce the closure of the waiting list ?
I think they will keep the waitlist open. Things appear to be getting worse on the COVID front across much of the United States. Despite their best intentions and announced plans for the fall, Michigan and other colleges may be unable to have students on campus which could impact student enrollment.
Once again, I think everybody on this page who applied and are waitlisted knows that most likely they will not be accepted. However, we are all being optimistic and hoping we are one of the handful of students admitted from this point on.
Well thank you for stating the obvious. We’re back to the endowment talk? That’s what the students here waiting to come off the waitlist want to talk about. ?
Students that are waiting, please forgive me. But I’ll explain briefly again. There’s UNRESTRICTED endowment funds and then there’s expendable restricted funds. Unrestricted is unrestricted. And much of the “expendable restricted” funds can be spent on various operations of the university professor salaries, scholarships, etc. Read the endowment financial statement.
Having said all that, as I noted above, UMich can likely cover any 2020 losses with any combination of their yearly operating reserve, delaying projects and reducing costs.
Also, UMich just floated some bonds to refinance their debt and get some “extra cash.” UMich doesn’t have to even touch the endowment. And once Michigan Medicine and Football gets back to semi-normal, then those two very large revenue generators will produce once again.
yea like what sushi said, can we stop with the endowment talk?
since we’re (at least i am) really just here to check out / share any news on the waitlist
BU just closed their waitlist today…U-M might be soon
meant extremely unlikely on my last post
MODERATOR NOTE
Please be respectful on this thread. Snide remarks are uncalled for. Several posts edited.
@jmiin24 ahhh hope something happens soon
Hoping for the best for everyone here still hanging on. The pandemic apparently hasn’t gone away, and summer is not the reason for the decreased numbers we were seeing. (Quarantine was clearly a huge factor). The south is showing us that. So who knows if anyone will be on campus for very long. I hope we can all go forward and finally get to go to college at some point. It’s great that Umich has the big endowment, but I don’t think it will be the determining factor of this year’s (and maybe next year’s) college experience. Umich is a big school and it will be very complicated. Hang on because why not? We will know soon enough. Good luck!
Best of luck to all! Maybe next week will bring good news.
@Jimiin24 Just a note on Boston University (if that’s BU) they just need to move CGS from Spring entry to Fall and that’s 600 students so that gets their class to the targeted class of 3100. Northeastern is doing the same with Nu.in
If Brown they are talking about a glitch now
@sushiritto - I am not going to argue with you but I sat on the board of a small college 15 years ago and that college eventually closed. I was actually on the board when that college closed. The amounts we could take from the endowments was so small and the guidelines were so strict- it would not have saved the college. When the board voted to close that college, we still had monies in the endowment funds. Bottom line, you cannot cover your annual expenses and deficits with endowment monies unless those deficits are relatively small. I know that makes no sense but those were the rules.
One of the reasons the endowment argument is being made is because colleges have to try as much as possible to mitigate their deficits. Their might not be any ‘heads in the beds’ - with no or very limited students on campus and going online, colleges may have deficits they cannot overcome. Colleges make a huge markup on the dorms and the food, so they are nervous and wondering if one way to make up that deficit is to accept more students. In addition, some students might decide to defer if a college is going online. It is a dilemma.
Anyway good luck to all - stay safe.