Students Overpaid Elite Colleges $685 Million, 'Price-Fixing' Suit Says

A filing in an antitrust lawsuit against some of the nation's top universities alleges the schools overcharged students by $685 million in a 'price-fixing' scheme, raising serious questions about their past admission and financial aid policies. From a report: Documents and testimony from officials at Georgetown University, the University of Notre Dame, the University of Pennsylvania, MIT and other elite schools suggest they appeared to favor wealthy applicants despite their stated policy of accepting students without regard for their financial circumstances. That 'need-blind' policy allowed the schools to collaborate on financial aid under federal law, but plaintiffs in the case say the colleges violated the statute by considering students' family income.

Every year, according to a motion filed in federal court Monday night, Georgetown's then-president would draw up a list of about 80 applicants based on a tracking list that often included information about their parents' wealth and past donations, but not the applicants' transcripts, teacher recommendations or personal essays. 'Please Admit,' was often written at the top of the list, the lawsuit contends -- and almost all of the applicants were. Former students accuse 17 elite schools, including most of the Ivy League, of colluding to limit the financial aid packages of working- and middle-class students. The claimed damages of $685 million, which were detailed in the court filing Monday night, would automatically triple to more than $2 billion under U.S. antitrust laws.

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