Elite colleges accused of price-fixing to make divorced parents pay more [View all]

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Source: Washington Post

HIGHER EDUCATION
Elite colleges accused of price-fixing to make divorced parents pay more
Forty colleges are accused of conspiring with the College Board over a span of 18 years


Cornell University viewed from McGraw Tower. (kickstand/iStock)

By Danielle Douglas-Gabriel
October 9, 2024 at 6:41 p.m. EDT

Forty of the country’s top colleges were sued this week and accused of colluding in a price-fixing scheme that has increased the cost of college for students with divorced or separated parents.

A Cornell University alum and Boston University student filed the federal lawsuit Monday that takes aim at the CSS Profile, a form some schools use to determine a student’s financial need. The complaint alleges that the nonprofit College Board, which administers the form, conspired with schools named in the complaint to develop a policy in 2006 to consider the assets of noncustodial parents in its calculation. The point was to deny students institutional scholarships, the lawsuit alleges.

By requiring both parents to fill out the CSS Profile, colleges could provide an artificially high estimate of what the family could afford to pay, even if only one parent provides financial support for the student, according to the complaint. Attorneys say the College Board pushed schools to adopt the policy, arguing that institutions should have a consistent approach.

The lawsuit, filed in a federal court in Illinois, estimates that nationwide at least 20,000 prospective class members have been harmed by the practice over the past 18 years. Attorneys are seeking class-action status.

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By Danielle Douglas-Gabriel
Danielle Douglas-Gabriel covers the economics of higher education, writing about the financial policies that determine a student's access to education and ability to complete a credential. follow on X @DaniDougPost

Read more: https://www.washingtonpost.com/education/2024/10/09/colleges-price-fixing-lawsuit-financial-aid-divorced-parents/