Recently President Obama has been discussing a multitude of issues important to students. In the State of the Union he talked about the economy and job prospects. Last week he also gave a plan for military budget cuts, which may impact our future interests overseas as well as in our pocket books.

However, where the other issues may indirectly affect a portion of students, the president’s discussion of university tuition affects all students directly. Job prospects are important, but less so for an underclassman or continuing student. And although military cuts have an impact on national debt and foreign interests they are not major concerns for most students.

Tuition, debt, class size and quality of education affect every student right now. Under the president’s proposed plan, funding would increase from $3 billion to $10 billion for programs such as the Federal Supplemental Education Opportunity Grant, the Federal Work Study and Federal Perkins Loan program. 

Although the proposed increase in campus-based aid seems extreme, it would help students less than expected. Campus-based aid is currently $3 billion, but direct federal aid to students through loans and grants is $140 billion, and that wouldn’t change.

Campus-based aid is given to the university’s financial aid office with the interest of reallocating it to students. This is different than federal loans and grants given straight to students at lower interest rates.

Although students may appreciate the intentions of President Obama, there is little the president can actually do to lower costs of college, especially as state funding decreases and private loans become more expensive.

The key issue to university costs is the university budget. Universities are highly dependent on economic conditions and state funding. As prices for goods and services, buildings, new labs and facilities and teaching talent increases, the budget has to increase with it.

As prices have risen, universities struggle to compete for the best programs, researchers and teachers. For example, Iowa State is known for its exemplary engineering programs, but this is possible because of the constant investment in technology and research development.

Budgets are squeezed to keep costs reasonable, but at what point do we jeopardize our prestige or our liberal education? Like anything else, quality costs money. Costs are important, but the university’s mission is educating the students, and tuition reduction cannot go so far as to affect the university’s ability to teach. Increased squeeze of university budgets may increase class size, reduce departments and adversely affect students’ education.

Aid should be direct to students. For the president’s system to work it needs to consider the quality of education as well as the costs. It has to be careful to reward and help universities while avoiding the danger of making funding and tuition worse.