New Delhi: A student admitted to Harvard has nearly 75% of their costs covered, another, bound for Stanford, needs to pay only 40% of the tuition fees. These discounts are no longer certain after the US froze federal funding to top institutions.
The funding freeze has jeopardised the opportunity for international students banking on institutional support to pursue research-intensive and high-cost programs, said study abroad experts.
Among Indian students, that’s triggering a subtle but significant recalibration. The Ivy League dream isn't fading—but it's no longer a no-brainer.
“Even affluent students are pausing to reconsider – not because of costs alone, but due to broader uncertainties like immigration hurdles, job market volatility, and visa risks,” said Prashant Tibrewal, founder of Alum-n-i. “The timing compounds the problem: a global slowdown, AI-driven job disruptions, escalating tariff wars, and now, political pressures on university governance.”
Despite endowments that run into tens of billions—Harvard’s stands at $53.2 billion—nearly 70% of that is restricted to specific uses, Tibrewal pointed out, making international student funding a potential casualty.
Research-intensive fields such as STEM, biomedical sciences, and AI are particularly vulnerable, especially for PhD and postdoctoral candidates, he said.
While application numbers for Fall 2025 may remain steady, Tibrewal warns that yield rates— the percentage of admitted students who choose to enrol —are likely to decline, especially for top universities that do not enjoy the brand recognition that Ivy Leagues do.
“Institutional funding is a key pillar of decision-making, particularly for PhD and postdoc candidates,” said Vibha Kagzi, founder of ReachIvy.com. “In STEM fields, students expect stipends ranging from $25,000 to $40,000 annually, alongside tuition waivers. For programs in the humanities or social sciences, assistantships and grants typically cover tuition and offer stipends between $18,000 and $30,000.”
She added that MBA and management applicants often look for merit-based scholarships that offset $30,000 to $70,000 in tuition. “Without these avenues, many qualified Indian Graduate, PhD, and Postdoc students may delay or reconsider their application plans.”
Kagzi noted that Indian students are already re-evaluating their U.S. plans, especially at institutions directly impacted by the freeze. “There is a sense of nervousness given the unpredictability of the funding and rising cost of education. Students are now parallelly exploring world-class institutions in countries like Canada, the UK, Germany, and Singapore as alternative top-tier options.”
“Ivy League schools are especially attractive due to their generous funding packages, so any uncertainty there causes anxiety,” said Vinu Warrier, founder of eduVelocity. “Some students are reconsidering Ivy League schools in favour of institutions perceived to have more stable funding. Postdoctoral researchers may also be affected due to tighter competition for fewer funded positions.”
He added that institutions like the University of Toronto, ETH Zurich, and Imperial College London are gaining traction among such candidates.
"Many of these students come without any educational loans, relying heavily on the university to cover their housing, tuition, living expenses and research,” said Sonal Kapoor, global chief business officer at Prodigy Finance. “Given the unpredictable inflation, this support is essential for their basic needs while studying there.”
“The federal funding freeze directly affects research budgets, assistantships, and labs,” she noted. “However, if they still choose to study in the US, they can rely on education loans as an alternative.”
Experts say the full impact of the freeze may take 12–24 months to to quantify as institutional budgets shift and clarity on long-term federal support emerges.
The funding freeze has jeopardised the opportunity for international students banking on institutional support to pursue research-intensive and high-cost programs, said study abroad experts.
Among Indian students, that’s triggering a subtle but significant recalibration. The Ivy League dream isn't fading—but it's no longer a no-brainer.
“Even affluent students are pausing to reconsider – not because of costs alone, but due to broader uncertainties like immigration hurdles, job market volatility, and visa risks,” said Prashant Tibrewal, founder of Alum-n-i. “The timing compounds the problem: a global slowdown, AI-driven job disruptions, escalating tariff wars, and now, political pressures on university governance.”
Despite endowments that run into tens of billions—Harvard’s stands at $53.2 billion—nearly 70% of that is restricted to specific uses, Tibrewal pointed out, making international student funding a potential casualty.
Research-intensive fields such as STEM, biomedical sciences, and AI are particularly vulnerable, especially for PhD and postdoctoral candidates, he said.
While application numbers for Fall 2025 may remain steady, Tibrewal warns that yield rates— the percentage of admitted students who choose to enrol —are likely to decline, especially for top universities that do not enjoy the brand recognition that Ivy Leagues do.
“Institutional funding is a key pillar of decision-making, particularly for PhD and postdoc candidates,” said Vibha Kagzi, founder of ReachIvy.com. “In STEM fields, students expect stipends ranging from $25,000 to $40,000 annually, alongside tuition waivers. For programs in the humanities or social sciences, assistantships and grants typically cover tuition and offer stipends between $18,000 and $30,000.”
She added that MBA and management applicants often look for merit-based scholarships that offset $30,000 to $70,000 in tuition. “Without these avenues, many qualified Indian Graduate, PhD, and Postdoc students may delay or reconsider their application plans.”
Kagzi noted that Indian students are already re-evaluating their U.S. plans, especially at institutions directly impacted by the freeze. “There is a sense of nervousness given the unpredictability of the funding and rising cost of education. Students are now parallelly exploring world-class institutions in countries like Canada, the UK, Germany, and Singapore as alternative top-tier options.”
“Ivy League schools are especially attractive due to their generous funding packages, so any uncertainty there causes anxiety,” said Vinu Warrier, founder of eduVelocity. “Some students are reconsidering Ivy League schools in favour of institutions perceived to have more stable funding. Postdoctoral researchers may also be affected due to tighter competition for fewer funded positions.”
He added that institutions like the University of Toronto, ETH Zurich, and Imperial College London are gaining traction among such candidates.
"Many of these students come without any educational loans, relying heavily on the university to cover their housing, tuition, living expenses and research,” said Sonal Kapoor, global chief business officer at Prodigy Finance. “Given the unpredictable inflation, this support is essential for their basic needs while studying there.”
“The federal funding freeze directly affects research budgets, assistantships, and labs,” she noted. “However, if they still choose to study in the US, they can rely on education loans as an alternative.”
Experts say the full impact of the freeze may take 12–24 months to to quantify as institutional budgets shift and clarity on long-term federal support emerges.
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