QuickTake: University Endowments Under Fire

The video discusses the role and growth of university endowments, highlighting Harvard's $35 billion endowment. It addresses criticisms about whether these funds sufficiently aid students amid rising educational debt. The video also covers government actions, including President Trump's push for colleges to reduce tuition costs and Congressman Tom Reed's proposed legislation for universities with large endowments. It explores how endowments have grown through aggressive investment strategies and the potential tax implications of these funds. Finally, it notes changes in financial aid, with some schools replacing student loans with grants.

What is a common criticism of university endowments like Harvard's?

• They focus too much on international students.

• They are not doing enough to alleviate student debt.

• They invest too heavily in technology stocks.

• They are too small to make a difference.

What legislative action does Congressman Tom Reed propose regarding university endowments?

• Eliminating endowments for private universities.

• Increasing taxes on university endowments.

• Forcing universities to spend more on middle-income students.

• Reducing the size of endowments.

What investment strategy change has occurred in university endowments since 1985?

• Decreased investment in US equities.

• Focus on short-term investments.

• Shift towards technology stocks.

• Increased investment in US equities.

What is one potential fiscal impact of taxing university endowments?

• It could lead to more student loans.

• It could generate $16 billion in revenue.

• It would increase student tuition fees.

• It would decrease university donations.

How have some of the nation's richest schools changed their financial aid packages?

• By increasing student loans.

• By reducing the number of scholarships.

• By focusing aid on international students.

• By replacing student loans with grants.