"Yale, Georgetown, 14 other top colleges sued for alleged collusion"
Sixteen top U.S. universities, including Yale, Georgetown, and Northwestern, are under fire for alleged antitrust violations in a new lawsuit claiming they colluded to limit financial aid and inflate tuition costs. Filed in Illinois, the case accuses the schools of engaging in price-fixing under the guise of a shared methodology for assessing students' financial needs. The lawsuit also challenges the institutions' "need-blind" admissions claims, asserting that many favor wealthy applicants, especially donors’ families.
Eric Rosen, a lead attorney in the case and former prosecutor in the Varsity Blues scandal, emphasized the systemic issues exposed by the lawsuit. “While conspiring together on a method for awarding financial aid, which raises net tuition prices, defendants also consider the wealth of applicants and their families in making admissions decisions,” said Rosen. This alleged practice, the lawsuit argues, violates a 1994 law that permits financial aid collaboration only if admissions decisions are made without regard to applicants’ financial situations.
The complaint alleges that these universities, through a "price-fixing cartel," unfairly disadvantaged low-income students while prioritizing wealthier ones. Specific accusations include financial considerations in admissions for waitlisted applicants and certain programs. If proven, the collusion could impact over 170,000 former students and account for "hundreds of millions" in excess tuition payments.
In response, Yale and other institutions denied any wrongdoing, with Yale asserting full compliance with applicable laws. The lawsuit seeks to halt financial aid collaboration and recover damages for affected students.
This case marks a pivotal moment for higher education, challenging long-standing practices that critics argue perpetuate inequality. If successful, it could force elite universities to reconsider their admissions and financial aid policies, creating a more equitable system for future generations.
