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Mississippi State becomes 14th SEC school with a $1 billion endowment
Posted on 8/7/25 at 10:08 pm
Posted on 8/7/25 at 10:08 pm
Waiting on Ole Miss and Oklahoma.
Rumor is Ole Miss will announce this year.
LINK
Rumor is Ole Miss will announce this year.
LINK
This post was edited on 8/7/25 at 10:09 pm
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Posted on 8/8/25 at 7:32 am to anc
Oklahoma's endowment is $1.81 Billion
Posted on 8/8/25 at 8:06 am to anc
Our endowment is over $1B?
Question, with these schools with endowments over $1B, why the frick are any kids paying tuition?
Question, with these schools with endowments over $1B, why the frick are any kids paying tuition?
Posted on 8/8/25 at 8:07 am to Ourichie
Posted on 8/8/25 at 8:09 am to anc
quote:
Oklahoma
Indian traders.
Posted on 8/8/25 at 8:10 am to Oilfieldbiology
quote:
Our endowment is over $1B?
LSU BR isn't but if you count the entire LSU system it is
Posted on 8/8/25 at 8:11 am to anc
Seems like there is a better way to spend money
Posted on 8/8/25 at 8:17 am to Oilfieldbiology
quote:
Question, with these schools with endowments over $1B, why the frick are any kids paying tuition?
Taking a quick look at LSU expenditures which is probably somewhat in line with most SEC schools, we pay out half a billion a year in payroll/benefit expense alone (for anyone who works in the system). LSU reported a bit under $600M in self generated revenue (this includes tuition/fees).
So $1B would dry up pretty quick if not supplemented by tuition/fee cost.
This post was edited on 8/8/25 at 8:18 am
Posted on 8/8/25 at 8:24 am to anc
Congratulations.
Posted on 8/8/25 at 8:24 am to anc
Posted on 8/8/25 at 8:33 am to Oilfieldbiology
quote:
Question, with these schools with endowments over $1B, why the frick are any kids paying tuition?
Is this a riddle like Elon having enough money to give everyone on earth a million dollars?
Posted on 8/8/25 at 8:39 am to YeauxTigers
It is interesting...that list says "University of Texas System."
The other schools in the system (like UT Dallas, UTEP and UTSA) have their own endowments.
The other schools in the system (like UT Dallas, UTEP and UTSA) have their own endowments.
Posted on 8/8/25 at 8:39 am to bigDgator
quote:
Is this a riddle like Elon having enough money to give everyone on earth a million dollars?
No, it’s not. I’m just curious what the institutions of higher learning are doing by sitting in $1B plus of liquidity.
I realize that not every student would be paid for, and that the endowment wouldn’t cover all expenses, but simply taking the interest on $1B at say 3% rate would be $30M/yr without reducing the principle. That’s a pretty hefty chest for scholarships and offsetting of many of the fees associated with running a university.
I just feel that if a public university has an endowment like that, the cost to attend should be reigned in so that the public can actually afford to attend without bankrupting families or saddling students with lifetimes of debt.
It is an idealistic point of view, not one that I want any legislation to address.
This post was edited on 8/8/25 at 8:42 am
Posted on 8/8/25 at 8:53 am to Oilfieldbiology
Agreed, but this is why the endowments go up 30 million each year. Or 50 or 100 million depending on the size of the asset. If they start spending it, pretty soon they won't have it.
Although your question is not moot, what are they saving for, and what do they spend it on, if anything? I have never really looked into it.
A quick AI search:
This all sounds great, but I would like a list of who the checks are made out to, and for how much. I believe I read somewhere that there were schools that had invested money with Madoff and took it in the shorts, including Harvard.
Harvard endowment is approx 53 billion. They can earn over 1.5 billion a year at just 3% on their money.
Although your question is not moot, what are they saving for, and what do they spend it on, if anything? I have never really looked into it.
A quick AI search:
quote:
AI Overview
University endowments are essentially investment funds composed of charitable donations, which are managed to provide long-term, stable financial support for the institution's mission.
Universities use their endowments for a variety of purposes, including:
Student Financial Aid: Endowments are a vital source of scholarships and grants, helping to make higher education more affordable and accessible for students with financial need. In fact, nearly half of endowment spending at institutions in the 2024 NACUBO-Commonfund Study of Endowments went towards student financial aid. This reduces the reliance on tuition revenue and allows institutions to better meet students' needs.
Faculty Positions and Academic Programs: Endowment funds can be used to establish and support endowed professorships and chairs, attracting and retaining top faculty talent, according to UC Davis Graduate School of Management. They also fund the development and improvement of academic programs, enriching the educational experience for students.
Research and Public Service: Endowments play a crucial role in funding groundbreaking scientific and medical research, driving innovation and benefiting society as a whole. They also support public service initiatives and outreach programs that connect university resources with community needs.
Operational Expenses and Stability: While a significant portion of endowment spending is restricted by donors for specific purposes, some unrestricted funds can support general operations, helping universities manage expenses like salaries and benefits, facility maintenance, and technology infrastructure. Endowments provide a stable source of funding that helps universities weather economic fluctuations and engage in long-range planning with greater confidence.
Strategic Initiatives and Flexibility: Endowments allow institutions to invest in strategic initiatives, adapt to changing educational needs, and support innovation in teaching and research.
In essence, endowments are designed to provide a permanent source of income that supports and strengthens the core mission of universities for generations to come.
This all sounds great, but I would like a list of who the checks are made out to, and for how much. I believe I read somewhere that there were schools that had invested money with Madoff and took it in the shorts, including Harvard.
Harvard endowment is approx 53 billion. They can earn over 1.5 billion a year at just 3% on their money.
This post was edited on 8/8/25 at 8:57 am
Posted on 8/8/25 at 9:01 am to bigDgator
I actually agree with and support not touching the principle of the endowment. Maybe powwow against it to raise additional funds not through donation, etc…
It’s just that the entire purpose of higher learning academic institutions has gotten completely corrupted. Hell, it seems like everything has just gotten more corrupted the more financiers and bankers have been allowed to gain control over an ever greater number of institutions as time has worn on.
I didn’t mean for this post to turn so damned philosophical on and SEC message board so this is my last post about it. I appreciate the conversation BigGator and I hope y’all lose every SEC game this year
It’s just that the entire purpose of higher learning academic institutions has gotten completely corrupted. Hell, it seems like everything has just gotten more corrupted the more financiers and bankers have been allowed to gain control over an ever greater number of institutions as time has worn on.
I didn’t mean for this post to turn so damned philosophical on and SEC message board so this is my last post about it. I appreciate the conversation BigGator and I hope y’all lose every SEC game this year
Posted on 8/8/25 at 9:15 am to Oilfieldbiology
quote:
I appreciate the conversation BigGator and I hope y’all lose every SEC game this year
Posted on 8/8/25 at 9:19 am to anc
Here come all of the people who have no idea what an endowment is or does 
Posted on 8/8/25 at 9:21 am to anc
quote:
Waiting on Ole Miss
For a bunch of bow-tie wearing snobs, they sure are poor!
Posted on 8/8/25 at 2:43 pm to Oilfieldbiology
quote:
Question, with these schools with endowments over $1B, why the frick are any kids paying tuition?
At State (and most other schools), the majority of the University's Endowment is going to paying tuition for students. Alumns/Donors donate a lump some of money to the endowment fund for an "Endowed Scholarship". The majority of interest earned off that lump sum donation is what is used to fund the tuition provided under that particular scholarship. A smaller percentage of the interest is rolled back into the endowment to ensure future tuition increases can be covered by future interest earned.
Say you have $1 Billion dollars in endowed scholarships. If you earn 5% interest on average, that's $50 million per year. Save $10 of that to add to the endowment and the other $40 million to pay scholarships. At State, the full cost of attendance is about $30k per year. That's only about 1,300 scholarships at a school with 25K enrollment.
Structuring these endowment to live off interest earned allows them to provide benefits indefinitely. If you just took the lump sump of the endowment and gave it to all students, that money would be eroded in a little over a year: 25k students @ $30k cost of attendance is $750 million.
Posted on 8/8/25 at 3:14 pm to anc
and yet college tuition continue to skyrocket. At a point the bubble will burst right?
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