House Judiciary Committee Approves Narrow Antitrust Exemption for Private Financial Aid Collaboration

Press Release

The House Judiciary Committee today approved the Need-Based Educational Aid Act of 2015 (H.R. 2604) by voice vote. Former House Judiciary Committee Chairman Lamar Smith (R-Texas) is the sponsor of the legislation.

The Need-Based Educational Aid Act of 2015 extends an 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.

House Judiciary Committee Chairman Goodlatte (R-Va.) and former Committee Chairman Smith issued the following statements on the Committee'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 continues an efficient method for facilitating private financial aid to deserving applicants. I thank former Chairman Smith for his leadership on this issue, and I am pleased with the Committee's action today."

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. H.R. 2604 protects this need-based aid and need-blind admissions."

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