Leaders and experts in higher education had mixed reactions to President Barack Obama's proposals to make college more affordable, applauding some while worried that others could cause more harm than good.
"What the president has done is to open the conversation," said John Cavanaugh, chancellor of the Pennsylvania State System of Higher Education. "It's very clear that we do need to have creative solutions to the cost issue."
The president outlined his plan during Tuesday's State of the Union address and reiterated some of it Friday to students at the University of Michigan. He wants schools whose tuition increases significantly exceed inflation to face cuts in federal aid, and he wants to pressure state legislatures to maintain or increase aid to higher education.
His plan targets "campus-based" aid given to colleges to distribute in areas such as Perkins loans or in work-study programs. Of the $142 billion in federal grants and loans distributed in the last school year, about $3 billion went to these programs. His plan calls for increasing that type of aid to $10 billion annually.
He proposed extending the Opportunity Tax Credit, which can amount to $10,000 over four years, beyond 2012. He would also prevent interest on subsidized Stafford loans from doubling to 6.8 percent in July. Other proposals include requiring colleges to supply standardized information so prospective students can compare cost and quality.
Molly Corbett Broad, president of the American Council on Education, issued a statement expressing concern that the proposal would "move decision-making in higher education from college campuses to Washington, D.C."
His proposals will be described in greater detail when he presents his 2013 budget to Congress on Feb. 13.
The average in-state tuition and fees at four-year public colleges last fall rose 8.3 percent and, with room and board, now exceed $17,000 a year, according to the College Board. In 2010-11 about a third of their income came from federal student aid, according to the American Council on Education.
