The system would ultimately implement what is being called a “scorecard” for institutions. The scorecard would require universities to come up with a good report to receive an acceptable amount of federal student aid. The grade is decided by average tuition cost, average student debt, grad rates, grad students who received Pell grants, and average earnings for graduates.
The Obama Administration states that tuition cost has increased 250% over the past 30 years. Likewise, average family income has only increased 16%. The average student graduates $26,000 in the debt.
The President says,“Higher education is still the best ticket to upward mobility in America, and if we don’t do something about keeping it within reach, it will create problems for economic mobility for generations to come, and that’s not acceptable.”
More than half of the top 30 fastest growing jobs call for a higher education. Currently, the United States is ranked 9th in the number of what is considered “young adults” in college.
On August 22, President Obama spoke at the University at Buffalo. In his address he stated, “Colleges that keep their tuition down and are providing high quality education are the ones that are going to see their taxpayer funding go up. It is time to stop subsidising schools that are not producing good results and reward schools that deliver for American students and our future.”
Students may be glad to hear that their university may be getting its own report card for a change. However, the debate of the possible scoring system is just starting.
It may be some time before any act of administration will be able to have some control over tuition cost.
Check whitehouse.gov for a copy of the scorecard.