Bloomberg Philanthropies / John Hopkins University
Michael R. Bloomberg and Johns Hopkins University announced an unprecedented $1.8 billion philanthropic commitment, representing the largest ever contribution to an academic institution in American history. The historic gift will be devoted exclusively to undergraduate financial aid at one of the world's leading education, research and patient care institutions, allowing Johns Hopkins University to permanently commit to need-blind admissions and ensure unparalleled educational opportunities for the next generation of global leaders.
"America is at its best when we reward people based on the quality of their work, not the size of their pocketbook. Denying students entry to a college based on their ability to pay undermines equal opportunity. It perpetuates intergenerational poverty. And it strikes at the heart of the American dream: the idea that every person, from every community, has the chance to rise based on merit," said Bloomberg. "Now, I want to be sure the school that gave me a chance will be able to permanently open that same door of opportunity for generations of talented students, regardless of their ability to pay. I am donating an additional $1.8 billion to Hopkins that will be used solely for financial aid to low and middle income students. That will make admissions at Hopkins forever need blind. It will allow the school to offer more generous scholarships. It will ease the burden of student debt for many graduates. And it will help open up the American dream to more young people."
At dozens of selective colleges, there are more students from incomes in the top one percent than there are from the bottom 60 percent, even though many middle and lower-income students have the qualifications to get in, according to a New York Times analysis. Schools without the funds to support need-blind admissions policies deny seats to middle and low-income, high achieving students, impeding social mobility and creating barriers in cultivating talent from every background. Studies show that high achieving students who attend the most selective colleges -- no matter what their family's background -- have similar graduation rates and career earnings. Making matters worse, middle and low-income students who are qualified to get loans are burdened by debt upon graduation, exacerbating income inequality. There is a total of $1.5 trillion in outstanding student loans in the U.S., making it the second-largest consumer debt segment in the country after mortgages, according to the Federal Reserve.
By building an extraordinary financial aid program to fuel student access and mobility, Johns Hopkins will rank among the top ten universities in per student financial aid support, with a focus on first generation/low-income (FLI) students and taking up the often overlooked challenge of access for middle-income students as well.
"Our university was founded in 1876 by a visionary $7 million gift from the Baltimore merchant Johns Hopkins. When it was announced, it was the largest gift of its kind. It created America's first research university and changed the face of American higher education. With today's announcement of Mike Bloomberg's $1.8 billion investment in financial aid, history has repeated itself," said Ronald J. Daniels, Johns Hopkins University President. "Hopkins has received a gift that is unprecedented and transformative. This gift powerfully affirms Mike's belief in the promise of this country and the power of accessible higher education. We are truly blessed."
"Mike Bloomberg's historic contribution will open the doors wider to college for talented students from every background," said John B. King Jr., former United States Secretary of Education. "It also sends a message that all of us can and must do more to ensure that higher education fulfills its responsibility to be an engine of economic mobility for students from every background."
"Johns Hopkins is profoundly grateful to Mike Bloomberg for his unbounded vision and generosity," said Jeffrey Aronson, Chair of the Johns Hopkins University Board of Trustees. "Like his alma mater, Mike strives to make the world a better place, always leading by example. His unparalleled gift opens up a world of equal opportunity for generations of Hopkins students to come."
As a direct result of the Bloomberg commitment, Johns Hopkins University will be able to implement the following changes to its admissions and financial aid practices, effective fall semester 2019:
- Become permanently need-blind. This endowment will allow the University to permanently commit to need-blind admissions, admitting the highest achieving students from all backgrounds, regardless of their ability to pay.
- Offer no-loan financial aid packages. Currently, 44% of Johns Hopkins students graduate with some form of loan debt, averaging more than $24,000. Student loans will now be eliminated from financial aid packages and replaced with scholarships that do not need to be repaid, providing more support to students at a time when a college education is becoming harder for families to afford.
-Reduce family contributions. The financial burden placed on working families will be eased by reducing what families who qualify for financial aid have to pay towards their child's education. This is particularly meaningful in middle and low income families trying to balance tuition for multiple children.
- Provide comprehensive student support. Johns Hopkins will dramatically increase recruitment and programs for first generation and lower-income students, including support for research experiences, internships, and study abroad.
-Increase Enrollment of Pell Eligible Students. Johns Hopkins will build a more socioeconomically diverse student body, with low-income students who qualify for federal Pell Grants comprising at least one fifth of the student body by 2023.