College students to get chunk of $17 million settlement if they were affected by pandemic – see who gets the pay out

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COLLEGE students can grab a slice of a $17 million settlement if their tuition was hit by the Covid pandemic.

Here's who can claim money following the class action in Pennsylvania.

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Penn State students who were enrolled in classes at the start of the Covid pandemic back in 2020 will receive part of a $17 million class action settlement[/caption]
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Penn State denied any wrongdoing, but agreed to settle for $17 million to resolve the case[/caption]

Penn State agreed last November to a $17 million settlement in relation to Covid online learning, reported WPSU Pennsylvania at the time.

Students who opted in to the settlement will get about $155.

Those who temporarily withdrew for medical reasons will receive payments of $50.

Penn State students who were enrolled during the spring 2020 semester could be eligible for either payment after classes were shifted online in March that year.

Universities across the United States are paying students back for the shift to online learning during the pandemic.

In Pennsylvania, those who were enrolled in classes at the start of the pandemic should now receive a slice of the settlement, said the ABC’s WPVI-TV.

The United States District Court for the Western District of Pennsylvania granted final approval on February 18, 2025.

The judges said the settlement was “fair, reasonable, and adequate.”

According to the court-approved settlement website, “If you were a student enrolled at Penn State during the Spring 2020 semester and paid tuition and/or fees to attend at least one in-person class, then you are part of the proposed… settlement… affected by this lawsuit.”

This includes “all commonwealth campuses and branch locations,” it added.

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    Court documents show the class action was lodged by several students – plaintiffs – who filed the lawsuit against Penn State: Benjamin Ramey, Jeffrey Binet, and Tyler Thomson.

    They alleged “claims of breach of contract and unjust enrichment.”

    The trio argued that the university did not reimburse any tuition or the mandated "Student Initiated Fee."

    More on the $17 million Penn State Covid-19 pandemic settlement

    Penn State agrees to $17 million settlement

    The class action being settled is Ramey et al. v. The Pennsylvania State University.

    Benjamin Ramey, Jeffrey Binet, and Tyler Thomson brought this action while acting on behalf of fellow students who paid tuition and/or fees for the Spring 2020 semester at Penn State.

    Their class action alleged claims of breach of contract and unjust enrichment.

    Penn State denied any wrongdoing, but agreed to settle for $17 million to resolve the case.

    Students who opted in to the settlement will be paid about $155.

    Those who temporarily withdrew for medical reasons will get $50.

    Payments started in June 2025.

    Source: Settlement website

    This fee helps support recreation and fitness facilities at campuses, along with other student life improvements.

    But the plaintiffs said these were not available during the online semester.

    The fees ranged from $27 to $218, depending on the campus.

    In the court documents, Penn State denied “any wrongdoing.”

    “Penn State denies any liability or culpability in this matter.”

    It agreed to settle for $17 million to resolve the case.

    Students’ payment will be automatically sent to their last known permanent address on file with the university.

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