Kendra Velzen, who suffers from severe depression and uses a pacemaker, petitioned Grand Valley State University, Michigan, to allow her to keep a pet guinea pig in her dorm room in 2011.
The university granted Velzen permission to keep the animal in the pet-free dorm, but imposed several stipulations about where she could take it on campus.
Under the terms of the agreement, Velzen could not bring the animal to class, to common areas of the building, or to food-service areas.
Unhappy with these conditions, 28-year-old Velzen sued the school for failing to provide reasonable accommodations for her disabilities under federal housing laws.
To avoid a costly lawsuit, GVSU has reached a settlement with Velzen, who was supported in her claim by the Fair Housing Center of West Michigan.
According to the MLive website, Velzen will receive $40,000.
“The parties’ decision to enter into this agreement represents a compromise of disputed claims and creates the framework for the parties to move forward without the disruption and cost of litigation,” the settlement reads.
Meanwhile, GVSU has denied all allegations that the university or staff “acted wrongly or failed to act in any way with regard to Kendra Velzen.”
The school has also said that if Velzen ever reapplies for on-campus housing with her pet, GVSU will willingly grant the request.
The guinea pig was unavailable for comment.