Cornell Takes $1.4B Hit To Endowment, Announces Cuts And Ups Tuition (NY Daily News)

"Cornell University hemorrhaged more than a quarter of its endowment in the past six months - roughly $1.45 billion - and will slash budgets and hike tuition to shore up, NY Daily News reports. "The Ivy League university, which has about 20,000 students, is drawing down $35 million from its endowment to maintain financial aid levels. The university has also imposed an external hiring freeze, and faculty and nonunion staff will have to go without raises next year. Employees who make less than $40,000 will get a $750 bonus. Another 5% cut at the Ithaca campus is slated for the following academic year. The university will draw on $150 million over the next two years to provide the cash flow necessary to operate." A halt in construction established in the fall will continue through June.

You can read the complete January 26, 2009 NY Daily News article on-line.

We are seeing this more and more often. How will this affect tuition, services and most importantly, the education provided to students enrolled?