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Obama to propose new system for rating colleges

FILE - In this Aug. 13, 2012, file photo, President Barack Obama's armored bus that will tour Iowa pulls up next to Air Force One, at Offutt Air Force Base in Bellevue, Neb. In 2011, the Secret Service purchased the $1.1 million bus for Obama’s first bus tour as president. The impenetrable-looking black bus has dark tinted windows and flashing red and blue lights. Obama is launching a two-day bus tour on Thursday, Aug. 22, 2013, through New York and Pennsylvania to tout proposals for making college more affordable, a goal he has cast as "a personal mission." (AP Photo/Dave Weaver, File)

BUFFALO, N.Y. (AP) — President Barack Obama was unveiling a sweeping new plan for rating colleges based in part on affordability, with the goal of eventually linking those ratings to federal financial aid awards.

The new ratings system, which the president wants implemented before the 2015 school year, would evaluate colleges on a series of measures, including average tuition and student loan debt, graduation rates, and the average earnings of graduates. Obama is also seeking legislation to link the new ratings system to the way federal financial aid is awarded, with students attending highly-rated schools receiving larger grants and more affordable student loans.

Obama was to detail the proposals Thursday as he opened a two-day bus tour through New York and Pennsylvania. The tour underscores the White House's desire to stay focused on domestic issues, even as foreign policy crises in Egypt and Syria vie for his attention.

Throughout the summer, the White House has been seeking to keep the president's public agenda centered on middle-class economic issues as a way to rally public support for his positions ahead of looming fiscal battles with congressional Republicans. And Obama, in an email to supporters this week, said a big part of middle-class security includes fundamentally rethinking how to pay for higher education.

"Just tinkering around the edges won't be enough," Obama wrote. "We've got to shake up the current system."

Speaking to reporters aboard Air Force One, Education Secretary Arne Duncan said Thursday the middle class needs the security of knowing they can afford to send their kids to college.

"There's a growing sense that college is for the wealthy, for rich folks and not for hard-working people who are doing the right thing every day," he said.

The president's plan aims to better inform consumers and provide incentives for colleges and universities. "We need much greater transparency for the public," Duncan said.

According to Obama administration estimates, average tuition costs at four-year public colleges have more than tripled over the last three decades. The average student loan borrower also graduates with over $26,000 in debt.

The president will also propose legislation to give colleges a "bonus" based on the number of students they graduate who received Pell Grants. The goal is to encourage colleges to enroll and graduate low- and moderate-income students.

The administration will also seek to require colleges with high dropout rates to distribute student aid over the course of the semester as students face expenses rather than in a lump sum. The aim is to prevent wasting grant money by ensuring that students who drop out do not receive funds for time they are not in school.

"You want to see good actors be rewarded," Duncan said.

Obama is also renewing his call for a $1 billion college "Race to the Top" competition that would reward states that make significant changes in higher education policies while also containing tuition costs.

The bus trip unfolds as Obama also confronts a turbulent international scene, with tensions in Egypt and continuing bloodshed in Syria. The Syrian regime was keeping up a military offensive Thursday in eastern Damascus, where the opposition said the regime had killed over 100 people the day before in a chemical weapons attack.

White House spokesman Josh Earnest, aboard Air Force One, defended the president's decision to leave Washington despite the foreign challenges.

"As we're weighing these domestic policy positions and foreign policy decisions, the president puts the interests of the United States of America first," Earnest said. "The fact that we are doing this bus tour is an indication that the president has his priorities straight."

The backdrop for the president's rollout will be colleges and high schools throughout New York state and Pennsylvania. He'll hold his first event Thursday morning at the University of Buffalo before traveling by armored bus to Henninger High School in Syracuse, N.Y. The president will hold a town hall Friday at Binghamton University, then travel to Scranton, Pa., for an event at Lackawanna College.

Vice President Joe Biden, a Scranton native, is scheduled to join Obama in his hometown. Biden spent much of the week in Houston, where his son Beau underwent a medical procedure at a cancer center.

For Obama, who has made no secret of his desire to get out of Washington when he can, the bus tours have become a favorite method for reconnecting with the public. Beyond his official events, the president often makes unscheduled stops at local restaurants and businesses, and sometimes pulls off on the side of the road to greet cheering crowds.

In 2011, the Secret Service purchased a $1.1 million bus for Obama's first bus tour as president. The impenetrable-looking black bus has dark tinted windows and flashing red and blue lights.


Follow Julie Pace on Twitter at https://twitter.com/jpaceDC