House of Representatives Passes Narrow Antitrust Exemption for Private Financial Aid Collaboration

Washington, D.C. – The House of Representatives today unanimously approved the Need-Based Educational Aid Act of 2015 (S. 1482). Former House Judiciary Committee Chairman Lamar Smith (R-Texas) is the sponsor of the House version of this legislation, which was reported out of the House Judiciary Committee earlier this month.

The Need-Based Educational Aid Act of 2015 extends a narrow antitrust exemption used by nearly two-dozen universities and colleges for the purpose of collaborating on a common formula for determining a student’s financial need. The exemption only applies to private financial aid assistance, not federally-funded financial assistance.  The current exemption is set to expire on September 30, 2015. 

Chairman Goodlatte and former Committee Chairman Smith issued the following statements on the House’s approval of the Need-Based Educational Aid Act of 2015:

Chairman Goodlatte: “Several colleges and universities collaborate on an effective method of providing private financial aid assistance to their students. They are able to do so because of an existing antitrust exemption that expires on September 30, 2015. The Need-Based Educational Aid Act of 2015 extends this exemption to allow these colleges and universities to continue their collaborative efforts. This bill renews an efficient method for facilitating private financial aid to deserving students and applicants. I am pleased with the House’s unanimous approval of this bill, and I thank former Chairman Smith for his leadership on this issue.” 

Congressman Smith: “The Need-Based Educational Aid Act of 2015 helps ensure that financial aid is available to the broadest number of students solely on the basis of demonstrated need.  Students who otherwise qualify should not be denied the opportunity to access higher education due to limited financial means. This bill protects need-based aid and need-blind admissions.”