Elite Universities Pay $104.5 Million to Settle Financial Aid Collusion Lawsuit

In a landmark case highlighting the complexities of college admissions and financial aid, five prestigious universities have agreed to pay a combined $104.5 million to settle a lawsuit accusing them of colluding on financial aid and admissions practices. Yale, Columbia, Duke, Brown, and Emory Universities reached this settlement following allegations by former students that the institutions violated antitrust law by not adhering to their "need-blind" admission pledge.

The lawsuit, brought against over a dozen schools, claimed these universities considered students' ability to pay tuition during the admissions process, contrary to their public commitment to need-blind admissions. This practice allegedly disadvantaged middle-class and working-class students.

Attorney Robert D. Gilbert, representing the students, stated it was time for the universities to rectify the overcharges resulting from two decades of collusion on financial aid. Despite the substantial settlement, the universities continue to deny any wrongdoing, asserting their financial aid policies were legal and beneficial to students.

Columbia and Duke Universities each agreed to pay $24 million, while Yale and Emory will pay $18.5 million each. Brown University has settled for $19.5 million. The University of Chicago, another defendant, had previously settled for $13.5 million, bringing the total settlement amount to $118 million.

Vanderbilt University has also reached a settlement agreement, though the amount has yet to be disclosed. A spokesperson emphasized the university's commitment to privacy and providing top-tier education to scholars from diverse backgrounds.

The remaining institutions named in the lawsuit, including the University of Pennsylvania, Georgetown University, Cornell University, University of Notre Dame, Massachusetts Institute of Technology, California Institute of Technology, Johns Hopkins University, Dartmouth College, Northwestern University, and Rice University, are yet to settle.

This case underscores the ongoing debate and scrutiny over college admissions practices and the importance of transparency and fairness in the higher education sector. The settlement marks a significant moment in holding prestigious institutions accountable for their admissions and financial aid policies.