The plaintiffs are seeking class-action status, saying the collusion has limited price competition and has paid out more than hundreds of millions of dollars to 1,70,000 financial aid recipients over two decades.
Five American college graduates have sued 16 major US universities, including Yale, Columbia and the University of Chicago, alleging collusion with them to limit financial aid to graduate students in violation of antitrust laws.
The plaintiffs are seeking class-action status, saying the collusion has limited price competition and paid out more than hundreds of millions of dollars to 1,70,000 financial aid recipients over two decades.
The 16 schools are members of the 568 Presidents Group, a consortium of colleges that discusses general financial aid principles.
The plaintiffs wrote, “Elite, defendants like private universities are the gatekeepers of the American Dream.” “The defendants’ misconduct is particularly serious because it has narrowed an important avenue for upward mobility.”
Yale and Columbia did not respond to requests for comment on January 10. A University of Chicago spokesperson declined to comment. A message sent to a website for 568 Presidents Group was not immediately accepted.
According to the College Board, tuition increases at private US universities have outpaced inflation in recent decades.
According to the schools’ websites, undergraduate tuition at Yale and Columbia for the current academic year is $59,950 and $60,514, respectively, excluding room and board.
The lawsuit, filed in Chicago federal court, seeks unspecified triple damages for financial aid recipients who have attended schools since 2003, as well as for their parents.
Many schools offer financial aid based on family income, known as need-based aid.
The universities in the 568 Presidents Group state that they are need-blind, meaning they do not consider financial aid in admissions decisions.
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