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Open Settlements

$284 Million College Financial Aid Class Action Settlement

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Claim Form Deadline: Pending

Payout: Varies
Proof Required: Yes

Overview of the College Financial Aid Class Action Lawsuit

A class action settlement totaling $284 million has been reached involving seventeen universities. Ten major universities have agreed to the financial aid settlement, with the possibility of more institutions joining, potentially increasing the total fund. This lawsuit addresses the claims of students who received need-based financial aid but still incurred additional expenses while attending these universities.

The class action alleges that these universities colluded on financial aid decisions, violating antitrust laws. Key points include:

  1. The lawsuit claims that 17 prestigious universities, including Cornell, formed a “price-fixing cartel” that artificially raised the net cost of attendance for students receiving need-based aid.
  2. The universities allegedly exploited 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 university officials to discuss financial aid methods with other institutions, enabling some to factor in students’ financial needs during admissions.
  4. The alleged collusion resulted in less need-based financial aid being offered than would have been available under fair competition.
  5. Consequently, the lawsuit claims that this practice led to reduced financial aid awards and higher net tuition costs for thousands of students and their families.

The $284 million settlement contends that elite U.S. universities violated federal laws by colluding on financial aid decisions, ultimately providing less support to students than they would have under competitive conditions.

Universities Involved

The universities named in the class action deny the allegations, asserting that their financial aid policies were legal and competitive. The institutions involved include:

Settlements have been reached with several universities:

Allegations of Anticompetitive Behavior

The class action alleges that the universities engaged in an anticompetitive conspiracy by limiting financial aid, leading to higher costs for students. The lawsuit claims they collaborated through the “568 Presidents Group,” sharing information and agreeing on financial aid policies to suppress competition and raise tuition prices, negatively impacting students and their families.

The universities have denied these price-fixing allegations, maintaining that their policies were lawful and aimed at promoting socio-economic diversity. They argue that the claims lack merit but have agreed to the settlement without admitting wrongdoing.

Eligibility for Payout

You may qualify for the settlement if you are a U.S. citizen or permanent resident who:

  • Enrolled in a full-time undergraduate program at any of the listed universities.
  • Received need-based financial aid from these institutions.
  • Had out-of-pocket expenses for tuition, fees, room, or board after accounting for all forms of financial aid (excluding loans) during your undergraduate years.

Eligibility periods for specific universities are as follows:

If you are unsure about your eligibility, you can contact the financial aid antitrust class action administrator for clarification.

Expected Compensation

Class members who submit valid claims will receive a portion of the $284 million settlement fund. The exact amount will depend on the costs incurred while attending one of the listed universities during the eligibility period.

It is anticipated that, assuming about half of the estimated 200,000 class members file claims, the average payout could be around $2,000. The specific amounts and distribution timeline will be determined once the court approves the settlement and the distribution plan. Any leftover funds will be donated to charitable organizations that support access to higher education for disadvantaged students and families.

How to File a Claim

You can submit a claim online using your unique Claim ID and Confirmation Code, which you may have received via email or mail. If you do not have a Claim ID, you can still file a claim. Documentation may be required to complete the claim form. The deadline for submitting claims is December 17, 2024.

Claim Form Website: www.FinancialAidAntitrustSettlement.com

Please be aware that your claim form will be rejected if it contains fraudulent information. By submitting your information and your sworn statement of its accuracy, you are agreeing to do so under penalty of perjury. Submitting false information not only jeopardizes your claim but also affects others who are genuinely eligible for the settlement. If you are uncertain about your eligibility for this class action settlement, please visit the class action administrator’s website for more information. Note that NoProofClassActions.org participates in the Amazon affiliate advertising program, and this post may include affiliate links, which could result in us earning a commission if you make a purchase through those links.