Georgetown students have begun receiving settlements averaging $2,500 each from the class-action financial aid lawsuit Henry, et al. v. Brown University et al., in which Georgetown is a defendant. The settlement fund of $320 million dollars is currently being distributed to claimants from all 17 universities named in the suit, including Georgetown, who is one of five universities that has not settled.
The lawsuit, which has been ongoing since January 2022, alleges that Georgetown and 16 other universities that were part of the 568 Presidents Group violated federal antitrust laws by colluding to raise the price of attendance and illegally considering students’ financial background in admissions decisions. The 568 Presidents Group convened as a consortium of American universities beginning in the 1990s to create a standard formula for financial aid awards.
Collaboration on admissions standards is permitted by an exemption in Section 568 of the Improving America’s Schools Act of 1994, as long as universities remain “need-blind” in admissions. The lawsuit alleges that the 17 universities did consider financial need in their admissions process, or colluded with universities that were not need-blind.
Eligible claimants for Georgetown’s settlements are students enrolled at the university’s full-time undergraduate programs between the fall term of 2003 through Feb. 28, 2024, who “received at least some needbased financial aid.” Their tuition, fees, room, or board must also not have been fully covered by any combination of grant or merit aid, according to a 2025 order by Judge Matthew F. Kennelly.
Eric Cramer, one of the plaintiffs’ lead lawyers for the case, said that the 17 universities collaborated through yearly meetings and online communication to keep all of their tuition prices and financial aid at similar levels. Cramer explained that they were allegedly “setting a price to avoid bidding wars over students by basically trying to keep their prices high and their aid lower.”
Cramer said that proving the universities were not need blind is integral to arguing that the Section 568 exemption should not have applied, and that collaboration between the universities should not have been permitted.
“Need-blind is a shield that they have, and once we break through that shield, then they’re subject to the antitrust laws,” Cramer said.
Ted Normand, another lawyer for the plaintiff, said that the universities reduced competition and maximized profit by standardizing their prices to the highest amount possible.
“It’s not the way competitors would price their product if they really had to compete with each other,” Normand said.
In Georgetown’s case, the plaintiffs argue that a “President’s List” of wealthy applicants to be admitted, compiled by President Emeritus John J. DeGioia, gives evidence that Georgetown wasn’t need-blind. The lawsuit also previously revealed a report sent to Georgetown’s former undergraduate dean of admissions, Charles Deacon, that detailed Georgetown’s special interest admissions policy.
“Special interest admission can be considered for up to 5% of the class taking into consideration the 80% plus yield that these candidates bring,” the report wrote, referring to the percentage of accepted students who actually decide to enroll in the school.
Under this policy, the university allegedly admitted certain candidates in exchange for opportunities to develop relationships with the families or sponsors associated with the admitted student.
Normand said that having a special admissions policy results in wealth discrimination in which candidates that can pay full tuition are preferred for admission.
“College admissions is a zero-sum game,” Normand said. “You’re discriminating against lower socioeconomic or middle income folks. They’re getting pushed out.”
So far, 12 universities have settled in the case. Georgetown is one of five that hasn’t, alongside Cornell, Notre Dame, the University of Pennsylvania, and the Massachusetts Institute of Technology (MIT).
A university spokesperson told the Voice that the university is not planning to settle.
“Georgetown is actively defending itself and continues to deny any wrongdoing. Georgetown strongly disagrees with the plaintiffs’ claims and denies any wrongdoing in this matter,” the spokesperson said. “As this case proceeds toward trial, Georgetown remains confident in its legal position and the merits of its defenses.”
Some eligible Georgetown students have received payments from the settled defendants, and others who filed claims may receive payments in the coming month due to California Institute of Technology and Johns Hopkins University settling about one year after the first 10 universities.
Because the university has not yet settled, students are receiving settlements from a $320 million fund created by the other universities that have chosen to settle. Pennsylvania State University Law professor John Lopatka explained that the fund treats all eligible students from these universities as one class under the lawsuit.
“Each defendant that did settle paid into this fund, and now this fund is going to distribute this money to students who are at those schools during this 20-year period and received financial aid,” he said.
If Georgetown decides not to settle and proceeds with a trial scheduled for Nov. 2, the trial could reveal internal business records and private communications, according to William Kovacic, the Global Competition Professor of Law and Policy at George Washington University Law School.
“We might very well have individual university officials being subpoenaed and required to testify, especially interrogated on the basis of these business records that they’ve maintained over time,” Kovacic said.
Cramer said that if Georgetown chooses not to settle and loses the case, they could be responsible for paying a significant sum compared to the other schools that have settled. Defendants that settle early pay into the settlement fund, but those who stay on the case and lose must pay for all of the damages.
“Our economist has calculated that the total damages to the class is $680 million,” Cramer said. “Antitrust judgments are automatically tripled, meaning that if the jury awards $680 million that automatically becomes $2 billion and then the five schools, if they’re all found liable at trial, would have to pay the $2 billion among the five of them.”
Erica Lung (SFS ’27) received her first payment on July 20 for $1034.50. She said that she is unhappy that the partnership between the 17 universities played a role in her financial aid package.
“I feel like there’s not a lot of transparency as to how that financial aid is calculated,” Lung said. “I think it’s the opinion probably of the court that financial aid should solely be dependent on a student’s financial circumstances and not necessarily that you have trust that you may have formed with other schools.”
A former student, who asked to remain anonymous to keep their financial position private, said that receiving the money was a relief. They received a venmo payment for $2277.71.
“I was overjoyed to wake up to this payment. I’ve been waiting for it for two years and it’ll go straight towards my student loans,” they wrote.
The former student emphasized that they don’t view the settlement as extra cash, but money that they were always entitled to.
“The impact of the antitrust activities Georgetown engaged in had a real impact on my ability to afford college, so I’m grateful that I’m getting a chunk of this settlement,” they said. “But it isn’t enough to make up for what Georgetown forced me to pay in extra tuition.”
