The chairmen of the House and Senate Judiciary Committees sent letters Wednesday to two consulting firms — along with the College Board, Oracle and a company called Ellucian — seeking information about any tuition pricing algorithms they have built and the college applicants’ data that feeds them.
The consulting companies, with names like EAB and Ruffalo Noel Levitz, may be unfamiliar to college applicants and their families. But colleges know the consultants well, since most schools hire one of the two firms, or smaller consulting companies, to help them attract students and plot financial aid offers.
“Colleges that agree to use a common pricing formula or algorithm, or knowingly do so through a third-party company, are likely violating the antitrust laws,” said the letters, which were signed by Representatives Jim Jordan and Scott Fitzgerald and Senators Charles Grassley and Mike Lee, all Republicans.
The demands cite reporting in The New York Times in May, which pointed to past comments by an EAB executive who had described its work as “a form of arbitrage” and added that its financial aid optimization strategies were “like working in the financial markets.”
EAB boasts of up to 200 variables that colleges and universities can use when setting an individual admitted student’s price, drawing from data on over 350 clients and 1.5 billion “student interactions.” Ruffalo Noel Levitz has over 1,900 clients feeding its software models for everything from financial aid to fund-raising.
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The post Republicans Demand Information From Firms That Help Set College Prices appeared first on New York Times.
