Obama Proposes College-Aid Changes

Laura Meckler:

Seeking to control spiraling college costs, President Barack Obama is proposing tying federal student aid to universities' tuition rates and the value they provide graduates.

The plan would affect three programs that provide institutions with student aid--Supplemental Education Opportunity Grants, Perkins Loans and Work Study. Under the current formula, schools with the highest tuitions get the most money, because the programs help fill the gap between what students can afford and what they are charged.

Mr. Obama would change that by rewriting the formula so that schools that keep tuition down and that provide "good value" would be rewarded with more money. The White House didn't say what would constitute good value but said the new formula would include measures such as graduation rates; that's in contrast to the current formula, which rewards longevity in the program.

Posted by Jim Zellmer at January 31, 2012 1:44 AM
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