Heightened pressure sadly set back Swedish university (7)
I believe the answer is:
uppsala
'swedish university' is the definition.
(university in Uppsala, Sweden)
'heightened pressure sadly set back' is the wordplay.
'heightened' becomes 'up'.
'pressure' becomes 'p' (abbreviation).
'sadly' becomes 'alas' (I've seen this before).
'set back' shows that the letters should be reversed in order.
'alas' written backwards gives 'sala'.
'up'+'p'+'sala'='UPPSALA'
(Other definitions for uppsala that I've seen before include "City in Sweden" , "Town with oldest Swedish university" , "City NW of Stockholm" , "Would the Swedish city appal us?" .)