The Vice President visited Florida State University on Monday to talk with students about our comprehensive plan to address rising college costs. The Vice President began by calling on Congress to permanently extend the $2,500 per year American Opportunity Tax Credit for tuition and other expenses, double the number of work-study jobs over the next five years, and help 7.4 million borrowers by stopping the interest rates on federal student loans from doubling later this year.
These proposals are important, but increasing federal aid is only part of the solution. States and universities also share some responsibility for reining in costs. The Vice President detailed our plan to steer federal campus-based aid to schools that keep tuition affordable – and away from schools that don’t. While we plan to significantly increase the availability of campus-based aid by offering more Perkins loans to needy students and creating more work-study slots, the additional dollars will only flow to colleges that are providing good value to their students.
We are also proposing to create a new “Race to the Top” for college affordability and completion. This competitive grant program will encourage states to reform their higher education systems in ways that lower costs and increase completion rates. And because state funding cuts are one of the primary drivers of tuition increases at public universities, any state that wants a grant will have to promise not to slash funding for higher education.
You can learn more about our plan here.