USC Late Fee Settlement — Current and Former Students Who Paid Late Fees Could Get Up to $225 Back
By Steve Levine
Published: March 18, 2026
Maximum Payment: Up to $225 per student (30% of late fees charged)
Proof Required: No — USC calculates your payment from its own records
Claim Deadline: June 5, 2026
What Is This Settlement About?
If you are a current or former student at the University of Southern California and you were ever charged a late fee on your student account, USC may owe you money — up to $225 — and you do not need to provide any proof because USC already has your records.Two former USC students, Alejandra Chaisson and Grace Chong, filed a class action lawsuit alleging that three types of fees USC routinely charged to student accounts were unlawful penalties under California law. These fees are the kind that most USC students have seen on their accounts at one point or another: a Late Registration Fee (charged if you registered for classes after the deadline), a Late Settlement Fee (charged if you did not pay your tuition balance by the due date), and monthly Finance Charges (interest-like charges applied to unpaid balances each month).
The lawsuit argued that these late fees were not reasonable estimates of USC's actual costs from late payments, and that under California Civil Code sections 1671 and 3275, they were unlawful penalties that should be refunded. The lawsuit also alleged the fees violated California's Unfair Competition Law. USC vigorously denied all allegations and contends its late fees fully comply with California law. The court did not rule on the merits — the parties agreed to settle through a mediation with a retired judge.
Do I Qualify?
You qualify if you are a current or former USC student who was charged one or more of the following fees at any time between July 14, 2016 and March 4, 2026, and you have not received a full refund or waiver of those fees:Late Registration Fees — charged when you registered for classes after a deadline.
Late Settlement Fees — charged when you did not pay your tuition balance by the due date.
Monthly Finance Charges — interest-like charges applied to unpaid balances on your student account each month.
If someone else (a parent, guardian, or scholarship) paid your tuition and fees, you still qualify — but only the student can file the claim, not the person who paid.
How Much Money Will I Get?
Your payment will be 30% of the total late fees USC charged to your account during the class period that were not waived or refunded, up to a maximum of $225. USC will calculate the amount based on its own financial records — you do not need to figure it out yourself.For example, if USC charged you $500 in total late fees over the years and none were waived, your payment would be $150 (30% of $500). If your total late fees were $1,000, you would receive the $225 maximum cap.
The total class-wide cap is $2 million. If total valid claims exceed $2 million, individual payments will be reduced proportionally so that the total does not exceed the cap.
Do I Need Proof?
No. USC will calculate your payment based on its own records of your student account. You do not need to provide receipts, bank statements, or any documentation of the fees you were charged.If you believe USC's records of your late fees are incorrect, you can submit a written dispute to the claims administrator with supporting documents. The claims administrator has sole authority to resolve disputes.
You can review USC's records of your account through the same online portal you normally use to access your student account.
How Do I File a Claim?
Submit a claim form online at the settlement website using the unique ID that was emailed to you. Each unique ID can only be used once to prevent fraudulent claims. You can also print the claim form and mail it. The deadline is June 5, 2026.On the claim form, you will choose how you want to receive your payment: as a credit to your USC account (if you still owe USC money, this is automatic), by electronic transfer through PayPal or Zelle, or by check mailed to you.
Important: if you still have an outstanding balance on your USC account at the time payments are processed, your payment will automatically be applied as a credit to your USC account regardless of your preferred method.
Checks expire 90 days after they are mailed, so cash them promptly. Any unclaimed funds will be donated to Scholarship America, Inc.
What Other Benefits Does the Settlement Include?
Even if you do not file a claim, all USC students benefit from two additional changes. For two years after the settlement takes effect, USC will waive at least 30% of the late fees it assesses (the Late Fee Waiver). USC will also pause all monthly Finance Charges for a 10-week period within 180 days after the settlement takes effect (the Finance Charge Pause). You do not need to submit a claim to receive these benefits.What Are the Important Dates?
Claim Deadline: June 5, 2026
Opt-Out Deadline: May 4, 2026
Objection Deadline: May 4, 2026
Fairness Hearing: July 1, 2026 at 10:00 AM PDT, Los Angeles
Class Period: July 14, 2016 – March 4, 2026
What Happens If I Do Nothing?
If you do nothing, you will not receive a claim payment. You will still be bound by the settlement and give up your right to sue USC separately over the same late fee claims. However, you will still benefit from the Late Fee Waiver and Finance Charge Pause if you are a current student. To receive your cash payment of up to $225, you must file a claim by June 5, 2026.Case Information
Caption: Chaisson, et al. v. University of Southern California, Case No. 20STCV27062
Court: Superior Court of California, County of Los Angeles
Class-Wide Cap: $2,000,000
Maximum Per Student: $225 (30% of unreimbursed late fees)
Defendant: University of Southern California
Class Representatives: Alejandra Chaisson and Grace Chong
Class Counsel: Smith Krivoshey PC; Bursor & Fisher PA
Attorney Fees: Up to $1,135,000 (paid separately by USC, not from the $2M claims fund)
Service Awards: $4,000 each for two class representatives
Claim: Unlawful penalty fees under California Civil Code sections 1671 and 3275; California Unfair Competition Law
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:Official Settlement Notice (PDF)
Settlement Website: USCFeeSettlement.com
File Your Claim — Up to $225
Sources
• Official Settlement Website — USCFeeSettlement.com• Court-authorized settlement notice, Chaisson, et al. v. University of Southern California, Case No. 20STCV27062 (L.A. Super. Ct.)
Filing Class Action Settlement Claims
Please note that your claim form will be rejected if you submit a settlement claim 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. If you are not sure whether you qualify, visit the settlement website at USCFeeSettlement.com. OpenClassActions.com is a consumer advocacy and class action news site, and is not a class action administrator or a law firm.
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Pre-Qualify| USC Late Fee Settlement Summary | |
| Status | Open — Accepting Claims |
|---|---|
| Claim Deadline | June 5, 2026 |
| Max Per Student | $225 (30% of unreimbursed late fees) |
| Class-Wide Cap | $2,000,000 |
| Proof Required | No — USC calculates from its records |
| Who Qualifies | Current/former USC students charged late fees (July 2016 – March 2026) |
| Payment Options | USC account credit, PayPal, Zelle, or check |
| Case | Chaisson v. USC, No. 20STCV27062 (L.A. Super. Ct.) |
| Hearing | July 1, 2026 at 10:00 AM PDT (Los Angeles) |
| Website | USCFeeSettlement |