Performance Funding Goes Federal
By Paul Fain. Colleges need to demonstrate the value of their product with hard numbers, an increasingly popular maxim holds, or lawmakers will try to do it for them. That prediction is now truer than ever, as the nation’s highest elected official has joined state policymakers in pushing performance-based funding for higher education. The sweeping, ambitious proposal President Obama unveiled Thursday seeks to tie all federal financial aid programs to a rating system of colleges on affordability, student completion rates and the earnings of graduates. The U.S. Department of Education will hold public hearings to develop the ratings before fall 2015. Then the White House will go to Congress to pursue legislation that would link aid levels to colleges’ performance. For example, students who attend standout institutions could receive bigger Pell Grants and more affordable student loans. Read more...