History of Cornell University - Affordability and Use of The Endowment

Affordability and Use of The Endowment

Since the 1970s, tuition at Cornell and other Ivy League schools has grown much faster than inflation. This trend coincided with the creation of Federally guaranteed student loan programs. At the same time, the endowments of these schools continue to grow due to gifts and successful investments. Critics called for universities to keep their tuition at affordable levels and to not hoard endowment earnings. As a result, in 2008, Cornell and other Ivy Schools decided to increase the spending of endowment earnings in order to subsidize tuition for low and middle income families, reducing the amount of debt that Cornell students will incur. Cornell also placed a priority to soliciting endowed scholarships for undergraduates. In fall 2007, Cornell had 1,863 undergraduates (14% of all undergraduates) receiving federal Pell Grants. Cornell's Pell Grant students roughly totals the combined Pell Grant recipients studying at Harvard, Princeton and Yale.