WASHINGTON – President Barack Obama proposed a plan Thursday that would make college more affordable for incoming students by linking federal financial aid to a new ranking system.
Under the plan, a public college will receive more federal financial aid upon receiving a higher affordability score in the system. The new rankings will be released before the 2015 college year.
Public colleges will be ranked on affordability-based factors such as tuition, percentage of low-income students, graduation rates and amount of student debt upon graduation.
This plan will serve as an incentive for schools to improve in these areas while combating rising college costs and making college affordable for American families, according to a White House news release.
The federal government provides more than $150 billion annually in student financial aid. Fort Lewis College received $22.4 million in loans and grants, said FLC spokesman Mitch Davis.
Under Obama’s plan, FLC might receive more federal financial aid based on its current affordability.
“Given that our tuition is affordable, our student debt is low and our graduation rates are the highest among the other regional schools in Colorado,” Davis wrote in an email, “we feel optimistic about being in step with the president’s goals.”
This year’s tuition and fees for students living on campus are estimated at $5,232 for in-state students and $16,072 for out-of-state students, according to FLC’s website. FLC had the fourth-lowest tuition in Colorado in 2011.
“We have fought to keep our tuition low ... (and) as a result, Fort Lewis College is one of the most affordable colleges in Colorado,” Davis said.
The class of 2011 graduated with an average student debt of $18,780, which is lower than the $22,283 state average and the $26,660 national average, according to the Project of Student Debt.
“Our student debt is among the lowest in the state, and I believe that shows where FLC stands on trying to ensure that students have the chance at a college degree and aren’t saddled with debt after graduation,” Davis said.
About 38 percent of FLC’s students who started college in the fall of 2004 completed a bachelor’s degree within six years, according to the Department of Education. While this rate was higher than other schools in the region such as Colorado Mesa University and Colorado State University-Pueblo, the national rate was 58 percent, according to the White House news release.
One thing that may lower FLC’s ranking is its percentage of low-income students.
About 33 percent of FLC’s undergraduate student body received Pell grants during the 2011-12 academic year, according to the Department of Education. By comparison, 42 percent of Colorado Mesa University’s undergraduates received Pell grants and Colorado State University-Pueblo had 44 percent of its undergraduates qualify as Pell grant recipients, the Department of Education said.
A recent study by the Economic Policy Institute found states with higher wages have a well-educated workforce.
“States can build a strong foundation for economic success and shared prosperity by investing in education,” the study said.
The median salary of a high school dropout in 2012 was $20,329 while individuals with a bachelor’s degree made an average of $49,648 a year, according to the study.
While Obama could create the rankings system through executive action, Congress must approve the redistribution of federal financial aid based on the system.
Paige Jones is a student at American University in Washington, D.C., and an intern for The Durango Herald. Reach her at pjones@durangoherald.com.
