The letter is similar to one sent in 2008 by the Senate Finance Committee, which prompted some of the wealthiest colleges to shift their financial aid policies to grants, that aren’t required to be repaid, from loans. The committee had asked 136 colleges with endowments of $500 million or more a series of questions about the funds’ payouts and student aid.
Taxes, endowment spending and the rising cost of higher education came before the House subcommittee in an October hearing called by Roskam.
He said holding hearings, asking questions and sending the letters are efforts to learn more about the role of endowments.
“The cost of higher education is just staggering for many American families,” Roskam said. ‘Is there a relationship between the tax code and that cost? That’s one of the questions we want to explore.”