Educators Management and Employment: Paying for College

College is on every parent’s mind. Whether in elementary, middle or high school, college rankings, tuition, academic and athletic achievements are never far from the conversation.

One of the top concerns of course is financial. College has become increasingly more expensive, to the point where most have to take out loans to afford tuition.

To address rising concerns, President Obama announced a plan to rein in the rising costs of college by leveraging financial aid that rewards colleges that graduate students with the least amount of debt and punish those who don’t. The most dramatic provision calls for a ranking of the universities and colleges based on average tuition, loan debt, graduation rates and graduates’ earnings. Ultimately, the plan will ask Congress to alter the federal financial-aid program to reward higher-performing colleges by giving those students larger Pell grants and lower-cost loans.

Finally, the plan would make students responsible for making consistent academic progress in order to continue to receive federal aid. Some states have already implement similar changes. Starting next year, Indiana students will be required to start and finish 24 credits annually in order to their aid to be renewed. If they complete 30 or more credits, they could be rewarded with more. The goal is to put students on the track to graduate in four years and reduce tuition costs.

The response from professors and administrators have been less than stellar, particularly over the new ranking system. Some administrators voice concerns that colleges would find ways to inflate rankings and thus accept more federal aid.

What do you think of the proposed plan? Is it a good solution? What about the new ranking system? We’d love to hear from you.

PGUI Educators Liability and Employment Practices Liability programs are tailored specifically for public, parochial and nonprofit private school entities including colleges, universities and vocational training schools. Contact us today for more information 804-272-6557