There was no celebration to commemorate Syracuse University’s latest milestone. No table at Schine, no candy and no banners.

Perhaps the SU administration doesn’t want anyone to know – or maybe they’re just being modest – but the university has just entered into the elite and mysterious group of schools whose endowments exceed $1 billion.

Don’t confuse that with SU’s ongoing $1 billion fundraising campaign, which began in 2005 and expects to continue through 2012.

The student body and the general public aren’t exactly notified in full about endowments, yet have very strong opinions about them and often demand they be given a share. It’s about time the government stepped in and pried open the iron curtain that’s been cast over the school’s financial dealings.

For those of us who struggle to pay for gas, a billion dollars is cause for celebration. But in this case, money has brought scrutiny – not happiness – to the Hill.

Shortly after its quiet ascent into billionaire-hood, SU and 136 other schools with endowments more than $500 million received a letter from the Senate Finance Committee requesting information about each school’s tuition and endowment to be provided within 30 days.

The federal government isn’t alone in its suspicion of college finance. Everybody is wondering why universities continually raise tuition while their already-bloated bank accounts swell.

‘I’m going to be paying off loans until I’m 55 years old,’ said junior political science major Ashley Sulewski. ‘Our whole generation will be ridden with debt.’

For students struggling to meet the costs of increasing tuition, the idea of a billion dollars sitting untouched and jealously guarded somewhere is a tad upsetting. Resentment has grown as more and more people feel they’re being taken advantage of by the school’s administration.

But who’s to say we’re being taken advantage of in this case? After all, a private university is essentially a business like any other. They, too, must make a profit. However, it might be time to place the quality of service and education to the students before increasing the institution’s profit.

The costs of tuition increase as operation costs increase. Very little money from endowments goes to general operating costs.

The recent inquiry made on behalf of the Senate Finance Committee is an important first step in regulating tuition increase and the allocation of endowment funds.

Regrettably, there is no simple solution to lowering tuition.

SU’s endowment consists mainly of gifts from donors that have restrictions on how they are used said Kevin Quinn, vice president of University Public Affairs.

Universities aren’t free to use the money in whatever way they wish. This year, 12 percent of the total endowment money will be used for financial aid, Quinn said.

‘The university provides a total of $135 million in financial aid annually, which is higher than other privately endowed colleges considered to be our peers,’ he said.

Endowments can and should be used to a greater extent in lowering tuition costs, but it will not happen without the intervention of the federal government.

The flaw lies in the system behind higher education, not in the SU administration. With every other school leaving their endowments untouched, SU would have to be foolish to start chipping away at its own.

Meghan Overdeep is a junior magazine journalism major. Her columns appear every other Thursday. She can be reached at meoverde@syr.edu.

Published on February 27, 2008 at 12:00 pm