An elite New York college has agreed to stop charging tuition as soon as it's 'practical'

New York City's Cooper Union has agreed to return to a tuition-free model "as soon as practical," as part of an agreement to settle litigation against the elite college.

The Board of Trustees of Cooper Union entered into the consent agreement with the Committee to Save Cooper Union (CSCU) and the New York State Attorney General on Wednesday.

The agreement ended a lawsuit between CSCU and the Board, as well as the investigation by the attorney general into the school, and put into place stipulations for the college going forward.

Cooper Union landed itself in hot water in 2014 with a controversial decision to start charging students tuition, ending its over-a-century-long mission to offer free school. The decision to start charging tuition was the sum of a number of financial and management misteps.

Cooper Union's endowment is concentrated in a single asset, the land under the Chrysler building. It also relies heavily on the performance of hedge funds that manage its endowment, which have performed poorly after the financial crisis.

The announcement to start charging tuition set off months of infighting and an investigation, by the New York State attorney general, into its controversial decision to start charging tuition. And CSCU filed a lawsuit over the dramatic change in tuition policy.

Cooper Union is located in the East Village neighborhood of Manhattan. It was established in 1859 by Peter Cooper who created the school under the believe that it should be "open and free to all." The school has an endowment of $735 million.

The consent agreement included the following provisions, according to a memo on CSCU's website:

• Cooper Union's Board will work to return Cooper Union to a high-quality, tuition-free model as soon as practical.
• Expansion of the Board to include student trustees (2), additional alumni trustees (2), and faculty and staff representatives (6).
• Appointment of an independent financial monitor who will be responsible for evaluating and reporting on the financial management of Cooper Union.
• Transparent disclosure of Board materials, budget documents, and investment results.
• An inclusive search committee to identify the next full-term president.

Cooper Union confirmed it had reached an agreement to settle litigation, and, in a press release, noted that the consent agreement includes an acknowledgment that Cooper Union is not admitting any wrongdoing.