“At a moment when a higher education has never been more important, it’s also never been more expensive,” the President remarked. “That’s why, over the past four years, we’ve helped make college more affordable for millions of students and families with grants and loans that go farther from before.
“But students and families and taxpayers cannot just keep subsidizing college costs that keep going up and up.”
He continued, “We cannot price the middle class out of a college education. That’s why I proposed major new reforms to make college more affordable and make it easier for folks to pay for their education.”
In the address, he repeated the three pillars of his proposal:
- Create a rating system for colleges with supplementary federal funding contingent upon college tuition rates, graduating rates and the diversity of accepted applications.
- Create more competition between colleges to innovate better ways at graduating a higher rate of students in less time and for less tuition cost.
- Create ways for students and families to better manage college costs and loan repayments, with loan payments based upon a percentage of income, capped so that they do not exceed 10%.
Earlier in the week the President made several speeches at New York and Pennsylvania colleges pitching his plan, calling on Congress to pass the necessary legislation and stating that he would take all possible legal executive steps to move forward on the plan.