Obama announces plan to revamp aid
President Barack Obama introduced a plan on Thursday, Aug. 22 to tie the disbursement of financial aid to a ratings system.
The system would include judging colleges based on their financial value and the ratings would be in place by 2015.
In 2018 it would determine the amount of federal student aid.
“At this point, this proposal consists of broad ideas without the specific details that will define the actual potential of the proposals,” Director of Financial Aid David Horne said. “There is a great deal of agreement on the problems with our current higher education financing system, but much less agreement on the appropriate solutions.”
Junior Mackenzie Hudson said she thinks that there should be more considerations in what the specific colleges actually need for spending.
“It depends on what the college is spending on,” she said. “So if the college can spend efficiently I don’t think he should take federal aid away from those schools.”
Obama has been on a two-day bus tour to various colleges across the country.
“Over the past three decades, past 30 years, the average tuition at a public four-year college has risen by more than 250 percent,” he said in Scranton, Pa. according to a White House Press Release. “So it didn’t just double. It went up 250 percent. The typical family income has only gone up 16 percent … The average student who borrows for college now graduates owing more than $26,000, but a lot of folks will owe a lot more than that.”
This plan is meant to be an incentive for colleges to watch their spending.
There are concerns that this would limit students who chose more expensive universities, such as private colleges.
“To succeed, these proposals will need to overcome many difficult political, financial, procedural, and philosophical challenges,” Horne said.