Colleges with the Greatest Profits

Been doing some thinking about college expenses and wondered, which colleges make the most profit each year? I guess understanding where the tuition money ends up could give me a bit of insight.

When talking about college profits, it's important to note that most U.S. colleges and universities are non-profit institutions, which means any surplus they have isn't technically "profit." Instead, it goes back into the institution for improvements, scholarships, research, etc., rather than to shareholders like a for-profit company.

However, it is possible to look at which institutions have the larger endowments. An endowment is a combination of donated money, property and financial assets that defers some of the costs and is used to sustain and further the institutions' mission. Here are some of the U.S. universities with the largest endowments:

1. Harvard University: Harvard's endowment is typically the largest of any university in the world. As of June 2023, it was valued at approximately $50.7 billion.

2. Yale University: Yale's endowment is also gigantic, standing at approximately $41.4 billion as of June 2022.

3. Stanford University: Stanford's endowment remains the third largest, at around $36.5 billion in 2023.

These endowments represent a great deal of money donated over years by alumni and other individuals, and also the returns on investments that each university's endowment fund has made.

But remember, large endowments do not necessarily equate to lower tuition or more financial aid. Many Ivy League schools do offer generous financial aid packages but there are also public universities and smaller private colleges that also have robust aid packages. Always check individual school financial policies and don't just rely on endowment size as a measure of affordability.