How to Claim From the $284 Million Financial Aid Settlement
Eligible students can claim up to $2,000 from a $284M college financial aid settlement.
Financial Aid Recipients From These Colleges Can Now Claim Part of $284 Million Settlement
Financial aid recipients who attended 10 U.S. colleges can now submit claims for a portion of a $284 million settlement payout resulting from a class action lawsuit over alleged price fixing in the financial aid process. The lawsuit centers on allegations that elite universities violated federal antitrust laws by collaborating on financial aid policies, ultimately providing less need-based financial aid to students than they would have in a competitive market.
The plaintiffs alleged in a January 2022 complaint that these colleges “violated federal antitrust laws by agreeing regarding principles, formulas, and methods of determining financial aid” and “provided less need-based financial aid than they would have provided had there been full and fair competition.” A total of 17 universities are defendants in the litigation, though 10 have already reached final settlements. Students from the remaining seven schools can also submit claims, though the amounts their universities may agree to pay have not yet been finalized.
Understanding the ‘568 Presidents Group’ and the Allegations
The defendant universities were primarily members of an association called the 568 Presidents Group, which was founded in 1998. Several years later, the group created a standardized methodology for assessing an applicant’s ability to pay, which was subsequently used to determine financial aid packages. The group was dissolved in 2022, after the lawsuit was filed. According to the lawsuit, these “elite” colleges—characterized by their need-blind admissions policies—were effectively eliminating competition on financial aid offers through their collaboration.
The 568 Presidents Group described its aims benevolently, stating that the goal was to “reduce much of the variance in need analysis results.” However, the antitrust lawsuit alleges that this collaboration actually limited competition and drove down aid packages, thereby increasing the net price of attendance for aid-eligible students. It’s important to note that all defendant universities continue to deny the allegations of wrongdoing, and accepting the settlement is not an admission of guilt.
How Much Is the Settlement?
The claims administrator estimated that the average claimant could receive approximately $2,000, based on the assumption that about half of the estimated 200,000 eligible people submit valid claims by the deadline. However, individual payouts will vary depending on specific factors related to each claimant’s circumstances.
The settlement payments will depend on two primary factors: the average net price of tuition, room, and board at the college the claimant attended, and the duration of their attendance at that institution. Importantly, the size of your particular alma mater’s settlement is not a factor—all payments will come from one combined settlement fund managed by the settlement administrator.
Who Is Eligible to Claim Money From This Settlement?
There are several specific criteria you must satisfy to receive a settlement payment. Understanding these requirements is crucial before submitting your claim form.
Eligibility Requirements
According to the official settlement website, eligible recipients must meet all of the following conditions:
- Be a citizen or permanent resident of the United States
- Have been a full-time undergraduate student during the designated “class period”
- Have received need-based financial aid from one of the defendant universities
- Have attended one of the 17 defendant institutions
- Not have had tuition and room and board fully covered by financial aid or merit aid
Class Period Dates
For most of the 17 defendant colleges, financial aid recipients may be eligible to submit a claim if they were enrolled at some point between fall 2003 and February 2024. However, the “class period” is shorter for certain institutions. Specifically, Brown University, Dartmouth College, Emory University, California Institute of Technology (Caltech), and Johns Hopkins University have different date ranges. Students from these schools should verify the specific class period applicable to their institution on the official settlement website before submitting their claim.
Who Is NOT Eligible
You are not eligible for a settlement payment if your entire tuition and room and board expenses were fully covered by financial aid or merit aid during your enrollment. Additionally, those who did not receive need-based financial aid from one of the defendant universities are ineligible for compensation.
How to Claim the Financial Aid Settlement
The process for submitting your claim is straightforward and can be completed entirely online. Follow these detailed steps to ensure your claim is processed correctly.
Step-by-Step Claim Submission Process
The simplest way to submit a claim for the settlement is to complete the form on the official settlement website. If you received a personalized notice about the settlement via email, follow these instructions:
- Locate your notice ID and confirmation code from the personalized email notification you received
- Visit the official settlement claim website
- Enter your notice ID and confirmation code on the initial claim form page
- Proceed to the next page and provide personal information including your full name and current address
- Specify which defendant college you attended
- Enter your financial aid details from your time as a student
- Upload proof of attendance such as a transcript, diploma, student ID, or other official documentation
- Select your preferred payment method from the available options
Alternative Submission Method
If you did not receive a personalized notice about the settlement, there is still an option to submit a claim form online. You can access the claim form directly through the settlement website and provide the necessary information without a notice ID or confirmation code. This alternative pathway ensures that all eligible recipients have an opportunity to file their claims, even if they were not contacted directly by the settlement administrator.
Payment Options and Methods
When submitting your claim, you will need to select how you would like to receive your settlement payment. The settlement administrator offers multiple convenient payment options to accommodate different preferences:
- Venmo
- Zelle
- PayPal
- Mastercard
- Direct deposit to your bank account
Choose the payment method that works best for you. Direct deposit is typically the fastest and most secure option, as it transfers funds directly to your bank account without any intermediary services.
Important Deadlines and Submission Timeline
Meeting submission deadlines is critical for receiving your settlement payment. The deadline to submit your claim form is December 17, 2024. After this date, the settlement administrator will compile a report for the court, and settlement payments will be issued to eligible class members once this report receives court approval.
Do not miss this deadline, as late submissions are generally not accepted in class action settlements. If you believe you may be eligible, it is in your best interest to submit your claim well before the final deadline to avoid any last-minute technical issues or complications.
About the Defendant Universities
The 10 universities that have reached final settlements include several of the most prestigious institutions in the United States. These universities have collectively agreed to pay $284 million as part of the settlement. Additionally, two more universities—Caltech and Johns Hopkins—have agreed to provide a combined $35.25 million in cash as part of recent final approvals, bringing the total settlement amount even higher.
Legitimacy and Official Resources
The financial aid antitrust settlement is legitimate, and FinancialAidAntitrustSettlement.com has been established as the official, court-approved website for the settlement. This website is managed by Angeion Group LLC, the court-appointed settlement administrator. For questions or additional information about your eligibility or the claims process, you can contact the settlement administrator by calling the toll-free number 1-833-585-3338 or by emailing through the official settlement website.
Frequently Asked Questions
Q: What was the original lawsuit about?
A: The lawsuit alleged that 17 elite universities violated federal antitrust laws by collaborating through the 568 Presidents Group to standardize financial aid methodologies, which effectively reduced competition on financial aid and resulted in students receiving less aid than they would have in a competitive market.
Q: Do the universities admit wrongdoing by settling?
A: No. All defendant universities continue to deny the allegations of wrongdoing. Settlement does not constitute an admission of guilt and should not be interpreted as such.
Q: Can I claim if I attended more than one defendant university?
A: Yes. All settlement class members may recover from any of the settlements regardless of which defendant university they attended. Your specific alma mater’s settlement amount is not a factor—all payments come from one combined settlement fund.
Q: What if my school hasn’t settled yet?
A: Students from the seven universities that have not yet finalized settlements can still submit claims along with everyone else. The amounts their universities may agree to pay have not yet been determined, but you should still file your claim to preserve your eligibility.
Q: How do I know if I’m eligible?
A: You must be a U.S. citizen or permanent resident who was a full-time undergraduate student during the class period, received need-based financial aid from a defendant university, and did not have your entire tuition and room and board covered by financial aid or merit aid.
Q: What happens if I miss the December 17 deadline?
A: If you miss the December 17, 2024 deadline, you will likely not be eligible to receive a settlement payment. The settlement administrator will submit a report to the court after the deadline, and payments will be distributed thereafter. Late claims are generally not accepted in class action settlements.
Q: When will I receive my payment?
A: Payments will be issued to eligible class members once the settlement administrator’s report is approved by the court following the claims deadline. The exact timeline depends on court processing, but typically payments are distributed within several months after the deadline.
Q: Do I need to hire a lawyer to submit my claim?
A: No. You can submit your claim directly through the settlement website without legal representation. The process is straightforward and does not require attorney assistance.
References
- Financial Aid Recipients From These Colleges Can Now Claim Part of $284 Million Settlement — Money Magazine. 2024. https://money.com/how-to-claim-financial-aid-settlement-2024/
- Financial Aid Recipients From These Colleges Can Now Claim Part of $284 Million Settlement — NASDAQ. 2024. https://www.nasdaq.com/articles/financial-aid-recipients-these-colleges-can-now-claim-part-284-million-settlement
- $284M University Financial Aid Class Action Settlement — Top Class Actions. 2024. https://topclassactions.com/lawsuit-settlements/open-lawsuit-settlements/284m-university-financial-aid-class-action-settlement/
- Financial Aid Antitrust Settlement – Payout Date, Claim Form — ClassAction.org. 2024. https://www.classaction.org/settlements/financial-aid-antitrust
- Settlement Administrator Angeion Group Announces Final Approval of Settlements with California Institute of Technology and Johns Hopkins University — PR Newswire. 2024. https://www.prnewswire.com/news-releases/settlement-administrator-angeion-group-announces-final-approval-of-settlements-with-california-institute-of-technology-and-the-johns-hopkins-university-in-henry-et-al-v-brown-university-et-al-class-action-302553193.html
- Financial Aid Antitrust Settlement: Home — Official Settlement Administrator. 2024. https://www.financialaidantitrustsettlement.com/
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