If a university is an institution, and an institution has an endowment, why can’t increasing costs be funded by capital gains? If a university is only allowed to spend five percent of the money earned on its endowment funds before being penalized, why can’t the government change that to say 5 1/2 percent? That extra 1/2 percent of all money invested gaining monetary value could immediately help subsidize the cost for schooling for many. Most institutional investors create much more than five percent wealth on any given year anyways, so there isn’t a need to worry about possibly liquidating the principal and quickly deteriorating the funds all together.
DO you happen to know what tuition is spent on? Could there be economical inflations in some nonrenewable resource that lead to an increase in tuition cost?