Performance Based Funding

Recently, the Chronicle of Higher Education has reported that two states (Missouri and Pennsylvania) have used student surveys and standardized tests to document learning—and linking financial rewards to the results.  This policy is certainly in line with the CAR, a newly proposed federal regulation which links federal funding such as Pell Grants and school/CAR ratings to award federal money.  With these new trends, there are small rooms left for colleges to escape, especially for institutions that are more dependent on both state and federal funding.  However, can US colleges change both students’ and other institution’s performance metrics in one or two academic years?

Please let us know how does this trend will affect students learning quality; and how will it impact student loans and cost of education; and what is going to happen to US colleges that are not going to make it?