Harvard is subsidized by the federal government and the American taxpayer several ways. It benefits from federal student loan programs. It receives federal research grants. It is allowed to be a tax-exempt institution. And it is allowed to own a tax-exempt endowment. Normal private institutions in America have none of those.
If by "normal private institutions" you mean companies, sure, that's true. But normal private educational institutions absolutely benefit from this and other similar programs. The University of Phoenix, for instance, heavily recruits GI Bill-eligible students, and their right to do so was defended by Republican US senators.
> It receives federal research grants.
You can do this as a private company just fine. SBIR is a great example. I worked at a startup that got federal research grants less than a year after being formed.
> It is allowed to be a tax-exempt institution. And it is allowed to own a tax-exempt endowment.
These are common for normal non-profit institutions in America and are in no way specific to Harvard.
> Normal private institutions in America have none of those.
This is not true. Any non-profit classified corporation would be tax-exempt. This is not particularly difficult to set up. All you need to do is file with the IRS and not have shareholders.
