They say, “What goes up, must come down,” and if you’ve owned bitcoin lately, you’d probably agree. But one thing that saying definitely doesn’t apply to is College costs. Back in ’97, College tuition cost around $16,000 and now the average cost is around $42,000 — and Colleges are beginning to turn to alternate funding sources.
[:34] The average private College tuition was around $16,000 back in ‘97, around $25,000 in 2017, and is now around $42,000 today — and in-state college costs are rising even faster.
[1:00] Colleges are turning to alternate funding sources, including their endowments.
[1:19] America’s richest 800 Colleges and Universities hold over $500 billion in endowments.
[1:59] The tax cuts and jobs act of 2017 imposes a 1.4% excise tax on net investment income of (some) private colleges — but excludes public schools.
[2:43] If any schools have too much money, it’s the top shelf Ivy Leagues.
[3:33] Academic endowments have grown so large that they’re starting to use the same tax strategies as the richest individuals.
[4:46] So here’s the good news: You don’t have to be an Ivy League university or have an Ivy League education to save big on your tax bill, you just need a proactive plan. So call Financial Gravity when you’re ready for some real-world lessons on how to pay less.