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Colleges Brace for Investment Losses as Tuition Pushback Mounts

  • Some endowments that spend more than 5% a year will cut rate
  • With fiscal year over, schools consider belt tightening
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Photographer: Jan Erik Posth/Getty Images

U.S. university endowments aren’t making money like they used to. And now some aren’t going to spend as much.

Schools are reducing annual payouts from their endowments as they brace for investment losses. With less money to spend on financial aid, faculty and other costs, colleges may have to search for other revenue. Most endowments ended their fiscal year on June 30 and will report annual returns in the fall.