A lawsuit accuses top colleges of colluding to limit competition and raise costs.
A new lawsuit filed in Massachusetts accuses 32 top colleges and universities of working together to hike tuition fees by using the early decision admissions process. Four current and former students brought the case, arguing that these schools have made a deal to reduce competition for students through early decision, making college more expensive and less accessible.
The complaint lists well-known schools such as Amherst, Brown, Columbia, Duke, Johns Hopkins, Northwestern, University of Chicago, University of Pennsylvania, Vanderbilt, and many others. Along with these colleges, the lawsuit names the Consortium on Financing Higher Education, a group of selective schools sharing admissions and financial aid data, and two popular college application platforms, the Common Application and Scoir.
Early decision is an admissions option where students apply early to their preferred school and get a decision ahead of the regular schedule. If accepted, students agree to enroll and accept the financial aid offered, giving up the chance to apply to other schools. Although not legally binding, early decision is seen as a strong commitment. This process usually means a higher chance of acceptance compared to regular admission, but students lose the chance to compare financial aid offers from different schools.
The plaintiffs say this system hurts students who need to compare costs before making a choice. Wealthy students, they say, are less affected because they have more resources and can afford to make decisions without needing to compare financial aid. This creates inequality and makes college less affordable for those who need to shop around for the best deal.
The lawsuit calls the early decision system a clear violation of antitrust laws, accusing the schools of agreeing not to compete for early decision students, which reduces competition. The students argue that while early decision looks like a contract, it isn’t legally enforceable but relies on ethical expectations. Schools, however, benefit from this arrangement because they can still withdraw offers if students’ grades drop or they break rules.
The complaint also claims that early decision helps schools raise tuition costs. When schools don’t have to compete for students who apply early, they have less reason to lower prices or offer better financial aid. This leads to higher tuition for all students, both those admitted early and those admitted later.
This debate over early decision has been around for some time. Colleges gain by increasing the number of students who commit early, improving their admission rates and financial stability. Schools also secure students before more selective schools can make offers. But early decision can hurt lower-income students. They might not know about early decision or have the chance to visit multiple schools before deciding. Plus, they may not be able to commit without comparing financial aid offers to see which school they can afford.
Many elite colleges know early decision favors wealthier applicants. Some have programs like QuestBridge, which try to reduce this unfairness by helping low-income students. But critics say early decision still limits choice and pushes acceptance chances down for regular decision applicants.
Benjamin Brown, a lawyer representing the students, says early decision forces students to lose negotiation power and reduces the number of spots available through regular admission. He says this only happens because schools agree not to compete, which breaks basic antitrust laws.
Most schools named in the lawsuit have not responded yet. Brown University did respond, saying the complaint is without merit and that it makes admissions and financial aid decisions independently, focusing on access for all students.
This lawsuit is the second big antitrust case targeting elite college admissions in recent years. In 2022, a similar lawsuit accused 17 top colleges of working together to raise financial aid costs. Those schools denied wrongdoing but settled the case for over $300 million.
The outcome of this new lawsuit could affect how colleges run admissions and how much tuition students pay to attend. It also raises questions about fairness in college access and how schools use admissions policies to manage their finances.
Sources:
Lawsuit Filed Against 32 Elite Colleges Over Early Decision Admissions
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