DEPARTMENT OF EDUCATION · DEPARTMENT OF EDUCATION OFFICE OF ELEMENTARY AND SECONDARY EDUCATION Federal Funds EDUCATION FOR THE DISADVANTAGED For carrying out title I of the Elementary

DEPARTMENT OF EDUCATION

OFFICE OF ELEMENTARY AND SECONDARYEDUCATION

Federal Funds

EDUCATION FOR THE DISADVANTAGED

For carrying out title I of the Elementary and Secondary Education Act of 1965(referred to in this Act as "ESEA") and section 418A of the Higher Education Actof 1965 (referred to in this Act as "HEA"), $16,347,558,000, of which $4,616,122,000shall become available on July 1, 2018, and shall remain available throughSeptember 30, 2019, and of which $11,681,898,000 shall become available on Oc-tober 1, 2018, and shall remain available through September 30, 2019, for academicyear 2018–2019: Provided, That $15,881,458,000 shall be for Part A of title I andshall be made available without regard to section 1002(a) of the ESEA: Providedfurther, That $6,431,057,000 shall be for basic grants under section 1124 of theESEA: Provided further, That up to $5,000,000 of these funds shall be available tothe Secretary of Education (referred to in this title as "Secretary") on October 1,2018, to obtain annually updated local educational agency-level census povertydata from the Bureau of the Census: Provided further, That $1,362,301,000 shallbe for concentration grants under section 1124A of the ESEA: Provided further,That $3,544,050,000 shall be for targeted grants under section 1125 of the ESEA:Provided further, That $3,544,050,000 shall be for education finance incentivegrants under section 1125A of the ESEA: Provided further, That up to $1,000,000,000shall be for grants to local educational agencies to implement weighted per-pupilfunding systems through a demonstration agreement with the Secretary under PartE of Title I of the ESEA that meets the requirements of section 1501(d) of the ESEAand includes an open enrollment system allowing students to enroll in a publicschool selected by their parents: Provided further, That the Secretary may establishrequirements for such grants related to the implementation of open enrollment sys-tems: Provided further, That notwithstanding section 1501(c)(1) of the ESEA, theSecretary may enter into a demonstration agreement with any local educationalagency that meets the requirement for selection under section 1501(c)(2) of theESEA: Provided further, That the Secretary may reserve up to $10,000,000 for na-tional activities including technical assistance and information dissemination:Provided further, That $44,538,000 shall be for carrying out section 418A of theHEA.

Note.—A full-year 2017 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the Further Continu-ing Appropriations Act, 2017 (P.L. 114–254). The amounts included for 2017 reflect the annu-alized level provided by the continuing resolution.

Program and Financing (in millions of dollars)

2018 est.2017 est.2016 actualIdentification code 091–0900–0–1–501

Obligations by program activity:14,05114,88114,893Grants to local educational agencies ........................................0001

449449507School improvement grants .......................................................0002374374375State agency programs: Migrants .............................................0003474761State agency programs: Neglected and delinquent ...................0004454545Special programs for migrant students .....................................0006

190190.................Comprehensive literacy development grants .............................00071,000..................................Title I Choice program ...............................................................0008

16,15615,98615,881Total new obligations, unexpired accounts ....................................0900

Budgetary resources:Unobligated balance:

662661525Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:4,6665,1665,176Appropriation ....................................................................1100

Advance appropriations, discretionary:10,84110,82110,841Advance appropriation ..................................................117015,50715,98716,017Budget authority (total) .............................................................190016,16916,64816,542Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:13662661Unexpired unobligated balance, end of year ..........................1941

Change in obligated balance:Unpaid obligations:

9,2209,6869,429Unpaid obligations, brought forward, Oct 1 ..........................300016,15615,98615,881New obligations, unexpired accounts ....................................3010

–16,043–16,452–15,617Outlays (gross) ......................................................................3020..................................–7Recoveries of prior year unpaid obligations, expired .............3041

9,3339,2209,686Unpaid obligations, end of year .................................................3050

Memorandum (non-add) entries:9,2209,6869,429Obligated balance, start of year ............................................31009,3339,2209,686Obligated balance, end of year ..............................................3200

Budget authority and outlays, net:Discretionary:

15,50715,98716,017Budget authority, gross .........................................................4000Outlays, gross:

7,7757,7817,546Outlays from new discretionary authority ..........................40108,2688,6718,071Outlays from discretionary balances .................................4011

16,04316,45215,617Outlays, gross (total) .............................................................402015,50715,98716,017Budget authority, net (total) ..........................................................418016,04316,45215,617Outlays, net (total) ........................................................................4190

SUMMARY OF PROGRAM LEVEL

(in millions of dollars)2018–2019Academic

Year

2017–2018Academic

Year

2016–2017Academic

Year$4,666$5,165$5,175New Budget Authority ...............................................................................11,68210,84110,821Advance appropriation .............................................................................

16,34816,00615,996Total program level ......................................................................

+841+20–20Change in advance appropriation from the previous year ........................

Grants to local educational agencies.—Funds are allocated via formulafor programs that provide academic support to help students in high-povertyschools meet challenging State standards. States assess annually all studentsin certain grades in at least English language arts, mathematics, and science;develop systems to differentiate among schools on the basis of performanceon those assessments and other indicators; provide parents with informationon the performance of their child's school; and ensure the development andimplementation of support and improvement plans for the lowest-perform-ing schools.

Furthering options for children to unlock success.—Funds would supportgrants to local educational agencies that agree to promote expanded publicschool choice through the implementation of weighted student fundingformulas combined with open enrollment systems.

State agency migrant program.—Funds support formula grants to Statesfor educational services to children of migratory farmworkers and fishers,with resources and services for children who have moved within the past36 months.

State agency neglected and delinquent children and youth educationprogram.—Funds support formula grants to States for educational servicesto neglected or delinquent children and youth in State-run institutions, at-tending community day programs, and in correctional facilities.

Special programs for migrant students.—Funds support grants to institu-tions of higher education and nonprofit organizations that assist migrantstudents in earning a high school equivalency certificate or in completingtheir first year of college.

Object Classification (in millions of dollars)


Direct obligations:444Advisory and assistance services ..............................................25.1

252525Other services from non-Federal sources ..................................25.2543Other goods and services from Federal sources ........................25.3434Operation and maintenance of equipment ................................25.7

16,11815,95015,845Grants, subsidies, and contributions ........................................41.0

16,15615,98615,881Total new obligations, unexpired accounts ............................99.9

✦

IMPACT AID

For carrying out programs of financial assistance to federally affected schoolsauthorized by title VII of the ESEA, $1,236,435,000, of which $1,166,012,000 shallbe for basic support payments under section 7003(b), $48,224,000 shall be forpayments for children with disabilities under section 7003(d), $17,373,000, to remain

335

IMPACT AID—Continued

available for obligation through September 30, 2019, shall be for construction undersection 7007(b), and $4,826,000, to remain available until expended, shall be forfacilities maintenance under section 7008: Provided, That for purposes of computingthe amount of a payment for an eligible local educational agency under section7003(a) for school year 2017–2018, children enrolled in a school of such agencythat would otherwise be eligible for payment under section 7003(a)(1)(B) of suchAct, but due to the deployment of both parents or legal guardians, or a parent orlegal guardian having sole custody of such children, or due to the death of a militaryparent or legal guardian while on active duty (so long as such children reside onFederal property as described in section 7003(a)(1)(B)), are no longer eligible undersuch section, shall be considered as eligible students under such section, providedsuch students remain in average daily attendance at a school in the same localeducational agency they attended prior to their change in eligibility status.




Obligations by program activity:1,1661,1661,168Basic support payments ............................................................0001

484848Payments for children with disabilities .....................................0002

1,2141,2141,216Direct program activities, subtotal ................................................0091551Facilities maintenance ..............................................................0101

171735Construction ..............................................................................0201.................6767Payments for Federal property ...................................................0301

1,2361,3031,319Total new obligations (object class 41.0) ......................................0900



Appropriations, discretionary:1,2361,3031,306Appropriation ....................................................................11001,2411,3081,324Total budgetary resources available ..............................................1930



372431365Unpaid obligations, brought forward, Oct 1 ..........................30001,2361,3031,319New obligations, unexpired accounts ....................................3010

..................................338Obligations ("upward adjustments"), expired accounts ........3011–1,376–1,362–1,252Outlays (gross) ......................................................................3020

..................................–339Recoveries of prior year unpaid obligations, expired .............3041

232372431Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

372431365Obligated balance, start of year ............................................3100232372431Obligated balance, end of year ..............................................3200



1,1081,1681,010Outlays from new discretionary authority ..........................4010268194242Outlays from discretionary balances .................................4011


Impact Aid helps to replace the lost local revenue that would otherwisebe available to educate federally connected children. The presence of certainstudents living on Federal property, such as students who are military de-pendents or who reside on Indian lands, can place a financial burden onlocal educational agencies (LEAs) that educate them. The property onwhich the children live and their parents work is exempt from local propertytaxes, denying LEAs access to the primary source of revenue used by mostcommunities to finance education.

Basic support payments.—Payments will be made on behalf of more than750,000 federally connected students enrolled in about 1,100 LEAs to assist

them in meeting their operation and maintenance costs. Average per-studentpayments will be approximately $1,500.

Payments for children with disabilities.—Payments in addition to thoseprovided under the Individuals with Disabilities Education Act (IDEA)will be provided on behalf of approximately 51,000 federally connectedstudents with disabilities in about 840 LEAs. Average per-student paymentswill be approximately $950.

Facilities Maintenance.—Funds will be used to provide emergency repairsfor school facilities that serve military dependents and are owned by theDepartment of Education. Funds will also be used to transfer the facilitiesto LEAs.

Construction.—Approximately 6 to 10 construction grants will be awardedcompetitively to the highest-need Impact Aid LEAs for emergency repairsand modernization of school facilities.

✦

SCHOOL IMPROVEMENT PROGRAMS

For carrying out school improvement activities authorized by part B of Title I andpart B of title V of the ESEA; the McKinney-Vento Homeless Assistance Act; section203 of the Educational Technical Assistance Act of 2002; the Compact of Free As-sociation Amendments Act of 2003; and the Civil Rights Act of 1964, $697,231,000,of which $622,654,000 shall become available on July 1, 2018, and remain availablethrough September 30, 2019: Provided, That $51,347,000 shall be available to carryout section 203 of the Educational Technical Assistance Act of 2002 and the Secretaryshall make such arrangements as determined to be necessary to ensure that theBureau of Indian Education has access to services provided under this section:Provided further, That $16,667,000 shall be available to carry out the SupplementalEducation Grants program for the Federated States of Micronesia and the Republicof the Marshall Islands: Provided further, That the Secretary may reserve up to 5percent of the amount referred to in the previous proviso to provide technical assist-ance in the implementation of these grants: Provided further, That $175,506,000shall be for part B of title V.




Obligations by program activity:1,6812,4172,325Supporting effective instruction State grants ...........................0001

.................155153Mathematics and science partnerships ....................................0002

.................1,1741,16321st century community learning centers .................................0003377388369State assessments ....................................................................0004707070Education for homeless children and youths .............................0005

.................3333Native Hawaiians education ......................................................0006

.................3232Alaska Native education ............................................................0007777Training and advisory services ..................................................0008

175175176Rural education .........................................................................0009171717Supplemental education grants ................................................0010515151Comprehensive centers .............................................................0011

.................98Pooled evaluation ......................................................................0012



.................10370Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:6972,7472,753Appropriation ....................................................................1100

..................................3Appropriations transferred from other acct [091–0204] ....1121

6972,7472,756Appropriation, discretionary (total) .......................................1160Advance appropriations, discretionary:

1,6811,6781,681Advance appropriation ..................................................11702,3784,4254,437Budget authority (total) .............................................................19002,3784,5284,507Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................103Unexpired unobligated balance, end of year ..........................1941



THE BUDGET FOR FISCAL YEAR 2018336 Office of Elementary and Secondary Education—ContinuedFederal Funds—Continued


2,9094,9334,747Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

4,9334,7474,707Obligated balance, start of year ............................................31002,9094,9334,747Obligated balance, end of year ..............................................3200



1,0231,062925Outlays from new discretionary authority ..........................40103,3793,2803,430Outlays from discretionary balances .................................4011


SUMMARY OF PROGRAM LEVEL

(in millions of dollars)2018–2019Academic

Year

2017–2018Academic

Year

2016–2017Academic

Year$697$2,747$2,752New Budget Authority ...............................................................................

01,6811678Advance Appropriation .............................................................................

6974,4284,430Total program level ......................................................................

–1,681+3–3Change in advance appropriation over previous year ...............................

State assessments.—Funds would support formula and competitive grantsto States to develop and implement assessments that are aligned with col-lege- and career-ready academic standards. Funds would also support auditsof State and local assessment systems.

Education for homeless children and youths.—Funds would supportactivities to ensure that all homeless children and youth have equal accessto the same free, appropriate public education available to other children.

Training and advisory services.—Funds support grants to regional equityassistance centers that provide technical assistance to local educationalagencies (LEAs) in addressing educational equity related to issues of race,sex, national origin, and religion.

Rural education.—Funds would support formula grants under two pro-grams: the Small, Rural School Achievement program and the Rural andLow-Income School program. The Small, Rural School Achievementprogram provides rural LEAs with small enrollments with additional for-mula funds to carry out activities authorized elsewhere in the Elementaryand Secondary Education Act of 1965 (ESEA). Funds under the Rural andLow-Income School program, which targets rural LEAs that serve concen-trations of poor students, are allocated by formula to States, which in turnallocate funds to eligible LEAs.

Supplemental education grants.—Funds support grants to the FederatedStates of Micronesia and to the Republic of the Marshall Islands in placeof grant programs in which those Freely Associated States no longer parti-cipate pursuant to the Compact of Free Association Amendments Act of2003.

Comprehensive centers.—Funds would support a new cohort of Centersthat would reflect changing priorities and new demands resulting from thereauthorization of the ESEA and that would provide services to the Bureauof Indian Education.



Direct obligations:132625Other services from non-Federal sources ..................................25.2111Other goods and services from Federal sources ........................25.3122Operation and maintenance of equipment ................................25.7



✦

SAFE SCHOOLS AND CITIZENSHIP EDUCATION

For carrying out activities authorized by subparts 2 and 3 of part F of title IV ofthe ESEA, $134,857,000: Provided, That $74,857,000 shall be available for section4631, and of which up to $5,000,000, to remain available until expended, shall befor the Project School Emergency Response to Violence ("Project SERV") program:Provided further, That $60,000,000 shall be available through December 31, 2018for section 4624.




Obligations by program activity:707173School safety national activities ...............................................0001

.................4950Elementary and secondary school counseling ...........................0002

.................4747Physical education program ......................................................0003737356Promise neighborhoods .............................................................0004593Project SERV ..............................................................................0005

148249229Direct program activities, subtotal ................................................0500

148249229Total new obligations, unexpired accounts ....................................0900



Appropriations, discretionary:135244245Appropriation ....................................................................1100209323308Total budgetary resources available ..............................................1930



293293318Unpaid obligations, brought forward, Oct 1 ..........................3000148249229New obligations, unexpired accounts ....................................3010

–241–249–244Outlays (gross) ......................................................................3020..................................–10Recoveries of prior year unpaid obligations, expired .............3041




135244245Budget authority, gross .........................................................4000Outlays, gross:

354Outlays from new discretionary authority ..........................4010238244240Outlays from discretionary balances .................................4011

241249244Outlays, gross (total) .............................................................4020135244245Budget authority, net (total) ..........................................................4180241249244Outlays, net (total) ........................................................................4190

School safety national activities. Funds support competitive grants andother discretionary activities to foster a safe, secure, and drug-free learningenvironment conducive to teaching and learning; facilitate emergencymanagement and preparedness as well as recovery from traumatic events;prevent drug use and violence by students; and otherwise improve studentwell-being. These activities include efforts to create positive school climatesand to counter the effects of pervasive violence on students, including byassisting local school districts to build and increase their capacity to addressthe comprehensive behavioral and mental health needs of students.

Promise neighborhoods. Funds support competitive grants and otheractivities for projects designed to improve significantly the educationaland developmental outcomes of children in some of the Nation's mostdistressed communities through the development and implementation ofa cradle-through-college-to-career continuum of academic programs andcommunity supports, including effective schools.

337DEPARTMENT OF EDUCATIONOffice of Elementary and Secondary Education—Continued

Federal Funds—Continued

SAFE SCHOOLS AND CITIZENSHIP EDUCATION—Continued



Direct obligations:886Other services from non-Federal sources ..................................25.2

..................................1Other goods and services from Federal sources ........................25.3140241222Grants, subsidies, and contributions ........................................41.0

148249229Total new obligations, unexpired accounts ............................99.9

✦

INDIAN EDUCATION

For expenses necessary to carry out, to the extent not otherwise provided, title VI,part A of the ESEA, $143,665,000, of which $5,554,000 shall be for subpart 3 ofpart A of title VI, and of which $37,921,000 shall be for subpart 2 of part A of titleVI: Provided, That the Secretary may make awards under subpart 3 of part A oftitle VI without regard to the funding limitation in section 6133(b)(1).




Obligations by program activity:100100100Grants to local educational agencies ........................................0001383838Special programs for Indian children ........................................0002666National activities .....................................................................0003


Budgetary resources:Budget authority:











The Indian Education programs support the efforts of local educationalagencies (LEA), tribes, and Indian organizations to improve teaching andlearning for the Nation's American Indian and Alaska Native children.

Grants to local educational agencies.—Formula grants support LEAs intheir efforts to enhance and supplement elementary and secondary schoolprograms that serve Indian students, with the goal of ensuring that suchprograms assist participating students in meeting the same academicstandards as all other students.

Special programs for Indian children.—Funds support competitive awardsfor Native Youth Community Projects under the Demonstration Grantsauthority to improve the college- and career-readiness of Native youth, aswell as professional development grants for training Native American

teachers and administrators for employment in school districts with concen-trations of Indian students.

National activities.—Funds support research, evaluation, data collection,and related activities, grants for Native language immersion schools andprograms, and grants to tribes for education administrative planning, devel-opment, and coordination.




142142142Grants, subsidies, and contributions ........................................41.0


✦

OFFICE OF INNOVATION AND IMPROVEMENTFederal Funds

INNOVATION AND IMPROVEMENT

For carrying out activities authorized by subpart 1 of part B and section 2242 oftitle II and parts C and D and subpart 1 of part F of title IV of the ESEA,$1,208,026,000: Provided, That $241,563,000 shall be for subpart 1 of part B andsection 2242 of title II and shall be made available without regard to sections 2201and 2241: Provided further, That $596,463,000 shall be for parts C and D of titleIV and shall be made available without regard to sections 4311 and 4409(a):Provided further, That of the funds available for part C of title IV, the Secretaryshall use not more than $100,000,000 to carry out section 4304 and not more than$155,000,000 to carry out section 4305, of which not more than $25,000,000 shallbe used to carry out the activities in section 4305(a)(3): Provided further, That$370,000,000 shall be available through December 31, 2018 for subpart 1 of partF of title IV: Provided further, That funds provided under subpart 1 of part F of titleIV may be used to support the demonstration and evaluation of projects awardingscholarships to students from low-income families to attend a private school, includ-ing a private religious school, selected by their parents that meets other requirementsestablished by the Secretary.




Obligations by program activity:370119129Education, innovation, and research .........................................0001200230229Teacher and school leader incentive fund .................................0002

.................1616School leader recruitment and support .....................................0003500333316Charter school grants ................................................................0004

..................................16Credit enhancement for charter school facilities .......................0005969696Magnet school assistance .........................................................0006

.................2828Advanced placement .................................................................0007

.................2726Ready to learn programming .....................................................0008

.................5152Fund for the Improvement of Education: Programs of national

significance ..........................................................................0009

.................2727Arts in education .......................................................................0010

.................22American history and civics academies ....................................0011

.................250253Preschool development grants ..................................................001242..................................Supporting effective educator development (SEED) ..................0013

1,2081,1791,190Total direct obligations ..................................................................0799454560DC schools/SOAR Act .................................................................0801



390389396Unobligated balance brought forward, Oct 1 .........................1000..................................20Recoveries of prior year unpaid obligations ...........................1021

390389416Unobligated balance (total) ......................................................1050Budget authority:


..................................–3Appropriations transferred to other acct [091–1000] ........1120

1,2081,1791,178Appropriation, discretionary (total): ......................................1160

THE BUDGET FOR FISCAL YEAR 2018338 Office of Elementary and Secondary Education—ContinuedFederal Funds—Continued

Spending authority from offsetting collections, discretionary:464645Collected ...........................................................................1700

1,2541,2251,223Budget authority (total) .............................................................19001,6441,6141,639Total budgetary resources available ..............................................1930




–1,295–2,005–1,497Outlays (gross) ......................................................................3020..................................–20Recoveries of prior year unpaid obligations, unexpired .........3040..................................–23Recoveries of prior year unpaid obligations, expired .............3041





25256Outlays from new discretionary authority ..........................40101,2701,9801,491Outlays from discretionary balances .................................4011

1,2952,0051,497Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–46–46–45Non-Federal sources .........................................................4033

1,2081,1791,178Budget authority, net (total) ..........................................................41801,2491,9591,452Outlays, net (total) ........................................................................4190

Education innovation and research.—Funds would support grants tolocal educational agencies (LEAs), State educational agencies (SEAs), theBureau of Indian Education (BIE), consortia of LEAs or SEAs, or nonprofitorganizations; or consortia of SEAs, LEAs, or the BIE with a nonprofitorganization, a business, an educational service agency, or an institutionof higher education designed to improve the achievement and attainmentof high-need students. A portion of the funds would support efforts to testand build evidence for the effectiveness of private school choice as astrategy for: 1) expanding school choices for parents who wish to sendtheir children to high quality private schools; 2) improving educationaloutcomes for students from low-income families or students enrolled inpersistently low-performing schools; and 3) increasing competition in orderto improve the quality and performance of all schools.

Teacher and school leader incentive grants.—Funds would support grantsto develop, implement, improve, or expand human capital managementsystems or performance-based compensation systems, especially in high-need schools.

Supporting effective educator development.—Funds would supportcompetitive grants to institutions of higher education, national nonprofitentities, and the BIE to provide educators with evidence-based professionaldevelopment and to support pathways that allow educators with nontradi-tional preparation and certification to obtain employment in traditionallyunderserved local educational agencies.

Charter schools grants.—Funds would support competitive grants forthe opening of new charter schools and the replication and expansion ofhigh-quality charter schools. Funds would also support information dissem-ination activities and competitive grants to improve charter schools' accessto facilities.

Magnet schools assistance.—Funds would support competitive grants toLEAs to establish and operate magnet school programs that are part of anapproved desegregation plan.




161717Other services from non-Federal sources ..................................25.2111Other goods and services from Federal sources ........................25.3444Research and development contracts .......................................25.5


1,2081,1791,190Direct obligations ..................................................................99.0454560Reimbursable obligations .....................................................99.0


✦

OFFICE OF ENGLISH LANGUAGE ACQUISITIONFederal Funds

ENGLISH LANGUAGE ACQUISITION

For carrying out part A of title III of the ESEA, $735,998,000, which shall becomeavailable on July 1, 2018, and shall remain available through September 30, 2019,except that 6.5 percent of such amount shall be available on October 1, 2017, andshall remain available through September 30, 2019, to carry out activities undersection 3111(c)(1)(C).




Obligations by program activity:736736739English language acquisition grants ........................................0001






1,0171,0711,071Unpaid obligations, brought forward, Oct 1 ..........................3000736736739New obligations, unexpired accounts ....................................3010

–739–790–739Outlays (gross) ......................................................................3020







Language acquisition State grants.—This program supports formulagrants to States to improve services for English Learners. States are account-able for demonstrating that English Learners are making progress towardproficiency in English and meeting the same high State academic standardsas all other students. Funds also support national activities, including pro-fessional development to increase the supply of high-quality teachers ofEnglish Learners and a national information clearinghouse on Englishlanguage acquisition.




732732735Grants, subsidies, and contributions ........................................41.0

339DEPARTMENT OF EDUCATIONOffice of English Language Acquisition

Federal Funds

ENGLISH LANGUAGE ACQUISITION—Continued

Object Classification—Continued



✦

OFFICE OF SPECIAL EDUCATION ANDREHABILITATIVE SERVICES

Federal Funds

SPECIAL EDUCATION

For carrying out the Individuals with Disabilities Education Act (IDEA),$12,942,126,000, of which $2,591,321,000 shall become available on July 1, 2018,and shall remain available through September 30, 2019, and of which$10,124,103,000 shall become available on October 1, 2018, and shall remainavailable through September 30, 2019, for academic year 2018–2019: Provided,That the amount for section 611(b)(2) of the IDEA shall be equal to the lesser of theamount available for that activity during fiscal year 2017, increased by the amountof inflation as specified in section 619(d)(2)(B) of the IDEA, or the percent changein the funds appropriated under section 611(i) of the IDEA, but not less than theamount for that activity during fiscal year 2017: Provided further, That the Secretaryshall, without regard to section 611(d) of the IDEA, distribute to all other States (asthat term is defined in section 611(g)(2)), subject to the third proviso, any amountby which a State's allocation under section 611, from funds appropriated under thisheading, is reduced under section 612(a)(18)(B), according to the following: 85percent on the basis of the States' relative populations of children aged 3 through21 who are of the same age as children with disabilities for whom the State ensuresthe availability of a free appropriate public education under this part, and 15 percentto States on the basis of the States' relative populations of those children who areliving in poverty: Provided further, That the Secretary may not distribute any fundsunder the previous proviso to any State whose reduction in allocation from fundsappropriated under this heading made funds available for such a distribution:Provided further, That the States shall allocate such funds distributed under thesecond proviso to local educational agencies in accordance with section 611(f):Provided further, That the amount by which a State's allocation under section 611(d)of the IDEA is reduced under section 612(a)(18)(B) and the amounts distributed toStates under the previous provisos in fiscal year 2012 or any subsequent year shallnot be considered in calculating the awards under section 611(d) for fiscal year2013 or for any subsequent fiscal years: Provided further, That, notwithstandingthe provision in section 612(a)(18)(B) regarding the fiscal year in which a State'sallocation under section 611(d) is reduced for failure to comply with the requirementof section 612(a)(18)(A), the Secretary may apply the reduction specified in section612(a)(18)(B) over a period of consecutive fiscal years, not to exceed five, until theentire reduction is applied: Provided further, That the Secretary may, in any fiscalyear in which a State's allocation under section 611 is reduced in accordance withsection 612(a)(18)(B), reduce the amount a State may reserve under section 611(e)(1)by an amount that bears the same relation to the maximum amount described in thatparagraph as the reduction under section 612(a)(18)(B) bears to the total allocationthe State would have received in that fiscal year under section 611(d) in the absenceof the reduction: Provided further, That the Secretary shall either reduce the alloc-ation of funds under section 611 for any fiscal year following the fiscal year forwhich the State fails to comply with the requirement of section 612(a)(18)(A) asauthorized by section 612(a)(18)(B), or seek to recover funds under section 452 ofthe General Education Provisions Act (20 U.S.C. 1234a): Provided further, Thatthe funds reserved under 611(c) of the IDEA may be used to provide technical as-sistance to States to improve the capacity of the States to meet the data collectionrequirements of sections 616 and 618 and to administer and carry out other servicesand activities to improve data collection, coordination, quality, and use under partsB and C of the IDEA: Provided further, That the Secretary may use funds madeavailable for the State Personnel Development Grants program under part D, subpart1 of IDEA to evaluate program performance under such subpart.




Obligations by program activity:11,04911,87211,917Grants to States ........................................................................0001

367367368Preschool grants .......................................................................0002458458459Grants for infants and families .................................................0003

11,87412,69712,744Subtotal, State grants ...................................................................0091424242State personnel development ....................................................0101444444Technical assistance and dissemination ...................................0102848484Personnel preparation ...............................................................0103272727Parent information centers ........................................................0104303030Educational technology, media, and materials ..........................0105

227227227Subtotal, National activities ..........................................................0191.................1010Special Olympics education program ........................................0201



18.................4Unobligated balance brought forward, Oct 1 .........................1000Budget authority:


Advance appropriations, discretionary:9,2839,2669,283Advance appropriation ..................................................1170

12,10112,95212,977Budget authority (total) .............................................................190012,11912,95212,981Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:1818.................Unexpired unobligated balance, end of year ..........................1941










SUMMARY OF IDEA FORMULA GRANTS PROGRAM LEVELS

[in millions of dollars]2018–2019Academic

Year

2017–2018Academic

Year

2016–2017Academic

Year$2,591$3,432$3,456Current Budget Authority ..........................................................................10,1249,2839,266Advance appropriation .............................................................................

12,71512,71512,722Total program level ...........................................................................

+841+17–17Change in advance appropriation from the previous year ........................

Grants to States.—Formula grants are provided to States to assist themin providing special education and related services to children with disab-ilities ages 3 through 21.

Preschool grants.—Formula grants provide additional funds to States tofurther assist them in providing special education and related services tochildren with disabilities ages 3 through 5 served under the Grants to Statesprogram. The goal of both of the Grants to States and the Preschool grantsprograms is to improve results for children with disabilities by assistingState and local educational agencies (LEAs) to provide children with dis-abilities with access to high quality education that will help them meetchallenging standards and prepare them for employment and independentliving. Under current law, LEAs may reserve up to 15 percent of the fundsthey receive under Part B of the Individuals with Disabilities Education

THE BUDGET FOR FISCAL YEAR 2018340 Office of English Language Acquisition—ContinuedFederal Funds—Continued

Act to provide coordinated early intervening services to children in gradeskindergarten through 12.

Grants for infants and families.—Formula grants are provided to assistStates to implement statewide systems of coordinated, comprehensive,multi-disciplinary interagency programs to provide early intervention ser-vices to children with disabilities, birth through age two, and their families.The goal of this program is to help States provide a comprehensive systemof early intervention services that will enhance child and family outcomes.

National activities.—Funds are provided for personnel preparation anddevelopment, technical assistance, and other activities to support State ef-forts to improve results for children with disabilities under the State Grantsprograms. The goal of National Activities is to link States, school systems,and families to best practices to improve results for infants, toddlers, andchildren with disabilities.

Performance data related to program goals include:

Basis for Leaving Special Education for Youth with Disabilities Ages 14 and Older2014–2015

Actual2013–2014

Actual2012–2013

ActualStatus of Exiting StudentsPercent / number of students with disabilities aged 14–21 exiting specialeducation:

45.2% /252,172

42.2% /258,969

41.9% /257,982

Graduated with a diploma ....................................................................

6.7% /37,590

8.6% /53,031

9.2% /56,399

Graduated through certification ...........................................................

9.7% /53,999

9.2% /56,552

9.4% /57,639

Transferred to regular education ..........................................................

11.6% /64,850

11.8% /72,251

12.1% /74,502

Dropped out of school/not known to continue .......................................

25.6% /142,847

27.2% /167,187

26.5% /162,887

Moved, but known to have continued in education ...............................

1.1% /6,054

1.0% /5,935.9% / 5,839

Reached maximum age for services/other ............................................

100% /557,512

100% /613,925

100% /615,248

Total .............................................................................................

Note-Percentages may not add to 100% due to rounding.






✦

REHABILITATION SERVICES

For carrying out, to the extent not otherwise provided, the Rehabilitation Act of1973 and the Helen Keller National Center Act, $3,563,008,000, of which$3,452,931,000 shall be for grants for vocational rehabilitation services under titleI of the Rehabilitation Act: Provided, That the Secretary may use amounts providedin this Act that remain available subsequent to the reallotment of funds to Statespursuant to section 110(b) of the Rehabilitation Act for innovative activities aimedat improving the outcomes of individuals with disabilities as defined in section7(20)(B) of the Rehabilitation Act, including activities aimed at improving the edu-cation and post-school outcomes of children receiving Supplemental Security Income("SSI") and their families that may result in long-term improvement in the SSI childrecipient's economic status and self-sufficiency: Provided further, That States mayaward subgrants for a portion of the funds to other public and private, nonprofitentities: Provided further, That any funds made available subsequent to reallotmentfor innovative activities aimed at improving the outcomes of individuals with disab-ilities shall remain available until September 30, 2019.




Obligations by program activity:3,4533,1653,163Vocational rehabilitation State grants .......................................0001

131313Client assistance State grants ..................................................0002.................2727Supported employment State grants .........................................0003

303030Training .....................................................................................0004666Demonstration and Training Programs ......................................0005

333333Independent Living ....................................................................0006181817Protection and advocacy of individual rights ............................0007101010Helen Keller National Center ......................................................0008

..................................40Disability innovation fund .........................................................0009

3,5633,3023,339Total direct program ......................................................................0100



..................................40Unobligated balance transfers between expired and unexpired

accounts ...........................................................................1012

Budget authority:Appropriations, discretionary:

110138138Appropriation ....................................................................1100Appropriations, mandatory:

3,4533,3993,392Appropriation ....................................................................1200

.................–235–231Appropriations and/or unobligated balance of

appropriations permanently reduced ............................1230

3,4533,1643,161Appropriations, mandatory (total) .........................................12603,5633,3023,299Budget authority (total) .............................................................19003,5633,3023,339Total budgetary resources available ..............................................1930










124110133Outlays, gross (total) .............................................................4020Mandatory:


1,7261,5821,565Outlays from new mandatory authority .............................41001,5841,8851,465Outlays from mandatory balances ....................................4101


Vocational rehabilitation State grants.—The basic State grants programprovides Federal matching funds to State vocational rehabilitation (VR)agencies to assist individuals with physical or mental impairments to be-come gainfully employed. Services are tailored to the specific needs of theindividual. Priority is given to serving those with the most significant dis-abilities. In 2016, State VR agencies assisted an estimated 186,715 indi-viduals with disabilities to obtain an employment outcome, about 94 percentof whom were individuals with significant disabilities. VR State Grants isa core program of the workforce development system under the WorkforceInnovation and Opportunity Act (WIOA) and a 4required partner in theone-stop service delivery system for accessing employment and trainingservices. Amendments made by WIOA require State VR agencies to reserveand use at least 15 percent of their Federal grant allotment to support pre-employment transition services for students with disabilities provided inaccordance with new section 113 of the Rehabilitation Act. Between 1.0

341DEPARTMENT OF EDUCATIONOffice of Special Education and Rehabilitative Services—Continued


REHABILITATION SERVICES—Continued

percent and 1.5 percent of the funds appropriated for the VR State grantsprogram must be set aside for Grants for Indians.

The request for the VR State Grants program includes the CPIU adjust-ment specified in the authorizing statute. The 2018 request also includeslanguage that would allow the Secretary to use amounts provided in thisAct for the VR State Grants program that remain available subsequent tothe reallotment of funds to States pursuant to section 110(b) of the Rehab-ilitation Act to support innovative activities aimed at improving outcomesfor individuals with disabilities, including activities under the PromotingReadiness of Minors in Supplemental Security Income program.

Client assistance State grants.—Formula grants are made to States toprovide assistance in informing and advising clients and applicants aboutbenefits available under the Rehabilitation Act and, if requested, to pursuelegal or administrative remedies to ensure the protection of the rights ofindividuals with disabilities.

Training.—Grants are made to States and public or nonprofit agenciesand organizations, including institutions of higher education, to increasethe number of skilled personnel available for employment in the field ofrehabilitation and to upgrade the skills of those already employed.

Demonstration and training programs.—Competitive grants and contractsare awarded to expand and improve the provision and effectiveness ofprograms and services authorized under the Rehabilitation Act or furtherthe purposes of the Act in promoting the employment and independenceof individuals with disabilities in the community. Funds are used to supportmodel demonstrations, technical assistance, and projects designed to im-prove program performance and the delivery of vocational rehabilitationand independent living services.

Independent living services for older individuals who are blind.—Grantsare awarded to States to assist individuals over the age of 55 with severevisual disabilities to adjust to their disability and increase their ability tocare for their own needs.

Protection and advocacy of individual rights.—Formula grants are madeto State protection and advocacy systems to protect the legal and humanrights of individuals with disabilities.

Helen Keller National Center for Deaf-Blind Youths and Adults.—TheCenter provides services to deaf-blind youths and adults and providestraining and technical assistance to professional and allied personnel at itsnational headquarters center and through its regional representatives andaffiliate agencies.



Direct obligations:11.................Advisory and assistance services ..............................................25.1



✦

SPECIAL INSTITUTIONS FOR PERSONS WITH DISABILITIES

AMERICAN PRINTING HOUSE FOR THE BLIND

For carrying out the Act to Promote the Education of the Blind of March 3, 1879,$25,383,000.




Obligations by program activity:252525American printing house for the blind .......................................0001

252525Total new obligations (object class 41.0) ......................................0900





–25–24–27Outlays (gross) ......................................................................3020







The Federal appropriation supports: the production and distribution offree educational materials for students below the college level who areblind; research related to developing and improving products; and advisoryservices to consumer organizations on the availability and use of materials.In 2016, the portion of the Federal appropriation allocated to educationalmaterials represented approximately 63 percent of the Printing House'stotal sales. The full 2016 appropriation represented approximately 72 per-cent of the Printing House's total budget.

✦

NATIONAL TECHNICAL INSTITUTE FOR THE DEAF

For the National Technical Institute for the Deaf under titles I and II of the Edu-cation of the Deaf Act of 1986, $69,883,000: Provided, That from the total amountavailable, the Institute may at its discretion use funds for the endowment programas authorized under section 207 of such Act.




Obligations by program activity:707070Operations .................................................................................0001





.................21Unpaid obligations, brought forward, Oct 1 ..........................3000707070New obligations, unexpired accounts ....................................3010

–70–72–69Outlays (gross) ......................................................................3020

..................................2Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................21Obligated balance, start of year ............................................3100

..................................2Obligated balance, end of year ..............................................3200


707070Budget authority, gross .........................................................4000

THE BUDGET FOR FISCAL YEAR 2018342 Office of Special Education and Rehabilitative Services—ContinuedFederal Funds—Continued

Outlays, gross:707068Outlays from new discretionary authority ..........................4010

.................21Outlays from discretionary balances .................................4011


This residential program provides postsecondary technical and profession-al education for individuals who are deaf or hard of hearing, providestraining, and conducts applied research into employment-related aspectsof deafness. In 2016, the Federal appropriation represented approximately70 percent of the Institute's operating budget. The 2018 request includesfunds that may be used for the Endowment Grant program.

✦

GALLAUDET UNIVERSITY

For the Kendall Demonstration Elementary School, the Model Secondary Schoolfor the Deaf, and the partial support of Gallaudet University under titles I and II ofthe Education of the Deaf Act of 1986, $121,044,000: Provided, That from the totalamount available, the University may at its discretion use funds for the endowmentprogram as authorized under section 207 of such Act.




Obligations by program activity:121121121Operations .................................................................................0001





..................................20Unpaid obligations, brought forward, Oct 1 ..........................3000121121121New obligations, unexpired accounts ....................................3010

–121–121–141Outlays (gross) ......................................................................3020Memorandum (non-add) entries:

..................................20Obligated balance, start of year ............................................3100



121121121Outlays from new discretionary authority ..........................4010..................................20Outlays from discretionary balances .................................4011


This institution provides undergraduate, continuing education, andgraduate programs for students who are deaf, hard of hearing, and hearing.The University also conducts basic and applied research and providespublic service programs for persons with hearing loss and persons whowork with them.

Gallaudet operates the Laurent Clerc National Deaf Education Center,which includes elementary and secondary education programs on the maincampus of the University serving students who are deaf or hard of hearing.The Kendall Demonstration Elementary School serves students from birththrough grade 8, and the Model Secondary School for the Deaf serves highschool students in grades 9 through 12. The Clerc Center also developsand disseminates information on effective educational techniques andstrategies for teachers and professionals working with students who aredeaf or hard of hearing.

In 2016, the appropriation for Gallaudet represented approximately 70percent of total revenue for the University. Approximately 25 percent ofthe Federal appropriation was used to support activities at the Clerc Center,which received nearly 100 percent of its revenue through the appropriation.In addition, the University receives other Federal funds such as studentfinancial aid, vocational rehabilitation, Endowment Grant program income,and competitive grants and contracts. The 2018 request includes funds thatmay be used for the Endowment Grant program.

✦

OFFICE OF CAREER, TECHNICAL, AND ADULTEDUCATION

Federal Funds

CAREER, TECHNICAL, AND ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the Adult Education andFamily Literacy Act ("AEFLA"), $499,535,000, which shall become available onJuly 1, 2018, and shall remain available through September 30, 2019: Provided,That of the amounts made available for AEFLA, $13,686,000 shall be for nationalleadership activities under section 242.




Obligations by program activity:7911,1111,117Career and Technical Education State Grants ...........................0001

.................77Career and Technical Education National Activities ..................0002

7911,1181,124Subtotal, Career and Technical ......................................................0091486581583Adult Basic and Literacy Education State Grants ......................0101141314Adult Education National Leadership Activities .........................0102

500594597Subtotal, Adult Education ..............................................................0191.................22Performance Partnership Pilots .................................................0201

1,2911,7141,723Total direct obligations ..................................................................0799.................11Reimbursable program activity .................................................0801



292727Unobligated balance brought forward, Oct 1 .........................1000..................................1Unobligated balance transfer from other acct [016–0174] ....1011


Appropriations, discretionary:500928930Appropriation ....................................................................1100

Advance appropriations, discretionary:791789791Advance appropriation ..................................................1170

Spending authority from offsetting collections, discretionary:..................................3Collected ...........................................................................1700..................................–1Change in uncollected payments, Federal sources ............1701

..................................2Spending auth from offsetting collections, disc (total): ........17501,2911,7171,723Budget authority (total) .............................................................19001,3201,7441,751Total budgetary resources available ..............................................1930





1,0101,4591,439Unpaid obligations, end of year .................................................3050Uncollected payments:

..................................–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................1Change in uncollected pymts, Fed sources, unexpired ..........3070Memorandum (non-add) entries:


343DEPARTMENT OF EDUCATIONOffice of Career, Technical, and Adult Education

Federal Funds

CAREER, TECHNICAL AND ADULT EDUCATION—Continued

Program and Financing—Continued






Offsetting collections (collected) from:..................................–3Federal sources .................................................................4030

Additional offsets against gross budget authority only:..................................1Change in uncollected pymts, Fed sources, unexpired .......4050

1,2911,7171,721Budget authority, net (discretionary) .........................................40701,7401,6951,679Outlays, net (discretionary) .......................................................40801,2911,7171,721Budget authority, net (total) ..........................................................41801,7401,6951,679Outlays, net (total) ........................................................................4190

Summary of Budget Authority and Outlays (in millions of dollars)

2018 est.2017 est.2016 actual

Enacted/requested:1,2911,7171,721Budget Authority .......................................................................1,7401,6951,679Outlays ......................................................................................

Legislative proposal, not subject to PAYGO:186..................................Budget Authority .......................................................................

9..................................Outlays ......................................................................................Total:

1,4771,7171,721Budget Authority .......................................................................1,7491,6951,679Outlays ......................................................................................

SUMMARY OF PROGRAM LEVEL2018–19Academic

Year

2017–18Academic

Year

2016–17Academic

Year$685$926$930New Budget Authority ...............................................................................791791789Advance Appropriation .............................................................................

1,4761,7171,719Total program level ...........................................................................

0+2–2Change in advance appropriation over previous year ...............................

The Administration is proposing legislation reauthorizing the Carl D.Perkins Career and Technical Education Act of 2006, including programsin this account. When new authorizing legislation is enacted, resourceswill be requested for these programs. See the "Legislative proposal, notsubject to PAYGO" schedule for additional details.Adult education:

Adult education State programs.—Funds support formula grants to Statesto help eliminate functional illiteracy among the Nation's adults, to assistadults in obtaining a high school diploma or its equivalent, and to promotefamily literacy. A portion of the funds is reserved for formula grants toStates to provide English literacy and civics education for immigrants andother limited English proficient adults.

Adult education national leadership activities.—Funds support discretion-ary activities to evaluate the effectiveness of Federal, State, and local adulteducation programs, and to test and demonstrate methods of improvingprogram quality.




5021.................Other services from non-Federal sources ..................................25.211.................Other goods and services from Federal sources ........................25.3

..................................8Research and development contracts .......................................25.5

..................................2Operation and maintenance of equipment ................................25.71,2391,6921,707Grants, subsidies, and contributions ........................................41.0


CAREER, TECHNICAL AND ADULT EDUCATION

(Legislative proposal, not subject to PAYGO)



Obligations by program activity:159..................................Career and technical education State grants ............................000127..................................Career and technical education national programs ..................0002

186..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, discretionary:186..................................Appropriation ....................................................................1100186..................................Budget authority (total) .............................................................1900186..................................Total budgetary resources available ..............................................1930


186..................................New obligations, unexpired accounts ....................................3010–9..................................Outlays (gross) ......................................................................3020

177..................................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

177..................................Obligated balance, end of year ..............................................3200


186..................................Budget authority, gross .........................................................4000Outlays, gross:

9..................................Outlays from new discretionary authority ..........................4010186..................................Budget authority, net (total) ..........................................................4180

9..................................Outlays, net (total) ........................................................................4190

Career and Technical Education:Career and technical education State grants.—Funds would support

formula grants to States to expand and improve career and technical edu-cation (CTE) in high schools, technical schools, and community colleges.

Career and technical education national programs.—Funds would sup-port research, development, demonstration, dissemination, evaluation, andassessment activities aimed at improving the quality and effectiveness ofCTE. A portion of the funds would support a competition to promote in-novation and reform in CTE.

✦

OFFICE OF POSTSECONDARY EDUCATIONFederal Funds

HIGHER EDUCATION

For carrying out, to the extent not otherwise provided, titles III, IV, V, and VII ofthe HEA, $1,537,033,000: Provided, That up to 1.5 percent of the funds madeavailable under chapter 2 of subpart 2 of part A of title IV of the HEA may be usedfor evaluation.




Obligations by program activity:.................8687Strengthening institutions ........................................................0001

575656Strengthening tribally controlled colleges and universities ........0002

292829Strengthening Alaska Native- and Native Hawaiian-serving

institutions ............................................................................0003

329323324Strengthening historically Black colleges and universities

(HBCUs) ................................................................................0004

636363Strengthening historically Black graduate institutions .............0005252424Strengthening predominantly Black institutions .......................0007

888Strengthening Asian American- and Native American Pacific

Islander-serving institutions .................................................0008

THE BUDGET FOR FISCAL YEAR 2018344 Office of Career, Technical, and Adult Education—ContinuedFederal Funds—Continued

887Strengthening Native American-serving nontribal

institutions ............................................................................0009

101010Minority science and engineering improvement ........................0010

529606608Subtotal, aid for institutional development ...................................0091108108108Developing Hispanic-serving institutions ..................................0101

1009392Developing Hispanic-serving institution STEM and articulation

programs ...............................................................................0102

101010Promoting baccalaureate opportunities for Hispanic

Americans .............................................................................0103

.................7272International education and foreign language studies ..............0104

..................................1FIPSE/First in the World .............................................................0105

121212Model transition programs for students with intellectual

disabilities into higher education ..........................................0106

.................88Tribally controlled postsecondary career and technical

institutions ............................................................................0107

230303303Subtotal, other aid for institutions ................................................0191808898900Federal TRIO programs ..............................................................0201

219322323Gaining early awareness and readiness for undergraduate

programs (GEAR UP) .............................................................0202

62929Graduate assistance in areas of national need .........................0203.................1515Child care access means parents in school ..............................0204

1,0331,2641,267Subtotal, assistance for students ..................................................0291.................4343Teacher quality partnership .......................................................0301



12111Unobligated balance brought forward, Oct 1 .........................1000.................11Discretionary unobligated balance brought fwd, Oct 1 ......1001

130120123Unobligated balance transfers between expired and unexpired

accounts ...........................................................................1012



Appropriations, mandatory:255238255Appropriation ....................................................................1200

..................................–17Appropriations and/or unobligated balance of


255238238Appropriations, mandatory (total) .........................................12601,7922,2162,220Budget authority (total) .............................................................19002,0432,3372,344Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–122Unobligated balance expiring ................................................1940

2511211Unexpired unobligated balance, end of year ..........................1941









1,9761,9501,824Outlays, gross (total) .............................................................4020Mandatory:


87.................Outlays from new mandatory authority .............................4100259302296Outlays from mandatory balances ....................................4101

267309296Outlays, gross (total) .............................................................41101,7922,2162,220Budget authority, net (total) ..........................................................41802,2432,2592,120Outlays, net (total) ........................................................................4190

Summary of Budget Authority and Outlays (in millions of dollars)


Enacted/requested:1,7922,2162,220Budget Authority .......................................................................2,2432,2592,120Outlays ......................................................................................

Legislative proposal, not subject to PAYGO:8..................................Budget Authority .......................................................................

Total:1,8002,2162,220Budget Authority .......................................................................2,2432,2592,120Outlays ......................................................................................

Aid for institutional development:Strengthening tribally controlled colleges and universities.—Discretionary

and mandatory funds support grants to American Indian tribally controlledcolleges and universities with scarce resources to enable them to improveand expand their capacity to serve students and to strengthen managementand fiscal operations.

Strengthening Alaska Native and Native Hawaiian-serving institu-tions.—Discretionary and mandatory funds support Alaska Native andNative Hawaiian-serving institutions to enable them to improve and expandtheir capacity to serve students and to strengthen management and fiscaloperations.

Strengthening historically Black colleges and universities.—Discretionaryand mandatory funds support grants to help historically Black undergraduateinstitutions to improve and expand their capacity to serve students and tostrengthen management and fiscal operations.

Strengthening historically Black graduate institutions.—Funds supportgrants to help historically Black graduate institutions to improve and expandtheir capacity to serve students and to strengthen management and fiscaloperations.

Strengthening predominantly Black institutions.—Discretionary andmandatory funds support grants to predominantly Black institutions toimprove and expand their capacity to serve students.

Strengthening Asian American- and Native American Pacific Islander-serving institutions.—Discretionary and mandatory funds support grantsto help Asian American and Native American Pacific Islander-serving in-stitutions improve and expand their capacity to serve students and tostrengthen management and fiscal operations.

Strengthening Native American-serving nontribal institutions.—Discre-tionary and mandatory funds support grants to help Native American-serving nontribal institutions improve and expand their capacity to servestudents and to strengthen management and fiscal operations.

Minority science and engineering improvement.—Funds support grantsto predominantly minority institutions to help them make long-range im-provements in science and engineering education and to increase the parti-cipation of minorities in scientific and technological careers.Aid for Hispanic-serving institutions:

Developing Hispanic-serving institutions.—Funds support Hispanic-serving institutions to help them improve and expand their capacity to servestudents.

Developing Hispanic-serving institutions Science, Technology, Engineer-ing, and Math and articulation programs.—Mandatory funds supportHispanic-serving institutions to help them improve and expand their capa-city to serve students with priority given to applications that propose toincrease the number of Hispanics and other low-income students attainingdegrees in the fields of science, technology, engineering, or mathematics;and to develop model transfer and articulation agreements between 2-yearHispanic-serving institutions and 4-year institutions in such fields.

Promoting postbaccalaureate opportunities for Hispanic Americans.—Dis-cretionary funds support Hispanic-serving Institutions to help them expandand improve postbaccalaureate educational opportunities.Other aid for institutions:

Model transition programs for students with intellectual disabilities intohigher education.—Funds support grants to institutions of higher educationor consortia of such institutions to create or expand high quality, inclusivemodel comprehensive transition and postsecondary programs for studentswith intellectual disabilities.Assistance for students:

Federal TRIO programs.—Funds support postsecondary education out-reach and student support services to help individuals from disadvantagedbackgrounds prepare for, enter, and complete college and graduate studies.

345DEPARTMENT OF EDUCATIONOffice of Postsecondary Education—Continued


HIGHER EDUCATION—Continued

Gaining early awareness and readiness for undergraduate pro-grams.—Funds support early college preparation and awareness activitiesat the State and local levels to ensure that low-income elementary andsecondary school students are prepared for and pursue postsecondaryeducation.

Graduate assistance in areas of national need.—Funds support fellow-ships to graduate students of superior ability who have financial need forstudy in areas of national need.



Direct obligations:.................54Other services from non-Federal sources ..................................25.2.................11Other goods and services from Federal sources ........................25.3

332Research and development contracts .......................................25.5212Operation and maintenance of equipment ................................25.7



HIGHER EDUCATION

(Legislative proposal, not subject to PAYGO)



Obligations by program activity:

8..................................Tribally controlled postsecondary career and technical

institutions ............................................................................0107

8..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, discretionary:8..................................Appropriation ....................................................................11008..................................Total budgetary resources available ..............................................1930


8..................................New obligations, unexpired accounts ....................................3010

8..................................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

8..................................Obligated balance, end of year ..............................................3200


8..................................Budget authority, gross .........................................................40008..................................Budget authority, net (total) ..........................................................4180

...................................................Outlays, net (total) ........................................................................4190

Tribally controlled postsecondary career and technical institu-tions.—Funds support the operation and improvement of eligible triballycontrolled postsecondary career institutions to ensure continued and expan-ded educational opportunities for Indian students.

✦

HOWARD UNIVERSITY

For partial support of Howard University, $221,399,000, of which not less than$3,405,000 shall be for a matching endowment grant pursuant to the Howard Uni-versity Endowment Act and shall remain available until expended.




Obligations by program activity:194194195General support .........................................................................0001

272727Howard University Hospital .......................................................0002






–221–223–221Outlays (gross) ......................................................................3020







Howard University is a private, nonprofit institution of higher educationconsisting of 13 schools and colleges. Federal funds are used to providepartial support for University programs as well as for the Howard UniversityHospital, a teaching facility. In 2016, the Federal appropriation representedapproximately 30 percent of the University's revenue and 10 percent of theHospital's revenue.

✦

COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM

For Federal administrative expenses to carry out activities related to existing fa-cility loans pursuant to section 121 of the HEA, $434,000.


HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING PROGRAM

ACCOUNT

For the cost of guaranteed loans, $20,112,000, as authorized pursuant to part Dof title III of the HEA, which shall remain available through September 30, 2019:Provided, That such costs, including the cost of modifying such loans, shall be asdefined in section 502 of the Congressional Budget Act of 1974: Provided further,That these funds are available to subsidize total loan principal, any part of whichis to be guaranteed, not to exceed $313,513,000: Provided further, That these fundsmay be used to support loans to public and private Historically Black Colleges andUniversities without regard to the limitations within section 344(a) of the HEA.

In addition, for administrative expenses to carry out the Historically Black Collegeand University Capital Financing Program entered into pursuant to part D of titleIII of the HEA, $333,000.




Obligations by program activity:Credit program obligations:

20209Direct loan subsidy ................................................................0701.................14517Reestimates of direct loan subsidy .......................................0705.................565Interest on reestimates of direct loan subsidy .......................0706

11.................Administrative expenses .......................................................0709


THE BUDGET FOR FISCAL YEAR 2018346 Office of Postsecondary Education—ContinuedFederal Funds—Continued


252019Unobligated balance brought forward, Oct 1 .........................1000.................2019Discretionary unobligated balance brought fwd, Oct 1 ......1001

Budget authority:Appropriations, discretionary:

212121Appropriation ....................................................................1100Appropriations, mandatory:

.................20622Appropriation ....................................................................12002122743Budget authority (total) .............................................................19004624762Total budgetary resources available ..............................................1930










551Outlays from new discretionary authority ..........................4010128.................Outlays from discretionary balances .................................4011

17131Outlays, gross (total) .............................................................4020Mandatory:

.................20622Budget authority, gross .........................................................4090Outlays, gross:

.................20622Outlays from new mandatory authority .............................41002122743Budget authority, net (total) ..........................................................41801721923Outlays, net (total) ........................................................................4190

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)


Direct loan levels supportable by subsidy budget authority:314282128Historically Black Colleges and Universities ..............................115002

314282128Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

6.427.146.67Historically Black Colleges and Universities ..............................132002

6.427.146.67Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

20209Historically Black Colleges and Universities ..............................133002

20209Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

99.................Historically Black Colleges and Universities ..............................134002

99.................Total subsidy outlays .................................................................134999Direct loan reestimates:

.................–3917Historically Black Colleges and Universities ..............................135002

.................185–13HBCU Hurricane Supplemental ..................................................135003

.................1464Total direct loan reestimates .....................................................135999

Administrative expense data:111Budget authority .......................................................................3510111Outlays from new authority .......................................................3590

As required by the Federal Credit Reform Act of 1990, this account re-cords the subsidy costs associated with the direct loans obligated and loanguarantees committed in 1992 and beyond, as well as any administrativeexpenses for the College Housing and Academic Facilities Loans (CHAFL)Program and the Historically Black College and University (HBCU) Cap-ital Financing Program. The subsidy amounts are estimated on a presentvalue basis; the administrative expenses are on a cash basis. These programsare administered separately but consolidated in the Budget for presentationpurposes.

College housing and academic facilities loans program.—Funds for thisactivity pay the Federal costs of administering CHAFL, College HousingLoans (CHL), and Higher Education Facilities Loans (HEFL) programs.

Prior to 1994, these programs provided financing for the construction, re-construction, and renovation of housing, academic, and other educationalfacilities. Although no new loans have been awarded since 1993, the De-partment of Education will incur costs for administering the outstandingloans through 2030.

Historically Black college and university (HBCU) capital financingprogram.—The HBCU Capital Financing Program provides HBCUs withaccess to capital financing for the repair, renovation, and construction ofclassrooms, libraries, laboratories, dormitories, instructional equipment,and research instrumentation. The authorizing statute gives the Departmentauthority to enter into insurance agreements with a private for-profit Des-ignated Bonding Authority. The bonding authority issues the loans andmaintains an escrow account in which five percent of each institution'sprincipal is deposited. The Budget requests $20.1 million in new loansubsidies, allowing the program to guarantee an estimated $314 million innew loans in 2018. The Budget also requests a 2-year period of availabilityfor this loan subsidy. In addition, the Budget requests funds for the Federalcosts of administering the program and providing technical assistanceactivities that improve the financial stability of HBCUs.

Employment Summary


.................3.................Direct civilian full-time equivalent employment ............................1001

✦

COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS FINANCING ACCOUNT




11.................Payment of interest to Treasury .............................................0713

11.................Total new obligations, unexpired accounts ....................................0900


11.................Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Spending authority from offsetting collections, mandatory:111Collected ...........................................................................1800221Total budgetary resources available ..............................................1930



11.................New obligations, unexpired accounts ....................................3010–1–1.................Outlays (gross) ......................................................................3020

Financing authority and disbursements, net:Mandatory:

111Budget authority, gross .........................................................4090Financing disbursements:

11.................Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–1–1–1Interest repayments ..........................................................4123

...................................................Budget authority, net (total) ..........................................................4180

..................................–1Outlays, net (total) ........................................................................4190

Status of Direct Loans (in millions of dollars)


Cumulative balance of direct loans outstanding:555Outstanding, start of year .........................................................1210

555Outstanding, end of year .......................................................1290

347DEPARTMENT OF EDUCATIONOffice of Postsecondary Education—Continued


COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS FINANCING

ACCOUNT—Continued

Balance Sheet (in millions of dollars)

2016 actual2015 actualIdentification code 091–4252–0–3–502

ASSETS:Net value of assets related to post-1991 direct loans receivable:

55Direct loans receivable, gross ....................................................1401–1–1Allowance for subsidy cost (-) ....................................................1405

44Net present value of assets related to direct loans ................1499

44Total assets ...............................................................................1999LIABILITIES:

44Federal liabilities: Debt ..................................................................2103

44Total liabilities and net position .....................................................4999

✦

COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS LIQUIDATING ACCOUNT




443Payment of interest to Treasury .............................................0713

443Total new obligations, unexpired accounts (object class 43.0) .......0900


Appropriations, mandatory:111Appropriation ....................................................................1200

Spending authority from offsetting collections, mandatory:151514Collected ...........................................................................1800

–8–8–8Capital transfer of spending authority from offsetting

collections to general fund ...........................................1820

–4–4–4Spending authority from offsetting collections applied to

repay debt .....................................................................1825

332Spending auth from offsetting collections, mand (total) .......1850443Budget authority (total) .............................................................1900443Total budgetary resources available ..............................................1930



–4–4–3Outlays (gross) ......................................................................3020



Budget authority and outlays, net:Mandatory:


441Outlays from new mandatory authority .............................4100..................................2Outlays from mandatory balances ....................................4101

443Outlays, gross (total) .............................................................4110Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–15–15–14Non-Federal sources .........................................................4123–11–11–11Budget authority, net (total) ..........................................................4180–11–11–11Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:121125129Outstanding, start of year .........................................................1210–4–4–4Repayments: Repayments and prepayments .............................1251


As required by the Federal Credit Reform Act of 1990, the CollegeHousing and Academic Facilities Loans Liquidating Account records all

cash flows to and from the Government resulting from direct loans obligatedprior to 1992. This account includes loans made under the College Housingand Academic Facilities Loans, College Housing Loans, and Higher Edu-cation Facilities Loans programs, which continue to be administered separ-ately.



ASSETS:125129Direct loans, gross .........................................................................1601

32Interest receivable .........................................................................1602

128131Value of assets related to direct loans .......................................1699


Federal liabilities:2126Debt ...........................................................................................2103

107105Resources payable to Treasury ...................................................2104

128131Total liabilities ...........................................................................2999


✦

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING DIRECT LOAN

FINANCING ACCOUNT



Obligations by program activity:303043Interest paid to Treasury (FFB) ..................................................0004

..................................2Katrina Mod expenses ...............................................................0005

303045Direct program activities, subtotal ................................................0091Credit program obligations:

314282128Direct loan obligations ..........................................................0710.................423Downward reestimates paid to receipt accounts ...................0742.................1414Interest on downward reestimates ........................................0743




356177200Unobligated balance brought forward, Oct 1 .........................1000..................................–6Unobligated balances applied to repay debt .........................1023

356177194Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:314282128Borrowing authority ...........................................................1400


..................................–22Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825





–190–225–190Outlays (gross) ......................................................................3020

533379236Unpaid obligations, end of year .................................................3050Uncollected payments:

..................................–22Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................22Change in uncollected pymts, Fed sources, unexpired ..........3070Memorandum (non-add) entries:


THE BUDGET FOR FISCAL YEAR 2018348 Office of Postsecondary Education—ContinuedFederal Funds—Continued



190225190Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–9–210–22Federal sources .................................................................4120

–20–20–8Interest on uninvested funds ............................................4122–30–30–31Interest repayments ..........................................................4123–45–50–76Principal repayments ........................................................4123

–104–310–137Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):

..................................22Change in uncollected pymts, Fed sources, unexpired .......4140

26923758Budget authority, net (mandatory) ............................................416086–8553Outlays, net (mandatory) ...........................................................4170

26923758Budget authority, net (total) ..........................................................418086–8553Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:314282128Direct loan obligations from current-year authority ...................1111

314282128Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:1,5031,4351,383Outstanding, start of year .........................................................1210158123128Disbursements: Direct loan disbursements ...............................1231–55–55–76Repayments: Repayments and prepayments .............................1251

1,6061,5031,435Outstanding, end of year .......................................................1290

As required by the Federal Credit Reform Act of 1990, this non-budgetaryaccount records all cash flows to and from the Federal Government resultingfrom direct loans obligated in 1996 and beyond. The Federal FinancingBank (FFB) purchases bonds issued by the Historically Black College andUniversity (HBCU) Designated Bonding Authority. Under the policiesgoverning Federal credit programs, bonds purchased by the FFB and sup-ported by the Department of Education with a letter of credit create theequivalent of a Federal direct loan. HBCU bonds are also available forpurchase by the private sector, and these will be treated as loan guarantees.However, the Department anticipates that all HBCU loans will be financedby the FFB. The amounts in this account are a means of financing and arenot included in the budget totals.



ASSETS:150151Federal assets: Fund balances with Treasury .................................1101

Net value of assets related to post-1991 direct loans receivable:1,4351,383Direct loans receivable, gross ....................................................1401

129Interest receivable .....................................................................1402–150–151Allowance for subsidy cost (-) ....................................................1405

1,2971,241Net present value of assets related to direct loans ................1499

1,4471,392Total assets ...............................................................................1999LIABILITIES:

Federal liabilities:129Interest payable .........................................................................2102

1,4351,383Debt ...........................................................................................2103

1,4471,392Total liabilities ...........................................................................2999

1,4471,392Total liabilities and net position .....................................................4999

✦

OFFICE OF FEDERAL STUDENT AIDFederal Funds

STUDENT FINANCIAL ASSISTANCE

For carrying out subpart 1 of part A, and part C of title IV of the HEA,$22,932,626,000, which shall remain available through September 30, 2019.

The maximum Pell Grant for which a student shall be eligible during award year2018–2019 shall be $4,860.




Obligations by program activity:29,54929,14329,106Federal Pell grants ....................................................................0101

.................732733Federal supplemental educational opportunity grants

(SEOG) ...................................................................................0201

500988990Federal work-study ....................................................................0202

5001,7201,723Campus-based activities - Subtotal ..............................................0291



9,1028,66910,431Unobligated balance brought forward, Oct 1 .........................1000.................7,09510,431Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................28Recoveries of prior year unpaid obligations ...........................1021

9,1028,66910,459Unobligated balance (total) ......................................................1050Budget authority:


–3,900..................................Unobligated balance of appropriations permanently

reduced .........................................................................1131

19,03324,15324,198Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

7,0567,1434,841Appropriation ....................................................................120026,08931,29629,039Budget authority (total) .............................................................190035,19139,96539,498Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:5,1429,1028,669Unexpired unobligated balance, end of year ..........................1941




..................................–28Recoveries of prior year unpaid obligations, unexpired .........3040







20,71321,78323,854Outlays, gross (total) .............................................................4020Mandatory:


1,8072,4862,078Outlays from new mandatory authority .............................41004,8223,9513,950Outlays from mandatory balances ....................................4101




Cumulative balance of direct loans outstanding:396383347Outstanding, start of year .........................................................1210–35–34–38Repayments: Repayments and prepayments .............................1251464774Write-offs for default: Other adjustments, net (+ or -) ..............1264


Notes.—Figures include, in all years, institutional matching share of defaulted notes assigned from institutionsto the Education Department.

349DEPARTMENT OF EDUCATIONOffice of Federal Student Aid

Federal Funds

STUDENT FINANCIAL ASSISTANCE—Continued

Funding from the Student Financial Assistance account and relatedmatching funds would provide more than 7.6 million awards totaling morethan $29.3 billion in available aid in award year 2017–2018.

Federal Pell grants.—Pell Grants are the single largest source of grantaid for postsecondary education. Funding for this program is provided fromtwo sources: discretionary and mandatory budget authority provided bythe College Cost Reduction and Access Act, as amended, and changes tothe Higher Education Act of 1965 made in the 2012 appropriations act.

In 2018, over 7.2 million undergraduates will receive up to $4,860 fromthe discretionary award and an additional $1,060 from the mandatory add-on to help pay for postsecondary education. Undergraduate students estab-lish eligibility for these grants under award and need determination rulesset out in the authorizing statute and annual appropriations act. The 2018Budget request includes $22.4 billion in discretionary funding for PellGrants in 2018, which, when combined with mandatory funding, willsupport a projected maximum award of $5,920.

The Budget supports year-round Pell Grant eligibility to allow studentsthe opportunity to earn a third semester of Pell Grant support—up to anadditional 50 percent of their regular Pell Grant award—during an awardyear in which they have exhausted their eligibility and enroll in additionalcoursework, ensuring that students can accelerate their studies and enterthe workforce on time.

Federal supplemental educational opportunity grants (SEOG).—Federalfunds are awarded by formula to qualifying institutions, which use thesefunds to award grants to undergraduate students. While institutions havediscretion in awarding these funds, they are required to give priority to PellGrant recipients and other students with exceptional need. The Federalshare of these grants cannot exceed 75 percent of the total grant. The 2018Budget proposes to eliminate this program, since it is largely duplicativeof the Pell Grant program while at the same time delivering need-basedaid in a much less targeted way.

Federal work-study.—Federal funds are awarded by formula to qualifyinginstitutions, which provide part-time jobs to eligible undergraduate andgraduate students. Hourly earnings under this program must be at least theFederal minimum wage. Federal funding, in most cases, pays 75 percentof a student's hourly wages, with the remaining 25 percent paid by theemployer. The Federal Work-Study program also requires participatinginstitutions to use at least seven percent of their total funds for studentsemployed in community service jobs. The 2018 Budget includes $500.0million for Work-Study, which would generate $553.7 million in aid to332,600 students. The President's 2018 Budget proposes to reform thepoorly targeted Work Study program to ensure funds go to undergraduatestudents who would benefit most.

Federal Perkins loans.—Institutions award low-interest loans from insti-tutional revolving funds, which comprise Federal Capital Contributions,institutional matching funds, and student repayments on outstanding loans.No new Federal Capital Contributions have been appropriated since 2004,and the program was authorized through September 30, 2017 by the FederalPerkins Loan Program Extension Act of 2015. The program will no longerbe authorized beginning in fiscal year 2018 and no new loans will be dis-bursed.

Iraq and Afghanistan service grants.—This program provides non-need-based grants to students whose parent or guardian was a member of theArmed Forces and died in Iraq or Afghanistan as a result of performingmilitary service after September 11, 2001. Grants are equal to the maximumPell Grant for a given award year, which is $5,920 for the 2017–2018 awardyear.

Funding tables.—The following tables display student aid funds available,the number of aid awards, average awards, and the unduplicated count ofrecipients from each Federal student aid program. Loan amounts reflectthe amount actually loaned to borrowers, not the Federal cost of these loans.The data in these tables include matching funds wherever appropriate. The2018 data in these tables reflect the Administration's Budget proposals.

AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

[in thousands of dollars]201820172016

$28,806,595$26,899,285$26,861,935Pell grants ................................................................................................Student loans:

14,527,75522,564,58822,423,476Subsidized Stafford loans ....................................................................34,802,89324,007,17723,553,227Unsubsidized Stafford loans (Undergraduates) ....................................29,636,57227,643,35527,089,724Unsubsidized Stafford loans (Graduate students) ................................64,439,46451,650,53250,642,951Unsubsidized Stafford loans (total) ..................................................14,307,68813,342,75112,934,325Parent PLUS loans ................................................................................11,485,7719,891,1819,461,308Grad PLUS loans ...................................................................................25,793,45923,233,93122,395,632PLUS loans (total) ............................................................................48,200,81946,927,10345,633,297Consolidation .......................................................................................

0782,230782,230Perkins loans ........................................................................................

152,961,497145,158,384141,877,586Student loans, subtotal ........................................................................553,7281,093,9971,096,080Work-study ...............................................................................................

0990,987992,875Supplemental educational opportunity grants ..........................................559484432Iraq and Afghanistan service grants ........................................................

101,17392,80491,000TEACH grants ...........................................................................................

182,423,553174,235,941170,919,908Total aid available ................................................................................

NUMBER OF AID AWARDS

[in thousands]2018201720167,2817,1437,213Pell grants ................................................................................................4,0816,9346,894Subsidized Stafford loans .........................................................................7,8687,0096,940Unsubsidized Stafford loans (Undergraduates) ........................................2,0311,9451,918Unsubsidized Stafford loans (Graduate students) ....................................1,0701,0201,005Parent PLUS loans ....................................................................................620572562Grad PLUS loans .......................................................................................826821813Consolidation loans ..................................................................................

0253316Perkins loans ............................................................................................333634635Work-study ...............................................................................................

01,5271,530Supplemental educational opportunity grants ..........................................

010101Iraq and Afghanistan service grants ........................................................

333232TEACH grants ...........................................................................................

24,14327,89127,859Total awards .........................................................................................

1Number of recipients is fewer than 1,000. Numbers may not add due to rounding.

AVERAGE AID AWARDS

[in whole dollars]2018201720163,9563,7663,724Pell grants ................................................................................................3,5603,2543,252Subsidized Stafford loans .........................................................................4,4233,4253,394Unsubsidized Stafford loans (Undergraduates) ........................................

14,59114,21114,121Unsubsidized Stafford loans (Graduate students) ....................................13,36613,08712,865Parent PLUS loans ....................................................................................18,52217,28516,832Grad PLUS loans .......................................................................................58,32757,14156,103Consolidation loans ..................................................................................

03,0862,479Perkins loans ............................................................................................1,6651,7261,726Work-study ...............................................................................................

0649649Supplemental educational opportunity grants ..........................................5,3754,9904,909Iraq and Afghanistan service grants ........................................................3,0842,8852,885TEACH grants ...........................................................................................

NUMBER OF STUDENTS AIDED

[in thousands]20182017201612,22011,89911,869Unduplicated student count .....................................................................

ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

[in thousands of dollars]20182017201636,40535,71536,065Pell grants ................................................................................................24,56348,52848,621Work-study ...............................................................................................

014,49614,524Supplemental educational opportunity grants ..........................................036,42836,428Perkins loans ............................................................................................

✦

STUDENT AID ADMINISTRATION

For Federal administrative expenses to carry out part D of title I, and subparts1, 3, 9, and 10 of part A, and parts B, C, D, and E of title IV of the HEA, and subpart1 of part A of title VII of the Public Health Service Act, $1,697,711,000, to remainavailable through September 30, 2019.

Note.—A full-year 2017 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the Further Continu-

THE BUDGET FOR FISCAL YEAR 2018350 Office of Federal Student Aid—ContinuedFederal Funds—Continued

ing Appropriations Act, 2017 (P.L. 114–254). The amounts included for 2017 reflect the annu-alized level provided by the continuing resolution.



Obligations by program activity:680694735Student aid administration .......................................................0001

1,018857838Discretionary servicing activities ..............................................0002



.................22Unobligated balance brought forward, Oct 1 .........................1000

..................................2Discretionary unobligated balance brought fwd, Oct 1 ......1001

..................................23Recoveries of prior year unpaid obligations ...........................1021

.................225Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:1,6981,5491,552Appropriation ....................................................................11001,6981,5491,552Budget authority (total) .............................................................19001,6981,5511,577Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–2Unobligated balance expiring ................................................1940..................................2Unexpired unobligated balance, end of year ..........................1941



–1,555–1,365–1,510Outlays (gross) ......................................................................3020..................................–23Recoveries of prior year unpaid obligations, unexpired .........3040..................................–4Recoveries of prior year unpaid obligations, expired .............3041

1,057914728Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

914728692Obligated balance, start of year ............................................31001,057914728Obligated balance, end of year ..............................................3200





The Department of Education manages Federal student aid programs thatwill provide nearly $134 billion in new Federal student aid grants and loans(excluding Direct Consolidation Loans) to 12.2 million students and parentsin 2018. The Offices of Postsecondary Education, the Under Secretary andFederal Student Aid (FSA) are primarily responsible for administering theFederal student financial assistance programs. FSA was created by theCongress in 1998 with a mandate to improve service to students and otherstudent aid program participants, reduce student aid administration costs,and improve accountability and program integrity.

Student Aid Administration

The 2018 Budget includes $681 million for student aid administrationactivities and $1.017 billion for loan servicing activities, for a total of$1.698 billion in discretionary budget authority. Administrative functionssupported by these discretionary funds include: maintaining operations forstudent aid application processing, origination, disbursement functions,and student aid information technology system hosting; servicing the De-partment's loan portfolio; and enhancing security across applications.

Servicing costs are largely determined by volume (borrower accountsper month) and the negotiated contractual per-borrower price for each typeof loan status (such as in-school, repayment, deferment, and forbearance).Changes in the distribution of borrowers in each loan status affect the totaloverall cost for servicing since servicers are paid more for in-repaymentborrowers than for in-school borrowers and less for borrowers who aredelinquent than those who are current. The servicing contracts' incentive-

based pricing and the contracts' performance metrics are designed to en-courage high-quality customer service and help borrowers stay current.Servicing costs in 2018 have increased over past years and will continueto do so, as the Direct Loan program's total number of borrowers continueto increase and as the portfolio shifts with borrowers moving from in-schoolto more expensive in-repayment status.



Direct obligations:Personnel compensation:

171173157Full-time permanent .............................................................11.1.................12Other than full-time permanent ............................................11.3

122Other personnel compensation ..............................................11.5

172176161Total personnel compensation ...........................................11.9545450Civilian personnel benefits ........................................................12.1212Travel and transportation of persons .........................................21.0

202020Rental payments to GSA ............................................................23.1311Printing and reproduction .........................................................24.01.................6Advisory and assistance services ..............................................25.1

1,066942942Other services from non-Federal sources ..................................25.2303232Other goods and services from Federal sources ........................25.3

350325359Operation and maintenance of equipment ................................25.7


Employment Summary


1,5241,5551,453Direct civilian full-time equivalent employment ............................1001

✦

TEACH GRANT PROGRAM ACCOUNT




251514Direct loan subsidy ................................................................0701.................1213Reestimates of direct loan subsidy .......................................0705.................18.................Interest on reestimates of direct loan subsidy .......................0706



Appropriations, mandatory:251515Appropriation (indefinite) - Loan subsidy ..........................1200

.................1393Appropriation (indefinite) - Upward reestimate ................1200



2515417Appropriations, mandatory (total) .........................................12602515417Total budgetary resources available ..............................................1930








1614812Outlays from new mandatory authority .............................4100444Outlays from mandatory balances ....................................4101


351DEPARTMENT OF EDUCATIONOffice of Federal Student Aid—Continued


TEACH GRANT PROGRAM ACCOUNT—Continued



Direct loan levels supportable by subsidy budget authority:109100105TEACH Grants ............................................................................115001

Direct loan subsidy (in percent):22.6014.9713.05TEACH Grants ............................................................................132001

22.6014.9713.05Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

251514TEACH Grants ............................................................................133001Direct loan subsidy outlays:

201313TEACH Grants ............................................................................134001Direct loan reestimates:

.................138–2TEACH Grants ............................................................................135001

The TEACH Grant program, authorized by the College Cost Reductionand Access Act of 2007, awards annual grants of up to $4,000 to full- orpart-time undergraduate and graduate students who agree to teach mathem-atics, science, foreign languages, bilingual education, special education,or reading at a high-poverty school for not less than four years within eightyears of graduation. The program began awarding grants in the 2008–2009award year. Students must have a grade point average of 3.25 or higher tobe eligible to receive a grant. Students who fail to fulfill the service require-ments must repay the grants, including interest accrued from the time ofaward.

Because TEACH Grants turn into loans in cases where the service require-ments are not fulfilled, for budget and accounting purposes the program isoperated consistent with the requirements of the Federal Credit ReformAct of 1990. This program account records subsidy costs reflecting the netpresent value of the estimated lifetime Federal program costs for grantsawarded in a given fiscal year. Under this approach the subsidy cost reflectsthe cost of grant awards net of expected future repayments for grants thatare converted to loans.

✦

TEACH GRANT FINANCING ACCOUNT



Obligations by program activity:111Payment contract collection costs .............................................0401

Credit program obligations:109100105Direct loan obligations ..........................................................0710161922Payment of interest to Treasury .............................................0713

..................................5Downward reestimates paid to receipt accounts ...................0742




.................32Unobligated balance brought forward, Oct 1 .........................1000647Recoveries of prior year unpaid obligations ...........................1021

.................–3–5Unobligated balances applied to repay debt .........................1023–6–4–4Unobligated balance of borrowing authority withdrawn ........1024

Financing authority:Borrowing authority, mandatory:

8686100Borrowing authority ...........................................................1400Spending authority from offsetting collections, discretionary:

3..................................Change in uncollected payments, Federal sources ............1701Spending authority from offsetting collections, mandatory:

8721558Collected ...........................................................................1800


repay debt .....................................................................1825




706759Unpaid obligations, brought forward, Oct 1 ..........................3000

126120133New obligations, unexpired accounts ....................................3010–118–113–118Outlays (gross) ......................................................................3020

–6–4–7Recoveries of prior year unpaid obligations, unexpired .........3040


–4–4–4Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–3..................................Change in uncollected pymts, Fed sources, unexpired ..........3070

–7–4–4Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:


Financing authority and disbursements, net:Discretionary:

3..................................Budget authority, gross .........................................................4000Additional offsets against gross financing authority only:

–3..................................Change in uncollected pymts, Fed sources, unexpired .......4050Mandatory:



Offsetting collections (collected) from:.................–138–3Upward Reestimate ...........................................................4120

–20–13–13Subsidy from Program Account .........................................4120..................................–3Interest on uninvested funds ............................................4122

–59–57–31Payment of Principal .........................................................4123–8–7–8Interest Received ..............................................................4123

–87–215–58Offsets against gross budget authority and outlays (total) ....4130

36–9578Budget authority, net (mandatory) ............................................416031–10260Outlays, net (mandatory) ...........................................................417036–9578Budget authority, net (total) ..........................................................418031–10260Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:109100105Direct loan obligations from current-year authority ...................1111

109100105Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:734698641Outstanding, start of year .........................................................1210999288Disbursements: Direct loan disbursements ...............................1231

–59–56–31Repayments: Repayments and prepayments .............................1251


As required by the Federal Credit Reform Act of 1990, this nonbudgetaryaccount records all cash flows to and from the Government resulting fromthe TEACH Grant program. Amounts in this account are a means of finan-cing and are not included in the budget totals.




Net value of assets related to post-1991 direct loans receivable:698641Direct loans receivable, gross ....................................................140110197Interest receivable .....................................................................1402

–109–108Allowance for subsidy cost (-) ....................................................1405

690630Net present value of assets related to direct loans ................1499


Federal liabilities:......................................................Accounts payable .......................................................................2101

713646Debt ...........................................................................................2103

713646Total liabilities ...........................................................................2999


✦


STUDENT FINANCIAL ASSISTANCE DEBT COLLECTION

Special and Trust Fund Receipts (in millions of dollars)


111Balance, start of year ....................................................................0100Receipts:

Current law:10109Student Financial Assistance Debt Collection .......................1130

111110Total: Balances and receipts .....................................................2000Appropriations:

Current law:–10–10–9Student Financial Assistance Debt Collection .......................2101

..................................–1Student Financial Assistance Debt Collection .......................2103

..................................1Student Financial Assistance Debt Collection .......................2132

–10–10–9Total current law appropriations .......................................2199

–10–10–9Total appropriations ..................................................................2999

111Balance, end of year ..................................................................5099



Obligations by program activity:331Student Financial Assistance Debt Collection ...........................0001



101214Unobligated balance brought forward, Oct 1 .........................1000–7–9–9Capital transfer of unobligated balances to general fund ......1022


Appropriations, mandatory:10109Appropriation (special or trust fund) .................................1201

..................................1Appropriation (previously unavailable) .............................1203


appropriations temporarily reduced ..............................1232

..................................–1Capital transfer of appropriations to general fund ...........1235

10108Appropriations, mandatory (total) .........................................1260131313Total budgetary resources available ..............................................1930




–3–3–1Outlays (gross) ......................................................................3020





331Outlays from mandatory balances ....................................410110108Budget authority, net (total) ..........................................................4180331Outlays, net (total) ........................................................................4190

✦

FEDERAL STUDENT LOAN RESERVE FUND



Obligations by program activity:6,7027,4758,970Obligations, non-Federal ...........................................................0102



1,7181,1961,561Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Spending authority from offsetting collections, mandatory:7,1707,9978,612Collected ...........................................................................1800

..................................–7Capital transfer of spending authority from offsetting


7,1707,9978,605Spending auth from offsetting collections, mand (total) .......18508,8889,19310,166Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:2,1861,7181,196Unexpired unobligated balance, end of year ..........................1941


.................1.................Unpaid obligations, brought forward, Oct 1 ..........................30006,7027,4758,970New obligations, unexpired accounts ....................................3010

–6,702–7,476–8,969Outlays (gross) ......................................................................3020

..................................1Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................1.................Obligated balance, start of year ............................................3100

..................................1Obligated balance, end of year ..............................................3200



6,6437,4098,605Outlays from new mandatory authority .............................41005967364Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–6,643–7,409–8,332Federal sources .................................................................4120–527–588–280Non-Federal sources .........................................................4123

–7,170–7,997–8,612Offsets against gross budget authority and outlays (total) ....4130

..................................–7Budget authority, net (mandatory) ............................................4160–468–521357Outlays, net (mandatory) ...........................................................4170

..................................–7Budget authority, net (total) ..........................................................4180–468–521357Outlays, net (total) ........................................................................4190

The Higher Education Amendments of 1998 clarified that reserve fundsheld by public and non-profit guaranty agencies participating in the FederalFamily Education Loan (FFEL) program are Federal property. These re-serves are used to pay default claims from FFEL lenders and fees to supportagency efforts to avert defaults. The Federal Government reimburses thesereserves for default claim payments. The Consolidated Appropriations Act,2016, increased guaranty agency reinsurance payments from 95 percentof the face value of loans to 100 percent. The following schedule reflectsthe balances in these guaranty agency funds.



ASSETS:1,1961,561Federal assets: Fund balances with Treasury .................................1101

1,1961,561Total assets ...............................................................................1999NET POSITION:

1,1961,561Cumulative results of operations ...................................................3300


✦

FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT




.................1,609.................Direct loan subsidy ................................................................0701

.................364.................Subsidy for modifications of direct loans ..............................0703

.................28,8428,646Reestimates of direct loan subsidy .......................................0705

.................6,5781,232Interest on reestimates of direct loan subsidy .......................0706



FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued



.................37,3939,878Total new obligations (object class 41.0) ......................................0900


Appropriations, mandatory:.................37,3939,878Appropriation (indefinite) ..................................................1200.................37,3939,878Total budgetary resources available ..............................................1930


166Unpaid obligations, brought forward, Oct 1 ..........................3000.................37,3939,878New obligations, unexpired accounts ....................................3010

–1–37,398–9,878Outlays (gross) ......................................................................3020

.................16Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

166Obligated balance, start of year ............................................3100.................16Obligated balance, end of year ..............................................3200


.................37,3939,878Budget authority, gross .........................................................4090Outlays, gross:

.................37,3939,878Outlays from new mandatory authority .............................410015.................Outlays from mandatory balances ....................................4101

137,3989,878Outlays, gross (total) .............................................................4110.................37,3939,878Budget authority, net (total) ..........................................................4180

137,3989,878Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:26,55825,73927,022Stafford .....................................................................................11500164,19659,51460,598Unsubsidized Stafford ...............................................................11500227,05624,34722,103PLUS ..........................................................................................11500348,21046,93645,917Consolidation ............................................................................115004

166,020156,536155,640Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

8.208.764.98Stafford .....................................................................................132001–9.94–8.97–17.14Unsubsidized Stafford ...............................................................132002

–27.98–25.54–28.36PLUS ..........................................................................................13200313.8615.6413.38Consolidation ............................................................................132004

–3.07–1.25–5.89Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

2,1782,2551,346Stafford .....................................................................................133001–6,381–5,338–10,386Unsubsidized Stafford ...............................................................133002–7,570–6,218–6,268PLUS ..........................................................................................1330036,6827,3416,144Consolidation ............................................................................133004

–5,091–1,960–9,164Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

1,9271,7942,355Stafford .....................................................................................134001–5,299–6,435–13,671Unsubsidized Stafford ...............................................................134002–6,778–6,148–8,492PLUS ..........................................................................................1340036,6847,48914,112Consolidation ............................................................................134004

.................364.................Federal Direct Student Loans ....................................................134005

–3,466–2,936–5,696Total subsidy outlays .................................................................134999Direct loan reestimates:

.................28,4307,693Federal Direct Student Loans ....................................................135005

.................28,4307,693Total direct loan reestimates .....................................................135999

Administrative expense data:15.................Outlays from balances ..............................................................3580

The Federal Government has two major student loan programs: the Fed-eral Family Education Loan (FFEL) program and the William D. FordFederal Direct Loan (Direct Loan) program. The Student Aid and FiscalResponsibility Act eliminated the authorization to originate new FFELloans; as of July 1, 2010, the Direct Loan program originates all new loans.This narrative outlines the structure of these two programs and providestext tables displaying program cost data; loan volume, subsidy, default,and interest rates; and other descriptive information.

From its inception in 1965 through the end of June 2010, the FFEL pro-gram guaranteed almost $899 billion in loans to postsecondary studentsand their parents. Although no new FFEL loans have been originated sinceJuly 1, 2010, $232 billion of outstanding FFEL loans continue to be servicedby lenders and guaranty agencies. The 2018 Budget proposes to eliminatethe payment of Account Maintenance Fees to guaranty agencies.

Under the Direct Loan program, the Federal Government provides loancapital through the Treasury while the Department of Education loan ori-gination and servicing is handled by private and not-for-profit loan servicersunder performance-based contracts with the Department. The Direct Loanprogram began operation in award year 1994–1995, originating sevenpercent of overall loan volume. In 2018, excluding Consolidation Loans,the Direct Loan program will make $104.8 billion in new loans available.

The Direct Loan program offers four types of loans: Subsidized Stafford;Unsubsidized Stafford; PLUS; and Consolidation. Loans can be used forqualified educational expenses. Undergraduates with financial need mayreceive a subsidized Stafford loan (graduate and professional students arenot eligible). The other three loan programs are available to borrowers atall income levels. The Bipartisan Student Loan Certainty Act of 2013changed how student loan interest rates are set. The rates are set annuallyfor loans originated in the upcoming award year based on the 10-yearTreasury note; those rates will remain fixed for the life of the loan. ForSubsidized Stafford loans available to undergraduates, the interest rate willbe equal to the 10-year Treasury note plus 2.05 percent and capped at 8.25percent. Loans originated in award year 2016–2017 have an interest rateof 3.76 percent. Interest payments for these loans are fully subsidized bythe Federal Government while a student is in school (up to 150 percent ofprogram length) and during grace and deferment periods. The interest rateon new Unsubsidized Stafford loans for undergraduate borrowers is thesame as that on subsidized Stafford loans for undergraduates. The Unsub-sidized Stafford loan interest rate for graduate and professional students isequal to the 10-year Treasury note plus 3.6 percent and capped at 9.5 per-cent. Loans originated in award year 2016–2017 have an interest rate of5.31 percent. The borrower interest rate on PLUS loans to graduate andprofessional students and parents of undergraduate borrowers is equal tothe 10-year Treasury note plus 4.6 percent and capped at 10.5 percent.PLUS loans originated in award year 2016–2017 have an interest rate of6.31 percent.

Consolidation loans allow borrowers to combine FFEL, Direct Loans,and Perkins Loans, as well as some loans made under the Public HealthService Act. The interest rate for new Consolidation loans equals theweighted average of the interest rate on the loans consolidated, roundedup to the nearest one-eighth of a percent.

For most types of Direct Loans, the origination fee is a base rate of onepercent, but an additional surcharge for sequestration was added in 2013,2014, 2015, 2016 and 2017. The base origination fee for PLUS loans isfour percent, but has included an additional surcharge in 2013, 2014, 2015,2016 and 2017.

Borrowers may choose from four basic types of repayment plans: stand-ard; graduated; extended (available for qualified borrowers who have out-standing loans of more than $30,000); and income-driven. FFEL borrowersmay change repayment plans annually. Direct Loan borrowers may switchbetween repayment plans at any time. The maximum repayment period is10 years for standard and graduated plans, as well as the income-sensitiverepayment plan that is available only for FFEL loans. Under the currentincome-driven administrative Pay As You Earn (PAYE) and statutory In-come-Based-Repayment (IBR) plans, for new borrowers after 2014, therepayment period is 20 years. Under the current income-driven administrat-ive Revised PAYE plan, the repayment period is 20 or 25 years dependingon whether the borrower has any graduate school loans. And, under theextended, former IBR (for borrowers prior to 2014), and income-contingentrepayment plans, the maximum time is 25 years. PAYE and IBR requirepartial financial hardship in order to qualify for reduced payments andborrowers in those plans have their monthly payments capped at the monthly


payment of the 10-year Standard plan. At the end of the repayment term,the borrower's remaining balance is forgiven.

Federal student loans have other benefits. For example, Federal studentloans can be discharged when borrowers die, become totally and perman-ently disabled, or, under some circumstances, declare bankruptcy. In addi-tion, there are several loan forgiveness programs. For example, new bor-rowers after October 1, 1998, who are employed as teachers in schoolsserving low-income populations for five consecutive, complete schoolyears, qualify for up to $5,000 in loan forgiveness; this benefit is increasedto $17,500 for mathematics, science, and special education teachers con-sidered highly qualified under criteria established in the Elementary andSecondary Education Act. In addition, under the Public Sector Loan For-giveness Program, qualifying borrowers who have worked for 10 years inthe public sector and made 120 qualifying monthly payments in thestandard or income-driven plans can have any remaining loan balanceforgiven. This benefit is only available in the Direct Loan program, thoughFFEL borrowers may receive the benefit by taking out a Direct Consolida-tion Loan. Forgiveness is available for all Direct Loan borrowers, regardlessof when they took out their loans.

The 2018 Budget would replace the five current Income Driven repayment(IDR) plans with one new single IDR plan to make choosing a repaymentplan less complex. The new IDR plan would become the only income-driven repayment plan for borrowers who originate their first loan on orafter July 1, 2018, with an exception for students who borrowed their firstloans prior to July 1, 2018 and who are borrowing to complete their currentcourse of study. The single IDR plan would: cap payments at 12.5% ofdiscretionary monthly income while eliminating the standard repaymentcap; limit loan payments to 15 years for borrowers with undergraduate debtonly and 30 years for borrowers with any graduate debt—any remainingamounts owed after these repayment periods would be forgiven; calculatepayments for married borrowers filing separately on the combined house-hold Adjusted Gross Income; and eliminate Public Service Loan Forgive-ness. The 2018 Budget would also eliminate Subsidized Stafford loans. Aswith the single IDR plan, this policy would apply to loans originated onor after July 1, 2018, with an exception for students continuing to borrowto complete their current course of study.

The following tables display performance indicators and program data;including projected overall Direct Loan and FFEL costs default rates.

Federal Budget Authority and Outlays

(in thousands of dollars)2018 est.2017 est.2016 actual

PROGRAM COST:FFEL:

($215,075)($243,075)($174,503)Liquidating1 .........................................................................................Program:

010,785,834(1,226,278)Net Reestimate of Prior Year Costs ...................................................

(443,409)0151,588Net Modification2 .............................................................................

(443,409)10,785,834(1,074,691)Subtotal, Program ........................................................................

(658,484)10,542,759(1,249,194)Total, FFEL ...............................................................................Direct Loans:

Program:(10,662,798)(1,961,127)(9,165,366)New Loan Subsidies .........................................................................

028,430,2327,693,290Net Reestimate of Prior Year Costs ...................................................

0364,3940Net Modification3 .............................................................................

(10,662,798)26,833,498(1,472,077)Total, Direct Loans .......................................................................

(11,321,281)37,376,257(2,721,270)Total, FFEL and Direct Loans ........................................................PROGRAM COST OUTLAYS:FFEL:

(215,075)(243,075)(290,144)Liquidating1 .........................................................................................Program:

010,785,834(1,226,278)Net Reestimate of Prior Year Costs ...................................................

(443,409)0151,588Net Modification2 .............................................................................

(443,409)10,785,834(1,074,691)Subtotal, Program ........................................................................

(658,484)10,542,759(1,364,835)Total, FFEL ...............................................................................Direct Loans:

Program:(7,061,037)(3,300,632)(5,696,466)Regular ............................................................................................

028,430,2327,693,290Net Reestimate of Prior Year Costs ...................................................

0364,3940Net Modification3 .............................................................................

(7,061,037)25,493,9941,996,823Total, Direct Loans .......................................................................

(7,719,520)36,036,753631,989Total, FFEL and Direct Loans ........................................................

Details may not sum to totals due to rounding.1Liquidating account reflects loans made prior to 1992.2Reflects the cost in 2016 associated with policy changes passed in the Consolidated Appropriations Act of 2016 andproposed savings in 2018 from eliminating Account Maintenance Fees paid to guaranty agencies.3Reflects the cost in 2017 associated with refunding borrowers for closed schools.

Summary of Default Rates1

(expressed as percentages)2018 est.2017 est.2016 est.

Direct Loans:17.8121.7221.67Stafford ....................................................................................................

Unsubsidized Stafford25.8623.9923.96Undergraduate .................................................................................5.855.835.82Graduate/Professional ......................................................................

PLUS7.917.897.91Parent PLUS .....................................................................................5.775.755.75Grad PLUS ........................................................................................

18.4618.8919.18Consolidation .......................................................................................

15.7015.7615.87Weighted Average, Direct Loans .......................................................

1Default rates displayed in this table, which reflect projected defaults over the life of a loan cohort, are used in devel-oping program cost estimates. The Department uses other rates based on defaults occurring in the first 3 years ofrepayment to determine institutional eligibility to participate in Federal loan programs. These 3-year rates are lowerthan those included in this table.

FFEL program payments are made to lenders (interest subsidies, loandefaults, and discharges) and guaranty agencies (default collection costs,administrative services). These payments are partially offset by an annualconsolidation loan holder fee. In Direct Loans, cash outflows are primarilypayments to Treasury. Cash inflows include principal and interest paymentson outstanding Direct Loans.

The following table shows Government payments to and from lenders,guaranty agencies, and borrowers for specific years, regardless of whenloans were originated. These flows do not reflect long-term costs to theGovernment, nor the value of outstanding loan assets, which are reflectedin credit reform subsidy estimates.

The Federal Credit Reform Act of 1990 accounts for differences in theamount and timing of cash flows among direct and guaranteed loan pro-grams to make cost estimates for these programs comparable with eachother and other Federal programs.

Selected Program Costs and Offsets

(in thousands of dollars)2018 est.2017 est.2016 actual

FFEL:Payments to lenders:

$129,404$192,895$1,007,797Interest benefits ...................................................................................

(972,619)(1,767,489)(3,502,716)Special allowance payments1 ...............................................................4,313,5974,943,4057,101,884Default claims ......................................................................................827,7391,065,3141,722,788Loan discharges ...................................................................................

5,22130,496104,078Teacher loan forgiveness ......................................................................

0136,577142,919Administrative payments to guaranty agencies ........................................

Fees paid to the Department of Education:(544,667)(706,538)(1,463,919)Loan holder fees ...................................................................................

Other Major Transactions:(7,593,228)(8,469,986)(9,623,919)Net default collections .........................................................................

83,36376,10442,854Contract collection costs ......................................................................40,68035,21833,540Federal administrative costs ................................................................

(3,710,510)(4,464,004)(4,434,958)Net Cash Flow, FFEL .....................................................................Ensuring Continued Access to Student Loans (ECASLA):

(12,047,809)(15,491,436)(11,968,494)Inflows .................................................................................................12,047,80915,491,43610,697,733Outflows ...............................................................................................

172,890149,675142,547Federal administrative costs ................................................................

172,890149,675(1,128,214)Net Cash Flow, ECASLA ................................................................Direct Loans:

150,983,835143,437,289140,527,536Loan disbursements to borrowers .........................................................(22,757,049)(18,598,606)(14,469,296)Borrower interest payments ..................................................................(67,155,101)(54,788,717)(53,824,034)Borrower principal payments ................................................................(1,813,878)(1,772,163)(1,685,088)Borrower origination fees .....................................................................(7,992,352)(7,106,554)(3,197,461)Net default collections .........................................................................



FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued

Selected Program Costs and Offsets—Continued

2018 est.2017 est.2016 actual1,447,7961,334,344629,339Contract collection costs ......................................................................930,389821,742686,868Federal administrative costs ................................................................

53,643,63963,327,33468,667,864Net operating cash flows ..................................................................(150,983,835)(143,437,289)(140,527,536)Loan capital borrowings from Treasury .................................................29,560,07527,610,91826,560,447Net interest payments to Treasury ........................................................68,583,55288,987,93452,229,116Principal payments to Treasury ............................................................

(52,840,209)(26,838,438)(61,737,942)Subtotal, Treasury activity ................................................................

803,43036,488,8976,929,921Net Cash Flow, Direct Loans .........................................................

1Includes Negative Special Allowance Payments.

Student Loan Program Costs: Analysis of Direct Loans Including Program and AdministrativeExpenses

(expressed as percentages)2018 est.2017 est.2016 actual

Direct Loans:New Loans:

4.408.7612.17Stafford ....................................................................................................Unsubsidized Stafford

- 8.58–5.541.70Undergraduate .................................................................................–17.78–11.95–5.53Graduate/Professional ......................................................................

PLUS–31.49–32.84–23.00Parent PLUS .....................................................................................–27.47–15.69–16.09Grad PLUS ........................................................................................

–14.27- 8.43–2.63Subtotal, new loan subsidy ..........................................................

1.701.701.70Federal administrative costs ............................................................

–12.57- 6.73–0.93Subtotal, new loans .....................................................................

Consolidation Loans12.8615.643.01Loan subsidy ........................................................................................0.380.380.38Federal administrative costs ................................................................

13.2416.023.39Subtotal, consolidation loans .......................................................

New and Consolidation Loans–6.39–1.21–0.95Loan subsidy ........................................................................................1.451.451.45Federal administrative costs ................................................................

–4.940.240.50Total, Direct Loans ....................................................................................

Totals may not add due to rounding. Subsidies are weighted on Gross Volumes.Notes: For 2016, the rates are current; these include the actual executed rates for 2016 and the effect of re-estimateson those rates.

The table above describes Direct Loan costs on a subsidy rate basis:program costs calculated under the Federal Credit Reform Act of 1990 andcomparably projected estimates of Federal administrative costs. As withany long-term projection, the comparison is based on assumed future interestrates, borrower characteristics, administrative costs, and other factors overthe life of the loan cohort. To the degree actual conditions differ fromprojections, estimated subsidy rates will change.

The Federal Credit Reform Act of 1990 requires the cost of existing loancohorts to be reestimated to reflect changes in actual and assumed borrowerbehavior, interest rates, and other factors. The following table shows theimpact of these reestimates in FFEL and Direct Loans.

Loan Disbursement and Subsidy Costs

(in billions of dollars)Direct LoansFFEL

-$111.0+$77.1Original Subsidy Costs ....................................................................................................+$47.4-$51.0Cumulative Reestimates .................................................................................................-$63.6+$26.1Net Subsidy Costs ...........................................................................................................

+$1,213.5+$898.7Total Disbursements ........................................................................................................

Changes in interest rate projections are a significant factor in FFEL andDirect Loan reestimates; recent declines in interest rates below historicalaverages have been a major driver in changes to program costs. In addition,updates to the collections on defaults assumption had a significant impacton both programs. For Direct Loans, several other assumptions were rees-timated that contributed to the large upward reestimate, including Death,Disability, and Bankruptcy rates, and updates to reflect the increasednumber of borrowers enrolled in income-driven plans. Model assumptionsaffecting the 2016 cohort were also updated. These technical assumptions

were not updated in the 2017 Budget due to the requirement in the FederalCredit Reform Act that estimates be based on current assumptions, asdefined in section 250(c)(9) of the Balanced Budget and Emergency DeficitControl Act of 1985.

Direct Loan Repayment Options

(expressed as percentages)

2018 est.2017 est.

2016

actual1Subsidies by Repayment Option

Stafford:4.426.4110.11Standard ..........................................................................................

–1.352.577.54Extended ..........................................................................................–0.253.968.73Graduated ........................................................................................

8.1324.7224.28IDR2 ..................................................................................................Unsubsidized Stafford:

–16.45–16.74- 9.23Standard ..........................................................................................–34.40–32.68–20.42Extended ..........................................................................................–30.35–27.82–17.09Graduated ........................................................................................

8.1224.3724.07IDR ...................................................................................................PLUS:

–31.76–31.09–23.65Standard ..........................................................................................–51.51–47.71–36.05Extended ..........................................................................................–52.19–47.40–36.26Graduated ........................................................................................

4.7321.0820.92IDR ...................................................................................................Consolidated:

–15.61–14.34–31.54Standard ..........................................................................................–21.33–20.87–38.79Extended ..........................................................................................–20.95–20.19–38.80Graduated ........................................................................................26.2428.7019.22IDR ...................................................................................................

Direct Loan Repayment Options

(gross volumes in millions of dollars)

2018 est.2017 est.

2016

actual1Volumes by Repayment Option

Stafford:$11,284$19,204$18,363Standard ..........................................................................................

344269454Extended ..........................................................................................1,8542,5862,725Graduated ........................................................................................

2,7793,6804,036IDR2 ..................................................................................................Unsubsidized Stafford:

46,38637,18635,100Standard ..........................................................................................2,5732,0632,196Extended ..........................................................................................8,1116,5366,497Graduated ........................................................................................

17,42313,72914,561IDR ...................................................................................................PLUS:

20,90816,18718,282Standard ..........................................................................................7981,199688Extended ..........................................................................................

2,1272,9451,835Graduated ........................................................................................3,3224,0162,654IDR ...................................................................................................

Consolidated:10,1529,1459,580Standard ..........................................................................................1,5451,6011,445Extended ..........................................................................................3,1092,8602,927Graduated ........................................................................................

33,40333,33031,689IDR ...................................................................................................

12016 rates are current; these include actual executed rates for 2016 and the effect of re-estimates on those rates.2All income-driven plans are included in the IDR category

FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT

(Legislative proposal, subject to PAYGO)



Direct loan levels supportable by subsidy budget authority:–10,297..................................Stafford .....................................................................................11500110,297..................................Unsubsidized Stafford ...............................................................115002

Direct loan subsidy (in percent):–3.80..................................Stafford .....................................................................................132001–2.87..................................Unsubsidized Stafford ...............................................................132002–1.720.000.00PLUS ..........................................................................................132003–1.000.000.00Consolidation ............................................................................132004

–3.360.000.00Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–1,462..................................Stafford .....................................................................................133001–3,162..................................Unsubsidized Stafford ...............................................................133002–465..................................PLUS ..........................................................................................133003–482..................................Consolidation ............................................................................133004

–5,571..................................Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–902..................................Stafford .....................................................................................134001–1,927..................................Unsubsidized Stafford ...............................................................134002


–286..................................PLUS ..........................................................................................134003–480..................................Consolidation ............................................................................134004

–3,595..................................Total subsidy outlays .................................................................134999

✦

FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT



Obligations by program activity:12712625Consolidation loans-Payment of Orig. Services .........................0301

1,4471,335630Payment of contract collection costs .........................................0401Credit program obligations:

166,020156,536155,640Direct loan obligations ..........................................................071029,44627,61130,503Payment of interest to Treasury .............................................07135,0911,9609,165Negative subsidy obligations ................................................0740

.................6,6931,471Downward reestimates paid to receipt accounts ...................0742

.................296714Interest on downward reestimates ........................................0743

200,557193,096197,493Direct program activities, subtotal ................................................0791



15,0005,481Unobligated balance brought forward, Oct 1 .........................100020,96420,55320,150Recoveries of prior year unpaid obligations ...........................1021

.................–5,000–10,406Unobligated balances applied to repay debt .........................1023–20,964–20,553–13,857Unobligated balance of borrowing authority withdrawn ........1024

..................................3Recoveries of prior year paid obligations ...............................1033

1.................1,371Unobligated balance (total) ......................................................1050Financing authority:

Appropriations, mandatory:.................10.................Appropriation ....................................................................1200

Borrowing authority, mandatory:171,111163,877167,012Borrowing authority ...........................................................1400


–68,668–88,988–52,229Spending authority from offsetting collections applied to

repay debt .....................................................................1825

31,02130,67134,765Spending auth from offsetting collections, mand (total) .......1850202,132194,558201,777Budget authority (total) .............................................................1900202,133194,558203,148Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:215,000Unexpired unobligated balance, end of year ..........................1941



–185,458–184,408–179,209Outlays (gross) ......................................................................3020–20,964–20,553–20,150Recoveries of prior year unpaid obligations, unexpired .........3040




202,132194,558201,777Budget authority, gross .........................................................4090Financing disbursements:

185,458184,408179,209Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–28,842–8,647Upward reestimate ............................................................4120.................–6,578–1,231Upward reestimate, interest ..............................................4120.................–364.................Upward Modification .........................................................4120.................–1,609.................Program subsidy ...............................................................4120..................................–3,943Interest on uninvested funds ............................................4122

–16,066–12,974–12,622Repayment of principal, Stafford ......................................4123–3,218–2,639–2,266Interest received on loans, Stafford ..................................4123–235–240–238Origination Fees, Stafford .................................................4123

..................................–42Other fees, Stafford ...........................................................4123–29,462–23,206–23,798Repayment of principal, Unsubsidized Stafford ................4123–7,534–5,698–5,335Interest received on loans, Unsubsidized Stafford ............4123–558–547–531Origination Fees, Unsubsidized Stafford ...........................4123

..................................–41Other fees, Unsubsidized Stafford .....................................4123–15,624–12,582–10,273Repayment of principal, PLUS ...........................................4123–3,722–3,208–2,835Interest received on loans, PLUS .......................................4123–1,021–985–916Origination Fees, PLUS ......................................................4123

..................................–12Other fees, PLUS ...............................................................4123

–13,968–13,134–9,197Payment of principal, Consolidation .................................4123–8,281–7,053–5,021Interest received on loans, Consolidation ..........................4123

..................................–49Other fees, Consolidation ..................................................4123

–99,689–119,659–86,997Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):

..................................3Recoveries of prior year paid obligations, unexpired

accounts .......................................................................4143

102,44374,899114,783Budget authority, net (mandatory) ............................................416085,76964,74992,212Outlays, net (mandatory) ...........................................................4170

102,44374,899114,783Budget authority, net (total) ..........................................................418085,76964,74992,212Outlays, net (total) ........................................................................4190



STAFFORDPosition with respect to appropriations act limitation on obligations:

26,55825,73927,022Direct loan obligations from current-year authority ...................1111

26,55825,73927,022Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:212,267203,123188,441Outstanding, start of year .........................................................121023,06322,50022,975Disbursements: Direct loan disbursements ...............................1231

–16,066–12,974–12,622Repayments: Repayments and prepayments .............................12511061305,043Adjustments: Capitalized interest .............................................1261

–510–512–714Write-offs for default: Other adjustments, net (+ or -) ..............1264


UNSUBSIDIZED STAFFORDPosition with respect to appropriations act limitation on obligations:




–29,462–23,206–23,798Repayments: Repayments and prepayments .............................12516,8386,8467,631Adjustments: Capitalized interest .............................................1261

–1,068–987–1,078Write-offs for default: Other adjustments, net (+ or -) ..............1264


PLUSPosition with respect to appropriations act limitation on obligations:




–15,624–12,582–10,273Repayments: Repayments and prepayments .............................12511,4341,3292,425Adjustments: Capitalized interest .............................................1261–396–360–343Write-offs for default: Other adjustments, net (+ or -) ..............1264


CONSOLIDATIONPosition with respect to appropriations act limitation on obligations:




–13,968–13,134–9,197Repayments: Repayments and prepayments .............................1251.................35,234Adjustments: Capitalized interest .............................................1261

–1,014–989–895Write-offs for default: Other adjustments, net (+ or -) ..............1264


As required by the Federal Credit Reform Act of 1990, this nonbudgetaryaccount records all cash flows to and from the Government resulting fromFederal Direct Student Loans. Amounts in this account are a means offinancing and are not included in the budget totals.



FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT—Continued



ASSETS:Federal assets:

19,27327,127Fund balances with Treasury .....................................................1101Investments in US securities:

19,5946,946Receivables, net ....................................................................1106527Non-Federal assets: Receivables, net ............................................1206

Net value of assets related to post-1991 direct loans receivable:902,751800,811Direct loans receivable, gross ....................................................140150,83344,250Interest receivable .....................................................................14025,29435,496Allowance for subsidy cost (-) ....................................................1405

958,878880,557Net present value of assets related to direct loans ................14993...........................Other Federal assets: Other assets ................................................1901


Federal liabilities:...........................1,474Accounts payable .......................................................................2101

994,285909,927Debt ...........................................................................................21033,5153,236Non-Federal liabilities: Accounts payable ......................................2201



FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT





114..................................Payment of interest to Treasury .............................................07135,571..................................Negative subsidy obligations ................................................0740

5,685..................................Direct program activities, subtotal ................................................0791

5,685..................................Total new obligations, unexpired accounts ....................................0900

Budgetary resources:Financing authority:

Borrowing authority, mandatory:5,571..................................Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:29..................................Collected ...........................................................................1800

85..................................Spending authority from offsetting collections applied to

repay debt .....................................................................1825

114..................................Spending auth from offsetting collections, mand (total) .......18505,685..................................Budget authority (total) .............................................................19005,685..................................Total budgetary resources available ..............................................1930


5,685..................................New obligations, unexpired accounts ....................................3010–3,722..................................Outlays (gross) ......................................................................3020

1,963..................................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1,963..................................Obligated balance, end of year ..............................................3200


5,685..................................Budget authority, gross .........................................................4090Financing disbursements:

3,722..................................Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:14..................................Repayment of principal, Stafford ......................................41234..................................Interest received on loans, Stafford ..................................4123

61..................................Origination Fees, Stafford .................................................4123–14..................................Repayment of principal, Unsubsidized Stafford ................4123–4..................................Interest received on loans, Unsubsidized Stafford ............4123

–61..................................Origination Fees, Unsubsidized Stafford ...........................4123–27..................................Payment of principal, Consolidation .................................4123–2..................................Interest received on loans, Consolidation ..........................4123

–29..................................Offsets against gross budget authority and outlays (total) ....4130

5,656..................................Budget authority, net (mandatory) ............................................41603,693..................................Outlays, net (mandatory) ...........................................................4170

5,656..................................Budget authority, net (total) ..........................................................41803,693..................................Outlays, net (total) ........................................................................4190



STAFFORDPosition with respect to appropriations act limitation on obligations:

–10,297..................................Direct loan obligations from current-year authority ...................1111

–10,297..................................Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:–6,112..................................Disbursements: Direct loan disbursements ...............................1231

14..................................Repayments: Repayments and prepayments .............................1251–1..................................Adjustments: Capitalized interest .............................................12619..................................Write-offs for default: Other adjustments, net (+ or -) ..............1264

–6,090..................................Outstanding, end of year .......................................................1290

UNSUBSIDIZED STAFFORDPosition with respect to appropriations act limitation on obligations:

10,297..................................Direct loan obligations from current-year authority ...................1111

10,297..................................Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:6,124..................................Disbursements: Direct loan disbursements ...............................1231–14..................................Repayments: Repayments and prepayments .............................1251

3..................................Adjustments: Capitalized interest .............................................1261–9..................................Write-offs for default: Other adjustments, net (+ or -) ..............1264

6,104..................................Outstanding, end of year .......................................................1290

PLUSCONSOLIDATIONCumulative balance of direct loans outstanding:

–27..................................Repayments: Repayments and prepayments .............................1251

–27..................................Outstanding, end of year .......................................................1290

✦

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT




..................................152Subsidy for modifications of loan guarantees .......................0704

.................3,746991Reestimates of direct loan subsidy .......................................0705

.................1,043223Interest on reestimates of direct loan subsidy .......................0706

.................2,33526Reestimates of loan guarantee subsidy ................................0707

.................4,03155Interest on reestimates of loan guarantee subsidy ................0708

.................11,1551,447Total new obligations (object class 41.0) ......................................0900


Appropriations, mandatory:.................11,1551,447Appropriation ....................................................................1200.................11,1551,447Total budgetary resources available ..............................................1930


.................11,1551,447New obligations, unexpired accounts ....................................3010

.................–11,155–1,447Outlays (gross) ......................................................................3020


.................11,1551,447Budget authority, gross .........................................................4090Outlays, gross:

.................11,1551,447Outlays from new mandatory authority .............................4100

.................11,1551,447Budget authority, net (total) ..........................................................4180

.................11,1551,447Outlays, net (total) ........................................................................4190



Direct loan reestimates:.................3,319489Direct Participation Agreement Reestimates .............................135010


.................1,471565Direct Standard Put Reestimates ..............................................135012

.................4,7901,054Total direct loan reestimates .....................................................135999Guaranteed loan subsidy outlays:

..................................152FFEL Guarantees .......................................................................234006

..................................152Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................5,996–2,281FFEL Guarantees .......................................................................235006

.................5,996–2,281Total guaranteed loan reestimates ............................................235999

As required by the Federal Credit Reform Act of 1990, this program ac-count records the subsidy costs associated with Federal Family EducationLoans (FFEL), formerly guaranteed student loans, committed in 1992 andbeyond. Beginning with the 1993 cohort of loans, mandatory administrativecosts, specifically contract collection costs, are included in the FFEL sub-sidy estimates of each year's cohort. Subsidy amounts are estimated on anet present value basis.

A description of the FFEL program and accompanying tables are includedunder the Federal Direct Student Loan program account.

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT




Guaranteed loan subsidy outlays:–443..................................FFEL Guarantees .......................................................................234006

–443..................................Total subsidy outlays .................................................................234999

✦

FEDERAL FAMILY EDUCATION LOAN PROGRAM FINANCING ACCOUNT



Obligations by program activity:5276531,572Default claims ...........................................................................0101

5990Special allowance .....................................................................010283127506Interest benefits ........................................................................010376106238Death, disability, and bankruptcy claims ..................................010421528Teacher loan forgiveness, other write-offs .................................0105

232210Contract collection costs ...........................................................010755.................Rehab purchase fee ..................................................................0109

101520Guaranty Agency account maintenance fees .............................0110

7319522,464Subtotal, Stafford loans ................................................................01915807191,731Default claims ...........................................................................0202

71290Special allowance .....................................................................020382130315Death, disability, and bankruptcy claims ..................................020431529Teacher loan forgiveness, other write-offs .................................0205



7049102,197Subtotal, Unsubsidized Stafford loans ..........................................029171103276Default claims ...........................................................................0301222694Death, disability, and bankruptcy claims ..................................0304321Contract Collection Costs ..........................................................030711.................Rehab purchase fee ..................................................................0309115Guaranty Agency account maintenance fees .............................0310

98133376Subtotal, PLUS loans .....................................................................0391..................................4Default claims ...........................................................................0403.................1.................Contract collection costs ...........................................................0407

11.................Rehab purchase fee ..................................................................0409

124Subtotal, SLS loans .......................................................................04913,0823,4103,456Default claims ...........................................................................050116699.................Special allowance .....................................................................05024463498Interest benefits ........................................................................0503

6227791,051Death, disability, and bankruptcy claims ..................................0504..................................47Teacher loan forgiveness, other write-offs .................................0505



4,0454,4875,159Subtotal, Consolidations loans ......................................................0591

Credit program obligations:1,1561,6932,083Payment of interest to Treasury .............................................0713

.................2171,525Downward reestimates paid to receipt accounts ...................0742





17,5308,9787,771Unobligated balance brought forward, Oct 1 .........................1000..................................874Recoveries of prior year unpaid obligations ...........................1021..................................509Recoveries of prior year paid obligations ...............................1033

17,5308,9789,154Unobligated balance (total) ......................................................1050Financing authority:

Appropriations, mandatory:..................................24Appropriation ....................................................................1200

Spending authority from offsetting collections, mandatory:8,99317,09914,444Collected ...........................................................................18008,99317,09914,468Budget authority (total) .............................................................1900

26,52326,07723,622Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

19,78817,5308,978Unexpired unobligated balance, end of year ..........................1941



–6,735–8,546–14,047Outlays (gross) ......................................................................3020..................................–874Recoveries of prior year unpaid obligations, unexpired .........3040






Offsetting collections (collected) from:.................–2,335–26Upward reestimate ............................................................4120.................–4,031–55Interest on upward reestimate ..........................................4120..................................–152Upward modification .........................................................4120..................................–317Interest on uninvested funds ............................................4122

–1,531–1,837–2,776Stafford recoveries on defaults .........................................4123..................................–85Stafford other fees ............................................................4123

–201–361–819Stafford special allowance rebate .....................................4123–1,507–1,795–2,404Unsubsidized Stafford recoveries on default .....................4123

..................................–73Unsubsidized Stafford other fees ......................................4123–368–596–1,041Unsubsidized Stafford special allowance rebate ...............4123–192–224–407PLUS recoveries on defaults ..............................................4123

..................................–12PLUS other fees .................................................................4123–63–104–338PLUS special allowance rebate .........................................4123–5–7–20SLS recoveries on defaults ................................................4123

..................................–1SLS other fees ...................................................................4123–4,062–4,276–3,376Consolidation recoveries on defaults ................................4123–545–707–1,464Consolidation loan holders fee ..........................................4123

..................................–103Consolidation other fees ...................................................4123–519–826–1,484Consolidation special allowance rebate ............................4123

–8,993–17,099–14,953Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):


accounts .......................................................................4143

..................................24Budget authority, net (mandatory) ............................................4160–2,258–8,553–906Outlays, net (mandatory) ...........................................................4170

..................................24Budget authority, net (total) ..........................................................4180–2,258–8,553–906Outlays, net (total) ........................................................................4190

Status of Guaranteed Loans (in millions of dollars)


STAFFORDCumulative balance of guaranteed loans outstanding:

22,91925,89730,820Outstanding, start of year .........................................................2210–1,291–2,219–1,763Repayments and prepayments ..................................................2251

Adjustments:–527–653–1,810Terminations for default that result in loans receivable ........2261–76–106–238Terminations for default that result in claim payments ........2263–1.................–1,112Other adjustments, net .........................................................2264



FEDERAL FAMILY EDUCATION LOAN PROGRAM FINANCING ACCOUNT—Continued

Status of Guaranteed Loans—Continued



Memorandum:

19,97321,77324,602Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299

Addendum:Cumulative balance of defaulted guaranteed loans that result

in loans receivable:4,4345,4615,832Outstanding, start of year .....................................................23105276531,810Disbursements for guaranteed loan claims ...........................2331

–1,531–1,837–2,392Repayments of loans receivable ............................................2351–155–194–238Write-offs of loans receivable ................................................2361351351449Other adjustments, net .........................................................2364

3,6264,4345,461Outstanding, end of year ...................................................2390

UNSUBSIDIZED STAFFORDCumulative balance of guaranteed loans outstanding:


Adjustments:–580–719–2,046Terminations for default that result in loans receivable ........2261–82–130–315Terminations for default that result in claim payments ........2263

..................................174Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:8,65810,0309,546Outstanding, start of year .....................................................23105807192,046Disbursements for guaranteed loan claims ...........................2331

–1,507–1,795–2,072Repayments of loans receivable ............................................2351–256–296–315Write-offs of loans receivable ................................................2361



PLUSCumulative balance of guaranteed loans outstanding:

5,0175,5906,694Outstanding, start of year .........................................................2210–216–346–383Repayments and prepayments ..................................................2251

Adjustments:–142–201–370Terminations for default that result in loans receivable ........2261–22–26–94Terminations for default that result in claim payments ........2263

..................................–257Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:424529561Outstanding, start of year .....................................................2310142201370Disbursements for guaranteed loan claims ...........................2331

–192–224–351Repayments of loans receivable ............................................2351–61–82–94Write-offs of loans receivable ................................................2361


313424529Outstanding, end of year ...................................................2390

SLSCumulative balance of guaranteed loans outstanding:

555760Outstanding, start of year .........................................................2210–1–2–3Repayments and prepayments ..................................................2251

Adjustments:..................................–4Terminations for default that result in loans receivable ........2261...................................................Terminations for default that result in claim payments ........2263..................................4Other adjustments, net .........................................................2264


Memorandum:

525253Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299


in loans receivable:266273264Outstanding, start of year .....................................................2310

..................................4Disbursements for guaranteed loan claims ...........................2331–5–7–17Repayments of loans receivable ............................................2351

...................................................Write-offs of loans receivable ................................................2361



CONSOLIDATIONCumulative balance of guaranteed loans outstanding:


Adjustments:–3,082–3,410–4,507Terminations for default that result in loans receivable ........2261–622–779–1,051Terminations for default that result in claim payments ........2263

..................................1,364Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:17,45319,35217,212Outstanding, start of year .....................................................23103,0823,4104,507Disbursements for guaranteed loan claims ...........................2331

–4,062–4,276–2,910Repayments of loans receivable ............................................2351–920–1,033–1,051Write-offs of loans receivable ................................................2361

..................................1,594Other adjustments, net .........................................................2364


As required by the Federal Credit Reform Act of 1990, this nonbudgetaryaccount records all cash flows to and from the Government resulting fromFederal Family Education Loans, formerly guaranteed student loans,committed in 1992 and beyond. The amounts in this account are a meansof financing and are not included in the budget totals.





5,25288Receivables, net ....................................................................11061428Non-Federal assets: Receivables, net ............................................1206

Net value of assets related to post-1991 acquired defaultedguaranteed loans receivable:

35,64533,415Defaulted guaranteed loans receivable, gross ...........................15016,5625,756Interest receivable .....................................................................1502

–12,398–991Allowance for subsidy cost (-) ....................................................1505

29,80938,180Net present value of assets related to defaulted guaranteed

loans .................................................................................1599

1...........................Other Federal assets: Other assets ................................................1901


Federal liabilities:2123,865Accounts payable .......................................................................2101

43,25443,254Debt ...........................................................................................2103Non-Federal liabilities:

1771Accounts payable .......................................................................22011,417...........................Liabilities for loan guarantees ...................................................2204



FEDERAL FAMILY EDUCATION LOAN PROGRAM FINANCING ACCOUNT




Obligations by program activity:–10..................................Guaranty Agency account maintenance fees .............................0110

–10..................................Subtotal, Stafford loans ................................................................0191


–9..................................Guaranty Agency account maintenance fees .............................0210

–9..................................Subtotal, Unsubsidized Stafford loans ..........................................0291–1..................................Guaranty Agency account maintenance fees .............................0310

–1..................................Subtotal, PLUS loans .....................................................................0391–97..................................Guaranty Agency account maintenance fees .............................0510

–97..................................Subtotal, Consolidations loans ......................................................0591Credit program obligations:

37..................................Payment of interest to Treasury .............................................0713443..................................Modification savings .............................................................0741

480..................................Direct program activities, subtotal ................................................0791

363..................................Total new obligations, unexpired accounts ....................................0900

Budgetary resources:Financing authority:

Appropriations, mandatory:30..................................Appropriation ....................................................................1200

Borrowing authority, mandatory:443..................................Borrowing authority ...........................................................1400473..................................Budget authority (total) .............................................................1900473..................................Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:110..................................Unexpired unobligated balance, end of year ..........................1941


363..................................New obligations, unexpired accounts ....................................3010–363..................................Outlays (gross) ......................................................................3020


473..................................Budget authority, gross .........................................................4090Financing disbursements:

363..................................Outlays, gross (total) .............................................................4110473..................................Budget authority, net (total) ..........................................................4180363..................................Outlays, net (total) ........................................................................4190

✦

TEMPORARY STUDENT LOAN PURCHASE AUTHORITY FINANCING ACCOUNT



Obligations by program activity:13214777Contract collection costs ...........................................................0006

Credit program obligations:1,5051,7811,858Payment of interest to Treasury .............................................0713

..................................123Downward reestimates paid to receipt accounts ...................0742

..................................37Interest on downward reestimates ........................................0743






.................–874–437Unobligated balances applied to repay debt .........................1023

..................................8Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:..................................160Borrowing authority ...........................................................1400



repay debt .....................................................................1825

1,6371,9282,801Spending auth from offsetting collections, mand (total) .......18501,6371,9282,961Budget authority (total) .............................................................19001,6371,9282,969Total budgetary resources available ..............................................1930




–1,637–1,929–2,092Outlays (gross) ......................................................................3020







Offsetting collections (collected) from:.................–2,583–531Upward reestimate ............................................................4120.................–736–118Upward reestimate interest ...............................................4120..................................–131Interest on uninvested funds ............................................4122

–5,981–5,113–5,308Principal repayments ........................................................4123–1,357–1,317–1,163Interest repayments ..........................................................4123

..................................–19Fees and other refunds .....................................................4123


–5,701–7,821–4,309Budget authority, net (mandatory) ............................................4160–5,701–7,820–5,178Outlays, net (mandatory) ...........................................................4170–5,701–7,821–4,309Budget authority, net (total) ..........................................................4180–5,701–7,820–5,178Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:39,30744,43448,540Outstanding, start of year .........................................................1210–5,982–5,113–5,308Repayments: Repayments and prepayments .............................1251

5487.................Adjustments: Capitalized interest .............................................1261–84–1011,202Write-offs for default: Other adjustments, net (+ or -) ..............1264


As required by the Federal Credit Reform Act of 1990, this nonbudgetaryaccount records all cash flows to and from the Government resulting fromthe participation interest program authorized under the Ensuring ContinuedAccess to Student Loans Act of 2008. Amounts in this account are a meansof financing and are not included in the budget totals.





2,322477Receivables, net ....................................................................1106Net value of assets related to post-1991 direct loans receivable:

44,43448,540Direct loans receivable, gross ....................................................14013,6003,403Interest receivable .....................................................................14024,3487,573Allowance for subsidy cost (-) ....................................................1405



Federal liabilities:...........................112Accounts payable .......................................................................2101

56,23760,983Debt ...........................................................................................21031...........................Non-Federal liabilities: Accounts payable ......................................2201



✦

STUDENT LOAN ACQUISITION ACCOUNT




Credit program obligations:9061,048985Payment of interest to Treasury .............................................0713



STUDENT LOAN ACQUISITION ACCOUNT—Continued



9871,1381,040Total new obligations, unexpired accounts ....................................0900








repay debt .....................................................................1825

9871,1381,433Spending auth from offsetting collections, mand (total) .......18509871,1381,433Budget authority (total) .............................................................19009871,1381,439Total budgetary resources available ..............................................1930



101014Unpaid obligations, brought forward, Oct 1 ..........................30009871,1381,040New obligations, unexpired accounts ....................................3010

–987–1,138–1,038Outlays (gross) ......................................................................3020..................................–6Recoveries of prior year unpaid obligations, unexpired .........3040




9871,1381,433Budget authority, gross .........................................................4090Financing disbursements:

9871,1381,038Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–1,163–460Upward reestimate ............................................................4120.................–307–105Upward reestimate interest ...............................................4120..................................–65Interest on uninvested funds ............................................4122

–3,668–3,188–3,136Principal repayments ........................................................4123–843–810–734Borrower interest repayments ...........................................4123

..................................–13Fees and other refunds .....................................................4123


–3,524–4,330–3,080Budget authority, net (mandatory) ............................................4160–3,524–4,330–3,475Outlays, net (mandatory) ...........................................................4170–3,524–4,330–3,080Budget authority, net (total) ..........................................................4180–3,524–4,330–3,475Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:20,67523,86726,474Outstanding, start of year .........................................................1210–3,668–3,188–3,136Repayments: Repayments and prepayments .............................1251

3559.................Adjustments: Capitalized interest .............................................1261–51–63529Write-offs for default: Other adjustments, net (+ or -) ..............1264


As required by the Federal Credit Reform Act of 1990, this nonbudgetaryaccount records all cash flows to and from the Government resulting fromthe standard and short-term Put programs authorized under the EnsuringContinued Access to Student Loans Act of 2008. Amounts in this accountare a means of financing and are not included in the budget totals.




240305Fund balances with Treasury .....................................................1101

Investments in US securities:1,050539Receivables, net ....................................................................1106

Net value of assets related to post-1991 direct loans receivable:23,86726,474Direct loans receivable, gross ....................................................14012,0901,981Interest receivable .....................................................................14022,9224,410Allowance for subsidy cost (-) ....................................................1405



Federal liabilities:......................................................Accounts payable .......................................................................2101

30,16933,709Debt ...........................................................................................2103......................................................Non-Federal liabilities: Accounts payable ......................................2201



✦

TEMPORARY STUDENT LOAN PURCHASE AUTHORITY CONDUIT FINANCING ACCOUNT




Credit program obligations:135056Payment of interest to Treasury .............................................0713










repay debt .....................................................................1825

307177Spending auth from offsetting collections, mand (total) .......1850307183Total budgetary resources available ..............................................1930




–30–71–69Outlays (gross) ......................................................................3020..................................–2Recoveries of prior year unpaid obligations, unexpired .........3040






Offsetting collections (collected) from:..................................–3Interest on uninvested funds ............................................4122..................................–9Direct Conduit Fees ...........................................................4123

–164–232–133Principal repayments ........................................................4123–34–43–41Interest repayments ..........................................................4123

–198–275–186Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):


accounts .......................................................................4143

–168–204–105Budget authority, net (mandatory) ............................................4160–168–204–117Outlays, net (mandatory) ...........................................................4170–168–204–105Budget authority, net (total) ..........................................................4180–168–204–117Outlays, net (total) ........................................................................4190




Cumulative balance of direct loans outstanding:1,5371,7711,887Outstanding, start of year .........................................................1210–164–232–133Repayments: Repayments and prepayments .............................1251

–1–217Write-offs for default: Other adjustments, net (+ or -) ..............1264


As required by the Federal Credit Reform Act of 1990, this nonbudgetaryaccount records all cash flows to and from the Government resulting fromthe asset-backed commercial paper conduit authorized under the EnsuringContinued Access to Student Loans Act of 2008. Amounts in this accountare a means of financing and are not included in the budget totals.




Net value of assets related to post-1991 direct loans receivable:1,7711,887Direct loans receivable, gross ....................................................1401264241Interest receivable .....................................................................1402

–374–349Allowance for subsidy cost (-) ....................................................1405



1,6891,826Federal liabilities: Debt ..................................................................2103......................................................Non-Federal liabilities: Accounts payable ......................................2201



✦

FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT



Obligations by program activity:344Interest benefits, net of origination fees ...................................0101

454953Default claims ...........................................................................0103101115Death, disability, and bankruptcy claims ..................................01049109Contract collection costs ...........................................................0105

677481Subtotal, Stafford loans ................................................................0191889Default claims ...........................................................................0201443Death, disability, and bankruptcy claims ..................................0202222Contract collection costs ...........................................................0205

141414Subtotal, PLUS/SLS loans ..............................................................0291





.................–102–225Capital transfer of unobligated balances to general fund ......1022


..................................6Unobligated balance (total) ......................................................1050Budget authority:


–215–243–175Capital transfer of spending authority from offsetting


8188191Spending auth from offsetting collections, mand (total) .......18508188197Total budgetary resources available ..............................................1930




–81–88–77Outlays (gross) ......................................................................3020






816377Outlays from new mandatory authority .............................4100.................25.................Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–82–91–107Fed collections on defaulted loans, Stafford .....................4123–2–2.................Fed collections on bankruptcies, Stafford .........................4123

–87–98.................Offsets against Federal tax refunds, Stafford ...................4123–62–69–198Reimbursements from guaranty agencies, Stafford ..........4123–18–20–14Other collections, Stafford ................................................4123–25–28–17Federal collections on defaulted loans, PLUS/SLS .............4123

.................–1.................Federal collections on bankruptcies, PLUS/SLS .................4123–7–8.................Offsets against Federal tax refunds, PLUS/SLS .................4123

–13–14–31Reimbursements from guaranty agencies, PLUS/SLS ........4123

–296–331–367Offsets against gross budget authority and outlays (total) ....4130Additional offsets against gross budget authority only:


accounts .......................................................................4143

–215–243–175Budget authority, net (mandatory) ............................................4160–215–243–290Outlays, net (mandatory) ...........................................................4170–215–243–175Budget authority, net (total) ..........................................................4180–215–243–290Outlays, net (total) ........................................................................4190



STAFFORD LOANSCumulative balance of guaranteed loans outstanding:





Memorandum:


year .......................................................................................2299


in loans receivable:3,3833,5253,786Outstanding, start of year .....................................................2310

242662Disbursements for guaranteed loan claims ...........................2331–121–136–217Repayments of loans receivable ............................................2351–13–14–15Write-offs of loans receivable ................................................2361–16–18–91Other adjustments, net .........................................................2364


PLUS/SLS LOANSCumulative balance of guaranteed loans outstanding:





Memorandum:


year .......................................................................................2299



2312Disbursements for guaranteed loan claims ...........................2331–20–23–33Repayments of loans receivable ............................................2351–2–3–3Write-offs of loans receivable ................................................2361



FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT—Continued

Status of Guaranteed Loans—Continued


–3–2–16Other adjustments, net .........................................................2364


As required by the Federal Credit Reform Act of 1990, this liquidatingaccount records, for this program, all cash flows to and from the Govern-ment resulting from guaranteed student loans committed prior to 1992.This account is shown on a cash basis. All new loan activity in this programfor 1992 and beyond is recorded in corresponding program and financingaccounts.




4,0874,388Defaulted guaranteed loans, gross ................................................17015,6746,149Interest receivable .........................................................................1702

–7,622–8,162Allowance for estimated uncollectible loans and interest (-) .........1703

2,1392,375Value of assets related to loan guarantees ................................1799


2,2532,603Federal liabilities: Resources payable to Treasury ..........................2104Non-Federal liabilities:

......................................................Accounts payable .......................................................................2201139Liabilities for loan guarantees ...................................................2204





Direct obligations:646974Investments and loans ..............................................................33.0333Grants, subsidies, and contributions ........................................41.0

141618Insurance claims and indemnities ............................................42.0

818895Direct obligations ..................................................................99.0


✦

HEALTH EDUCATION ASSISTANCE LOANS PROGRAM ACCOUNT



Guaranteed loan reestimates:.................–18–21HEAL Loan Guarantee ................................................................235001

Consistent with the Consolidated Appropriations Act, 2014 (P.L. 113–76),the Health Education Assistance Loans (HEAL) program was transferredto the Department of Education from the Department of Health and HumanServices in 2014. The Department of Education assumed responsibility forthe program and the authority to administer, service, collect, and enforcethe program.

The HEAL program guarantees loans from private lenders to health pro-fessions students to pay for the costs of their training. As required by theFederal Credit Reform Act of 1990, this account records the subsidy costsassociated with HEAL loan guarantees committed in 1992 and beyond(including modifications of HEAL loan guarantees that resulted from ob-ligations or commitments in any year), as well as administrative expensesof the program.

✦

HEALTH EDUCATION ASSISTANCE LOANS FINANCING ACCOUNT




772Default claim payments on principal ....................................0711221Default Collection Costs ........................................................0715

.................79Downward reestimates paid to receipt accounts ...................0742




223853Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Spending authority from offsetting collections, mandatory:11119Collected ...........................................................................1800334962Total budgetary resources available ..............................................1930



18..................................Unpaid obligations, brought forward, Oct 1 ..........................300092724New obligations, unexpired accounts ....................................3010

–9–9–24Outlays (gross) ......................................................................3020

1818.................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

18..................................Obligated balance, start of year ............................................31001818.................Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:–2–2–2Interest on uninvested funds ............................................4122–9–9–7Non-Federal sources .........................................................4123

–11–11–9Offsets against gross budget authority and outlays (total) ....4130–2–215Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–2–215Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation oncommitments:

...................................................Uncommitted limitation carried forward ...................................2143

...................................................Total guaranteed loan commitments .....................................2150

Cumulative balance of guaranteed loans outstanding:186214232Outstanding, start of year .........................................................2210–16–16–16Repayments and prepayments ..................................................2251

Adjustments:–9–9–2Terminations for default that result in loans receivable ........2261–3–3.................Terminations for default that result in claim payments ........2263

...................................................Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299



772Disbursements for guaranteed loan claims ...........................2331–7–7–7Repayments and prepayments ..............................................2351


...................................................Other adjustments, net .........................................................2364



As required by the Federal Credit Reform Act of 1990, this nonbudgetaryaccount records all cash flows to and from the Government resulting fromthe Health Education Assistance Loan program. Amounts in this accountare a means of financing and are not included in the budget totals.



ASSETS:38...........................Federal assets: Fund balances with Treasury .................................1101

150...........................

Net value of assets related to post-1991 acquired defaultedguaranteed loans receivable: Defaulted guaranteed loansreceivable, gross ........................................................................

1501

188...........................Total assets ...............................................................................1999LIABILITIES:

188...........................Non-Federal liabilities: Liabilities for loan guarantees ..................2204

188...........................Total liabilities and net position .....................................................4999

✦

HEALTH EDUCATION ASSISTANCE LOANS LIQUIDATING ACCOUNT




221Default Collections Costs ......................................................0715



.................–6–7Capital transfer of unobligated balances to general fund ......1022Budget authority:

Appropriations, mandatory:11.................Appropriation ....................................................................1200


–5–6.................Capital transfer of spending authority from offsetting





11.................Unpaid obligations, brought forward, Oct 1 ..........................3000221New obligations, unexpired accounts ....................................3010

–2–2.................Outlays (gross) ......................................................................3020


11.................Obligated balance, start of year ............................................3100111Obligated balance, end of year ..............................................3200



22.................Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–6–7–7Non-Federal sources .........................................................4123–4–5.................Budget authority, net (total) ..........................................................4180–4–5–7Outlays, net (total) ........................................................................4190



Cumulative balance of guaranteed loans outstanding:142128Outstanding, start of year .........................................................2210–7–7–7Repayments and prepayments ..................................................2251

Adjustments:...................................................Terminations for default that result in loans receivable ........2261...................................................Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299



33.................Disbursements for guaranteed loan claims ...........................2331–6–7–7Repayments of loans receivable ............................................2351


..................................–69Other adjustments, net .........................................................2364


As required by the Federal Credit Reform Act of 1990, this liquidatingaccount records, for this program, all cash flows to and from the Govern-ment resulting from guaranteed Health Education Assistance Loans loanscommitted prior to 1992. This account is shown on a cash basis. All loanactivity in this program for 1992 and beyond is recorded in correspondingprogram and financing accounts.




184260Defaulted guaranteed loans, gross ................................................1701......................................................Other Federal assets: Other assets ................................................1901


190267Non-Federal liabilities: Other .........................................................2207





..................................1Insurance claims and indemnities ............................................42.0

223Direct obligations ..................................................................99.0..................................–2Adjustment for rounding ...........................................................99.5


✦

INSTITUTE OF EDUCATION SCIENCESFederal Funds

INSTITUTE OF EDUCATION SCIENCES

For carrying out activities authorized by the Education Sciences Reform Act of2002, the National Assessment of Educational Progress Authorization Act, section208 of the Educational Technical Assistance Act of 2002, and section 664 of theIndividuals with Disabilities Education Act, $616,840,000, which shall remainavailable through September 30, 2019: Provided, That funds available to carry outsection 208 of the Educational Technical Assistance Act may be used to link Statewideelementary and secondary data systems with early childhood, postsecondary, andworkforce data systems, or to further develop such systems: Provided further, Thatup to $6,000,000 of the funds available to carry out section 208 of the EducationalTechnical Assistance Act may be used for awards to public or private organizationsor agencies to support activities to improve data coordination, quality, and use atthe local, State, and national levels.




Obligations by program activity:195195181Research, development, and dissemination ..............................0001112112101Statistics ...................................................................................0002545454Regional educational laboratories .............................................0003

365DEPARTMENT OF EDUCATIONInstitute of Education Sciences

Federal Funds

INSTITUTE OF EDUCATION SCIENCES—Continued



149149149National Assessment .................................................................0004888National Assessment Governing Board ......................................0005

545445Research in special education ..................................................0006343434Statewide longitudinal data systems ........................................000711115Special education studies and evaluations ...............................0008

617617577Total direct program ......................................................................0100

617617577Total direct obligations ..................................................................0799..................................1Reimbursable program activity .................................................0801



686827Unobligated balance brought forward, Oct 1 .........................1000..................................1Recoveries of prior year unpaid obligations ...........................1021






..................................1Obligations ("upward adjustments"), expired accounts ........3011–552–488–585Outlays (gross) ......................................................................3020




–1–1–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060







Research and Statistics:Research, development, and dissemination.—Funds support a diverse

portfolio of research, development, and dissemination activities that provideparents, teachers, and schools with evidence-based information on effectiveeducational practices.

Statistics.—Funds support the Department's statistical data collectionactivities, which are conducted by the National Center for Education Stat-istics (NCES). NCES collects, analyzes, and disseminates education stat-istics at all levels, from preschool through postsecondary and adult educa-tion, including statistics on international education activities.

Regional educational laboratories.—Funds support a network of 10 re-gional laboratories that provide expert advice, including training andtechnical assistance, to help States and school districts apply proven researchfindings in their school improvement efforts.

Assessment.—Funds support the ongoing National Assessment of Educa-tional Progress (NAEP) and the National Assessment Governing Board(NAGB). NAEP administers assessments to samples of students in orderto gather reliable information about educational attainment in importantacademic areas. NAGB is responsible for formulating NAEP policy; devel-

oping student achievement levels; and selecting, consistent with the require-ments of the statute, the subjects to be assessed.

Research in special education.—Funds support research to build theevidence base on improving special education and early intervention ser-vices and outcomes for infants, toddlers, and children with disabilities.

Statewide data systems.—Funds support competitive grant awards toStates to foster the design, development, implementation, and use of lon-gitudinal data systems. In 2018, funding would support linking K-12 sys-tems to systems that include early childhood, postsecondary, and workforceinformation, or further developing such systems. In addition, funds wouldsupport awards to public and private agencies to improve data coordination,quality, and use at the local, State, and national levels.

Special education studies and evaluations.—Funds support studies,evaluations, and assessments related to the implementation of the Individu-als with Disabilities Education Act in order to improve special educationand early intervention services and outcomes for infants, toddlers, andchildren with disabilities.




111Full-time permanent .............................................................11.1111Other than full-time permanent ............................................11.3

222Total personnel compensation ...........................................11.9191919Advisory and assistance services ..............................................25.1

245259244Other services from non-Federal sources ..................................25.2222Other goods and services from Federal sources ........................25.3

868480Research and development contracts .......................................25.5262250229Grants, subsidies, and contributions ........................................41.0

616616576Direct obligations ..................................................................99.0111Reimbursable obligations .....................................................99.0

..................................1Adjustment for rounding ...........................................................99.5


Employment Summary


151515Direct civilian full-time equivalent employment ............................1001

✦

DEPARTMENTAL MANAGEMENTFederal Funds

PROGRAM ADMINISTRATION

For carrying out, to the extent not otherwise provided, the Department of EducationOrganization Act, including rental of conference rooms in the District of Columbiaand hire of three passenger motor vehicles, $438,000,000.


Special and Trust Fund Receipts (in millions of dollars)


1..................................Balance, start of year ....................................................................0100Receipts:

Current law:111Contributions ........................................................................1130

211Total: Balances and receipts .....................................................2000Appropriations:

Current law:..................................–1Program Administration ........................................................2101

21.................Balance, end of year ..................................................................5099

THE BUDGET FOR FISCAL YEAR 2018366 Institute of Education Sciences—ContinuedFederal Funds—Continued



Obligations by program activity:438432444Program administration ............................................................0001


318Unobligated balance brought forward, Oct 1 .........................1000..................................8Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................2Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:438431432Appropriation ....................................................................1100

Appropriations, mandatory:..................................1Appropriation (special or trust fund) .................................1201

Spending authority from offsetting collections, discretionary:333Collected ...........................................................................1700

441434436Budget authority (total) .............................................................1900444435446Total budgetary resources available ..............................................1930





..................................1Obligations ("upward adjustments"), expired accounts ........3011–431–433–430Outlays (gross) ......................................................................3020




–1–1–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060







Offsetting collections (collected) from:–3–3–3Federal sources .................................................................4030

..................................–1Non-Federal sources .........................................................4033

–3–3–4Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:

..................................1Offsetting collections credited to expired accounts ...........4052

..................................1Additional offsets against budget authority only (total) ........4060

438431432Budget authority, net (discretionary) .........................................4070428430425Outlays, net (discretionary) .......................................................4080

Mandatory:..................................1Budget authority, gross .........................................................4090

Outlays, gross:..................................1Outlays from mandatory balances ....................................4101

438431433Budget authority, net (total) ..........................................................4180428430426Outlays, net (total) ........................................................................4190

The Program Administration account includes the direct Federal costs ofproviding grants and administering early, elementary, and secondary edu-cation; Indian education; English language acquisition; higher education;career, technical, and adult education; special education programs; andprograms for persons with disabilities. It also supports assessment, statistics,and research activities.

In addition, this account includes the cost of providing centralized supportand administrative services, overall policy development, and strategicplanning for the Department. Included in the centralized activities are rentand mail services; telecommunications; contractual services; financialmanagement and accounting, including payments to schools, education

agencies and other grant recipients, and preparation of auditable financialstatements; information technology services and security; personnel man-agement; personnel security; budget formulation and execution; legal ser-vices; congressional and public relations; and intergovernmental affairs.

Also included in this account are contributions from the public. Activitiessupported include receptions for Historically Black Colleges and Univer-sities. Contributions not designated for a specific purpose are in the ac-count's Gifts and Bequests Miscellaneous Fund.

Reimbursable program.—Reimbursements to this account are forproviding administrative services to other agencies.




197202188Full-time permanent .............................................................11.15626Other than full-time permanent ............................................11.3333Other personnel compensation ..............................................11.5

205211217Total personnel compensation ...........................................11.9656567Civilian personnel benefits ........................................................12.1433Travel and transportation of persons .........................................21.0

413842Rental payments to GSA ............................................................23.1111Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0222Advisory and assistance services ..............................................25.1

191920Other services from non-Federal sources ..................................25.2252521Other goods and services from Federal sources ........................25.3736560Operation and maintenance of equipment ................................25.7111Supplies and materials .............................................................26.0

..................................3Equipment .................................................................................31.0115Land and structures ..................................................................32.0

438432443Direct obligations ..................................................................99.0..................................1Adjustment for rounding ...........................................................99.5


Employment Summary


1,6991,7761,888Direct civilian full-time equivalent employment ............................1001

✦

OFFICE FOR CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, as authorized by section203 of the Department of Education Organization Act, $106,797,000.




Obligations by program activity:107107107Civil rights ................................................................................0001








367DEPARTMENT OF EDUCATIONDepartmental Management—Continued


OFFICE FOR CIVIL RIGHTS—Continued







The Office for Civil Rights is responsible for ensuring that no person isunlawfully discriminated against on the basis of race, color, national origin,sex, disability, or age in the delivery of services or the provision of benefitsin programs or activities of schools and institutions receiving financial as-sistance from the Department of Education. The authorities under whichthe Office for Civil Rights operates are Title VI of the Civil Rights Act of1964 (racial and ethnic discrimination), Title IX of the Education Amend-ments of 1972 (sex discrimination), section 504 of the Rehabilitation Actof 1973 (discrimination against individuals with a disability), the AgeDiscrimination Act of 1975, the Americans with Disabilities Act of 1990,and the Boy Scouts of America Equal Access Act of 2002.




566059Full-time permanent .............................................................11.1222Other than full-time permanent ............................................11.3

..................................1Other personnel compensation ..............................................11.5

586262Total personnel compensation ...........................................11.9192020Civilian personnel benefits ........................................................12.1

..................................1Travel and transportation of persons .........................................21.0998Rental payments to GSA ............................................................23.1211Other services from non-Federal sources ..................................25.2232Other goods and services from Federal sources ........................25.3

161213Operation and maintenance of equipment ................................25.7

106107107Direct obligations ..................................................................99.01..................................Adjustment for rounding ...........................................................99.5


Employment Summary



✦

OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General, as authorized bysection 212 of the Department of Education Organization Act, $61,143,000.




Obligations by program activity:615958Inspector General ......................................................................0001













The Inspector General is responsible for the quality, coverage, and co-ordination of audit and investigation functions relating to Federal educationactivities. The Inspector General has the authority to inquire into all activ-ities of the Department, including those performed under Federal educationcontracts, grants, or other agreements. Under the Chief Financial OfficersAct of 1990, the Inspector General is also responsible for internal reviewsof the Department's financial systems and audits of its financial statements.




292826Full-time permanent .............................................................11.1..................................2Other personnel compensation ..............................................11.5

292828Total personnel compensation ...........................................11.9111111Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0776Rental payments to GSA ............................................................23.1111Advisory and assistance services ..............................................25.1322Other services from non-Federal sources ..................................25.2111Other goods and services from Federal sources ........................25.3556Operation and maintenance of equipment ................................25.7111Equipment .................................................................................31.0

595757Direct obligations ..................................................................99.0221Adjustment for rounding ...........................................................99.5


Employment Summary



✦

GENERAL FUND RECEIPT ACCOUNTS(in millions of dollars)


Offsetting receipts from the public:

221General Fund Proprietary Interest Receipts, not Otherwise

Classified ...................................................................091–143500

443..................................Federal Family Education Loan Program, Negative

Subsidies ...................................................................091–271810

.................3702,521Federal Family Education Loan Program, Downward

Reestimates of Subsidies ...........................................091–271830

.................5518College Housing and Academic Facilities Loan, Downward


3,4664,9105,696Federal Direct Student Loan Program, Negative

Subsidies ...................................................................091–278110

3,595..................................Legislative proposal, subject to PAYGO ...........................091–278110

THE BUDGET FOR FISCAL YEAR 2018368 Departmental Management—ContinuedFederal Funds—Continued

.................6,9892,185Federal Direct Student Loan Program, Downward


..................................5TEACH Grant Program, Downward Reestimates of

Subsidies ...................................................................091–279430

.................1821Health Education Assistance Loans, Downward


1,023179231Repayment of Loans, Capital Contributions, Higher

Education Activities ...................................................091–291500

474775All Other General Fund Proprietary Receipts Including

Budget Clearing Accounts ..........................................091–322000

8,57612,57010,753General Fund Offsetting receipts from the public .....................................

Intragovernmental payments:

..................................–13Undistributed Intragovernmental Payments and

Receivables from Cancelled Accounts ........................091–388500

..................................–13General Fund Intragovernmental payments ..............................................

✦

GENERAL PROVISIONSSEC. 301. No funds appropriated in this Act may be used for the transportation of

students or teachers (or for the purchase of equipment for such transportation) inorder to overcome racial imbalance in any school or school system, or for thetransportation of students or teachers (or for the purchase of equipment for suchtransportation) in order to carry out a plan of racial desegregation of any schoolor school system.

SEC. 302. None of the funds contained in this Act shall be used to require, directlyor indirectly, the transportation of any student to a school other than the schoolwhich is nearest the student's home, except for a student requiring special education,to the school offering such special education, in order to comply with title VI of theCivil Rights Act of 1964. For the purpose of this section an indirect requirement oftransportation of students includes the transportation of students to carry out a planinvolving the reorganization of the grade structure of schools, the pairing of schools,or the clustering of schools, or any combination of grade restructuring, pairing, orclustering. The prohibition described in this section does not include the establish-ment of magnet schools.

SEC. 303. No funds appropriated in this Act may be used to prevent the implement-ation of programs of voluntary prayer and meditation in the public schools.

(TRANSFER OF FUNDS)SEC. 304. Not to exceed 1 percent of any discretionary funds (pursuant to the

Balanced Budget and Emergency Deficit Control Act of 1985) which are appropriated

for the Department of Education in this Act may be transferred between appropri-ations, but no such appropriation shall be increased by more than 3 percent by anysuch transfer: Provided, That the transfer authority granted by this section shallnot be used to create any new program or to fund any project or activity for whichno funds are provided in this Act: Provided further, That the Committees on Appro-priations of the House of Representatives and the Senate are notified at least 15days in advance of any transfer.

SEC. 305. The Outlying Areas may consolidate funds received under this Act,pursuant to 48 U.S.C. 1469a, under subpart 1 of part A of title IV of the ESEA.

SEC. 306. Section 105(f)(1)(B)(ix) of the Compact of Free Association AmendmentsAct of 2003 (48 U.S.C. 1921d(f)(1)(B)(ix)) shall be applied by substituting "2018"for "2009".

SEC. 307. Funds consolidated for evaluation purposes under section 8601(c) ofthe ESEA shall be available from July 1, 2018, through September 30, 2019.

SEC. 308. (a) An institution of higher education that maintains an endowment fundsupported with funds appropriated for title III or V of the HEA for fiscal year 2018may use the income from that fund to award scholarships to students, subject to thelimitation in section 331(c)(3)(B)(i) of the HEA. The use of such income for suchpurposes, prior to the enactment of this Act, shall be considered to have been anallowable use of that income, subject to that limitation.

(b) Subsection (a) shall be in effect until titles III and V of the HEA are reauthor-ized.

SEC. 309. Section 114(f) of the HEA (20 U.S.C. 1011c(f)) is amended by striking"2016" and inserting "2018".

SEC. 310. Section 8501(b) of the Elementary and Secondary Education Act of1965 is amended by adding at the end, "(F) section 4631 with regard to ProjectSERV".

(CANCELLATION)SEC. 311. Of the unobligated balances available for carrying out subpart 1 of

part A of title IV of the HEA, $3,900,000,000 is hereby permanently cancelled.SEC. 312. Section 402H(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a-

18(b)) is amended—(a) In paragraph (2)—

(1) in subparagraph (A), in the material before clause (i), by striking "shall"and inserting in lieu thereof "may"; and

(2) in subparagraph (B), by inserting "the rigorous evaluation of the programsauthorized by this chapter, which may also include" after "primary purpose";and(b) by striking paragraph (3).

369DEPARTMENT OF EDUCATION GENERAL PROVISIONS

Documents

DEPARTMENT OF EDUCATION · DEPARTMENT OF EDUCATION OFFICE OF ELEMENTARY AND SECONDARY EDUCATION Federal Funds EDUCATION FOR THE DISADVANTAGED For carrying out title I of the Elementary