Dozens of elite universities, including Harvard University, Columbia University and New York University, are suspected of colluding in a price-fixing scheme to raise tuition costs for students with divorced or separated parents, according to a federal lawsuit.
A proposed class action lawsuit filed by Boston University students and Cornell University alumni targets the nonprofit College Board, which developed the financial aid methodology allegedly used by the 40 major schools also named in the complaint. are.
According to the complaint, the College Board conspired with the school to develop a policy that considered the financial assets of non-custodial parents as a justification for denying scholarships to students.
It is alleged that by having parents fill out a CSS profile, schools were able to artificially inflate the amount families could pay, even if there was only one breadwinner in the family.
The go-to for wealthy private colleges, the CSS Profile is considered more comprehensive than the Free Application for Federal Student Aid (FAFSA), which only considers parental assets when calculating financial aid.
Lawyers for the plaintiffs accused the College Board of convincing schools to adopt the policy in 2006.
“The financial burden of college cannot be overstated in today's world, and antitrust lawyers have a significant impact on the rising cost of higher education,” said Steve Berman, managing partner and co-founder of the law firm Hagens Berman. I believe that we have made it clear that we are giving I am the plaintiff's representative.
“Those affected (mainly college applicants from divorced families) had no idea this alleged system would be implemented, and students received less financial aid than they would have received in a fair market. It remains empty.”
The lawsuit, filed Monday in Chicago, seeks more than $5 million in monetary damages and a court order halting the alleged price-fixing conspiracy.
Maxwell Hansen, one of the plaintiffs, said that even though his father was not required to fill out a CSS profile, the two schools he attended, BU and American University, did not require his father to fill out a CSS profile. If he had, he said he would have provided more financial aid. I am donating money to his education.
Another plaintiff, Eileen Chan, claimed that Cornell denied her request to not consider the assets and finances of her noncustodial parent, who is on disability income and unable to contribute to her education.
Ms. Chan claimed that as a result of Cornell University's review, her parents had to take out a Parent Plus federal loan to cover the remaining tuition, which placed a heavy financial burden on her.
“Without this agreement, the university defendants would have competed and provided financial assistance to enroll top candidates,” the complaint states.
“We are confident that we will prevail in this action,” the College Board said in a statement.
According to the College Board website, less than half of the 270 schools using CSS profiles require non-custodial parents to fill out a form.
Students may request a waiver if they are unable to contact their parents.
Cornell University, BU, Northwestern University, Harvard University, Yale University, Dartmouth College and Georgetown University either declined to comment or did not immediately respond to requests for comment.
Other defendants included the California Institute of Technology, Columbia University, New York University, Stanford University, and Duke University. They also declined to comment or did not immediately respond to requests for comment.
Universities are relying on CSS profiles because they say some families are taking advantage of the system by providing opaque information about their financial situation.
Earlier this year, Dartmouth College and 16 other colleges settled a class-action lawsuit that accused them of violating antitrust laws and conspiring to minimize financial aid to working and middle-class families. .
with post wire
