Northwestern, U of Chicago, Notre Dame Among Major Universities Sued for Colluding to Hold Down Financial Aid Packages – Bloomberg

More than a dozen top U.S. colleges including Yale, Columbia and MIT were sued for allegedly conspiring to manipulate the admissions system to hold down financial aid for students and benefit wealthy applicants. The proposed antitrust class action lawsuit, filed Sunday in federal court in Chicago, accuses the university “cartel” of a long-running scheme to collectively adopt “a common formula for determining an applicant’s ability to pay” tuition, rather than competing freely over financial aid by trying to attract students through more generous aid offers.
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Frankns
4 years ago

Only commenting on the first element here. It’s very interesting … There just might be something to the complaint if the common setting of eligibility standards can be shown to decrease competition among these schools. Proving that could be difficult. From the schools’ perspective, they have adopted a policy of “coopeition,” where everyone collaborates to divvy the pie. They talk like that openly and believe the shared approach affords them legal protection. Quite possibly, the complainants have a point. Be fun to watch this move downstream into changing policy a year or two from now. The schools WILL react. I… Read more »

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