Stuart Suss
PhD Student
Posts: 1439
Loc: Chester County, Pennsylva...
Reg: 11-21-04
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08-17-22 08:03 AM - Post#344081
In response to Flyerfanboi
An update to this discussion:
To my knowledge Congress has not extended the antitrust exemption previously granted to the Ivy League which permitted league schools to agree with each other to limit financial aid ("need only"). Absent Congressional action, the league's exemption will expire at the end of September.
I invite each of you to read my previous post on this topic, particularly the linked articles, for the legal and policy background.
Bob Litan and several other attorneys represent clients who have sued several universities (including six Ivy League schools). The legal complaint alleges that the financial aid policies at these schools are in violation of antitrust law (regardless of the current, but expiring, Congressional exemption) because these schools are not offering need-blind admissions.
On August 15, the lawsuit survived a motion to dismiss. See the 26 page court ruling from the United States District Court of the Northern District of Illinois.
This ruling means the case moves forward and discovery can proceed. The schools will have to produce documents, answer questions and their employees, admissions people and probably their presidents will have their depositions taken under oath. We will learn much in the next couple of years.
On June 25, 2021, in another message thread, I posed the following question.
In 2008-2009, Cornell attempted a form of merit scholarships in order to better compete with the rest of the league (see quote from their men's basketball coach, Steve Donahue). They were slapped down by the rest (or some of the rest) of the league.
In the athletic world which is fast arriving . . .
1. The gap between Ivy financial aid and Division 1 scholarships is wide, certainly for those Ivy students not receiving maximum, need-based financial aid.
2. The gap will become wider as Division 1 schools are permitted/required to enable their athletes to be compensated for NIL (name, image, likeness) and to receive other outside income or benefits on top of the athletic scholarship.
3. Harvard, Yale and Princeton are believed to have an advantage in today's legal environment with regard to financial aid offers (based on their greater endowments).
4. If, following September 30, 2022, the Ivies may no longer jointly agree not to provide merit scholarships, will one or more Ivy schools attempt a Cornell 2008-2009 style breakout from the status quo?
One year later, what is expected?
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