Obama announces plan for higher education funding

President Barack Obama announced plans today to tie federal funding to a college’s performance and affordability, among other reforms aimed at decreasing student debt and increasing college enrollment.

Obama said that the U.S. Department of Education will develop a new rating system for colleges that will rank colleges on how many students graduate on time and how affordable a college is, among other factors.

The new rating system will help determine how much federal money is distributed to universities. It is expected to be complete before the 2015 school year, Obama added.

“It is time to stop subsidizing schools that are not producing good results and reward schools that deliver for American students in our future,” he said to a roaring crowd of college students at the University of Buffalo.

University of California President Mark Yudof applauded Obama’s new reforms.

“We have embraced making public higher education more accountable and affordable,” Yudof said in a statement. “… Yet there is always more that can be done to ensure transparency and access, and we look forward to working with the Obama Administration toward achievement of shared goals.”

In his speech this morning, Obama also said that students receiving federal financial aid will now be expected to finish their courses on time, though there will be some flexibility for disadvantaged students and students with jobs.

Obama also said he does not think state funding should be allocated based on student enrollments, but on a college’s performance and ability to keep education affordable.

Compiled by Kristen Taketa, Bruin senior staff.