How much money do colleges really make?
How much money do colleges really make?
By: Justin Leeds
Colleges have way too much power. To start off a college can control education and money flow for a local economy. If a college has a large name sports team like the Alabama or Duke that alone brings in millions of outside money to the local economy. Some colleges even build up large surpluses
A college is classified as an educational institution or establishment, in particular. Some of these colleges can be anywhere from 62 thousand a year to free depending on level of school and other outside factors. But did you know that some of these colleges might as well become banks with all of their extra income. According to The Ten Richest College Harvard has more than $30 billion, but this isn’t just Ivy League school building up large stacks of money, Michigan has saved up nearly 8 billion to lead the big ten as the richest school. Not all of these schools have built up these bank like funds from high tuition. University of Michigan- Ann Arbor only cost 25 thousand in state. All of this saved money is slowing down the economy from operating at its maximum potential.
This is not to say that Universities should spend all of there money and live tuition to tuition but there is no reason for holding an excess of over 5 billion dollars. Universities should be required to spend no less than 90% of their income to help create a much stronger economy. Not only will this directly increase the economy but with the multiplier effect the GDP for that local area will increase much larger than initial payment.
Not only do University make large amounts of money from tuition and alumni support but the athletic programs are not doing too bad either. According to USA today some colleges like, for say, Texas make 163 million dollars. Ohio State just edges out Michigan with 142 million a year just from their athletics programs. This is mostly outside money being brought to the town of the local sports team.
These two reasons are why college towns do more than just exist but thrive. For example when Michigan (trying to keep a constant example, sorry if it seems like I am in love with this college) host a football game there will be over 110 thousand people in the stadium. Now all of these people start spending money in the college town’s economy instead of their local all of this money trickles down and leads to better money flow. Also as soon as graduation happens there are thousands of highly trained workers ready to join the work force in a quick way to be off of unemployment.
Now for all of this information is top end teams and colleges but the ability for a college to control a local economy is greater than the government in some extreme cases. Which leads back to the really question, do colleges hold too much power?
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