Published Time: 09-20-2025, 14:30 EDT

The Trump administration has increased pressure on Harvard University, placing the Ivy League institution under heightened financial monitoring and warning of possible sanctions if it fails to provide more detailed records on its admissions practices. The move marks a significant escalation in an ongoing clash between the federal government and one of the world’s most prestigious universities.

Heightened Cash Monitoring and Federal Oversight

Education Secretary Linda McMahon announced Friday that Harvard will now be subject to “heightened cash monitoring” rules. Under this system, the university must first use its own funds to cover financial aid for students and then apply for federal reimbursement, rather than receiving upfront federal funding.

McMahon further cautioned that “additional enforcement action” could follow if Harvard does not supply comprehensive data showing compliance with the Supreme Court’s 2023 ruling that banned the consideration of race in college admissions.

The Education Department’s stance reflects a broader strategy by the Trump administration to push elite universities into aligning with federal directives on admissions and governance.

Harvard’s Response and Legal Challenges

Harvard did not issue a public response on Friday following the administration’s announcement. However, the university has previously challenged federal actions in court.

Earlier this year, a federal judge sided with Harvard after the Trump administration cut off $2.6 billion in federal research funding. The judge described the government’s actions as “a targeted, ideologically motivated assault on this country’s premier universities.” Following that ruling, the Department of Health and Human Services unfroze $46 million in research funds, according to Harvard officials.

The legal battles highlight the intensity of the standoff between the White House and Harvard, which the administration has frequently accused of harboring liberal bias.

Admissions Practices Under Scrutiny

The Education Department’s ongoing investigation focuses on whether Harvard has fully complied with the Supreme Court’s 2023 decision prohibiting the use of race in admissions. Federal officials allege that the university has not met all requests for applicant and admissions records.

The case stems from a 2014 lawsuit filed by students who argued Harvard’s admissions practices unfairly disadvantaged white and Asian applicants. While the Supreme Court ultimately ruled against race-conscious admissions nationwide, federal officials now want Harvard to demonstrate its policies have been fully restructured.

Federal Funding and Financial Concerns

Despite Harvard’s vast $53 billion endowment—the largest of any university in the world—federal funding plays a critical role in supporting research and student aid. By placing Harvard under heightened monitoring, the Education Department has raised new questions about the university’s financial stability in the context of its reliance on government reimbursements.

McMahon expressed concerns about Harvard’s fiscal health, stating that federal agencies must ensure universities comply with financial and legal obligations before receiving taxpayer support.

Broader Crackdown on Higher Education

Since taking office, President Trump has leveraged federal agencies to exert greater influence over higher education. His administration has reduced federal research grants, pressed institutions into financial settlements, and threatened to withhold funding from universities accused of noncompliance with federal directives.

Critics argue these actions are politically motivated and undermine academic independence. Supporters counter that the administration is working to restore fairness and accountability in higher education, particularly around admissions practices.

Looking Ahead

The heightened monitoring and threat of sanctions signal that the dispute between the Trump administration and Harvard is far from resolved. With ongoing court cases and potential financial repercussions, the university’s ability to balance compliance with its longstanding admissions philosophy remains under scrutiny.

For now, the administration insists that elite institutions must provide transparency and adhere to federal standards, while Harvard faces the challenge of protecting its academic reputation amid intensified oversight.

Source: AP News – Trump administration threatens further sanctions in escalating fight with Harvard

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Former Trump education official Linda McMahon is taking aim at President Biden’s student loan forgiveness policies, calling them irresponsible and unfair to taxpayers — while accusing colleges of cashing in on the chaos.

In a Wall Street Journal op-ed, McMahon defended the Department of Education’s decision to resume debt collections starting May 5, targeting roughly 5.3 million borrowers who are in default. She didn’t mince words, blaming the Biden administration for enabling massive debt accumulation under the false promise of blanket forgiveness.

McMahon argued that colleges — despite their nonprofit status — have benefited enormously from federal student loans.

“For years they’ve hiked tuition and built up billion-dollar endowments, all while students graduate buried under six-figure debt,” she wrote.
“Colleges and universities call themselves nonprofits, but they’ve profited massively off the federal subsidy of loans.”

She stressed the need for accountability — not just from borrowers, but also from higher education institutions. “As we push to hold students accountable, we will also demand that colleges be transparent and responsible.”

Student loan payments were first paused in 2020 under President Trump as part of COVID-19 relief efforts. But McMahon criticized Biden for extending the pause and pushing sweeping forgiveness programs that she said lacked legal authority.

“Biden dangled the carrot of loan forgiveness in front of young voters,” McMahon said, arguing it led many to take on more debt with no real plan for repayment.

She announced a full reversal of what she called “zero-interest, zero-accountability” policies. Moving forward, borrowers in default will face serious consequences — from lowered credit scores to wage garnishment.

The Education Department confirmed that about 1.8 million borrowers will be moved into repayment plans as collections restart in May. McMahon emphasized that the decision isn’t about being harsh — it’s about restoring fiscal responsibility.

“Borrowing money and not paying it back isn’t a victimless offense. Debt doesn’t vanish — it shifts to taxpayers,” she said.

She added that unlike car or mortgage loans, student loans come with a public cost. The goal, she said, is to make sure borrowers are supported in repayment, and that colleges can no longer saddle students with unaffordable debt.

The numbers tell a troubling story. Over 42.7 million Americans now owe more than $1.6 trillion in federal student loans, according to the Department of Education. The agency warned the system is heading toward a “fiscal cliff.”

Even more alarming, over 5 million borrowers haven’t made a single payment in more than a year — with some skipping payments for over seven years.

McMahon’s message is clear: forgiveness without accountability has backfired — on borrowers, taxpayers, and the nation’s finances. With loan collections set to resume, her approach signals a tougher stance and a call for deeper reforms within higher education.

Source: NYPOST – Trump’s education boss reveals greedy truth behind Biden’s student loan forgiveness: ‘They have profited massively’

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