Vanderbilt University Agrees to Settle Lawsuit Over Financial Aid Conspiracies

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Vanderbilt University, a prestigious institution in Nashville, is set to settle a lawsuit that accused it and several other prominent U.S. schools of conspiring to restrict financial aid to students. This settlement marks the second agreement in a case seeking billions of dollars in damages.

Settlement Agreement in Principle

Attorneys representing Vanderbilt have confirmed that they have agreed in principle to settle the lawsuit. The settlement details remain undisclosed and will be subject to court approval once finalized.

  

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Commitment to Access and Affordability

In response to the settlement, a Vanderbilt spokesperson said, “We are proud of our institutional commitment to access and affordability for students and their families.”

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Plaintiffs Anticipate Finalizing Settlement Documents

The lawyers representing the plaintiffs leading the case have expressed their anticipation to finalize the settlement documents and present them for approval by the court.

The Case Background

Vanderbilt was one of 17 prestigious educational institutions sued last year in a prospective class action lawsuit. This lawsuit alleged that hundreds of thousands of students had overpaid for college tuition due to a conspiracy to reduce the amount of financial aid awarded. It’s important to note that all the accused schools have consistently denied wrongdoing.

Prominent Defendants

Other defendants in the lawsuit included Brown University, Yale University, Dartmouth College, Duke University, and the Massachusetts Institute of Technology (MIT). U.S. District Judge Matthew Kennelly in Chicago had previously ruled against dismissing the case.

University of Chicago’s Precedent Settlement

The University of Chicago was the first school involved in the case to settle. While not admitting any wrongdoing, the University agreed to pay $13.5 million and to cooperate with the plaintiffs in their efforts to collect documents and evidence.

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Plaintiffs’ Argument

During the upcoming trial, the plaintiffs intend to argue that the accused schools were not “need-blind” and that they considered a prospective student’s financial background as part of the admission process.

Allegations Against Vanderbilt

In a filing on October 31, the plaintiffs’ lawyers alleged that “Vanderbilt was eager to admit the children of its wealthiest donors, even if some were not up to Vanderbilt’s exacting standards.” Attorneys for Vanderbilt countered these claims, stating that the plaintiffs were seeking admissions data by student name merely to present names before a jury rather than as essential evidence to prove their claims.

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