Yale and more than a dozen top universities in the country are facing a federal lawsuit over allegations that they violated antitrust laws by sharing a formula to calculate financial need that provides limited aid to favor admissions for wealthy applicants. was violated.
The lawsuit was filed late Sunday on behalf of five former students who attended the three schools named in the proposed class-action lawsuit.
Universities reportedly participated in pricing using a shared method To determine the financial need of students, the suit argues limited aid by stifling competition to offer more generous aid packages.
Under an antitrust exemption for schools, universities are allowed to work together on determining aid formulas, as long as students are admitted on a need-blind basis, according to the filing.
However, the suit alleges that at least nine schools considered the ability of potential students to pay tuition in some admissions and waiting list decisions, which is prohibitive for universities to claim antitrust waivers.
The lawsuit seeks unspecified damages and for universities to stop working together to determine financial need.
up above 170,000 students Those who attended schools using financial aid in the past 18 years may be eligible to appear in the lawsuit as plaintiffs, the attorneys pointed out. wall street journal,