Congress requests documents from University in price-fixing investigation

Congressional Republicans have launched an investigation into the financial aid practices of all eight Ivy League universities, including Princeton, accusing the universities of collectively raising the tuition prices. The probe follows broader scrutiny of higher education from the federal government, and it comes as Princeton officials have said they are committed to protecting financial aid.

“We are particularly concerned that Ivy League member institutions appear to collectively raise tuition prices while engaging in price discrimination by offering selective financial aid packages to maximize profit,” a letter addressed to University President Christopher Eisgruber ’83 read. “By apparently engaging in anticompetitive pricing practices, Princeton University may be acting inconsistent with U.S. antitrust laws.”

The letter requested wide-ranging documents related to University admissions, financial aid, and communications between University administrators and college application-assistance websites such as the College Board and the Common Application. The University has until next Tuesday to release these documents to the committee.

In a statement to The Daily Princetonian, University spokesperson Jennifer Morrill said that Princeton had “received the April 8 letter, are reviewing the requests, and plan to cooperate with the inquiry.”

In 1991, the Department of Justice (DOJ) investigated the Ivy League, alleging that its universities were using a standardized formula to determine the maximum price a student could pay, thus eliminating competition between the prices offered between schools and in financial aid awards. In response, the universities agreed to stop sharing information on student financial aid and to avoid collaboration on tuition increases.

Following the DOJ’s investigation, Congress passed the Improving Schools Act of 1994, which allows universities to lawfully collaborate on a fixed price providing they do not consider financial need in the admission decision. The exemption expired in 2022.

Princeton was notably absent from a class-action lawsuit in October 2024 that alleged 40 top universities, including the other seven Ivy Leagues, colluded to limit financial aid for students with divorced or noncustodial parents by taking into account the assets of those parents.

Now, the House and Senate Committees are concerned that the Ivy Leagues have continued colluding despite “no longer having an antitrust exemption,” the letter indicates. “The structure and operation of the higher education market strongly suggests the market is not functioning properly and is subject to widespread violations of antitrust laws.”

The letter detailed a number of venues for alleged collusion, including meetings between the Ivy League presidents; use of the College Board and Common Application; the improper use of U.S. News and World Report’s statistics, enrollment management software, and binding early-decision programs; and directors and trustees serving the boards of multiple higher education institutions or collegiate-associated organizations, such as the College Board and U.S. News.

This investigation follows the recent suspension of federal grants and the halting of $4 million in funding for University climate research. The other seven Ivy League universities received a similar letter, including the University of Pennsylvania, Harvard University, and Columbia University.

Luke Grippo is a senior News writer and Features contributor for the ‘Prince.’ He is from South Jersey and usually covers administrative issues, including Undergraduate Student Government, the Council of the Princeton University Community, and institutional legacy.

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