What exactly is the Harvard endowment and why does it matter for students?
I'm a current high school junior researching colleges, and I keep seeing references to 'Harvard's endowment' in articles and forums. I understand it's some sort of giant fund, but can anyone explain what it actually is and how it's used?
Does it have any direct impact on student life or financial aid, or is it just a number that doesn't really matter to ordinary undergrads? For example, does the size of their endowment mean Harvard can be more generous with scholarships, or does it help keep campus resources really good?
I'd really appreciate any firsthand experiences or detailed explanations. I want to understand if the endowment is just for bragging rights or if it actually makes a difference for students.
Does it have any direct impact on student life or financial aid, or is it just a number that doesn't really matter to ordinary undergrads? For example, does the size of their endowment mean Harvard can be more generous with scholarships, or does it help keep campus resources really good?
I'd really appreciate any firsthand experiences or detailed explanations. I want to understand if the endowment is just for bragging rights or if it actually makes a difference for students.
6 months ago
•
128 views
Luis Nario-Malberg
• 6 months ago
Advisor
Harvard's endowment is essentially a massive pool of investments, valued at over $50 billion, that supports the university’s long-term financial health. It’s not like a giant bank account Harvard can just spend from freely—instead, the endowment is made up of thousands of individual funds, often set up by alumni donors, each with its own restrictions and purpose. Investment income from the endowment is used each year to support various things on campus, from financial aid to faculty salaries to learning spaces.
For students, the endowment is actually quite significant. One of the most direct ways it impacts students is through financial aid. Because Harvard’s endowment is so large, the school is able to offer one of the most generous need-based financial aid programs in the world. For example, if your family makes under a certain income (typically around $85,000/year), you can attend Harvard tuition-free—and families with higher incomes often receive substantial aid as well. This financial support is a real outgrowth of endowment earnings.
The endowment also allows Harvard to maintain world-class resources for students: massive libraries, research funding, updated dorms, guest speakers, and so on. It gives them flexibility to pilot new programs or improve campus life. When COVID-19 first hit, for instance, Harvard tapped into its endowment earnings to support online learning and student needs.
An example: a friend of mine had access to grants for summer research that were funded by endowment-supported programs. This let her spend a summer doing cancer research without worrying about earning money elsewhere.
While the endowment can seem abstract or just like a huge number, it does matter for students—especially when it comes to affordability and the richness of campus resources. For ordinary undergrads, you probably won’t interact with it directly, but you’ll definitely feel the benefits in terms of financial support and opportunities throughout your time on campus.
For students, the endowment is actually quite significant. One of the most direct ways it impacts students is through financial aid. Because Harvard’s endowment is so large, the school is able to offer one of the most generous need-based financial aid programs in the world. For example, if your family makes under a certain income (typically around $85,000/year), you can attend Harvard tuition-free—and families with higher incomes often receive substantial aid as well. This financial support is a real outgrowth of endowment earnings.
The endowment also allows Harvard to maintain world-class resources for students: massive libraries, research funding, updated dorms, guest speakers, and so on. It gives them flexibility to pilot new programs or improve campus life. When COVID-19 first hit, for instance, Harvard tapped into its endowment earnings to support online learning and student needs.
An example: a friend of mine had access to grants for summer research that were funded by endowment-supported programs. This let her spend a summer doing cancer research without worrying about earning money elsewhere.
While the endowment can seem abstract or just like a huge number, it does matter for students—especially when it comes to affordability and the richness of campus resources. For ordinary undergrads, you probably won’t interact with it directly, but you’ll definitely feel the benefits in terms of financial support and opportunities throughout your time on campus.
Luis Nario-Malberg
Mooresville, North Carolina
Harvard College, Class of 2018, A.B. in Philosophy
Experience
5 years