PROVIDENCE – Brown University and 39 other private colleges across the U.S. and the national education support nonprofit College Board have been accused in a federal class-action lawsuit of conspiring to increase tuition prices.
In the 52-page complaint filed in U.S. District Court in Illinois on Oct. 7, plaintiffs Maxwell Hansen and Eileen Chang, and their legal representation – Hagens Berman Sobol Shapiro LLP – claim the price-fixing strategy violates federal antitrust law and exacerbates rising student loan debt. The two former college students allege in the suit the colleges in question, including Brown, jointly engaged in requiring noncustodial parents of college applicants seeking non-federal financial aid to provide their financial information.
College Board, the plaintiffs allege, then requires schools to take this sum into consideration for financial aid allotments, regardless of the parent’s actual involvement or financial assistance. From there, and absent from the agreement, the colleges in question would vie in offering financial aid to enroll top applicants, according to the suit.
As a result, this agreement increased tuition costs by approximately $6,200 when compared to other top schools that did not take part in College Board’s agreement, the lawsuit alleges. The suit also claims that the defendants have used this pricing strategy since 2006.
The plaintiffs are seeking a permanent injunction to the alleged price-fixing practices, costs for attorneys’ fees and other relief where appropriate. Hagens Berman spokesperson Ash Klann told Providence Business News on Wednesday via email that the monetary amount being sought has yet to be determined.
However, Klann says based on the $6,200 estimate and what it could mean for all affected students, the financial damages could be “quite a lot more” than $5 million.
Other New England-based schools included in the lawsuit are Harvard University, Yale University, Boston College, Boston University and Northeastern University. Brown is the only Rhode Island-based school named in the suit.
In an email Wednesday to Providence Business News, Brown spokesperson Brian Clark said the complaint has “no merit” and the university is prepared to “mount a strong” effort in court to contest the claims.
“Brown makes all financial aid decisions, including those involving noncustodial parents, independently and in alignment with our own methodologies for determining financial need,” Clark said. “Our financial aid team gives full consideration to all requests to waive the submission of noncustodial parent financial information and works directly with students to explore solutions, recognizing that each family’s situation is distinct. If we are served with the legal complaint, we will conduct a full review and respond as appropriate through the legal process.”
The lawsuit can be read
here.
(UPDATED and added 8th and 9th paragraphs to include comment from Brown University spokesperson Brian Clark.)
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on X at @James_Bessette.