Northwestern, UChicago named in lawsuit claiming university early decision agreements are anticompetitve
The class-action lawsuit accuses 32 elite U.S. schools of violating antitrust laws. Five of the eight Ivy League universities are also named, among several others.
The universities named in the lawsuit all use the Common app and/or Scoir/the Coalition app, the lawsuit said. All the universities also are or were members of the Consortium on Financing Higher Education.
The plaintiffs claim students who commit to a school early are prevented from receiving competitive offers from other schools, and are locked into tuition and financial aid agreements.
This is despite the fact that a prospective student's early decision agreement with a university is not legally binding — with universities describing it as an "honor-bound agreement" with "ethical" obligations, but without legal standing, the lawsuit said.
The lawsuit said the universities benefit from early decision agreements not being legally binding — as they allow universities to revoke acceptance for students who do not finish their senior years of high school with grades commensurate with their interim transcripts, and also allow schools to change their programs of study and other terms of service without students having legal recourse.
"Without binding contracts, participating colleges are also not contractually bound to any price terms vis-à-vis admitted students and can charge the tuition they deem appropriate, or offer any student financial aid packages they deem appropriate without facing legal claims that implied financial terms were violated," the lawsuit said.
Nevertheless, students who enter early decision agreements are essentially bound to the schools that offered them, the lawsuit said.
The lawsuit called early decision agreements anticompetitive.
"A school has no legal, moral, academic, or self-interest-based reason not to compete for students offered admission at other schools through Early Decision, any more than it does to refrain from competing for students offered admission by other schools through the regular admissions process," the lawsuit said. "Yet the Defendant Schools have mutually agreed not to compete for students accepted through Early Decision, which both raises prices for tuition and other services and entrenches a system widely acknowledged to be unfair and harmful."
The suit seeks to end the early admissions practice.
CBS News Chicago has reached out to both Northwestern and UChicago for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Suze Orman Breaks Down Big Beautiful Bill Act Perks: $10K Car Loan Deductions, $25K Tip Exemptions, And A $1K Gift For Every Baby
The One Big Beautiful Bill Act has stirred up plenty of conversation. Financial expert Suze Orman recently detailed some of its key benefits on her "Women & Money" podcast. While she acknowledges there are many parts of the bill she hates, she encourages her listeners to focus on the practical perks that can help you keep more of your money or save on taxes. Here's a breakdown of some important highlights. Don't Miss: Would You Have Invested in eBay or Uber Early? The Same Backers Are Betting on 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Expanded Child Tax Credit One of the standout features of the bill is the expanded child tax credit, which Orman highlights as a vital lifeline for parents raising children under 17. "Right now, the child tax credit gives you up to $2,200 per child," she explains. Even if you owe no taxes, up to $1,700 of that amount is refundable — meaning if your tax bill is zero, the IRS will still send you a check for that portion, rather than just reducing what you owe. The credit phases out for higher earners — starting at $200,000 modified adjusted gross income for singles and $400,000 for married couples filing jointly. Importantly, the child must be a U.S. citizen living with you for more than half the year. "Do not leave money on the table," Orman advises, encouraging parents to claim this benefit if eligible. Trending: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Up to $10,000 Deductible on Personal Car Loans Another notable perk is the new deduction for interest on personal auto loans. "You can now deduct up to $10,000 per year in interest on a personal auto loan as long as – there's always a catch, isn't there — the car is assembled in the United States," Suze notes. This deduction applies only if the loan is in your name and the vehicle isn't leased or used for business purposes. This benefit is good through 2028, giving car buyers a significant tax break if they finance a qualifying vehicle. Orman cautions, "Just ask, does this car qualify or not," to make sure you're taking advantage of this Tips: Up to $25,000 Exempt From Federal Income Tax For workers relying on tips, such as servers or hairdressers, the bill offers a new exemption on tip income. Up to $25,000 in tips can now be excluded from federal income taxes annually. Orman calls this "one of the biggest tax breaks you're gonna ever see," but stresses the importance of accurate record-keeping. "This really is a gift," Orman says, but reminds tip earners to track their tips, report everything honestly, and file taxes carefully. This exemption phases out for singles earning more than $150,000 and married couples filing jointly above $300,000. Note that this only applies to federal income tax; some states are considering similar exemptions, while others still tax tip income. What This Means for You Orman isn't the first to say she dislikes this new legislation, but if it's happening, she says you might as well take advantage of it. "You first have to be able to take advantage of the things that you can take advantage of and not waste money," she says. The bill's various benefits mostly expire in 2028, coinciding with a new presidential term, but until then, Orman says there are several smart moves taxpayers can make to boost their bottom line. Read Next: Kevin O'Leary Says Real Estate's Been a Smart Bet for 200 Years — Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Suze Orman Breaks Down Big Beautiful Bill Act Perks: $10K Car Loan Deductions, $25K Tip Exemptions, And A $1K Gift For Every Baby originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
36 minutes ago
- Yahoo
Democrats decry move by Pentagon to pause $800 million in nearly done software projects
By Alexandra Alper WASHINGTON (Reuters) -Democrats took aim at the Trump administration after Reuters reported on Wednesday that the Navy and Air Force were poised to cancel nearly completed software projects worth over $800 million. The reason for the move was an effort by some officials at the services to steer new projects to companies like Salesforce and Palantir, in what could amount to a costly do-over. 'The Pentagon has yet to show that it had a good reason for halting these contracts in the last inning and scrapping work American tax dollars have already paid for," Democratic Senator Tim Kaine said in a statement. "If it can't show its homework, then this announcement - just days after Palantir's CEO spoke at Mike Johnson's Wyoming donor retreat - reeks of corruption.' Punchbowl reported this month that Palantir CEO Alex Karp planned to address Republican House Speaker Mike Johnson's annual big-donor retreat in Jackson Hole, Wyoming. The Pentagon and Air Force did not respond to requests for comment. The Navy declined to comment. Trump officials have said the administration is striving to make the contracting process more efficient. The comments show growing concern among Democratic lawmakers over waste at the Pentagon, even as Donald Trump took office vowing to rid the government of waste and abuse. The website of the Department of Government Efficiency, the agency he created to spearhead those efforts, lists over $14 billion in Defense Department contracts it claims to have canceled. But seven months into his presidency, some of his own actions have complicated DOGE's work, from firing the Pentagon's inspector general to issuing an executive order prioritizing speed and risk-taking in defense acquisitions. 'If you're serious about cracking down on waste, fraud, and abuse, the last thing you'd do is cancel $800 million in projects that are nearly ready to roll out just to turn around and steer the same work to corporations of your choosing," said Democratic Representative Maggie Goodlander, who sits on the House Armed Services Committee and served as an intelligence officer in the United States Navy Reserve. "This maneuver is an insult to taxpayers and servicemembers across America," she added. Salud Carbajal, another House Democrat who sits on the Armed Services Committee, said the behavior was part of a pattern of waste at the Pentagon under Trump. 'I understand that our military's acquisition and procurement processes aren't flawless, but this administration has repeatedly shown a blatant disregard for the responsible use of taxpayer dollars,' said Carbajal, citing "lavish" military parades and "unnecessary" troop deployments in Los Angeles. Democratic U.S. Representative Jill Tokuda, who also sits on the committee, echoed Carbajal's remarks. "Stripping away critical oversight guardrails is unnecessary and downright reckless," she said, adding that after many delays, the Pentagon was finally poised to implement military pay systems that could pass an audit. "Taxpayers should not fund sweetheart deals for the well connected."
Yahoo
an hour ago
- Yahoo
High Yield and Low Stress: 2 Dividend ETFs That Are Built for Passive Income
Key Points Statistical evidence supports the idea that these two ETFs can simultaneously grow capital and generate income. Maximum monthly drawdowns are less than the benchmark's performance, and so is the risk as defined by standard deviation. These ETFs do relatively best when benchmark indexes are highly volatile but still make money in bull markets. 10 stocks we like better than JPMorgan Equity Premium Income ETF › The JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) have garnered significant investor attention, in part due to their trailing-12-month dividend yields of 8.2% and 11.2%, respectively. Moreover, they offer monthly income, making them a favorite among passive income investors. As such, it would be interesting to share some modeling of their performance to see if they do offer investors a way to a relatively low-volatility strategy that practically guarantees a monthly income. (Keep in mind dividends can always be cut.) Introducing two JPMorgan ETFs The first thing to understand about these two exchange-traded funds is that they are not tailored to invest in dividend stocks. Instead, they both follow the same strategy of investing up to 80% of net assets in equities (stocks), with the only difference being that the Equity Premium ETF focuses on S&P 500 stocks while the Nasdaq Equity Premium ETF focuses on stocks in the Nasdaq-100. As noted above, the stocks are not explicitly selected for their dividend yield, an essential point because high-yield equity-focused ETFs often involve concentrating holdings in sectors with high yields. The remaining net assets, up to 20%, are invested in equity-linked notes (ELNs) that follow a strategy of selling call options on the indexes that the two ETFs benchmark -- S&P 500 and Nasdaq-100, respectively. A call option is the right to buy shares of the index at a specified price (the strike price) and is bought by bullish investors. The seller of the call options (in this case the ETF) receives a premium from the buyer. However, if the index increases significantly, the option is exercised, and the ELN typically incurs a loss. Conversely, when the index experiences a small gain, stays flat, or loses value, the option isn't exercised. The idea is that an anticipated net profit in premiums collected from the ELNs, combined with some dividend income from stock holdings, will generate sufficient income for distributions to be paid to shareholders under any condition, particularly in the event of a substantial increase in the index. And note that the upside is limited (gains less than the market), but the downside is also restricted. This table lays out how the portions of the ETFs will perform based on how the underlying index performs in a month. Monthly Index Performance Strong Gain Moderate Gain Moderate Loss Strong Loss Equities (At least 80% of the ETF assets) Strong Gain Gain Loss Strong Loss ELNs (Up to 20% of the ETF's assets) Loss Profit Profit Profit Overall Gain, but less than the market Gain, but less than the market Slight profit/slight loss Loss, but less than the market Author's analysis. What the ETFs need to do to demonstrate they work Before I throw charts at you, it's worth noting that the proof of the strategy working includes: The ETF should have a lower volatility than the index (measured here by the standard deviation of monthly returns). The ETFs should have relatively low maximum monthly drawdowns because passive investors usually do not want to lose a significant amount in any one month. The strategy should demonstrate a high coefficient of determination, or R^2, indicating that the independent variable (in this case, the benchmark index) is primarily responsible for determining the outcome. Performance consistent with the outcomes outlined in the table above. That said, here are the charts comparing the monthly index performance to the ETF's performance. Both sets of data include reinvestment of dividends. First, here's the JPMorgan Equity Premium Income ETF. And now the JPMorgan Nasdaq Equity Premium Income ETF. A few conclusions can be drawn from the data, along with some additional calculations. The monthly standard deviation of the S&P 500 over the period is 4.7%, compared to 3.1% for JEPI, indicating lower volatility returns. The monthly standard deviation of the Nasdaq-100 over the period is 5.7%, compared to 4.2% for JEPQ, indicating lower volatility returns. Both ETFs exhibit high R^2 values, indicating a consistency of outcome from the strategy. The three most significant monthly drawdowns for JEPI are -6.4%, -4.2%, and -4.1%. The three most significant monthly drawdowns for JEPQ are -8.7%, -6.8%, and -6.6%. In general, the strategy is effective, generating a collection of positive returns when the indices report moderate gains and losses. The downside is limited compared to the index when the market declines significantly, and the upside is limited when the indexes perform well. What it means to passive investors Both indices have performed very well over the periods, with an average monthly gain of 1.5% on the S&P 500 and 1.8% on the Nasdaq; therefore, the ETFs have understandably underperformed. However, there's no guarantee that these conditions will continue, and these ETFs have demonstrated lower volatility returns while maintaining substantial dividends for those seeking monthly income. As such, they are excellent options for those seeking to generate passive income across a range of market conditions. Should you invest $1,000 in JPMorgan Equity Premium Income ETF right now? Before you buy stock in JPMorgan Equity Premium Income ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and JPMorgan Equity Premium Income ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy. High Yield and Low Stress: 2 Dividend ETFs That Are Built for Passive Income was originally published by The Motley Fool
