Universities settle financial aid antitrust suit for $284M

If you attended one of the seventeen universities involved and received need-based financial aid that did not fully cover your tuition, fees, room, or board, you may be eligible to claim an award from a class action settlement.

Brown University, University of Chicago, Columbia University, Dartmouth College, Duke University, Emory University, Northwestern University, Rice University, Vanderbilt University, and Yale University have agreed to pay $284,000,000 to settle a class action lawsuit for allegedly conspiring to limit the amount of financial aid provided to students, thereby inflating net prices paid by students.

Who can file a claim?

To be eligible to file a claim, you must meet the following criteria:

• Be a U.S. citizen or permanent resident.
• Have enrolled in one or more of the Defendants' full-time undergraduate programs during the specified Class Period.
• Received some need-based financial aid from one or more Defendants.
• Your tuition, fees, room, or board was not fully covered by financial aid or merit aid (excluding loans) in any undergraduate year.

The Class Period varies by university:

• For Chicago, Columbia, Cornell, Duke, Georgetown, MIT, Northwestern, Notre Dame, Penn, Rice, Vanderbilt, and Yale, the Class Period is from Fall Term 2003 through February 28, 2024.
• For Brown, Dartmouth, and Emory, it is from Fall Term 2004 through February 28, 2024.
• For CalTech, it is from Fall Term 2019 through February 28, 2024.
• For Johns Hopkins, it is from Fall Term 2021 through February 28, 2024.

How much can class members get?

The average claimant is expected to receive about $2,000, assuming about half of the estimated 200,000 class members submit timely claims.

The exact amount each class member receives will depend on several factors:

• The number of years or fractions thereof the claimant paid a Defendant University for attendance during the Class Period.
• The average annual Net Price charged by the university, calculated as the average price for tuition, room, and board minus the average amount of financial aid (excluding loans).
• The total number of claimants.

The Net Settlement Fund will be divided among claimants based on a pro rata calculation. For example, if a claimant attended a university for two years with an average Net Price of $20,000 per year, their share would be calculated as follows: (2 years x $20,000) / (total sum of all claimants' Net Prices) x Net Settlement Fund.

Is proof required to submit a claim?

Yes, claimants need to provide proof of their membership in the Settlement Class.

Acceptable forms of proof include:

• A transcript showing attendance at a Defendant University during the Class Period.
• A diploma from a Defendant University during the Class Period.
• A student ID with a date indicating it was issued during the Class Period.
• A receipt of payment for tuition, room, board, and/or fees to a Defendant University during the Class Period.
• A financial aid award letter from a Defendant University issued during the Class Period.

How to claim an award

To claim an award, you must submit a valid and timely claim. You can file a claim online or download a printable copy of the Claim Form and mail it to the Claims Administrator. The mailing address is:

Financial Aid Antitrust Settlement

1650 Arch Street, Suite 2210

Philadelphia, PA 19103

Ensure your claim is submitted online or postmarked by December 17, 2024.

Claim instructions

1. Visit the claim submission page to access the online form.
2. Enter your unique Claim ID and Confirmation Code if you received a postcard or email notice.
3. Complete the Claim Form with your personal information and details about your attendance at the Defendant University.
4. Attach the required proof of Settlement Class membership.
5. Choose your preferred payment method.
6. Submit the form online or mail it to the Claims Administrator.

Payment methods

• PayPal
• Venmo
• Zelle
• Virtual Prepaid Card
• Physical Check

Settlement fund breakdown

The settlement fund of $284,000,000 will cover:

• Payments to eligible class members.
• Costs of settlement administration and notice.
• Attorneys' fees and reimbursement of expenses, not to exceed $12,000,000.
• Service awards of up to $20,000 for each of the eight Settlement Class Representatives.
• Any applicable taxes on the Settlement Fund.

Important dates

• Deadline to File a Claim: December 17, 2024

When is the Financial Aid Antitrust Settlement payout date?

After the claim deadline on December 17, 2024, the Claims Administrator will process the claims and distribute payments to eligible class members. The Court will hold a final approval hearing to determine the fairness of the settlement.

Why was there a class action settlement?

The lawsuit alleged that the universities conspired to limit financial aid, violating federal antitrust laws. This alleged conspiracy was said to have reduced the amount of financial aid provided, inflating the net prices paid by students. The universities denied these allegations but agreed to settle to avoid the costs and risks of continued litigation.