State policymakers should confront increasing public concern about the rising costs of postsecondary education, to preserve institutions' credibility and avoid damage by excessive political reaction. Attention to this issue has focused on extremes, obscuring the fact that only a small proportion of students attend extremely costly colleges. National policymakers and those who influence public perceptions have not focused on the significant difference in pricing between the public and private sectors, nor on the fact that the states decide what portion of the cost of operating their institutions will be funded by general tax revenues and what portion by user taxes (tuition and fees). The debate has also not differentiated between the published price and the amount students and their families actually pay, taking into consideration student financial aid and tuition waivers. State higher education agencies should recognize that increases in the net price are a legitimate concern. The adequacy of financial aid is also a major issue. The federal government is a major student aid provider and states should analyze the effect of both state and federal policy changes on their citizens. State higher education agencies should assess cost increases in state-supported systems continuously, identifying, monitoring, and controlling increases where possible. (MSE)