Reply to Suit Accuses Georgetown, Penn and M.I.T. of Admissions Based on Wealth

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]
I’m trying to understand how admitting full pay students harms other students by increasing their costs. I think that is what the lawsuit is claiming, is that right? [/quote]
Well, that brings up an interesting point. The colleges colluded on financial aid formulas, for which the supposed damages are reduced need-based aid to individuals. However, that was completely allowed under the carve-out exception as long as the universities were need-blind. If the universities intentionally admitted students who were [i]much more[/i] than merely full pay, seems irrelevant to the alleged damages, at a minimum, and quite possibly increased the level of generosity of financial aid.

If the allegation is that the financial aid formulas would have been more generous if the universities had not intentionally admitted big donor students, that makes no sense. Universities may have had budget line items for post-enrollment donations from prospective families that supported the level of generosity in the financial aid formulas.[/quote]

The allegation is that the collusion on financial aid hurt the recipients. The collusion was allowed because there was an anti-trust carve out for need blind schools. The definition of need bling in the carve out required that "all students" be admitted on a need blind basis. By showing that the universities did not admit "all students" on a need blind basis, the Plaintiffs argue that the antitrust exemption does not apply and that the collusion was illegal. [/quote]

I don't understand. Colleges need to budget their FA don't they? They can not literally admit 2000 per class that ALL need aid. They would go broke. [/quote]

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