Why US elite universities are borrowing billions despite massive endowments
US universities, including Harvard and Princeton, are issuing record levels of debt despite massive endowments, borrowing $12.4 billion in Q1 2025 to safeguard operations amid federal funding cuts. The Trump administration's review of research grants and reduced cost recovery rates have sparked financial uncertainty. Analysts, as reported by Forbes, see this as one of the most unstable periods for higher education, prompting elite institutions to secure liquidity and prepare for long-term challenges.
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