Thomas J. Botzman, president, Misericordia University (PA), writes: Higher education purposely operates at a loss. When we add tuition, fees and room and board to state and federal assistance grants and loans, revenue typically does not equal our cost of doing business. Donors who support future students often bridge the resulting deficit. Donors fund scholarships that subsidize students’ education decades later. Universities only spend a given portion of the scholarship earnings, thereby preserving the initial investment.