Ten of the 17 institutions that were sued for alleged price-fixing reached a $284 million deal with a federal judge, but the University of Pennsylvania and six other universities are still facing legal action. As per class action lawsuit, which was filed in 2022 in the U.S. District Court in Illinois, the schools were a part of the 568 Presidents Group, which acted as a “cartel,” plotting to “fix prices” on financial aid and giving students from wealthy families and school donors preferential admissions treatment.
Court documents state that this was against federal antitrust laws. Several institutions’ settlement amounts were accepted on July 20 by U.S. District Judge Matthew Kennelly. Brown University, the University of Chicago, Columbia University, Duke University, Dartmouth College, Emory University, Yale University, Northwestern University, Rice University, and Vanderbilt University will all contribute $19.5 million, $13 million, $24 million, and $33.75 million, respectively. The colleges refused to acknowledge any misconduct as part of the arrangement. They settled, some claimed, to save money on expensive litigation.
$284M University Financial Aid Class Action Settlement
Several of the most prominent institutions in the United States are accused of favoring candidates from affluent families in their admissions processes, and a federal court last week approved $284 million in settlements linked to the class-action complaint. Financial aid-seeking students from low-income families suffered as a result of this systematic action. Originally filed in 2022, the class-action complaint targeted 17 prestigious colleges and included over 200,000 plaintiffs who are either current students or recent graduates.
The indictment alleges that these universities broke U.S. antitrust laws by not upholding a pledge to exclude student financial factors from admissions decisions. As of today, many colleges that were sued have settled. Court documents indicate that students who fulfil the $284M University Financial Aid Class Action Settlement 2024 Eligibility Requirements will receive at least $2,000 each.
Details on $284M University Financial Aid Class Action Lawsuit
| Defaulter | various universities |
| Country | USA |
| Deadline to Submit a Claim | December 17, 2024 |
| Payment Amount | $284M |
| Per student amount | Around $2,000 |
| Category | Settlement News |
| Official Website | www.financialaidantitrustsettlement.com |
Universities In this Class Action Lawsuit That Agreed to a Settlement
The following universities and the plaintiffs came to a settlement agreement:
- Chicago consented to pay $13.5 million as a settlement.
- Emory consented to pay $18.5 million as part of the settlement.
- Yale consented to pay $18.5 million as a settlement.
- Brown consented to pay $19.5 million as part of the settlement.
- Columbia consented to pay $24 million as a settlement.
- Duke is ready to pay a settlement of $24 million.
- Dartmouth consented to pay $33.75 million as a settlement.
- Rice consented to pay $33.75 million as a settlement.
- Northwestern consented to pay $43.5 million as part of the settlement.
- Vanderbilt consented to pay a settlement of $55 million.
Eligibility Criteria
The Court described the Settlement Class as follows in its February 28, 2024, Preliminary Approval Order:
- People who were enrolled full-time in one or more of the defendants’ undergraduate programs and who were given at least some need-based financial aid by one or more defendants,
- And whose housing, board, tuition, and fees to enroll in one or more of the defendants’ full-time undergraduate programs were not entirely funded by the sum of their merit aid (excluding loans) and financial aid in any given undergraduate year.
Claim Amount, Process and Deadline to file claim
Forms for claims are now available and the Submit Claim page on www.financialaidantitrustsettlement.com allows you to submit a Claim Form online. The amount of payment varies according to how much and for how many years students paid for room and board and tuition. The settlement seeks to guarantee fair compensation for students impacted by lawsuit, even if individual payouts would vary.
You must submit a valid claim form before December 17, 2024 and follow the directions on the official settlement website and submit their academic records in order to lodge a claim. Checking the official website is must, if you are unsure of your eligibility in order to prevent making a false claim that could hurt other qualified students.
Latest update on this lawsuit
The 568 Presidents Group was accused of engaging in an anticompetitive scheme by a number of prominent institutions in a class action complaint. The plaintiffs contend that by sharing financial aid data, these universities inflated the cost of tuition by limiting the amount of need-based aid that students may obtain.
The colleges in question settled the claim for $284 million, although not acknowledging any wrongdoing. As part of the settlement, class members will get a monetary payout that is determined by how many years they spent for tuition, lodging, and board as well as how much financial aid they were given. So apply before December 17, 2024 to qualify for this payment.
What lawyers said in the court?
Lawyers said in court documents that several of the most prominent universities in the country conspired to get higher financial aid offers and give preference to students whose parents were well-off and had contributed money to the schools or were likely to do so. According to estimates, the class action may involve billions of dollars and up to 200,000 students who attended the universities over a 20-year span.
The Financial Aid Antitrust website states that the $284 million will be used to compensate need-based financial aid recipients who attended the schools that resolved. Tuition, fees, and housing expenses can be covered using the funds.
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