Krueger, an 18-year-old freshman, drank himself to death at a party hosted by the Phi Gamma Delta fraternity. He had a blood-alcohol level of more than five times the legal driving limit and died from acute alcohol poisoning.

The agreement requires MIT to contribute $1.25 million for scholarships to be established by Krueger's parents. In addition, a letter of apology from MIT President Charles Vest to Krueger's parents was made public.

"Despite your trust in MIT, things went terribly awry. At a very personal level, I feel that we at MIT failed you and Scott. For this you have our profound apology," the letter stated. "The death of Scott as a freshman living in an MIT fraternity shows that our approach to alcohol education and policy and our freshman housing options were inadequate. I am deeply sorry for this."

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