Obama's aim: to make college affordable.
Millions of families are eligible for an annual $2,500 tax credit to help pay for college, he said. The Obama administration intends to reform Pell grants. The administration is raising the max to $5,550 next year, he said. The value of a Pell grant is going to be pegged to a fixed rate above inflation so these grants don't cover less as costs go up. Colleges and universities need to control their costs to make education more affordable. The administration is revising the Perkins system so that it rewards colleges that have affordable tuitions. Obama has called for ending the Federal Family Education Loans.