Congress Probes Ivy League for Alleged Tuition Collusion, Discriminatory Aid Practices

April 14, 2025
Congress Probes Ivy League for Alleged Tuition Collusion, Discriminatory Aid Practices
  • Signed by several Republican leaders, including Rep. Jim Jordan and Sen. Charles Grassley, the inquiry aims to uncover potential violations of U.S. antitrust laws related to these practices.

  • Historically, the Department of Justice investigated Ivy League schools in 1991 for using a standardized pricing formula, which led to an agreement to stop sharing financial aid information and collaborating on tuition increases.

  • This antitrust exemption, which allowed universities to collaborate on pricing without considering financial need, expired in 2022, intensifying scrutiny on their practices.

  • Penn is currently facing a lawsuit that alleges it is part of a 'price-fixing cartel' that discriminates against lower-income applicants while falsely advertising as need-blind.

  • The scrutiny on Penn has been compounded by significant criticism following pro-Palestinian protests, leading to the resignation of its former president, Liz Magill.

  • The investigation is further linked to the recent suspension of federal grants, including $4 million in funding for climate research at Princeton, which affects all Ivy League schools.

  • The congressional letter expresses worries that Ivy League schools may have continued colluding in violation of antitrust laws, especially following the expiration of their antitrust exemption.

  • Princeton's spokesperson confirmed receipt of the inquiry and stated that the university intends to cooperate with the investigation.

  • This congressional inquiry underscores ongoing issues of affordability in elite higher education, particularly as the Ivy League faces increased pressure to demonstrate transparency in its financial aid and tuition-setting practices.

  • The investigation has raised concerns over anticompetitive practices, particularly the collective tuition increases and selective financial aid packages employed by Ivy League institutions.

  • On April 10, 2025, Congressional Republicans launched an investigation into the University of Pennsylvania and other Ivy League schools, alleging collusion in raising tuition prices and discriminatory financial aid practices.

  • The documents requested by Congress could reveal the extent of coordination among Ivy League institutions in their tuition pricing strategies.

Summary based on 4 sources


Get a daily email with more US News stories

More Stories