Four additional prestigious universities, namely Dartmouth College, Rice University, Vanderbilt University, and Northwestern University, have consented to resolve a class action lawsuit that claimed they infringed antitrust regulations in setting financial aid packages for accepted students. The accord was disclosed in court filings on a Friday. This settlement agreement follows Yale University, Columbia University, Duke University, Brown University, and Emory University’s collective commitment to pay $104.5 million last month and the University of Chicago’s earlier agreement to pay $13.5 million in 2022.
The proposed settlement, which awaits preliminary approval from a federal judge, will bring the total settlement amount in this case to $284 million. The United States antitrust law permits higher education institutions to cooperate in establishing financial aid awards for applicants, provided they do not consider a student’s ability to pay tuition when deciding whether to admit them – a practice known as “need-blind” admission.
However, attorneys representing the eight former students contend that 17 of the nation’s leading universities, including the ones mentioned above, either breached need-blind admission or colluded with other schools in establishing their financial aid awards. This alleged conduct reduced price competition among the universities and prejudiced students requiring financial assistance, according to court documents.
Representatives from these four universities issued statements in response to the lawsuit. A Northwestern University spokesperson declared, “We are dedicated to reducing financial barriers for our students … Although we maintain that the University did not engage in any wrongdoing and the plaintiffs’ allegations are unfounded, we have agreed to settle this matter amicably so as to avoid protracted litigation and divert our resources to advancing Northwestern’s global excellence, outstanding teaching, innovative research, and the personal and intellectual growth of our students.”
A Dartmouth College representative stated, “Dartmouth has a rich tradition of making education accessible to generations of students and their families. Since 2014, the institution has invested over a billion dollars in financial aid. Nearly 15% of this year’s incoming class is attending Dartmouth without assuming responsibility for paying tuition, housing, meals, and several other fees. More than half of the class has received some form of financial aid. Dartmouth remains steadfast in its dedication to providing financial aid based on individual student needs.”
A Vanderbilt University spokesperson shared, “Although we believe the plaintiffs’ claims are unsubstantiated, we have reached a settlement to preserve the privacy of our students and families and maintain our focus on delivering one of the world’s finest undergraduate educations to talented scholars from all socio-economic backgrounds.”
Rice University did not respond to CNN’s request for comment.
“These 10 settlements draw attention to the seven remaining elite universities that have yet to take corrective action and make amends for overcharging their alumni and students from working-class and middle-class backgrounds,” said Robert Gilbert, one of the attorneys representing the former students.
The mounting pressure is reflected in the individual settlement amounts each university has agreed to pay. Following Chicago’s September finalization of its agreement, the settlement costs have grown significantly. The universities that reached a settlement last month paid between $18.5 million and $24 million, whereas Dartmouth, Rice, Vanderbilt, and Northwestern’s settlements ranged from $33.75 million to $55 million each.
The seven universities yet to settle include the University of Pennsylvania, along with Notre Dame, Georgetown, Cornell, Johns Hopkins, Massachusetts Institute of Technology, and California Institute of Technology.
