'...Something’s not adding up when rising tuition rates keep climbing year after year while many universities are flush with ballooning endowments.

At a U.S. Senate Finance Committee hearing in September, witness testimony revealed college and university endowments have grown enormous fortunes. The top 25 college and university endowments are $11 billion more than the combined assets of the top 25 largest private foundations. Investment returns often exceed 12 percent or more. However, college endowment spending averages a paltry four percent.

Some of those endowments are massive and have gotten so big, in large part, because they benefit from very generous tax breaks. Yale University’s endowment equates to $2.8 million per undergraduate. Tapping endowment returns to help keep college accessible to non-wealthy families seems more than reasonable.

As the tax-writing Senate Finance Committee hammers out details of an education tax package, an endowment pay-out requirement ought to be included in the discussion to reduce tuition and help students afford college...'