A lawsuit bring on Sunday, alleging that more than a dozen top universities, including several Ivy League schools, for nearly two decades colluded to limit the terms of their financial aid for students.
The suit. reality of students artificially receiving financial aid.”
Among the schools named are Yale, Georgetown, Northwestern, Columbia, Brown and Duke universities. Others include the California Institute of Technology, the Massachusetts Institute of Technology, Dartmouth College, and the universities of Cornell, Emory, Rice, and Vanderbilt.
Based on The Wall Street Journal, the attorneys representing the five plaintiffs speculated that more than 170,000 students who received financial aid spanning 18 years could be eligible to join the lawsuit as plaintiffs. The defendants, the lawsuit alleges, overcharged these students “at least hundreds of millions of dollars.”
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The journal allows universities to freely exchange student aid formulas as long as they do not claim financial need aid. But according to the lawsuit, many of the schools mentioned above have reasons to limit the financial resources of students, making them eligible for the exemption or not.
“Under a true need-blind enrollment system, all students will be admitted without regard to the financial circumstances of the student or student’s family,” the plaintiffs wrote. “Far from this practice, at least nine Defendants over the years have favored wealthy applicants in the admissions process. These nine Defendants made admissions decisions regarding the student’s financial circumstances. members and their families, thereby disliking students who need financial aid.”
The magazine said this is not the first time the higher education system has been accused of violating antitrust laws. Back in 1991, all eight Ivies and MIT were charged with price fixing for allegedly discussing the terms of their student aid.
Three years later, Congress passed legislation allowing only blind schools to share and follow a set of pricing guidelines that set out how much students would receive in aid. The law benefits universities because it allows them to avoid the “bid wars” for low-income students.
https://www.salon.com/2022/01/10/yale-brown-columbia-and-13-others-sued-over-collusion-to-limit-financial-aid-for-students/ Yale, Brown, Columbia and 13 other colleges have sued for collusion to limit student financial aid.