This little fun-fact was revealed in Yale president Richard Levin’s most-recent discussion of Yale’s finances in the wake of the endowment falling 25% (Harvard’s is down 30%).
And those $47,500 payments, shockingly, only make up 11% of the university’s annual operating budget, says Levin. The endowment pays 43% of it. [Is that really possible? What pays the rest?]
Of course, the big brand-name universities–Yale, Harvard, Princeton, et al–could raise their prices to $250,000 a year and a lot of people would still pay them. And the rest of the kids, the ones whose parents couldn’t afford a $1 million college education, could go for free.
So even if the top colleges really get hard up for money, they’ll be fine: Thanks to the (almost certainly overvalued) impact of their brands, they have pricing power no one else has.
Disclosure: Henry Blodget went to Yale. It cost about half as much then. And was still dizzylingly expensive.
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