University of Chicago settles financial aid lawsuit for $13.5 million

The University of Chicago has settled a class-action lawsuit alleging the school, along with a consortium of other elite universities, illegally collaborated in a price-fixing scheme to limit students’ financial aid.

The lawsuit was filed in federal court in Chicago in early 2022. It alleged that more than a dozen universities, including U. of C., violated antitrust law by participating in a “price-fixing cartel” that “artificially inflated the net price of attendance for students receiving financial aid.”

In a proposed settlement agreement filed Monday, U. of C. agreed to pay out a total of $13.5 million to settle the lawsuit.

The proposed settlement is subject to final approval by a judge.

If approved, class members will include students who received need-based financial aid from U. of C. and enrolled as undergraduates since 2003. Students or their families must have paid the university directly for tuition, fees, room or board that was not covered by financial aid or other…