University of California Loses $40 Million

Students win breach-of-contract case sparked by tuition hike.

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Because the state Supreme Court Wednesday denied to review a lower court's ruling, the University of California system now owes thousands of former students a total of $40 million in student fees and interest, UCLA's Daily Bruin reports. Eight professional school students in 2003 sued the university after it raised tuition by as much as $3,500 in one year. The students said the school promised to hold its rates steady throughout the program and that raising rates—in some cases after the semester started—was a breach of contract. There is another lawsuit in the works as the university figures out how to pay the plaintiffs in the midst of a $14 billion state deficit. I guess it's what you get when you try to pull one over on law students.