For those wondering if their cries for a better higher education system are being heard: Wonder no longer.
In his State of the Union address last month, President Obama called upon institutions of higher education to work together to both help the economy and to encourage enrollment by keeping tuition costs low. Shortly after, the White House issued a statement explaining the actions to be taken.
For those wondering if their cries for a better higher education system are being heard: Wonder no longer.
In his State of the Union address last month, President Obama called upon institutions of higher education to work together to both help the economy and to encourage enrollment by keeping tuition costs low. Shortly after, the White House issued a statement explaining the actions to be taken.
In addition to reforming financial aid for students, Obama is offering incentives to schools who keep their tuition and fees down. States which keep their tuition reasonable will be rewarded under this plan, which is currently being called the “Race to the Top.”
Also intended to help encourage Americans to seek and complete higher education is a $55 million investment called the “First in the World” competition. The goal here is to come up with new strategies and innovations to make an American education the best it can be. Organizations “competing” in this will work towards the common goals of enhancing learning, increasing enrollment and helping students reach their goals in higher education.
Finally, the administration will seek to ensure that all prospective college students have accurate data from which they can make their decisions. Whereas currently there is no standardized system by which colleges can be judged, the new program would call for a “scorecard” for each college, allowing students to determine which institution is appropriate for them.
Obama has been working towards making higher education in the United States accessible and attractive to a wider base for some time now; these new proposals follow on the heels of Obama’s “Pay as You Earn” plan coming to fruition just this year. For students – current and future – these plans could be the difference between working your whole life to pay off an education or making your education pay off for the rest of your life.
Lower tuition and increased financial aid is exactly what every student wants. After the past few years of rapidly increasing tuition and fees at many universities, students may breathe a sigh of relief. It cannot come too soon.
This is a big step in the right direction, if properly executed. Education is the foundation to a strong economy and society. Investing more in education now can only help both the economy and the people of the United States.
I thought the President was right-on with his focus on education. Just a quick note though: the focus on education helps the economy in the medium to long-run by raising potential GDP. (In other words, it’s a supply-side policy.) This investment in human capital is indeed crucial to economic growth, but I just hope no one is kidding themselves about the short-run. Improving education yields big returns in the future, but it isn’t going to do much to speed the current recovery.