Stanford University's Student Aid Announcement

Press Release

GRASSLEY: STANFORD'S STUDENT AID SPENDING MAY BE LATEST IN TREND, SMALL IOWA COLLEGE OFFERS EXAMPLE OF COMMITMENT TO STUDENTS

Stanford University's Student Aid Announcement

Sen. Chuck Grassley, ranking member of the Committee on Finance, with jurisdiction over tax policy, has called for well-funded colleges to consider spending more of their endowments on student aid. His interest is in ensuring that tax-exempt funds are used in keeping with their tax-exempt purpose. Earlier this month, he and Sen. Max Baucus, committee chairman, wrote to the 136 colleges with endowments of $500 million or more, asking a series of questions about their endowment pay-outs and student aid. They are awaiting responses from the colleges. Grassley made the following comment on Stanford University's announcement of increased student aid.

"Stanford is the latest big-name school to dip into the bank account and spend more on students. I hope we're seeing a trend and a shift in thinking. Spending a little more on students won't break the bank for well-funded schools.

"Even less well-funded schools can demonstrate their commitment to student aid. I recently received a letter from Faith Baptist Bible College in Ankeny, Iowa. The school received a $7.5 million gift from a deceased farm couple. That's about the amount of the college's yearly operating budget. The college is using the money for scholarships, tuition freezes, and new academic programs. If a 400-student college can do it, so can others. And doing a good job with a big gift will attract other gifts."

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