M E M O R A N D U M
To: Reporters and editors
Re: Yale announcement on student aid
Da: Monday, Jan. 14, 2008
Sen. Chuck Grassley, ranking member of the Finance Committee, with jurisdiction over tax policy, has a long-standing interest in tax-exempt policy. Last September, the committee held a hearing that focused in part on the size of college endowments, at Grassley’s urging. In December, Harvard University announced reduced tuition costs for families below certain income levels. Last week, Yale announced an increased pay-out of its endowment to increase student financial aid and
for other purposes. Today, Yale announced details of its student aid increase. Grassley made the following comment on today’s announcement.
"Students and parents are the winners with Yale announcing significant increases in financial aid. An increase of financial aid from $24 million to $80 million is real dollars and benefit. While increasing financial aid, Yale is trying to restrain overall college costs. I especially appreciate Yale’s online calculator for families to estimate the net costs of attending. Transparency is critical to encourage students and families to take advantage of opportunities. Yale’s action shows that despite some squawking, the sky won’t fall when universities increase the amount of money they spend from their endowments, and when they do, it can mean big help for families struggling to pay college costs. Spending more on financial aid might even help universities attract more donations from alumni and others.
"Harvard and Yale both have made big announcements in the last few weeks. Meanwhile, more than 60 other colleges and universities with endowments of at least $1 billion are making church mice sound loud by comparison. We need to hear from the presidents and boards of these colleges as well. Parents and students have a right to expect these universities with big endowments to end the hoarding and start the helping with skyrocketing tuition costs. Colleges are tax-exempt, and tax exemption helps endowments grow. I hope we hear more good news from other colleges and universities in the days ahead, but today, I congratulate Yale for its new policies."
Click here to view the Congressional Research Service Memo outlining college endowment size