Cornell, MIT Scale Back Aid Even as Endowments Rise [View all]
Cornell, MIT Scale Back Aid Even as Endowments Rise
By Janet Lorin - 2012-08-09T04:01:00Z
Cornell University and Massachusetts Institute of Technology are scaling back financial assistance to students, adding to the burden of families already coping with climbing college costs.
Cornell, the Ivy League school based in Ithaca, New York, will force students whose families make more than $60,000 a year to seek other financing to pay for part of their studies starting in 2013. This fall, MIT is raising the amount low- income students contribute by 36 percent to $6,000 a year.
Students are being asked to pay more even as college endowments show double-digit growth as they recover from the 2008 financial crisis. With more students qualifying for aid, Cornell said its spending on financial support has jumped almost 20 percent a year on average since 2008, a pace it wonít sustain by drawing directly from the endowment. Cornell, which costs $60,000 a year, is good value for studentsí money, even with the changes to financial-aid, said Barbara Knuth, vice provost and dean of the graduate school.
Cornellís endowment grew 20 percent to $5.35 billion in the year ended June 30, 2011, according to the school. Still, itís down from a $6.1 billion peak in 2008.