Boston/ Crime & Emergencies
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Published on October 09, 2024
Boston University and 7 More MA Colleges Among 40 Accused of Rigging Tuition CostsSource: Google Street View

An unprecedented class-action lawsuit has thrust 40 of the nation’s elite private colleges, including eight from Massachusetts, into the spotlight over allegations of colluding to inflate the cost of higher education. The plaintiffs, a Boston University student and a Cornell University alum, have accused these institutions of engaging in a practice that may have illegally driven up tuition prices by considering the financial information of noncustodial parents when awarding financial aid, as reported by Boston 25 News. This action, starting from a 2006 initiative by the College Board, allegedly required schools to collectively agree to take into account the income and assets of noncustodial parents.

The details, brought forth in the lawsuit filed in the U.S. District Court for the Northern District of Illinois, suggest that this concerted effort has been to unlawfully increase the net price of education. The plaintiffs argue that such practices have left students and families to shoulder on average around $6,200 more compared to those attending institutions that do not factor in noncustodial parent finances, as noted by WCVB. The legal action seeks over $5 million in monetary damages and a court injunction to stop what it describes as an anticompetitive practice.

Local Massachusetts schools named in this sweeping accusation include Boston College, Boston University, Brandeis University, Harvard University, Massachusetts Institute of Technology, Northeastern University, Tufts University, and Worcester Polytechnic Institute. The suit extends well beyond the Bay State, implicating a roster of prestigious names like Yale University, Stanford University, and the University of Pennsylvania. These institutions, along with the College Board — known for assisting millions in the transition from high school to college — find themselves at the center of a contentious legal battle.

Describing the magnitude of the issue, Steve Berman, managing partner and cofounder of Hagens Berman, is quoted saying, "The financial burden of college cannot be overstated in today’s world, and we believe our antitrust attorneys have uncovered a major influence on the rising cost of higher education." He adds that students from divorced homes, the group primarily affected by this alleged scheme, "could never have foreseen that this alleged scheme was in place, and students are left receiving less financial aid than they would in a fair market," as stated by WCVB. This lawsuit sheds light on the complexity of financial aid practices and the potential impacts on students' lives across the nation.