Students and alumni clash at an Indiana university over $25,000 in tuition and fees they say were not covered by the university.
The University of Indiana says it was unaware of the problem until the Associated Press reported it on Tuesday.
It said it is “working with the students and the administration to identify and resolve the issues and provide refunds.”
The Associated Press said it had filed a complaint with the university’s financial watchdog about the problem.
In a statement, the university said it “has already initiated an internal review of the situation” and that it would “work with the student and the student-faculty association to determine how best to address the situation”.
“We are committed to maintaining a strong relationship with the Indiana University community and are working closely with the campus community to ensure a smooth transition,” it said.
Earlier this month, the University of South Carolina announced it would pay $50.5m to settle a lawsuit alleging the school had failed to cover tuition and other fees, as well as other costs related to a lawsuit over the school’s decision to end an investigation into sexual assault at its football team.
In October, the US Supreme Court ruled that states cannot block federal aid from going to institutions where they believe they are discriminating against students, including colleges and universities.
The Associated College Fund (ACF) and the National Association of College and University Business Officers (NACUPO) said in a statement on Tuesday that the US Department of Education should review the issue.
The American Association of University Professors, which represents more than 1,000 faculty, said the case “highlights the need for the Department of Justice to hold universities accountable for ensuring that all students receive fair and equal access to higher education”.
“While the Department should investigate the situation as soon as possible, it should also act to prevent future situations in which colleges or universities provide a misleading, inadequate or insufficiently affordable education,” it added.