Priyanka Tiwari
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Harvard University has found itself at the epicenter of a mounting political and fiscal dispute after the Trump administration sanctioned more than $2.2 billion dollars in federal funding. This sanction was connected to claims that Harvard did not take sufficient steps to mitigate antisemitism on the campus and make ideological reforms, like changes in the hiring, governance, and admission policies.
Harvard University Responses
President Alan Garber made it unambiguously clear that in response to his demands Harvard will not be surrendering any of its constitutional protections or autonomy. The university head defied several of the proposals included:
Elimination of diversity offices
Ingle immigration screening for foreign students
Non-discriminatory admissions and employment policies to be implemented.
Garber characterized those proposals as attempts to impose an undue federal government stranglehold over the internal operations of Harvard.
What Is The Size Of Harvard’s Endowment
Harvard Endowment is famous for being the greatest and having reached a value of $53.2 billion dollars a figure no other university has reached.
Recognized as the largest Endowment of any university in the world, the Endowment also acts and is managed by the Harvard Management Company which functions like a hedge fund with investments throughout Wall Street, private equity, and even real estate.
In order to achieve financial sustainability, Harvard is withdrawing from the Endowment funds each year 4.5 percent to 5 percent of it, which is between $2.2 and $2.5 billion, mostly supporting more than a third of the operating budget. But most of the funding is restricted to specific research areas or departments.
Does Harvard Have The Ability To Withstand The Freeze?
Even with relativistic wealth, withdrawing federal grant funding poses serious difficulties alongside:
Public health and science medical research could hit a standstill.
Collaborations with federal entities like the NIH and the Department of Energy would be likely to cease.
Dependency from federal funding would pose risks to subsidized financial aid programs.
The university is likely to stay solvent, but these changes are likely to impede its global academic competitiveness and reduce research momentum. Faculty might also avoid federal grants due to worries over administrative strife.
Costs related to Tuition and Financial Aid
The cost of attending Harvard is relatively high. In total it exceeds 80,000, tuition, housing, meals, and fees three combined. They continue to sponsor a relatively higher pricing model, isto, greater accessibility:
Need based scholarships are offered to 55% of undergraduates.
Families with an income that is lower than 85,000 do not pay tuition.
Middle-income families often tend to receive subsidized housing.
Financial aid has an average of 60,000 dollars annually.
These factors contribute to the enrollment of more than 24,500 students alongside achieving Harvard’s elite academic standing. The class of 2028 alone has an acceptance rate of 3.59%.
Moving Further into American Higher Education
This is not an isolated incident and neither is the previously mentioned funding freeze. The Trump administration has also slashed funding for other private elite institutions, which includes a $400 million reduction to a privately funded university in New York, under similar antisemitism allegations and partisan student demonstrations against Israel’s military action in Gaza.
This case brings back discussions about:
Involvement of the government in private education
Responsibility of universities in the control of colossal endowments
Mental freedom and political participation in educational institutions
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