Are Elite Colleges Really Favoring the Wealthy?
If you’ve been following college admissions news lately, you’ve probably heard about the growing legal storm enveloping several elite universities.
A recently filed motion in a longstanding lawsuit claims that certain colleges have been favoring wealthy families and donors in their admissions processes, potentially shortchanging applicants from less affluent backgrounds.
In this post, I’ll break down what’s happening, how it might affect prospective students, and what you should keep in mind as you navigate your own college applications.
1. What’s Happening?
This controversy first began back in 2022, when a group of former students filed a lawsuit accusing 17 private institutions of forming a “price-fixing cartel.” According to their claims, these schools coordinated on financial aid practices in ways that might reduce the aid given to low- and middle-income students. Many of the schools named in the original suit have settled, paying out hundreds of millions in combined settlements - but five elite universities have continued to fight the allegations.
In a new court filing, plaintiffs have presented detailed claims that these remaining universities used special lists, recommendations from influential board members, or family donation history to give applicants a leg up -allegedly undermining the “need-blind” admissions policies these schools publicly tout. The plaintiffs say this process amounts to illegal favoritism and is at odds with federal antitrust laws. Now, they’re seeking $685 million in damages, a figure that could potentially triple under U.S. antitrust rules if the court rules in their favor.
2. Who Is Being Accused?
While multiple institutions were involved in the original lawsuit, the spotlight currently rests on five elite schools that have declined to settle:
Massachusetts Institute of Technology (MIT)
University of Pennsylvania (Penn)
Georgetown University
Cornell University
University of Notre Dame
The motion points to internal records from some of these schools showing that the children of wealthy donors, or students on “priority lists,” were admitted at significantly higher rates. For example, at Georgetown, a former president allegedly compiled a list of wealthy donors’ children and recommended they be admitted - sometimes without even looking at their transcripts. Other examples include admissions officials referencing “donor lists” and acknowledging that large gifts or promised donations were part of their consideration.
3. How Are the Schools Responding?
Each of the universities named in the motion strongly denies any wrongdoing, maintaining that their practices are both legal and fair. MIT, for example, points to what it calls an “overwhelming record” supporting its independent admissions process, stating it has historically admitted students based on merit alone. The University of Pennsylvania likewise says that any claims of “wealth favoritism” are untrue and that it sees “no merit” in the lawsuit.
These institutions also emphasize that they have awarded substantial financial aid to families in need. In their view, the plaintiffs’ theories and damage calculations are based on “junk science,” and they plan to defend their practices in court.
4. What Does It Mean for You?
It’s tempting to see headlines like these and assume that only huge donations can secure a spot at top universities, or that these schools are out of reach for anyone without deep pockets. However, there are a few key points to keep in mind:
Most Applicants Are Admitted Without Special Favors
Even if certain high-profile cases reveal admissions favoritism for donors’ children, the vast majority of admitted students are still chosen for academic, extracurricular, and personal strengths. Schools cannot fill entire classes solely with donor-linked students.Need-Based Aid Is Still Substantial
Elite colleges do tend to have significant resources for financial aid, and many continue to offer substantial funding for families with demonstrated need. Many of these universities are “need-blind” for U.S. applicants, meaning that they claim not to consider a student’s financial situation when deciding whom to admit.Litigation May Bring Transparency
Legal scrutiny can often bring about changes in policy or more transparent admissions procedures. If these allegations spur greater public attention, there could be more pressure on colleges to adopt strict rules against legacy and donor considerations—or at least be more honest about them.Focus on What You Can Control
Given the fierce competition for seats at top schools, dwelling on these controversies can sometimes feel overwhelming. Remember, your best bet is to focus on the aspects you can control: your academic record, your test scores (if applicable), your essays, your teacher recommendations, and your extracurricular involvement. These remain fundamental, no matter what’s happening at the institutional level.
5. Staying Hopeful and Moving Forward
Whether or not these legal battles cause a shift in how elite schools approach admissions, you still have the power to forge your path. More and more colleges are being forthright about their admissions criteria, and a growing number are even eliminating legacy preferences altogether. Meanwhile, broad public attention to these issues can only encourage continued reform and accountability.
Here are a few parting thoughts:
Apply Broadly: If you have your heart set on Ivy League or other elite institutions, that’s fantastic—but cast a wide net. Consider mid-tier and smaller private universities, public flagships, and honors colleges, all of which can offer top-notch education and ample opportunities.
Keep Your Options Open: A big-name school is not the only path to success. Look for institutions that fit your interests, learning style, and financial needs.
Stay Informed: As this lawsuit progresses, new details might emerge about admissions practices at a variety of elite institutions. While it’s good to be aware of these developments, try not to let them discourage you; instead, use them as a reminder to look for transparency and alignment with your personal values when selecting colleges.
Conclusion
Allegations of “wealth favoritism” have made headlines, and the pending lawsuit has uncovered some concerning details about how certain elite universities manage admissions. As a prospective student or parent, it’s understandable to feel disillusioned. But remember, higher education is a vast landscape; most schools are not caught in these legal disputes, and even at the institutions named, the admissions process is still largely built on conventional factors like academic performance and personal achievements.
The best strategy is to focus on your own strengths, continue building a compelling application, and apply to a balanced list of schools where you can thrive. Stay optimistic - this controversy may well lead to more transparency, which benefits all students in the long run.
Have questions or comments about this unfolding situation or about the admissions process in general? Feel free to schedule a call here!
Best of luck,
Melina Kazanas
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