Actually overheads for many universities were sometimes higher in the late 1990s (and there were some minor scandals associated with this). And remind me again, what fraction of our GDP is indirect costs to universities? (< 0.1%). And what are the benefits? Well, indirect costs are how the U.S. government builds up a distributed network of scientific and technical infrastructure and capacity. This capacity serves the national interest.

If you think you're going to help debt by cutting indirect costs and crippling university research permanently, may I introduce you to the foundational notions of a knowledge economy and how fundamental advances feed into technology developments that increase productivity and thus GDP. Permanently reducing growth is another way of making debt servicing worse.