In many states, the typical public university student pursuing an associate’s pays a net tuition of less than $1,000. For-profits, however, can end up costing people more than $12,000, usually taken out in loans that will burden their holders for years.
Source: WaPo – Know More.
If we had a rating system, would it be advisable to adjust the aid packages received by individual students to account for the ratings of the institutions at which they are enrolled?
This is the fundamental problem with the president’s proposal. There is a huge difference between financing institutions based on their performance and adjusting the support for individual students based on the performance of their institutions. As the proposal stands, the penalty for a college that charges its students too much is to take away some of those students’ Pell Grant dollars, making the unfortunate students who enroll there still worse off.
Source: The Chronicle of Higher Education.
President Obama appears to be making good on his vow to propose a “shake-up” for higher education.
Early Thursday, he released a plan that would:
- Create a new rating system for colleges in which they would be evaluated based on various outcomes (such as graduation rates and graduate earnings), on affordability and on access (measures such as the percentage of students receiving Pell Grants).
- Link student aid to these ratings, such that students who enroll at high performing colleges would receive larger Pell Grants and more favorable rates on student loans.
- Create a new program that would give colleges a “bonus” if they enroll large numbers of students eligible for Pell Grants.
- Toughen requirements on students receiving aid. For example, the president said that these rules might require completion of a certain percentage of classes to continue receiving aid.
Source: Inside Higher Ed.
Also read Washington Post’s ‘Everything You Need To Know About The President’s Plan’.