Felix Salmon:

Peter Cooper understood this well. A wealthy man, he owned a lot of land in Manhattan — including the land underneath what is now the Chrysler Building — and he knew that land would, literally, produce healthy rents in perpetuity. A philanthropist, Cooper knew exactly what he wanted those rents to be spent on: he created the Cooper Union, a college with the defining characteristic that it would charge its students nothing. It was — and is — a noble cause. And in the early days, its trustees quite literally bought into that cause: they helped out with its endowment, and covered its deficits in years where it lost money.
Cooper understood that free education doesn’t really scale. If you’re charging, then extra students provide extra income which can pay for extra teachers and administrators and buildings. But if you’re giving education away for free, then it’s imperative that you operate strictly within your means. The only way to grow is if you persuade some new generations of wealthy benefactors to contribute their own money or land. But at Cooper Union, that hasn’t happened for many decades.
As a result, Cooper Union has always been an extremely special educational institution, the kind of place where a little went a very long way. The faculty was not well paid; the facilities were bare-bones. But the students were fantastic, because Cooper could pick the very best of the very best. And the college’s overriding social mission engendered a huge amount of loyalty and love for the institution, as well as being reflected deep in its curricula. Here’s Sangamithra Iyer, for instance: