Watch: Obama to address college costs

President Barack Obama will unveil his plan to tackle the skyrocketing costs of college by tying billions of dollars in federal student aid to how well colleges rank on affordability and other measures at a speech at the University of Buffalo Thursday morning.

The rise in college costs has far outpaced growth in middle class wages, especially at public four-year universities, where costs have gone up 250 percent in the past 30 years, according to the College Board. Obama?s plan, which would require authorization from a deeply divided Congress, would tie $150 billion each year in federal student aid to a ratings system the Department of Education will develop by 2015.

Colleges that are more affordable, serve more students from poorer backgrounds and have high graduation rates, among other factors, will be rated higher. Students who go to highly rated colleges would receive more funding in Pell Grants than those who choose to attend schools that are not doing as well. Also, in a change from the status quo, colleges would not receive the full amount of a Pell Grant for a student who drops out.

White House officials told reporters they envision the plan going into effect by 2018. If Congress balks on the aid part of the plan, the White House plans to make the rating system public anyway. ?While Congress has to act to make that happen we think simply providing the information can have an impact in the short term,? said White House domestic policy council director Cecilia Mu?oz. Mu?oz added that she didn?t believe the idea of keeping down college costs was a ?partisan? issue, and noted that Republican governors have supported similar ideas to the president?s plan.

The Education Department already has an interactive ?college scorecard? that ranks colleges on graduate rate and affordability .

College financial aid was a partisan issue in the 2012 election , as both Mitt Romney and Obama tried to court younger voters burdened by student debt.

Source: http://news.yahoo.com/watch-obama-outline-plan-to-stem-skyrocketing-cost-of-college-145608346.html

Jason Kidd