College students who attended Penn State during the spring 2020 semester are now eligible to grab their share of a massive $17 million settlement, and yes, it’s real money.
After a class action lawsuit claimed the university failed to refund tuition and student fees when classes went fully remote during the COVID-19 pandemic, Penn State has agreed to pay out big, even while denying any wrongdoing. And if you were enrolled back then, you could be looking at a payout of $155 or more.
The Penn State $17 million settlement stems from a lawsuit filed by students Benjamin Ramey, Jeffrey Binet, and Tyler Thomson, who alleged the school violated contracts and engaged in unjust enrichment by charging full tuition and student fees for a semester that was suddenly moved online. They argued that services and facilities, like recreation centers and campus life support, weren’t accessible, yet students were still charged the mandatory “Student Initiated Fee,” which ranged from $27 to $218 depending on campus.
The settlement covers students from all commonwealth campuses and branch locations, and applies to anyone who was enrolled in at least one in-person class during Spring 2020 and paid tuition and/or fees. The lawsuit, titled Ramey et al. v. The Pennsylvania State University, was granted final approval on February 18, 2025, with the judge calling the agreement “fair, reasonable, and adequate.”
If you opted in to the settlement, you’ll receive approximately $155. Students who withdrew for medical reasons during the semester will receive $50. Payments began rolling out in June 2025. So if you were a Penn State student when the pandemic turned everything upside down, your slice of the settlement might already be on the way, or it’s time to check your eligibility.
Here’s a quick look at who qualifies and what they’ll get:
| Student Type | Payment Amount |
|---|---|
| Enrolled Spring 2020 & opted in | $155 |
| Withdrew for medical reasons during semester | $50 |
The case doesn’t end with just the payout. Even though Penn State agreed to the settlement, they made it clear they didn’t admit to any fault. In court documents, the university stated it “denies any liability or culpability in this matter.” Still, that didn’t stop them from writing the check to settle the claims and put the case behind them.
This is part of a bigger trend, universities across the U.S. are facing pressure to refund students who were stuck paying in-person prices for online classes during lockdowns. It’s become a growing legal movement since many schools kept charging for access to services students couldn’t use.
The final approval by the United States District Court for the Western District of Pennsylvania marks a win for students who felt financially short-changed during an already stressful time. While some students are receiving smaller payments, the symbolic value of the case is big: schools can be held accountable for how they treated students during the pandemic.
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