A growing admissions scandal has rocked some of America’s most prestigious universities. From Yale University to Johns Hopkins, 12 schools have agreed to pay millions of dollars in settlements over allegations that they favored wealthy applicants in admissions and financial aid decisions. These universities, which are part of the 568 Presidents Group—a coalition of private colleges—have been accused of colluding to manipulate financial aid packages and admissions criteria, allegedly favoring students from wealthy families.
Wealth Over Merit: Violating US Antitrust Laws
The 568 Presidents Group was formed to create a standardized system for calculating need-based financial aid among private colleges. The group’s intention was to make the process more equitable by using a uniform formula. However, local media reports suggest that a legal complaint was filed in 2022 against the group’s 17 member universities alleging that they exploited this framework to favor affluent families. The lawsuit, representing around 200,000 students, claims that these schools adjusted financial aid packages based on factors like family wealth, past donations, or potential future contributions, undermining the fairness of the admissions process. The lawsuit points to potential violations of US antitrust laws, which are designed to prevent businesses from engaging in unfair practices that harm competition. The plaintiffs argued that the schools’ actions artificially reduced competition by creating an unfair advantage for wealthier families.
The Universities and Settlement Amounts
As part of the ongoing legal battle, 12 of the 17 universities involved have agreed to pay millions in settlements, though they deny any wrongdoing. The settlement funds will be distributed among affected students, compensating them for potential overcharges and unfair treatment. The total settlements, which could eventually reach $320 million if all universities involved settle, aim to resolve the dispute and avoid prolonged litigation. However, five universities —University of Pennsylvania, Cornell University, Georgetown University, Massachusetts Institute of Technology, and University of Notre Dame—remain under antitrust scrutiny. Here is a look at the settlement amount of each of the universities that have paid so far.
What Next?
The 5 universities that remain under antitrust scrutiny could face additional lawsuits if they do not settle, potentially adding to the total payout. While the accused universities deny any intent to break the law, they have chosen to settle to avoid the costs of lengthy litigation. The scandal has sparked a broader conversation about the fairness and transparency of the college admissions process in the US.
