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Harvard Has $31.7B Tax-Exempt Endowment—But Still Got $5.6M in Federal Student Loans and Grants

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posted on Apr, 30 2012 @ 06:56 PM
Harvard Has $31.7B Tax-Exempt Endowment—But Still Got $5.6M in Federal Student Loans and Grants
By Terence P. Jeffrey
April 30, 2012

Harvard's tax-exempt endowment got bigger by more than $4 Billion in 2011.

They Still took tuition and fee money from federal grants and student loans.

Yale and Princeton apparently did the same.

( - In fiscal year 2011, Harvard University’s tax-exempt endowment jumped in value by about $4.17 billion, rising from $27,557,404,000 to $31,728,080,000--but that did not stop Harvard from collecting tuition and fees derived from federal grants and student loans that U.S. taxpayers provided to Harvard undergraduates.

Other universities with major endowments--including Yale and Princeton (from which the author of this article graduated)--also saw massive increases in their endowments and they also benefited from their students paying tuition and fees with federal grants and loans.

Hmmm.........sounds "fishie"

In the 2009-2010 school year, according to the U.S. Department of Education, Harvard undergraduates received $4,093,140 in federal Pell Grants and $1,467,017 in federal student loans.

This total of $5,560,157 in grants and loans that federal taxpayers provided to Harvard undergraduates in the 2009-2010 school year equaled only about 0.13 percent of the $4.17 billion that Harvard’s endowment increased last year.

Had Harvard settled for an increase in its endowment of only $4,165,115,843--instead of $4,170,676,000--it could have covered the entire cost of all the federal loans and grants that the taxpayers provided to its students in the 2009-2010 school year.

Does Harvard = Corruption Incorporated ?

posted on Apr, 30 2012 @ 07:12 PM
Almost all colleges and universities are this way, even the Right leaning ones. In fact, they even have lobbies and PACs. This bubble costs taxpayers billions per year, It would be about equal to give the students the money directly and then all these kids wouldn't be starting life drowning in tens or hundreds of thousands of dollars in debt. More money flowing into the economy.

posted on Apr, 30 2012 @ 07:32 PM
If cutting the cost of student aid is the goal then the republicans should not have blocked legislation to crack down on "for profit" online schools like Remington, Walden, and Strayer. These schools consume twice as much student aid money per student than traditional schools. Their graduation rates are often under 10% and the degrees all too often aren't even recognized by anybody. The exact numbers escape me, but these schools consume about 25% of all federal aid, yet teach about 12% of students.

The only reason I can muster for defending such schools while trying to burden students with higher interest rates or reduced Pell grants would be that these schools have influence in D.C. with their fat wallets. Why put my my crooked golf buddy and campaign financier out of business when I can just put some more load on the poor students? That isn't just an idea either. These schools have an interesting list of board members....some democrats, I should add.

Cracking down on for profit schools could easily and obviously shave vast sums of federal money. Theoretically about 13%.

posted on Apr, 30 2012 @ 07:36 PM
reply to post by xuenchen

This happens in every industry with the major companies.
What I see this highlighting is the more money in endowments these universities receive the higher the tuition costs are. So the taxpayers as a whole are financing this ponzi scheme with the rise in tuition costs and the Federal government taking control of most student loans. If the federal government would stop giving money to these universities it would lower the tuition and allow many more to attend.

This will burst soon I am guessing when interest rates go up. Made worse when the interest rates for housing rise as well.

posted on Apr, 30 2012 @ 07:41 PM
reply to post by IncognitoGhostman

Yes. The student debt dollar amount just crossed 1 trillion dollars.
That is a deadly bubble.

posted on Apr, 30 2012 @ 07:43 PM
The profit model is the only way to go for the simple fact students default on their loans all the time compounded by they take time to pay back the schools themselves.

That profit is what covers new enrollments so that others get the same opportunity for an education as the one who came before them.

No one ever asks how much do those schools lose in revenue it's always those evil !@@#! and a quality education was never cheap and will never be cheap.

Are people so blinded by political idelogy they can't see what they are doing?

Create a educational system in American at walmart prices and you will end up with walmart educations.

It's that simple

Another thing liberals have is a bad habit of just throwing money at a problem thinking that is going to solve it never has never will and we will end up with a trillion dollar student loan program

Hey what's that? 1 trillion right now flooding useless people with degrees into markets that are overcrowded the quantity over quality stupidity.

When is enough enough?

And yes Harvard does equal corruption incorporated have you taken a good look at the current harvard graduate administration?
edit on 30-4-2012 by neo96 because: (no reason given)

posted on Apr, 30 2012 @ 07:49 PM
reply to post by neo96

Are you suggesting that Walden University is better than a public university (I'll go as far as to say ANY public university) because it costs more?

I've already suggested one way to cut costs significantly. Here's another. Stupid people ought not be financed on the public dime to fail. I'm a student. I'm in the top 10% of my class. I can tell you that half the students shouldn't be in college. The other half should get all the help this nation can offer.

posted on Apr, 30 2012 @ 08:01 PM
If they have this big of an endowment why are they even charging tuition in the first place?

Ron Paul and other people have been saying college will be the next bubble. And it's greed from places like Harvard is the reason why there will be one.

posted on Apr, 30 2012 @ 08:13 PM
College is the next bubble. For profit schools are part of the problem. Public schools operate on a de facto for profit model too. They drag in everybody who can recite the alphabet (not all public schools do this) because they know they'll be worth some federal money. Next thing you know new buildings are going up all over campus, professors don't get raises, the presidents salary doubles to several times what the state governor makes, and the football coaches salary is several times that. The next year yet more rif raf are enrolled. Then the academic standards start mysteriously dropping to try to retain the students who don't belong there.

Billions in student aid isn't the problem, it's a symptom of the problem. Fix the problems and the student aid problem will fix itself.

As for Harvard it is a fact that they could finance every student and their banked cash would still grow every year. Of course Harvard has the finest professors and contributes a lot to research.

Universities, by the way, contribute more to research than private business. Most innovations are pioneered by universities or the government itself, then industrialized for private interests by private research. I've never heard of a for profit university contributing anything to research.
edit on 30-4-2012 by Erectus because: Addition

posted on May, 1 2012 @ 05:28 AM
reply to post by neo96

And yes Harvard does equal corruption incorporated have you taken a good look at the current Harvard graduate administration?

I see you forgot to add that George "Mission Accomplished" Bush was also a Harvard grad. Harvard used to be a top notch school but over the last couple of decades it has degraded into a over priced babysitting service for politicians and the wealthy.

posted on May, 1 2012 @ 06:54 AM
reply to post by xuenchen

this thread does not seem like the normal topics; of which i read u posting.

federal college assistance is not the same as private monies!

if i gave 500k as an alumni or philanthropist and there are stipulations about it; the amount that is a combined total that my school of choice has is irrelevant. maybe they(school alumni associations or representatives of the schools) could ask people about possibly creating new scholarships, besides that, they are not in the wrong for being rich in a subjective sense for receiving money.

posted on May, 1 2012 @ 07:13 AM
reply to post by Ausar

That explains it.

Thank You.

Then I guess some might think of this as a "moral" or "ethic" nature.

I see your point.

posted on May, 1 2012 @ 07:19 AM
I just got done listening to a piece on NPR about universities having to re-brand themselves to attract students.

As in it has never been more obvious a $50,000/year philosophy degree is a bad idea.

One of the key take aways was since these schools are competing with each other and cost of tuition is a factor determining how "good" a school is none of them are willing to drop their tuition and risk falling down on the "good" ladder.

It's got to be one of the very few cases where competitive pricing means you charge more than your competitors.

Which means you're essentially selling imaginary goods like prestige and status.
edit on 1-5-2012 by thisguyrighthere because: (no reason given)

posted on May, 1 2012 @ 07:50 AM
Oh please, because everyone does it it's ok? We have millions of people being evicted from their homes and jobless but you're okay with this school taking millions of govt dollars while it sits on billions in the bank?
Bunch of disgusting hypocrites.

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