Elite Universities Settle Financial Aid Collusion Lawsuit for $104.5 Million

Despite Settlement, Universities Deny Wrongdoing and Maintain Their Financial Aid Policies Were Legal

Five elite universities, Yale, Columbia, Duke, Brown, and Emory, have agreed to pay a combined $104.5 million to settle a lawsuit accusing them of colluding on financial aid and admissions violations.
The lawsuit alleged that the universities violated antitrust law by ignoring their pledge to not consider a student’s ability to pay tuition when deciding on admission, a practice referred to as “need-blind” admission.
In the settlement filings, the universities continue to deny any wrongdoing or liability, asserting that their financial aid policies were legal and pro-competitive.
Despite the settlements, the universities maintain that their decision to settle was to avoid the cost and inconvenience of prolonged litigation, not an admission of guilt.
Other schools named in the original 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, have yet to settle.