Congressional Republicans are investigating the financial practices of all eight Ivy League universities, including Princeton. They accuse these prestigious institutions of raising tuition costs together, which may violate U.S. antitrust laws. This inquiry is part of a larger examination of higher education by the federal government regarding financial aid policies.
In a letter to Princeton’s president, Christopher Eisgruber, lawmakers expressed concern about "price discrimination" that could maximize profits at the expense of students. They’re asking the university for detailed documents about its admissions processes, financial aid, and communications with application assistance platforms like the College Board and the Common Application. Princeton has until next week to respond.
This isn’t the first time Ivy League schools have faced scrutiny. Back in 1991, the Department of Justice looked into allegations of price-fixing among Ivy League schools. The universities agreed to stop sharing financial aid information to encourage competition. This resulted in the Improving Schools Act of 1994, which allowed universities to coordinate on pricing but not factor in students’ financial needs during admissions. That exception ended in 2022.
Interestingly, Princeton was not part of a 2024 class-action lawsuit that included 40 other universities. This lawsuit accused those schools of unfairly limiting financial aid for students with divorced or noncustodial parents.
The current investigation raises concerns that IVY League institutions may still be working together to set prices, now that they no longer have an antitrust exemption. The committee’s letter outlines various avenues for suspected collusion, such as meetings among president, the College Board’s role, and statistics mismanagement by U.S. News and World Report.
This investigation is timely, coming as federal grants, including $4 million for climate research, are paused. Other prominent Ivy League schools, like Harvard and Columbia, received similar inquiries.
The landscape of higher education funding is shifting. As costs rise and federal scrutiny increases, students and families are watching closely. The outcome of this investigation may impact not just those eight schools but the entire higher ed system.
For more detailed information about the ongoing investigation and its implications, you can check the latest reports on platforms like The New York Times or The Daily Princetonian.
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