U.S. Rep. Tom Reed (R-NY) says colleges with large endowments should funnel some of those funds into student financial aid.
Reed’s plan calls for schools with endowments over $1 billion to allocate 25% of the annual returns to student grants.
- Some higher ed leaders are calling the plan “an unnecessary and dubious burden,” Inside Higher Ed reports.
Reed says he is open to modifying the idea, which he sees as a bridge to getting over the “crisis” surrounding college affordability and skyrocketing tuition costs. His plan would provide grants for students whose family incomes don’t qualify them for Pell grants, moving a significant amount of money each year to the new student aid fund.
The proposal would affect approximately 90 institutions, including many of the state flagships and Ivy League institutions, but also smaller institutions like Amherst College, Berea College, Swathmore College and the all-women’s Wellesley College and the University of Tulsa.