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WSJ Your Money Briefing

The ‘Sibling Discount’ for College Financial-Aid Is Ending

WSJ Your Money Briefing

The Wall Street Journal

News, Business News

3.81.6K Ratings

🗓️ 25 July 2023

⏱️ 7 minutes

🧾️ Download transcript

Summary

Families with two or more children in college may lose some financial aid under new government rules. WSJ’s Oyin Adedoyin joins host J.R. Whalen to explain how college expenses are likely to change for families. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Join the Wall Street Journal online October 12th for WSJ Pro Sustainable Business Forum

0:05.9

and take away practical advice on how to build a sustainability strategy that's right for your business.

0:11.5

From now until September 21st, you can save 25% on your ticket by registering at WSJ.com

0:18.8

slash Sustainable Business, no code required. That's WSJ.com slash Sustainable Business.

0:25.9

You're sure money briefing for Tuesday, July 25th. I'm JR Whalen for the Wall Street Journal.

0:35.6

The so-called sibling discount that's allowed parents with more than one child in college at the

0:40.1

same time to save some money on tuition is going away. For some families this is really going to

0:46.0

change the financial aid award that they're used to getting every year. They may see a smaller

0:51.9

financial aid package than they've seen in previous years. We'll talk to Wall Street Journal

0:55.8

personal finance reporter Oyan Edadoyan about what this means for families sending students off

1:00.7

to college. That's after the break. Are you curious about the hidden side of everything

1:13.4

that I have the podcast for you? I'm Stephen Dubner, host of Freakonomics Radio. Every week we hear

1:18.9

from some of the world's most fascinating scholars and thinkers as we tackle a variety of topics like

1:24.9

why the best employees can make the worst bosses, why the banana is the most interesting fruit in the

1:31.4

world, and why we dread air travel even though it's a miracle. Go ahead, listen to Freakonomics Radio

1:38.4

wherever you get your podcasts. Parents paying tuition for two or more children in college

1:50.4

could lose some financial aid under new government rules. WSJ personal finance reporter Oyan

1:56.0

Edadoyan joins me. So Oyan, how does it work now if a family has more than one child in college

2:01.8

at the same time? With the current system the information that parents plug into the free

2:07.5

application for federal student aid, also known as the FAFSA, is what's used to determine how much

2:13.2

a family can afford to pay annually. That's the number that the education department calls the

2:18.1

expected family contribution. That number is then divided by the number of siblings that a family

...

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