$166M Financial Aid Lawsuit Settlement and Updates for Private Universities

Last Updated on February 26, 2024 by Robert C. Hoopes

Today, Dartmouth College, Rice, Vanderbilt, and Northwestern University have reached a settlement in a lawsuit alleging violations of antitrust laws regarding financial aid for admitted students. The total settlement amount for these four prestigious universities is a whopping $166 million, contributing to a total settlement of $284 million if approved by a federal judge.

The lawsuit, which accused 17 top universities of not following need-blind admission policies or colluding in setting financial aid awards, claimed that these practices reduced price competition and put students in need of financial aid at a disadvantage. In statements defending their financial aid practices, Northwestern University, Dartmouth College, and Vanderbilt highlighted their commitment to removing financial barriers for students.

The settlements for Dartmouth, Rice, Vanderbilt, and Northwestern range from $33.75 million to $55 million, following previous settlements by other universities ranging from $18.5 million to $24 million. However, seven universities including the University of Pennsylvania, Notre Dame, Georgetown, Cornell, Johns Hopkins, MIT, and Caltech have yet to settle.

Attorneys representing former students involved in the lawsuit are urging these remaining universities to settle in order to rectify potential overcharges to alumni and students from working and middle-class backgrounds. The pressure is on for these institutions to address the allegations and ensure fair treatment for all their students. Stay tuned for updates on this evolving story.

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