Cost of Inaction: The Financial Impact of Campus Incidents
Campus incidents carry a cost far beyond the immediate harm to students. Sexual assault, hazing, and harassment can affect student retention, institutional reputation, legal exposure, and regulatory compliance.
Research has shown that campus sexual violence can have significant consequences for students’ academic trajectories. One in three college student survivors does not finish college, and two-thirds report negative impacts on academic goals.1 Colleges do best when their students thrive. High attrition rates can lead to lost tuition revenue, lower enrollment and retention, disruption to operations, and potential damage to institutional reputation.
Sexual assault lawsuits can also be costly for colleges. Mismanagement or negligence regarding Title IX violation reports, inappropriate staff conduct, or concealment of reports put a college at risk for lawsuits. While some sexual-assault-related cases have resulted in settlements or judgments reaching hundreds of millions of dollars, these are exceptional cases.2,3 However, even litigation that does not result in such an outcome can impose substantial costs on an institution. For example, the average cost of a sexual assault lawsuit that involves litigation is $350,000.4
There are also significant direct financial costs associated with Clery Act noncompliance. Poor compliance could include administrative gaps, inaccurate statistics, late reports, or practices that discourage the reporting of crimes. The maximum fine for a Clery Act violation, as updated in 2025, is $71,545, but multiple violations can result in fine accumulation.5 One instance of Clery Act noncompliance at Liberty University in 2024 resulted in a record-breaking $14 million fine.6 Since the Stop Campus Hazing Act went into effect in 2025, colleges have had to meet additional requirements and bolster prevention initiatives and reporting avenues to combat campus hazing and remain Clery Act compliant.
These numbers demonstrate the risk of inaction and complacency. Colleges can take action by prioritizing accessible prevention and reporting tools, such as uSafeUS®, as well as student education, prevention programming, and appropriately staffed Title IX and campus safety offices. These investments can help institutions identify concerns earlier, strengthen compliance, improve institutional response, and potentially reduce legal and regulatory exposure.
For colleges, investing in prevention and response is about more than compliance. It is an investment in student persistence, institutional trust, and long-term stability. The cost of building effective reporting, prevention, and support systems is tangible–but so is the cost of failing to do so.
Resources
1. Potter et al. (2018). Long-Term Impacts of College Sexual Assault on Women Survivors’ Educational and Career Attainments. American Journal of College Health, 66, 496-507.
2. USC (n.d.). FAQ Regarding George Tyndall Global Settlement in State Court.
3. MSU Today (2018, December 4) MSU Makes $500 Million Settlement Payment to Survivor Fund.
4. Tate, E. (2017, April 5). The High (Dollar) Cost of Sexual Assault. Inside Higher Ed.
5. Federal Register. (2025). Adjustment of Civil Monetary Penalties for Inflation.
6. Nadworny, E. (2024). Liberty University Fined $14 Million for Federal Crime Reporting Violations. NPR.