College Endowments Suffer Big Losses

Significant holdings in alternative investments, such as private-equity funds, are rapidly eroding the endowments of some of America’s largest universities as the global financial crisis continues, according to reports by the Associated Press
and The Wall Street Journal.

In addition to Harvard University, which this week announced that its endowment has lost 22 percent of its value since July 1, other college endowments are taking big hits, just as many states are trimming their higher-education budgets. Academic institutions are starting to freeze hiring, cut their enrollment, and discuss steep tuition increases, according to the Journal.