Andover/Exeter endowments...what does it really mean?

DAndrew
Sat, 07 Apr 2012 14:22:52 +0000

Exeter has the largest endowment both in terms of total endowment (it reached $1B once and is probably around $900 million now) and endowment per student. The total endowment of Andover’s is around $800 now but its endowment per student is probably ranked 4th or 5th, as the smaller schools - SPS and Groton have bigger endowment per student.

Size of endowment doesn’t always translate to tangible differences, from the students/families perspectives anyway. Schools can only use a certain percentage of their endowment each year for school operation (and that percentage can vary from school to school). It does indicate however schools with larger endowment are financially more stable (or stronger), and has the ability to offer more financial aid or more subsidies to full pay students, hire better teachers, etc. They are also in a better position to secure loans, issue bonds, etc. Just look at the colleges with largest endowments, or even families with more assets… it’s the same deal.