A university’s financial foundation keeps the show going. But what are some of the tell-tale signs that the show is heading toward its final curtain call?
Indicators including federal financial responsibility scores and endowment sizes can contribute to figuring out how well-off universities are, according to a report published Wednesday by The Chronicle of Higher Education. GW’s status compared to its peer schools reveals a good financial health score from the federal government and an endowment-to-student ratio that about parallels its peers.
An unofficial dataset created by a staff member at the National Association of College and University Business Officers roughly estimates universities’ endowment dollars per full-time students. GW’s ratio lands at a little less than $80,000 for each student and is the fourth lowest out of its 14 peer schools, ahead of University of Miami, American University and Boston University.
But the report also comes with a disclaimer – its authors said that endowment dollars per student doesn’t offer a full-enough picture of a university’s financial health because it offers no indication of how that money is spent.
Schools with large endowments also tend to have a larger number of students, leading to a higher endowment dollar amount per student.
The Department of Education also rates universities’ financial health on a scale from -1 to 3, where a score of 1.5 is considered “passing,” or financially stable. GW scored a 2.9 for fiscal year 2013, according to data from The Chronicle of Higher Education. GW’s peers fell between 2.6 and perfect 3s, except for the University of Miami, which earned a 1.9.
But not everyone agrees that the federal government’s ratings are fair. The Chronicle report said private college groups have said the scores are misleading or even erroneous.
GW’s financial health came under scrutiny after it was revealed that debt payments will exceed the yearly endowment payout next fiscal year for the second year in a row.