How Trump's threat to revoke Harvard's tax-exempt status would impact the university How Trump's threat to revoke Harvard's tax-exempt status would impact the university How Trump's threat to revoke Harvard's tax-exempt status would impact the university President Trump took to his social media Friday, sharing plans to take away Harvard University's tax-exempt status, saying "it's what they deserve." This comes after the Trump administration also froze billions of dollars of Harvard's federal funding. Cuts have already been felt on campus.

"I work on tuberculosis. I work on hepatitis," said Harvard doctoral student Benjamin Daniels. "We've had programs cut from tuberculosis vaccination, which was about to open a new trial, which affects almost one quarter of the global population."

Now the president is once again threatening to eliminate the university's tax-exempt status which could cost hundreds of millions more annually with a trickle-down impact. Impact on Harvard's endowment Harvard would have to pay federal income taxes on its revenue, donations could be lost if donors can't claim tax deductions on their gifts, it could force reductions in financial aid, and cuts to research initiatives. Wellesley College economist Phillip Levine says Harvard would lose excellence and access.

"Harvard stands to lose the ability to enroll the very brightest lower and middle-income students who can now afford to be able to enroll, because of the use of the endowment to provide tremendous financial aid to those students," Levine said. It's a consideration for the Floirian family from Texas making a campus visit Friday and looking to the future. "Anything that's going to affect cost is going to be something to consider and whether that's financial aid, loans," said parent Angelo Floirian.

Student's worried about Harvard cost Two freshmen who prefer to remain anonymous, say their Harvard education is fully paid for due to their family's income level, and don't want their future jeopardized. "I wouldn't be able to go here if it wasn't for my financial aid," one student said. "It means a lot to me," another student said.

"I don't think I would have this opportunity, so it does worry me." "Grave consequences" for higher education In a statement Harvard says there's no legal basis to revoke their tax-exempt status. "Such an unprecedented action would endanger our ability to carry out our educational mission," a Harvard spokesperson said.

"It would result in diminished financial aid for students, abandonment of critical medical research programs, and lost opportunities for innovation. The unlawful use of this instrument more broadly would have grave consequences for the future of higher education in America." It's not yet clear if and when the president would go through with this threat.