Lawsuit Accuses Colleges of Price Fixing

A federal class-action lawsuit has been filed against 40 elite colleges, including Harvard and Columbia, accusing them of colluding to inflate tuition costs for students with divorced or separated parents. The plaintiffs, a Boston University student and a Cornell alum, allege that since 2006, these institutions have utilized the College Board's CSS Profile to consider the income of noncustodial parents, resulting in higher financial aid burdens for students. This practice reportedly increases tuition costs by an average of $6,200 compared to schools that do not factor in noncustodial parent finances. The lawsuit seeks over $5 million in damages and aims to halt what the plaintiffs describe as an anticompetitive scheme. The College Board has stated it is reviewing the legal action but is confident in its position. The lawsuit highlights the financial strain on students from divorced homes and claims a lack of transparency in how financial aid offers are generated.