$17 Million Penn State Class Action Settlement Resolves COVID-19 Tuition Refund Lawsuit

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A $17 million settlement has been reached between The Pennsylvania State University and students who claimed in a proposed class action lawsuit that they were owed refunds for the Spring 2020 semester after the school transitioned to online learning during the COVID-19 pandemic.

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An official website for the deal can be found at PennStateTuitionRefundSettlement.com.

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.

Class members do not need to do anything to receive a Penn State settlement payout. Checks will be automatically sent to their last known permanent postal address on file with Penn State within the next 60 days or so.

Head to this page to update your address or select your preferred payment method. You’ll be asked to provide the unique ID and PIN found in the settlement notice you should have received via email or mail. Contact the settlement administrator via email if you have not received or lost your notice.

Related Reading: Student Claims Penn State University Owes Refunds for COVID-19-Shortened Semester

According to the settlement site, covered individuals who withdrew for medical reasons from Penn State after March 16, 2020, but before the conclusion of the Spring 2020 semester, and received a refund of tuition will get $50.

The remainder of the settlement fund, after certain administrative expenses, attorneys’ fees and awards are paid, will be distributed equally to all other class members.

The $17 million settlement—which was granted final approval by the court on February 18, 2025—marks the largest COVID-19 tuition recovery to date, the plaintiffs’ attorneys say. The Penn State lawsuit was just one in a slew of class actions filed against colleges and universities by students seeking refunds over COVID-19-related closures.

According to the plaintiffs’ second amended complaint, Penn State students paid for an in-person educational experience with access to campus activities, services and facilities. Instead, they received an “insufficient alternative” when classes went remote, the case alleged. The plaintiffs claimed that the university’s failure to provide the services that tuition and fees were intended to cover constituted a breach of contract.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.