The Trump administration’s sweeping changes to graduate student loans, research grant allocations and visa policies for foreign students are impacting some of the most prestigious universities in the US. A recent Forbes analysis highlights 25 elite private institutions where large graduate enrolments and high dependence on foreign students and federal funding have left them particularly exposed.For more than a decade, graduate programmes have fuelled growth at top-tier US universities. This expansion was supported by unlimited federal Grad PLUS loans, billions in federal research grants, and a steady stream of tuition-paying international students. Now, changes enacted under President Donald Trump have disrupted these funding streams, creating a challenging environment for universities heavily reliant on graduate education.High dependency on graduate enrolment and foreign studentsAccording to the Forbes analysis, the most vulnerable universities are those with more than 2,000 graduate students, where graduate enrolment accounts for at least 35% of total student numbers and at least 25% of graduate students are on foreign visas. Columbia University tops the list, with graduate students making up 72% of enrolment, and 49% of them being international.Other universities in similar positions include Johns Hopkins University (68% graduate, 47% foreign), Harvard University (64%, 35%), Duke University (64%, 32%), and the Massachusetts Institute of Technology (63%, 43%). Among the 25 schools, 13 hold an A+ grade in Forbes’ 2025 College Financial Grades, showing strong financials prior to the implementation of the Trump policies.Research grants and student visa restrictionsThe Trump administration has cancelled an estimated $7 billion in science grants at more than 600 institutions, as reported by Forbes. It has also restricted overhead payments on existing grants and instituted political oversight of new research funding. For instance, Johns Hopkins University lost $800 million in contracts following the dismantling of the US Agency for International Development. The university responded by cutting 2,200 jobs globally and implementing a hiring freeze in June, according to Forbes.Northwestern University reported $790 million in frozen grants and has announced the elimination of 425 positions. Duke University has accepted nearly 600 staff and 40 faculty resignations, with layoffs underway, as detailed by Forbes.Impact of Grad PLUS loan capsThe One Big Beautiful Bill Act (OBBBA), signed by President Trump in July, has placed strict borrowing caps on new graduate students from July 1, 2026. While current students can borrow their full cost of attendance through Grad PLUS, future students will be limited to $20,500 annually, with a lifetime cap of $100,000. Medical, dental, and law students face a cap of $50,000 per year, up to $200,000 total.As reported by Forbes, in 2019–2020, 73% of dental students who borrowed took out more than $50,000, as did 57% of medical students and 30% of law students. Private lenders are expected to fill part of the funding gap, but lower-income students and those entering less lucrative careers may be disproportionately affected.Foreign student visa challengesForbes reports that the Trump administration has introduced measures that could reduce new foreign student enrolments by 30% to 40%, translating to an overall 15% decline. Visa issuance was paused while new social media screening processes were added. New restrictions affect residents of 19 countries, and attempts were made to expel students who supported pro-Palestinian protests.In one case, Columbia University agreed to a settlement requiring it to provide the federal government with data on international students and reduce reliance on foreign enrolment. The agreement unlocked $1.3 billion in funding previously withheld, according to Forbes.Structural changes and programme cutsUniversities are already responding with institutional changes. According to Forbes, the University of Chicago is considering consolidating 15 departments into eight due to financial strain. At Duke, the medical school is evaluating pay reductions for tenured faculty reliant on lost research funding.Forbes also notes that between 2011–2012 and 2021–2022, doctorate degrees increased by 20% to 203,900 annually, and master’s degrees by 16% to 880,200. This growth coincided with a rise in tuition costs for graduate study, outpacing that of undergraduate programmes.International students now earn 44% of all master’s and 58% of PhDs in STEM fields in the US. In 2023–2024, 502,291 foreign graduate students were enrolled, an 8% rise from the previous year. However, changes to post-study work rights under Optional Practical Training (OPT) could reduce the appeal of US graduate programmes, as indicated by Forbes.Full list of the 25 most vulnerable universities
Source: National Center for Education StatisticsThese universities face significant adjustments as a result of the changes to funding, loans and international student policies enacted under the Trump administration.TOI Education is on WhatsApp now. Follow us here.
