Penn State releases details on COVID restrictions settlement. What to know about payment
Editor’s note: This story was updated on Nov. 22 after additional details were emailed to former students.
Penn State agreed to pay $17 million to settle a lawsuit brought by students and parents after the university shut down in-person learning at the beginning of the coronavirus pandemic.
If the settlement gains approval from a federal judge, tens of thousands of former students would be eligible for a portion of the historic agreement. The final approval hearing is scheduled for Feb. 18.
Here’s what you need to know about the proposal.
Am I eligible?
Eligible recipients include all Penn State students enrolled during the spring 2020 semester who paid tuition and/or fees and were registered for at least one in-person class at the beginning of the semester. That includes students who attended University Park and all commonwealth campuses.
Eligible members do not have to do anything to receive a payment.
How much is the payment?
The total value of the proposed settlement is $17 million, but that number will dwindle by the time the money is split among former students.
Attorneys for the former students and parents who brought the lawsuit could apply to receive upward of one-third of the settlement, dropping the number for members to about $11.34 million.
Taxes, fees, litigation costs, contribution awards and expenses for the settlement administrator would further reduce the amount that would be split among an estimated 72,000 people. Those eligible could expect to receive about $155 before taxes and other costs.
How do I get a payment?
Payments will be sent automatically to your last known permanent postal address on file with Penn State. Members would also have the option to update their address online or elect to receive the payment via Venmo or PayPal.
Changes can be made at pennstatetuitionrefundsettlement.com. They must be completed within 45 days of the settlement being finalized, likely by the end of March or early April.
What happens if I accept the payment?
By participating in the settlement, members would give up their right to bring any claim covered by the settlement, including those related to Penn State’s transition to remote learning.
Do I have any other options?
Members would be able to opt out and object the proposed settlement if they believe it is not fair, adequate or reasonable. Opt-out requests must be mailed and postmarked no later than Jan. 6. Detailed information can be found on the settlement website.
If you take this route, you would not receive a payment.
What happens next?
Attorneys asked U.S. District Judge Robert J. Colville to grant preliminary approval to the proposed settlement. The final approval hearing is scheduled for Feb. 18.
If the settlement is OK’d, Penn State would have to pay $17 million into an escrow account within 20 business days. Payments would be sent within 60 days.
Members would have 180 days to cash their checks. If uncashed checks total less than $500,000, the money would be designated to a scholarship fund for Penn State students.
If the uncashed checks total more than $500,000, the money would be redistributed upward of two more times to those who cashed their checks.
Other questions? Here’s where to look for answers
Answers to 25 FAQs can be found on the settlement website. Attorneys who negotiated the proposed settlement can also be reached at 412-322-9243, 646-837-7150 or 843-614-8888.
The settlement administrator can be reached by phone at 888-884-4079 or by sending an email to info@PennStateTuitionRefundSettlement.com.
A notice sent Nov. 22 to at least some former students said questions should not be directed to Penn State or the court that is presiding over the lawsuit.
Have other colleges and universities been sued?
There were about 300 such lawsuits as of August 2023, according to Times Higher Education, which USA Today described as a British publication that partners with The Wall Street Journal on rankings and evaluations of U.S. schools.
Here is a look at some similar cases against other schools.
University of Colorado: Final approval granted for $5 million settlement
University of Chicago: Final approval granted for $4.95 million settlement
University of Pennsylvania: Final approval granted for $4.5 million settlement
Cornell University: Final approval granted for $3 million settlement
The New School: Final approval pending for $3 million settlement
Point Park University: Final approval granted for $1.25 million settlement
Saint Joseph’s University: Preliminary approval granted for $1.15 million settlement
Lebanon Valley College: Preliminary approval granted for $1.15 million settlement
Bucknell University: Preliminary approval granted for $1.15 million settlement
Gannon University: Final approval granted for $1.1 million settlement
La Salle University: Preliminary approval granted for $875,000 settlement
This story was originally published September 4, 2024 at 4:15 PM.