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Obama and College Financial Aid Reform

Tipping my cap to Obummer for linking financial aid to RESULTS, not enrollment.

Summary:  his plan will:

•       Create a new rating system in which colleges would be evaluated based on various outcomes (such as graduation rates and graduate earnings), on affordability and on access (measures such as the percentage of students receiving Pell Grants).
•       Link institution’s authorized levels of student aid to these ratings e.g. students enrolled at high performing colleges would receive larger Pell Grants and more favorable rates on student loans.
•       Create a new program that would give colleges a ‘bonus’ if they enroll large numbers of students eligible for Pell Grants.
•       Toughen requirements on students receiving aid. E.g. Authorize ED to establish rules requiring completion of a certain percentage of classes to continue receiving aid.

The full release is online here: