Obama: Curb hikes in college tuition

In a speech at the University of Michigan Friday, President Obama called on Congress, universities and states to take action to curb the never-ending rise of higher education costs.

The speech marked the launch of Mr. Obama's "Race to the Top" campaign for college affordability, which offers states additional federal support if they successfully lessen the debt load for college graduates.

"An economy built to last demands that we keep doing everything we can to bring down the cost of college," Mr. Obama said. "There is no greater predictor of individual success than a good education."

Mr. Obama challenged Congress to stop increases in student loan interest rates, extend tuition tax credits and double the number of available work study jobs in the next five years.

Mr. Obama said the government should "stop handing out tens of billions of dollars in taxpayer subsidies to banks that issue student loans and shift that money to where it should go - directly to the students and to the families that need it."

Mr. Obama also called on states to make higher education a higher priority in their budgets.

"We know that these state budget cuts have been the largest factor in tuition increases at public colleges over the past decade," Mr. Obama said.

Mr. Obama expressed his desire to establish a report card for colleges and universities that would evaluate each school's performance, affordability and overall value.

"From now on parents and students deserve to know how a college is doing," Mr. Obama said. "We want you to know how a car stacks up before you buy it, you should know how a college stacks up."

Mr. Obama said it is equally important for parents and students to understand how to effectively finance college, using the phrase, "know before you owe."

The president challenged colleges and universities to stop tuition hikes by looking for savings in their budgets.

"You can't assume that you'll just jack up tuition every single year," Mr. Obama said. "From now on, I'm telling Congress we should steer federal campus-based aid to those colleges who keep tuition affordable, provide good value and serve their students well."

Mr. Obama added: "This country has always made a commitment to put a good education within the reach of all who are willing to work for it."