The current financial crisis has reached a point to where even local colleges are beginning to feel the crunch. As more students are in need of financial assistance, the schools are dealing with shrinking endowments. With these endowments, which fund up to a quarter of the schools costs, bringing in smaller returns, the schools are having to rework budgets.

"Everyone's feeling pressure," says Will McLean, Northwestern's chief investment officer. The university's $7.2-billion endowment, which funds almost 20% of school operations, produced returns of 3% during the 12 months ended in August, compared with 22% in the year-earlier period. more ›