Republicans Target College Tuition Consultants Over Antitrust Concerns
In a sweeping move that could reshape how U.S. colleges set tuition prices, top Republican lawmakers have launched a formal investigation into consulting firms that allegedly use student data and secret algorithms to manipulate financial aid offers. The letters—sent by the House and Senate Judiciary Committee chairmen—raise serious antitrust questions about whether schools are effectively colluding through third-party software platforms.
Who’s Under Investigation?
The letters, signed by Reps. Jim Jordan and Scott Fitzgerald and Sens. Charles Grassley and Mike Lee, were sent to:
- EAB – A major enrollment management firm
- Ruffalo Noel Levitz – Provider of financial aid optimization tools
- The College Board – Operator of the CSS Profile for aid assessment
- Oracle – Through its higher education tech division
- Ellucian – Student information and aid software provider
How Tuition Algorithms Work: A Behind-the-Scenes Look
According to prior reporting, firms like EAB use up to 200 variables—including student income, test scores, zip codes, and even browsing behavior—to calculate how much a student is willing to pay. Ruffalo Noel Levitz claims its models draw from data on over 1,900 colleges and billions of student interactions.
Key Allegations in the GOP Letters
| Concern | Description |
|---|---|
| Antitrust Violation | Colleges may be sharing confidential pricing data via third-party algorithms, effectively fixing prices. |
| Data Arbitrage | EAB once described its model as “a form of arbitrage,” akin to financial markets. |
| Lack of Transparency | Families rarely know how their aid package was calculated or why peers receive different offers. |
| Real-Time Data Sharing | Algorithms may update pricing in real time using competitor data during admissions season. |
Industry Pushback and Academic Response
While EAB and Ruffalo Noel Levitz have not yet issued detailed responses, critics argue that colleges don’t blindly follow algorithmic advice. Georgia Nugent, former president of Kenyon College, stated: “An algorithm might have suggested X, Y or Z, and that did not accord with our values and objectives.”
Still, education policy experts like Stephen Burd of New America say the probe is long overdue: “It is about time that policymakers are scrutinizing the enrollment management industry.”
[INTERNAL_LINK:Education] advocates warn that opaque pricing systems disproportionately hurt low-income and first-generation students who lack the resources to navigate complex aid offers.
