News Brief: NYT op-ed says “Stop Universities from Hoarding Cash”

fleischerVictor Fleischer, a professor of law at the University of San Diego, questions why universities do not use the proceeds from their endowments for good causes such as reducing tuition costs for students instead of paying premium fees to fund managers.

Fleischer noted that Yale University paid $480 million in compensation to fund managers last year but only $170 for tuition assistance.

In an op-ed piece in the New York Times, Fleischer wrote:

As part of the reauthorization of the Higher Education Act expected later this year, Congress should require universities with endowments in excess of $100 million to spend at least 8 percent of the endowment each year. Universities could avoid this rule by shrinking assets to $99 million, but only by spending the endowment on educational purposes, which is exactly the goal. jQuery(document).ready(function($) { $.post('', {action: 'mts_view_count', id: '126'}); });

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