<p>rlmmail:</p>
<p>That’s the incorrect line of reasoning, I think. Top universities, by their nature, can never have enough - this is why so many aspects of higher ed resemble arms races. Does Harvard really need to start a capital campaign when it already has a $36 Billion dollar endowment? Does Yale really need to spend $500M on the creation of just two dormitories? </p>
<p>Similarly, without such restraints on athletics, ivies would pour considerably more money into its sports teams, and create mini-arms races there. </p>
<p>Schools always want more, and they’ll act predictably when restraints are lifted. Keeping this restraint in place lessens the arms race nature of admissions at ivies. At the same time, merit aid becomes a big drawing point for schools that traditionally could not compete with the very top ivies (i.e. UChicago, Wash U, etc.).</p>