Endowments per Student Down in 2016

How financially fit is your institution? One of the measures that Forbes has used in assessing the financial fitness of postsecondary institutions is endowment assets per FTE. This metric takes the value of endowment assets at the end of the year and divides it by the number of FTE’s. In applying this data to over 2,000 institutions, we discovered that endowment per FTE decreased a little over 2% from 2015 to 2016. However, there are wide variations in and among institutions.

 

Clearly Ivy League schools can distort this metric. Princeton for example has an endowment per student of over $2 million. Endowments also can ebb and flow based on market returns. But discounting for this, you can see how an eroding endowment combined with a rising head count could have implications on financial margin. Regent University for example has had endowment assets decline to five year lows while FTE has actually gone up in 2016. This has resulted in an endowment per FTE decline of 41% and 21% over the past two years.

 

 

We recently updated the Finance Interactive to the most recent data released from IPEDS. This Interactive analyzes a whole host of financial metrics including endowments. You can purchase individual Interactives or license them under our Higher Education Institution library. Individual Interactives are priced between $195 and $295. 

 

We have also created a free Interactive that allows you to see what the trailing five year endowment per student is by institution.  You can individually select sectors or institutions and can also manipulate the thresholds of endowments and students. 

Share This Story

Similar Posts

  • Student Earnings Experience a Sluggish Recovery

    College students are earning 8% less in 2013 than in 2008 per the most recent data published by the US Department of Education College Scorecard database. Students earned $31,382 in 2013 compared to $34,119 in 2008. The earnings were ostensibly flat from 2012 earnings of $31,528.   The College Scorecard…

  • Distance Learning Growth Continues

    In one of my favorite videos of my kid’s era, Grover from Sesame Street taught us the difference between near and far. I don’t think Grover had in mind today’s high tech tools and social media interaction when he taught us this principle. Distance Education continues to be a hot…

  • Lower Student Default Rates – Calm Before the Storm?

    Loan repayment rate data may trigger resurgence in default rates The most recent Federal Student Aid student default rate data indicates that the composite student default rates declined from 10.8% in 2015 to 10.1% in 2016, a decline of 6.5% and continuing a seven-year post-recession trend. In 2010, the default…

  • Private Room Average Hospital Stays up 10%

    While average length of stay has experienced a long-term decline, one component of average stay seems to be increasing – private rooms. The average stay in a private room increased nearly 10% based on an analysis of the 2016 Medicare Provider Analysis and Review (MedPAR) data set.    Even more…

  • The Gender Debt Disparity

    The Huffington Post recently posted a very interesting article on gender debt disparity. The article notes that women hold nearly two-thirds of all student debt – a whopping $833 billion dollars. The article postulates that women also take longer to pay off the debt because they earn less than men….

  • Powerball and Endowment Wealth per Student

    Large dollars tend to attract many of us. That is why the Powerball attracted so many people at the tidy sum of 1.3 billion. Yet the larger the number, the more people participate. Someone had the brilliant idea of distributing Powerball winnings to everyone in the country thinking it would…