How Stanford University Uses Its Wealth, With Some Notes on the Analysis of Rising Tuition

Stanford university’s annual undergraduate tuition is over $41,000 and our endowment is a gasp-inducing $17 Billion. Based on these facts, many people would argue that I work for one of those money-grubbing dens of elitism that is preventing middle class parents from providing their kids a world-class education.

Since I am a professor, let me respond to these concerns with a pop quiz. Try answering the following three questions.

1. What has been the inflation-adjusted increase in Stanford’s net tuition (i.e. tuition minus financial aid) from 1994 to the present day?

2. What is the modal amount of debt taken on by new Stanford graduates over their time at the university?

3. If your family were in the 75th percentile of American income, how much would Stanford charge you for tuition?

Continue Reading…