Endowments

Weekly Update: February 27

Happy Tuesday!

BIGGEST COLLEGE-RELATED NEWS OF THE WEEK

ATHENS COMMUNITY SHAKEN AFTER UNIVERSITY OF GEORGIA AND AUGUSTA UNIVERSITY STUDENT DEATHS

Two tragedies occurred over the past week in Athens, Georgia. On Wednesday, a UGA freshman died by suicide in his dorm room. The following day, a former UGA student who had transferred to Augusta University’s College of Nursing (also in Athens) was murdered while out for a morning jog. Fortunately, a suspect is in custody. It’s incredible to think about how this poor girl was attacked while just getting some exercise in broad daylight. Our thoughts and prayers are with these students’ families, friends, and the entire Athens community.

YALE UNIVERSITY REVERSES COURSE TO BEGIN REQUIRING STANDARDIZED TEST SCORES AGAIN

Yale announced the results of an internal study which demonstrated that standardized test scores are the best predictor of undergraduate student success on their campus. More importantly, these results have led Yale to join Dartmouth in requiring SAT or ACT scores during the upcoming application cycle.

UNIVERSITY OF MICHIGAN ADOPTS NEW TEST-OPTIONAL POLICY

Just as Yale decided to pivot back to test scores, University of Michigan formally adopted a test-optional policy that replaces their previous test-flexible policy. If you can’t keep these policies straight, you aren’t alone! The main difference seems to be that the test-flexible policy offered candidates the chance to substitute their AP or IB scores for SAT or ACT scores, if they chose to do so. Now, their AP or IB scores will be evaluated separately from their choice to apply with (or without) SAT or ACT scores. Half of the internet seemed to get this wrong - and understandably so, given how confusing the shift is. Many online posts incorrectly announced that Michigan was not going to consider AP or IB scores at all anymore. This is a good reminder to always confirm policy changes directly with the school!

SYRACUSE INCORPORATES MENTAL HEALTH INITIATIVE INTO BUSINESS CURRICULUM

Kudos to Syracuse for recognizing the importance of teaching future business professionals about the importance of mental health and wellness. As part of the Nass Mental Health Initiative, undergraduate and graduate students enrolled in the Whitman School of Management will now be better equipped to handle the challenges associated with their future careers. Through coursework, guest speakers, special seminars and more, students will learn to use tools to help manage stressors and also learn when to seek help.

“COURT STORMING” THRUST IN THE SPOTLIGHT AFTER DUKE PLAYER INJURED

Immediately after Duke’s surprising loss to Wake Forest this past weekend, player Kyle Filipowski was injured by enthusiastic Demon Deacon fans storming the court. As everyone watching the game on television saw, Duke coach Jon Scheyer was absolutely furious and has since called for the ACC to ban the practice. Wake coach Steve Forbes agrees, and has shared his own concerns about player safety.

BEST ARTICLES OF THE WEEK

So you know that NIL stands for “name, image, and likeness.” But what exactly does that mean in real-world terms? What’s the relevance? Why does everybody care so much? Whether you’re NIL-savvy or have never even heard the acronym before, check out this Washington Post article for a deep dive into all things NIL. As a word of caution, you might end up just as confused by the end of the piece as you were at the start - but maybe that’s the point?

Back in November, we wrote about the extent of the financial mismanagement at the University of Arizona. The New York Times has now explored the full impact of the situation, as well as the potential effects on various stakeholders. The article also delves into the long-term impacts felt by the greater community in the city of Tucson.

Lawmakers in the state of Massachusetts are pushing for a potential change to higher ed taxation that is both very significant and could set precedent for the rest of the country. In “Ending The Ivy League’s Tax Dodge,” The Lever provides background into a situation that has mostly flown under the radar of mainstream media so far. As the piece details, private colleges and universities don’t have to pay state or federal income taxes right now. This allows their endowments to build at a rapid rate, which in turn allows them to “give back” by providing generous financial aid packages, and in some cases, by conducting research.

But is this fair, when many of these schools have acceptance rates so low that the general population does not resasonably have any chance of benefiting from the financial aid packages? Or would the general population benefit more from simply taxing these schools on the value of their endowments? That’s what the state’s House Committee on Revenue will need to decide by April 30. A proposed bill hopes to levy a 2.5% annual tax on university endowments larger than $1 billion (on the full amount of the endowment, not just the income it generates).

The tax would then be allocated towards a fund called the Educational Opportunity for All Trust Fund, which would be used “exclusively for the purposes of subsidizing the cost of higher education, early education and child care for lower-income and middle-class residents of the commonwealth.” I can see both sides, but one thing is for sure: the outcome has the potential to have major long-term implications for financial aid at private colleges and universities nationwide.

Speaking of policy shift implications, The Dartmouth provided its readers with an inside look at some of the aftermath of the recent campus-level policy shift that reinstated the standardized testing requirement. Campus safety officers were present at a “tense” meeting between 50-70 students and President Sian Beilock, during which the students discussed their (negative) reactions to the recent decision. However, it is important to note that this group of students does not necessarily represent the entire 4,500 student body.

OFFICE HAPPENINGS

Where oh where are the Common Application ® essay prompts? We have now passed last year’s record-breaking late essay release date and our juniors are ready to get started! Some communication from the Common Application ® organization as to what to expect moving forward would be appreciated 😊

In other news, I’m continuing our first round of winter check-in meetings with juniors and helping them finalize some of their upcoming college visits. Virginia public school students have an upcoming day off on March 5 as a result of the presidential primary, and this is a great time for a college visit. After all, there are relatively few opportunities to see colleges in session without having to miss school!

One of the other topics we discuss at these check-in meetings is standardized testing progress, and we got some frustrating news last week - one of the high schools that a lot of our students attend has a prom date conflict with the April ACT. I absolutely hate when this happens (we see it more often with the May SAT), and it’s a great reminder for all students to look up the dates of any special end-of-year events in advance to check for standardized testing conflicts. Remember that there’s the April ACT, May SAT, May AP exams, the June SAT, and the June ACT!

Have a great week - fingers crossed that we have essay prompts on which to report in our next blog entry!