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College affordability is one of the major concerns in the minds of most parents today. Tuition rates are increasing at an exorbitant rate. However, relief seems to be in sight. President Obama is giving top priority to college affordability. His college affordability plan includes various key elements such as financial aid, tax credit and Pell Grants. Recently, Obama has expanded on some of the proposals on his college affordability plans.

Under the new plan, colleges and universities that raise their tuition fees persistently will not receive any federal aid.  Obama said that if colleges cannot stop raising their tuition fees every year, the fund they get from taxpayers will go down. This is an effective way to put an end to colleges and universities increasing their tuition fees at an astronomical rate every year. Obama’s new plan provides more federal support to states that invest in affordable higher education attempts.

In today’s global economy, higher education is not simply a privilege, but is a necessity. Making college more affordable is the only way to lead the world with the highest number of college graduates in America by 2020. Obama has stressed that the federal government, states, colleges and universities need to share the responsibility to promoting affordability in higher education by reducing college costs.

To keep tuition fees from raising too high, our President is planning to propose reforms of existing national programs. One such reform is aimed at colleges that fail to keep net tuition fees low. Colleges and universities that offer a fair share to keep tuition affordable and serve needy students well will be rewarded with federal aids.  The changes made in federal support to campuses will take up $10 billion per year to control the rising tuition fee.

Obama will also make incentives for states and colleges that take steps to control costs. $1 billion will be invested to make reforms in higher education. The steps will be focused on college affordability. Our President’s Race to the top for college affordability and completion, as we see, has been rewarding states that are interested in making changes in the policies and practices of higher education, whilst controlling their tuition fees and making it easier for students to complete their college education.

Public and private colleges as well as nonprofit organizations that work to develop innovative strategy to boost higher education and student outcomes will also be rewarded. The President will allocate $55 million to support these colleges and organizations. This program will help to encourage private and public colleges to develop innovative and effective practices to boost productivity and improve teaching and learning experience on college campuses.

Obama has made huge investments in student aid. Pell grant is increased and direct loan and income based repayment programs are supported. The President summoned congress to keep interest rate low for student loan borrowers, so that the amount of future debt will be reduced. Plans are also there to increase the number of work -study jobs over the next 5 years. This can help college students to manage their higher education expenses.