endowment

But in 2022, when endowments declined at almost all of the 10 schools tracked by Markov, UChicago still ranked near the bottom.

In the past, these assets have been available mainly to institutional investors such as pension funds and endowments, as well as wealthy people.

Students attend on scholarships financed through family foundations, corporate sponsors, individual donors and a small endowment that covers about 10% of the school’s operating budget.

The One Big Beautiful Bill Act, which Congress passed in July, drastically raised the tax rate on the income that university endowments earn on their portfolios—from 1.4% to as high as 8%.

One commands that universities with endowments of more than $2 million per undergraduate “will not charge tuition for admitted students pursuing hard science programs,” although schools can still make rich kids pay.