According to an article in today’s New York Times, Harvard announced that its endowment has lost 22%, and may lose up to 30% by the end of its fical year in June. Harvard depends on its endowment income for 35% of its operating budget. So it is undeniable that the financial squeeze will affect every college, public and private, in the country.
What does that mean for individual families? First, don’t panic Your son or daughter is not a statistic, and you should not make rash or hasty microeconomic decisions based solely on the macroeconomic picture. You need to do your homework, develop a careful strategy that includes financial safety schools (not just admissions safety schools), and do the best you can on those applications.
And if you are a freshman, sophomore, or junior? Keep up those grades. Work hard. The more you achieve in high school, the better your chances for a solid financial aid package at a school that fits you well.
