College Admissions at Elite Schools and the $500,000 Endowment Per Student Cutoff
Under the pending Trump Tax Plan, Universities whose endowments are above $500,000 per student will face an endowment tax of 1% a year. A $7 billion dollar school would pay $70 million dollars in cash (that’s a lot of Assistant professors slots). Holding a university’s endowment fixed, if this school increases its student population by 20%, it will be less likely to face this tax threshold. From the link above, I see that Duke, UPENN, Columbia and University of Chicago are all hovering around the threshold. I predict that they will be admitting more students in the near future.
My son is a junior in high school so this incentive effect is of interest to me.
Source: http://greeneconomics.blogspot.com/2017/12/college-admissions-at-elite-schools-and.html
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