$284 Million College Financial Aid Class Action Settlement
Photo Credit: Dom Fou - Unsplash | Published: September 18, 2024
Claim Form Deadline: Pending
Payout: Varies
Proof required: Yes
What is the College Financial Aid Class Action Lawsuit About?
A total of $284 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.
The Brief
This $284 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:
• 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 $284 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 $284 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.
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 17, 2024.Claim Form Website: www.FinancialAidAntitrustSettlement.com
Submit Claim
Filing Class Action Settlement Claims
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 advertising program and this post may contain affiliate links, which means we may earn a commission or fees if you make a purchase via those links.
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