Harvard And Other ‘Well Endowed’ Colleges Face Backlash For Tapping Tens Of Millions In Stimulus Funds

Several US colleges with multi-billion dollar endowments have been tapping into the massive coronavirus stimulus passed by Congress and signed into law by President Trump in January.

As part of the $2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES), $14 billion was set aside to support higher education institutions – ostensibly those without billions already in the bank.

Harvard, for example, which has a $40 billion endowment, will receive $8.7 million in federal aid. Harvard points out that  at least half of which has been mandated for emergency financial aid grants to students, which we would note that they can cover themselves.

Hilariously, Harvard’s Crimson points to the risk that their endowment could shrink due to market volatility, and that the University’s financial situation is “grave.” On the other hand – buried halfway through the article, Rutgers Business School professor John Longo points out that “it is conceivable that Harvard’s market neutral and long/short hedge funds actually delivered positive returns,” adding “If this is the case, it would materially soften the blow from the sharp drop in equities from around the world.”

Let’s look at which other financially sound universities stuck their hands in the cookie jar, courtesy of Twitter user @Oilfield_Ranndo:

CARES Act funds to Univ of Pennsylvania:

$9,907,683

Univ of Pennsylvania President Amy Gutman’s salary:

$3,908,031

Univ of Pennsylvania endowment:

$14,650,000,000

Univ of Pennsylvania undergrad tuition:

$60,042 up 3.93% from 2019-2020

— Oilfield Rando (@Oilfield_Rando) April 18, 2020

CARES Act funds to Baylor Univ:

$10,777,489

Baylor Univ President salary:

?????, previous one (Kenneth Starr, yes that Ken Starr) got a $4,946,996

Baylor endowment:

$1,310,000,000

Baylor tuition:

$64,880, up 50% from 2010

— Oilfield Rando (@Oilfield_Rando) April 18, 2020

CARES Act funds to Baylor Univ:

$10,777,489

Baylor Univ President salary:

?????, previous one (Kenneth Starr, yes that Ken Starr) got a $4,946,996

Baylor endowment:

$1,310,000,000

Baylor tuition:

$64,880, up 50% from 2010

— Oilfield Rando (@Oilfield_Rando) April 18, 2020

Nevermind the decade-plus these universities have been enjoying inflated tuition thanks to $1.6 trillion in student loans which may be about to default – which will undoubtedly stick taxpayers with an even larger bill.