March 29, 2016

The Honorable Orrin Hatch

Chairman, Committee on Finance
United States Senate
Washington, D.C. 20510
The Honorable Kevin Brady
Chairman, Committee on Ways and Means
United States House of Representatives
Washington, D.C. 20510
The Honorable Peter Roskam
Chairman, Oversight Subcommittee, Committee on Ways and Means
United States House of Representatives
Washington, D.C. 20510
Dear Senator Hatch and Representatives Brady and Roskam,
I am pleased to submit Duke Universitys response to your letter of February 8, 2016, which
posed a number of questions about university endowments and their relationship to access and
affordability of a postsecondary education.
Like many educational, cultural and health care institutions, Duke relies on an endowment to
provide a permanent source of financial support for a wide range of activities, including student
financial aid, faculty scholarship, programs and facilities. Income from this endowment, which
is built on more than 90 years of contributions from donors, as well as the appreciation in value
from their philanthropy, makes it possible for Duke to provide the highest educational experience
for students from all socioeconomic backgrounds.
Duke is one of a small number of institutions that are need-blind in admissions for U.S.
citizensthat is, we admit students without regard to their ability to payand meet the full
demonstrated financial need of students until they graduate. Today, more than 50% of all Duke
undergraduates receive some form of assistance to help pay for their education, with an average
aid package of $40,737 per student. Dukes commitment to access and affordability represents
an investment of more than $130 million last yeartriple the investment the university made ten
years ago. In addition, Duke has sought to reduce the reliance on loans for all students. Those
students who graduate with outstanding loans (36% of the class of 2015) have an average debt of
about $20,556 about half the national average.

Senator Hatch and Representatives Brady and Roskam

March 29, 2016
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The university endowment supports more than financial aid. Income from investments helps
Duke recruit and retain world-class faculty who teach and do groundbreaking research. It
provides stable support for our libraries, underwrites research in our medical school, makes it
possible for our student-athletes to compete at the highest levels, and ensures that the university
and the community have free access to our art museum, among many other activities.
We take pride in prudent management and judicious spending of the resources that have been
entrusted to us by donors. This approach has enabled Duke to weather near-catastrophic
situations, such as the crisis of 2008, when the Duke University endowment lost 25% of its
value. During that time, Duke did not reduce its support for student financial aid. The stronger
environment of recent years has strengthened the university for future generations. In short, the
endowment is the foundation upon which the modern private research university is built and has
prospered.
On the following pages, you will find the answers to your specific questions. I hope this
information will be helpful to you as you seek to gain a comprehensive understanding of this
essential support for our educational mission. Please feel free to contact Chris Simmons,
Associate Vice President of Government Relations, at 919.668.6270 if you need any clarification
or additional information.
Sincerely,

Richard H. Brodhead