American colleges and universities lost an average of 23 percent on their endowment investments last semester, according to a national survey to be released today, a drop that is hurting the bottom line across the board, from major state institutions to the Ivy League.Colleges are feeling financial pressure from all sides as the economic crisis deepens. State funding has dropped. Private donations are expected to decline. And with more families facing job losses and dwindling savings, some schools say they are reluctant to raise tuition or cut financial aid.
Instead, half of the private colleges taking part in a separate survey said they are freezing hiring, delaying building projects or restricting staff travel.
"This is the most challenging environment that any of us in higher education have seen in our professional lifetimes," said Molly Broad, president of the American Council on Education, "because of the combination of revenue declines from multiple sources and because of the continuing uncertainty."
