Short song about US university (7)
I believe the answer is:
limited
'short' is the definition.
(thesaurus)
'song about us university' is the wordplay.
'song' becomes 'lied' (type of German song).
'about' is an insertion indicator.
'us university' becomes 'MIT' (Massachusetts Institute of Technology).
'lied' placed around 'mit' is 'LIMITED'.
(Other definitions for limited that I've seen before include "Confined within bounds" , "Bounded, circumscribed" , "Narrow" , "Restricted in extent/size" , "Restricted, finite" .)