&w=3840&q=100)
Elite colleges go on $4 bn debt spree after Donald Trump's threats
Elite American universities have secured over $4 billion in additional debt since March that will help protect their finances as the Trump administration takes aim at their budgets.
Harvard University, the face of the fight, has boosted its debt load 16 per cent after a bond sale in April. The Massachusetts Institute of Technology ramped up its liabilities 18 per cent to $5.2 billion. Top-tier schools have sold taxable bonds, taken out private loans, and increased capacity for commercial paper, according to data compiled by Bloomberg.
Colleges are using a recession-style playbook to respond to the Trump administration's large-scale funding freezes and proposed research spending cuts. House Republicans also hiked the endowment tax in a bill that now moves to the Senate. And the fight is ramping up with the US ordering its embassies worldwide to stop scheduling interviews for student visas as it weighs stricter vetting of applicants' social-media profiles. The nation's wealthiest colleges are getting a taste of the financial pressure that has long hit small colleges in the wake of the pandemic as they struggle to boost enrollment and stay afloat.
'The colleges that had been doing really well were the big name public universities and wealthy private colleges — but that got all scrambled when federal research funding was challenged in investigations against the elite colleges,' said Robert Kelchen, a professor studying higher education at the University of Tennessee at Knoxville.
The A-list schools haven't explicitly spelled out what they're using the money for. But taxable debt can be used for a wider array of purposes than the tax-exempt bonds that universities typically sell. A spokesperson for Brown University, which took out a $300 million private loan, acknowledged 'the uncertainty regarding future federal policy related to research and other important priorities.' And a representative for MIT said it tries to manage for a 'wide range of conditions' and the bond deal would help it do that.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
39 minutes ago
- Time of India
Social Security privacy concerns mount as US Supreme Court authorises DOGE's access to data of millions of Americans
The US Supreme Court on Friday sided with the Trump administration in two critical decisions involving the Department of Government Efficiency (DOGE). The rulings allow DOGE broad access to personal records held by the Social Security Administration (SSA) and delay enforcement of transparency rules sought by a government watchdog group. By a 6-3 vote, the conservative-majority court granted DOGE permission to access sensitive SSA databases containing the personal details of millions of Americans. This includes financial, educational and medical data. The court also paused a lower court's ruling requiring DOGE to comply with the Freedom of Information Act (FOIA), allowing the administration to withhold internal documents about DOGE's operations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Belly Fat Removal Without Surgery in Algeria: The Price Might Surprise You Belly Fat Removal | Search Ads Undo Rising concerns over privacy and oversight Justice Ketanji Brown Jackson dissented sharply, writing: 'This court has now greenlit unfettered data access to DOGE regardless—despite its failure to show any need or any interest in complying with existing privacy safeguards, and all before we know for sure whether federal law countenances such access.' Her concerns were echoed by Justices Sonia Sotomayor and Elena Kagan. Together, they warned that the court's action posed 'grave privacy risks' to millions of Americans. Live Events The SSA holds data on anyone with a Social Security number, Medicare, or Supplemental Security Income. It administers $1.5 trillion in federal payments annually, distributing benefits to over 70 million recipients. Nancy Altman, president of Social Security Works , said, 'There is no way to overstate how serious a breach this is. And my understanding is that it has already occurred.' Fallout after Musk's departure from DOGE Elon Musk, who once led DOGE, formally cut ties with the agency on 30 May. His split with President Trump became public shortly after, igniting tensions on social media. The two previously worked closely, with Trump assigning DOGE and Musk to investigate fraud within SSA. In February, SSA's acting commissioner Michelle King resigned after refusing to provide DOGE staff access to personal records. She stepped down after 30 years in government service, citing concerns over data misuse. A day later, the White House said it had appointed a temporary 'anti-fraud expert' to oversee SSA. Press secretary Karoline Leavitt stated, 'They haven't dug into the books yet, but they suspect that there are tens of millions of deceased people who are receiving fraudulent Social Security payments.' Leavitt added the mission was to, 'Number one, to identify duplicate payments and to end them. Number two, to identify payments that are going to deceased people who are no longer living and should no longer be receiving that money. And number three, to protect the integrity of the system for hardworking Americans who have been paying into it their entire lives.' Legal battle over Government transparency In a separate ruling, the court also halted an order from Judge Christopher Cooper, who had instructed DOGE to comply with FOIA requests. The suit, filed by Citizens for Responsibility and Ethics in Washington (CREW), sought records about DOGE's internal decision-making, particularly its role in mass federal layoffs and restructuring. CREW argues that DOGE functions as a de facto government agency and must follow federal transparency laws. The administration insists DOGE is merely an advisory body and is therefore exempt. Judge Cooper previously concluded that DOGE likely exercises 'substantial independent authority' and ordered a deposition of DOGE official Amy Gleason. The US Court of Appeals for the DC Circuit refused to block his order, prompting the administration to appeal to the Supreme Court. In its unsigned opinion, the court noted that Judge Cooper's orders 'are not appropriately tailored' and stressed that 'judicial deference and restraint' were required in reviewing internal executive branch communications. CREW responded in court filings that if the administration prevails, presidents could 'create new entities that would functionally wield substantial independent authority but are exempt from critical transparency laws.' DOGE has become a key tool in Trump's broader plan to cut government spending and reduce federal workforce numbers. It has also faced mounting legal challenges from labour unions and advocacy groups. Solicitor General D. John Sauer called earlier judicial rulings an 'overreach' into executive power. However, critics argue that unchecked access and lack of oversight could result in lasting harm to public trust and data security . Maryland District Judge Ellen Hollander, whose SSA data access restriction was overturned, earlier warned that DOGE's search for fraud was a 'fishing expedition.' Her order allowed only limited access to anonymised data unless DOGE could demonstrate a specific need. Despite Friday's rulings, the future of DOGE remains uncertain. With Musk gone and legal scrutiny intensifying, its role in reshaping federal oversight continues to spark debate over accountability, privacy, and the limits of executive power.
Economic Times
39 minutes ago
- Economic Times
Breaking News Live Updates: North Korea internet hit by a major outage, analyst says
07 Jun 2025 | 06:23:54 AM IST Breaking News Live Updates: North Korea's internet is experiencing a major outage on Saturday affecting all routes coming in and while the cause is yet unclear it may be internal rather than a cyber attack, said a UK-based researcher who monitors North Korea's internet. Breaking News Live Updates: North Korea's internet is experiencing a major outage on Saturday affecting all routes coming in and while the cause is yet unclear it may be internal rather than a cyber attack, said a UK-based researcher who monitors North Korea's Korea's main news web sites and its Foreign Ministry internet site are currently inaccessible, according to checks by Reuters. Show more A 6.4 magnitude earthquake struck northern Chile on Friday, causing minor infrastructure damage and cutting power to over 20,000 US Geological Survey (USGS) reported the quake hit at 1:15 p.m. local time (5:15 p.m. GMT) at a depth of 76 kilometers (47 miles). Its epicenter was located near the coast of the Atacama the quake was felt across several communities in the expansive Atacama Desert region, initial reports confirmed no immediate Hydrographic and Oceanographic Service said the earthquake's characteristics did not meet the conditions necessary to generate a tsunami along the South American coast. Russia struck Ukraine with a thunderous aerial bombardment overnight, further dampening hopes that the warring sides could reach a peace deal anytime soon days after Kyiv embarrassed the Kremlin with a surprising drone attack on military airfields deep inside barrage was one of the fiercest of the three-year war, lasting several hours, striking six Ukrainian territories, and killing at least six people and injuring about 80 others, Ukrainian officials said Friday. Among the dead were three emergency responders in Kyiv, one person in Lutsk and two people in attack came after U.S. President Donald Trump said his Russian counterpart, Vladimir Putin, told him Moscow would respond to Ukraine's attack Sunday on Russian military airfields. It was also hours after Trump said it might be better to let Ukraine and Russia 'fight for a while' before pulling them apart and pursuing peace. Trump's comments were a remarkable detour from his often-stated appeals to stop the war and signaled he may be giving up on recent peace efforts. Nine-time Olympic champion Katie Ledecky notched another impressive victory at the US Swimming Championships on Friday, clocking 3min 48.56sec to win the 400m freestyle to add another event to her 2025 World Championships who had already punched her ticket to the World Championships in Singapore with a victory in the 800m free, was under world record pace at the 200m mark and came home 1.49sec in front of Claire Weinstein -- who led Ledecky in a one-two finish in the 200m free this week."I just wanted to put together a solid race," Ledecky said after capturing her 32nd national title. "I was definitely hurting the last 100, but overall I'm pretty happy with that."Ledecky, who is also slated to swim the 1,500m free as the championships conclude in Indianapolis, Indiana, on Saturday, will be heading to worlds in Singapore next month on a high note. Norway Chess 2025 winner in women category, Ukrainian grandmaster Anna Muzychuk says, "I'm very happy. This tournament and this win mean a lot, and I think it's a great success... India is getting many new and good players from the new generation, but also from the older, like, Koneru Humpy. I played my first game with Koneru when I was seven years old and she was 10. It was 28 years ago... India is doing great in women's and men's competitions, and I think we will have many more players coming. It will always be challenging to play against them..." Senior U.S. administration officials will meet with a Chinese delegation on Monday in London for the next round of trade negotiations between Washington and Beijing, President Donald Trump said meeting comes after a phone call between Trump and Chinese leader Xi Jinping on Thursday, which the U.S. president described as a 'very positive' conversation as the two countries attempt to break an impasse over tariffs and global supplies of rare earth Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer will represent the U.S. side in the trade talks.'The meeting should go very well,' Trump wrote on his social media platform Friday afternoon. North Korea's internet is experiencing a major outage on Saturday affecting all routes coming in and while the cause is yet unclear it may be internal rather than a cyber attack, said a UK-based researcher who monitors North Korea's Korea's main news web sites and its Foreign Ministry internet site are currently inaccessible, according to checks by Reuters.
Economic Times
39 minutes ago
- Economic Times
Social Security privacy concerns mount as US Supreme Court authorises DOGE's access to data of millions of Americans
Rising concerns over privacy and oversight Live Events Fallout after Musk's departure from DOGE Legal battle over Government transparency (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The US Supreme Court on Friday sided with the Trump administration in two critical decisions involving the Department of Government Efficiency (DOGE). The rulings allow DOGE broad access to personal records held by the Social Security Administration (SSA) and delay enforcement of transparency rules sought by a government watchdog a 6-3 vote, the conservative-majority court granted DOGE permission to access sensitive SSA databases containing the personal details of millions of Americans. This includes financial, educational and medical court also paused a lower court's ruling requiring DOGE to comply with the Freedom of Information Act (FOIA), allowing the administration to withhold internal documents about DOGE's Ketanji Brown Jackson dissented sharply, writing: 'This court has now greenlit unfettered data access to DOGE regardless—despite its failure to show any need or any interest in complying with existing privacy safeguards, and all before we know for sure whether federal law countenances such access.'Her concerns were echoed by Justices Sonia Sotomayor and Elena Kagan. Together, they warned that the court's action posed 'grave privacy risks' to millions of SSA holds data on anyone with a Social Security number, Medicare, or Supplemental Security Income. It administers $1.5 trillion in federal payments annually, distributing benefits to over 70 million Altman, president of Social Security Works , said, 'There is no way to overstate how serious a breach this is. And my understanding is that it has already occurred.'Elon Musk, who once led DOGE, formally cut ties with the agency on 30 May. His split with President Trump became public shortly after, igniting tensions on social media. The two previously worked closely, with Trump assigning DOGE and Musk to investigate fraud within February, SSA's acting commissioner Michelle King resigned after refusing to provide DOGE staff access to personal records. She stepped down after 30 years in government service, citing concerns over data misuse.A day later, the White House said it had appointed a temporary 'anti-fraud expert' to oversee SSA. Press secretary Karoline Leavitt stated, 'They haven't dug into the books yet, but they suspect that there are tens of millions of deceased people who are receiving fraudulent Social Security payments.'Leavitt added the mission was to, 'Number one, to identify duplicate payments and to end them. Number two, to identify payments that are going to deceased people who are no longer living and should no longer be receiving that number three, to protect the integrity of the system for hardworking Americans who have been paying into it their entire lives.'In a separate ruling, the court also halted an order from Judge Christopher Cooper, who had instructed DOGE to comply with FOIA requests. The suit, filed by Citizens for Responsibility and Ethics in Washington (CREW), sought records about DOGE's internal decision-making, particularly its role in mass federal layoffs and argues that DOGE functions as a de facto government agency and must follow federal transparency laws. The administration insists DOGE is merely an advisory body and is therefore Cooper previously concluded that DOGE likely exercises 'substantial independent authority' and ordered a deposition of DOGE official Amy Gleason. The US Court of Appeals for the DC Circuit refused to block his order, prompting the administration to appeal to the Supreme its unsigned opinion, the court noted that Judge Cooper's orders 'are not appropriately tailored' and stressed that 'judicial deference and restraint' were required in reviewing internal executive branch responded in court filings that if the administration prevails, presidents could 'create new entities that would functionally wield substantial independent authority but are exempt from critical transparency laws.'DOGE has become a key tool in Trump's broader plan to cut government spending and reduce federal workforce numbers. It has also faced mounting legal challenges from labour unions and advocacy General D. John Sauer called earlier judicial rulings an 'overreach' into executive power. However, critics argue that unchecked access and lack of oversight could result in lasting harm to public trust and data security Maryland District Judge Ellen Hollander, whose SSA data access restriction was overturned, earlier warned that DOGE's search for fraud was a 'fishing expedition.' Her order allowed only limited access to anonymised data unless DOGE could demonstrate a specific Friday's rulings, the future of DOGE remains uncertain. With Musk gone and legal scrutiny intensifying, its role in reshaping federal oversight continues to spark debate over accountability, privacy, and the limits of executive power.
