ERIC Number: ED493582
Record Type: Non-Journal
Publication Date: 2006-Sep
Higher Education: Schools' Use of the Antitrust Exemption Has Not Significantly Affected College Affordability or Likelihood of Student Enrollment to Date. Report to Congressional Committees. GAO-06-963
Ashby, Cornelia M.
Government Accountability Office
In 1991 the U.S. Department of Justice sued nine colleges and universities, alleging that they had restrained competition by making collective financial aid determinations for students accepted to more than one of these schools. Against the backdrop of this litigation, Congress enacted a temporary exemption from antitrust laws for higher education institutions in 1992. The exemption allows limited collaboration regarding financial aid practices with the goal of promoting equal access to education. The exemption applies only to institutional financial aid and can only be used by schools that admit students without regard to ability to pay. In passing an extension to the exemption in 2001, Congress directed GAO to study the effects of the exemption. GAO examined: (1) how many schools used the exemption and what joint practices they implemented; (2) trends in costs and institutional grant aid at schools using the exemption; (3) how expected family contributions at schools using the exemption compare to those at similar schools not using the exemption; and (4) the effects of the exemption on affordability and enrollment. GAO surveyed schools, analyzed school and student-level data, and developed econometric models. GAO used extensive peer review to obtain comments from outside experts and made changes as appropriate. Appended are: (1) Statistical Analysis of Expected Family Contributions at Schools Using the Exemption and Comparable Schools; (2) Econometric Analysis of Effects of the Higher Education Antitrust Exemption on College Affordability and Enrollment; (3) Classification of 1999-2000 Academic Year and Schools Only Attending the 568 Group Meetings; (4) Comments from 568 Presidents' Group; (5) Consultants and Peer Reviewers; and (6) GAO Contact and Staff Acknowledgments. (Contains 19 tables, 4 figures, and 19 footnotes.) [This report was published by the United States Government Accountability Office.]
Descriptors: Cooperation, Low Income, Student Financial Aid, Colleges, Competition, Legal Problems, Federal Legislation, Enrollment, Paying for College, Student Costs, Grants, Access to Education
U.S. Government Accountability Office. 441 G Street NW, Washington, DC 20548. Tel: 202-512-6000; Web site: http://www.gao/gov
Publication Type: Reports - Evaluative
Education Level: Higher Education
Authoring Institution: General Accounting Office, Washington, DC.