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Wealthy College Endowments Keep Increasing

The endowments of the nation’s wealthiest universities . Stanford University reported this week that its endowment grew by 23 percent to a staggering $17.2 billion in the 2007 fiscal year. Stanford’s announcement follows those of Harvard and Yale, which reported gains of 23 percent and 28 percent respectively. Endowments have drawn the attention of the Senate Finance Committee lately, which has that colleges have been making. The panel is also considering a proposal, , that would require wealthy colleges and universities to spend a minimum percentage of their endowments each year. Predictably, college leaders and lobbyists have . But we at Higher Ed Watch believe that such a requirement could be used to significantly .

Sallie Mae Rejects Lowered Buyout Bid

The student-loan giant Sallie Mae this week from an investor group that had agreed to buy the company in April. That group, led by the private equity firm J.C. Flowers & Co., for $25.3 billion, but that agreement following following the passage of legislation cutting student lender subsidies. Instead, the buyout group offered $21 billion for the company, which would be $10 less per share than the original $60 per share offer. Despite Sallie Mae’s position, Higher Ed Watch and believe that a deal will eventually be struck.

Graduation Rates for Big-Time Sports Programs Remain Low

The graduation rates of mens college basketball, football, and baseball players , but continued to lag behind those of male athletes taking part in all other collegiate sports, according to released yesterday by the NCAA. Of athletes who entered college between 1997 and 2000, the NCAAs data shows that only 64 percent of basketball players, 67 percent of Division I-A football players, and 66 percent of baseball players had graduated within six years. Many of the most successful sports programs posted the lowest graduation rates. For example, in mens basketball, graduated within that time period. Comparatively, the University of Texas graduated 33 percent of its scholarship players, and Ohio State graduated 40 percent. The NCAA uses a to track athletes instead of using the federal graduation rate, which tracks only first-time, full-time students. The GSR does not count athletes that leave school “in good academic standing” but it does count athletes who transfer into an institution.

Ed Dept. Will Stop Program Aimed at Keeping Student Loan Default Rates Down

Citing its cost, the that it will discontinue a program that had been used to keep borrowers from defaulting on their student loans. Under the “Voluntary Flexible Agreement Program,” guarantors are rewarded for keeping borrowers out of default rather than for collecting on defaulted loans. When Congress created the program in 1998, it required that it be “cost neutral” to the government. Education Department officials argue that the program should be ended because it doesn’t meet that requirement. In response to the department’s announcement, Senators from the five states that have guarantors that participate in the program expressing their displeasure. Were concerned that the Department may terminate a model that has been successful in preventing students from defaulting on their student loans, they wrote. If these guarantors are forced to rise to the traditional guaranty agency model, its obvious that student loan default rates will rise.

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