The information was initially requested by Iowa Republican Senator Charles Grassley who explained that colleges’ tuitions, endowments, and presidential salaries have all increased and financial aid should also. In addition, lawmakers have discussed the possibility of forcing colleges to spend five percent of their endowments each year, mirroring the requirements for other foundations.

In a letter addressed to the United States Senate Committee on Finance, President Shirley Ann Jackson responded to questions posed by senators at the end of January, outlining the areas in which the Institute spends its endowment.

RPI currently provides 88 percent of its undergraduates with some form of financial aid. Jackson explained in her letter how this aid is awarded after taking into account many factors including previous year’s tax returns, siblings in college, age of parents, and family size.

In this coming year, Rensselaer expects its students to receive $125 million in student financial aid from all sources—$77 million of this amount will come directly from Rensselaer’s own funds. In addition, the Institute maintains a fund of $750,000 annually for those students who may experience a financial hardship such as the death of a parent, property destruction, or family loss of income. Jackson described in the letter that all institutional aid provided to students is guaranteed.

Jackson continued by describing the many outreach programs that Rensselaer’s admissions uses. These programs are mainly targeted toward potential low-income students and include The Science, Technology, Arts, and Architecture at Rensselaer (STAR) Program, NYC Shuttle Service, high school visits, Summer @ Rensselaer, and more. The STAR program provides high school seniors with a chance to experience campus life at Rensselaer, including attending classes with their student hosts, panel discussions with students, and tours. The other programs work to spark the interest of high school students to attend the Institute by offering academic and summer interest sessions.

The Board of Trustees has the responsibility regarding all decisions that affect the endowment of Rensselaer. From 2001 to 2007 the endowment spending remained level around $30 million; however, the spending did spike in 2005 to $50.4 million. This spending policy is reviewed annually, and will be reviewed on May 15, 2008, at the meeting of the Investment Committee of the Board of Trustees.

In addition to endowment spending, tuition rates are also reviewed annually. The increases in tuition rates are recommended by an institutional committee. Recommendations are reviewed by the president and brought to the Board of Trustees. The Institute’s tuition was $21,030 in 1998 and increased to $34,900 in 2007.

Jackson clearly explained that “no relationship exists between the compensation of Rensselaer’s president and the size and growth of its endowment.” Jackson’s current compensation is $874,928 plus $333,220 in benefits and deferred compensation.

Vice President for Finance Virginia Gregg explains, “In total, we provide roughly the same amount of financial aid to our students as [Massachusetts Institute of Technology] does to their students, and our endowment is a lot smaller than MIT’s.” Gregg emphasized the importance of finding a balance between aiding current students and saving enough as to ensure that future students will receive financial aid.