Key Takeaways
- • Hampshire College raised its endowment draw to 9% in its final years, while Lesley University has spent more than 8% of its endowment annually for a decade, according to the Boston Business Journal.
- • Experts quoted in the report describe drawing on endowments as a risky strategy for colleges and universities facing enrollment declines.
- • Publisher context indicates that Curry College also draws heavily on its endowment, and that Massachusetts colleges posted double-digit enrollment losses in recent years.
- • Massachusetts now requires private institutions to warn students by December 31 if they may fail to meet financial obligations within 18 months.
Summary
Massachusetts colleges are drawing heavily on their endowments to cover operating shortfalls as enrollment declines, according to a report by Maya Shavit, projects reporter at the Boston Business Journal, published October 2, 2026. The article identifies Hampshire College, which increased its endowment draw to 9% in its final years, and Lesley University, which has spent more than 8% of its endowment annually for a decade, as examples. Curry College is also cited in related coverage as drawing heavily from its endowment to survive financial pressure.
Experts cited in the article describe endowment drawdowns as a risky approach for colleges and universities. Publisher context from related coverage notes that these schools are drawing unsustainable amounts from endowments to cover expenses and have posted double-digit enrollment losses in recent years. Related reporting also notes that financially strained colleges are cutting programs and laying off faculty.
Restricted funds, which often make up more than half of a school's endowment, can generally be tapped only with court approval, according to coverage in the publisher's database. Separately, related reporting says nearly 200 private colleges nationally borrowed from restricted endowments last year. Massachusetts has also tightened disclosure rules, requiring private institutions to alert students by December 31 if they may fail to meet financial obligations within 18 months. Massachusetts has seen 12 schools shut down or merge since 2015, the most in New England, according to related reporting.
Experts cited in the article describe endowment drawdowns as a risky approach for colleges and universities. Publisher context from related coverage notes that these schools are drawing unsustainable amounts from endowments to cover expenses and have posted double-digit enrollment losses in recent years. Related reporting also notes that financially strained colleges are cutting programs and laying off faculty.
Restricted funds, which often make up more than half of a school's endowment, can generally be tapped only with court approval, according to coverage in the publisher's database. Separately, related reporting says nearly 200 private colleges nationally borrowed from restricted endowments last year. Massachusetts has also tightened disclosure rules, requiring private institutions to alert students by December 31 if they may fail to meet financial obligations within 18 months. Massachusetts has seen 12 schools shut down or merge since 2015, the most in New England, according to related reporting.
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