Obama said that he wanted colleges to lower tuitions by tying the federal student loans it pays to college tuitions. Giving colleges a profit motive to keep tuitions down might make sense on paper but does not work in reality.
He said that he would increase perkin loans from 1 billion to 8 billion.
But increasing the amount of loans we give students is the wrong path forward. Colleges are able to jack up the tuition because of the very liberal way we provide student loans. Colleges know that students do not care what the tuitions are and if they do not care, it gives them the free will to charge however much they want.
Obama acts as though this will fix the problem but it will not fix the problem.