President Obama unveiled a new plan Thursday designed to shame colleges and universities over rapidly escalating tuition costs, warning the nation is facing “a crisis in terms of college affordability and student debt.”
The president said he has ordered the Department of Education to create a new ranking system that grades universities on their value to students, providing applicants with a clearer idea of which schools give students the best bang for their buck.
He also proposed tying federal aid to the rating system, arguing that the federal government should not subsidize schools “who have higher default rates than graduation rates.”
“It is time to stop subsidizing schools that are not producing good results,” Obama said.
Obama detailed the plan during a speech at the State University of New York Buffalo, the first stop of a two-day, four-city bus tour winding through New York and Pennsylvania that has been billed as a major part of the White House’s summer economic push.