When Fairness Isn't Fair: The Antitrust Lawsuit

Let's say you are a senior in high school or the parent of one, and you are filling out financial aid forms that will determine whether you can attend college. In doing so, you are mandated to give total monetary information, not only from the parent you live with but also from the other parent who may not be around very often or is not in your life. The rule is simple: No exceptions. For most families, particularly families who have experienced divorce or separation, this is difficult; it can result in thousands of dollars less in financial aid and make it more challenging to pay for or qualify for college. This story is an actual precedent: October 2024, when the U.S. District Court for the Northern District of Illinois filed a federal class-action lawsuit against the College Board and 40 of America's top private colleges.

The lawsuit challenges whether elite colleges unlawfully coordinated to require financial information from non-custodial parents, even when they don’t contribute to college costs. This practice occurs despite knowing that these non-resident parents are unlikely to contribute to college expenses. According to the lawsuit, families affected by this practice pay approximately $6,200 more per year than their peers who are not impacted by it. The lawsuit has been filed not only due to the legal concerns it raises but also because of what it reveals about fairness, competition, and the influence of elite colleges in our country.

This antitrust lawsuit has focused on maintaining competition and preventing companies from colluding to manipulate pricing or restrict competition. Typically, this is illegal where they operate since it affects customers by keeping prices too high. Plaintiffs claim that the institutions behaved unfairly by exploiting the College Board's CSS Profile system (a financial aid form that requests information from non-custodial parents). Instead of competing to provide the finest package of financial aid, they reduced competition, making it more difficult for students to get the best bargain from their schools. This incident is especially troublesome in higher education, where college costs have skyrocketed over the last decade, and access to financial aid can mean the difference between attending an institution one wants to attend and not being able to do so.

The schools and the College Board may have to compensate affected students and modify this situation by providing financial support if the judges rule in favor of the plaintiffs. Also, the ruling may establish a legal benchmark for how colleges handle financial data when determining aid and could significantly impact the way they grant financial support.

This scenario presents some compelling issues of fairness and equity. Do children of divorced or separated parents need to suffer as a result of their family situation? Is it equitable to require the financially unrelated parent to provide financial information? These are questions of fairness and equity that demonstrate what schools owe to their children. When fairness-based rules cause harm to vulnerable populations, such as children of divorce, they erode trust within these schools and raise serious ethical questions. Schools, like strong organizations, need to do what is best for their children and enact rules that are equal and equitable.

This lawsuit reminds families and students to get educated about the rules of financial aid and to support equitable policies. It also includes the core message that fairness, transparency, and ethical responsibility should be at the heart of all institutions, especially those that shape the futures of young people.