U.S. College Endowments Lost 24 Percent in Six Months

Endowments have long provided an important lifeline for schools as these often use at least 5 percent a year to pay for salaries, maintain buildings and contribute to financial aid to help offset the considerable cost of attending private high schools and four year colleges.

Last year bets on US equities dealt endowments the biggest blow. "It was the stock market," Griswold said, noting that the Standard & Poor's 500 index lost about 38 percent in 2008. Larger schools were able to navigate the market slightly better, the report said, noting that schools with endowments of $1 billion or more lost 21.7 percent.