President Barack Obama wants a new government rating system for colleges that would distribute federal financial aid based on a school's affordability and performance.
"It's time to stop subsidizing schools that are not producing good results and reward schools that deliver American students of our future," Obama said Wednesday, speaking from the University of Buffalo.
RATING SYSTEM CRITERIA
The new college rating system, which the president would like to see implemented by the 2015 academic year, would evaluate colleges on the following criteria:
- Average tuition
- Average student loan debt
- Graduation rates
- Average earnings of graduates
President Obama is pushing for Congress to act on a bill that would link the college rating system to federal financial aid, giving larger grants and more affordable to students at highly-rated.
REWARDING GOOD STUDENTS
The Obama administration would also like to put an end to lump sum disbursements of student loans, instead requiring colleges to give the money to students as they face expenses throughout the semester. The goal of this change is to prevent the wasting of grant money to students who drop out.
STUDENT LOAN DEBT IN MINNESOTA
Americans now owe more in tuition debt than credit card debt, and the Project on Student Debt estimates the average debt for students graduating from Minnesota universities is $29,793, the third-highest in the nation. Minnesota's proportion of students with debt is at 71 percent, ranked fifth in the nation.
The Associated Press contributed to this report