During last week’s State of the Union address, President Obama highlighted the importance of restraining the growth of college costs for middle- and low-income students and families. Later that week, before a boisterous crowd at the University of Michigan, he took his college affordability pitch on the road and offered some details. Specifically, the president proposed linking eligibility for the billions of federal dollars spent on campus-based aid to the schools’ ability to provide better value to students.
College costs are spiraling out of control. While most families struggle to keep up, low-income families, not surprisingly, are the hardest hit. Currently, to send just one child to a four-year university for one academic year, low-income families must contribute an amount equivalent to 72 percent of their annual household income. In contrast, families with annual earnings of $100,000 are required to contribute only 21 percent.