WSJ What’s News – Episode Summary

Episode: How the Rising Cost of College Is Changing Families’ Calculus
Date: August 24, 2025
Host: Sabrina Siddiqui
Guests: Sandra Kilhoff (Supervising Producer), Oyen Adityan (WSJ Reporter)

Overview – Main Theme

This episode discusses how the escalating cost of college is forcing American families to reconsider how, where, and if they pay for higher education in 2025. Through the story of one California family, the Wall Street Journal’s reporting explores both personal and national trends in college selection, financial aid appeals, and the tough financial trade-offs driving decision-making for students and parents.

Key Discussion Points & Insights

1. The Scope and Scale of the College Cost Crisis

• Enrollment & Costs:
  • Around 18 million students enrolled in U.S. colleges in spring 2025—up 3.2% from the prior year.
  • Sticker prices keep climbing: college tuition fees rose 4.7% from 2020 to 2023 (01:26).

“Millions of students are in the pool a year, the cost is only seen to be rising and it's only seen to be getting more competitive and more high stakes.”
— Oyen Adityan (01:54)

• Drivers of Cost:
  • Administrative costs and decreased state/federal funding fuel tuition hikes.
  • Political factors—like the Trump administration’s funding and priority decisions—impact institutional finances (02:26).

2. The Complexity of Financial Aid and Net Price

• Sticker vs. Net Price:
  • Families face confusion distinguishing between publicly posted tuition (sticker price) and the net price after aid and scholarships (02:46).
  • Appeal and negotiation with colleges are increasingly routine parts of the process.

“That particular equation...is what vexes families and students the most.”
— Oyen Adityan (03:25)

3. Case Study – One Family’s College Calculus

• Early Preparation:
  • Families now start saving and strategizing earlier—sometimes as early as middle school—via 529 accounts and hiring specialized counselors (03:51).
• The Story of Anna Sophia:
  • Anna Sophia, an ambitious high school graduate from California, applied to 20 colleges, including prestigious institutions (04:00).
  • Despite diligent saving, her top choices brought daunting costs.

“She had this list of 20 colleges that she decided to apply to, and among those colleges included Boston College, Boston University, Cornell, Harvard, big name institutions that we've all heard of.”
— Oyen Adityan (04:15)

4. Navigating Family Dreams vs. Realistic Budgets

• Parental Perspective:
  • Immigrant parents unfamiliar with U.S. college norms find it difficult to balance multiple children’s ambitions.
  • Use of college counselors to bridge knowledge gaps and map out a feasible plan (05:17).

5. The Acceptance and Appeal Process

• Admission Results:
  • Anna Sophia was accepted to 13 schools; her dream was Brown University (07:11).
  • Brown at first offered no scholarship. Other offers from prestigious schools included aid.
  • Anna Sophia, following peer advice, appealed to Brown using competing offers as leverage.

“She spoke with a student...that student encouraged her to appeal her financial aid award at Brown and...say to this school, hey, you know, you’re my dream institution...Is there anything we can do?”
— Oyen Adityan (07:23)

6. Institutional Responses to Cost Pressures

• Colleges’ Role in Affordability:
  • Sticker price is up, but average net price is declining as colleges compete for students by increasing aid (08:26).
  • Schools are increasingly responsive to appeals to keep admits from “talent poaching.”

“They get an appeal from a student and they look back at their numbers and see if there's any way that they can make themselves more competitive.”
— Oyen Adityan (08:41)

7. The Ongoing Cost Burden

• Even With Aid, Gaps Persist:
  • Brown’s tuition is over $70,000/year; Anna Sophia won more aid through appeals but still requires campus jobs, additional scholarships, and planning for future law school expenses (09:36).
  • She is prepared for summer work, internships, and scholarship applications throughout school.

“It’s not just tuition and fees and room and board, but you also have to pay for clothes and books and other costs that come up.”
— Oyen Adityan (10:14)

8. Shifting Trends and Harder Choices Nationwide

• Broader Shift:
  • College advisor Greg Kaplan notes more families choosing affordable state schools over elite institutions due to cost (10:53).
  • Data: Families’ annual spending on college is up 9% to $13,837; 82% will stretch financially for the best opportunity, but 79% have ruled out schools based on cost (11:19).

“He was seeing more families forego acceptances from quote, unquote, elite institutions in favor of a more affordable institution like a state school.”
— Oyen Adityan (11:04)

“Families felt like college is still viewed as a worthwhile investment, but they are extremely cost conscious.”
— Oyen Adityan (11:30)

Notable Quotes & Memorable Moments

• “That particular equation, I think, is what vexes families and students the most.”
  — Oyen Adityan (03:25)
• “She had this list of 20 colleges…big name institutions that we’ve all heard of.”
  — Oyen Adityan (04:15)
• “If a school offers a student enrollment…they want that student to say yes and they don’t want that talent to go to another institution.”
  — Oyen Adityan (08:59)
• “Families felt like college is still viewed as a worthwhile investment, but they are extremely cost conscious.”
  — Oyen Adityan (11:30)

Key Timestamps for Important Segments

• [01:26] – Size and cost of the U.S. college market
• [02:26] – Political and funding influences
• [03:51] – Preparing for college: early financial planning
• [04:00] – Anna Sophia’s college journey
• [07:23] – Financial aid appeals and negotiation
• [08:26] – Colleges compete to lower net price
• [09:36] – Family strategies for funding remaining gaps
• [10:53] – Trend: students choosing affordability over prestige
• [11:19] – Supporting survey data on shifting family priorities

Takeaways

• The sky-high and rising price of college is fundamentally reshaping family decisions, not just which school to choose, but also how to pay—and whether dreams should be prioritized over debt.
• Real-world financial aid outcomes are more nuanced and negotiable than many families realize, but even after appeals and discounts, costs can remain overwhelming.
• There is growing evidence that families, more cost-conscious than ever, are increasingly choosing affordability over elite credentials—a shift supported by both advisors’ observations and national survey data.