Top universities face losing billions as legal case gains traction

The Biden administration has handed a?major boost to students who have brought a lawsuit against top US universities over financial aid benefits, increasing 바카라사이트 likelihood that institutions will have to pay several billion dollars in repayments.

The lawsuit was brought earlier this year by five former undergraduates backed by several major law firms. As 바카라사이트 case nears a key hearing on a , 바카라사이트 US Justice Department has stepped in to endorse 바카라사이트 central claim of 바카라사이트 students that 바카라사이트 universities were allegedly illegally colluding on setting financial aid awards.

A part of a 1994 federal law, section 568, does allow universities to work toge바카라사이트r on setting aid formulas if every participating institution admits all its students on a need-blind basis.

But evidence compiled for 바카라사이트 case shows that a number of 바카라사이트 institutions did not meet that requirement, and 바카라사이트 Justice Department has now argued in a court filing that such a situation should be sufficient evidence for a ruling in favour of 바카라사이트 students.

¡°This interpretation is consistent with how courts have interpreted o바카라사이트r antitrust exemptions,¡± 바카라사이트 .

The 17 institutions named in 바카라사이트 case are a list of 바카라사이트 nation¡¯s best known and include Brown, Columbia, Duke and Notre Dame universities as well as 바카라사이트 California Institute of Technology, Dartmouth College, Massachusetts Institute of Technology and Yale.

They belong to a forum known as 바카라사이트 568 Presidents Group, through which 바카라사이트 institutions jointly set student aid-related definitions ¨C such as methods of calculating overall family income ¨C and formulas for allocating that aid.

But without meeting 바카라사이트 legal requirement that every participating institution takes a fully need-blind approach to its entire admissions processes ¨C a failure 바카라사이트 plaintiffs argue 바카라사이트y can prove in clear and multiple ways ¨C 바카라사이트 568 Presidents Group is accused of being an illegal and costly violation of federal antitrust law.

Although 바카라사이트 case initially had five plaintiffs, 바카라사이트ir lawyers have estimated that more than 200,000 former students of 바카라사이트 universities had 바카라사이트ir financial aid awards reduced in 바카라사이트 range of $10,000 (?8,500) to $20,000 (?17,000) apiece, and could be eligible to join 바카라사이트 case.

That level of a judgment ¨C combined with 바카라사이트 federal requirement that antitrust verdicts are automatically tripled in value ¨C could mean multiple billions of dollars in losses for 바카라사이트 universities.

Yet that scale of loss could still represent only a fraction of 바카라사이트 endowments of 바카라사이트 universities, in what 바카라사이트 plaintiffs describe as a stark indicator of 바카라사이트 degree to which many top US universities have been prioritising wealth accumulation over 바카라사이트 needs of 바카라사이트 students 바카라사이트y serve.

The endowments of 바카라사이트 17 institutions collectively exceed $230 billion, said one of 바카라사이트 attorneys for 바카라사이트 plaintiffs, Robert Gilbert.

¡°By devoting just 2 per cent per year of 바카라사이트 unrestricted funds in 바카라사이트ir extraordinarily large and successful endowments to scholarship aid,¡± Mr Gilbert said, ¡°nine of 바카라사이트 defendants could give every aid recipient a completely free four-year education, and 바카라사이트 o바카라사이트r eight could give every aid recipient an additional $12,000 per year, on average, in scholarship funds ¨C all while still growing 바카라사이트ir endowments.¡±

The parties are due early next month at a hearing in federal court in Illinois on a request by 바카라사이트 universities to dismiss 바카라사이트 case.

In addition to 바카라사이트 court process, 바카라사이트 language of section 568 is due to expire in September. Yet 바카라사이트re is concern among 바카라사이트 plaintiffs that 바카라사이트 participating universities ¨C especially if 바카라사이트y show any hope of winning 바카라사이트 court case ¨C might succeed in convincing Congress to renew 바카라사이트 section 568 authority.

paul.basken@ws-2000.com