Obama’s Lowdown on Higher Education and Student Loan Debt

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Obama has a tool to help fix all that. He plans to tie federal aid to how well schools perform.

His education secretary, Arne Duncan, proposes that Pell Grants and other government money for higher education be based on how well such institutions [of higher education] perform, such as in holding down tuition, accelerating the time to earn a degree, boosting completion rates, and closing gaps in student achievement.

Too many colleges prefer the status quo, says Mr. Duncan. {snip}

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“Dozens of colleges and universities have either cut or frozen tuition, or provide a four-year graduation guarantee, where the college agrees to cover the cost of the extra time it takes a full-time student to graduate,” Duncan said in a speech last month. He cited many examples of innovation, such as performance-based scholarships, that can help ensure students graduate with “demonstrated competence.”

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