And they are shameless and explicit in their pursuit of profit Harvard boasts that it is the oldest corporation in the Western hemisphere. Receipts of their expenditures are proof: These universities pay fund managers more than they invest in student s, or pay educators. Wealthy universities enjoy these tax breaks because they are classified as 501(c)3 tax-exempt organizations, which are meant to be “ operated exclusively for … educational purposes.” Yet there is undeniable evidence and a growing consensus that wealthy universities operate mostly to make money as real estate titans, hedge funds, and private equity investors. Elite private schools fare far better than public universities in this regard: Princeton receives $105,000 in tax subsidies per student, while Rutgers gets $12,000. Sociologist Charlie Eaton has explained that wealthy private colleges are essentially “ ivory tower tax havens” that benefit from multiple tax breaks on assets and endowments, which are investment vehicles that grow past profits. The Ivy League represents the most egregious actors among modern universities, which operate more like sophisticated financial institutions, extracting public funds ( $52 billion just in 2017) under the guise of educating young people and serving the public interest. A tuition-free college system that is attractive to most young people, however, requires not only funding, but also the curtailing of the popularity and prestige of wealthy, elite private colleges like the Ivy League. This is not only reasonable-it is possible to achieve. Organizers have long paired the demand for debt cancellation with an associated demand for tuition-free college. But it does not fully address the depraved higher-education system’s hunger for profit that will continue to prey on young people in years to come. Joe Biden’s plan to cancel up to $20,000 of student debt is a step toward solving the college affordability and student debt crisis. This article appears in the October 2022 issue of The American Prospect magazine. Harvard’s Memorial Church is seen on March 13, 2016.

Besiege free