Is Graduate School Becoming a Thing of the Past?

As Universities Tighten Budgets, Ph.D. Programs Face Uncertain Future

February 27, 2025 | 10:30 AM PST
Jacqueline Valentine

Higher education is at a crossroads. With major universities freezing staff hiring, pausing Ph.D. admissions, and bracing for deep federal funding cuts, the once-unshakable path of graduate education is now under intense scrutiny. Could we be witnessing the beginning of the end for traditional doctoral programs?

This week, Stanford University announced a hiring freeze for staff positions as it recalibrates its finances in response to anticipated reductions in federal research funding. Though faculty hiring remains untouched for now, technical, administrative, and research support roles could be on the chopping block.

“Stanford remains financially healthy,” said President Jonathan Levin and Provost Jenny Martinez in a statement, “but we must be cautious about new financial commitments as we assess potential cuts.”

Stanford is far from alone. The University of Pittsburgh sent shockwaves through the academic world by suspending all new Ph.D. admissions across disciplines—medical, scientific, and beyond. This decision, a direct response to proposed funding reductions from the National Institutes of Health (NIH), could signal a shift in how universities approach doctoral education moving forward.

The NIH Cuts That Sparked an Academic Reckoning

The federal government is pushing to slash indirect research costs, including administrative support, lab maintenance, and infrastructure, capping reimbursement rates at 15%. Currently, elite research institutions negotiate rates as high as 60% or more, meaning the proposed change could gut billions from university budgets.

Universities nationwide are scrambling to adapt. Columbia University, Northwestern, Virginia Tech, and others have announced hiring freezes, budget reductions, and travel restrictions to mitigate financial uncertainty. MIT alone expects to lose $100 million in federal funding annually.

Massachusetts federal Judge Angel Kelley has temporarily paused the NIH cuts amid multiple lawsuits from 22 states, but universities aren’t taking any chances. With the specter of permanent reductions looming, many are rethinking the sustainability of graduate education as a whole.

Are Ph.D. Programs Still Viable?

For decades, the Ph.D. has been a gold standard in academia and research. But as funding streams shrink, universities may be forced to cut back on doctoral admissions, rethink financial aid structures, or shift toward alternative credentialing programs.

Some schools are already adjusting. Vanderbilt University recently walked back rumors of a full Ph.D. admissions freeze, but faculty members have been instructed to “balance program admissions with current student needs”—a coded message that fewer spots may be available.

Meanwhile, endowment taxation proposals from Congress could exacerbate financial pressures on elite private universities, forcing them to pay more on excess donations—funds that typically support graduate scholarships and faculty salaries.

A Post-Ph.D. World?

The writing is on the wall: the traditional Ph.D. pipeline may no longer be financially sustainable at the scale we’ve known. With universities tightening their belts, alternative models could gain traction:

• Industry-Funded Fellowships: Private sector partnerships could become the new standard, with companies directly sponsoring Ph.D. research.

• Shorter, More Focused Doctorates: Some institutions may shift toward three-year applied doctoral programs that prioritize industry over academia.

• Microcredentials and Research Certificates: Instead of spending five to seven years on a dissertation, scholars might opt for specialized certifications in niche research areas.

If funding trends continue in this direction, universities will need to radically rethink how they train the next generation of researchers. The question now isn’t whether graduate education will change—it’s how fast it will happen.