Harvard University's Enormous Endowment
Harvard University is not only one of the most prestigious institutions of higher learning in the United States, but it is also the richest. In recent weeks, Harvard and other elite schools have faced criticism for their handling of student protests related to the conflict between Israel and Hamas. Some alumni have threatened to withdraw large donations and blacklist students for what they perceive as antisemitic statements.
This is not an empty threat. Ivy League colleges and universities, including Stanford and MIT, have amassed enormous endowments. Wealthy alumni have significant influence over university policies and even curricula. Harvard's endowment, which exceeds $50 billion, is the largest among U.S. universities. In fact, it is larger than the GDP of over 120 nations, including Tunisia, Bahrain, and Iceland.
Controversy Surrounding University Presidents and Donations
Amidst the ongoing conflict in Gaza and Israel, wealthy donors to prestigious U.S. universities are using their financial influence to shape the narrative on college campuses. University of Pennsylvania President Liz Magill recently resigned from her position after hedge fund manager Ross Stevens, an alumnus of the institution's Wharton business school, threatened to withdraw a $100 million donation. This came in response to Magill's congressional testimony on antisemitism in college campuses. Similarly, Harvard President Claudine Gay, who has also been at the center of controversy, will remain in office following support from the university's governing body and faculty members. However, tensions are expected to arise due to the ongoing war.
Harvard's Endowment in 2023
According to the latest financial report from its endowment, Harvard's endowment in fiscal year 2023 amounted to $50.7 billion, slightly down from the previous year's $50.9 billion. Harvard, based in Cambridge, Massachusetts, is the wealthiest university in the United States, as per the National Center for Education Statistics' rankings based on 2021 endowment data.
Undergraduates from families with annual incomes below $85,000 are fully funded by the University — they pay nothing — and expected contributions for families with annual incomes between $85,000 and $150,000 max out at ten percent of annual income.
Harvard tuition 2023
Such financial aid would certainly be needed by families with annual income of less than $150,000, given that tuition and fees for the current academic year stands at $79,450.
By comparison, the cost to attend Harvard in 1975 was about $5,350, according to Business Insider, underlining the spiraling tuition in higher education nationwide.
That means Harvard's tuition has increased much faster than inflation — that $5,350 would today amount to roughly $30,000 if it had tracked the change in the Consumer Price Index over the last half century. Harvard isn't alone in increasing tuition faster than inflation, with higher education in general outpacing the CPI.
Harvard president's salary
Serving as Harvard's president can be a lucrative job, with Gay earning $879,079 in 2021, when she was president-elect, according to the Harvard Crimson. Outgoing Harvard president Lawrence S. Bacow earned more than $1.3 million that year, it noted.
