Yale University, which is hailed as the second most effluent university, has not been unaffected by the global financial crisis. The university's endowment has fallen 25%. In other words, it has fallen to $ 17 billion since June. This has resulted in ceiling on pay raise and a financial cut close to $100 million.

The University's has suffered a loss of about %5.9 billion. Harvard University in Cambridge, Massachusetts stated that it had suffered a loss of 22% i. e. $8 billion. The University of Virginia, Barnard College and Swarthmore College are few other schools to have suffered endowment declines.

Yale's endowment had reached $20billion in 23 years under the chief investment officer, David Swensen.

Yale plans to cut other expenses 10 percent over two years. This includes reduction in expenditure on consultants, travel and energy. The university also plans to delay construction of the Yale Biology Building for a year. The same would be applicable to construction of new campus for the business school and expansion of the art museum, which will also be postponed until funding becomes available.

The University is also adopting other measures to bridge the gap in the budget. The school will slow increases in salaries by capping annual raises at $1,500 for faculty and staff earning more than $75,000. There will also be fiscal cut in 2010 budgets for non-faculty staff pay, by 5 percent through attrition.