A PYMNTS Company

Elite US Universities Accused of Colluding to Inflate Tuition Through Early Decision Programs

By  |  August 10, 2025
Transact Campus Debuts Portal for Bulk Tuition Payments

A group of former students has filed a federal lawsuit accusing 32 prestigious U.S. colleges and universities of colluding to keep tuition prices high through the widely used “early decision” admissions process, according to Reuters. The complaint, lodged in Boston on Friday, names Columbia University, Duke University, the University of Pennsylvania, and 29 other institutions as defendants.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The suit, brought by alumni of Wesleyan University and two other schools, alleges that the early decision system — which requires applicants to commit to attending if admitted — is being used to justify higher tuition charges for both early and regular decision students. Early decision applicants typically face earlier deadlines but are believed to have better odds of acceptance. However, per Reuters, the plaintiffs argue that by committing early, students forfeit the opportunity to compare financial aid offers, leaving them with reduced bargaining power.

    According to the complaint, the schools are violating federal antitrust laws by agreeing not to compete for early decision applicants and by misleading students into believing early offers are legally binding. “Early decision applicants lose choice and negotiation leverage, while regular decision applicants are left to scramble for an artificially diminished number of admission slots doled out at lower acceptance rates,” said Benjamin Brown, one of the attorneys representing the plaintiffs.

    Read more: Vet School Sues Over ‘Gatekeeping’ Standards, Citing Antitrust Concerns

    The defendants also include the Consortium on Financing Higher Education, a coalition of private liberal arts institutions accused of facilitating information-sharing that supports the alleged scheme. The consortium did not immediately respond to requests for comment.

    Per Reuters, the plaintiffs are seeking class-action status for students who applied through early decision since 2021, as well as certain regular decision applicants. They are requesting unspecified damages for alleged overcharges in tuition and a court order banning the binding early decision practice. The University of Pennsylvania and Columbia declined to comment, while Duke, Vassar, Wesleyan, and several other schools named in the case did not respond to inquiries.

    Source: Reuters