<p>Emeraldkity notes"Actually endowments pay for scholarships- tuition from other parents never pay to subsidize another student.
However at Ds school room and board costs included maintainance while students who lived off campus, didn’t include those fees."</p>
<p>Response: Schools would like you to think that all scholarships are paid by endowments. From what I have seen and heard from college officials, this simply isn’t always the case. Yes, with Harvard and schools with huge endowments, it might be true. However, for schools such as University of Richmond or Syracuse, it isn’t true. Richmond specifically noted that they increased tuition to pay for more scholarships. I saw what Syracuse did as well. CMU doesn’t have a huge endowment. Tuition has to pay for their scholarships. </p>
<p>Moreover, it certainly doesn’t cost a school 30,000++ a year to educate a kid. Somehow that money must be going somewhere other than for college expenses. Many schools publish charts showing their costs and income. A good portion, (usually 10%-30%) of their revenue goes towards scholarships. Since few schools spend all of their endownment income each year, the tuition must be paying for some of the scholarships.</p>