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Blockchain Association Supports Custodia Bank’s Supreme Court Challenge To Fed Master Account Denial


The Blockchain Association has stepped forward to support Custodia Bank in its bid for US Supreme Court review of a long-running dispute with the Federal Reserve over access to a master account.

In an amicus brief filed this week, the crypto industry group urges the justices to examine whether regional Federal Reserve banks hold broad discretion to reject applications from eligible, state-chartered institutions.

Custodia, a Wyoming-chartered special-purpose depository institution founded by Caitlin Long and focused on serving digital-asset clients, first sought a master account from the Federal Reserve Bank of Kansas City in October 2020.

Such an account provides direct entry to the central bank’s payment systems, including Fedwire and related settlement services, which are essential infrastructure for modern banking.

Without one, institutions must rely on correspondent banks, adding costs, delays, counterparty risks, and the threat that a intermediary could terminate the relationship.

The Kansas City Fed denied the application in January 2023, pointing to risks tied to Custodia’s crypto-oriented business model.

Custodia sued, arguing that the Monetary Control Act of 1980 requires the Fed to make its services available to eligible nonmember depository institutions.

Lower courts disagreed. A district court ruled against the bank in 2024.

A divided Tenth Circuit panel affirmed in late 2025, holding that regional Reserve Banks retain discretion to approve or deny master accounts.

The full appeals court then declined en banc rehearing by a 7-3 vote in March 2026.

Custodia petitioned the Supreme Court last month, asking it to clarify the scope of that statutory language and the limits of administrative discretion.

In its friend-of-the-court brief, the Blockchain Association contends the Tenth Circuit’s approach grants the Fed unprecedented power that could undermine the dual banking system, in which states traditionally charter institutions alongside federal authorities.

The group argues that allowing regional banks unchecked authority to deny master accounts effectively lets federal officials veto state-approved models serving lawful industries.

It points to past regulatory efforts that restricted banking access for digital asset firms and warns that the lower-court reasoning could serve as a template for excluding other disfavored sectors without meaningful oversight.

The association stresses that master accounts are vital for settling payments efficiently and that no lawful business should be shut out of core financial infrastructure through regulatory pressure or discretionary gatekeeping. Access on equal terms, it maintains, is necessary for digital-asset companies to compete fairly.

While the Fed has explored limited alternatives, such as narrower payment accounts, the brief describes these as inadequate substitutes for full master-account privileges.

The case carries implications beyond one institution.

A Supreme Court decision could shape how state-chartered banks focused on innovation access the national payments system and how far federal agencies may go in managing perceived risks.

The Kansas City Fed has been given until mid-September to respond to the petition.

Meanwhile, limited-purpose arrangements, such as one recently granted to another crypto-related firm, illustrate that some pathways exist but remain constrained.

By supporting Custodia’s petition, the Blockchain Association seeks to ensure that essential banking services remain available based on legal eligibility rather than policy preferences, preserving competitive balance and state regulatory roles in the financial system.



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Why Agentic AI Could Transform Procurement



<p>The combination of economic visibility, process structure, and persistent friction make it a huge opportunity.</p>

ESG Scores Miss What Matters: Can Companies Adapt?


Bril, H., & Schramade, W. (2023). Strengthening investment portfolios through resilience – A primer [Working paper]. SSRN.

DesJardine, M., Bansal, P., & Yang, Y. (2019). Bouncing back: Building resilience through social and environmental practices in the context of the 2008 global financial crisis. Journal of Management, 45(4), 1434–1460.

Holling, C. S. (1973). Resilience and stability of ecological systems. Annual Review of Ecology and Systematics, 4(1), 1–23.

Kim, H., Li, N., Feldman, R., Feldman, Y., & Liu, Y. (2026). What sustainability disclosures disclose (Coase-Sandor Institute for Law and Economics Research Paper No. 26-7) [Working paper]. University of Chicago Law School.

Ortiz-de-Mandojana, N., & Bansal, P. (2016). The long-term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615–1631.

Prayag, G., Chowdhury, M., Spector, S., & Orchiston, C. (2018). Organizational resilience and financial performance. Annals of Tourism Research, 73, 193–196.

Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.

World Economic Forum. (2023). Global risks report 2023.

Buried in OpenAI’s latest research: No correlation between AI use and revenue per employee



Welcome to Eye on AI. Emily Forlini here, filling in for Jeremy one last time as his vacation comes to a close. In today’s issue:

  • Juicy details OpenAI doesn’t want you to see in its new report
  • Anthropic reportedly plans a $2 trillion IPO in October—the largest ever
  • OpenAI replaces its chief revenue officer after less than a year
  • Google pronounces Sam Altman dead—for 41 minutes

It really sunk in for me this week just how much money is flowing in the AI industry.

I spoke with two former OpenAI employees who made about $10 million in a day by selling shares in an internal tender offer, which Bloomberg reports totaled $7 billion across the staff. Then, this morning, on Fortune‘s weekly AI podcast, my coworker Beatrice Nolan and I interviewed the CEO of Lovable. This week, the old Stockholm-based firm, which is only three years old, doubled its valuation to $13.3 billion.

A couple million, a hundred billion, a trillion (or two, in the case of Anthropic’s upcoming IPO)—what’s the difference at this point? There’s just one big problem looming in the background: The ROI of AI adoption is still not clear for companies.

OpenAI grapples with this existential question in a 69-page report published on August 11 on the enterprise adoption of ChatGPT. On its face, the report tells the a story of exponential AI usage growth across all seniority levels and job functions, highlighting what it calls a “frontier gap,” in which companies who are using AI are pulling ahead of those who aren’t. In other words, if you’re not using AI—especially agents you can delegate tasks to—you’re losing.

But the fine print tells a different story.

More AI doesn’t mean more money

In one small table on page 35, the researchers report no statistically significant correlation between the revenue per employee, and how much those employees use AI, measured in messages sent and tokens used.

“Revenue per employee is not meaningfully associated with output tokens per employee or messages per active user once other controls are included,” the report explains.

It says that companies that already have higher revenue per employee tend to be early ChatGPT adopters. Also, companies that use the tech more tend to have higher revenue per employee in general. In other words, big, lucrative companies are more likely to have hopped on the AI train. However, the study doesn’t clearly establish that the more AI they use, the more money they make.

Executives are using AI the least

Executives may not be best equipped to gauge ROI because they are using it the least—another nugget buried in the report. It’s not just that companies have fewer executives than they do general employees. But what’s interesting about the graph on page 29 is that most senior employees are using it less intensely, with the least weekly messages per user.

Early career employees have by far the most usage, a point OpenAI CFO Sarah Friar highlighted in her LinkedIn post about the report: “For leaders, that’s a reminder that competitive advantage comes from the people closest to the work. Listen to them, learn from them, and help the rest of the organization catch up.”

OpenAI’s enterprise sales had a rough Q4’2025

Surprisingly, OpenAI’s overall usage within enterprises completely flatlined from about October 2025 to December 2025. In a graph (page 26) depicting output token growth, the black line representing “total” growth is almost perfectly flat for that time period. During this time, Anthropic’s Claude Code was taking the corporate world by a storm, becoming the go-to platform at many places.

To the company’s credit, in January 2026, the line thrusts upward into an exponential curve. As one VC told me yesterday, “OpenAI’s run rate in 2026 has been pretty incredible.” OpenAI attributes the growth not only to adding new clients, but also also to its current clients deepening their use. We also know CEO Sam Altman has been reorganizing the company around enterprise sales, and killing what the company called “side quests,” such as the video app Sora.

In a sprint to accelerate this line—Or, maybe to get it going again? Who knows, the graph ends at March 2026—OpenAI today announced it hired a new Chief Revenue Officer, Dali Rajic, who will replace Denise Dresser. It’s an aggressive move; Dresser held the role for less than one year. Rajic’s focus will be accelerating customer adoption and helping businesses measure impact as the company sprints towards its IPO.

OpenAI paid the academics who contributed to the report

Lastly, two of the five authors are academics that OpenAI paid to help with the report. The other three are OpenAI employees. Including academics in a paper like this typically implies greater credibility and the impartiality of an outside research institution, but the waters are a little muddier here.

On the first page, David Holtz and Prasanna Tambe are affiliated with Columbia Business School and Wharton at the University of Pennsylvania, respectively. But a footnote specifies that both “contributed to this work in their capacity as paid contractors for OpenAI.”

Did the researchers find more that they didn’t publish, as they typically would for an academic paper? We’ll never know, but it’s another reminder of what has always been true: You’ll have to measure AI’s impact based on your own first-hand experience—not the hype.

With that, here’s more AI news.

Emily Forlini
emily.forlini@fortune.com
@emilyforlini

FORTUNE ON AI

Microsoft begins to merge consumer and enterprise Copilot apps in push for super app — by Sebastian Herrera

CoreWeave CEO Michael Intrator cites ‘sold out’ capacity as revenue more than doubles and backlog swells to $104 billion — by Amanda Gerut

When OpenAI employees have a problem, they email this special address to see if Sam Altman will solve it immediately — by Emily Forlini

CIOs and CTOs spent years lauding AI. Now, with costs rising, they’re putting limits on how it’s used — by John Kell

Forget the gala, these Silicon Valley schools run their own venture capital funds — by Amanda Gerut

AI IN THE NEWS

Anthropic plans $2 trillion IPO, possibly in October. It would be the largest ever on record, eclipsing SpaceX, but the valuation and IPO timing are not yet finalized. Investors believe the AI lab’s annual revenue run rate will be between $100 billion and $120 billion by the end of the year. More in The Financial Times.

Lovable raises $400 million, doubles valuation to $13.3 billion. The vibe-coding startup is only three years old. It plans to use the funds for expansion, including growing its workforce and expanding its Latin American customer base. It also plans to implement strong safety and security. More in The Wall Street Journal.

OpenAI’s chief revenue officer is out after less than a year. The company has hired Dali Rajic to replace Denise Dresser, who says she left on her own accord to pursue other ventures. Many interpret the move as coming from the growing presence of co-founder and president Greg Brockman as the company gears up for a potential IPO. More from OpenAI.

EYE ON AI NUMBERS

41

Lifespan of OpenAI CEO Sam Altman, according to Google’s botched algorithm. On Wednesday, the search giant proclaimed Altman dead, adding a death date of August 12, 2026 to the fact panel it displayed at the top of its search results. That same panel said Altman was still the current CEO of OpenAI. Hard to do from the grave, but we’ve seen crazier things in AI. Maybe it’s a premonition for future CEOs who carry on through AI avatar reproductions of themselves.

Someone had apparently vandalized Altman’s Wikipedia page, claiming he was assassinated in Seattle.  The malefactor re-wrote the entire introduction to Altman’s Wiki entry in the past tense, according to Gadget Review. Wikipedia’s automated tools flagged the change, and a human editor fixed it 41 minutes later—one minute for each of Altman’s supposed years of life.

Google responded on X after the incident, saying, “When people vandalize public info sources, this can affect the information that appears in Search.” It’s a silly, but stark, reminder of how fragile the internet’s information ecosystem is. Some blame Wikipedia for allowing rogue editors, while others say Google’s on the hook for choosing to display inaccurate information. It’s unclear if Google would have caught the issue on its own, in 41 minutes or less.

AI CALENDAR

Nov. 16-17: Fortune 500 Innovation Forum, Detroit. Apply here to attend.

Dec. 6-12: Neural Information Processing Systems (Neurips) conference. Sydney, Australia.

Dec. 7-8: Fortune Brainstorm AI, San Francisco. Apply here to attend.

Targeted Chase Offers: 175K Sapphire Reserve, 125K Sapphire Preferred & More


Targeted Offers for Chase Cards

Chase is targeting select customers with increased welcome offers on several credit cards, and some of the bonuses are significantly better than what’s currently available publicly.

These offers were first reported at DoC, and they’re showing up in the Chase app and online while logged into an account. You can also try Chase’s pre-approval tool, although there’s no guarantee you’ll be targeted.

Some of the offers reported include:

  • Chase Sapphire Reserve®: 175,000 Ultimate Rewards points after $6,000 in spending. The current public offer is 100,000 points.
  • Chase Sapphire Preferred® Card: 125,000 Ultimate Rewards points. The current public offer is 75,000 points.
  • Chase Freedom Unlimited®: $300 bonus, compared with the current $200 public offer.

The Sapphire offers are the best we have seen. The Sapphire Reserve was recently available publicly with a 150,000-point bonus, while Sapphire Preferred recently offered 100,000 points, meaning these targeted offers are even better than those recent elevated bonuses.

There’s no direct link that guarantees these offers. Check your Chase app homepage, log into your Chase account online, and consider checking Chase’s pre-approval tool to see what shows up for you.

Guru’s Wrap-up

These are excellent targeted offers, particularly 175K for Sapphire Reserve and 125K for Sapphire Preferred. If you’re considering either card, it’s definitely worth checking your Chase account and pre-approved offers before applying through a public link.

The questions brokers should ask before committing to a non-QM lender


“The life of the loan matters and your ability to go back to that borrower and refinance that borrower matters,” he said. “So who you’re doing that loan with matters. Not all non-QM is created equal. Just because we all offer DSCR loans doesn’t mean that we all do them the same way, and it does not mean that we are all going to treat your borrower with the same respect as you would.”

Pearson said he has spoken with brokers who found out too late that their lender had made assumptions about investor guidelines that turned out to be wrong, leaving them with nowhere to turn.

“I’ve literally talked to clients that are desperate and frustrated because they’re almost out of contract,” he said. “They went to a lender that, on paper, black and white, promised certain criteria and found out they didn’t understand and comprehend their investor guidelines. They made assumptions, printed assumptions, collected originations based on assumptions and found out they couldn’t do anything. They couldn’t close the loans. They couldn’t honor the locks.”

The education gap

Pearson said the concentration of lenders who cannot fulfill their promises is partly a product of how quickly the market grew, with volume growth attracting new entrants who understood the product at a surface level but did not have the infrastructure to back it up.

He said part of that gap traces back to how new originators enter the business. Non-QM products are not covered in SAFE licensing courses, which means a broker’s introduction to non-QM depends almost entirely on where they land and who they learn from.

ChatGPT Is Giving Personal Finance Tips — Where It Goes Wrong


Key Takeaways

  • Americans are increasingly using AI chatbots for everyday financial guidance.
  • In a recent JD Power financial health survey of 4,000 people, 40% said they had used AI to manage their money in the previous three months.
  • AI chatbots fall short in nuanced situations; one of the central risks of using AI for financial guidance is that the tool can confidently hallucinate, or invent sources and information.

Turning to AI for financial advice? You’re not alone. However, experts urge caution when tapping into the technology for consequential decisions. 

Finance experts recently told NPR that AI tends to be useful at two extremes. On the one hand, it can handle basic finance questions reasonably well. On the other hand, it can be helpful for experienced users who know how to provide detailed personal information and write highly specific prompts.

The problem is that many real-life financial questions fall within a gray area somewhere in the middle. Those situations can be more nuanced, and that’s where AI can get things wrong. 

Danielle Harrison, founder of Harrison Financial Planning in Columbia, Missouri, put an AI model to the test after her husband joined her firm. She asked how the two should structure the business.

At first, the tool was emphatic: “You need to be an S corporation,” it told her, referring to a business structure that can offer certain tax advantages.

But as Harrison continued the conversation and supplied more details, the AI reversed its recommendation. It ultimately said they should form an LLC instead.

“If I had not had that background knowledge, it would have given me the wrong information,” Harrison told NPR.

That is one of the central risks of using AI for financial guidance. The tool can confidently hallucinate, or invent sources and information. It can also make flawed assumptions because it lacks key details about a person’s circumstances. 

AI is improving

Sharon Bloodworth, CEO of White Oaks Wealth Advisors, which has offices in Minneapolis and Sarasota, Florida, said AI has been wrong more often than right in her experience.

Still, she believes the technology will improve and could eventually expand access to financial guidance for people who cannot afford or easily find a human adviser.

“Ignoring it would be almost like saying, ‘Don’t pick up a calculator’ or ‘Don’t get into a car, and just still ride a horse,’” she told NPR.

Many Americans are turning to AI for help with their finances. In a recent JD Power financial health survey of 4,000 people, 40% said they had used AI to manage their money in the previous three months. More than one-third said the guidance helped them make better financial decisions, a share on par with people who said their bank’s advice was useful.

For David Kendrick, a 53-year-old IT manager in Dayton, Ohio, ChatGPT has become a regular part of his financial routine. He uses it so often that he has given it a nickname: “Chatty.”

Kendrick has asked Chatty about everything from managing his home equity line of credit to deciding what to do with a recent raise. Should he use the extra income to pay down debt, or put it into his Roth IRA?

Chatty recommended the Roth. Kendrick took the advice.

He still meets with a human financial adviser once a year. But he says the ability to ask questions whenever they come up has eased some of his long-running money worries. “This very much helped,” he told NPR.

Key Takeaways

  • Americans are increasingly using AI chatbots for everyday financial guidance.
  • In a recent JD Power financial health survey of 4,000 people, 40% said they had used AI to manage their money in the previous three months.
  • AI chatbots fall short in nuanced situations; one of the central risks of using AI for financial guidance is that the tool can confidently hallucinate, or invent sources and information.

Turning to AI for financial advice? You’re not alone. However, experts urge caution when tapping into the technology for consequential decisions. 

Finance experts recently told NPR that AI tends to be useful at two extremes. On the one hand, it can handle basic finance questions reasonably well. On the other hand, it can be helpful for experienced users who know how to provide detailed personal information and write highly specific prompts.

The problem is that many real-life financial questions fall within a gray area somewhere in the middle. Those situations can be more nuanced, and that’s where AI can get things wrong. 

6 Reasons to Study Business Management in UK for Career Success and Global Exposure! #studyinuk



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✅Fourth, studying business management in the UK can provide you with excellent networking opportunities, as you will have the chance to connect with industry leaders and business professionals. Fifth, the UK is a hub for entrepreneurship and innovation, providing you with the skills and knowledge you need to launch your own business or lead a successful career in the industry. Finally, studying in the UK can help you build a strong foundation in business management, setting you up for long-term career success.

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Why Inland College Towns Are Real Estate’s Hottest Overlooked Sector


You’re about to get schooled on where to invest—literally. Turns out one of the best places to park your real estate investment dollars is near the halls of higher education. But not in just any college town, however; the best investments are in inland towns. 

Why so specific? That’s according to the data experts at Redfin, who have crunched the numbers and seen some startling trends.

Yingqi Xu, Redfin’s senior economist, said in the Redfin press release:

“Many of the college towns with home prices rising the fastest are also among the most affordable places to buy a home right now. That combination is attracting buyers who have been priced out of larger metros, while universities continue to provide a reliable foundation of demand. Meanwhile, many of the most expensive college towns are experiencing price declines as high mortgage rates and elevated home prices make buyers there more cautious.”

College towns bucking national trends include Morgantown, West Virginia, home of West Virginia University; Syracuse, New York, where you’ll find Syracuse University; and Tuscaloosa, Alabama, where the University of Alabama is, all of which are anchored by large universities and have enjoyed double-digit home price increases, according to a Redfin analysis of MLS data from the three months ending May 26.

The criteria analysis was as follows:

  • A U.S.-based college town with a minimum student population of 10%.
  • Students must be enrolled in a four-year, accredited university.
  • It must be at least 30 miles away from a metro with a population of over 1 million.

Other college towns that made it to the top of the list include State College, Pennsylvania (Pennsylvania State University), where homes went under contract in just five days, compared with 49 days nationwide. The double-digit home price increases (State College saw a 10.6% year-over-year gain to $459,050 in May) mean that in many places, affordability is getting squeezed.

Why College Towns Are So Appealing

Part of the appeal for towns hosting major colleges is the high rate of enrollment. According to a March 2026 student housing market update from real estate consulting firm Capright, total U.S. college enrollment reached 19.4 million students in fall 2025, a 1% year-over-year increase and the highest level since 2018.

Consistent enrollment translates into ongoing demand for housing, with 52.3% of student beds across Capright’s tracked campuses already leased for the 2026-2027 academic year, up from 45.6% from the previous year. This doesn’t include the off-campus accommodation often preferred by non-freshman students and those studying postgraduate degrees, as well as the many staff employed by the universities and numerous tertiary businesses based around the campuses, such as retail and medical centers.

This was reinforced by real estate software management company RealPage, which tracks student housing nationally. It found that properties more than a mile from campus had 39.3% of beds pre-leased by January.

“Things are really looking up for some of the largest universities in the country, especially in the South,” Capright director Jonathan Rivera said in a March student housing update. “You’re seeing a lot of population growth, which has helped to grow a lot of universities. Student housing is a subset of housing generally, and it will continue to be in high demand while the amount of housing continues to be constrained.”

Parallels With the National Housing Market

The most affordable college towns in the country share a parallel with the national housing market, where the best deals are to be found in the Midwest and South. 

According to Redfin’s July 2026 report, Dayton, Ohio (Wright State University and the University of Dayton); Syracuse, New York; and Mount Pleasant, Michigan (Central Michigan University), all have median house prices under $185,000, although only Syracuse has enjoyed 12.5% home sale growth, while the others have seen declines.

Part of Syracuse’s growth may be due to technological and manufacturing investment. Micron, a designer and manufacturer of computer memory and data storage chips, has agreed to invest $250 billion in the area through 2035. This is largely fueled by the rising demand for memory in the AI era, the company says. 

Policy Shifts and the Opening for Small Landlords

The recent government policy shift to bar corporate investors that own over 350 single-family houses from buying homes has been criticized in some quarters for not moving the needle enough on single-family housing, as small investors already own the majority. However, student housing is where the policy could have an effect.

For smaller buyers, the practical effect means that deep-pocketed institutions will be constrained from snapping up single-family homes in tenant-heavy college towns for buying and holding. Though they will still be allowed to buy, fix up, and sell, this leaves a gaping opportunity in many markets.

The Strategy for Mom-and-Pop Investors in Inland College Markets

Redfin’s college-town study is a good place to start looking for future investments. Pinpointing affordable markets with high price growth and planned development (such as Syracuse), along with studying stats from RealPage and Capright, allows landlords to gauge occupancy over the next year. This enables a fairly accurate projection of cash flow targets.

Capright estimates that national student housing cap rates currently sit in the 5.5% to 6.5% range, roughly 25 to 50 basis points higher than conventional multifamily, which translates into better yields for small investors comfortable with managing yearly turnover and leasing cycles attuned to the academic year.

Part of the appeal for single-family student housing is the ability for small landlords to rent by the room, thus boosting cash flow beyond usual single-tenant occupancy. It requires specialized leases, parental guarantees, and careful property management to ensure all tenants pay their way and those who don’t can be replaced or have their feet held to the fire by contacting their parents or evicting.

Don’t Conflate High Demand with a Good Investment

One thing many student housing reports fail to mention is that a university’s enrollment is often tied to its academic success, so investors need to look at academic trends, outside corporate investment (for example, Alphabet and Nvidia are investors in Carnegie Mellon’s computer science program) or collaboration with major companies, as well as stats on grads who find high-paying jobs.

However, be careful about conflating high-performing, high-demand universities with being good investments. A city like Boston, for example, has numerous noted universities, and housing is always in demand. However, the city’s real estate prices make these places bad cash flow buys if you are leveraging.

Final Thoughts

For savvy landlords who can offer a well-furnished, curated student experience akin to a quality Airbnb, provided they screen meticulously, there may be an opportunity to capitalize on the malaise facing conventional crowded student accommodation. 

The recent third annual State of the Student Housing Industry Report by StarRez, an on- and off-campus student housing software solutions company, highlighted housing-related stress and tenant conflicts affecting mental health as major concerns in standard student accommodation. Jason Day, CEO of StarRez, said in a press release:

“Today, student housing teams are being asked to do more than ever: manage buildings at higher occupancy, support increasingly complex student needs, and make smarter financial and operational decisions, often with limited resources. What this year’s research makes clear is that the path forward is not simply about adding more capacity. It is about giving housing teams better visibility, more connected data, and the right technology to operate more proactively, reduce administrative burden, and create a stronger residential experience for every student.”

For landlords who can offer a “home away from home” living experience for responsible groups of student friends, they might be able to rent to students who want to guarantee a soft landing for their academic year—and might be willing to pay slightly more for the privilege.