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Student body needs Brandeis' big budget
by Chongshen Chen
Op-Ed | 10/7/08
Posted online at 5:50 AM EST on 10/7/08
Why should the average Brandeis student be concerned about endowment spending?
Recently, The New York Times covered an article concerning the rising cost of tuition versus the spending of endowment money. Sen. Charles E. Grassley (R-Iowa) and Congressman Peter Welch have been continuing efforts to persuade universities to spend more of their endowment money in the face of rising tuition costs. During the round-table discussion, Welch stated that had the cost of a gallon of milk increased proportionally to college tuition since 1980, a gallon of milk would cost $15.
Brandeis' endowment, according to the 2007 National Association of College and University Business Officers Endowment Study, was valued at approximately $691 million in 2007. From that same study, the average annual spending rate for an endowment of this size was a tiny 4.4 percent that year. In that year, Brandeis offered approximately $10 million in grants and scholarships to the class of 2011, one 69th of our endowment.
Although the University has several active projects, such as an addition to the very large (and sometimes labyrinthine) science complex currently under construction, it could be doing more to help reduce the student loan burden. Considering the current financial crisis and the credit squeeze, a little more spending by the University to help students would definitely be beneficial.
In fact, student debt burdens have a significant effect on early career opportunities. A May 2007 study by Princeton University economics researchers showed that the more debt, the more likely that graduates will choose higher-salary jobs that may not benefit the "public interest." How can the idea prevail that one can follow his or her passions into a job in that field? Student debt burdens are drawing bright students toward majors that they believe will lead to profitable jobs. If the University were to contribute additional endowment money to mitigating student loan burdens, it would allow students to pursue whatever field they wished without fear of burning massive craters in their wallets.
Recently, The New York Times covered an article concerning the rising cost of tuition versus the spending of endowment money. Sen. Charles E. Grassley (R-Iowa) and Congressman Peter Welch have been continuing efforts to persuade universities to spend more of their endowment money in the face of rising tuition costs. During the round-table discussion, Welch stated that had the cost of a gallon of milk increased proportionally to college tuition since 1980, a gallon of milk would cost $15.
Brandeis' endowment, according to the 2007 National Association of College and University Business Officers Endowment Study, was valued at approximately $691 million in 2007. From that same study, the average annual spending rate for an endowment of this size was a tiny 4.4 percent that year. In that year, Brandeis offered approximately $10 million in grants and scholarships to the class of 2011, one 69th of our endowment.
Although the University has several active projects, such as an addition to the very large (and sometimes labyrinthine) science complex currently under construction, it could be doing more to help reduce the student loan burden. Considering the current financial crisis and the credit squeeze, a little more spending by the University to help students would definitely be beneficial.
In fact, student debt burdens have a significant effect on early career opportunities. A May 2007 study by Princeton University economics researchers showed that the more debt, the more likely that graduates will choose higher-salary jobs that may not benefit the "public interest." How can the idea prevail that one can follow his or her passions into a job in that field? Student debt burdens are drawing bright students toward majors that they believe will lead to profitable jobs. If the University were to contribute additional endowment money to mitigating student loan burdens, it would allow students to pursue whatever field they wished without fear of burning massive craters in their wallets.
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