$150M * 5% per year = $7.5M
200 students * $32,800 per year = $6.56M
If it costs $150 million to cover the tuition for 200 students, surely the interest from Yale's massive endowment could cover tuition for a much greater number of students?
200 students * $32,800 per year = $6.56M
If it costs $150 million to cover the tuition for 200 students, surely the interest from Yale's massive endowment could cover tuition for a much greater number of students?
A lot of endowments (most?) are earmarked for a specific purpose because that was the condition for receiving the charity money from the donator. And funding general tuition often doesn't meet the conditions. (Several articles explain this: https://www.google.com/search?q=ivy+league+endowments+earmar...)
And the alternative of donating "unrestricted" sometimes doesn't have the desired outcome the public wants to see. (E.g. spending on football scoreboard instead of financial aid for students. Previous comment about that: https://news.ycombinator.com/item?id=26377357 )
Still, why throw away 100+ million a year if you don't have to?
I’m no Marxist but my intuition is that the the total payoff of a system where every high school graduate who maintains halfway decent grades can attend State U Springfield, tuition and room and board covered, would exceed the costs?