Universities Exploit Tax Advantages as Students Face Tuition Crisis

Universities Exploit Tax Advantages as Students Face Tuition Crisis

In a stark reality that many refuse to discuss, universities with billion-dollar real estate portfolios and ample revenue are evading their tax responsibilities. By behaving like corporations, they should also be held accountable to the same tax standards as corporate entities. This situation continues to perpetuate a disparity between the wealth of educational institutions and the financial struggles of students and local communities.

Across America, elite colleges and universities operate vast tax-exempt real estate empires, all while middle-class families grapple with the weight of tuition debt. This institutional inequity fuels a pressing issue that demands immediate attention.

The Changing Landscape of Higher Education

Many may perceive colleges as struggling financially. However, this is far from the truth. As of 2024, over 100 colleges and universities in the United States boast endowments exceeding $1 billion. For example, Harvard University controls an endowment of over $50 billion, while Yale and The University of Texas surpass $40 billion each. These institutions have transitioned from places of learning into profitable investment entities, diverting attention from their educational missions.

Despite their tax-exempt status, these universities continue to amass vast amounts of land in cities across the nation without contributing a cent in property taxes. This glaring injustice highlights a systemic problem.

To illustrate, individuals purchasing rental properties are obligated to pay property taxes, as are small businesses opening new locations. Yet, universities, when purchasing luxury buildings labeled as