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Obama's plan to lower the cost of college, rating
Posted: Aug 22, 2013
From the Wall Street Journal
By Colleen McCain Nelson
President Barack Obama on Thursday will announce proposals aimed at combating rising college costs by creating a new ratings system and eventually tying federal student aid to institutions’ performance.
- Getty Images
The president will call for rating colleges before the 2015 school year on measures such as affordability and outcomes, including graduation and transfer rates.
Once that system is in place, Mr. Obama will ask Congress to allocate financial aid based on those ratings by 2018. Students at top-performing colleges could receive larger federal grants and more affordable student loans. The plan is expected to spur pushback from some colleges.
Mr. Obama also will urge innovation in higher education, encouraging colleges to pursue ideas including three-year accelerated degrees and massive open online courses. The president will return to some familiar ideas as well, calling for an expansion of his pay-as-you-earn program that caps student loan payments at 10% of monthly income and re-upping his funding requests for the Race to the Top program, which is focused on state higher education reforms.
The president will lay out his plan on a two-day bus tour that will wind through New York and into Pennsylvania. His first stop Thursday will take him to the University at Buffalo, with a speech planned later in the day in Syracuse.
The president’s college affordability plan is the latest in a wide-ranging series of proposals that the administration has dubbed “a better bargain for the middle class.”
Mr. Obama has said that making college affordable is a “personal mission,” as he’s pledged to shake up the current system. Tuition increases have far outpaced inflation in recent years. Incomes of middle-class families have not kept pace with the rising cost of college, resulting in a jump in student borrowing.
On Tuesday, the Education Department released a report showing that in 2011-12, 57% of undergraduates used federal student aid to help pay for college, up from 47% in 2007-08."
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