Lawsuit Alleges 32 Elite Universities Colluded to Inflate Tuition Through Early Decision Process

A proposed class-action lawsuit filed in federal court in Boston alleges that 32 elite universities, including Columbia University, Duke University, and the University of Pennsylvania, conspired to inflate tuition fees and limit student choice through the binding “early decision” admissions process. The suit, filed on Friday, claims that these institutions violated U.S. antitrust law by agreeing not to compete for students accepted through early decision, thereby maintaining artificially high tuition costs.

According to the complaint, the early decision process, which requires students to commit to a single institution if accepted, is a mechanism used by these universities to secure enrollment from less price-sensitive applicants. Plaintiffs argue that this system benefits wealthier families who can afford to commit without first comparing financial aid offers. The lawsuit further alleges that the universities entered into agreements not to recruit or offer better financial packages to one another’s early decision admits, a practice that the plaintiffs’ attorney, Benjamin Brown, described as a “textbook antitrust violation.”

The lawsuit names 32 institutions as defendants, along with the Consortium on Financing Higher Education (COFHE) and two college application platforms, Common Application Inc. and Scoir Inc. The plaintiffs, who include former students of Wesleyan University, are seeking damages for tuition overcharges and an injunction to end the use of binding early decision practices altogether. The case marks another legal challenge to the U.S. college admissions system, following the Supreme Court’s decision to dismantle race-conscious admissions policies in 2023.

Several of the named universities have not yet commented on the lawsuit, while others, like Brown University, have stated that they plan to “mount a strong defense” and that the complaint has no merit. The outcome of the case could have significant implications, potentially forcing a major shift in how elite universities manage their admissions and financial aid processes.

Leave a Reply

Your email address will not be published. Required fields are marked *