Headlines in Higher Ed: Week of August 11th, 2025
Students passing up financial aid, UCLA under fed scrutiny, and Trump orders colleges to disclose race data
College Costs Up, But Many Missing Financial Aid Opportunities
According to a recent survey by Sallie Mae and Ipsos, families spent an average of $30,837 on college last year, a 9% jump from the year before. While this rise in costs is concerning, the survey also revealed that many students and families are not fully utilizing available financial aid options. Around 40% of families didn’t even search for scholarships, either because they were unaware or didn’t think they were eligible. Meanwhile, only 55% of high school seniors in the class of 2025 submitted FAFSA applications, the federal form that unlocks most financial aid.
Bill DeBaun, Senior Director of Data at National College Attainment Network
Students gave a range of reasons for skipping on FAFSA: some thought they didn’t need aid, some feared taking on loans, and others found the process too complicated. But nearly half who didn’t apply said they just didn’t think they’d qualify, even among students from low-income backgrounds. Last year’s botched FAFSA rollout likely made things worse, but submissions have partly recovered, up 15.7% with this year’s improved form. Still, millions of students are missing out. And with 79% of families reporting to have cut colleges from their list based on cost alone, many may not realize that financial aid could have made those schools within reach.
Rapid Recap
⚖️ Lawsuit Claims Elite Colleges Collude On Early Admissions to Inflate Costs Accusing 32 colleges of using early decision admissions to limit financial aid options and keep prices high, the lawsuit claims the system gives wealthier students an unfair edge and violates antitrust laws.
📉 College Payoff Shrinking for Low-Income Students College used to help low-income students move up as much as wealthier ones, but a new report says unequal access to top schools and high-paying majors means that’s no longer true.
🚫 Oklahoma Quits In-State Rates for Undocumented Agreeing to a DOJ lawsuit to end the practice, Oklahoma becomes the second state to comply, after Texas.
🕵️♂️ Lawmakers Seek to Investigate Harvard If Trump Deal Reached A group of Congressional Democrats, who also attended Harvard, say they’ll launch an investigation if the university agrees to a rumored $500 million settlement.
🐻 UCLA Pressured to Negotiate, Trump Demands $1B+ The University of California, Los Angeles is under intense federal pressure, facing calls by the Trump administration to settle over its handling of pro-Palestinian protests and alleged antisemitism on campus. Go on…
UCLA Pressured to Negotiate, Trump Demands $1B+
The Department of Justice (DOJ) and other federal agencies say UCLA failed to protect Jewish and Israeli students during a 2024 encampment, leading to the suspension of $584 million in research funding. UC President James Milliken stated that the proposed payment would “devastate our country’s greatest public university system” and harm both students and Californians. The DOJ is also seeking a $172 million fund for victims of civil rights violations. While UCLA has already banned future encampments and launched new antisemitism initiatives, it has agreed to open negotiations with federal officials to avoid a lawsuit. If a deal is reached, UCLA would become the first public university to settle with the Trump administration, following earlier agreements with Columbia and Brown.
Race, Data, and Admissions: Trump’s New College Directive
President Trump has ordered all federally funded colleges and universities to submit detailed admissions data including race, gender, GPA, test scores, and other qualifications of applicants, admitted students, and enrollees. Previously, schools only had to report race data for enrolled students; now, they must provide a full breakdown starting with this upcoming school year. The Education Department, under Secretary Linda McMahon, will audit data for accuracy and penalize schools for incomplete or late submissions. The memo argues this move promotes fairness and meritocracy, but critics say it’s designed to intimidate colleges into reducing the enrollment of students of color. The vague language and unclear enforcement plans have raised questions, especially since the department’s data team has been significantly downsized, leaving just a few staff to handle the expanded workload.
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