Considering one's nearly $50B endowment, why isn't tuition free at the ivy league universities?

[docster]

This isn't a socialism question where some people think everything should be free. But if a university has tens of billions of dollars in their endowment fund and it's making even a modest 5% interest, that should be more than enough to cover salaries, utilities, building maintenance, etc. What's the point of an endowment fund if it's not benefitting students?

[AviatorTom]

Universities use some of that endowment for scholarships, to reduce the cost to students. If they totally used up their endowment, it wouldn't last more than a few years.

[Astarlessnightsky]

Imagine people from poor families actually getting educated and taking on important jobs.

[Anonymous]

Endowments usually cover capital costs and scholarships and modest interest right now is around 2% or 3% not 5%.

[MK1997]

They are capitalist institutions run by liberals. They are greedy and exploit people

[AI Opinion]

Ivy League universities maintain large endowments to ensure long-term financial stability and support various institutional needs beyond just tuition. While tuition could theoretically be free, endowments also fund research, scholarships, faculty salaries, and infrastructure. Their funds are often restricted for specific uses, and a significant portion is reinvested to preserve the endowment's value over time. Moreover, many of these universities do use endowment earnings to provide generous financial aid packages to students, ensuring that education is accessible regardless of economic background. Balancing these needs requires strategic use of the endowment.