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> Sustaining one poor student who needs $45,000 a year in aid requires $1 million in endowment devoted to that purpose I don't see how this makes sense. Why do
by ipince 12y ago
> Sustaining one poor student who needs $45,000 a year in aid requires $1 million in endowment devoted to that purpose
I don't see how this makes sense. Why does it require over 5x of what you would expect by multiplying cost per year times number of years??
- samatman 12y agoThe endowment is invested, and the dividend supports the student. This quote assumes a 4.5% yearly return on investment. If the institution spent the endowment directly, they would shortly no longer have it.