Access
A commitment to making college affordable for all admitted students through a variety of practices and policies.
Building maintenance and equipment fund (BM&E)
A budgeted fund for meeting the College's unanticipated facilities and technology needs. Having this reserve fund enables Grinnell to stabilize the impact of multi-year, significant expenditures (for example, replacing a building's HVAC system, or replacing core IT systems).
Budget priorities
The guiding principles that determine how the College's operating budget is constructed. The budget priorities for fiscal year 2013 are:
- Remain committed to the College's financial aid policies.
- Continue investment in our human resources through increases to salary wage pools for faculty, staff, and students, and excellent benefits.
- Plan for and maintain the College's facilities.
- Focus on strategically building revenue-generating infrastructures.
- Foster a culture of innovation.
Demonstrated need
The difference between the cost of attending Grinnell and the amount of money a student's family is expected to pay for them to attend college for one year. Demonstrated need is calculated by taking Grinnell's annual comprehensive fee and subtracting the Expected Financial Contribution or EFC (Comprehensive fee – EFC = demonstrated need).
The College meets demonstrated need through financial aid, including grants, loans, scholarships, and employment.
Discount rate
Scholarships and grants provided by the College to a given class of students, as a percentage of the total amount of that class's tuition and fees. Scholarships and grants do not include loans or any financial aid that the student and their family receive from non-Grinnell sources (commercial lenders, private scholarships, etc.).
Early action
An early admission process that allows students to apply and be notified of a college's decision before normal application announcements. Early action applicants do not make a binding commitment to attend the college if admitted. Grinnell does not currently use early action.
Early decision
An early admission process that allows students to apply and be notified of a college's decision before normal application announcements. Early decision students enter into a binding commitment to attend the college if admitted.
Early notification
An admission process that allows students to apply by normal application deadlines but be notified of a college's decision earlier than other students who applied at the same time. Grinnell does not currently use early notification.
Endowment
Permanent funds invested to provide income for the College. “True” endowment is that portion of the funds restricted by donor mandate as to their use. “Quasi-endowment” is that portion of the funds functioning as endowment based upon Board of Trustee direction. Grinnell is unique in that more than two-thirds of its endowment is quasi-endowment. Grinnell's endowment currently pays for more than 50% of the College's annual costs. The endowment spending policy determines the amount of the endowment that can be spent each year and is designed to ensure the College can continue to count on a reliable stream of future support.
Endowment spending policy
An official guideline, established by the College's Board of Trustees, that determines the amount of monies to be taken from the endowment to support the institution. Grinnell's spending policy uses a spending rate that is tied to the endowment's average market value over the previous twelve quarters.
The endowment spending policy also governs how the College allocates this distribution. For example, Grinnell cannot allocate 100% of the distribution to the operating budget.
Factors that determine the allocation include revenue balance, expenditure discipline and facilities/strategic initiatives. Some of the money from the endowment is also set aside for strategic priorities.
Intergenerational equity is a concept generally associated with spending policies that states that current beneficiaries should be neither advantaged nor disadvantaged relative to future beneficiaries. In order to achieve intergenerational equity, the endowment or equivalent must in real terms (i.e. adjusted for inflation) maintain its value over a period of time.
Expected family contribution (EFC)
A calculation of the amount of money a student's family is expected to pay for them to attend college. It is not a simple calculation based solely on income. Instead, it is a comprehensive assessment of all available family resources and other factors such as the number of people in the household and the number of students currently in college. EFC is used to determine demonstrated need.
Grants, loans, and scholarships
Grants, loans, and scholarships are different types of financial aid. Grants and scholarships require no repayment, while loans assume repayment, though some have forgiveness clauses. Additional aid may be provided through student employment.
Indexed merit aid
An agreement to increase merit-based scholarships by the increase of our annual comprehensive fee. For example, a 3% increase in comprehensive fee = 3% increase in a merit scholarship. Grinnell is one of only a handful of schools nationally that index merit aid.
Investment asset allocation
The proportions of a portfolio invested among different asset classes (e.g., cash, bonds, stocks and alternatives) to find the optimal risk/reward mix. Alternatives include investments made via limited partnerships or similar structures and expected to contribute a higher return due to their illiquid nature. Specific examples of alternative strategies include private equity, venture capital, hedge funds, distressed (or private) debt, and real estate. The Investment Committee of the Board of Trustees oversees the asset allocation and approves all additions or changes to underlying strategies or managers.
Investment (endowment) expenses
Investment expenses include internal costs (e.g., compensation, custody fees/services, travel, etc. of the College’s investment office) and external fees paid directly to investment managers or embedded in alternative investment partnerships. Grinnell's total annual investment expenses typically amount to 1-2% of the College's average portfolio value.
The majority (70-80%) of fees on Grinnell's portfolio relate to alternative investment vehicles (for example, private equity, venture capital, hedge funds, distressed/private debt, and real estate). Unlike the fees charged on traditional stock or bond investments, these fees on alternative vehicles are not separable from the underlying investment strategy.
Investment policy
Approved by the Board of Trustees and maintained by the Investment Committee, the Investment Policy articulates the governance and implementation of the College’s investment strategies.
Investment (endowment) return
The amount that the fund earns from its investments, including both realized and unrealized capital gains (appreciation/depreciation) and income (dividends and interest), net of investment expenses.
Merit-based aid
Aid awarded to acknowledge one or more qualifications of importance to the institution (for example, talent or academic achievement).
Need-aware
The practice of considering an applicant's qualifications for admission alongside the family's financial resources and ability to pay. Some colleges may reserve some spots for well-qualified students who are also able to meet all or a large part of the college's comprehensive fee.
Need-based aid
Aid awarded to help meet demonstrated financial need. Grinnell meets 100% of demonstrated financial need.
Need-blind
The practice of considering each applicant's qualifications for admission without regard to the family's financial resources or ability to pay.
Operating reserve
A reserve fund that provides flexibility to respond to unanticipated budget demands throughout the year. It enables the College to quickly respond to emergencies and reduce the impact of unexpected costs.
Spending rate
The formula Grinnell uses to determine its endowment spending is set in our endowment spending policy.
Grinnell's current spending rate is 4% of a 12-quarter moving average of the endowment's market value, determined annually.
Strategic fund
A fund used to implement the strategic plan and encourage innovation.
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