On Monday, September 8, 2008, Sen. Charless Grassley and Congressman Peter Welch will host a roundtable on enormous college endowments. Should colleges be required to make a minimum payout of their endowments each year? Under current tax law, college endowments are not required to pay out any endowment funds. This is in comparison to private foundations, which are required to pay out 5% each year.
I love school. And I love colleges. But when I hear that the combined endowments of top universities amount to more than the gross domestic product of a small country, I start to have a problem with this. It sounds like hoarding and I don't know what the hoarding is for. I would really love to know what the amount of the combined outstanding student loan debt is in this country and compare it to the endowment numbers.
On the other hand, there are real concerns regarding whether a required payout would break the higher education system, which certainly has been enormously beneficial and successful in this country.
I will be listening in on the roundtable. According to Sen. Grassley's site, the roundtable will be webstreamed at the Senate finance committee site: Endowment Roundtable. A lot of great background material is available at the site, also. Check it out and please let me know what you think!
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