Financial Aid Class Action Settlement - Update (October 2025)
On June 26, 2025 and July 30, 2025, the Court granted final approval of additional settlements with
Caltech
and Johns Hopkins totaling $35,250,000. These new settlements bring the total approved settlements in
this
case to almost $320,000,000. The new claim deadline for the newly included schools in the financial
aid anti-trust class action lawsuit is December 27, 2025.
Amounts are as follows: Caltech $16,750,000; Johns Hopkins $18,500,000. The average payout from these
two
settlements is estimated at about $250 if roughly half of eligible class members file. The case
continues
against five non-settling universities: Cornell, Georgetown, MIT, Notre Dame, and Penn.
Notice of Approved Class Action Settlements
The Court-authorized notice confirms that final approval has been granted for settlements with the
California Institute of Technology and Johns Hopkins University. Together these settlements provide
$35,250,000 for eligible students, adding to the larger fund which now exceeds $320,000,000.
If you already filed a valid claim for earlier settlements with Brown, Chicago, Columbia, Dartmouth,
Duke,
Emory, Northwestern, Rice, Vanderbilt, or Yale, you do not need to file again. Your claim will
automatically
apply to the new Caltech and Johns Hopkins settlements. If you have not filed before, you must
submit a
claim by December 27, 2025.
Settlement amounts are as follows: Caltech $16,750,000; Johns Hopkins $18,500,000. The estimated
average
payout from these two settlements is about $250 if roughly half of eligible class members file.
The settlement class includes U.S. citizens and permanent residents who received some need-based
financial
aid that did not cover the full cost of attendance. Class periods are: Chicago, Columbia, Cornell,
Duke,
Georgetown, MIT, Northwestern, Notre Dame, Penn, Rice, Vanderbilt, Yale (2003–Feb 2024); Brown,
Dartmouth,
Emory (2004–Feb 2024); Caltech (2019–Feb 2024); Johns Hopkins (2021–Feb 2024).
Excluded from the class are trustees, certain administrators, in-house legal staff, and non-U.S.
residents
at the time of attendance. Settlement Class Counsel are Freedman Norman Friedland LLP, Gilbert
Litigators &
Counselors PC, and Berger Montague PC. Any leftover funds may be donated to charities promoting
access to
higher education for disadvantaged students and families.
A total of $319.25 million class action settlements have been reached involving seventeen universities.
Ten
large universities have agreed to the financial aid, and more universities may agree, resulting in a
larger
settlement fund. The financial aid class action lawsuit centers around certain colleges providing a
settlement to students who received need-based financial aid, but still had outstanding expenses
while
attending these universities.
The class action lawsuit alleges that universities colluded on financial aid decisions, violating
antitrust
laws. Specifically:
1. The class action claims that 17 prestigious universities, including Cornell, participated in a
"price-fixing cartel" that artificially increased the net price of attendance for students receiving
need-based financial aid.
2. The universities allegedly used an antitrust exemption known as the "568 exception" from the
Improving
America's Schools Act of 1994 to collaborate on financial aid formulas and decisions.
3. This exemption allowed univeristy administrations to discuss financial aid formulas with other
universities, allowing some schools to consider students' financial need in admissions decisions.
4. As a result of this alleged collusion, the universities are accused of providing less need-based
financial aid than they would have if there had been full and fair competition.
5. The class action lawsuit claims that this practice led to artificially reduced financial aid
awards and
systematically increased net tuition prices paid by thousands of students and their families.
Do I need to submit another claim if I already filed earlier
No. If you submitted a valid and timely claim for the earlier settlements, you will be automatically
considered for the Caltech and Johns Hopkins settlements. No new form is required for those claimants.
How are payments calculated
Payments are proportional. The administrator uses the net settlement fund and allocates pro rata based on
eligible years and out-of-pocket costs during the class period. Final amounts depend on total valid claims
and court-approved fees and expenses.
Is the settlement payment taxable
Tax treatment can vary. Many consumer settlement payments are taxable. Consider consulting a tax
professional. The administrator may issue tax forms if required by law.
Do loans count as covering my costs
Loans do not count as aid for purposes of exclusion. Eligibility focuses on need-based or merit aid that
fully covered costs. If loans were used to cover remaining costs, you may still be eligible.
Can I qualify if I attended more than one university on the list
Yes. You can be eligible for any covered years at any of the listed universities during the class periods.
File once with complete information.
I am not a U.S. citizen or permanent resident
Individuals who were not U.S. citizens or permanent residents at the time of attendance are excluded from
the settlement class.
What if my university has not settled yet
You can still recover from approved settlements even if your specific university has not settled. The case
continues against Cornell, Georgetown, MIT, Notre Dame, and Penn.
When will payments be sent
Payments occur after the claim review process, resolution of any appeals, and court approval of
distribution. The timeline depends on total claims and administrative steps.
Financial Aid College Settlement
This $319.25 million class action settlement alleges elite U.S. universities violated federal laws
by
colluding on financial aid decisions, resulting in less need-based aid being provided to
students than
if there had been fair competition.
The universities alleged in the class action lawsuit deny these allegations, maintaining that their
financial aid policies were legal and pro-competitive, and that financial aid awards were not
artificially
reduced. The universities involved in the various financial aid settlements include:
• Caltech,
• John Hopkins,
• Brown University,
• California Institute of Technology,
• University of Chicago,
• Columbia University,
• Cornell University,
• Dartmouth College,
• Duke University,
• Emory University,
• Georgetown University,
• Johns Hopkins University,
• Massachusetts Institute of Technology,
• Northwestern University,
• University of Notre Dame,
• University of Pennsylvania,
• William Marsh Rice University,
• Vanderbilt University,
• and Yale University.
The following universities have already settled upon a class action agreement:
• Chicago University has settled on a class action payment of $13.5 million.
• Emory University has settled on a class action payment of $18.5 million.
• Yale University has settled on a class action payment of $18.5 million.
• Brown University has settled on a class action payment of $19.5 million.
• Columbia University has settled on a class action payment of $24 million.
• Duke University has settled on a class action payment of $24 million.
• Dartmouth University has settled on a class action payment of $33.75 million.
• Rice University has settled on a class action payment of $33.75 million.
• Northwestern University has settled on a class action payment of $43.5 million.
• Vanderbilt University has settled on a class action payment of $55 million.
The $319.25 million class action lawsuit alleged that the universities mentioned above engaged in an
anticompetitive conspiracy by limiting the amount of financial aid students received, which resulted
in
artificially higher costs when attending these universities. The class action lawsuit alleged that
the
universities collaborated through an organization called the "568 Presidents Group", sharing
information and
agreeing on financial aid rules in order to reduce competition and raise prices on tuition, hurting
students
and their families paying for tuition.
The universities listed in the class action lawsuit have denied these tuition price-fixing
allegations,
stating that they did not engage in any unlawful conduct and that their financial aid policies were
lawful
and aimed at promoting socio-economic diversity. Colleges and universities named in the settlement
argued
that the class action claims lacked merit. However, they have agreed to a class action settlement
while not
acknowledging any wrongdoing.
How Do I Qualify For A Payout?
You are part of this settlement if you're a U.S. citizen or permanent resident who:
• Enrolled in a full-time undergraduate program at any of the listed universities.
• Received some need-based financial aid from any of these universities.
• Still had to pay some of your tuition, fees, room, or board costs out of pocket (after
considering
all types of financial aid, except loans) during any undergraduate year.
You must have attended any of the Universities below during a specific time period if specified:
• Chicago, Columbia, Cornell, Duke, Georgetown, MIT, Northwestern, Notre Dame, Penn,
Rice,
Vanderbilt, Yale:
From Fall Term 2003 through February 28, 2024
• Brown, Dartmouth, Emory:
From Fall Term 2004 through February 28, 2024
• CalTech:
From Fall Term 2019 through February 28, 2024
• Johns Hopkins:
From Fall Term 2021 through February 28, 2024
If you still not sure whether you are the part of this settlement you can contact the financial
aid
antitrust class action administrator.
What Can I Get?
Each Class Member who submits a valid and timely claim form will receive a portion of the
$319.25 million
settlement fund. The amount each person gets will depend on how much they paid for
attendance at one of the
listed universities during the Settlement Class Period.
This amount will be calculated based on the average annual cost of attendance at the
university and adjusted
for the number of years attended. Assuming about half of the estimated 200,000 class members
submit claims,
the average payout is expected to be around $2,000. Please note, however, that the $2,000 figure sometimes
quoted online is not from the official notice. It appears to be an unofficial estimate floating around
consumer and legal blogs to illustrate a possible high-end scenario if participation were very low.
The exact amount each person receives and when they receive it will be determined once the
court approves
the settlement and the distribution plan. Any remaining funds in the settlement fund after
distribution will
be donated to charitable causes promoting access to higher education for disadvantaged
students and
families.
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:
How Do I File a Claim?
You can submit a claim online using your unique Claim ID and Confirmation Code, that you may
have received
via email or mail. Alternatively, you can file a claim without a claim ID. You will be asked
for proof or
documentation in order to complete the claim form. The deadline to submit claims is
December 27,
2025.
Please note that your claim form will be rejected if you submit a settlement claim for
payout with any
fraudulent information. By providing this information and your sworn statement of its
veracity, you agree to
do so under the penalty of perjury. You would also be harming others that actually qualify
for the class
action settlement. If you are not sure whether or not you qualify for this class action
settlement, visit
the class action administrator's website below. OpenClassActions.com is only providing information and is not a
class action
administrator or a law firm. OpenClassActions is a participant in the Amazon affiliate
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