Fascinating work by Lynne
Munson on "endowment hoarding."
While tuition for college continues to skyrocket, rising twice as fast as inflation, colleges are not investing their money - - they are hoarding it.
Tuition tuition, as compared to 1980, would be like charging $9 a gallon for gas or $15 a gallon for milk, according to a USA Today story last week.
And billion plus endowed colleges like Grinnell could probably eliminate tuition for their students, says Munson. Here's what she says: "Last year endowments increased 17.7% on average—those larger than a billion increased 18.4%. Yet, despite double-digit increases stretching back a decade or more —endowment spending is at a nearly all-time low of 4.2%--down from 5.1% in 1994, 6.5% in 1982, and 5.2% in 1975."
Check out her blog at: Center for College Affordability
Key here is colleges, like business, are not investing. Fascinating study. Your thoughts?
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