Higher education becomes even more unequal, and a major proposal

by VanessaVaile

Bryan Alexander

Harvard building, photo by Ross M KarchnerAmerican higher education is becoming even more unequal, according to Moody’s.  Universities with the largest endowments now own a larger share of the entire sector’s wealth than previously.

Some data to consider:

The 10 richest universities in America hold nearly a third of the total wealth, in cash and investments, amassed by about 500 public and private institutions. The 40 richest hold almost two-thirds of the total wealth.

The Matthew Effect is in play:

These schools are drawing an outsized share of gifts to colleges and universities. Their assets grew at at a far faster rate from 2009 to 2014 than the portfolios of schools in the middle and bottom of the pack.

As a Moody’s lead puts it,

Schools on Moody’s top-40 list saw assets grow by 50% between fiscal 2009 and fiscal 2014…

“It’s really a tale of two college towns, if you will, or cities,” said Karen…

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