President Barack Obama laid out his plan for reforming higher education in August. The plan is aimed at reducing the student loan burden and raising the bar for U.S. colleges. It calls for a new rating system that would measure colleges’ affordability, outcomes and access. Federal financial aid would be tied to these rankings, so that students enrolled at highly ranked schools would be eligible for larger Pell Grants or more favorable student loan rates.
In addition, the plan calls for greater accountability from students who receive financial aid, which would include ensuring that students who get financial assistance complete courses before receiving grants for the next semester.