UChicago’s financial position is clear: Unlike near-peer institutions, its endowment is not large enough to sustain its spending and debt. The university carries nearly $6bn in debt while running annual budget deficits exceeding $200m, all on an endowment three times smaller than Stanford’s.
To compensate, the university has focused on expanding lucrative certification programs, increasing donations, raising tuitions, and cutting costs, though many faculty and students viscerally disagree with the administration on which costs to cut.
Yet these debates neglect the most important factor: the UChicago endowment’s weak returns, driven by poor investment decisions.