Linking student aid to new ratings of colleges

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’.