[montereynack]

That’s just direct economic analysis. Graduate students are incredibly valuable to the universities because they generate research which can be used to either directly apply for grants and federal/commercial awards, or which can be used to just add to the university’s reputation (which, in turn, affects their chances of getting a grant or money award, as they have a reputation of expertise). Even if the direct money being paid by these students is zero, I’m sure all universities (not just MIT and Harvard) care deeply about where their graduate students go; that’s a lot of good grey matter going to waste, and universities are in the business of converting grey matter directly into money!