With the cost of tuition rising each year for colleges and universities, students and parents are finding
it increasingly difficult to pay for college. But if a new plan revealed on Jan. 27 by President Obama at
the University of Michigan goes into effect, paying for a college education may become a little easier.

Under the plan, not only would more schools offer Perkins loans—an increase from 1,700 schools to
4,000—schools that raise tuition costs too often could be stripped of financial aid money. The money
would instead go to schools that are doing a better job at controlling costs and keeping tuition fees low.

To pay for the new plan, Obama announced an increase in the Perkins loan budget from $1 billion to $8
billion. The Perkins loans are paid for with taxpayer money.

“States also have to do their part … by making higher education a higher priority in their budgets,”
Obama said during the speech.

Additionally, Obama called for a $1 billion grant for elementary and secondary schools, as well as
another $55 million dollars for colleges that increase their value and efficiency. The money would be
awarded via competition among schools, according to a recent Sacramento Bee article.

Michael Poindexter, vice president of Student Services at City College, said he is on board with the
new plan.

“This plan helps ensure that everyone is successful and they can be healthy, physically and
financially,” said Poindexter.
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Emma Snuggs, 27, former member of the City College Associated Student Government, said the new
plan is a good idea, but that it could raise some concerns for students.

“I definitely like the direction Obama is going,” said Snuggs. “States can’t prioritize what Obama is
saying and instead of Obama demanding needs, he should mandate things.”

As the cost of college courses increases, more students are filing for financial aid but are being denied.

Snuggs was denied of financial aid because she had racked up too many units.

“People are stuck if they want to transfer,” said Snuggs. “I feel like not investing in an education is not American.”

But not everyone is in support of the plan. Justin Turner, 26, an employee at the state Capitol building and assistant to assembly member Chris Norby, doesn’t think the plan is a good idea.

“I believe this plan is unrealistic” said Turner. “This can affect City College harshly. The success can
go down and it’s not good to take more money away from the colleges.”

Despite the concerns, Poindexter remains optimistic.

“Of course I like this plan,” Poindexter said. “It is a national plan; it educates everyone.”

To read California Community Colleges Chancellor Jack Scott’s comments on this new plan, click here.