How the Trump administration wants to bleed Harvard dry

Students aren't letting the celebratory mood get spoiled a few hundred meters from Harvard Square in Cambridge. While staff set up hundreds of chairs for the upcoming commencement ceremonies on the green lawn in front of the historic Baker Library of the renowned Harvard Business School, the graduates are making memories. They pose in droves for photos with classmates and family on the bridges over the nearby Charles River, clad in their black gowns and square graduation caps.

But despite the scattered confetti and empty champagne bottles, there is a sense of alarm at the university. The elite US university is under attack from the US government, and the attacks are not letting up. After a Boston court last week halted the government's attempt to prohibit Harvard from admitting international students with a temporary injunction, the administration has stepped up its efforts.

Not only has she apparently instructed all government agencies to stop the remaining federal funding of an estimated $100 million for the Ivy League university, in addition to the well over $2 billion already cut.

According to consistent media reports, the State Department also instructed U.S. embassies and consulates worldwide to temporarily suspend the issuance of new visas to international students, exchange students, and au pairs. Apparently, U.S. authorities are considering further tightening the social media controls of applicants.

In addition, the university faces a significant tax increase on its endowment, which currently stands at $53.2 billion. If the major tax reform initiated byDonald Trump (78) and already passed by the House of Representatives goes through, Harvard will have to pay 21 percent tax on the profits from its endowment, up from 1.4 percent.

For Harvard, where students are currently celebrating their graduations before heading off for the semester break that lasts until around September, the damage may already be done. Even though Harvard's academic reputation remains world-class, many students—and likely faculty members—are now looking for alternatives in light of the massive uncertainty.

This could prove costly for Harvard not only in terms of education but also financially. The approximately 6,800 international students recently accounted for around 27 percent of all students. They also tend to pay higher tuition fees than domestic students. The list price: just under $60,000 without room and board, and $87,000 with room and board.

For Harvard and its president, Alan Garber (70), this was reason enough to call on graduates in his speech on Tuesday to fight for education of all kinds. "Everything we can achieve, morally, scientifically, technologically, and even economically, is based on knowledge," he warned.

Meanwhile, the university is preparing for tougher times ahead. And, according to reports, it recently considered selling approximately one billion dollars in assets held in private equity. This could force the university to accept significant losses in value. According to hedge fund manager and Trump friend Bill Ackman (59), who once attended Harvard himself, Harvard's true endowment is probably less than 40 billion dollars.

The university also announced in April that it would issue bonds worth $750 million to respond to current “financial circumstances” and to be able to continue certain ongoing research projects despite the government’s cuts.

And she's trying to mobilize her wealthy alumni network in the fight for academic freedom. A few days ago, the university's alumni department called on donors and alumni to support the university politically and financially through a "Presidential Priorities Fund." A pot of money that gives Garber more freedom in how to use the donations than with foundation funds, which are largely tied to specific purposes.

On Tuesday, two days before the grand graduation ceremony on Thursday, hundreds of demonstrators once again protested against the enrollment ban for foreign students with music, posters, and protest choirs in one of the large squares near the university. While on the university campus behind them, thousands of graduates and families celebrated their graduations with snacks and brass music.

For Alan Garber and his supporters, the fight is just beginning.

A fact that at least some of the students are aware of during their celebrations. Like graduate Sandrine , who is currently posing for photos with friends on the bridge over the Charles River in her gown before moving on to Oxford. "Perhaps," she says thoughtfully, "we were the last class of international students."