US college endowments have suffered steep falls over the past four months, further squeezing universities already grappling with a drop-off in donations and dwindling federal and state support.

The University of Virginia’s endowment has fallen 20 per cent over the past four months, from $5.1bn (€4bn, £3.4bn) on June 30 to $4.2bn on October 31. Amherst College’s endowment – worth about $1.6bn this spring – dropped 25 per cent over that time.