Can I Take Legal Action If My School Misrepresents The Cost Of Education And I Was Not Aware Of Hidden Fees?

If your school misrepresents the true cost of education by failing to disclose hidden fees or costs that were not made clear during enrollment, you may have legal grounds to take action. Here’s what you can do:

• Review Enrollment Agreement and Financial Documents: Start by reviewing the enrollment agreement, tuition billing statements, and other official documents provided by the school. Schools are typically required to disclose all fees associated with the cost of education. If hidden fees were not disclosed or were presented in a misleading manner, this could be a violation of consumer protection laws or breach of contract.
• Document the Hidden Fees: Gather evidence of the hidden fees, including:
  • Billing Statements: Identify the additional charges or fees that were not initially disclosed.
  • Communication with the School: If you were told certain costs would not apply or were not informed about fees until after enrollment, document this in writing.
  • Marketing Materials: Compare the school's marketing materials or website with the actual fees charged. If the materials downplayed or ignored these fees, it strengthens your case.
• Contact the School for Clarification: Contact the school’s financial aid office or billing department to ask for a breakdown of all fees and to clarify any hidden or undisclosed charges. This gives the school an opportunity to explain the fees, and in some cases, they may be willing to adjust the charges or offer a refund if they realize they have misrepresented costs.
• File a Formal Complaint with the School: If you are not satisfied with the response from the school, you can file a formal complaint. Most institutions have a grievance process for students to address billing issues, misrepresentation, or financial disputes. Be sure to include the evidence you have gathered to support your claim.
• Check Consumer Protection Laws: Misrepresentation of fees, including failing to disclose hidden costs, could violate consumer protection laws. In many jurisdictions, educational institutions are required to provide clear and accurate information about costs to students before enrollment. If the school’s actions are deemed to be deceptive, you may have grounds to file a complaint with a consumer protection agency, such as:
  • State or Federal Consumer Protection Offices: In some regions, misrepresentation of costs could result in fines or other penalties for the institution.
  • Attorney General's Office: You may also be able to file a complaint with the state’s Attorney General’s office if the misrepresentation falls under unfair or deceptive trade practices.
• Pursue Legal Action for Breach of Contract: If the school’s actions amounted to a breach of contract—for example, by not honoring the terms of the financial agreement or failing to disclose all fees—you may be able to pursue legal action. A breach of contract claim could argue that the school misrepresented the total cost of education or failed to provide the agreed-upon services for the agreed-upon price.
  • You would need to demonstrate:
    • There was a contract (the enrollment agreement or terms of tuition) between you and the institution.
    • The contract was violated by the failure to disclose the fees.
    • You suffered financial harm or damages as a result of the misrepresentation.
• Consult an Attorney: To understand your legal options fully, it's advisable to consult a lawyer who specializes in education law or consumer protection. They can help you determine if you have a valid case, guide you through the process of filing a complaint, and assist in pursuing legal action, if appropriate. The lawyer may also help you determine whether you can claim a refund or other forms of compensation for the hidden fees.
• Consider a Class Action Lawsuit: If other students were also affected by hidden fees, you may want to consider a class action lawsuit. This allows multiple students to combine their claims against the institution for misrepresenting costs. Class actions can be an effective way to hold an institution accountable for widespread issues like undisclosed fees.
• Public Awareness: Raising awareness of the issue through social media or student organizations might also pressure the school to address the issue and offer compensation or policy changes. Sometimes public scrutiny encourages institutions to resolve issues more quickly to avoid reputational damage.

Example

A student enrolls in a graduate program that promises a fixed tuition rate. However, halfway through the semester, the student is charged additional fees for administrative costs and student activities, which were not mentioned during enrollment. After reviewing the program’s brochures and website, the student finds that these fees were buried in fine print, and the total cost exceeds the advertised amount. The student files a formal complaint with the university and, after no resolution, contacts a consumer protection agency. Later, the student consults with a lawyer and pursues a breach of contract claim for financial harm caused by the undisclosed fees.