When I applied to college, I only had enough application money for two schools. I got into both, despite my checkered academic past and unimpressive socioeconomic status. I was stoked. Like so many, I thought that going to a “good” school meant I would be guaranteed success for life. No one told me — especially not the financial aid advisors at Columbia University — that I was actually just being guaranteed debt for life. Now 16 top U.S. schools, including my own alma mater, are being sued for allegedly colluding to limit financial aid.
The lawsuit, which was filed yesterday in Illinois federal court, alleges that the way the universities work together to determine financial awards constitutes an antitrust violation. See, schools are only allowed to collaborate on deciding tuition structure and financial aid if they use a “need-blind” admissions process, but the lawsuit alleges that some of these 16 schools do actually take students' ability to pay into consideration in certain circumstances. If that’s the case, the way that these schools are working together amounts to price fixing.
