16 universities sued for anti-trust violations in FA determination

I haven’t read the pleadings, but it sounds like the lack of standing could easily doom this case. That said, this case arises out of the universities’ lack of transparency regarding how financial aid is awarded. From Ms. Donahue’s 2008 statement, there certainly is the appearance that the schools are working against the interests of students. We don’t know what we don’t know. It would be nice to know.

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If the 1991 consent decree is any precedent, you can be sure there will be an unintended consequence of some sort, similar to FA applicants no longer being able to apply ED anywhere with any degree of certainty that their awards would be “the best deal” compared to their RD choices. This was not a huge concern before the decree; now, it is.

The above is a column from the NY Times on this lawsuit. Apparently the section 568 is valid through September 30, and would need another extension to remain valid. So even if this lawsuit doesn’t become a big class action lawsuit, it may do enough damage to get the exemption removed.

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Unfortunately, this article is behind a paywall.

Anyone willing to summarize the article ?

See if this link works for you.

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I read it. It’s just what people have said already, a heads-up that the sec.568 extension will probably not be renewed. The reason given is mostly backlash against wealthy elite institutions in general. Let’s face it, there is no natural constituency for the Ivy League nor any other form of aristocracy in this country.

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Thank you, but the paywall still appears.

I would pay, but I have difficulty keeping track of all of my passwords as it is.

On second thought, the NYT & Wash Post & Wall Street Journal & several other newspapers (Pittsburgh & Los Angeles) are worth it.

Thank you again.

There’s a share/gift this article option and I wondered if it might work.

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I wouldn’t be sad if the schools had to set their own tuition and FA formulas. I don’t really feel bad for a kid who has to go to Dartmouth because Harvard didn’t give them the same aid, or if a student has to pick between Princeton and Vandy because one costs less. Montana doesn’t meet with NM to set tuition rates and FA formulas, so why should the elite colleges get to do that? If Harvard thinks its education is worth $150k, they should charge that even if Yale is only charging $80k.

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