- The gap between the nation’s wealthiest colleges and universities and those with the fewest resources and smallest endowments is growing, according to Moody’s.
- Inside Higher Ed reports 40 of the wealthiest 500 schools rated by Moody’s get 60% of all donations to that group.
- While the wealthiest schools enroll fewer low-income students and perhaps see less federal student aid money, they get major subsidies because of their tax-exempt status, especially concerning returns on their endowments, according to the article.
The wealth gap in higher education reflects the growing income inequality in this nation as a whole. Many things about our financial and tax system make it easier for the wealthy to grow their assets — benefits those with little more than work income can’t take advantage of. Inside Higher Ed explores the various possible methods of higher ed wealth redistribution, including limiting subsidies, increasing requirements to enroll low-income students, and adding taxes. While elite schools have their critics, however, they also have their protectors, ensuring they can continue representing U.S. higher education as among the best in the world.