Harvard's Endowment Loses $8 Billion

CAMBRIDGE, Mass. — Harvard officials say the university's largest-in-the-nation endowment lost about 22 percent of its value, or $8 billion, in the four months since the end of the last fiscal year.

The endowment was worth $36.9 billion as of June 30.

Harvard will have to take a "hard look at hiring, staffing levels, and compensation," university President Drew Faust and Executive Vice President Edward Forst wrote in a letter informing deans of the losses.

They say the university should plan for a 30 percent drop in endowment value by the end of next June.

Forst tells The Harvard Crimson student newspaper that the 22 percent estimate may be conservative because some university money is handled by external managers that have yet to report figures.

Comments

[ScoobyDoo269]

And they still have 220 Billion left

Hey - it is THEIR GRADUATES THAT CAUSED THIS PROBLEM - Let them Suffer - Ooooo' poor Harvard!

[Doppler]

What an ignorant thing to say. I'm just shaking my head at the outpouring of stupidity in this thread.

[happyboston]

i DO feel sorry for the administrators at harvard, and those trying to get a job there.

[iLLogicaL]

I work at Harvard. We have a union here and we'll still receive our raises this year, per our contract. We didn't receive bonuses when the endowment had a 25% return a couple years ago, and we shouldn't be penalized when it takes a 25% hit. Our endowment still is probably bigger than the next four or five combined, so I hope the little violin doesn't screech too loudly.

[LBA7895]

JUST THINK WHAT AMERICANS' SOCIAL SECURITY ACCOUNTS WOULD LOOK LIKE IF BUSH HAD SUCCEEDED IN PROVATIZING SOCIAL SECURITY AFTER THE 2004 ELECTION.

WE NEED TO NEVER FORGET THIS ABOUT THE REPUBLICAN PARTY: THEY ARE THE AVOWED ENEMIES OF THE NEW DEAL SOCIAL NETS.

IF YOU DON'T BELIEVE ME, GOOGLE "STARVE THE BEAST" AND THEN UNDERSTAND THIS TAKING AMERICA TO THE BRINK OF BANKRUPTCY WAS I-N-T-E-N-­T-I-O-N-A-­L; SO THE ONLY WAY BACK TO SOLVENCY WOULD BE THE DISMANTLING OF NEW DEAL PROGRAMS.

IF MCCAIN HAD BEEN ELECTED, YOU WOULD HAVE SEEN THE DEATH OF MEDICARE, MEDICAID, THE MEDICARE PRESCRIPTION DRUG PROGRAM AND SOCIAL SECURITY PRIVATIZED.

IF YOU DON'T BELIEVE ME, GO LOOK AT THE MCCAIN PALIN WEBSITE AND READ THE FINE PRINT OF MCCAIN'S PROPOSAL TO GET RID OF DEFICITS - IT'S ALL THERE, USING THE CODE WORDS OF "LIMITING THE GROWTH OF MEDICARE, ETC"...

[Stretchumall]

Soo!!!!! All those geniuses at Haaarrrrverd didn't see the storm coming?


Some education huh!


Stretchumall

[RichManPoorMan2009]

are you kidding .........m­ost of the shysters that graduated from there are part of the people that created the Fed (which is NOT federal).

The little moustached man in Deutschland was right all along.

[avocats]

Yes, well, most working stiffs I know lost a greater percentage of their 401k value. Cry me a river.

[firelord5000]

Its okay Harvard, even with the 8 billion loss you still have the largest endowment in the US!

[Martha12]

Oh Harvard! How shocking! Wait 'till they see how much enrollment is down in the fall, and next year and so on. These institutions will have to change with the times like the rest of us. In other words, suck it up Harvard, you are NOT The exception to the rule.
Harvard, Yale etc. none of them are worth a 6 figure student loan and the money for student loans will not be there either.
These folks had better "mensa up" to save themselves.

[qgp]

1) Given that the admission rates are ~10% or so, I doubt the enrollment will drop much. Not that that matters too much, as tuition only covers 1/3 of the cost per student.

2) Average starting salary with an undergrad degree (no MBA, PhD etc) from one of Harvards competitors I'm familiar with is $65k, with > 2 offers on average (this years data). You decide whether that's worth the cost. Of course, some people actually study because they are fascinated by the subject.

If anything Harvard et al will come out of this stronger compared to public and less well funded private US institutions, so your joy may be misplaced. Given the role that higher education, science and technology will have to play in maintainin­g/restorin­g US competitiveness, I'm surprised how many people here are happy to cut off their nose to spite their face.

[LiberalBuzz]

Hard to feel sorry for Harvard. Granted a lot of smart people go there but a lot of them are responsible for the mess this country is in. Smarts don't mean a thing if they are not learning anything about social responsibility AND honesty.

[Doppler]

Both Bush and Obama are Harvard grads. What's the common thread you see? Exactly. There is none. Your point is nonsense.

[edgraham]

It's only money...

[KarateKid]

Let me get my violin out for Harvard. Squeeze the alums; they've used your name for years to get ahead.

[Jan pumper]

Harvard is a rip off, in my first 2 years we were most taught by teacher assistants, that's what you get for 50k a year, i am glad i am poor so my fee was supplemented, i have no regrets transferring out that pretentious dump, although Yale was no better. You pay for the name, id recommend a good state or city school, save yourself the money and the aggravation of some loser professors that think b/c they write a few op-ed post or books they are above humans.

[bulldog51c]

Yeah...eit­her you a) never attended Yale or b) failed to make the most of the opportunities there. Yale professors are among the most accessible (in terms of sponsored research, advising, office hours, and small seminars) and its undergraduate education considered a model in the Ivy League. "Paying for the name" is a common, but baseless, criticism.

[sizogee]

You're telling me that the education at Yale is 10x "better" that of a state school? If not, you're paying for the name. Stating that the argument is "baseless" is simply ridiculous. Some state schools offer degree programs better than the degree program offered at Ivy League schools at a fraction of the rate.

There's nothing wrong with top-tier Ivy League schools -- you are surrounded by smart people and have many opportunities to network and find good jobs. But hard work and intelligence translate into success in academia and the workplace, not the institute that provided the degree.

Lots of smart people graduate from Harvard / Yale. So do many idiots. But what you are paying for is the name / prestige, not the education.

[HUstudent]

Howard U's student-newspaper beats Harvard so hah!

[slaxx]

yup...ecom­ony's in the tubes...al­ums aren't giving

[VikingQuest]

I say we bail them out!

BTW, how many people here have figured out that these endowments and massive spending by colleges is why tuition rates have jumped more than health care or energy.