Obama seeks to make college affordable

President Barack Obama has proposed new measures to provide relief to university students and families struggling to pay skyrocketing tuition costs nationwide.

But the passage of his proposals are anything but certain.

Obama announced the proposal in his State of the Union address on Jan. 24. His proposal included plans to tie federal financial aid funding to tuition costs at campuses nationwide.

He also called for shifting $10 billion annually from schools who fail to curtail tuition costs to schools that seek to curb tuition hikes and better aid needy students. Obama also wants to maintain a college tax credit for families.

Obama cited recent budget cuts as a driver for tuition hikes at universities in a speech at the University of Michigan last week. The UNC-system absorbed a budget cut of 15.6 percent, or $414 million, in last year’s state budget.

In his speech Obama said 40 states cut funding to universities last year. He said he wants to give schools incentives to contain tuition costs and also encourage states to fund higher education and aid for needy students.

Part of his proposal, which includes a Race to the Top initiative for higher education, will provide $1 billion to states that commit to containing costs.

But Bruce Carney, executive vice chancellor and provost at UNC, said the program might not be large enough to have a substantial impact.

“It looks to me the size of the investment in his Race to the Top program, as he says, is not very large spread out over all the state schools in the country,” Carney said. “It would not make a very significant difference.”

Carney added that Obama’s proposals to control tuition costs were a good start.

Obama is also urging Congress to prevent the interest rate on student loans from doubling to 6.8 percent this July. His administration will develop a “College Scorecard” to inform families about financial requirements and the graduation and employment rates of universities before committing to them.

“I look forward to learning more about his proposals when this years’ budget request is submitted,” said U.S. Rep. David Price, D-N.C., in a statement.

If these proposals pass in Congress, it will be the first time the federal government has tied federal financial aid to tuition policies.

But Miles Lackey, director of UNC’s Office of Federal Affairs, said the political gridlock that has consumed Congress recently might hinder the passage of Obama’s proposals.

“This is just the beginning of the process,” Lackey said. “Congress will still have to pass legislation, and that is a daunting task in an election year.”

Contact the State & National Editor at state@dailytarheel.com.