In Michigan, Obama Calls for Overhaul of Financial Aid

President Obama

called on Congress to approve a financial-aid overhaul that for the first time would tie federal financing to colleges and universities to the success of these institutions in improving affordability and value for students.

Wrapping up a three-day post State of the Union tour that has forecast Mr. Obama’s narrative for his re-election battle with Republicans, Mr. Obama said it was the government’s obligation to narrow the gap between rich and poor. He proposed a $1 billion grant competition to reward states that take action to keep college costs down, and a separate $55 million competition for colleges to increase their value and efficiency.

“I am only standing here because scholarships and student loans gave me a shot at a decent education,” Mr. Obama told the crowd at the Ann Arbor campus of the University of Michigan, where students braved early-morning snow to stand in line to see the president.

“Your president and your first lady were in your shoes just a few years ago,” Mr. Obama said. “We didn’t come from wealthy families. The only reason we were able to achieve what we achieved was because of education.”

Mr. Obama’s proposal would also require colleges and universities to offer students a comparison that shows postgraduate and employment records for their institutions.

As is typically the case when the president speaks on a college campus, the event was high energy, complete with a marching band playing fight songs to warm the crowd up beforehand. And Mr. Obama, who is clearly already in campaign mode, was revved up. He further lit up the crowd with the obligatory “Go Blue” cheer.

“Easy applause line,” he acknowledged.

“We want this to be a big bold generous country where everybody gets a shot,” Mr. Obama told the crowd in the Al Glick Field House. “If there’s anywhere that can teach us about how to bring back manufacturing, it’s the great state of Michigan.”

One night after a Republican debate that saw Newt Gingrich and Mitt Romney beating each other up on everything from immigration to personal finances, the president, without mentioning either man, still sought to draw a comparison between his vision for the country and the Republican vision, which he painted as more of a fend-for-yourself one.