Earlier quoted context omitted.
> There are large fixed costs to running a university and these students pay way above their marginal costs. There’s a slight silver lining to this - up until now there’s been very little motivation to reduce those large fixed costs.
So... How is this exactly a silver lining? Avoiding fixed costs is a means to an end, not an end in and of itself. And that end (actually saving money/increasing efficiency) just receded further away. And hey, nobody actually knows exactly what is overhead, and what is valuable; if we all agreed on that, it would be much easier to cut. So this is likely to cut valuable stuff that's just not as immediately obviously v…
Besides the high fixed cost the universities are faced with unprecedented open access to information via the internet. Not all what a university does can be replaced but some stuff can. A low cost competitor is taking over part of their business - and probably the most profitable one.
It is not just that Trump made entry to the US more difficult. The cost for education went up. The competition is getting stronger. And the value delivered is decreasing due to lower social mobility. Unless one is going to the very top universities the chances to move up have decreased compared with the past. This is not so say it is not worth it but relatively it is less clear and for some subjects it became very risky.