Those need-blind colleges you mentioned indeed happen to be the same one that just about every international applicant has their eye on. What is currently a 1% chance at those colleges is about to become notably even smaller.
Regarding endowments. I think the top colleges will be fine. Even if you take a 10% hit to your endowment, if you had $10 billion before this pandemic, now its “only” $9 billion. Still a lot of money.
Remember, endowments were not 100% invested in equities so they are not losing 25-30% in a down market. They should have been invested in a fairly conservative mix of financial assets.
What will be difficult is getting a lot of new money (i.e. large gifts) in the near future as the wealthy contributors will be less likely to fund these endowments as their own assets will have taken a hit.
Access to endowment funds–liquidity–may be affected.
If the economy goes into a recession, all almost all assets will be affected.
A loss of just 10% is unlikely–but we have to wait and see.
P.S. Also, to be unaffected by a 10% loss, an endowment would most likely have to be much larger than just $10 billion. For example: Northwestern University’s situation prior to the stock market downturn.
Harvard, Yale & Princeton all had endowment values above $20 billion prior to the recent stock market decline.
MIT, if I recall correctly, had about $13 billion.
Amherst has a much smaller endowment–probably around one ($1B) billion.
Back to the admissions windfall. Will domestic students see slightly increased acceptance rates? or perhaps too small to notice a change in the overall rate?
Anyone suspect overall app numbers at selective colleges will be down for high school class of 2021 (and accordingly lead to higher overall acceptance rates)?
My best guess is that full pay domestic students will see increased acceptance rates.
Without a doubt, we are already there. The longer it prolongs which is an unknown, we might end up in depression. Millions of jobs in the travel, entertainment, restaurant, auto, etc have been already lost.
Those students who have been already admitted at a very good in-state school will probably end up there over any higher-ranked OOS school or private even with some merit. The class of 2021 will be highly affected in the admissions process especially those expecting a good amount of merit from schools known to provide it. Having said that, if this sort of dies down by June/July, then the economy could bounce pretty strongly in the second half or first quarter of 2021. But being an election year, there are so many unknowns.
@Boomer1964 : Whether or not the current wave of covid-19 dies down by June or July, many experts warn of a possible second wave in the Fall. This adds to the feeling of uncertainty & lack of stability.
Additionally, there will be a sizable shift of workers to working remotely. This change adds to instability as commercial real estate will suffer.
The Presidential election is another factor to consider.
The US is fighting on 3 fronts: economy, politics & healthcare while Russia & China focus on expansion.
My point: Lots of unknowns, lots of changes & little direction domestically = instability.
Most schools are need blind in admissions. Most, like the vast vast majority. Very few schools take the trouble to weigh financial need in putting together acceptances, and when they give out financial aid packages, most awards are from the government. Merit money used to buy students most desired, and it’s been my observation that non need kids seem to get a lot of those.
These schools accept the students and let them decide if they can afford to go there.
There are very few schools that meet the financial need majority of their students , even as they define it. Some of those schools also assert that they are need blind in admissions, but a number of them are not, and do take need into consideration when making admissions decisions.
Schools have gone from need blind to need aware in the past, so it’s not in unexplored territory. It can certainly happen again for no global reason. So, given this turn o events, it can happen again.
The same advice to apply to schools that are affordable without school money, schools certain to accept you, is becoming more imperative
@Publisher Whatever the senate relief plan the come out with will not be enough. A $1200 check will only go towards a car payment and miscellaneous monthly bill. Imagine those with useless and ridiculous monthly health insurance? The snowball effect this shutdown is going to have is going to be unmeasurable and extremely impactful. Financial defaults will start to snowball. As it is retail has been already in trouble for years and restaurants have been on the positive retail ventures.
But as I said, if we can get a grip by June/July maybe we can come out of this. But I honestly think that the only way we can do this is by everyone staying home for a good month in order to suppress the impact this is having. Everyone needs to do their part even at the expense of a short term economic impact this is having.
The US Senate Relief Plan is expected to include some tax measures that will greatly benefit small businesses & accountants (increased work) in addition to the check for individuals.
My understanding is that loss carrybacks will be permitted for a 5 year period & larger losses will be allowed in certain situations.
Some high profile schools where full pay applicants may benefit: Georgetown University, NYU & Boston University as all have much smaller endowments than their reputations suggest.
Although over one year old, here are some endowment figures.
The NACUBO (National Association of College and University Business Officers) collects endowment data each year from about 774 colleges & universities–both private & public. The results are published in March each year.
About 107 colleges & universities reported endowments of one ($1Billion) billion or more last year.
Although the Univ. of Texas System reported an endowment of $31 billion, this is not included in the list below because it combines several different branches. Same for the Texas A&M system = $13.5 billion, and the Univ. of California system = $11 billion.
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Harvard–about $39 billion
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Yale–$30 billion
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Stanford–$28 billion
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Princeton–$26 billion
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MIT–$17 billion
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UPenn–$14 billion
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UMichigan–$12 billion
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Notre Dame–$11 billion
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Northwestern–$11 billion
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Columbia $11 billion
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Duke $8.6 billion
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Chicago–$8 billion
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Emory–$8 billion
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Cornell–$7 billion
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Rice–$6.5 billion
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Vanderbilt–$6 billion
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Johns Hopkins–$6 billion
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Dartmouth College–$6 billion
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USC–$6 billion
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Ohio State–$5 billion
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Penn State–$4.6 billion
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Univ. of Pittsburgh–$4.3 billion
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NYU–$4.3 billion
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Univ. of Minnesota–$4 billion
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Brown–$4 billion
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Michigan State–$3 billion
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CalTech–$3 billion
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Williams College–$2.9 billion
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Carnegie Mellon–$2.5 billion
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Boston College–$2.5 billion
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Univ. of Richmond–$2.5 billion
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Amherst College–$2.5 billion
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Boston University–$2.3 billion
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Pomona College–$2.3 billion
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Wellesley College–$2.2 billion
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Georgia Tech–$2 billion
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Grinnell College–$2 billion
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Swarthmore College–$2 billion
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Smith College–$1.9 billion
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Case Western Reserve–$1.87 billion
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Tufts–$1.87 billion
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Georgetown University–$1.8 billion
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GWU–$1.8 billion
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Bowdoin College–$1.7 billion
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SMU–$1.66 billion
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Wash & Lee–$1.67 billion
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Tulane–$1.4 billion
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Syracuse University–$1.4 billion
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Lehigh Univ.–$1.4 billion
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Wake Forest University–$1.38 billion
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Middlebury College–$1.12 billion
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Vassar College–$1.12 billion
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Brandeis–$1 billion
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Berry College–$1 billion
Although I have only listed about 57 of the 107 colleges, universities & systems reporting endowments of at least one billion dollars, this is a partial group of financially wealthy schools from an endowment perspective.
As we proceed through turbulent times financially, these schools are in little to no danger whatsoever of becoming financially distressed. Nevertheless, I expect many of the schools on this list to give an admissions boost to full pay applicants during the next admissions cycle.
Because the reports are based on information collected months before the recent stock market decline, we will have to wait for individual news reports or next year’s NACUBO report to understand the damage done.
^Would there be any point in dividing the endowment total by undergrad enrollment? Does that change the picture at all or no?
Endowment Per Student is very helpful.
The rest of the one billion plus endowments are:
WashUStL–$7.95 billion
Univ. of Virginia–$7 billion
Univ. of Washington–$2.935 billion
UCLA Foundation–$2.75 billion
Purdue–$2.625 billion
Indiana–$2.5 billion
Illinois–$2.354 billion
Rockefeller U.–$2.3 billion
UCal-Berkeley–$2 billion
Virginia Commonwealth Univ.–$2 billion
Univ. of Toronto–$2 billion
Univ. of Florida–$1.825 billion
Kansas University–$1.8 billion
Missouri–$1,74 billion
Liberty U.–$1.6 billion
Univ. of Iowa–$1.6 billion
Univ. of Alabama–$1.52 billion
Rutgers–$1.48 billion
Univ. of Delaware–$1.47 billion
Univ of Colorado–$$1.45 billion
Maryland–$1.44 billion
Nebraska–$1.44 billion
Kentucky–$1.41 billion
NC State–$1.4 billion
Tennessee–$1.35 billion
Univ. of Georgia–$1.344 billion
Baylor–$1.34 billion
Univ. of British Columbia–$1.34 billion
Baylor College of Medicine–$1.3 billion
McGill University–$1.28 billion
Trinity U. (Texas)–$1.28 billion
Univ. of Alberta–$1.28 billion
St. Louis Univ.–$1.253 billion
Univ. of Utah–$1.225 billion
Univ. of Alabama–$1.222 billion
Berea College–$1.219 billion
Univ. of Arkansas–$1.222 billion
Univ. of Tulsa–$1.114 billion
Iowa State–$1.1 billion
Loma Linda U.–$1.077 billion
Washington State–$1.068 billion
Northeastern–$1.055 billion
Univ. of Arizona–$1.038 billion
UC-Irvine–$1.029 billion
Santa Clara U.–$1.02 billion
Wesleyan Univ.–$1.005 billion
Close to one billion dollar endowments:
Univ. of Miami, Coll. of Wm.& Mary, Hamilton College, Colgate Univ. ($950 million), & Arizona State University (ASU) at $922 million.
This almost a full-pay-at-a-private-college-parent is pretty happy her S20 insisted on our state flagship. But I am more relieved that he isn’t going too far from home. He checked out one college which is a 4 hour plane ride away and I would not be thrilled about taking him there this August. Before I didn’t blink an eye at that idea. Now…glad he’ll be a 2 hour drive away.
Of the 774 institutions reporting their endowments for fiscal year 2019:
over $1 billion = 107 institutions = 78.3% of the total of $630.5 billion of endowment assets reported by all 774 institutions.
$500 million to $1 billion = 82 schools = 9.4% of total dollars reported
$250 million to $500 million = 86 schools = 4.9% of endowment assets reported
$100 milliom to $250 million =194 schools = 5% of all endowment assets reported
$50 million to $100 million = 152 schools = 1.8% of assets reported
over $25 million to $50 million = 93 schools = 0.6% of all assets reported.
$25 million and under = 60 schools = 0.2% of all assets reported.
Total endowment assets of all 774 institutions = $630,450,825,000.
Median Endowment among the 774 reporting institutions = $144, 400, 000. ($144 million).
Although the admission numbers might not change, many student may not be able to pick one of the more expensive schools if the tuition/fees go up and the financial aid does not.
@cypresspat why would flying to an Ivy with a large endowment be problematic? That school might take much better care of the students than a large state school. There’s more money per student and universities with more money will have a better chance of getting this right. Yes, it might cost more to attend but not for all families. Many of the elite schools meet need.