Dartmouth College, Rice University, Northwestern University, and Vanderbilt University have collectively agreed to pay $166 million to settle a class-action lawsuit alleging collusion to restrict financial aid for admitted students.
The lawsuit, initiated by eight former students in 2022, accused 17 elite universities, including most Ivy League members, of employing a shared methodology to assess financial need, resulting in diminished aid for students from working- and middle-class families.
While the accused schools have denied the claims, many have opted to settle to resolve the matter.
With this latest round of settlements, including those from Columbia and Yale among others, totaling $284 million, proceeds will provide compensation to all affected undergraduate students, regardless of their attendance at settled institutions.
Freedman Normand Friedland, along with Berger Montague and Gilbert Litigators & Counselors, representing the former students, anticipate increased compensation for class members.
Dartmouth and Rice will each pay $33.8 million, while Vanderbilt and Northwestern will pay $55 million and $43.5 million, respectively, pending judicial approval.
