Reduced fabricated info about American university (7)
I believe the answer is:
limited
'reduced' is the definition.
(thesaurus)
'fabricated info about american university' is the wordplay.
'fabricated info' becomes 'lied' (I can't justify this - if you can you should believe this answer much more).
'about' indicates putting letters inside.
'american university' becomes 'MIT' (Massachusetts Institute of Technology).
'lied' enclosing 'mit' is 'LIMITED'.
Can you help me to learn more?
(Other definitions for limited that I've seen before include "Restricted in extent" , "Circumscribed, restricted" , "Restricted, finite" , "plc" , "Bounded, circumscribed" .)