The United States higher education system is in a downward spiral. States continue to underfund the colleges, which makes the colleges raise tuition, causing the students to have to take out more student loans or work more and take fewer classes, and so on and so forth. It’s a frustrating and maddening endeavor to attempt to get an education these days for these reasons and many more.

Luckily, President Barack Obama is trying to focus on fixing higher education, addressing it in his annual State of the Union address and talking about it at various campuses across the nation. But where’s the proof that he’s trying to change things? Look to the budget for the next fiscal year and you’ll be able to see what the president is hoping for in terms of college. Here are the top 5 things the budget (if passed and executed properly) could do for higher education:

1. Restrict Spending

Obama’s 2013 budget would create a $1 billion “Race to the Top” fund for colleges, as well as $55 million to fund the “First in the World” program for colleges that “encourage productivity and efficiency.” Meaning colleges who get their students prepared and graduated in a timely manner.

Obama is also proposing to increase federally funded research at universities in certain areas. For instance, under new policies, the National Institutes of Health would see no funding increase, but the money available for grants would increase by 7 percent. 

Other research areas would see between 1 percent and as much as a 110 percent increase in funding grant spending.

2. Help for Community Colleges

With more students crowding community colleges campuses to save time and money, the lowest level in the higher education system needs some love too. And not just as a stepping stone, but a jumping off point too.

Obama’s budget offers an $8 billion proposal to encourage colleges and businesses to work together to train 2 million workers in high-growth industries such as technology at community colleges.

The president would include financial incentives to ensure that students find permanent jobs after graduation or receiving a certification. Inside Higher Ed reports the money would also support paid internships for low-income college students, something that is greatly needed.

3. Stricter Rules for For-Profit Colleges

Some of the president’s budget initiatives have politicians and educators balking because it would shut out for-profit colleges like DeVry University and others. Obama would be enacting stricter rules on for-profit colleges, who have been cited on multiple occasions for shady practices. For-profits would not be eligible for money from the “Race to the Top” or “First in the World” programs, nor would they get any research grants.

During Obama’s tenure, for-profits have increasingly come under scrutiny by the administration and been subject to investigations by Congress.

4. Adjusting the Pell Grant

The maximum Pell grant award would be bumped up to $5,635, an increase of $85. Pell grants have not been adjusted to the cost of college over the past 30 years, but were spared during 2011 budget negotiations.

Considering that the average debt after graduation of an American college student is $24,000, students need every penny of financial aid.

5. More Financial Help

Obama’s budget would increase spending on the federal work-study program by 15 percent. The president is also calling for suspending a student loan interest rate scheduled to double this summer.

Inside Higher Ed reports the funding formula for the Perkins federal student loan program would be “revamped” to push colleges to keep net tuition low and provide “good value.” That value would be based on the ability of graduating students to get jobs and pay off their loans, as well as a school serving a higher proportion of low-income students.

Obama is also requesting a 390 percent increase in teacher education assistance, upping the allocation from $41 to $201 million. This is particularly tailored to train more science and math teachers.