Swarthmore’s Daily Gazette has mentioned EphBlog twice in the last few years:
According to notes from a presidential speech posted on EphBlog, Williams may have lost up to 30% of its endowment, going from $1.9 to 1.3 billion. The college spent 4.1% of the endowment last year, but their president Morty Schapiro has announced plans to draw 7% of the endowment this year in order to make up budget shortfalls. Furthermore, Williams is putting off current building and renovation projects, instituting a hiring freeze, and potentially increasing class size to grow the tuition revenue stream.
This caution meant that Swarthmore has significantly less debt than many peer schools. In 2008, Swarthmore had debt of $184.5 million, all at fixed interest rates, according to the Investment Office’s Financial Conditions report released yesterday. The document also concluded that “Swarthmore is relatively better-positioned than many other institutions.”
Williams, by contrast, has roughly $240 million in debt. In financial downturns, debt decreases liquidity and can cost schools. The Eph Blog speculated that Williams’ debt cost the school millions.
Thanks for the love Swarthmore!