Don't the Israeli taxpayers support the students? Non-negotiable statement could also mean funding be cut-off by the taxpayers.

If they don't want to serve EVERY citizen of Israel by escaping their duty to IDF, then the citizens/taxpayers should escape having to support them. It is a two way street and they could work it out where they do their IDF duty AFTER they have studied, or even BEFORE they start their studies. Why do so many want or think they are entitled to a free ride these days?