Saturday, April 08, 2017

Welfare for rich colleges

Thinking of donating to an Ivy League college? Consider this:
1. Ivy League payments and entitlements cost taxpayers $41.59 billion over a six-year period (FY2010-FY2015). This is equivalent to $120,000 in government monies, subsidies, & special tax treatment per undergraduate student, or $6.93 billion per year.

2. The Ivy League was the recipient of $25.73 billion worth of federal payments during this period: contracts ($1.37 billion), grants ($23.9 billion) and direct payments – student assistance ($460 million).

3. In monetary terms, the ‘government contracting’ business of the Ivy League ($25.27 billion – federal contracts and grants) exceeded their educational mission ($22 billion in student tuition) FY2010-FY2015.

4. The eight colleges of the Ivy League received more money ($4.31 billion) – on average – annually from the federal government than sixteen states: see report.

5. The Ivy League endowment funds (2015) exceeded $119 billion, which is equivalent to nearly $2 million per undergraduate student.
Even with all that money, they are easily bribed:
My book exposed a grubby secret of American higher education: that the rich buy their underachieving children’s way into elite universities with massive, tax-deductible donations. It reported that New Jersey real estate developer Charles Kushner had pledged $2.5m to Harvard University not long before his son Jared was admitted to the prestigious Ivy League school, which at the time accepted about one of every nine applicants. (Nowadays, it only takes one out of 20.) ...

The Harvard Number is the amount of money Harvard would want as a donation for accepting your kid as an undergraduate. It’s not the kind of information they post on their website. You have to ask the right people in the right manner.

He said he just found out that the current Harvard Number — assuming your kid’s application was “competitive” (i.e., there’s some chance your kid would get in even if you didn’t write a check) — is $5 million.

If your kid’s “not competitive,” then it is $10 million.

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