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Post by Pakachoag Phreek on Oct 26, 2021 19:55:31 GMT -5
ROI was 37.5%.
We return you now to your regular programming.
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Post by hchoops on Oct 26, 2021 20:21:31 GMT -5
It was all due to my class agent work.
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Post by mm67 on Oct 26, 2021 21:54:56 GMT -5
$1.043 billion is a good start. It puts the school in a position to bring in some real money and grow the endowment by a lot more.  |
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Post by longsuffering on Oct 26, 2021 22:59:43 GMT -5
$1.043 billion is a good start. It puts the school in a position to bring in some real money and grow the endowment by a lot more. No time for a victory lap. One bear market and HC could be right back down to nine figures.  |
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Post by newfieguy74 on Oct 27, 2021 7:44:35 GMT -5
$1.043 billion is a good start. It puts the school in a position to bring in some real money and grow the endowment by a lot more. No time for a victory lap. One bear market and HC could be right back down to nine figures. Yup, 37.5% is great, and hitting the billion mark is great, but years of tepid returns (when other schools were soaring) has to be a thing of the past. How about 2 billion in five years? |
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Post by hcpride on Oct 27, 2021 7:55:06 GMT -5
Let's see if we can leverage some of that into financial aid (starting with killing the loans in packages).
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Post by princetoncrusader on Oct 27, 2021 16:43:28 GMT -5
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Post by gks on Oct 27, 2021 20:39:44 GMT -5
Smith College announced no loans a short time ago.
Vanderbilt does not use loans either.
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Post by hcpride on Oct 27, 2021 21:10:11 GMT -5
While we do not necessarily compete for students with Colgate, we can certainly take heed of their wise action. Underwriting a no-loan policy may give us an advantage over our significant applicant overlap schools: BC, Fordham, Providence College, and Notre Dame. |
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Post by alum on Oct 28, 2021 7:22:23 GMT -5
Latest data I could find said that 57% of HC students borrowed from any loan program. I presume that this includes loans for students who don't qualify for aid, so the actual number getting regular student loans is probably lower. Nevertheless, for argument's sake, lets use 1700 students getting a loan in a financial aid package. The same source says that the average loan is $4495. That would total $7.6 million in loan revenue. Assuming, as PP has told us, that HC uses about 4.5% of the endowment as income each year, the College would need to allot $176 million dollars to cover this cost. This would be a marketing coup as important as more modern living situations which we have discussed in prior threads.
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Post by Pakachoag Phreek on Oct 28, 2021 8:58:24 GMT -5
Latest data I could find said that 57% of HC students borrowed from any loan program. I presume that this includes loans for students who don't qualify for aid, so the actual number getting regular student loans is probably lower. Nevertheless, for argument's sake, lets use 1700 students getting a loan in a financial aid package. The same source says that the average loan is $4495. That would total $7.6 million in loan revenue. Assuming, as PP has told us, that HC uses about 4.5% of the endowment as income each year, the College would need to allot $176 million dollars to cover this cost. This would be a marketing coup as important as more modern living situations which we have discussed in prior threads. One must take care not to extrapolate growth in endowment value as fungible money,. A large portion of the endowment is restricted for certain specified purposes, and cannot be allocated for financial aid. But even with that splash of cold water, there is reason for optimism going forward. Neither the Agnes Williams bequest, nor the donors' match (a total of $40+ million specifically restricted to fin aid) appear to be included in the endowment (as calculated on June 30.) |
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Post by longsuffering on Oct 28, 2021 12:07:58 GMT -5
If loans have no value, my whole adult life is called into question.🙂 Wouldn't lowering the sticker price instead of eliminating loans help HC increase competitiveness with full payers who have many options where to go to college?
What if inflation rears it's ugly head, the stock market reverses it's gains while HC's fixed costs soar and Holy Cross is stuck funding everybody's loans...that the Federal Government is trending towards forgiving anyway?
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Post by KY Crusader 75 on Oct 28, 2021 12:35:35 GMT -5
It's a matter of delicate balance--if you lower the front-line price you may also reduce the "premiumness" of the product/service/college. If Holy Cross reduced tuition from $57,000 and a competitive school, say Villanova, stayed at $57,000 many people will compare the two schools and conclude that Villanova is offering a better product because it costs more. I think some schools address this by having a high front-line price but offering scholarship aid to virtually everyone. A prospective student can thus say "Hey, Dad and Mom--I just got offered a $8,000 a year scholarship to Semi-Prestigious University because of my great grades and college board scores".
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Post by longsuffering on Oct 28, 2021 13:10:39 GMT -5
If loans have no value, my whole adult life is called into question.🙂 Wouldn't lowering the sticker price instead of eliminating loans help HC increase competitiveness with full payers who have many options where to go to college? What if inflation rears it's ugly head, the stock market reverses it's gains while HC's fixed costs soar and Holy Cross is stuck funding everybody's loans...that the Federal Government is trending towards forgiving anyway? Fortunately we can now look to the Colgate model for answers. Good point. Colgate is among the closest to an apples to apples comparison with HC. |
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Post by hcpride on Oct 28, 2021 13:21:05 GMT -5
/\ And is not a competitor. (We can use their strategy to beat our competitors.)
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Post by Chu Chu on Oct 28, 2021 14:36:03 GMT -5
It's a matter of delicate balance--if you lower the front-line price you may also reduce the "premiumness" of the product/service/college. If Holy Cross reduced tuition from $57,000 and a competitive school, say Villanova, stayed at $57,000 many people will compare the two schools and conclude that Villanova is offering a better product because it costs more. I think some schools address this by having a high front-line price but offering scholarship aid to virtually everyone. A prospective student can thus say "Hey, Dad and Mom--I just got offered a $8,000 a year scholarship to Semi-Prestigious University because of my great grades and college board scores". This is exactly what happens. It is known as "merit aid" and is a very effective marketing tool. We have not traditionally done that. My daughter is a good example. She had several offers of merit aid, but not from Holy Cross. She went to Holy Cross anyway, but many other families can not make that decision. |
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Post by newfieguy74 on Oct 28, 2021 14:40:48 GMT -5
Merit aid is indeed excellent marketing, and there are ways to dress it up. Instead of saying "we're giving you 20K of merit aid" the school can say "Because of the strength of your application you've been named a Presidential Scholar with an annual award of 20K", or something along those lines.
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Post by KY Crusader 75 on Oct 28, 2021 14:56:51 GMT -5
Yes- my older daughter applied to HC, SLU, and a couple of other schools. I did not let her see the "merit aid" letter from St Louis U because I did not want her to try to save me money and select SLU for that reason. She picked Holy Cross. Daughter #2 got accepted at Holy Cross but chose Tulane,but not because of the merit award she got there.
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Post by princetoncrusader on Oct 28, 2021 16:13:47 GMT -5
I have been speaking with a couple of development office folks for that past year or so on a pledge and a bequest. (I am at the stage of life where one thinks about such matters.) One told me that HC does indeed offer merit scholarships in the $5-$10k area. She also asked me re the bequest, which would be used to fund a scholarship, if it should be need-based, merit-based or some combination thereof. So I think HC has come to the realization that to be competitive today, an institution has to offer a certain amount of merit aid.
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Post by newfieguy74 on Oct 28, 2021 17:55:35 GMT -5
5-10K is pretty paltry. Colleges with far fewer resources offer much larger merit scholarships.
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Post by Chu Chu on Oct 28, 2021 19:38:33 GMT -5
5-10K is pretty paltry. Colleges with far fewer resources offer much larger merit scholarships. Actually, that amount of money can be a real incentive, especially if it is on top of need based aid, or 529 plan money or other help. |
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Post by hcpride on Oct 28, 2021 21:00:18 GMT -5
/\ The small merit schollies were started three or so years ago and were a wise move given the marketplace and our challenges regarding stronger academic kids.
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Post by Pakachoag Phreek on Oct 29, 2021 8:16:41 GMT -5
In fiscal 2021, the college distributed $34.6M of the endowment for the operations of the college, including financial aid.. This amount was about 4.5% of the average of the endowment's value in 2018, 2019, and 2020. (And which was a piss-poor average.)
In fiscal 2022, the distribution will be based on the average of the values for 2019, 2020, and 2021, about $38..8 million
If the three-year average value of the endowment for 2023 is $985M, the distribution would be $44.3M. (Two of the three years in the average are baked in: 2020 and 2021).
If the three-year average value of the endowment for 2024 is $1,200M, the distribution would be $54 million, about $20 million more than for fiscal 2021.
I suspect that when the distribution nears $50 million, the college can do away with loans.,
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Post by sader1970 on Oct 29, 2021 8:48:41 GMT -5
Gotta make going to Holy Cross more affordable for excellent students.
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Post by rgs318 on Oct 29, 2021 8:56:41 GMT -5
No time for a victory lap. One bear market and HC could be right back down to nine figures. Yup, 37.5% is great, and hitting the billion mark is great, but years of tepid returns (when other schools were soaring) has to be a thing of the past. How about 2 billion in five years? A lofty goal....and I LIKE it! |
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