Obama’s Aid Proposals Could Use a Reality Check

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.