Related questions Harvard University Ability to pay bills in a fight with the Trump administration Ministry of Education Reduce the university’s status to obtain federal student aid.
this department Announced Friday Harvard University The improvement in cash monitoring status has been transferred to, which requires universities to use their own funds to pay student loans in the case of paying for student loans before seeking reimbursement from the Federal Student Aid Office.
Additionally, the office will require the university to issue “$36 million irrevocable letter of credit or provide other financial protection” to resolve the issue of relevant Harvard University “Financial Responsibility,” department exist statement.
“Students will continue to receive federal funding, but Harvard University Use the requirement to cover the initial expenditure as a guardrail to ensure Harvard University Responsible expenditure of taxpayers’ funds” department explain.
Education Minister Linda McMahon said: “Follow Harvard University I admit that I have significant concerns about his financial situation. ”
“therefore, Harvard University Reimbursement must now be sought after the distribution of federal student aid and post-financial protections, in order to department Ms McMahon said: “It is possible to ensure that the taxpayer’s funds are risk-free. Harvard University Currently, they are still eligible for the federal student aid program, and these actions are necessary to protect taxpayers. ”
Of course, the Trump administration may Harvard University An increasingly unstable financial situation.
The university issued $1.2 billion in bonds earlier this year as the government cuts opportunities for an estimated $2.6 billion in research grants and contracts, said Harvard University Failure to comply with Chapter 6 of the Civil Rights Act of 1964, which deals with campus anti-Semitism.
A federal judge temporarily blocks funds from taking effect earlier this month, waiting Harvard Universityalthough the government has vowed to appeal.
Harvard University Spokesman Jason Newton said Friday that the university received its first substantial federal research funding in four months, while $46 million from the National Institutes of Health arrived.
Funding infusions come from about 200 Harvard University 1,500 active NIH grants, totaling $488 million in fiscal year 2024, accounting for approximately 70% of the university’s total funding according to arrive Harvard University crimson.
Three “trigger events” stimulated the decision to put the university in reimbursement: $1.2 billion in bond sales, headline violations, and school’s “failure to comply with the department’s civil rights office’s requirements,” which could make Harvard University Not eligible for federal student aid.
also, Harvard University The donation tax rates for other wealthy universities rose from 1.4% to 8% on a large bill, further limiting the financial status of the Ivy League institutions.
In April’s bond statement Harvard University Acknowledge that recent federal developments could have “significantly adverse effects on the current and future financial condition and operating performance of the University.”
this department Conclusion: “The issuance of these bonds may have a significant adverse impact on the financial situation Harvard University. ”
“The face value of the bonds is about 15% Harvard University Annual income,” department. “Assuming additional debt can make significant difficulties Harvard University Meet any liabilities department If you lose the opportunity to obtain federal funds. ”
also, Harvard University Also “make multiple layoffs starting in the summer, above college recruitment and salary freezes established in the spring” department explain.
Harvard University With $53 billion in donations, the largest of any university in the world, but these funds are primarily invested in liquidity securities, meaning “the cost of taxable debt sold today is lower than the typical return of donation holdings,” he said. Harvard University Magazine.
“If liquidity holdings can only be sold at a loss, that’s even more so. So the first solution is to take advantage of the debt market,” the magazine said in its April 14 magazine on April 14. The magazine said on April 14. analyze.
