Considerations for Colleges and Universities Facing Class Action Refund Lawsuits From Students – Faegre Drinker
COVID-19 has forced colleges and universities to move from traditional in-person classroom instruction to online learning. Just as students, faculty and administrators adjust to their new reality, a spate of lawsuits has been filed against colleges and universities — increasing a trend of student litigation growing since before COVID-19 — resulting from coronavirus-related changes to their programs.
These proposed class actions generally pursue claims like breach-of-contract and unjust enrichment, and demand the return of tuition, room and board, and other fees paid for the 2020 spring semester. While most have been brought on behalf of students, at least one names a parent as a plaintiff because the parent paid all or a portion of the student’s tuition and fees.
While a significant number of colleges and universities have provided pro-rated refunds to students for unused housing or meal plans, institutions have generally declined to return or reduce tuition and other fees because students are still receiving the curriculum and instruction that their tuition paid for, albeit in a different format. Moreover, federal and state education authorities, along with postsecondary accrediting organizations, have encouraged institutions to shift academic programs online for the purposes of academic continuity and have provided significant regulatory flexibilities to achieve that end.