4 U.S. Universities Settle Financial Aid Case

Four additional private universities have reached a settlement in a lawsuit alleging violations of antitrust laws regarding financial aid determination for admitted students.

Dartmouth College, Rice University, Vanderbilt University, and Northwestern University have agreed to pay a combined total of $166 million to settle claims brought forth in a class action lawsuit filed in 2022.

Reporting for CNN, Eva Rothenberg states that Dartmouth College, Rice University, Vanderbilt University, and Northwestern University have agreed to pay a combined total of $166 million to settle claims brought forth in a class action lawsuit filed in 2022.

The lawsuit accused these universities of colluding on financial aid amounts while showing favoritism towards applicants from wealthier families.

This settlement follows a similar agreement reached by Yale, Columbia, Duke, Brown, and Emory universities, who collectively agreed to pay $104.5 million last month. Additionally, the University of Chicago settled for $13.5 million in 2022.

The settlement awaits preliminary approval from a federal judge, with the total settlement amount in this case potentially reaching $284 million if approved.

It's noted that US antitrust law allows higher education institutions to collaborate on financial aid awards, provided they do not consider a student's ability to pay tuition when making admissions decisions, a practice known as "need-blind" admission.

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