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Oracle, others probed over college pricing algorithms

On Wednesday, the chairmen of the House and Senate Judiciary Committees sent letters to consulting firms EAB and Ruffalo Noel Levitz, as well as the College Board, Oracle (ORCL), and Ellucian, requesting details about tuition pricing algorithms and the applicant data used to power them. The letters, signed by Representatives Jim Jordan and Scott Fitzgerald and Senators Charles Grassley and Mike Lee, warned that “Colleges that agree to use a common pricing formula or algorithm, or knowingly do so through a third-party company, are likely violating antitrust laws.” Lawmakers are asking the companies to provide descriptions of their products and services, explanations of the purpose and function of any pricing or financial aid algorithms, the types of data used to train them, and the list of higher education institutions that rely on each product or service.

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