Several universities are hiking tuition prices and cutting jobs despite sitting on massive endowments.
Universities are largely blaming the Trump administration’s federal funding cuts for the price increases, but many schools have seen steady rises in tuition for decades and overall increased revenue all while nursing their ever-growing endowments.
Cornell University is raising its tuition rate by over 4%, bringing the cost to $71,266 for out-of-state students and $48,010 for in-state students, while Duke University’s tuition will jump by nearly 5% to $92,042.
Duke’s price hike marks a 123% increase over the past two decades, despite its endowment steadily increasing over time to about $5 billion. The university’s 2023-2024 fiscal year financial report admitted that the school’s “growth in revenue outpaced expenses.”
At the time, Duke was charging students $83,263 in tuition and other fees and collecting a total of approximately $1 billion in gross tuition and fees even after accounting for financial aid deductions, making up 15% of its total revenue.
Duke is also working to reduce its workforce, offering voluntary buyout agreements to employees. The packages include financial incentives and healthcare in exchange for a three-year separation from the university, in which they can reapply after that period.
Duke did not respond to the Daily Caller News Foundation’s request for comment.
Weighing similar staffing cuts, Cornell blamed the Trump administration’s federal research grant terminations, saying the university now faces “profound financial challenges.” Cornell announced it was pausing hiring as it reviewed its “programs and headcount.”
As of 2024, Cornell brings in over $900 million from tuition costs and student fees every year, according to its financial records. Cornell’s endowment is valued at approximately $10.7 billion as of 2024, returning about 10% every year.
Cornell did not respond to the DCNF’s request for comment.
Several public universities like the University of Michigan (UM) and the University of Minnesota (UMN) are also raising costs by as much as 7.5% for some students while cutting programs and student services.
UMN is raising its rates by 6.5% for in-state and 7.5% for out-of-state students, also pointing to federal cuts. The school operates on a budget of over $5 billion, with a total systemwide endowment of $6 billion.
UMN did not respond to the DCNF’s request for comment.
Tuition costs at the University of Michigan (UM) will rise by over 3% for in-state students and just under 5% for out-of-state students while sitting on a nearly $18 billion endowment. The university is blaming ” budgetary impacts of federal actions” and “economic and legislative uncertainty,” according to a June announcement.
A UM spokesman directed the DCNF to the university’s public statement.
College tuition costs have been on the rise for decades, with price increases mostly outpacing inflation. Increased federal financial aid to students has been attributed by some studies to the inflated costs.
The Trump administration has cut billions in grants and contracts to universities, targeting programs that promote diversity, equity and inclusion (DEI) topics or universities that allegedly fail to comply with federal civil rights laws.
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