00:00Exactly what is going on here at MIT? So MIT is reporting that they're actually
00:04taking in less federal money than they had in the past and what's concerning to
00:08them is that means they're funding less graduate students and we're not talking
00:13about the business school we're talking about students who are doing PhD
00:16programs and those types of students and what's also concerning to MIT is this
00:22we're talking about taxes looming tax bill of the endowment tax that was
00:27passed last year and it's hitting universities like MIT Harvard Stanford
00:32to the tune of roughly potentially three hundred million dollars a year so it's
00:37a lot of money and this is something new they've had a tax for since 2017 of 1.4
00:44percent of their net investment returns and for the richest schools two million
00:49two million of endowment per student it's eight percent and MIT is one of the
00:54richer schools yes okay along with the Harvard's and the Stanford's of the
00:58world and by the way you can check all of this out on endo endo go on the
01:02Bloomberg terminal so how is MIT responding to all of this what is it
01:06doing well they're doing a lot of lobbying as the president mentioned in her
01:10letter and they're trying to aggressively pursue other sources of funding other
01:15potentially corporate partnerships they're increasing enrollment in
01:19executive education where their non-degree programs students can come a
01:24couple of days and spend you know ten thousand dollars they're also increase
01:28increasing master's degree offerings so they're looking for new sources of
01:32revenue they also announced a couple of months ago they're closing libraries so
01:37they're looking to tighten their belts okay I mentioned Harvard earlier you also
01:42have a story out today about how much the university is paying its endowment CEO
01:47what did we learn so it's roughly the same as last year about six million dollars
01:52in 2024 and if you add half a dozen of their top earners it's about twenty five
01:57million dollars so you know as schools are belt tightening it's just an
02:02interesting contrast and Harvard's endowment has not been doing as well as it
02:08had been historically it had been a leader people would be envious of their
02:12returns and lately they've been sort of more in the middle towards the bottom right
02:17and of course there's been a lot of turmoil in the ranks of Harvard's endowment as
02:21well right a lot of people coming and going yes certainly over the last 20 years
02:25they've had a lot of people changing strategies and of course there's private
02:29equity to think about which is not returning
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