Mr. Obama called on states to make higher education funding a higher priority in their state; on Congress to extend tuition tax credits, and double the number of work study jobs available; on colleges and universities to do what they need to do to keep costs down.
"So from now on I’m telling Congress: We should steer federal campus-based aid to those colleges that keep tuition affordable, provide good value, serve their students well. We are putting colleges on notice.
You can't assume that you'll just jack up tuition every year. If you can't stop tuition from going up, then the funding you get from taxpayers each year will go down."
Mr. Obama also introduced a new, $1 billion Race to the Top competition to reward states that come up bigger, more systemic ways to reduce college costs:
"We're telling the states: If you can find new ways of bringing down the cost of college and make it easier for more students to graduate, we'll help you do it. We will give you additional federal support, if you are doing a good job of making sure that all of you aren’t loaded up with debt when you graduate from college."
The President also wants to create a "report card" of sorts for colleges and universities, so that parents and students better understand how a school is doing, how affordable it is, how well its students are going.
And while the roughly 4,000 students in the crowd cheered at Mr. Obama's overall college affordability proposal, not everyone is on board with it.
As Tamar Lewin from the New York Times reports, the President's proposal has "raised hackles in higher-education circles":
“When we hear things like a shift in federal aid, it causes our antennas to go straight up,” said Molly Corbett Broad, president of the American Council on Education. “Anything that smacks of price controls is of great concern on many levels, especially at a time when states are cutting their budgets — and if the effect of this is to limit tuition, what else would you call it but price controls?”
Ms. Broad said that she and university presidents across the nation shared the president’s commitment to affordable higher education, but that it was not so easy to keep tuition down at a time when institutions must also absorb state budget cuts, increase enrollment and bolster financial aid for the growing number of families who need it.
The President delivered his remarks to roughly 4,000 people, mostly students, at the Al Glick Field House on U of M's campus.
The stage is up, and the crowd is gathering to hear President Obama deliver remarks at 9:35 a.m. at the Al Glick Field House at the University of Michigan.
You can listen to his speech by clicking our "listen live" link above.
Michigan Radio's Jennifer Guerra is at the event and will bring us details of the event later today.
Mr. Obama's speech is part of a nationwide tour where he is adding details to plans he outlined in his State of the Union speech.
Today, standing in front of a sign that reads "An America Built to Last," Obama will talk about his ideas for keeping college education affordable.
This morning, the White House released a "blueprint" for his plan. We'll post more on those ideas soon.