Just assuming that the university (out of its goodwill?) will do any of those things is kind of ludicrous. At my university, we had to fight tooth and nail (we had a union) to get the university to improve our health insurance and full waive our tuition (They did a tricky thing where they would waive all people with 50% TA-ships, and then they gave everyone a 49% one. Universities are not noble, altruistic actors. Far far from it)
1 - Less grad students.
2 - More undergrads doing the work of grad students.
3 - More adjuncts doing the work of grad students.
4 - Grad students being asked to do more.
The irony is this is happening at the great home of Price Theory!
Grad students are major drivers of funding and research for universities. Cutting them will reduce that funding further and make them look worse nationally as an institution.
Perhaps undergraduates SHOULD be welcome to do more of the work? I see no problem with offering cheap workstudies to help grad students and professors getting the little things done while they research and learn.
Adjunct professors might be a good thing-many tenured professors disdain teaching and it shows.
Grad students won't be asked to do more than they agree to because they have a union.
About 10 years ago the stipends were around 25-35k/year. Plenty to live off of in Richmond or Charlottesville.
I have a masters in Computer Science from UW-Madison and I had nothing to do with the PhD track. I just wanted more learning and the CS department was happy to provide it. There was no stigma associated with a masters degree there and it's definitely helped me in my career.
As far as I'm aware, all reputable American colleges will do the following for graduate students who are teaching assistants: 1) waive tuition 2) pay for the majority of a health insurance plan 3) issue a modest living stipend that's enough to live on, albeit not very comfortably. I know this is the case for Purdue.