Universities have long issued bonds to raise money, but the amount being issued has nearly doubled in recent years —and is increasing as government funding is paused.
Plaintiffs in a 2022 class-action lawsuit against 17 elite colleges who allege the schools colluded in determining financial aid packages are seeking $685 million in damages.
Larger endowments — which tend to invest more in private equity and venture capital — didn’t do as well as smaller ones that stuck to investment basics.
Sometimes schools will take private scholarship money and subtract that from its institutional grant. It’s known as scholarship displacement, and a handful of states are passing laws to end it.