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Current or former students whom the University of Southern California charged late registration fees, late settlement fees or monthly finance charges between July 14, 2016, and March 4, 2026, and who did not receive a full refund or waiver of those fees may be eligible to claim up to $225 from a class action settlement.
USC agreed to pay $2 million to settle a class action lawsuit alleging the university unlawfully and unfairly assessed certain late fees to student accounts. The lawsuit claims these fees violated California law.
Who can file a claim?
The class includes all current or former University of Southern California students whom the university charged one or more late registration fees, late settlement fees or monthly finance charges between July 14, 2016, and March 4, 2026. These individuals must not have received a full refund or waiver of those fees.
Only the enrolled student whom USC assessed the fees is considered a class member. Even if someone else paid the fees on the student’s behalf, only the student is eligible to submit a claim.
How much can class members receive?
Each class member who submits a valid claim may receive a payment equal to 30% of the unwaived and unreimbursed late fees USC charged them during the class period up to a maximum of $225.
The settlement caps the total amount available for class member payments at $2 million. If the total of all approved claims exceeds this amount, the settlement administrator will reduce each payment proportionally so the total does not exceed $2 million.
Additionally, for two years after the settlement becomes effective, USC will waive or decline to assess at least 30% of late fees for all students and pause finance charges for 10 weeks.
How to claim a settlement payout
Class members can submit the online claim form or print and complete the PDF claim form to mail to the settlement administrator. The claim deadline is June 5, 2026.
Settlement administrator’s mailing address: Chaisson v. University of Southern California, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799
Class members who need to update their address or payment information after submitting their claim must notify the settlement administrator.
What proof or documentation is required to submit a claim?
To file the online claim form, class members must log in with the unique ID and PIN from the settlement notice they received. Those who are unable to locate their ID and PIN must contact the settlement administrator by emailing info@USCFeeSettlement.com and providing their full name and mailing address.
Claimants do not need to proactively provide documentation. The claim form requires attestation under penalty of perjury that the claimant is a current or former USC student whom the university assessed late fees during the class period. The settlement administrator will verify claims using USC’s records.
If a claimant believes USC’s records are inaccurate, they can submit a written dispute to the settlement administrator by the claim deadline and provide supporting documentation.
Payout options
- Credit to the class member's USC student account
- PayPal
- Zelle (U.S. bank accounts only)
- Mailed check to the provided address
Class members who have a positive balance on their USC account at the time the administrator processes payments will receive credit to their account regardless of their selected preference.
Settlement fund breakdown
The settlement fund includes:
- Settlement administration costs: Not specified
- Attorneys’ fees and expenses: Up to $1,135,000
- Service awards to class representatives: $4,000 each ($8,000 total)
- Payments to eligible class members: Up to $2 million (not reduced by the above costs)
If any class members do not cash their checks within 90 days or do not complete their electronic payments, the settlement administrator will donate the remaining funds to Scholarship America Inc.
Important dates
- Opt-out deadline: May 4, 2026
- Claim deadline: June 5, 2026
- Final approval hearing: July 1, 2026
When is the Chaisson v. University of Southern California payout date?
The settlement administrator will distribute payments after the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged the University of Southern California unlawfully assessed late registration fees, late settlement fees and monthly finance charges to student accounts in violation of California law. The plaintiffs claimed unlawful penalties and unfair business practices.
USC denied all allegations but agreed to settle to avoid the uncertainty and expense of continued litigation.
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