The school will earmark $800 million to move to need-blind admissions for undergraduates and $200 million to help graduate and professional students. The share of low-income students who receive Pell Grants was 16% last year, up from 6% in the 2013-14 school year.
That’s “exactly what I’d like to see schools do with the money,” said Brian Galle, a Georgetown University law professor who specializes in taxation and nonprofits.
The median return at U.S. colleges for the last fiscal year was 27% -- and 34% for endowments with more than $500 million of assets -- driven by robust gains on investments, including venture capital. While much of the gains may be unrealized, Galle said the results should embolden schools to be more aggressive when it comes to endowment spending.
“Over time the returns will be there to cover the expenditures,” he said. “If it turns out that some endowments get a little bit smaller, it’s not a reason to be alarmed.”
This article was provided by Bloomberg News.