Universities in Northern Ireland say they would have to cut student numbers if their Stormont funding is reduced.
Four universities raised the issue in a joint letter to the Northern Ireland secretary.
The letter said cutting undergraduate places would have "a fundamental and dangerous impact" on Northern Ireland's future.
The Department for the Economy (DfE) is set to reduce its funding to universities to save money.
Its recently published consultation on its 2023-24 budget said it planned to reduce the teaching grant to Northern Ireland's universities by 10% to save about £14m.
It is also planning to cut funding to further education (FE) colleges by 4% to save about £9m.
Officials have examined the possibility of a rise in tuition fees to raise money, but that would require a decision by a Stormont minister and a change in legislation.
