Proposed $248M settlement announced with multiple colleges over alleged deceptive financial aid tactics

The settlement administrator Angeion Group LLC announced a proposed settlement with several U.S. colleges and universities Friday over alleged deceptive tactics in giving out financial aid.

The preliminary proposal includes 10 schools in one case and and 17 in a second. The schools include Yale University, Johns Hopkins University and the University of Pennsylvania.

The agreed settlement would have the schools paying $284 million to plaintiffs who were enrolled full-time in an undergraduate program at an institution and received financial aid between 2003 and 2024.

The lawsuit alleged the schools conspired to make formulas for financial aid that resulted in students receiving a lower amount of support compared to if the schools didn’t conspire, constituting a violation of antitrust laws.

The schools have denied the allegations and argued the plaintiffs have no merit.

“Payments for claims will vary depending on a number of factors. Assuming that about half of the estimated 200,000 Class members submit timely claims (at a later date), and that the Court awards the attorneys’ fees and costs as requested, the average claimant will receive about $2,000 from these Settlements,” the settlement group said.

Those affected by this lawsuit will be able to file a claim to receive the money in several months after the settlement is fully approved by the court.