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erienewsnow.com 11 Jan, 2022 07:00 am

16 Top colleges sued for alleged violation of federal antitrust laws by colluding on their financial-aid practices - Erie News Now

16 Top colleges sued for alleged violation of federal antitrust laws by colluding on their financial-aid practices - Erie News Now
By Raja Razek, CNN

By Raja Razek, CNN Sixteen top US universities, including Duke, Vanderbilt and Northwestern, are being sued by five former students claiming those schools may be involved in antitrust violations in the way those institutions worked together in determining financial aid awards for students, according to the lawsuit filed in a US District Court in Illinois.The complaint, which was filed Sunday, alleges that these private national universities have "participated in a price-fixing cartel that is designed to reduce or eliminate financial aid as a locus of competition, and that in fact has artificially inflated the net price of attendance for students receiving financial aid.The suit centers around the application of Section 568 of the Improving America's Schools Act of 1994, which allows institutions to collaborate on financial aid formulas if they don't consider the student's financial need in admission decisions.The lawsuit alleges nine schools (Columbia, Dartmouth, Duke, Georgetown, the Massachusetts Institute of Technology, Northwestern, Notre Dame, the University of Pennsylvania and Vanderbilt) have "made admissions decisions with regard to the financial circumstances of students and their families, " thereby disfavoring students who need financial aid.

" "All Defendants, in turn, have conspired to reduce the amount of financial aid they provide to admitted students," the complaint read.Yale University told CNN in an email that "Yale's financial aid policy is 100% compliant with all applicable laws.

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