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US Department of Education Declared New Criteria for Financial Aid to US Colleges

January 16,2015 by: admin

The U.S. DoE (Department of Education released a complete and extensive report on 19th December 2014. It outlined the parameters that help rate the system of education and federal financial aid distribution supporting education in U.S. colleges. The introduction of the rating system happened in 2013, and the aim of this was to help grade the level of performance as high, low, or middle. This would depend on the data obtained from the earnings information data, Integrated Postsecondary Education Data System (IPEDS) and the National Student Loan Data System (NSLDS).

Introduction of the rating system in colleges also determines the format of distribution of Federal Financial Aid as an important driver that dismantles public education in the U.S. It also drives the expansion of the No Child Left Behind (NCLB) project that the Bush Administration started, and it promotes the policies of Race to the Top (RTTT) created by the Obama Administration.

Since the past forty years, and under the NCLB and RTTT projects, there is obvious extended withdrawal of capital invested in the public K-12 grade education, and there is significant fall of per-pupil expenditures. Presently, there is approximately $170 billion worth of funding distributed by the federal government, to help with enrollment. The state also offered $74 billion to support this.

The process of rating all the colleges and universities in the U.S. that sum up to 7,000 and more was a highly complex project. Experts have to suggest a decision-making process that can enable them to rate the colleges and universities using metrics like the percentage of candidates that receive the Federal Pell grants, the income of the family, long-term median earnings, loan performance outcome, transfer rates, and degree completion rate.

The reporter from Wall Street, Douglas Belkin reported in a blunt statement that the main idea of the report was to help the government to rid itself of schools that failed to produce kids who could get job when they finish school.

The average loan a student borrows is higher than $30,000 and more than 20% of debtors’ default on paybacks. The current total debt the government stands on is $1.1 trillion, which is higher than the credit card debt.

Now there will be a shift in responsibility to control the crisis in higher education systems in the U.S. The governments will shoulders students, their families and colleges and systematically defund school in communities with low income. The government will force universities to remove history, languages and social studies from the curriculum.

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