{
  "id": 4659947,
  "title": "Cash-strapped colleges are draining their endowments to survive",
  "url": "https://urgent.news/2026/08/31/cash-strapped-colleges-are-draining-their-endowments-to-survive",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-31T14:05:47.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/08/31/colleges-draining-endowments/"
  },
  "original_language": "en",
  "account": "Many colleges are resorting to draining their endowments to survive financial hardships. Hiram College, a 1,000-student liberal arts school in rural Ohio, is an example, having borrowed over $47 million from its $56 million endowment in 2025 alone. Hiram is working with the state attorney general’s office and donors to repay the loans. President David Haney considers this a risky bet, regretting his decision to take office. Nearly 200 private colleges borrowed from restricted endowment funds in 2025, up from about 130 in 2021. Smaller, lesser-known institutions face dwindling pools of potential students due to a declining US birth rate, leaving them with few options. Other colleges are drawing more from their endowments than advisors deem sustainable. For instance, Manhattan University increased its spending rate to 7% of its endowment in fiscal 2024 and 2025, leading to a downgrade in its credit rating. While dipping into the endowment can sometimes work, it carries long-term risks, such as downgrading a school’s credit rating. Schools should focus on cutting expenses instead of relying on endowment funds, according to Hiram’s former president.",
  "summary": "Nearly 200 private colleges borrowed from restricted endowments last year as the enrollment crisis emptied their classrooms and coffers",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}