American taxpayers spend 150 billion dollars every year on federal financial aid for colleges. By ranking more than 6,000 colleges based on graduation rates, tuition costs and the amount of low income students who receive an education, the administration hopes to inform the American people of the benefits received for the money paid to educate college students.
The aim is to direct federal financial aid to the schools that deliver, and clampdown on for-profit career-training colleges.
In Obama’s 2012 State of the Union address, he promised to stop funding schools that were not producing.
The ability to evaluate colleges before attending will prevent many students from dropping out before graduation or discovering their degrees will not result in good jobs. High drop-out rates and disappointing employment opportunities are responsible for a student loan default rate of 20 percent.
The federal ratings are not intended to give elite standing to highly rated schools.
The official ratings should be available before the fall ’15 school term and Lee G. Lovett says he is really interested in seeing these official ratings reports.