Were Students of Divorce Parents Overcharged by Universities?

 Posted on October 24, 2024 in Family Law

Forty of the most elite colleges across the United States are facing allegations that they overcharged students whose parents are divorced. The lawsuit was recently filed in an Illinois federal court, and while it is not currently a class action lawsuit, there is a push to make it a class action suit to account for the number of students who were allegedly harmed. The lawsuit alleges the non-profit College Board conspired with universities to artificially inflate what students were charged based on an examination of the assets of noncustodial parents (those with parenting time rather than the primary residential parent).

Dartmouth, MIT, Yale, Brown, Georgetown, and Harvard are among the universities facing allegations of collusion and price fixing in this antitrust lawsuit. According to the lawsuit, in 2006, the College Board began pushing universities to agree to consider the income and assets of noncustodial parents when making determinations of financial aid. At least 20,000 students have been negatively impacted over the past two decades by this practice. Some universities required that noncustodial parents provide financial information, thus increasing the amounts the students were required to pay.

It is believed this practice raised the cost of tuition by at least $6,200 when compared to universities that did not consider the non-custodial parents’ incomes. The College Board has called the lawsuit "meritless," although the case comes on the heels of another class action lawsuit against many of the same schools that resulted in a $284 million settlement for price-fixing. If you are a divorced parent or are contemplating divorce, you may have questions regarding each parent’s obligation to pay college expenses for your child. An experienced Wheaton, IL divorce lawyer from Mirabella, Kincaid, Frederick & Mirabella, LLC can help you sort out this issue.  

Are Parents Obligated to Pay for Their Child’s College Expenses?

The short answer to this question is "maybe." Generally speaking, a parent is not under any legal obligation to pay for their child’s college education. However, in the state of Illinois, college expenses can be deemed child support. If the parents agree during the divorce that one or both of them will pay for or contribute to college expenses, then this is a legal, binding agreement unless a modification is requested and granted. If a parent or parents are paying for college expenses, the student must sign a consent form that gives parents access to the child’s records, grade reports, and academic transcripts.

If the child is not maintaining the required grade point average (usually 2.0), a parent can petition the court to modify or terminate his or her financial obligation. The law limits parental responsibility for college expenses to only a bachelor’s degree, not a master’s or PhD, while also placing limitations on the financial support from each parent. Both parents are obligated to provide financial support for five college applications, one entrance exam prep course, and two college entrance exams.

Once a child turns 23, the support for college expenses can be terminated. If the child marries during this time, supporting parents can petition to have the college financial support terminated. Parents who are barely surviving financially are unlikely to be ordered to contribute to their child’s college education. For parents who are responsible for their child’s college education, the court assumes the child will explore every avenue for assistance in paying for his or her education, including grants, scholarships, and student loans.

Contact a DuPage, IL County Divorce Lawyer

If you were ordered to pay your child’s college expenses, but do not have the financial resources, or if you want the court to order your spouse to pay college expenses for your child during your divorce, a knowledgeable Wheaton, IL divorce attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC can help. For your convenience, MKFM Law serves family law clients at our offices in Kane County and DuPage County. Call 630-665-7300 to schedule an initial attorney meeting.