Penn State Tuition Refund Settlement: Details and Eligibility
The Pennsylvania State University has reached a $17 million settlement in a class-action lawsuit concerning the transition to remote learning during the Spring 2020 semester due to the COVID-19 pandemic. This article provides comprehensive details about the settlement, eligibility criteria, payout amounts, and other relevant information.
Final Approval and Background
District Judge Robert J. Colville granted final approval to the Penn State tuition class action settlement on February 7, 2025. The lawsuit alleged that Penn State charged students for an in-person education and on-campus services but failed to deliver when campuses closed and classes moved online. Attorneys for the plaintiffs argued that this constituted a breach of contract.
Penn State, while settling the case, did not admit any wrongdoing or liability. The university maintains that it acted properly and swiftly to protect students, faculty, and staff during the unprecedented circumstances of the COVID-19 pandemic. A Penn State spokesman stated that avoiding further expense and risks associated with ongoing litigation was in the best interests of the university and its students.
The university also highlighted its efforts to support students during the pandemic, including room and board rebates, the distribution of over $131 million in funding from the coronavirus relief bill, and the establishment of an emergency fund to provide additional aid for students in need. Penn State also emphasized its investment in technology and digital resources to facilitate the transition to online learning.
Who is Eligible for a Payout?
The settlement covers a broad range of students who were enrolled at Penn State during the Spring 2020 semester. You may be eligible to claim a portion of the settlement if you meet the following criteria:
Read also: Understanding Penn State Requirements
- You were enrolled at Penn State, including all commonwealth campuses and branch locations, during the Spring 2020 semester.
- You paid tuition and/or fees to attend at least one in-person class.
The sweeping agreement covers students who attended University Park or any commonwealth campus. The Penn State class action settlement will compensate more than 72,000 students who paid tuition and/or fees to enroll in at least one in-person class during the Spring 2020 semester at the university, including all commonwealth campuses and branch locations.
Payout Amounts
The settlement provides for two types of payouts:
- Medical Withdrawal: Class members who withdrew for medical reasons after March 16, 2020, but before the conclusion of the Spring 2020 semester, and received a tuition refund will receive $50.
- General Distribution: The rest of the Net Settlement Fund will be distributed equally among all other eligible class members.
It's important to note that the exact amount each class member will receive depends on the total number of eligible participants and the final Net Settlement Fund amount. After deductions for attorney fees, administrative costs, and other expenses, the remaining funds will be divided among the eligible class members. About one-third is to be paid to the attorneys who litigated the case, while another $15,000 went to three people who brought the class-action lawsuit. Taxes are also to be paid before checks are sent.
No Action Needed to Receive Compensation
If you are an eligible class member, you generally do not need to take any action to receive your payment. Checks will be automatically sent to the last known permanent postal address on file with Penn State within approximately 60 days of the final approval date. Payments can also be sent by Venmo or PayPal.
However, it is crucial to ensure that Penn State has your current contact information. You can update your address or select your preferred payment method on the settlement website.
Read also: A Look at Penn State's Enrollment Numbers
Checks are to be sent by mid-April and those who receive one will have six months to cash it.
Important Dates and Deadlines
- Final Approval: February 7, 2025
- Opt-Out and Objection Deadline: January 6, 2025
Penn State's Response
In its statement, Penn State emphasized that faculty immediately pivoted to remote instruction and staff transitioned to offering students the full suite of resources necessary to successfully complete their academic year, including access to research materials, career services support, health services and enhanced mental health counseling, and student advisory services.
“In addition, when needed, staff facilitated student access to social service providers. This seamless transition ensured that students could safely continue learning in the face of the COVID crisis, where in-person classes were not permitted under Pennsylvania’s stay-at-home orders and closure mandates at the time.”
Legal Representation
The plaintiffs in the class action lawsuit were represented by several law firms, including:
- Lynch Carpenter LLP
- Poulin | Willey | Anastopoulo LLC
Similar Lawsuits
The Penn State lawsuit was one of many class actions filed against colleges and universities by students seeking refunds due to COVID-19-related closures. Students argued that they paid for an in-person educational experience with access to campus activities, services, and facilities, but instead received an "insufficient alternative" when classes went remote.
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