There's a worrying piece over at Inside Higher Ed quoting the president of "a mildly selective private nonprofit institution that is tuition-dependent" saying that the institution has begun to reject some applicants that it would previously have admitted because of worries about meeting outcomes targets in the ratings system proposed by President Obama in his Higher Education Plan last year. Not surprisingly, the effect of this shift has disproportionately affected applicants from disadvantaged backgrounds — and while this is only one case,* it seems to neatly exemplify what many have feared will be the effect of the proposals.
I've written before — and I plan to write more — about the effects of prestige races on the state of higher education in the U.S. Until now, these races have been fostered primarily by the proliferation of ranking systems (US News and World Report, etc.) as structuring elements of the enviornment in which institutions are operating. It is not difficult to link competition for prestige to the sorts of spending and other institutional policy decisions that have led to rising costs of attendence and increased institutional debt loads** — all of which has also created pressure on institutions that traditionally serve less advantaged populations to abandon or de-emphasize those missions. The Obama proposals, as the article shows, seem to have already added to that pressure without even having been put into effect.
*There are definitely reasons to think carefully about what type of institution is being disucssed here, which may not be typical of those doing the most to serve students from disadvantaged populations.
**See, for instance, this New York Times piece from 2012