Key facts
- Payments have started for students who attended 10 elite schools involved in a financial aid settlement.
- The settlement is for $284 million, stemming from a 2022 lawsuit.
- Students accused the schools of operating a price-fixing cartel that reduced financial aid.
- The lawsuit claimed students were overcharged by at least hundreds of millions of dollars.
- Eligible recipients will receive an average of $2,000.
- The schools involved are Brown, University of Chicago, Columbia, Dartmouth, Duke, Emory, Northwestern, Vanderbilt, Rice, and Yale.
Payments have begun for students who attended 10 elite universities as part of a $284 million settlement. The distribution follows a 2022 lawsuit where students accused the institutions of operating as a "price-fixing cartel." The suit alleged that this cartel favored wealthier students, reduced financial aid packages, and ultimately overcharged recipients by at least hundreds of millions of dollars.
The schools involved, which include Brown, University of Chicago, Columbia, Dartmouth, Duke, Emory, Northwestern, Vanderbilt, Rice, and Yale, have denied any wrongdoing. They agreed to the settlement to resolve the claims.
Current and former full-time undergraduate students who received need-based financial aid and did not have their full tuition, room, and board costs covered by that aid are eligible for payments. The average payout is expected to be around $2,000. Payments are being processed via ACH, PayPal, Zelle, and Venmo, with physical checks anticipated by July 24.