Northwestern University has dug into its coffers, forking over $43.5 million to bury a legal headache that accused the esteemed school and its cohorts of playing dirty with financial aid funds. Swept up in a class-action lawsuit that brought 17 universities to the legal spotlight, Northwestern has joined forces with Dartmouth College, Rice University, and Vanderbilt University in a collective $166 million settlement announced Friday. These settlements stem from allegations that the institutions gamed the "need-blind" admissions system—supposedly a no-peeking zone regarding an applicant's wallet.
Flouting antitrust laws, the universities are said to have colluded to fix the price tag of education through a scheme that favored deep pockets over empty ones, while the claim continues that students relying on financial help got the short end of the stick. According to a statement obtained by the Chicago Tribune, Jon Yates, a spokesperson for Northwestern, contended that the university has cleared its name of any misconduct asserting "the plaintiffs' claims are baseless," however he went on to say, agreeing to the settlement allows the university to "focus on Northwestern's global eminence, excellent teaching, innovative research, and the personal and intellectual growth of our students."
Playing the high note on financial aid funding, Northwestern maintains, despite the suit it was hit with, that it has been on the up and up. Jon Yates told The Daily, "Northwestern prioritizes funding financial aid so we can welcome the most talented students regardless of their ability to pay." Hinting at a bigger picture, Yates added that more than 60% of undergraduates received financial assistance, nearly totaling $290 million the previous academic year.
The settlements are hitting a crescendo as other high-profile academic institutions have similarly sought to close the book on this controversy, with the University of Chicago handing over $13.5 million last August and other universities, including Columbia, Yale, and Duke, doling out $118 million. All up, the Ivy League and company have coughed up north of $280 million, money that may soothe some wounds but whether it irons out the kinks in a system that critics claim has been rigged against those scrimping and saving for a seat at the hallowed halls of higher education remains to be seen.
