Even Harvard, With $37B in Bank, Is Tightening Belt

President warns of budgetary reshuffling
By Matt Cantor,  Newser User
Posted Nov 11, 2008 11:50 AM CST
Harvard will be hurt by the financial crisis, its president says.   (Shutterstock)
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(Newser) – Even its $36.9 billion endowment (as of June, that is) won't protect Harvard, the nation's richest university, from feeling the effects of the financial crisis, its president said yesterday. Drew Faust said cost savings would be in order, though specific plans aren’t settled, the Harvard Crimson reports. One thing that won’t be affected, she said, is the university’s financial aid policy, which includes a commitment to eliminate tuition for families who earn less than $60,000.

“We must, even in these difficult times, keep our eye on this priority,” she said. The crisis will affect all of Harvard’s top income sources: the endowment, donations, and tuition, the Crimson notes. She didn't reveal the current state of the endowment, but she said Moody's is projecting a 30% decline in endowments in general this year. The timetable for Harvard’s physical expansion across the river in Allston may be reconsidered, the Wall Street Journal reports.