### Question
How is the term endowment fund defined?


### Answer
The term **endowment fund** is defined in *20 U.S.C. § 1065* as the following:

> a fund established by State law, by an institution of higher education, or by a foundation which is exempt from taxation and is maintained for the purpose of generating income for the support of the institution, but which shall not include real estate

#### Citation:
  - *20 U.S.C. § 1065*
  - Heading: **CHAPTER 27-NATIONAL VOCATIONAL STUDENT LOAN INSURANCE > SUBCHAPTER III-INSTITUTIONAL AID > Part C-Endowment Challenge Grants for Institutions Eligible for Assistance Under Part A or Part B**

