Elite colleges accused of price-fixing to make divorced parents pay more

[mahatmakanejeeves]

Source: Washington Post

HIGHER EDUCATION
Elite colleges accused of price-fixing to make divorced parents pay more
Forty colleges are accused of conspiring with the College Board over a span of 18 years


Cornell University viewed from McGraw Tower. (kickstand/iStock)

By Danielle Douglas-Gabriel
October 9, 2024 at 6:41 p.m. EDT

Forty of the country’s top colleges were sued this week and accused of colluding in a price-fixing scheme that has increased the cost of college for students with divorced or separated parents.

A Cornell University alum and Boston University student filed the federal lawsuit Monday that takes aim at the CSS Profile, a form some schools use to determine a student’s financial need. The complaint alleges that the nonprofit College Board, which administers the form, conspired with schools named in the complaint to develop a policy in 2006 to consider the assets of noncustodial parents in its calculation. The point was to deny students institutional scholarships, the lawsuit alleges.

By requiring both parents to fill out the CSS Profile, colleges could provide an artificially high estimate of what the family could afford to pay, even if only one parent provides financial support for the student, according to the complaint. Attorneys say the College Board pushed schools to adopt the policy, arguing that institutions should have a consistent approach.

The lawsuit, filed in a federal court in Illinois, estimates that nationwide at least 20,000 prospective class members have been harmed by the practice over the past 18 years. Attorneys are seeking class-action status.

{snip}

By Danielle Douglas-Gabriel
Danielle Douglas-Gabriel covers the economics of higher education, writing about the financial policies that determine a student's access to education and ability to complete a credential. follow on X @DaniDougPost

Read more: https://www.washingtonpost.com/education/2024/10/09/colleges-price-fixing-lawsuit-financial-aid-divorced-parents/

[bucolic_frolic]

1. Every time they got you over a barrel they sock it to you

Doesn't matter the industry

[chowder66]

2. If they are doing this, what else are the doing?

[pnwmom]

11. It seems reasonable to me to include both parents' income,

even if the child is only living with one of them.

Suppose the child lived with the mother, who made $50K a year. She was divorced from the father, who made $200K. But, according to this lawsuit, the college should award the same aid amount as they would to a child whose total family income was only $50K. That doesn't seem fair to me. (Unless the father was permanently estranged from the child, in which case the college would have to make a determination on an individual basis.)

There's a fixed amount of money in every college's financial aid pot, so the more that goes to some kids, the less there is for others.
The method preferred in this lawsuit actually would provide a financial incentive for getting divorced.

[Hekate]

3. Jesus, that is nasty

[pnwmom]

9. OTOH, what if Donald Trump was the divorced father

living separately from his college-bound child.

Don't you think his income should be taken into consideration in the financial aid calculations?

This "price fixing" lawsuit says it shouldn't, but that doesn't make sense to me.

[Hekate]

10. On consideration, none of it makes sense to me. Sorry...

Just deleted a long screed — as I say, on consideration I don’t know what the hell those guys think they are doing.

[pnwmom]

4. What is the justification for a wealthy parent who is not the primary custodial parent

to not have their income included in the formula?

In most families, the children end up with the mother, and the father is the one with the higher income.

So it doesn't seem fair not to consider his income at all, simply because a child lives with the mother.

[Prairie Gates]

6. I'd like to know as well

Good question.

[Prairie Gates]

5. So married parents should both be required to provide support for their children

while divorced parents should not?

[marybourg]

7. This has been going on a lot longer than 18 years, to my knowledge.

More like 40 years, although the names of the forms may be different. And I think it’s s appropriate to assess the means of both parents before making a decision that fits the circumstances.

[pnwmom]

8. I agree. It shouldn't be possible for a wealthy parent to avoid the responsibility

because the parents have divorced.

That leaves less financial aid available for students who really need it, including many in two parent homes.

[wolfie001]

12. Probably to build new stadiums and attract expensive white coaches

Just like that pig senator from bama tooberville