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DEPARTMENT OF EDUCATION

Federal Funds

87.00

Total outlays (gross) .................................................

271

691

730

89.00
90.00

OFFICE OF ELEMENTARY AND SECONDARY
EDUCATION

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

530
271

691
691

1,245
730

General and special funds:
EDUCATION REFORM
For carrying out activities authorized by titles III and IV of the
Goals 2000: Educate America Act, øand¿ the School-to-Work Opportunities Act, and section 3132 of the Elementary and Secondary Education Act of 1965, ø$691,000,000¿ $1,245,000,000, of which
ø$476,000,000¿ $603,500,000 for the Goals 2000ø: Educate America¿
Act and $200,000,000 for the School-to-Work Opportunities Act shall
become available on July 1, ø1997¿ 1998, and remain available
through September 30, ø1998¿ 1999: Provided, That none of the
funds appropriated under this heading shall be obligated or expended
to carry out section 304(a)(2)(A) of the Goals 2000ø: Educate America¿ Act, except that no more than $1,500,000 may be used to carry
out activities under section 314(a)(2) of that Act: Provided further,
That section 315(a)(2) of the Goals 2000 Act shall not apply: Provided
further, That up to one-half of one percent of the amount available
under section 3132 shall be set aside for the outlying areas, to be
distributed on the basis of their relative need as determined by the
Secretary in accordance with the purposes of the program: Provided
further, That if any State educational agency does not apply for a
grant under section 3132, that State’s allotment under section 3131
shall be reserved by the Secretary for grants to local educational
agencies in that State that apply directly to the Secretary according
to the terms and conditions published by the Secretary in the Federal
Register. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0500–0–1–501

Obligations by program activity:
Goals 2000:
00.01
State and local education systemic improvement
00.02
Parental assistance ...................................................
00.91
01.01
02.01
10.00

1996 actual

1998 est.

673
15

605
15

Total goals 2000 ...................................................
331
688
School-to-work opportunities .........................................
149
332
Technology Literacy Challenge Fund ............................. ................... ...................

620
200
425

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.21 Unobligated balance transferred to other accounts
22.22 Unobligated balance transferred from other accounts

321
10

1997 est.

480

1,020

1,245

21.40

265
329 ...................
530
691
1,245
–2 ................... ...................
16 ................... ...................

Note.—Includes $425 million in budget authority in 1998 for activities previously financed through the Department
of Education, Office of Educational Research and Improvement, Education Research, Statistics, and Improvement
account. The comparable amount for 1997 is $200 million and zero in 1996, since the program was first funded
in 1997.

Funds help States and localities undertake comprehensive
education reform, create State and local systems of schoolto-work transition for students, and implement educational
technology plans.
Goals 2000:
State and local education systemic improvement.—State
grants support State and local education improvement efforts to help all students reach challenging academic standards. At least 90 percent of the funds are provided to local
educational agencies. Funds also support evaluation of educational reform efforts.
Parental assistance.—Centers in 42 States would continue
to help provide parents with knowledge and skills they
need to participate effectively in their children’s education.
School-to-Work Opportunities.—School-to-work programs
are jointly administered by the Departments of Education
and Labor. An identical amount is provided for the Department of Labor to support these activities. Competitive, 5year grants are awarded to States that have completed and
are ready to implement their school-to-work plans. Thirtyseven States are currently in their first, second, or third year
of these grants. Requested funds would enable all States to
participate fully.
Direct grants are also provided to local partnerships serving
young people who live in urban and rural areas characterized
by high-poverty, as well as partnerships that serve Indian
youth. These funds also support a national evaluation, research, and development activities to provide national leadership and analysis of school-to-work opportunities initiatives.
Technology Literacy Challenge Fund.—All States will receive the second year of 5-year grants as part of the President’s plan to provide States and school districts with $2
billion over 5 years for computers, connections, training, and
software, in order to achieve the President’s four goals for
fully integrating technology into schools.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0500–0–1–501

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

809
–480

1,020
–1,020

1,245
–1,245

1998 est.

530

691

1,245

Advisory and assistance services ..................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

2
3

2
6

4
6

41.0

329 ................... ...................

25.1
25.2
25.3

1997 est.

1
474

1
1,011

1
1,234

99.9

Total obligations ........................................................

480

1,020

1,245

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

322
532
861
480
1,020
1,245
–271
–691
–730
1 ................... ...................
532

861

1,376

7
264

83
608

149
581

EDUCATION

FOR THE

DISADVANTAGED

For carrying out title I of the Elementary and Secondary Education
Act of 1965, and section 418A of the Higher Education Act,
ø$7,698,469,000¿ $8,077,266,000,
of
which
ø$6,380,114,000¿
$6,755,165,000 shall become available on July 1, ø1997¿ 1998, and
shall remain available through September 30, ø1998¿ 1999, and of
which $1,298,386,000 shall become available on October 1, ø1997¿
1998 and shall remain available through September 30, ø1998¿ 1999,
for academic year ø1997–1998¿ 1998–1999: Provided, That
415

416

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

General and special funds—Continued
EDUCATION

FOR THE

DISADVANTAGED—Continued

ø$6,194,850,000¿ $6,191,350,000 shall be available for basic grants
under section 1124: Provided further, That up to ø$3,500,000¿
$4,000,000 of these funds shall be available to the Secretary on October 1, ø1996¿ 1997, to obtain updated local-educational-agency-level
census poverty data from the Bureau of the Census: Provided further,
That $999,249,000 shall be available for concentration grants under
section 1124(A), $350,000,000 shall be available for targeted grants
under section 1125, øand $7,000,000¿ $10,000,000 shall be available
for evaluations under section 1501, and not more than $7,500,000
shall be reserved for section 1308, of which not more than $3,000,000
shall be reserved for section 1308(d). (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0900–0–1–501

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Direct program:
Grants to local educational agencies:
00.01
Basic grants .........................................................
4,835
6,181
6,191
00.02
Concentration grants ............................................
547
941
999
00.03
Targeted grants .................................................... ................... ...................
350
00.04
Set-aside for BIA/outlying areas ..........................
5
85 ...................
00.05
Capital expenses .......................................................
44
41
41
00.06
Even start ..................................................................
103
104
108
00.07
State agency programs .............................................
346
349
360
00.08
State school improvement ......................................... ................... ...................
8
00.09
Evaluation ..................................................................
3
7
10
00.10
Migrant education projects .......................................
9
9
10
00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

5,892
1

7,717
8,077
14 ...................

10.00

Total obligations ........................................................

5,893

7,731

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

17
5,911

41 ...................
7,690
8,077

8,077

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
41.00
Transferred to other accounts ...................................
43.00
61.00
65.00
68.00
70.00

7 ................... ...................
5,935
–5,893

7,731
–7,731

8,077
–8,077

41 ................... ...................

5,930
6,400
6,779
–34 ................... ...................

Appropriation (total) .............................................
5,896
6,400
6,779
Permanent:
Transferred to other accounts ................................... ...................
–8 ...................
Advance appropriation (definite) .............................. ...................
1,298
1,298
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
15 ................... ...................
Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

5,911

7,690

8,077

72.40

86.90
86.93
86.97
86.98
87.00

7,900
6,721
7,217
5,893
7,731
8,077
–7,034
–7,235
–7,476
–31 ................... ...................
–7 ................... ...................
6,721

7,217

7,818

Outlays (gross), detail:
Outlays from new current authority ..............................
330
Outlays from current balances ......................................
6,695
Outlays from new permanent authority ......................... ...................
Outlays from permanent balances ................................
9

768
5,421
1,032
14

813
5,390
1,038
235

7,235

7,476

Total outlays (gross) .................................................

7,034

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–15 ................... ...................

5,896
7,020

7,690
7,235

8,077
7,476

Grants to local educational agencies.—Funds will be allocated through the Basic, Concentration, and Targeted grant
formulas for local programs that stress the achievement of
challenging State education standards, support schoolwide improvement, integrate Title I assessment and curriculum with
State systemic reforms, and target funds to high-poverty
schools. Up to $4.0 million in Basic Grant funds will be used
to continue work needed to obtain updated poverty data at
the local educational agency level from the Bureau of the
Census, for use in allocating Title I funds beginning in 1999,
as required by the statute.
Capital expenses.—Funds are provided by formula to States
to support capital costs incurred by local educational agencies
that are associated with providing educational services to eligible children attending non-public schools.
State agency migrant program.—Funds are provided by formula to States for educational services to children of migratory farmworkers and fishers. Funds and services are concentrated on children who have moved within the past 36
months.
State agency neglected and delinquent program.—Funds are
provided by formula to States for educational services to children and youth under age 21 in State neglected, delinquent,
or adult correction facilities. Services help institutionalized
youth achieve the same challenging standards established for
students in local public schools.
State school improvement.—Funds are provided by formula
to States to be used for technical assistance, incentives, and
other strategies to assist schools and districts to implement
Title I programs that help children meet challenging State
education standards.
Evaluation.—Funds support national activities to evaluate
Title I programs and ongoing longitudinal studies of the program’s effectiveness in helping schools and children achieve
to challenging State education standards.
Migrant education projects.—Funds support grants to institutions of higher education and other non-profit agencies that
assist migrant students to earn a high school equivalency
certificate or to complete their first year of college.
Reimbursable program.—Amounts in this activity consist
of funds appropriated in other accounts for consolidated
grants to the insular areas.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0900–0–1–501

1997 est.

1998 est.

25.1
25.2
41.0

Direct obligations:
Advisory and assistance services .............................
Other services ............................................................
Grants, subsidies, and contributions ........................

6
3
5,883

8
6
7,703

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

5,892
1

7,717
8,077
14 ...................

99.9

Total obligations ........................................................

5,893

7,731

11
6
8,060

8,077

IMPACT AID
For carrying out programs of financial assistance to federally affected schools authorized by title VIII of the Elementary and Secondary Education Act of 1965, ø$730,000,000¿, $658,000,000, of which
ø$615,500,000¿ $584,000,000 shall be for basic support payments
under section 8003(b), $40,000,000 shall be for payments for children
with disabilities under section 8003(d), ø$52,000,000¿ $20,000,000,
to remain available until expended, shall be for payments under

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
section 8003(f), ø$5,000,000¿ $4,000,000 shall be for construction
under section 8007, and $10,000,000, to remain available until expended, shall be for facilities maintenance activities under section
8008 ø$17,500,000 shall be for Federal property payments under section 8002¿: Provided, That payments and eligibility under section
8003 shall be based only on federally connected children described
in sections 8003(a)(1)(B) and 8003(a)(1)(C): Provided further, That
notwithstanding the provisions of section 8003(b)(1)(B), any local educational agency that received a payment based on federally connected
children described in sections 8003(a)(1)(B) and 8003(a)(1)(C) for fiscal
year 1997 shall be eligible to receive a payment under sections 8003(b)
and 8003(d) for fiscal year 1998: Provided further, That notwithstanding the provisions of section 8003(b)(1)(C), the maximum amount of
the basic support payment shall be determined by multiplying each
local educational agency’s weighted student units for federally connected children described in sections 8003(a)(1)(B) and 8003(a)(1)(C)
by the factor described under section 8003(b)(1)(C)(iv): Provided further, That notwithstanding the provisions of section 8003(b)(2), if
funds provided are insufficient to pay each local educational agency
the full amount of its payment calculated under section 8003(b)(1)(C),
then payments shall be ratably reduced: Provided further, That none
of the funds provided shall be used for payments under section
8003(e). (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0102–0–1–501

Obligations by program activity:
Payments for federally connected children:
00.01
Basic support payments ...........................................
00.02
Supplemental payments for children with disabilities .......................................................................
00.03
Payments for heavily impacted districts ..................

1996 actual

1997 est.

1998 est.

582

615

584

40
41

40
101

663
756
6
12
13
22
16
18
3
4
1
27
1 ...................

644
10
4
...................
...................
...................
...................

children living on Indian lands and military dependents living
on Federal property.
Basic support payments.—Payments would be made on behalf of approximately 330,000 federally connected children
enrolled in nearly 1,000 school districts across the country.
The request would provide an average payment of $1,770
for each of these federally connected children.
Supplemental payments for children with disabilities.—Payments would be made for additional assistance to school districts educating federally connected children with disabilities.
Approximately 31,000 such children are enrolled in school
districts across the country. The request would provide approximately $1,300 in additional assistance for the education
of each of these children.
Payments for heavily impacted districts.—Increased payments would be provided for certain heavily impacted school
districts, including school districts whose boundaries are the
same as a military base, and school districts that enroll high
proportions of federally connected children and meet certain
fiscal requirements.
Facilities maintenance.—Funds would be used to provide
emergency repairs for school facilities that are owned by the
Department of Education and to facilitate the transfer of the
facilities to local educational agencies.
Construction.—Formula-based payments for capital improvements would be made to school districts that meet the
statutory eligibility criteria.

40
20

00.91
01.01
02.01
03.01
04.01
05.01
06.01

Subtotal, payments for federally connected children
Facilities maintenance ...................................................
Construction ...................................................................
Payments for Federal property .......................................
Payments for section 3(d)(2)(B) ....................................
Disaster assistance .......................................................
Construction (P.L. 81–815) ...........................................

10.00

Total obligations ........................................................

703

839

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

105
693

109 ...................
730
658

Object Classification (in millions of dollars)
Identification code 91–0102–0–1–501

40.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

1996 actual

1997 est.

1998 est.

32.0
41.0

Land and structures ......................................................
Grants, subsidies, and contributions ............................

6
697

12
827

10
648

99.9

Total obligations ........................................................

703

839

658

SCHOOL CONSTRUCTION

658

(Legislative proposal, subject to PAYGO)

21.40

23.90
23.95
24.40

417

Program and Financing (in millions of dollars)
Identification code 91–0010–4–1–501

14 ................... ...................

1996 actual

1997 est.

1998 est.

658
–658

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................

5,000

109 ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

5,000
–5,000

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

5,000

812
–703

693

839
–839

730

658

373
320
258
703
839
658
–952
–901
–701
210 ................... ...................
–14 ................... ...................
320

258

73.10
73.20
74.40

215

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

5,000
–1,250
3,750

86.90
531
421

599
302

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

1,250

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

5,000
1,250

532
169

87.00

Total outlays (gross) .................................................

952

901

701

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

693
952

730
901

658
701

Funds help to pay the operating costs of local educational
agencies that are affected by Federal activities. Payments
would be made to local educational agencies that educate

School construction.—Under legislation that the Administration is submitting to the Congress in 1997, funds would
provide Federal interest subsidies, or similar assistance, to
States and localities to stimulate public elementary and secondary school construction and renovation. The legislation
would create a one-time mandatory appropriation of $5 billion.

418

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
90.00

General and special funds—Continued
SCHOOL IMPROVEMENT PROGRAMS
For carrying out school improvement activities authorized by titles
II, IVø–A–1¿, V–A and B, øVI¿, IX, X and XIII of the Elementary
and Secondary Education Act of 1965; the Stewart B. McKinney
Homeless Assistance Act; and the Civil Rights Act of 1964;
ø$1,425,631,000¿ $1,299,222,000,
of
which
ø$1,202,478,000¿
$977,000,000 shall become available on July 1, ø1997¿ 1998, and
remain available through September 30, ø1998¿ 1999: Provided, That
of the amount appropriated, ø$310,000,000¿ $360,000,000 shall be
for Eisenhower professional development State grants under title IIB of the Elementary and Secondary Education Act; $100,000,000 shall
be for charter schools under title X, part C of such Act; and
ø$310,000,000 shall be for innovative education program strategies
State grants under title VI-A.¿ $750,000 shall be for an evaluation
of comprehensive regional assistance centers under title XIII of such
Act: Provided further, That funds under titles II–B and IV–A–1 shall
be used only for programs that are consistent with principles of effectiveness to be published in the Federal Register by the Secretary of
Education. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–1000–0–1–501

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Professional development and program innovation:
00.01
Eisenhower professional development State grants
273
311
360
00.02
Innovative education program strategies State
grants ....................................................................
275
310 ...................
Safe and drug-free schools and communities:
00.03
State grants ..............................................................
438
558
590
00.04
National programs .....................................................
25 ...................
30
00.05 Inexpensive book distribution ........................................
10
10
12
00.06 Arts in education ...........................................................
9
9
10
00.07 Magnet schools assistance ...........................................
95
95
95
00.08 Education for homeless children and youth .................
23
25
27
00.09 Women’s educational equity .......................................... ...................
2
4
00.10 Training and advisory services ......................................
7
7
14
00.11 Ellender fellowships .......................................................
2
2 ...................
00.12 Education for Native Hawaiians ....................................
12
15
15
00.13 Alaska Native education equity ..................................... ...................
8
8
00.14 Foreign language assistance .........................................
10 ................... ...................
00.15 Charter schools ..............................................................
18
51
100
00.16 Comprehensive regional assistance centers .................
22
26
34
10.00

Total obligations ........................................................

1,219

1,429

1,299

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

5
1,218

4 ...................
1,426
1,299

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

1,223
–1,219

1,430
–1,429

1,299
–1,299

4 ................... ...................

40.00
41.00

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred to other accounts .......................................

43.00

Appropriation (total) ..................................................

1,218

1,426

1,299

70.00

Total new budget authority (gross) ..........................

1,218

1,426

1,299

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1,224
1,426
1,299
–6 ................... ...................

72.40

1,761
1,693
1,606
1,219
1,429
1,299
–1,246
–1,516
–1,396
–41 ................... ...................
1,693

1,606

1,509

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

51
1,195

171
1,345

156
1,240

87.00

Total outlays (gross) .................................................

1,246

1,516

Net budget authority and outlays:
Budget authority ............................................................

1,218

1,426

1,299

1,246

1,516

1,396

Eisenhower professional development State grants.—Formula grants are provided to States, local districts, and institutions of higher education to support intensive, high-quality
professional development in the core academic subject areas.
Safe and drug-free schools and communities.—
State grants.—Formula grants are made to States and Outlying Areas to assist in combatting school violence and drug
use by the Nation’s children and youth.
National programs.—Funds support activities to promote
safe and disciplined academic environments and prevent the
illegal use of drugs and violence among students at all educational levels. Such activities may include training, demonstrations, direct services to school districts with severe drug
and violence problems, program evaluation, and development
and dissemination of information and materials.
Other programs.—
Inexpensive book distribution.—Funds support reading motivation activities, including the distribution of free books to
children.
Arts in education.—Funds support Federal leadership activities in arts education as well as the education activities
of the Kennedy Center and Very Special Arts.
Magnet schools assistance.—Grants are made to local educational agencies to establish and operate magnet school programs that are part of approved desegregation plans.
Education for homeless children and youth.—Funds are provided to States, Outlying Areas, and the Bureau of Indian
Affairs to provide educational and support services that enable homeless children and youth to enroll in, attend, and
achieve success in school.
Women’s educational equity.—Funds support implementation of gender-equity practices at schools and colleges, as well
as the development and dissemination of educational materials that promote educational equity for women and girls.
Training and advisory services.—Grants are made to regional desegregation assistance centers and State Educational
Agencies that provide technical assistance to school districts
in desegregating public schools and developing effective methods of coping with special educational problems associated
with desegregation.
Education for Native Hawaiians.—Grants provide supplemental education services to Native Hawaiians in the areas
of family-based education, special education, gifted and talented education, higher education, curriculum development,
teacher training and recruitment, and community-based
learning.
Alaska Native education equity.—Grants provide supplemental education services to Alaska Natives in the areas of
educational planning, curriculum development, teacher training, teacher recruitment, student enrichment, and home-based
instruction for pre-school children.
Charter schools.—The President is proposing a significant
increase in this program to support innovative education reform and public school choice. Grants are awarded to State
educational agencies and charter schools to support the design
and initial implementation of model charter schools. These
schools are created by teachers, parents, and members of
the community, and are exempt from certain local, State,
and Federal regulations.
Comprehensive regional assistance centers.—Funds are provided for 15 comprehensive regional technical assistance centers that provide services to States, local educational agencies,
schools, and other recipients of Federal education funds to
improve elementary and secondary education programs.

1,396

89.00

Outlays ...........................................................................

Object Classification (in millions of dollars)
Identification code 91–1000–0–1–501

24.0

Printing and reproduction ..............................................

1996 actual

1

1997 est.

1998 est.

1

1

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

419

25.1
25.2
25.5
41.0

Advisory and assistance services ..................................
Other services ................................................................
Research and development contracts ...........................
Grants, subsidies, and contributions ............................

2
14
1
1,201

2
17
1
1,408

2
20
1
1,275

73.20
74.40

99.9

Total obligations ........................................................

1,219

1,429

1,299

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
1
4
4

AMERICA READS CHALLENGE
(Legislative proposal, subject to PAYGO)

Total outlays (gross) ......................................................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

–1

–4

–4

1

3

3

1

4

4

Program and Financing (in millions of dollars)
Identification code 91–0011–4–1–501

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
America’s Reading Corps .............................................. ................... ...................
Parents as first teachers grants ................................... ................... ...................

200
60

10.00

Total obligations (object class 41.0) ........................ ................... ...................

260

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

260
–260

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

260

73.10
73.20
74.40

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

Funds made available under this account were reappropriated by the Supplemental Appropriations Act, 1987 (Public
Law 100–71) from funds enjoined in United States of America
v. Board of Education of the City of Chicago. The funds were
reappropriated for the specific purpose of settling this case.
The funds are used by the Chicago Board of Education to
implement Project CANAL (Creating A New Approach to
Learning), the project approved by the court to support the
Board’s desegregation efforts.
The Department of Education provides these funds to the
Chicago Board of Education in annual increments upon receipt and approval of an annual plan for Project CANAL
activities.

260
–31
229

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

31

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

INDIAN EDUCATION
For necessary expenses to carry out, to the extent not otherwise
provided, title IX, part A of the Elementary and Secondary Education
Act of 1965, as amended, and section 215 of the Department of
Education Organization Act, ø$61,000,000¿ $62,600,000. (Department
of the Interior and Related Agencies Appropriations Act, 1997.)

260
31

Program and Financing (in millions of dollars)
Identification code 91–0101–0–1–501

America’s Reading Corps.—The President has proposed a
new initiative to work with families and communities in a
national reading effort that will enlist a million trained and
supervised reading tutors, most of whom will participate in
after-school, weekend, and summer reading programs, to assist in teaching at least three million children to read independently and well by the end of the third grade. Department
of Education funding for the America’s Reading Corps will
pay primarily for reading specialists and materials to train
tutors while tutor recruitment efforts will be the focus of
additional funds requested in the budget for the Corporation
for National and Community Service.
Parents as First Teachers grants.—Funds will be made
available to national and regional groups, as well as local
communities and organizations, to support effective, proven
literacy efforts that help parents to help their children become
successful readers by the end of third grade.

00.01
00.02
00.03

Obligations by program activity:
Grants to local educational agencies ...........................
Fellowships .....................................................................
Federal Administration ...................................................

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

1996 actual

1997 est.

1998 est.

50
58
60
1 ................... ...................
2
3
3
53

61

63

21.40

23.90
23.95
24.40

40.00

1 ................... ...................
52
61
63

Total budgetary resources available for obligation
53
61
63
New obligations .............................................................
–53
–61
–63
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ................... ...................
New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

52

61

63

72.40

CHICAGO LITIGATION SETTLEMENT
Program and Financing (in millions of dollars)
Identification code 91–0220–0–1–501

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
23.95 New obligations .............................................................
24.40 Unobligated balance available, end of year:
Uninvested balance ...................................................

1996 actual

1997 est.

1998 est.

66

60

62

5

4

10
–1

9
–5

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

2
75

9
58

10
51

87.00

1

Total outlays (gross) .................................................

77

67

61

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

52
77

61
67

63
61

4
–4

21.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................

93
66
60
53
61
63
–77
–67
–61
–3 ................... ...................

9

4 ...................

89.00
90.00

2
1

1
5

The Indian Education program (Title IX, Part A of the
Elementary and Secondary Education Act) supports the efforts of local educational agencies and tribal schools to im-

72.40

3
4

420

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
INDIAN EDUCATION—Continued

prove teaching and learning for the Nation’s American Indian
and Alaska Native children.
Grants to local educational agencies.—Formula grants support local educational agencies in their efforts to reform elementary and secondary school programs that serve Indian
students, with the goal of ensuring that such programs are
based on challenging State standards that are used for all
students. In 1996, 1,219 formula grants were made to local
educational agencies and certain tribal schools enrolling approximately 422,500 Indian students.
Federal administration.—Funds support the administrative
expenses of the Office of Indian Education and the National
Advisory Council on Indian Education.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0101–0–1–501

11.1
41.0
99.5
99.9

1997 est.

Personnel compensation: Full-time permanent .............
2
Grants, subsidies, and contributions ............................
51
Below reporting threshold .............................................. ...................
Total obligations ........................................................

1998 est.

2
58
1
61

53

2
60
1
63

Personnel Summary
1996 actual

Identification code 91–0101–0–1–501

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

30

1998 est.

24

24

OFFICE OF BILINGUAL EDUCATION AND
MINORITY LANGUAGES AFFAIRS
Federal Funds
General and special funds:
BILINGUAL

AND

IMMIGRANT EDUCATION

For carrying out, to the extent not otherwise provided, bilingual,
foreign language and immigrant education activities authorized by
parts A and C and section 7203 of title VII of the Elementary and
Secondary Education Act, without regard to section 7103(b),
ø$261,700,000¿ $354,000,000, of which ø$100,000,000¿ $150,000,000
shall be for immigrant education programs authorized by part C:
Provided, That State educational agencies may use all, or any part
of, their part C allocation for competitive grants to local educational
agencies: Provided further, That the Department of Education should
only support instructional programs which ensure that students completely master English in a timely fashion (a period of three to five
years) while meeting rigorous achievement standards in the academic
content areas. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–1300–0–1–501

1996 actual

1997 est.

1998 est.

Obligations by program activity:
00.01 Instructional services .....................................................
117
157
00.02 Support services ............................................................
10 ...................
00.03 Training grants ..............................................................
1 ...................
00.04 Foreign Language Assistance ........................................ ...................
5
00.05 Immigrant education .....................................................
50
100

160
14
25
5
150

10.00

Total obligations ........................................................

178

262

354

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

178
–178

262
–262

354
–354

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

178

262

354

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................

266

241

278

72.40

73.10
73.20
73.40
74.40

New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

178
262
354
–185
–225
–276
–18 ................... ...................
241

278

356

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

4
181

31
194

42
234

87.00

Total outlays (gross) .................................................

185

225

276

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

178
185

262
225

354
276

Bilingual education.—These programs provide assistance to
local educational agencies and other entities to develop and
enhance their capacity to provide high-quality instructional
programs to children and youth of limited English proficiency.
Programs are designed to teach English and to assist these
students in achieving the same challenging State content and
performance standards expected of all children and youth.
Aid is also given to train educational personnel to serve limited English proficient children, to build State capacity to
improve educational services for these children, and for information dissemination, studies, and evaluations.
Foreign language assistance.—The foreign language assistance program provides competitive grants to State and local
educational agencies to improve the quality of foreign language instruction for elementary and secondary school students.
Immigrant education.—The immigrant education program
provides grants to school districts to help finance educational
services for immigrant students. Participation is limited to
districts with 500 immigrant students or districts in which
immigrant children represent at least 3 percent of the enrollment. Awards are made to State educational agencies, which
make subgrants to eligible local educational agencies. Appropriation language permits States to distribute these funds
on either a formula or discretionary grant basis.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–1300–0–1–501

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

99.9

Total obligations ........................................................

1997 est.

1998 est.

2 ...................
176
262

6
348

178

354

262

OFFICE OF SPECIAL EDUCATION AND
REHABILITATIVE SERVICES
Federal Funds
General and special funds:
SPECIAL EDUCATION
øFor carrying out parts B, C, D, E, F, G, and H and section
610(j)(2)(C) of the Individuals with Disabilities Education Act,
$4,036,000,000, of which $3,783,685,000 shall become available for
obligation on July 1, 1997, and shall remain available through September 30, 1998: Provided, That the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of Palau shall
continue to be eligible to receive funds under the Individuals with
Disabilities Education Act consistent with the provisions of Public
Law 104–134: Provided further, That the entities that received competitive awards for direct services to children under section 611 of
the Individuals with Disabilities Education Act in accordance with
the competition required in Public Law 104–134 shall continue to
be funded, without competition, in the same amounts as under Public
Law 104–134.¿ (Department of Education Appropriations Act, 1997.)

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Program and Financing (in millions of dollars)
1996 actual

Identification code 91–0300–0–1–501

1997 est.

1998 est.

Obligations by program activity:
State grants:
00.01
Grants to States ........................................................
00.02
Preschool grants ........................................................
00.03
Grants for infants and families ................................

2,349
366
429

3,119 ...................
361 ...................
505 ...................

00.91

3,145

3,985 ...................

01.01
01.02
01.03
01.04
01.05
01.06
01.07
01.08
01.09
01.10
01.11
01.12
01.13
01.14
01.15

Subtotal, State grants ..........................................
Special purpose funds:
Deaf-blindness ..........................................................
Serious emotional disturbance ..................................
Severe disabilities .....................................................
Early childhood education .........................................
Secondary and transitional services .........................
Postsecondary education ...........................................
Innovation and development .....................................
Media and captioning services .................................
Technology applications ............................................
Special studies ..........................................................
Personnel development ..............................................
Parent training ..........................................................
Clearinghouses ..........................................................
Regional resource centers .........................................
Architectural barriers removal ..................................

13
13
4
4
10
10
25
25
24
24
9
9
14
16
19
20
10
10
4
4
91
93
14
16
2
2
7
7
1 ...................

...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................

421

When new authorizing legislation is enacted, resources will
be requested for the Special Education account. See the ‘‘Legislative proposal, not subject to PAYGO’’ schedule for additional details.
Program measures under the current program include:
Number of children served on December 1 of fiscal year:
Ages 3 through 21 ..................................................................
Ages 3 through 5 ....................................................................
Birth through 2 .......................................................................
Educational Environment
Children ages 3 through 21 provided special education in:
Regular classrooms with or without resource rooms .............
Separate classes .....................................................................
Separate schools .....................................................................
Residential facilities ...............................................................

1995 actual

1996 actual

1997 est.

5,439,626
524,458
165,253

5,628,577
549,154
174,288

5,798,000
577,000
184,000

1991–1992
actual

1992–1993
actual

1993–1994
actual

3,397,326
1,160,943
219,055
40,893

3,563,883
1,219,867
204,764
40,466

3,746,481
1,232,312
192,112
37,299

100,742
30,839
4,337
51,489
41,961

103,801
34,732
5,096
NA
NA

113,945
23,948
4,594
76,608
42,460

Status of Exiting Students
Graduated with a diploma ..........................................................
Graduated through certification ..................................................
Reached maximum age ...............................................................
Dropped out of school .................................................................
Status unknown ...........................................................................
NA—Not available due to changes in data collection form.

Object Classification (in millions of dollars)

01.91

Subtotal, Special purpose funds ..........................

246

252 ...................

10.00

Total obligations ........................................................

3,390

4,238 ...................

25.2
25.5
41.0

Other services ................................................................
Research and development contracts ...........................
Grants, subsidies, and contributions ............................

8
1
3,381

8 ...................
1 ...................
4,229 ...................

339
3,245

202 ...................
4,036 ...................

99.9

Total obligations ........................................................

3,390

4,238 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.30 Unobligated balance expiring ........................................
21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1997 est.

1998 est.

SPECIAL EDUCATION
8 ................... ...................
–1 ................... ...................
3,592
–3,390

4,238 ...................
–4,238 ...................

202 ................... ...................

(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 91–0300–2–1–501

1996 actual

1997 est.

1998 est.

4,036 ...................

3,952
4,055
4,867
3,390
4,238 ...................
–3,222
–3,426
–3,332
–57 ................... ...................
–8 ................... ...................

Obligations by program activity:
State grants:
00.01
Grants to States ........................................................ ................... ...................
00.02
Preschool grants ........................................................ ................... ...................
00.03
Grants for infants and families ................................ ................... ...................

3,249
375
324

00.91

3,245

72.40

3,948

4,867

................... ...................

122
3,100

404 ...................
3,022
3,332

87.00

Total outlays (gross) .................................................

3,222

3,426

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

3,245
3,222

4,036 ...................
3,426
3,332

3,332

Summary of Budget Authority and Outlays
[In millions of dollars]

Enacted/requested:
1996 actual
1997 est.
1998 est.
Budget Authority .....................................................................
3,245
4,036 ....................
Outlays ....................................................................................
3,222
3,426
3,332
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
4,210
Outlays .................................................................................... .................... ....................
421
4,036
3,426

...................
...................
...................
...................

100
35
82
16

................... ...................

30

Subtotal, Program support and improvement ...... ................... ...................

262

10.00

Total obligations ........................................................ ................... ...................

4,210

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

4,210
–4,210

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

4,210

1,535

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

3,245
3,222

01.01
01.02
01.03
01.04
01.05

Subtotal, State grants ..........................................
Program support and improvement:
Research to practice .................................................
State improvement ....................................................
Professional development ..........................................
Parent training and information ...............................
Technology development and educational media
services .................................................................

01.91

4,055

86.90
86.93

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

1996 actual

Identification code 91–0300–0–1–501

4,210
3,753

The administration will propose legislation authorizing programs under the Individuals with Disabilities Education Act.

73.10
73.20
74.40

...................
...................
...................
...................

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

4,210
–421
3,789

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

421

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

4,210
421

The resources in this schedule are proposed for later transmittal under proposed legislation to authorize programs under
the Individuals with Disabilities Education Act.

422

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
23.90
23.95
24.40

General and special funds—Continued
SPECIAL EDUCATION—Continued

State grants.—
Grants to States.—Formula grants are provided to States
to assist them in providing special education and related
services to children with disabilities ages 3 through 21.
The 1998 estimate of these children is 5,906,000.
Preschool Grants.—Formula grants provide additional
funds to States to further assist them in providing special
education and related services to children with disabilities
ages 3 through 5 served under the Grants to States program. The 1998 estimate of these children is 600,000.
Grants for infants and families.—Formula grants are provided to assist States to continue to implement statewide
systems of coordinated, comprehensive, multi-disciplinary
interagency programs to provide early intervention services
to children with disabilities, birth through age 2 years and
their families.
Program support and improvement.—These funds support
a variety of research, demonstration, training, technical assistance, systems change, and other activities.
The Department is in the process of developing performance
indicators that will provide information on the impact of special education and early intervention on improving results
for children with disabilities.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0300–2–1–501

1997 est.

1998 est.

25.2
25.5
41.0

Other services ................................................................ ................... ...................
Research and development contracts ........................... ................... ...................
Grants, subsidies, and contributions ............................ ................... ...................

8
1
4,201

99.9

Total obligations ........................................................ ................... ...................

4,210

REHABILITATION SERVICES

AND

DISABILITY RESEARCH

For carrying out, to the extent not otherwise provided, øthe Rehabilitation Act of 1973,¿ the Technology-Related Assistance for Individuals with Disabilities Act, øand the Helen Keller National Center
Act, as amended, $2,509,447,000¿ $36,109,000. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0301–0–1–506

Obligations by program activity:
Direct program:
00.01
Vocational rehabilitation State grants ......................
00.02
Client assistance State grants .................................
00.03
Training .....................................................................
00.04
Special demonstration programs ..............................
00.05
Migratory workers ......................................................
00.06
Recreational programs ..............................................
00.07
Protection and advocacy ...........................................
00.08
Projects with industry ...............................................
00.09
Supported employment State grants ........................
00.10
Independent living .....................................................
00.11
Program improvement ...............................................
00.12
Evaluation ..................................................................
00.13
Helen Keller National Center .....................................
00.14
National Institute on Disability and Rehabilitation
Research ...............................................................
00.15
Assistive technology ..................................................
00.16
1996 Paralympics Games .........................................

1996 actual

2,114
10
40
26
1
3
7
22
38
73
1
2
7

1997 est.

2,176
10
40
20
2
3
8
22
38
75
2
2
7

1998 est.

...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................

70
70 ...................
36
36
36
7 ................... ...................

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

2,457
2,511
36
2 ................... ...................

10.00

Total obligations ........................................................

2,459

2,511

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

2
2,458

1 ...................
2,509
36

36

21.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

2,460
–2,459

2,510
–2,511

36
–36

1 ................... ...................

2,456

2,509

36

2 ................... ...................
2,458

2,509

36

72.40

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

922
951
760
2,459
2,511
36
–2,413
–2,702
–665
–18 ................... ...................
951

760

131

1,617
1,932
28
794
770
637
2 ................... ...................
2,413

2,702

665

–2 ................... ...................

2,456
2,410

2,509
2,702

36
665

Summary of Budget Authority and Outlays
[In millions of dollars]

Enacted/requested:
1996 actual
1997 est.
Budget Authority .....................................................................
2,456
2,509
Outlays ....................................................................................
2,411
2,702
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

2,456
2,411

2,509
2,702

1998 est.

36
665
2,547
1,961
2,583
2,626

The administration will propose legislation authorizing programs under the Rehabilitation Act and the Helen Keller
National Center Act. When new legislation is enacted, resources for the affected programs will be requested. See the
‘‘Legislative proposal, not subject to PAYGO’’ schedule for additional details.
Programs and activities under the current laws are described below.
Vocational rehabilitation State grants.—The basic State
grant program provides Federal matching funds to State vocational rehabilitation (VR) agencies to assist individuals with
physical or mental impairments to become gainfully employed. Services provided include vocational evaluation, counseling, mental and physical restoration, education, vocational
training, work adjustment, job placement, and post-employment services. Priority is given to serving those with the
most severe disabilities.
As a result of the 1992 amendments to the Rehabilitation
Act, the eligibility rate (applicants determined eligible for the
VR program as a percent of all eligibility determinations)
rose from 56.5 percent in 1992 to 76.5 percent in 1996. Half
of the State VR agencies (41 of 82) could not serve all individuals determined to be eligible for the program. Of those individuals whose cases were closed in 1996 after receiving VR
services, about 60 percent achieved an employment outcome
and an estimated 86 percent of these individuals entered the
competitive labor market or became self-employed.

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

The table below presents national estimates of the number
of eligible individuals in the VR system (individuals being
served and eligible individuals awaiting service) and estimates of the number of individuals who achieved an employment outcome under the program.
ESTIMATES OF ELIGIBLE INDIVIDUALS AND INDIVIDUALS REHABILITATED
1995
actual

Eligible individuals in the VR system ...........................................................
Severe disabilities, percent .......................................................................
Individuals achieving employment outcomes ................................................
Severe disabilities, percent .......................................................................

1,250,314
75.2
209,509
76.0

1996
preliminary

1,254,100
75.5
209,500
77.3

Client assistance State grants.—Formula grants are made
to States to provide assistance in informing and advising clients and applicants of benefits available under the Rehabilitation Act and, if requested, to pursue legal or administrative
remedies to ensure the protection of the rights of individuals
with disabilities.
Training.—Grants are made to States and public or nonprofit agencies and organizations, including institutions of
higher education, to increase the number of skilled personnel
available for employment in the field of rehabilitation.
Special demonstration programs.—Grants are made to develop innovative methods and comprehensive service programs to assist individuals with disabilities to achieve satisfactory vocational outcomes. Supported employment projects,
which provide grants to expand or improve the provision of
supported employment services to individuals with the most
severe disabilities, are included under this activity.
Migratory workers.—Grants are made to State VR agencies
and other nonprofit or local agencies to provide comprehensive
vocational rehabilitation services to migrant or seasonal farm
workers with disabilities.
Recreational programs.—Grants are made to provide individuals with disabilities with recreation and related activities
to aid in their employment, mobility, independence, socialization, and community integration.
Protection and advocacy of individual rights.—Formula
grants are made to State protection and advocacy systems
to protect the legal and human rights of individuals with
disabilities.
Projects with industry.—Grants are made to a variety of
public and private organizations, including State VR agencies,
community rehabilitation programs, and labor organizations
to provide training in work settings to prepare individuals
with disabilities for employment and career advancement in
the competitive labor market.
Supported employment State grants.—Formula grants are
made to assist States in developing programs with public
and nonprofit organizations to provide supported employment
services for individuals with the most severe disabilities who
require on-going support services to enter or retain competitive employment.
Independent living.—Grants are awarded to States and nonprofit agencies for services designed to enable individuals with
significant disabilities to live and function more independently.
Program Improvement.—Funds are used to promote broadbased planning and coordination, improve accountability, and
enhance the Department’s ability to address critical areas
of national significance in achieving the purposes of the Rehabilitation Act. Examples of program improvement activities
include technical assistance activities of national scope, and
the development of an effective data management and reporting system, including program performance measures.
Evaluation.—Studies are conducted to evaluate the impact
and effectiveness of various programs authorized under the
Rehabilitation Act. The Department is conducting a multiyear national longitudinal study of the Vocational rehabilitation State grants program.

423

Helen Keller National Center for Deaf-Blind Youths and
Adults.—The Center provides services to deaf-blind youths
and adults and provides training and technical assistance
to professional and allied personnel at its national headquarters center and through its regional representatives and
affiliate agencies.
National Institute on Disability and Rehabilitation Research.—The Institute carries out a comprehensive and coordinated program of rehabilitation research and related activities. Through grants and contracts, it supports research
and training centers, rehabilitation engineering centers, research and demonstration projects, information dissemination
and utilization projects, and training activities.
Assistive technology.—Grants are made to States to support
systems change and advocacy activities designed to develop
and implement consumer-responsive comprehensive statewide
programs of technology-related assistance for individuals with
disabilities.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0301–0–1–506

25.1
25.2
25.3
25.5
41.0

Advisory and assistance services ..................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Research and development contracts ...........................
Grants, subsidies, and contributions ............................

1997 est.

1998 est.

5
2

7
1
2 ...................

1
1
2,448

1 ...................
1 ...................
2,500
35

99.0

Subtotal, direct obligations ..................................

2,457

2,511

36

99.9

Total obligations ........................................................

2,459

2,511

36

REHABILITATION SERVICES

AND

DISABILITY RESEARCH

(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
1996 actual

1997 est.

...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................

...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................

2,247
11
40
17
2
3
8
22
38
76
4
1
7

................... ...................

71

10.00

Total obligations ........................................................ ................... ...................

2,547

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

2,547
–2,547

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

2,547

Identification code 91–0301–2–1–506

Obligations by program activity:
Direct program:
00.01
Vocational rehabilitation State grants ......................
00.02
Client assistance State grants .................................
00.03
Training .....................................................................
00.04
Special demonstration programs ..............................
00.05
Migratory workers ......................................................
00.06
Recreational programs ..............................................
00.07
Protection and advocacy ...........................................
00.08
Projects with industry ...............................................
00.09
Supported employment State grants ........................
00.10
Independent living .....................................................
00.11
Program improvement ...............................................
00.12
Evaluation ..................................................................
00.13
Helen Keller National Center .....................................
00.14
National Institute on Disability and Rehabilitation
Research ...............................................................

73.10
73.20
74.40

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

1998 est.

2,547
–1,961
587

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

1,961

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

2,547
1,961

424

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
REHABILITATION SERVICES

AND

Institute may at its discretion use funds for the endowment program
as authorized under section 207. (Department of Education Appropriations Act, 1997.)

DISABILITY RESEARCH—Continued

The administration is currently preparing a legislative proposal to reauthorize the expiring Rehabilitation Act and the
Helen Keller National Center Act. The resources in this
schedule are distributed under current law for illustrative
purposes. The distribution of resources is subject to change
pending the enactment of new authorizing legislation.

1996 actual

25.1
25.2
25.3
25.5
41.0
99.9

Advisory and assistance services ..................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Research and development contracts ...........................
Grants, subsidies, and contributions ............................

1997 est.

1998 est.

................... ...................
................... ...................

6
2

................... ...................
................... ...................
................... ...................

1
1
2,537

Total obligations ........................................................ ................... ...................

2,547

SPECIAL INSTITUTIONS

FOR

Identification code 91–0601–0–1–502

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

42

43

43

22.00
23.95

Object Classification (in millions of dollars)
Identification code 91–0301–2–1–506

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

42
–42

43
–43

43
–43

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

42

43

43

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ................... ...................
73.10 New obligations .............................................................
42
43
73.20 Total outlays (gross) ......................................................
–42
–40
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ...................
3

3
43
–43

72.40

PERSONS WITH DISABILITIES

Outlays (gross), detail:
Outlays from new current authority ..............................
42
40
Outlays from current balances ...................................... ................... ...................

2

AMERICAN PRINTING HOUSE FOR THE BLIND

86.90
86.93

For carrying out the Act of March 3, 1879, as amended (20 U.S.C.
101 et seq.), $6,680,000. (Department of Education Appropriations
Act, 1997.)

87.00

Total outlays (gross) .................................................

42

40

43

Program and Financing (in millions of dollars)

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

42
42

43
40

43
43

Identification code 91–0600–0–1–501

1996 actual

1997 est.

40
3

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

7

7

7

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

7
–7

7
–7

7
–7

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

7

7

This residential center provides postsecondary technical and
professional education for people who are deaf to prepare
them for employment, provides training, and conducts applied
research into employment related aspects of deafness. In
1996, Federal appropriations represented 81.8 percent of the
Institute’s operating budget. The Institute may also use appropriated funds for the Endowment Grant program.

7

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

GALLAUDET UNIVERSITY

72.40

1
7
–5

2 ...................
7
7
–9
–7

2 ................... ...................

For the Kendall Demonstration Elementary School, the Model Secondary School for the Deaf, and the partial support of Gallaudet
University under titles I and II of the Education of the Deaf Act
of 1986 (20 U.S.C. 4301 et seq.), $79,182,000: Provided, That from
the amount available, the University may at its discretion use funds
for the endowment program as authorized under section 207. (Department of Education Appropriations Act, 1997.)

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

4
1

7
7
2 ...................

87.00

Total outlays (gross) .................................................

5

9

7

Identification code 91–0602–0–1–502

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

7
5

7
9

7
7

01.01
02.01
03.01
04.01

The Federal appropriation supports the production of free
educational materials for students below the college level who
are blind, research related to developing and improving products, and advisory services to consumer organizations on the
availability and use of materials. In 1996, the portion of the
Federal appropriation allocated to educational materials represented approximately 40 percent of the Printing House’s
total sales. The full appropriation represented approximately
34 percent of the Printing House’s total budget.

Program and Financing (in millions of dollars)
1996 actual

1997 est.

1998 est.

Obligations by program activity:
University programs .......................................................
53 ................... ...................
Pre-college programs .....................................................
24 ................... ...................
Endowment grant ...........................................................
1 ................... ...................
Consolidated Account .................................................... ...................
79
79

10.00

Total obligations (object class 41.0) ........................

78

79

79

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

78
–78

79
–79

79
–79

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

78

79

79

3
78
–79

2
79
–76

5
79
–79

2

5

5

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

NATIONAL TECHNICAL INSTITUTE FOR THE DEAF

For the National Technical Institute for the Deaf under titles I
and II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301
et seq.), $43,041,000: Provided, That from the amount available, the

OFFICE OF VOCATIONAL AND ADULT EDUCATION
Federal Funds

DEPARTMENT OF EDUCATION

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

77
2

74
2

74
5

87.00

Total outlays (gross) .................................................

79

76

79

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

78
79

79
76

79
79

This institution provides undergraduate and continuing
education programs for persons who are deaf, and graduate
programs related to deafness for students who are deaf and
students who are hearing. The University also conducts basic
and applied research and provides public service programs
for persons who are deaf and persons who work with them.
Gallaudet operates two elementary and secondary education
programs on the main campus of the University. The Kendall
Demonstration Elementary School serves students who are
deaf from infancy through age 15, and the Model Secondary
School for the Deaf serves students who are deaf of high
school age. Both schools also develop and disseminate information on effective educational techniques and strategies for
teachers and professionals working with students who are
deaf or hard of hearing.
In 1996, the Federal appropriation represented 63.6 percent
of the University’s operating budget, excluding Federal financial aid, vocational rehabilitation, and competitive grants, and
96.9 percent of the operating budgets of the related elementary and secondary schools. The University may also use appropriated funds for the Endowment Grant program.

01.01
01.02

425

Tech-prep education .............................................
Tribally controlled postsecondary vocational institutions ..........................................................
National programs:
Research ...........................................................
National Occupational Information Coordinating Committee .............................................

100

100

105

3

3

3

7

18

20

02.00
03.01

Total, annual appropriation .............................
Permanent appropriation ......................................

1,087
7

1,151
7

1,172
7

04.00

1,094

1,158

1,179

05.01
05.02
05.03
05.04
05.05

Total, vocational education ..............................
Adult education:
State programs .....................................................
Evaluation and technical assistance ...................
National Institute for Literacy ..............................
Workplace literacy partnerships ...........................
Literacy programs for prisoners ...........................

05.91

Total, adult education ..........................................

272

370

394

10.00

Total obligations ........................................................

1,366

1,528

1,573

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

53
1,347

34 ...................
1,494
1,573

01.03
01.04

4 ................... ...................

246
344
382
3
8
6
5
9
6
13 ................... ...................
5
9 ...................

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

1,400
–1,366

1,528
–1,528

1,573
–1,573

34 ................... ...................

1,340

1,487

1,566

7

7

7

70.00

OFFICE OF VOCATIONAL AND ADULT
EDUCATION

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
60.00
Appropriation .............................................................

1,347

1,494

1,573

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

Federal Funds
General and special funds:
VOCATIONAL

AND

ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the Carl
D. Perkins Vocational and Applied Technology Education Actø,¿ and
the Adult Education Actø, and the National Literacy Act of 1991¿,
ø$1,486,531,000, of which $4,500,000 shall be for the National Institute for Literacy; and¿ $1,565,966,000, of which ø$1,483,612,000¿
$1,563,047,000 shall become available on July 1, ø1997¿ 1998 and
shall remain available through September 30, ø1998¿ 1999; and of
which $6,000,000 from amounts available under the Adult Education
Act shall be for the National Institute for Literacy under section
384(c): Provided, That, of the amounts made available for title II
of the Carl D. Perkins Vocational and Applied Technology Education
Act, ø$4,500,000¿ $20,497,000 shall be used by the Secretary for
national programs under title IV, without regard to section 451: øProvided further, That, in addition, the Secretary may reserve up to
$9,000,000 under section 101(a)(1)(A) of the Carl D. Perkins Vocational and Applied Technology Education Act, without regard to section 451:¿ Provided further, That the Secretary may reserve up to
ø$5,000,000¿ $6,000,000 under section 313(d) of the Adult Education
Act for activities carried out under section 383 of that Act: Provided
further, That no funds shall be awarded to a State Council under
section 112(f) of the Carl D. Perkins Vocational and Applied Technology Education Act, and no State shall be required to operate
such a Council. (Department of Education Appropriations Act, 1997.)

1996 actual

1997 est.

1,584

1,663

Outlays (gross), detail:
Outlays from new current authority ..............................
67
Outlays from current balances ......................................
1,274
Outlays from new permanent authority ......................... ...................
Outlays from permanent balances ................................
7

179
1,410
1
8

189
1,298
1
6

87.00

Total outlays (gross) .................................................

1,348

1,598

1,494

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1,347
1,348

1,494
1,598

1,573
1,494

Summary of Budget Authority and Outlays
[In millions of dollars]

1996 actual

1997 est.

1998 est.

Enacted/requested:
Budget Authority .....................................................................
1,347
1,494
Outlays ....................................................................................
1,348
1,598
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
1,347
1,348

1,494
1,598

1,573
1,494
–7
–1
1,566
1,493

1998 est.

Budget authority for vocational and adult education includes the following amounts:

Obligations by program activity:
Vocational education:
Annual appropriations:
Basic grants:
00.01
Basic State grants ...........................................
00.02
Indian and Hawaiian natives set-aside ..........
00.03
Territorial set-aside ..........................................

956
15
2

998
30
2

1,026
16
2

00.91

973

1,030

1,044

Subtotal, basic grants .................................

1,654

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

Program and Financing (in millions of dollars)
Identification code 91–0400–0–1–501

86.90
86.93
86.97
86.98

1,639
1,654
1,584
1,366
1,528
1,573
–1,348
–1,598
–1,494
–3 ................... ...................

[In millions of dollars]

1996 actual

1. Vocational education:
a. Basic grants ..................................................................
b. Tech-prep education ......................................................
c. Tribally controlled postsecondary vocational institutions ...............................................................................

1997 est.

1998 est.

973
100

1,016
100

1,044
105

3

3

3

426

OFFICE OF VOCATIONAL AND ADULT EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

VOCATIONAL

AND

ADULT EDUCATION—Continued
1996 actual

d. National programs .........................................................
e. Permanent appropriation ...............................................
2. Adult education:
a. State programs ..............................................................
b. Evaluation and technical assistance ............................
c. National Institute for Literacy .......................................
d. Literacy programs for prisoners ....................................

247
3
5
5

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

1997 est.

5
7

13
7

1,348

1998 est.

20
0

340
382
5
6
4
6
5 ....................
1,494

1,566

Vocational and adult education.—In fiscal year 1996, the
Administration proposed to restructure Federal workforce-related education and training programs, including those under
the Carl D. Perkins Vocational and Applied Technology Education Act, the Adult Education Act, and the National Literacy Act. During the 104th Congress, both the House and
Senate passed bills that streamlined the Federal investment
in Vocational and Adult Education. However, the 104th Congress adjourned without reconciling differences between the
House and Senate bills. Absent new authorizing legislation,
Congress extended the authority of the Perkins Act, the Adult
Education Act, and the National Literacy Act through the
1997 appropriations act. The fiscal year 1998 budget estimate
reflects funding under current law; however, the Administration will propose new legislation for Vocational and Adult
Education early in the 105th Congress. Consistent with the
earlier proposals, State formula grant programs for vocational
education and for adult education would be streamlined and
consolidated. In addition, national activities for both vocational and adult education would support State efforts
through research, development, technical assistance, and evaluation.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0400–0–1–501

1997 est.

1998 est.

11.1
25.1
25.2
25.5
41.0

Personnel compensation: Full-time permanent .............
Advisory and assistance services ..................................
Other services ................................................................
Research and development contracts ...........................
Grants, subsidies, and contributions ............................

1
2
2
1
1,359

1
2
2
2
1,520

1
2
2
2
1,565

99.0
99.5

Subtotal, direct obligations ..................................
Below reporting threshold ..............................................

1,365
1

1,527
1

1,572
1

99.9

Total obligations ........................................................

1,366

1,528

1,573

Personnel Summary
1996 actual

Identification code 91–0400–0–1–501

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

VOCATIONAL

AND

1997 est.

13

10

1998 est.

10

................... ...................

–6

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ................... ...................

–1

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

–7
–1

The Smith-Hughes Act authorizes a permanent appropriation for four vocational education activities: Basic Grants,
the Indian and Hawaiian Natives set-aside, the Territorial
set-aside, and National Programs. The permanent appropriation is proposed for repeal, and an equivalent level of funding
will be included in the Administration’s proposal to reauthorize and restructure the Carl D. Perkins Vocational and Applied Technology Education Act.

OFFICE OF POSTSECONDARY EDUCATION
Federal Funds
General and special funds:
STUDENT FINANCIAL ASSISTANCE
For carrying out subparts 1ø, 3, and 4¿ and 3, of part A, part
C and part E of title IV of the Higher Education Act of 1965, as
amended, ø$7,560,407,000¿ $9,263,407,000, which shall remain available through September 30, ø1998¿ 1999.
The maximum Pell Grant for which a student shall be eligible
during award year ø1997–1998¿ 1998–1999 shall be ø$2,700¿ $3,000:
Provided, That notwithstanding section 401(g) of the Act, if the Secretary determines, prior to publication of the payment schedule for
such award year, that the amount included within this appropriation
for Pell Grant awards in such award year, and any funds available
from the fiscal year ø1996¿ 1997 appropriation for Pell Grant awards,
are insufficient to satisfy fully all such awards for which students
are eligible, as calculated under section 401(b) of the Act, the amount
paid for each such award shall be reduced by either a fixed or variable percentage, or by a fixed dollar amount, as determined in accordance with a schedule of reductions established by the Secretary for
this purpose: Provided further, That notwithstanding section
476(b)(1)(A)(iv) of the Act, the income protection allowance for independent students without dependents other than a spouse shall be
determined using the table appearing in section 477(b)(4) (or a successor table prescribed by the Secretary under section 478(b)), except
that the income protection allowance for single students shall be equal
to the amount specified in that table for a family size of two with
one family member in college, minus the amount in the table for
each additional family member. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)

ADULT EDUCATION

Identification code 91–0200–0–1–502

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 91–0400–4–1–501

1996 actual

................... ................... ...................
................... ...................
–7
................... ...................
1

1997 est.

1998 est.

–7

01.91

10.00

Total obligations (object class 41.0) ........................ ................... ...................

–7

02.01

–7
7

02.02
02.03
02.04
02.91

–7

1998 est.

4,284
2,249
450

Obligations by program activity:
Permanent appropriation ............................................... ................... ...................

New budget authority (gross), detail:
60.00 Appropriation .................................................................. ................... ...................

1997 est.

Obligations by program activity:
Pell grants:
01.01
Current academic year program ...............................
2,522
3,670
01.02
Prior academic year program ....................................
2,404
3,611
01.03
Independent Student Formula Modification .............. ................... ...................

03.01

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ...................
23.95 New obligations ............................................................. ................... ...................

1996 actual

03.01

Subtotal, Pell grants .............................................
Campus-based aid:
Supplemental educational opportunity grants
(SEOG) ...................................................................
Work-study .................................................................
Perkins loans: Federal capital contributions ............
Perkins loans: Teacher cancellations ........................

4,926

7,281

6,983

587
619
95
23

587
832
159
20

583
857
158
30

Subtotal, Campus-based activities ......................
Campus-based aid:
State Student Incentive Grants .................................

1,324

1,597

1,628

32

50 ...................

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
10.00

Total obligations (object class 41.0) ........................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.30 Unobligated balance expiring ........................................

6,282

8,928

8,611

3,561
6,258

3,617
7,560

2,249
9,263

21.40

23.90
23.95
24.40

40.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

87 ................... ...................
–8 ................... ...................
9,898
–6,282

11,177
–8,928

11,512
–8,611

3,617

2,249

2,901

6,258

7,560

9,263

72.40

3,363
2,665
3,994
6,282
8,928
8,611
–6,862
–7,599
–8,165
–31 ................... ...................
–87 ................... ...................
2,665

3,994

4,440

86.90
86.93
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

6,862

7,599

8,165

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

6,258
6,862

7,560
7,599

9,263
8,165

886
1,458
2,084
5,973
6,141
6,081
3 ................... ...................

Status of Direct Loans (in millions of dollars)
Identification code 91–0200–0–1–502

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................
1210
1251

1290

Outstanding, end of year ..........................................

1996 actual

1997 est.

1998 est.

187
–31

207
–31

223
–31

–5
56

–8
56

–8
56

207

223

240

1 Includes in all years institutional matching share of defaulted notes assigned from institutions to the Education
Department.

Federal Pell Grants.—Undergraduate students establish eligibility for these grants under award and need determination
rules set out in the authorizing statute and the annual appropriation act. The maximum award for FY 1998 would be
$3,000. The Department plans to transmit a legislative proposal later to modify the student aid need analysis provisions
of the Higher Education Act of 1965 in order to increase
the income protection allowance for single independent students and independent students without dependents other
than a spouse. With this change, the law will provide income
protection for these students at the same level as for independent students with dependents and parents of dependent
students. This change will increase the eligibility of such students for Pell Grants and other need-based student aid.
Federal Work-Study.—Federal grants are awarded by formula to qualifying institutions, which develop and provide
part-time jobs for eligible undergraduate and graduate students with demonstrated need. Federal grants in most cases
pay 75 percent of a student’s hourly earnings, with the remainder paid by the employer. Hourly earnings must not
be less than the Federal minimum wage.
The President proposes to continue the policy of annual
increases in Work-Study funding so that by FY 2000 one
million students a year will be able to work their way through

427

college under the program. FY 1998 is the second year of
this policy.
Institutions are currently required to spend at least 5 percent of their Work-Study allocation to pay students working
in community service jobs. The President has encouraged participating institutions to use at least one-half of their WorkStudy funding increases (over the FY 1996 Work-Study allocation level) for community service activities.
As part of the America Reads Challenge, the President
has also called upon Work-Study recipients to earn their
awards by working as reading tutors for kindergarten and
elementary school students. The Department recently amended its regulations to waive the required 25 percent employer
funding match for students working as reading tutors.
Federal Supplemental Educational Opportunity Grants.—
Federal funds are awarded by formula to qualifying institutions, which use these funds at their discretion to award
grants to undergraduate students, with priority for Pell Grant
recipients and others with exceptional need. The Federal
share of such grants may not exceed 75 percent of the total
grant.
Perkins Loan Program.—Schools award loans from revolving funds, composed of Federal Capital Contributions, collections on prior year loans, and Federal payments for loan
cancellations granted in exchange for specified types of teaching, military or public service.
Perkins Loans—Cancellations.—Under the Perkins Loan
(formerly national direct student loan (NDSL)) cancellation
program, institutional revolving funds are reimbursed for indebtedness cancelled as a result of a borrower engaging in
certain public service occupations.
The Higher Education Amendments of 1992 broadened statutory cancellations in the Perkins Loan program. This has
resulted in a progressive increase in the usage of cancellations
provisions by Perkins Loan borrowers in recent years.
Reauthorization of the Higher Education Act.—The Department is currently developing proposals for reauthorization of
the Higher Education Act. The Department’s proposal will
build on the accomplishments of the past four years and incorporate the following principles: (1) improve access to postsecondary education; (2) support effective education through
high standards and high student achievement; (3) simplify
program delivery and ensure accountability for taxpayer
funds; and (4) improve outreach to potential students and
linkages to employment and elementary/secondary education
programs.
Gatekeeping in Student Financial Assistance Programs.—
The Federal student aid programs will make available more
than $47 billion in grant, loan, and work-study assistance
to about 8.1 million students in the academic year 1998–
99. The Department of Education, together with States and
accrediting agencies, works to ensure that institutions of higher education participating in the Federal student aid programs meet a basic standard of quality in the education and
training of their students, and that these institutions are
administratively capable and financially responsible.
Since 1993, the Department has terminated the participation of more than 381 institutions that have violated the
Federal regulations. During 1997, it will complete its recertification of all institutions currently eligible to participate in
the student financial assistance programs.
The Department has also developed a risk analysis system
that better enables it to identify institutions with potentially
serious problems, and is currently pilot-testing the system
for nationwide implementation.
Furthermore, the Department has provided regulatory relief
to institutions that have demonstrated outstanding administration of federal programs and strong financial responsibility.
This relief will result in less frequent recertification, less fre-

428

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
STUDENT FINANCIAL ASSISTANCE—Continued

quent submission of compliance audits, and exemption from
certain regulatory requirements.
The Department helps students make better decisions by
requiring schools to provide important information about their
education programs. It enforces long-standing statutory requirements for institutions to inform prospective students of
educational programs, college costs, and financial aid.
The following tables display student aid funds available,
the number of aid awards, average awards, and the
unduplicated count of students receiving awards, based on
current law and legislation proposed for later transmittal.
The tables include aid under the Federal Family Education
Loan (FFEL) program, formerly the Guaranteed Student Loan
(GSL) program, the William D. Ford Direct Loan (DL) Program, as well as under programs in this account. The tables
include the effects of matching funds wherever applicable.
Perkins loan amounts also reflect available capital in institutional revolving funds, including loan collection and loan cancellation receipts. FFEL and DL amounts reflect the capital
actually loaned, not the Federal costs of those loans.
AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING
[In millions of dollars]

1996 actual

Pell grants ...................................................................................
Student loans:
Guaranteed student loans:
Stafford loans .....................................................................
Unsubsidized Stafford loans ..............................................
PLUS ...................................................................................
Direct student loans:
Stafford loans .....................................................................
Unsubsidized Stafford loans ..............................................
PLUS ...................................................................................
Consolidation:
FFEL ....................................................................................
Direct Loans .......................................................................

1997 est.

1998 est.

5,642

6,209

7,786

9,792
5,489
1,430

9,880
5,540
1,545

9,642
5,531
1,600

5,028
2,529
799

5,830
3,083
1,025

6,958
3,765
1,314

4,266
803

4,214
2,589

4,389
3,340

Student loans, subtotal .............................................
Work-study ...................................................................................
Supplemental educational opportunity grants ............................
Perkins loans ...............................................................................
State student incentive grants ...................................................

30,136
760
738
943
63

33,706
1,007
738
1,058
100

36,540
1,036
738
1,087
0

Total aid available ....................................................

38,282

42,818

47,186

Student loans:
Guaranteed student loans:
Stafford loans .....................................................................
Unsubsidized Stafford loans ..............................................
PLUS ...................................................................................
Direct student loans:
Stafford loans .....................................................................
Unsubsidized Stafford loans ..............................................
PLUS ...................................................................................
Consolidation:
FFEL ....................................................................................
Direct Loans .......................................................................
Work-study ...................................................................................
Supplemental educational opportunity grants ............................
Perkins loans ...............................................................................
State student incentive grants ...................................................

3,411
3,598
5,788

3,669
3,821
6,437

3,820
4,009
6,909

3,242
3,262
5,623

3,198
3,242
5,534

3,236
3,312
5,726

15,160
9,716
1,065
745
1,342
600

13,816
12,042
1,065
745
1,342
600

14,250
11,517
1,065
745
1,342
600

NUMBER OF STUDENTS AIDED
[In thousands]

1996 actual

Unduplicated student count ........................................................

7,238

1997 est.

7,607

1998 est.

8,057

The following table displays institutional administrative
costs paid from program funds.
ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[In millions of dollars]

1996 actual

Pell grants ...................................................................................
Work-study ...................................................................................
Supplemental educational opportunity grants ............................
Perkins loans ...............................................................................
Direct student loans ....................................................................

18
47
30
38
8

1997 est.

18
64
30
42
0

1998 est.

20
66
30
43
0

The following table displays the status of defaulted Perkins
loans held by the Department and by institutions.
DEFAULTED PERKINS LOANS
[In millions of dollars]

NUMBER OF AID AWARDS

Outstanding defaulted loans, beginning of year:
Assigned defaulted loans 1 .....................................................
Unassigned defaulted loans 2 .................................................
New defaulted loans ...................................................................
Collections on assigned loans ....................................................
Collections on unassigned loans ................................................
Write-offs for assigned loans .....................................................
Write-offs for unassigned loans .................................................

1996 actual

187
760
172
–31
–87
–5
–13

207
776
175
–31
–90
–8
–13

223
793
177
–31
–92
–8
–13

Outstanding defaulted loans, end of year ..................................

983

1,016

1,049

1997 est.

1998 est.

1 Permanently assigned to the Federal Government for collection. Does not include the following amounts in
loans made to institutions to establish Perkins revolving funds: $94 thousand in 1996, $94 thousand in 1997,
and $94 thousand in 1998. These amounts are recorded as outstanding loans in the ‘‘Status of Direct Loans’’
schedule.
2 Unassigned loans at institutions.

[In thousands]

1996 actual

Pell grants ...................................................................................
Student loans:
Guaranteed student loans:
Stafford loans .....................................................................
Unsubsidized Stafford loans ..............................................
PLUS ...................................................................................
Direct student loans:
Stafford loans .....................................................................
Unsubsidized Stafford loans ..............................................
PLUS ...................................................................................
Consolidation:
FFEL ....................................................................................
Direct Loans .......................................................................

1997 est.

1998 est.

3,601

3,661

4,009

2,871
1,525
247

2,693
1,450
240

2,524
1,380
232

1,551
775
142

1,823
951
185

2,150
1,137
230

281
83

305
215

308
290

Student loans, subtotal .............................................
Work-study ..............................................................................
Supplemental educational opportunity grants .......................
Perkins loans ..........................................................................
State student incentive grants ...............................................

7,476
713
991
703
105

7,862
945
991
788
167

8,250
973
991
810
0

Total awards ..............................................................

13,588

14,414

15,034

AVERAGE AID AWARDS
[In whole dollars]

1996 actual

Pell grants ...................................................................................

1,567

1997 est.

1,696

1998 est.

1,942

HIGHER EDUCATION
For carrying out, to the extent not otherwise provided, øparts A
and B of¿ title III, without regard to section 360(a)(1)(B)(ii), titles
IV, V, VI, VII, and IX, and part A and subpart 1 of part B of
title Xø, and title XI¿ of the Higher Education Act of 1965, as amended, part G of title XV of Public Law ø102–423¿ 102–325 and the
Mutual Educational and Cultural Exchange Act of 1961;
ø$879,054,000¿ $903,292,000, of which ø$15,673,000¿ $13,700,000 for
interest subsidies under title VII of the Higher Education Actø, as
amended,¿ shall remain available until expended: Provided, That
funds available for part D of title IX of the Higher Education Act
shall be available to fund noncompeting continuation awards for academic year ø1997–1998¿ 1998–1999 for fellowships awarded originally
under part øB¿ C of title IX of said Act, under the terms and conditions of part øB: Provided further, That $5,931,000 of the funds
available for part D of title IX of the Higher Education Act shall
be available to fund new and noncompeting continuation awards for
academic year 1997–1998 for fellowships awarded under part C of
title IX of said Act, under the terms and conditions of part C: Provided further, That notwithstanding sections 419D, 419E, and 419H
of the Higher Education Act, as amended, scholarships made under
title IV, part A, subpart 6 shall be prorated to maintain the same
number of new scholarships in fiscal year 1997 as in fiscal year
1996: Provided further, That $3,000,000, to remain available until
expended, shall be for the George H.W. Bush fellowship program,

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
if authorized by April 1, 1997: Provided further, That $3,000,000,
to remain available until expended, shall be for the Edmund S.
Muskie Foundation to establish an endowment fund to provide income to support such foundation on a continuing basis, if authorized
by April 1, 1997: Provided further, That $3,000,000, to remain available until expended, shall be for the Claiborne Pell Institute for
International Relations and Public Policy at Salve Regina University
in Newport, Rhode Island, if authorized by April 1, 1997: Provided
further, That $1,000,000, to remain available until expended, shall
be for the Calvin Coolidge Memorial Foundation, if authorized by
April 1, 1997: Provided further, That, of the amounts made available
under title X, part A of the Higher Education Act, $2,000,000 shall
be awarded to the Pennsylvania Educational Telecommunications Exchange Network.¿ C: Provided further, That funds available for part
C of title III of the Higher Education Act shall be available only
for awards to recipients that are title III, part B institutions, as
defined in section 322(2) of said Act. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0201–0–1–502

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Aid for institutional development:
00.01
Strengthening historically Black colleges and universities .................................................................
00.02
Strengthening institutions .........................................
00.03
Strengthening Hispanic serving institutions ............
00.04
Endowment challenge grants ....................................

129
55
11
7

129
55
11
8

133
55
12
2

00.91

202

203

202

01.01
01.02
01.03
01.91
02.01
02.02
02.03
02.04

Subtotal, aid for institutional development .........
Other aid for institutions:
Program development ................................................
Interest subsidy grants .............................................
Special grants ...........................................................

93
17
8

94
87
20
14
8 ...................

Subtotal, other aid for institutions ......................
118
122
Aid for students:
Federal TRIO programs ..............................................
463
500
Advanced placement fees ......................................... ................... ...................
Scholarships ..............................................................
32
33
Graduate fellowships .................................................
31
33

101
525
6
39
30

02.91

Subtotal, aid for students ....................................

526

566

600

10.00

Total obligations ........................................................

846

891

903

20
837

12 ...................
879
903

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.30 Unobligated balance expiring ........................................
21.40

23.90
23.95
24.40

40.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

2 ................... ...................
–2 ................... ...................
857
–846

891
–891

903
–903

12 ................... ...................

837

879

903

72.40

974
942
953
846
891
903
–846
–880
–881
–29 ................... ...................
–2 ................... ...................
942

953

975

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

76
770

123
757

119
762

87.00

Total outlays (gross) .................................................

846

880

881

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

837
847

879
880

903
881

429

Summary of Budget Authority and Outlays
[In millions of dollars]

1996 actual
1997 est.
Enacted/requested:
Budget Authority .....................................................................
837
879
Outlays ....................................................................................
846
880
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

837
846

879
880

1998 est.

903
881
132
16
1,035
897

Aid for institutional development.—
Strengthening historically Black colleges and universities.—Funds support grants to help historically Black undergraduate and graduate institutions equalize educational
opportunity and strengthen their management and fiscal
operations so that they may eventually become self-sufficient.
Strengthening institutions.—Funds support planning and
development grants for improving academic programs and
financial management at schools that enroll high proportions of disadvantaged students and have low per-student
expenditures.
Strengthening Hispanic-serving institutions.—Funds support Hispanic-serving institutions to enable them to improve and expand their capacity to serve Hispanic and lowincome students.
Endowment challenge grants.—Funds support endowment
challenge grants for historically Black colleges and universities to enable such institutions to establish or increase
institutional endowment funds.
Other aid for institutions.—
Program development.—Funds support: the Fund for the
Improvement of Postsecondary Education (FIPSE), to address problems and encourage improvements in postsecondary education; the minority science improvement program,
to improve science education at predominantly minority institutions; international education and foreign language
study programs, to help strengthen American education in
foreign languages and area and international studies and
to provide research and study opportunities in foreign countries for American graduate students, faculty members, and
teachers of foreign languages; and minority teacher recruitment, to encourage minorities to enter teaching careers.
Interest subsidy grants.—Funds meet mandatory interest
subsidy costs of construction loan commitments made prior
to 1974.
Aid for students.—
Federal TRIO programs.—Funds support: academic, counseling and outreach services to help individuals from disadvantaged backgrounds enter and complete college; the
student support services program to assist postsecondary
students from disadvantaged backgrounds who need academic support to complete successfully their education; the
McNair postbaccalaureate program, to provide support to
disadvantaged groups underrepresented in graduate education; and staff training, to provide training opportunities
for staff employed in or preparing for employment in TRIO
programs. Funds also support the continuation of an evaluation of the TRIO programs.
Advanced placement fees.—Funds support State efforts to
pay for the Advanced Placement test fees of low-income
students to help students obtain college credit for high
school courses.
Scholarships.—Funds support: Byrd honors scholarships
for outstanding students who show promise of continued
excellence.
Graduate fellowships.—Funds support graduate assistance to provide fellowships to financially needy graduate
students who are studying in areas of national need, and

430

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
00.04
00.05
00.06

General and special funds—Continued
HIGHER EDUCATION—Continued

to students of superior ability completing graduate-level
education.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0201–0–1–502

25.1
25.3

10.00

Howard University Hospital ............................................
29
29
29
Construction ...................................................................
1 ................... ...................
Undistributed ................................................................. ...................
167
167
Total obligations (object class 41.0) ........................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

187

196

196

21.40

1997 est.

1998 est.

1

1

1

25.7
41.0
99.5

Advisory and assistance services ..................................
Purchases of goods and services from Government
accounts ....................................................................
Operation and maintenance of equipment ...................
Grants, subsidies, and contributions ............................
Below reporting threshold ..............................................

1
1
842
1

1
1
887
1

1
1
899
1

99.9

Total obligations ........................................................

846

891

903

23.90
23.95
24.40

40.00

HIGHER EDUCATION
(Proposed for later transmittal, not subject to PAYGO)

4 ................... ...................
182
196
196
1 ................... ...................

Total budgetary resources available for obligation
187
196
196
New obligations .............................................................
–187
–196
–196
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ................... ...................
New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

182

196

196

72.40

Program and Financing (in millions of dollars)
1996 actual

Identification code 91–0201–2–1–502

1997 est.

1998 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................

132

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ...................
23.95 New obligations ............................................................. ................... ...................

132
–132

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

132

10.00

40.00

73.10
73.20
74.40

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

132
–16
116

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

16

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

132
16

Presidential Honors Scholarships.—The President is proposing a new program to reward the best and brightest of our
nation’s high school students. The program would provide
$1,000 merit-based scholarship awards to the top 5 percent
of graduating students from every secondary school in the
country. Awards would be used by students to offset the cost
of attending any postsecondary education institution. This
program would encourage and reward individual academic
excellence and achievement in high school, and promote college attendance by graduating seniors.

14
9
13
187
196
196
–194
–192
–196
3 ................... ...................
–1 ................... ...................
9

13

13

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

179
15

184
8

184
12

87.00

Total outlays (gross) .................................................

194

192

196

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

182
194

196
192

196
196

Howard University is a private, nonprofit educational institution consisting of 16 schools and colleges. Federal funds
are used to provide partial support for university programs
as well as for the teaching hospital facilities. In 1996, direct
Federal appropriations for the academic and research programs represented 65 percent of the university’s educational
and general expenditures.
Credit accounts:
FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT
Program and Financing (in millions of dollars)
Identification code 91–0243–0–1–502

1996 actual

1997 est.

1998 est.

Identification code 91–0603–0–1–502

Obligations by program activity:
00.01 Academic program .........................................................
00.02 Endowment program ......................................................
00.03 Research ........................................................................

1996 actual

1997 est.

1998 est.

152 ................... ...................
4 ................... ...................
1 ................... ...................

240
435

413
491

645
750

Total obligations ........................................................

675

904

1,395

22.00
22.40

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Capital transfer to general fund ...................................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

675
–675

904
–904

1,395
–1,395

60.00
60.05

Program and Financing (in millions of dollars)

Subtotal, subsidy cost ...............................................
Student loan administrative expenses ..........................

10.00

HOWARD UNIVERSITY

Obligations by program activity:
Direct loan subsidy ........................................................
Reestimates of subsidy .................................................

02.91
07.09

For partial support of Howard University (20 U.S.C. 121 et seq.),
$196,000,000ø: Provided, That from the amount available, the University may at its discretion use funds for the endowment program
as authorized under¿, of which not less than $3,530,000, of which
$3,530,000 shall remain available until expended, shall be for a
matching endowment grant pursuant to the Howard University Endowment Act (Public Law 98–480). (Department of Education Appropriations Act, 1997.)

02.01
02.02

New budget authority (gross), detail:
Appropriation ..................................................................
Appropriation (indefinite) ...............................................

436
244

491
109

750
645

Appropriation (total) ..................................................
680
Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ...................

600

1,395

63.00
68.00
70.00

Total new budget authority (gross) ..........................

237
413
645
3 ................... ...................

680
904
1,395
–5 ................... ...................

680

304 ...................
904

1,395

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

465
220
408
675
904
1,395
–595
–716
–1,126
–326 ................... ...................
220

408

677

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

472
123

549
167

813
313

87.00

Total outlays (gross) .................................................

595

716

1,126

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

680
595

–304 ...................

600
412

1,395
1,126

Summary of Budget Authority and Outlays
[In millions of dollars]

1996 actual
1997 est.
Enacted/requested:
Budget Authority .....................................................................
680
600
Outlays ....................................................................................
595
412
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

680
595

600
412

1998 est.

1,395
1,126
–112
–56
1,283
1,070

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 91–0243–0–1–502

Direct loan levels supportable by subsidy budget authority:
1150 Stafford ..........................................................................
1150 Unsubsidized Stafford ....................................................
1150 PLUS ...............................................................................
1150 Consolidated ..................................................................
1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Stafford ..........................................................................
1320 Unsubsidized Stafford ....................................................
1320 PLUS ...............................................................................
1320 Consolidated ..................................................................
1329

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Stafford ..........................................................................
1330 Unsubsidized Stafford ....................................................
1330 PLUS ...............................................................................
1330 Consolidated ..................................................................
1330 Downward reestimate ....................................................
1339

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Stafford ..........................................................................
1340 Unsubsidized Stafford ....................................................
1340 PLUS ...............................................................................
1340 Consolidated ..................................................................
1340 Downward reestimate ....................................................

1996 actual

1997 est.

1998 est.

5,587
2,869
972
869

6,427
3,475
1,265
2,622

7,671
4,246
1,626
3,386

10,297

13,789

16,929

12.51
–12.97
–8.09
–0.83

13.39
–9.77
–6.62
–0.94

13.65
–6.93
–6.34
–0.14

2.34

2.99

3.81

699
–372
–79
–7
3

860
1,047
–339
–294
–84
–103
–25
–5
–304 ...................

244
570
–313
–45
–15
3

108

645

661
881
–274
–276
–60
–76
–24
–5
–304 ...................

1349

Total subsidy outlays ................................................

200

–1

524

3510
3590

Student loan administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

436
395

491
413

750
602

The Federal Government operates two major student loan
programs: the Federal Family Education Loan (FFEL) program—formerly the Guaranteed Student Loan (GSL) program—and the William D. Ford Federal Direct Loan (Direct
Loan) program. The President is committed to allowing individual institutions to choose which of these two programs
best meets their needs and the needs of their students.

431

This summary section outlines the structure of these two
programs, highlights their differences and similarities, and
provides text tables displaying program cost data; loan volume, subsidy, default, and interest rates; and other descriptive information. As part of his fiscal year 1998 budget, the
President is proposing a number of changes for the Direct
Loan and FFEL programs. These changes are discussed as
part of this program description.
From its inception in 1965 through 1996, the FFEL program has provided over $217 billion in loans to postsecondary
students and their parents. Since beginning on July 1, 1994,
the Direct Loan program has provided over $15 billion in
loans to students and parents. Taken together, the FFEL
and Direct Loan programs will make over $32 billion available in FY 1997. Because funding for these two programs
is provided on a permanent indefinite basis, for budget purposes they are considered separately from other Federal student financial assistance programs. The FFEL and Direct
Loan programs should be viewed in combination with these
other programs, however, and with Perkins Loans in particular, as part of the overall Federal effort to ensure access
to higher education.
Loan capital in the FFEL program is provided by private
lenders. State and private nonprofit guaranty agencies act
as agents of the Federal government, providing a variety of
services including payment of default claims, collection of
some defaulted loans, default avoidance activities, and counseling to schools and students. These agencies also provide
various other services to lenders. The Government provides
substantial payments to these guaranty agencies. The Government also pays interest subsidies to lenders for certain borrowers, as well as most costs associated with loan defaults
and other write-offs.
The Direct Loan program was created by the Student Loan
Reform Act (SLRA) of 1993. Under this program, the Federal
Government provides loan funds to postsecondary institutions
directly or through an alternative originator. Direct Loans
offer a streamlined system that is simpler for student and
parent borrowers, less prone to waste and abuse, and less
expensive for the Federal taxpayer than the FFEL program.
The program also offers flexible repayment options that allow
borrowers to consider lower-paying careers, such as public
service, without fear of default.
The Direct Loan program began operation in academic year
1994–1995 with 7 percent of overall loan volume. The program grew to 32 percent of overall volume in academic year
1995–1996, and is expected to account for 36 percent in academic year 1996–1997. All eligible institutions are free to
participate in either the Direct Loan or FFEL program.
The Direct Loan and FFEL programs share many basic
elements. Each program offers four types of loans: Stafford,
Unsubsidized Stafford, PLUS for parents, and Consolidation.
Evidence of financial need is required for a student to receive
a subsidized Stafford loan. The other three loan programs
are available to borrowers at all income levels. Loans can
be used only to meet qualified educational expenses.
For new Stafford Loans, the interest rate equals the 91day Treasury bill rate plus 2.5 percent during in-school, grace,
and deferment periods, and the 91-day Treasury bill plus
3.1 percent at all other times, with a cap of 8.25 percent.
These rates are adjusted annually. Interest payments for
these loans are fully subsidized by the Government while
a student is in school and during grace and deferment periods. Unsubsidized Stafford loans carry the same interest rate
as Stafford loans, but have no interest subsidy. For PLUS
loans, the interest rate equals the 52-week Treasury bill rate
plus 3.1 percent, with a cap of 9 percent and no interest
subsidy.
Beginning July 1, 1998, the interest rate for new Stafford
and Unsubsidized Stafford loans will equal the Department’s

432

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

Credit accounts—Continued
FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued

borrowing rate—currently the 10–20-year bond rate—plus 1
percentage point, with a cap of 8.25 percent. This rate, adjusted annually, will apply throughout the life of the loan.
In order to standardize interest subsidy payments across the
FFEL and Direct Loan programs and reduce interest paid
by students on unsubsidized loans, the President is proposing
that, beginning on October 1, 1998, the interest subsidy rate
for new Stafford and interest rate for new Unsubsidized Stafford loans equal the Department’s borrowing rate during inschool, grace, and deferment periods.
Consolidation loans allow borrowers to combine loans made
under Title IV of the Higher Education Act—FFEL, Direct
Loans, and Perkins Loans—as well as some loans made under
the Public Health Service Act. Under FFEL, the interest rate
for loans made on or after July 1, 1994, equals the weighted
average of the interest rate on the loans consolidated, rounded
upward to the nearest whole percent. Lenders may choose
to offer a lower rate.
Direct Consolidation loans made up of underlying Stafford
and Unsubsidized Stafford loans carry the variable Stafford
interest rate; Direct Consolidation loan made up of underlying
PLUS loans carry the variable PLUS interest rate. The President is proposing that interest rates for new FFEL Consolidation loans be calculated in the same way as is currently
done for Direct Consolidation loans. The President is also
proposing to allow borrowers whose FFEL Consolidation
Loans include underlying Stafford Loans to maintain interest
subsidy benefits associated with the Stafford portions of their
loans. Direct Consolidation Loan borrowers already retain
these benefits.
Origination/insurance fees for each loan type are essentially
the same across the two programs. Direct Loan borrowers
are charged an origination fee equal to 4 percent of principal,
which partially offsets Federal program operation costs. FFEL
borrowers pay an origination fee to the Government equal
to 3 percent of principal, and are also liable for a guaranty
agency insurance premium of up to 1 percent of principal.
Guaranty agencies have the option of waiving this premium. In addition, FFEL lenders have the option of paying
some or all of a borrower’s original fee for Stafford Loan
borrowers. The President is proposing to eliminate the 1 percent guaranty agency insurance premium, reduce the Direct
Loan origination fee from 4 percent to 3 percent, and further
reduce fees for Stafford borrowers in both programs to 2 percent. The President is also proposing that FFEL lenders be
required to offer any benefits involving the partial or complete
payment of borrower origination fees to all eligible borrowers.
Loan limits are also identical across the two programs.
The President has proposed a $15,000 annual limit on borrowing for an individual student under the PLUS loan program.
(There is currently no limit on borrowing under this program.)
In addition to these common elements, the Direct Loan
and FFEL programs each have a number of unique provisions.
Borrowers under Direct Loans may choose from among five
repayment plans including income-contingent repayment
(‘‘pay-as-you-can’’), under which annual repayment amounts
vary based on the income of the borrower and the amount
borrowed and payments can be made over 25 years. Borrowers may switch between repayment plans at any time. (Income-contingent repayment is not available to Direct PLUS
borrowers).
The President is proposing to require FFEL lenders to offer
four of these plans—standard, graduated, extended, and alternative—under the same terms and conditions available under
Direct Loans. The President has determined that income-contingent repayment as offered through Direct Loans—under

THE BUDGET FOR FISCAL YEAR 1998

which the Department has access to income data provided
by the Internal Revenue Service—would not be feasible for
private lenders to administer. In addition, the President is
proposing to clarify current law that loan amounts forgiven
after 25 years under the income-contingent repayment plan
are not treated as income for tax purposes.
In the FFEL program, lenders may receive a quarterly interest subsidy, called a special allowance, from the Government to ensure a guaranteed rate of return on their loans.
Special allowance payments vary by loan type, are determined
quarterly, and are based on current borrower interest rates
and market-yield formulas. For recent Stafford and
Unsubsidized Stafford loans, for example, the Federal Government must pay lenders a special allowance if the average
91-day Treasury bill rate for a given quarter plus 3.1 percent—or 2.5 percent during in-school, grace, or deferment periods—is higher than the current interest rate charged borrowers.
The President is proposing to reset the interest rate for
special allowance payments on new loans on an annual basis,
as is done with borrower interest rates, rather than quarterly
as is done under current law.
The President is proposing a number of changes to address
serious structural problems with the FFEL default prevention
system. Under the current system, lenders are insured by
the government against default loss on 98 percent of the
principle and accrued interest on all FFEL loans. The President proposes increasing this 2-percent risk-sharing to 5 percent. Supplemental pre-claims assistance payments to guaranty agencies, which have proven ineffective in achieving
their intended goal of enhancing agency default prevention
activities, would be eliminated. As a more effective means
of accomplishing this goal, the President is proposing that
lenders make payments to guaranty agencies only on delinquent loans that have been brought current as a result of
guaranty agency efforts.
Guaranty agencies currently retain 27 percent of all collections on defaulted loans, a portion of which covers agency
collection costs. In order to standardize payments for default
collection activities across the student loan programs, the
President is proposing to reduce guaranty agency default retention to 18.5 percent of the amount collected, the amount
paid on loans collected by the Department of Education.
The President is proposing a number of changes in the
guaranty agency system. The U.S. General Accounting Office
and Federal courts have acknowledged that the Federal government is the actual guarantor of the loans. The State and
non-profit intermediaries in the FFEL program act as agents
of the Federal government; there are no non-Federal funds
at risk. Guaranty agencies are not independent guarantors,
but are in fact administrators of the Federal guarantee. The
Administration proposes to end a system in which the guaranty agencies hold Federal funds from which they pay default
claims. Instead, direct Federal payments will cover default
claims. Guaranty agencies therefore no longer need to hold
Federal funds in reserve, making possible the return of $2.5
billion in reserve funds over five years. In addition, the President is proposing to periodically recertify guaranty agency
agreements, which will be revised to include specific, publicly
released performance indicators. Among other things, these
revised agreements will require that agencies be audited annually using a methodology that samples loans held in agency
systems, and that guaranty agencies submit timely, accurate,
and consistent data to the Department, including data for
the National Student Loan Data System. The Secretary of
Education will have the authority to terminate agreements
based on agency performance, and to award contracts for
services currently performed by guaranty agencies.
In order to ensure the uninterrupted availability of aid
funds for students and parents, Congress provided permanent

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

funding to support student aid administration and expenses.
These funds support Department personnel and contractors
for Direct Loan origination and servicing, payments to guaranty agencies, as well as certain costs associated with activities common to Direct Loans, FFEL and other student assistance programs, such as application printing and processing.
The President believes that the current services level of this
permanent appropriation could be reduced. Discretionary
funds requested for the FFEL program support additional
Department personnel and administrative activities associated with operating the program.
Performance indicators are being developed on a broad spectrum of policy objectives in both the Direct Loan and FFEL
programs. These indicators will measure program efficiency,
Federal costs, and financial management, as well as borrower
and institutional satisfaction.
The following tables display performance indicators and
program data; including projected overall Direct Loan and
FFEL costs; loan volume, number of loans, and average loan
amount; descriptive data, and program activity under the
President’s budget and legislative request.

Summary of Loans Available (net commitments in millions of dollars) 1
1996 actual

FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

1996 actual

Budget Authority:
FFEL:
Liquidating 1 ............................................................................
Program 2 ................................................................................
Reestimate of Prior Year Cost 2 ..............................................

1997 est.

1998 est.

1,152,916
(14,544)
(493,553)
2,937,780 2,631,163 2,068,274
595,000 (2,530,592) ...................

9,642
5,531
1,600

Total, FFEL .....................................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

16,711

16,965

16,774

5,028
2,529
799

5,830
3,083
1,025

6,958
3,765
1,314

Total, Direct Loans .............................................................
Consolidation Loans:
FFEL .........................................................................................
Direct Loans ............................................................................

8,357

9,938

12,037

4,266
803

4,214
2,589

4,389
3,340

Subtotal, Consolidation Loans ...........................................
Total, All Loans ..................................................................

5,069
30,137

6,803
33,706

7,729
36,540

1 Net

commitments equal gross commitments minus loan cancellations.

Number of Loans (In thousands)

FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

2,524
1,380
232

Total, FFEL ..........................................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

4,643

4,383

4,136

1,551
775
142

1,823
951
185

2,150
1,137
230

Total, Direct Loans .............................................................
Consolidation Loans:
FFEL .........................................................................................
Direct Loans ............................................................................

2,468

2,959

3,516

281
83

305
215

308
290

Subtotal, Consolidation Loans ...........................................
Total, All Loans ..................................................................

364
7,476

520
7,862

598
8,250

250,928

133,685

756,105

13,305
(7,208)

29,950
(24,692)

9,667
(4,760)

Subtotal, Consolidation Loans ...........................................
Administration:
FFEL 3 ......................................................................................
Student Aid 4 ...........................................................................

6,097

5,258

4,907

29,977
435,652

46,482
491,000

47,688
532,000

465,629
5,408,350

537,482
762,452

579,688
2,915,421

FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

615,609
7,266
(413,615)
2,398,610 2,483,035 2,078,153
595,000 (2,530,592) ...................

Weighted Average, FFEL .................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

Subtotal, Administration ....................................................
Total, FFEL and Direct Loans .................................................
Outlays:
FFEL:
Liquidating 1 ............................................................................
Program 2 ................................................................................
Reestimate of Prior Year Costs 2 ............................................

437,338
756,105
(303,653) ...................

Subtotal, FFEL 2 ..................................................................
Direct Loans:
Program 2 ................................................................................
Reestimate of Prior Year Costs 2 ............................................

3,609,219

Subtotal, Direct Loans 2 .....................................................
Consolidation Loans:
FFEL .........................................................................................
Direct Loans ............................................................................

214,863

23,286

586,154

13,207
(14,771)

29,613
(23,839)

9,560
(4,696)

212,165
2,698

(40,291)

1,664,538

326,939
586,154
(303,653) ...................

Subtotal, Consolidation Loans ...........................................
Administration:
FFEL 3 ......................................................................................
Student Aid 4 ...........................................................................

(1,564)

5,774

4,864

41,530
394,669

41,264
413,650

45,812
489,096

Subtotal, Administration ....................................................
Total, FFEL and Direct Loans .................................................

436,199
4,258,717

454,922
443,691

534,908
2,790,464

1 Liquidating account reflects loans made prior to 1992. FY 1997 and 1998 estimates reflect net transfers
to the general account.
2 Because these figures do not include totals for consolidation loans, they do not correspond with totals shown
in account-specific schedules.
3 Reflects
4 Supports

1998 est.

2,693
1,450
240

Subtotal, Direct Loans 2 .....................................................
Consolidation Loans:
FFEL .........................................................................................
Direct Loans ............................................................................

248,230
2,698

1997 est.

2,871
1,525
247

4,685,696

1,574,721

1998 est.

9,880
5,540
1,545

Subtotal, FFEL 2 ..................................................................
Direct Loans:
Program 2 ................................................................................
Reestimate of Prior Year Cost 2 ..............................................

86,027

1997 est.

9,792
5,489
1,430

1996 actual

Funding Levels (In thousands of dollars)

433

Average Loan Size (in whole dollars)
1996 actual

1997 est.

1998 est.

3,411
3,598
5,788

3,669
3,821
6,437

3,820
4,009
6,909

3,599

3,871

4,056

3,242
3,262
5,823

3,198
3,242
5,534

3,236
3,312
5,726

Weighted Average, Direct Loans ....................................
Consolidation Loans:
FFEL .........................................................................................
Direct Loans ............................................................................

3,388

3,359

3,423

15,180
9,716

13,816
12,042

14,250
11,517

Subtotal, Consolidation Loans ...........................................
Weighted Average, All Loans .........................................

13,923
4,031

13,083
4,287

12,925
4,429

Composition of Consolidation Loans
1996 actual

Net commitments (in millions of dollars):
FFEL:
Standard consolidations .........................................................
Consolidations from Default ...................................................

1997 est.

1998 est.

3,815
451

3,784
430

3,940
449

Subtotal, FFEL ................................................................
Direct Loans:
Standard consolidations .........................................................
Consolidations from Default ...................................................

4,266

4,214

4,389

513
290

2,270
319

2,989
351

Subtotal, Direct Loans ...................................................
Total:
Standard consolidations .........................................................

803

2,589

3,340

4,328

6,054

6,929

annual discretionary appropriation.

administrative expense allowance payments to FFEL guaranty agencies, as well as a range of administrative activities, such as application printing, mailing, and processing, that are common to all Federal student
financial assistance programs.

434

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
Internal Revenue Service Tax Refund Offsets ........................ ................... ................... ...................

Credit accounts—Continued
FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued
Composition of Consolidation Loans—Continued
1996 actual

Total, Direct Loans 2 ......................................................

1997 est.

1998 est.

741

749

806

Total, Consolidated Loans .............................................

5,069

6,803

7,729

1997 est.

1998 est.

19.55
7.56
3.83

19.38
7.47
3.70

15.10
6.63
3.32

14.22

14.01

11.15

14.25
–8.98
–6.53

13.39
–9.77
–6.62

14.65
–6.43
–5.84

5.00

3.92

5.58

0.78
0.27

0.70
–0.94

0.22
–0.14

0.70

0.08

0.06

18.00
17.55
9.56

17.70
17.22
9.28

17.67
17.19
9.16

Weighted Average, FFEL .....................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

17.13

16.78

16.70

17.22
16.76
8.51

17.46
17.06
8.69

17.32
17.02
8.68

Weighted Average, Direct Loans ........................................
Consolidation Loans:
FFEL .........................................................................................
Direct Loans ............................................................................

16.25

16.43

16.28

10.50
10.50

10.50
10.50

10.50
10.50

Weighted Average, FFEL .....................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Weighted Average, Direct Loans ........................................
Consolidation Loans:
FFEL .........................................................................................
Direct Loans ............................................................................
Weighted Average, Consolidation Loans ............................
Default Rates (in percent) 2 ......................................................
FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

Weighted Average, Consolidation Loans ............................
10.50
10.50
10.50
Borrower Interest Rates (in percent) .......................................
FFEL:
8.25
8.21
7.11
Stafford3 ..................................................................................
8.25
8.21
7.11
Unsubsidized Stafford3 ...........................................................
3 ......................................................................................
8.60
8.62
8.21
PLUS
Direct Loans
3 ..................................................................................
8.25
8.21
7.11
Stafford
8.25
8.21
7.11
Unsubsidized Stafford3 ...........................................................
3 ......................................................................................
8.60
8.62
8.21
PLUS
Consolidation Loans:
4 ....................................................................................... ................... ................... ...................
FFEL
Direct Loans 4 ......................................................................... ................... ................... ...................
Federal Borrowing Rate for Direct Loans (in percent) ...........
6.64
6.35
6.11
1 Subsidy rates represent the Federal portion of non-administrative costs—principally interest subsidies and defaults—associated with each borrowed dollar. For example, a $1,000 loan with Federal subsidy costs of $100
would have a subsidy rate of 10 percent.
2 Default rates displayed in this table, which reflect projected defaults over the life of a loan cohort, are
used in developing program cost estimates. The Department uses other rates based on defaults occurring in
the first two years of repayment to determine institutional eligibility to participate in Federal loan programs.
These three-year rates tend to be lower than those included in this table.
3 Rates shown for FY 1998 are those in effect beginning July 1, 1998.
4 Under current law, interest rates under the FFEL Consolidation Loan program reflect a weighted average of
the rates of the loans consolidated, rounded upward to the nearest whole percentage. For the Direct Loan Consolidation
program, loans consolidated from the Stafford and Unsubsidized Stafford Loan program are charged the Stafford
Loan interest rate. Loans consolidated from the PLUS Loan program are charged the PLUS interest rate.

Composition of Default Collections (In thousands of dollars)
1996 actual

7,292

1 These figures show total collections by guaranty agencies. Actual Federal revenues resulting from these collections
are lower than the amount shown because agencies retain 27 percent of the amount collected.
2 These figures include collections on Consolidations Loans, which have very low default rates. For FY 1996,
Consolidation Loan-related collections totaled $26,555,135 for FFEL and $4,437 for Direct Loans.

Projected Participation in Repayment Plans 1 (in thousands of dollars)

Summary of Subsidy Rates, Default Rates, Interest Rates, and Discount Rates
1996 actual

2,190

Total, FFEL and Direct Loans ...................................................... (2,614,008) (2,077,009) (2,174,122)

Consolidations from Default ...................................................

Subsidy Rates (in percent) 1
FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................

28

1997 est.

1998 est.

FFEL:
Collections by Guaranty Agencies 1 ........................................ (1,291,999) (1,027,653) (1,078,173)
Collections by Department of Education ................................
(808,253)
(642,883)
(674,487)
Internal Revenue Service Tax Refund Offsets ........................
(513,785)
(408,663)
(428,753)
Total, FFEL2 .................................................................... (2,614,036) (2,079,199) (2,181,414)
Direct Loans:
Collections by Department of Education ................................
28
2,190
7,292

1996 cohort

FFEL:1
Standard:
Percent of Loan Volume:2
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Subsidy Rate (in percent):3
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Graduated:3
Percent of Loan Volume:2
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Subsidy Rate (in percent):3
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Extended:3
Percent of Loan Volume:2
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Subsidy Rate (in percent):3
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Direct Loan:3
Standard:
Percent of Loan Volume:2
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Subsidy Rate (in percent):3
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consilidation .........................................................
Graduated:3
Percent of Loan Volume:2
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Subsidy Rate (in percent):3
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Extended:3
Percent of Loan Volume:3
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Subsidy Rate (in percent):3
Stafford .................................................................
Unsubsidized Stafford ...........................................
PLUS ......................................................................
Consolidation ........................................................
Income-Contingent:
Percent of Loan Volume:2
Stafford .................................................................
Unsubsidized Stafford ...........................................
Consolidation ........................................................
Subsidy Rate (in percent):3
Stafford .................................................................

1997 cohort

1998 cohort

100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00

64.88
64.88
80.68
69.59

19.55
7.56
3.83
0.78

19.38
7.47
3.70
0.70

15.33
7.04
3.54
0.30

...................
...................
...................
...................

...................
...................
...................
...................

28.73
28.73
14.00
17.38

...................
...................
...................
...................

...................
...................
...................
...................

14.66
5.85
2.38
0.04

...................
...................
...................
...................

...................
...................
...................
...................

6.39
6.39
5.32
13.03

...................
...................
...................
...................

...................
...................
...................
...................

14.70
6.01
2.41
0.06

57.79
57.79
80.68
18.62

57.79
57.79
80.68
18.62

57.79
57.79
80.68
18.62

15.37
–9.45
–5.79
2.10

14.92
–9.90
–5.77
1.79

16.30
–6.32
–4.97
4.57

28.73
28.73
14.00
17.38

28.73
28.73
14.00
17.38

28.73
28.73
14.00
17.38

13.12
–12.21
–9.92
–0.35

11.86
–13.22
–10.52
–1.09

13.47
–9.20
–9.79
2.99

6.39
6.39
5.32
13.03

6.39
6.39
5.32
13.03

6.39
6.39
5.32
13.03

13.57
–11.54
–8.86
0.33

12.41
–12.40
–9.30
–0.28

14.03
–8.55
–8.55
3.31

7.09
7.09
50.97

7.09
7.09
50.97

7.09
7.09
50.97

10.26

7.96

6.62

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Unsubsidized Stafford ...........................................
Consolidation ........................................................

10.18
–0.21

7.71
–2.06

5.80
–3.81

1 No data is included for the Alternative repayment plan under either FFEL or Direct Loans. Borrowers are
not expected to participate in this plan due to the flexibility available under the other options. For FFEL, no
data is included for income-sensitive repayment. This option, which has been available for a number of years,
has never made up more than a tiny portion of overall loan volume. For Direct Loans, income-contingent repayment
is not available for PLUS borrowers.
2 Percent of Loan Volume represents aggregate data. Individual borrowers may move between plans over time.
3 Maximum terms under the Extended and Graduated repayment plans reflect the following ‘‘classes’’ based
on borrowers debt levels.
Maximum
Percent of
Debt Level
Term (in
Volume
years)
Within
Affected
Plans
Below $10,000 ........................................
12
57.57
$10,000–$20,000 ...................................
15
24.28
$20,000–$40,000 ...................................
20
14.56
$40,000–$60,000 ...................................
25
2.22
Above $60,000 ........................................
30
1.37

Subsidy costs for the FFEL and Direct Loan programs are
estimated in accordance with procedures set out in the Credit
Reform Act of 1990. Subsidy costs for each loan type are
estimated separately and, because costs can vary widely within a program depending on the characteristics of the individual borrower, cost estimates are aggregated from data for
homogeneous groups within risk categories.
Risk categories for Stafford and Unsubsidized Stafford
Loans are based on the type of school attended by the borrower. Since PLUS loan borrowers are all parents, they are
assumed to share similar risk profiles and are grouped together in a single category. For Consolidation Loans, risk
categories distinguish between standard Consolidation
Loans—in which borrowers in repayment consolidate a number of outstanding loans—and loans consolidated out of default.
Default rates are a major cause of differences in subsidy
between risk categories. The default rates in the following
tables reflect estimates of the percent of borrowers who will
default over the lifetime of the loans. These estimates are
revised annually based on an analysis of default trends prepared each year by an independent auditor. Within each risk
group, it is assumed that borrowers choosing similar repayment plans will have similar default rates, regardless of
whether they borrow under the FFEL or Direct Loan program.
The risk group data below also reflect proposed policy
changes and interest rate projections in the President’s 1998
Budget. These factors substantially decrease subsidy rates
across years in the FFEL program. Subsidy rates in the Direct Loan program increase over the same period, primarily
due to proposals to reduce borrower origination fees.
FFEL RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................
Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

25.68
16.17
22.9
21.25
16.9

1997 est.

25.25
15.77
22.51
21.01
16.53

1998 est.

20.39
13.08
20.36
20.12
12.94

Gross Default Rates (in percent)

21.49
15.23
31.18
37.75
10.37

1997 est.

21.14
15.24
31.11
37.72
10.38

1998 est.

21.1
15.35
31.12
37.67
10.39

UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................

18.59
2.86

18.5
2.8

18.3
2.81

Gross Default Rates (in percent)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................
Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

1997 est.

21.87
15.37
30.96
37.5
10.31

21.41
15.36
30.85
37.48
10.29

1998 est.

21.44
15.47
30.87
37.45
10.31

PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)

1996 actual

All PLUS Loans ........................................................................

1997 est.

1998 est.

3.83

3.7

3.32

9.56

9.28

9.16

Gross Default Rates (in percent)

All PLUS Loans ........................................................................

DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................
Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

20.51
11.33
18.91
18.24
11.63

1997 est.

19.27
10.33
18.16
17.62
10.52

1998 est.

21.06
12.63
20.39
20.05
12.63

Gross Default Rates (in percent)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................
Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

22.47
15.12
31.59
37.66
10.37

1997 est.

22.49
15.18
31.62
37.76
10.36

1998 est.

22.2
15.1
31.55
37.8
10.32

UNSUBSIDIZED STAFFORD LOANS
Subsidy Rate (as a percentage of loan commitments)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................
Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

–6.8
–8.86
–0.98
2.9
–12.77

1997 est.

–7.82
–9.7
–1.49
2.35
–13.76

1998 est.

–4.01
–6.05
2.03
5.6
–9.92

Gross Default Rates (in percent)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................
Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

22.44
15.2
31.17
37.45
10.23

1997 est.

22.58
15.3
31.37
37.52
10.29

1998 est.

22.43
15.23
31.32
37.58
10.26

PLUS LOANS
Subsidy Rate (as a percentage of loan commitments)

1996 actual

All PLUS Loans ........................................................................

1997 est.

1998 est.

–6.53

–6.62

–5.84

8.51

8.69

8.68

Gross Default Rates (in percent)

1996 actual

Risk Categories:
Category 1: 4 year college, 1st and 2nd year students
Category 2: 4 year college, 3rd and 4th year students
Category 3: 2 year college, all students ................................
Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

Category 4: Proprietary school, all students ..........................
Category 5: Graduate students ..............................................

435

10.29
6.73
15.6

1997 est.

10.09
6.69
15.46

1998 est.

9.93
6.66
15.35

All PLUS Loans ........................................................................

Summary of Program Costs and Offsets (In thousands of dollars)
1996 actual

Interest subsidy costs:
FFEL:
Interest benefits .................................................................
Special allowance ...............................................................
Total FFEL ......................................................................
Direct Loans 1 .....................................................................
Default costs and offsets:
Default costs:2
FFEL ....................................................................................

1997 est.

1998 est.

2,522,360
380,186

1,974,346
101,295

1,710,834
47,609

2,902,546
396,626

2,075,641
641,753

1,758,443
918,899

2,573,669

2,874,541

3,006,268

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

436

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

Personnel Summary

FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT—Continued

Identification code 91–0243–0–1–502

Summary of Program Costs and Offsets (In thousands of dollars)—Continued
1996 actual

1997 est.

1001

526

904

1993

1,110

1994

1,413

1995

1,767

520

520

FEDERAL DIRECT STUDENT LOAN PROGRAM ACCOUNT
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 91–0243–4–1–502

1996 actual

1997 est.

1998 est.

392,606

0

91

302

02.01
07.09

Obligations by program activity:
Direct loan subsidy ........................................................ ................... ...................
Student loan administrative expenses .......................... ................... ...................

106
–218

453,620
4,715

1,176,829
21,155

1,217,459
67,240

10.00

Total obligations ........................................................ ................... ...................

–112

222,890
2,679
28,841

261,603
18,798
50,037

260,072
39,337
n.a.

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

–112
112

30,066
436,000

46,482
491,000

47,688
532,000

60.00
60.05

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................
Appropriation (indefinite) ............................................... ................... ...................

–218
106

167,040
43,002
14,501

152,752
22,501
7,052

152,143
7,165
9,539

63.00

Appropriation (total) .................................................. ................... ...................

–112

70.00

Total new budget authority (gross) .......................... ................... ...................

–112

–583,428
–317,550
(105,366)
(53,043)
(64,301)

–502,018
–375,543
(104,740)
(27,900)
(129,130)

–505,558
–447,727
(106,205)
(41,292)
(162,128)

1996 1

1,900

1997 2

2,100

1998 1, 2

1,660

1 Estimated.
2 Assumes

481

1998 est.

381,487

Guaranty Agency Reserve Fund Levels (in millions of dollars)
1992

1997 est.

493,988

1 This represents net interest costs associated with Direct Loans.
2 Default costs under FFEL reflect claims paid to guaranty agencies. Default costs under Direct Loans reflect
non-repayment of defaulted loans.
3 In the budget schedules, Direct Loan collections are displayed net of collection costs.
4 Net default costs equal default claims minus net collections (gross collections minus contract collection costs
and guaranty agency retention).
5 Applies to FFEL program only.
6 Includes repayment of agency advances, elimination of excess agency reserves, through direct payments to
the Government and reduced reinsurance payments to the agencies, and purchase of rehabilitated loans by the
agencies.
7 Supports a number of expenses related to the management of the student assistance programs. The largest
of these, administrative expense allowances to guaranty agencies, is shown as a separate line.
8 Administrative Expense Allowances paid from Student Loan administrative funds.
9 Applies to Direct Loans only. These payments are made to Department contractors that provide alternative
organization services. They are not made to institutions participating in the Direct Loan program.

1991

1996 actual

1998 est.

Direct Loans .......................................................................
4,743
23,254
74,230
Gross default collections:
FFEL .................................................................................... –2,614,037 –2,079,199 –2,181,415
Direct Loans .......................................................................
(28)
(2,190)
(7,292)
Default collection costs:
FFEL:
Contract collection costs ...............................................
145,148
104,021
101,499
Guaranty agency retention .............................................
348,840
277,466
291,107
Total, FFEL collect costs ...........................................
Direct Loans:
Collection costs 3 ...........................................................
Net default costs:4
FFEL ....................................................................................
Direct Loans .......................................................................
Death, disability, and bankruptcy costs:
FFEL ....................................................................................
Direct Loans .......................................................................
Other write-offs 5,6 ......................................................................
Administrative Costs:
Federal administration:
FFEL ....................................................................................
Student Aid 7 ..................................................................
Guaranty agency administrative payments:
Student Aid Management 8 ................................................
Supplemental preclaims assistance 5 ....................................
Payments for origination services 9 ........................................
Fees:
Borrower origination fees:
FFEL ....................................................................................
Direct Loans .......................................................................
Lender origination fee 5 ......................................................
Sallie Mae offset fee 5 ........................................................
Consolidated loan holder fees 5 .........................................

Total compensable workyears: Full-time equivalent
employment ...............................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

...................
...................
...................
...................
...................

................... ...................
...................
–112
...................
56
................... ...................
................... ...................

................... ...................

–56

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ................... ...................

–56

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

–112
–56

A description of the Administration’s proposed legislation
to modify the Direct Loan program is included under the
Federal Direct Loan program account.
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

$731 million returned to the Federal government.

Object Classification (in millions of dollars)
Identification code 91–0243–4–1–502
Identification code 91–0243–0–1–502

11.1
11.3
11.9
12.1
21.0
23.1
23.3
24.0
25.1
25.2
25.3
25.7
26.0
31.0
32.0
41.0
99.9

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................

1996 actual

1997 est.

1998 est.

23
1

26
1

26
1

Total personnel compensation ..............................
24
Civilian personnel benefits ............................................
5
Travel and transportation of persons ............................
2
Rental payments to GSA ................................................
5
Communications, utilities, and miscellaneous charges
14
Printing and reproduction ..............................................
7
Advisory and assistance services ..................................
4
Other services ................................................................
3
Purchases of goods and services from Government
accounts ....................................................................
5
Operation and maintenance of equipment ...................
184
Supplies and materials ................................................. ...................
Equipment ......................................................................
1
Land and structures ......................................................
1
Grants, subsidies, and contributions ............................
420

27
6
3
5
14
7
2
10

27
7
6
9
29
16
4
18

Total obligations ........................................................

675

5
8
257
478
1
1
1
2
1 ...................
565
790
904

1,395

1996 actual

1997 est.

1320
1320
1320

Direct loan subsidy (in percent):
Stafford .......................................................................... ................... ...................
Unsubsidized Stafford .................................................... ................... ...................
PLUS ............................................................................... ................... ...................

1329

1998 est.

1.00
0.50
0.50

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Stafford ..........................................................................
1330 Unsubsidized Stafford ....................................................
1330 PLUS ...............................................................................

................... ...................

0.63

................... ...................
................... ...................
................... ...................

77
21
8

1339

................... ...................

106

................... ...................
................... ...................
................... ...................

41
12
4

1349

Total subsidy outlays ................................................ ................... ...................

57

3510
3590

Student loan administrative expense data:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

–218
–113

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Stafford ..........................................................................
1340 Unsubsidized Stafford ....................................................
1340 PLUS ...............................................................................

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Object Classification (in millions of dollars)
1996 actual

1997 est.

...................
...................
...................
...................
...................
...................

...................
...................
...................
...................
...................
...................

–3
–4
–13
–8
–2
–8

...................
...................
...................
...................
...................

...................
...................
...................
...................
...................

–3
–175
–1
–1
106

Total obligations ........................................................ ................... ...................

–112

Identification code 91–0243–4–1–502

21.0
23.1
23.3
24.0
25.1
25.2
25.3
25.7
26.0
31.0
41.0
99.9

Travel and transportation of persons ............................
Rental payments to GSA ................................................
Communications, utilities, and miscellaneous charges
Printing and reproduction ..............................................
Advisory and assistance services ..................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Operation and maintenance of equipment ...................
Supplies and materials .................................................
Equipment ......................................................................
Grants, subsidies, and contributions ............................

1998 est.

Program and Financing (in millions of dollars)
1996 actual

1997 est.

88.40
88.40
88.40

Unsubsidized Stafford ..................................
PLUS .............................................................
Consolidated ................................................
Volume Reestimate ......................................
Interest on uninvested funds ...............................
Non-Federal sources:
Stafford loans:
Repayment of principal, Stafford ................
Interest received on loans, Stafford ............
Fees, Stafford ...............................................
Recoveries of defaults, Stafford ..................
Unsubsidized Stafford loans:
Repayment of principal, Unsubsidized Stafford ..........................................................
Interest received on loans, Unsubsidized
Stafford ....................................................
Fees, Unsubsidized Stafford ........................
Recoveries of defaults, Unsubsidized Stafford ..........................................................
PLUS loans:
Repayment of principal, PLUS .....................
Interest received on loans, PLUS .................
Fees, PLUS ...................................................
Recoveries of defaults, PLUS .......................
Consolidated:
Payment of Principal, Consolidated ............
Interest received on loans, Consolidated ....
Recoveries of defaults, Consolidated ..........

88.90

Total, offsetting collections (cash) ..................

–1,286

–1,667

–2,989

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

8,221
8,538

11,903
10,933

14,115
13,271

88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40

88.40
88.40
88.40
88.40

FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT

Identification code 91–4253–0–3–502

88.00
88.00
88.00
88.00
88.25

1998 est.

Obligations by program activity:
Direct loans:
01.01
Stafford ......................................................................
01.02
Unsubsidized Stafford ...............................................
01.03
PLUS ..........................................................................
01.04
Consolidated ..............................................................

5,101
2,557
771
832

5,830
3,083
1,025
2,589

6,958
3,765
1,314
3,340

01.91

9,261

12,527

437

332
301
261
62
68
83
7
24
5
–3 ................... ...................
–402 ................... ...................
–84
–9
–188
...................

–109
–158
–221
–1

–256
–367
–259
–4

–51

–57

–146

–32
–94

–83
–116

–206
–140

...................

–1

–2

–57
–123
–45
–137
–35
–38
................... ...................

–214
–218
–48
–1

–22
–82
–27
–154
................... ...................

–194
–332
–1

15,377

02.01
02.02
02.03
02.04

Subtotal, direct loans obligations ........................
Payment of origination services:
Stafford ......................................................................
Unsubsidized Stafford ...............................................
PLUS ..........................................................................
Consolidated ..............................................................

02.91
04.01
05.01

Subtotal, Payment of origination services ................
15
Interest payment to Treasury .........................................
750
Payment of downward reestimate to program account ...................

10.00

Total obligations ........................................................

7
1
1
4 ................... ...................
1 ................... ...................
3
6
9

10,026

7
10
1,035
1,717
304 ...................
13,873

17,104

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
24
24
22.00 New financing authority (gross) ....................................
9,507
13,570
17,104
22.10 Resources available from recoveries of prior year obligations .......................................................................
1,825
304 ...................
22.70 Balance of authority to borrow withdrawn ....................
–1,282 ................... ...................
23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.47
Portion applied to debt reduction .............................
68.90
70.00

10,050
–10,026

13,898
–13,873

17,128
–17,104

24

24

Status of Direct Loans (in millions of dollars)
Identification code 91–4253–0–3–502

1996 actual

1997 est.

1998 est.

STAFFORD
Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
5,101
5,830
6,958
1150

Total direct loan obligations .....................................

5,101

5,830

6,958

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
1,515
6,317
11,753
Disbursements: Direct loan disbursements ...................
4,901
5,549
6,500
Repayments: Repayments and prepayments .................
–84
–109
–261
Adjustments: Capitalized interest .................................
2 ................... ...................
Write-offs for default:
1263
Direct loans ............................................................... ................... ................... ...................
1264
Other adjustments, net .............................................
–17
–4
–10

1210
1231
1251
1261

24

1290

Outstanding, end of year ..........................................

6,317

11,753

17,982

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

2,558

3,083

3,765

1150

2,558

3,083

3,765

9,024

12,140

14,775

1,286
–803

1,667
–237

2,989
–660

Spending authority from offsetting collections
(total) ................................................................

483

1,430

2,329

Total new financing authority (gross) ......................

9,507

13,570

17,104

1210
1231
1251
1261

2,921
3,890
13,873
17,104
–12,600
–16,260
–304 ...................

1290

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Unpaid obligations ....................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Unpaid obligations ....................................................
87.00 Total financing disbursements (gross) .........................
72.90

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
Payments from subsidy account:
88.00
Stafford ........................................................

4,545
10,026
–9,824
–1,825

Total direct loan obligations .....................................

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
666
3,063
5,900
Disbursements: Direct loan disbursements ...................
2,459
2,897
3,496
Repayments: Repayments and prepayments .................
–51
–57
–147
Adjustments: Capitalized interest .................................
14 ................... ...................
Write-offs for default:
1263
Direct loans ............................................................... ................... ................... ...................
1264
Other adjustments, net .............................................
–25
–3
–8

–638

3,890
12,600

–780

4,734
16,260

–950

3,063

5,900

9,241

PLUS
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

771

1,025

1,314

1150

2,921
9,824

Outstanding, end of year ..........................................

Total direct loan obligations .....................................

771

1,025

1,314

1210
1231
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................

216
707
–57

865
943
–124

1,676
1,197
–215

438

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued
FEDERAL DIRECT STUDENT LOAN PROGRAM, FINANCING ACCOUNT—
Continued
Status of Direct Loans (in millions of dollars)—Continued
1996 actual

Identification code 91–4253–0–3–502

1263
1264

1997 est.

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
New obligations ............................................................. ................... ...................

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ................... ...................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ..................................... ................... ...................
68.47
Portion applied to debt reduction ............................. ................... ...................
67.15

1998 est.

Write-offs for default:
Direct loans ............................................................... ................... ................... ...................
Other adjustments, net .............................................
–1
–8
–14

–95
95
–3

Spending authority from offsetting collections
(total) ................................................................ ................... ...................

92

70.00

Total new financing authority (gross) ...................... ................... ...................

–3

73.10
73.20
87.00

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total financing disbursements (gross) ......................... ................... ...................
Total financing disbursements (gross) ......................... ................... ...................

–3
3
–3

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
296
1,320
3,824
Disbursements: Direct loan disbursements ...................
1,033
2,589
3,340
Repayments: Repayments and prepayments .................
–22
–82
–194
Adjustments: Capitalized interest .................................
13 ................... ...................
Write-offs for default:
1263
Direct loans ............................................................... ................... ................... ...................
1264
Other adjustments, net ............................................. ...................
–3
–8

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
Payments from subsidy account:
88.00
Stafford ........................................................ ................... ...................
88.00
Unsubsidized Stafford .................................. ................... ...................
88.00
PLUS ............................................................. ................... ...................

–70
–19
–6

1290

88.90

Total, offsetting collections (cash) .................. ................... ...................

–95

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................
Financing disbursements ............................................... ................... ...................

–98
–98

1290

Outstanding, end of year ..........................................

865

1,676

2,644

CONSOLIDATED
Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

832

2,589

3,340

1150

832

2,589

68.90

–3
3

3,340

Total direct loan obligations .....................................

1210
1231
1251
1261

Outstanding, end of year ..........................................

1,320

3,824

6,962

Balance Sheet (in millions of dollars)
Identification code 91–4253–0–3–502

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
Direct loans receivable, gross:
1401
Stafford ...........................................
1401
Unsubsidized Stafford ....................
1401
PLUS ...............................................
1401
Consolidated ...................................
Interest receivable:
1402
Interest receivable, Stafford ...........
1402
Interest receivable, Unsub Stafford
1402
Interest receivable, PLUS ...............
1402
Interest receivable, Consolidated ...
1405
Allowance for subsidy cost (–) ...........

1995 actual

1996 actual

4,913

1997 est.

2,921

1998 est.

Balance Sheet (in millions of dollars)

1101

1499

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

1999

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3999
4999

Total net position ................................
Total liabilities and net position ............

3,890

4,733
Identification code 91–4253–4–3–502

6,310
3,044
861
1,304

11,725
5,885
1,662
3,817

17,882
9,192
2,607
6,945

..................
..................
..................
..................
–553

5
114
8
25
–655

6
138
10
73
–764

7
167
14
94
–1,404

1996 actual

1997 est.

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1405
Allowance for subsidy cost (–) ...........

..................

..................

..................

–95

..................

..................

..................

–95

1999

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

..................

..................

..................

–95

..................

..................

..................

–98

2999

1,558
708
225
310

1995 actual

..................

..................

..................

–98

..................

..................

..................

3

1499

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

1998 est.

2,248

11,016

22,552

35,504

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

7,161

13,937

26,442

40,237

3999

Total net position ................................

..................

..................

..................

3

6,793

12,220

24,413

38,457

4999

Total liabilities and net position ............

..................

..................

..................

–95

6,793

12,220

24,413

38,457

368

1,717

2,029

1,780

368

1,717

2,029

1,780

7,161

13,937

26,442

40,237

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from Direct Loans. The amounts
in this account are a means of financing and are not included
in the budget totals.
FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
For Federal administrative expenses to carry out guaranteed student loans authorized by title IV, part B, of the Higher Education
Act, as amended, ø$46,572,000¿ $47,988,000. (Department of Education Appropriations Act, 1997.)
Note.—The following tables display the program account which includes the subsidy costs
and administrative expenses associated with guaranteed student loan commitments beginning in 1992.

Program and Financing (in millions of dollars)
Identification code 91–0231–0–1–502

1996 actual

1997 est.

1998 est.

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 91–4253–4–3–502

1996 actual

1997 est.

1998 est.

04.01

Obligations by program activity:
Interest payment to Treasury ......................................... ................... ...................

–3

10.00

Total obligations ........................................................ ................... ...................

Obligations by program activity:
Guaranteed loan subsidy:
02.01
Stafford ......................................................................
02.02
Unsubsidized Stafford ...............................................
02.03
PLUS ..........................................................................
02.05
Consolidated ..............................................................
02.07
Upward reestimate (92 cohort) .................................
02.08
Interest on reestimate ...............................................

2,244
391
44
13
971
72

2,106
1,992
461
448
64
66
30
33
521 ...................
43 ...................

02.91

3,735

3,225

–3
Subtotal, subsidy cost ..........................................

2,539

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

07.01

Administrative expenses:
Administrative expenses due to limitations .............

30

46

48

10.00

Total obligations ........................................................

3,765

3,271

2,587

4,024

3,271

2,587

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................
22.40 Capital transfer to general fund ...................................
22.00
22.10

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

New budget authority (gross), detail:
Current:
40.00
Appropriation (Federal Administration) .....................
Permanent:
60.05
Appropriation (indefinite) ..........................................
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

3,765
–3,765

3,271
–3,271

2,587
–2,587

30

46

48

3,546

471

2,539

448
4,024

2,754 ...................
3,271

2,587

1,002
1,065
1,219
3,765
3,271
2,587
–3,496
–3,117
–2,395
–206 ................... ...................
1,065

1,219

1,411

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

25
16
2,694
761

31
10
2,754
322

34
10
1,407
944

87.00

Total outlays (gross) .................................................

3,496

3,117

2,395

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–448

3,576
3,048

–2,754 ...................

517
363

2,587
2,395

[In millions of dollars]

Enacted/requested:
1996 actual
Budget Authority .....................................................................
3,576
Outlays ....................................................................................
3,048
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................
3,576
3,048

1997 est.

1998 est.

517
363

2,587
2,395

–340
–340

–461
–263

177
23

2,126
2,132

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 91–0231–0–1–502

1996 actual

1997 est.

1998 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Stafford ..........................................................................
2150 Unsubsidized Stafford ....................................................
2150 PLUS ...............................................................................
2150 Consolidated ..................................................................

10,557
6,103
1,591
4,061

10,863
6,176
1,737
4,262

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Stafford ..........................................................................
2340 Unsubsidized Stafford ....................................................
2340 PLUS ...............................................................................
2340 Consolidated ..................................................................
2340 Upward reestimate .........................................................
2340 Downward reestimate ....................................................

3,546

Total subsidy outlays ................................................

3,007

322

2,351

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

30
41

46
41

48
44

2159

22,312

23,038

22,995

23.26
7.09
3.14
0.33

19.38
7.47
3.70
0.70

18.80
7.27
3.65
0.75

13.23

11.55

11.04

2,455
433

2,106
461

1,992
448

2329

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Stafford ..........................................................................
2330 Unsubsidized Stafford ....................................................

471

2,055
311
33
13
1,043
–448

2,539

2,030
1,853
401
407
51
58
30
33
564 ...................
–2,754 ...................

As required by the Federal Credit Reform Act of 1990,
this program account records for this program the subsidy
costs associated with Federal Family Education Loans
(FFEL), formerly guaranteed student loans (GSL), committed
in 1992 and beyond, as well as certain administrative expenses of the program. Administrative expenses include discretionary expenses for salaries, expenses and overhead of
employees working directly on the program. Beginning with
the 1993 cohort, mandatory administrative costs, specifically
contract collection costs and supplemental pre-claims assistance, are included in the FFEL subsidy estimates of each
year’s cohort. The subsidy amounts are estimated on a net
present value basis.
A description of the FFEL program and accompanying tables are included under the Federal Direct Student Loan program account.

1996 actual

Identification code 91–0231–0–1–502

11.1
11.3
11.9
12.1
21.0
23.1
23.3
24.0
25.1
25.2
25.3
25.7
41.0
99.9

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................

1997 est.

1998 est.

15
18
19
1 ................... ...................

Total personnel compensation ..............................
16
18
19
Civilian personnel benefits ............................................
3
4
4
Travel and transportation of persons ............................
1
1
1
Rental payments to GSA ................................................
2
2
2
Communications, utilities, and miscellaneous charges
1
5
1
Printing and reproduction ..............................................
1
1
2
Advisory and assistance services ..................................
1 ................... ...................
Other services ................................................................ ................... ...................
1
Purchases of goods and services from Government
accounts ....................................................................
1
1
1
Operation and maintenance of equipment ...................
4
14
17
Grants, subsidies, and contributions ............................
3,735
3,225
2,539
Total obligations ........................................................

3,765

3,271

2,587

Personnel Summary
Identification code 91–0231–0–1–502

1001

10,596
6,162
1,799
4,438

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Stafford ..........................................................................
2320 Unsubsidized Stafford ....................................................
2320 PLUS ...............................................................................
2320 Consolidated ..................................................................

64
66
30
33
564 ...................
–2,754 ...................

Object Classification (in millions of dollars)

Summary of Budget Authority and Outlays

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

50
13
1,043
–448

2349

206 ................... ...................
–465 ................... ...................

86.90
86.93
86.97
86.98

89.00
90.00

PLUS ...............................................................................
Consolidated ..................................................................
Upward reestimate .........................................................
Downward reestimate ....................................................

2339

72.40

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

2330
2330
2330
2330

439

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

330

368

1998 est.

368

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
1996 actual

1997 est.

...................
...................
...................
...................

...................
...................
...................
...................

–393
–39
–6
–23

Total obligations (object class 41.0) ........................ ................... ...................

–461

Identification code 91–0231–4–1–502

Obligations by program activity:
Guaranteed loan subsidy:
02.01
Stafford ......................................................................
02.02
Unsubsidized Stafford ...............................................
02.03
PLUS ..........................................................................
02.05
Consolidated ..............................................................
10.00

1998 est.

440

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

Program and Financing (in millions of dollars)

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 91–0231–4–1–502

1996 actual

1997 est.

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ...................
23.95 New obligations ............................................................. ................... ...................

60.05
68.00
70.00

New budget authority (gross), detail:
Appropriation (indefinite) ............................................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ...................

–461
461

01.91

340 ...................

02.02
02.03
02.04
02.06
02.07

–461

72.40

86.97
86.98
87.00

................... ................... ...................
................... ...................
–461
................... ...................
263
–198

324
–263
–324 ...................

03.91

Total outlays (gross) ................................................. ................... ...................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources ...................
Net budget authority and outlays:
89.00 Budget authority ............................................................ ...................
90.00 Outlays ........................................................................... ...................

–263

1996 actual

1997 est.

1998 est.

0.00

–2.01

...................
–393
...................
–39
...................
–6
...................
–23
–340 ...................
–340

10.00

Total subsidy outlays ................................................ ...................

101

149

164

239
2
2
2

199
14
1
1

165
14
1
2

4,475

6,926

4,426

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

7,559
5,807

9,146
4,449

6,669
3,880

21.90

23.90
23.95
24.90

–461

...................
–216
...................
–21
...................
–3
...................
–23
–340 ...................
–340

FEDERAL FAMILY EDUCATION LOAN PROGRAM, FINANCING ACCOUNT
Note.—The financing account includes all cash flows to and from the government from
guaranteed student loans committed after 1991.

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................

70.00

256 ................... ...................
13,622
–4,475

13,595
–6,926

10,549
–4,426

9,146

6,669

6,123

6,261
–454

4,775
–326

4,117
–237

Spending authority from offsetting collections
(total) ................................................................

5,807

4,449

3,880

Total new financing authority (gross) ......................

5,807

4,449

3,880

New financing authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.47
Portion applied to debt reduction .............................

–263

A description of the administration’s proposed legislation
to modify the Federal Family Education Loan program is
included under the Federal Direct Student Loan program account.

208
288
50
26
2,340 ...................
414 ...................

Total obligations ........................................................

68.90
2349

Subtotal, PLUS loans ............................................
SLS loans:
Default claims ...........................................................
Death, disability and bankruptcy claims ..................
Supplemental preclaims assistance .........................
Contract collection costs ...........................................

Subtotal, Consolidations loans .............................
123
Interest paid to Treasury ...............................................
83
Payment of downard reestimate to Program account
448
Interest on downward reestimate .................................. ...................

...................

...................
...................
...................
...................
...................

Subtotal, Unsubsidized Stafford loans .................
116
371
565
PLUS loans:
Special Allowance ......................................................
1 ................... ...................
Default claims ...........................................................
80
110
121
Death, disability, and bankruptcy claims .................
19
38
41
Supplemental preclaims assistance .........................
1 ...................
1
Contract Collection Costs .......................................... ...................
1
1

05.91
07.01
08.01
09.01

–461
–263

2329

...................

Subtotal, Stafford loans .......................................
3,359
3,179
3,201
Unsubsidized Stafford loans:
Special allowance ......................................................
3 ................... ...................
Default claims ...........................................................
105
343
519
Death, disability, and bankruptcy claims .................
7
26
42
Supplemental preclaims assistance .........................
1
1
2
Contract collection costs ........................................... ...................
1
2

–340
–340

–3.71
–0.64
–0.33
–0.53

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Stafford ..........................................................................
2340 Unsubsidized Stafford ....................................................
2340 PLUS ...............................................................................
2340 Consolidated ..................................................................
2340 Downward reestimate ....................................................

2,262
1,846
1,698
121 ................... ...................
889
1,256
1,406
77
67
83
9
5
6
1
5
8

05.01
05.03
05.04
05.06
05.07

0.00
0.00
0.00
0.00

2339

1998 est.

Subtotal, SLS loans ..............................................
245
215
182
Consolidations loans:
Interest benefits ........................................................
1 ................... ...................
Default claims ...........................................................
115
172
241
Death, disability, and bankruptcy claims .................
6
35
45
Supplemental preclaims assistance .........................
1
1
1
Contract Collection Costs .......................................... ................... ...................
1

...................
...................
...................
...................

...................
...................
...................
...................
...................

1997 est.

04.91

Guaranteed loan subsidy (in percent):
2320 Stafford ..........................................................................
2320 Unsubsidized Stafford ....................................................
2320 PLUS ...............................................................................
2320 Consolidated ..................................................................
Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Stafford ..........................................................................
2330 Unsubsidized Stafford ....................................................
2330 PLUS ...............................................................................
2330 Consolidated ..................................................................
2330 Downward reestimate ....................................................

04.03
04.04
04.06
04.07

1996 actual

–340 ...................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 91–0231–4–1–502

02.91
03.02
03.03
03.04
03.05
03.06

................... ...................

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................
Outlays from permanent balances ................................ ...................

Obligations by program activity:
Stafford loans:
01.01
Interest benefits ........................................................
01.02
Special allowance ......................................................
01.03
Default claims ...........................................................
01.04
Death, disability, and bankruptcy claims .................
01.06
Supplemental preclaims assistance .........................
01.07
Contract collection costs ...........................................

–461

–340

Total new budget authority (gross) .......................... ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1998 est.

Identification code 91–4251–0–3–502

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Obligated balance .....................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Obligated balance .....................................................
87.00 Total financing disbursements (gross) .........................
72.90

21
–886
1,039
4,475
6,926
4,426
–5,126
–5,000
–4,800
–256 ................... ...................
–886
5,126

1,039
5,000

664
4,800

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
Payment from subsidy account:
88.00
Stafford loans ..............................................
88.00
Unsubsidized Stafford ..................................
88.00
PLUS loans ...................................................
88.00
Consolidated loans ......................................
88.00
Upward reestimate .......................................
88.00
Scheduled payments from Liquidating account for noncontractual modifications
88.25
Interest on uninvested funds: Stafford loans ......
Non-Federal sources:
Stafford loans:
88.40
Recoveries on defaults ................................
88.40
Origination fees ...........................................
88.40
Sallie Mae offset fees ..................................
88.40
Other Fees ....................................................
88.40
Recoveries on defaults ................................
Unsubsidized Stafford:
88.40
Origination fees ...........................................
88.40
Other Fees ....................................................
88.40
Recoveries on defaults ................................
PLUS:
88.40
Origination fees ...........................................
88.40
Other Fees ....................................................
88.40
Recoveries on defaults ................................
SLS:
88.40
Other Fees ....................................................
88.40
Recoveries on defaults ................................
88.40
Origination fees ...........................................
Consolidated:
88.40
Consolidated Loan Holders Fee ...................

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2210
2231
2251

–2,244
–390
–44
–13
–1,043

–1,915
–1,813
–414
–402
–57
–58
–30
–33
–564 ...................

–538
–514

–376
–462

–263
–438

–425
–123
–190
–420
–342
–341
–53
–28
–29
–15 ................... ...................
–76
–16
–35
–208
–191
–194
–4 ................... ...................
–40
–15
–22
–52
–52
–55
–1 ................... ...................
–79
–29
–39
–1 ................... ...................
–27
–11
–21
–8
–21
–22
–66

–129

–162

88.90

Total, offsetting collections (cash) ..................

–6,261

–4,775

–4,117

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

–454
–1,134

–326
225

–237
683

441

7,210
4,374
–273

11,180
5,469
–662

15,643
5,536
–1,183

–124

–318

–510

–7

–26

–42

2290

Outstanding, end of year ..........................................

11,180

15,643

19,444

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

11,180

15,643

19,444

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
45
2331
Disbursements for guaranteed loan claims .............
124
2351
Repayments of loans receivable ...............................
–76
2361
Write-offs of loans receivable ................................... ...................

93
318
–16
–2

393
510
–35
–4

2390

Outstanding, end of year ......................................

93

393

864

PLUS
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

1,591

1,737

1,799

2150

1,591

1,737

1,799

3,629
1,337
–579

4,261
1,486
–763

4,837
1,578
–962

–107

–109

–123

–19

–38

–41

Total guaranteed loan commitments ........................

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2210
2231
2251

2290

Identification code 91–4251–0–3–502

1996 actual

1997 est.

Outstanding, end of year ..........................................

4,261

4,837

5,289

2299

Status of Guaranteed Loans (in millions of dollars)

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

4,261

4,837

5,289

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
174
2331
Disbursements for guaranteed loan claims .............
107
2351
Repayments of loans receivable ...............................
–40
2361
Write-offs of loans receivable ................................... ...................

241
109
–15
–2

333
123
–21
–3

2390

333

432

1998 est.

STAFFORD
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

10,557

10,863

10,596

2150

10,557

10,863

10,596

37,830
9,752
–2,076

44,316
9,779
–3,188

49,598
9,738
–4,359

–1,113

–1,242

–1,431

–77

–67

–83

44,316

49,598

53,463

Total guaranteed loan commitments ........................

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2210
2231
2251

2290

Outstanding, end of year ..........................................

44,316

49,598

53,463

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
955
2331
Disbursements for guaranteed loan claims .............
1,113
2351
Repayments of loans receivable ...............................
–425
2361
Write-offs of loans receivable ................................... ...................

1,643
1,242
–123
–15

2,747
1,431
–190
–23

2390

2,747

241

SLS
Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2150

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

Outstanding, end of year ......................................

Total guaranteed loan commitments ........................ ................... ................... ...................

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2210
2251

3,965

6,061
–454

5,290
–560

4,504
–641

–316

–212

–176

–1

–14

–14

1,643

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

6,102

6,176

6,162

2150

6,102

6,176

6,162

Total guaranteed loan commitments ........................

Outstanding, end of year ..........................................

5,290

4,504

3,673

2299

Outstanding, end of year ......................................

2290

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

5,290

4,504

3,673

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............

479
316

715
212

895
176

442

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

are a means of financing and are not included in the budget
totals.

FEDERAL FAMILY EDUCATION LOAN PROGRAM, FINANCING
ACCOUNT—Continued

FEDERAL FAMILY EDUCATION LOAN FINANCING ACCOUNT

Status of Guaranteed Loans (in millions of dollars)—Continued
1996 actual

Identification code 91–4251–0–3–502

1997 est.

(Legislative proposal, subject to PAYGO)
1998 est.

2351
2361

Repayments of loans receivable ...............................
Write-offs of loans receivable ...................................

–79
–1

–29
–3

–39
–5

2390

Outstanding, end of year ......................................

715

895

1,027

CONSOLIDATED
Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

4,061

4,262

4,438

2150

4,061

4,262

4,438

2,827
4,353
–543

6,501
4,214
–876

9,635
4,389
–1,246

Total guaranteed loan commitments ........................

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2210
2231
2251

2290

Outstanding, end of year ..........................................

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

Identification code 91–4251–4–3–502

01.91

................... ...................

–56

................... ...................

–2

................... ...................
................... ...................

–1
–1

................... ...................

–2

................... ...................

–1

................... ...................
................... ...................

–1
–1

03.03
03.04

–169

–239

04.06

–7

–35

–45

6,501

9,635

12,494

05.04
05.06
05.91
08.01

Subtotal, Consolidations loans ............................. ................... ...................
–2
Payment of downard reestimate to Program account ...................
342 ...................

6,501

9,635

12,494

282

497

125

10.00

342

–63

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ...................................................................... ................... ...................
22.00 New financing authority (gross) .................................... ...................
–27

–369
–446

23.90
23.95
24.90

68.00
1995 actual

1996 actual

7,559

9,146

1997 est.

1998 est.

1101

1701
1704
1999

Total obligations ........................................................ ...................

21.90

Balance Sheet (in millions of dollars)

Net present value of assets related
to defaulted guaranteed loans
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Defaulted guaranteed loans, gross ....
Defaulted guaranteed loans and interest receivable, net .....................

Subtotal, Stafford loans .......................................
Unsubsidized Stafford loans:
Supplemental preclaims assistance .........................
PLUS loans:
Default claims ...........................................................
Death, disability, and bankruptcy claims .................

–129

2390

1599

1998 est.

Subtotal, PLUS loans ............................................
SLS loans:
Supplemental preclaims assistance .........................
Consolidations loans:
Death, disability, and bankruptcy claims .................
Supplemental preclaims assistance .........................

282
239
–21
–3

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................

1997 est.

–51
–6
1

03.91

125
169
–11
–1

Identification code 91–4251–0–3–502

1996 actual

Obligations by program activity:
Stafford loans:
01.01
Interest benefits ........................................................ ................... ...................
01.06
Supplemental preclaims assistance ......................... ................... ...................
01.07
Contract collection costs ........................................... ................... ...................

02.06

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
23
2331
Disbursements for guaranteed loan claims .............
129
2351
Repayments of loans receivable ...............................
–27
2361
Write-offs of loans receivable ................................... ...................
Outstanding, end of year ......................................

Program and Financing (in millions of dollars)

6,303

5,746

1,676

2,817

4,650

6,785

1,676

2,817

4,650

6,785

–3,507

12,151

11,236

9,448

–3,507

12,151

11,236

9,448

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

5,728

24,114

22,189

21,979

1,605

1,134

680

354

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

1,605

1,134

680

354

4,123

22,980

21,509

21,626

3999

Total net position ................................

4,123

22,980

21,509

21,626

4999

Total liabilities and net position ............

5,728

24,114

22,189

21,980

–27
–342

–815
63

–369

–752

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ...................

–27

–446

................... ...................
...................
342
...................
–290

52
–63
2

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Obligated balance .....................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.90 Unpaid obligations, end of year: Obligated balance:
Obligated balance .....................................................
87.00 Total financing disbursements (gross) .........................
72.90

...................
...................

52
290

–9
–2

...................
...................
...................
...................
...................

...................
...................
...................
...................
27

357
35
5
23
68

...................
...................
...................
...................
...................

...................
...................
...................
...................
...................

–20
–13
–3
–2
–4

Total, offsetting collections (cash) .................. ...................

27

446

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
Payment from subsidy account:
88.00
Stafford loans ..............................................
88.00
Unsubsidized Stafford ..................................
88.00
PLUS loans ...................................................
88.00
Consolidated loans ......................................
88.25
Interest on uninvested funds: Stafford loans ......
Non-Federal sources:
Stafford loans:
88.40
Recoveries on defaults ................................
88.40
Sallie Mae offset fees ..................................
88.40
Recoveries on defaults ................................
88.40
Recoveries on defaults ................................
88.40
Recoveries on defaults ................................
88.90

As required by the Federal Credit Reform Act of 1990,
this nonbudgetary account records all cash flows to and from
the Government resulting from guaranteed student loans committed in 1992 and beyond. The amounts in this account

Total budgetary resources available for obligation ...................
New obligations ............................................................. ...................
Unobligated balance available, end of year: Fund
balance ...................................................................... ...................

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ...................
317
444

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Status of Guaranteed Loans (in millions of dollars)
Identification code 91–4251–4–3–502

1996 actual

1997 est.

1998 est.

STAFFORD
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. ................... ................... ...................
2251 Repayments and prepayments ...................................... ................... ...................
3
2290

Outstanding, end of year .......................................... ................... ...................

3

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ................... ...................

3

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................ ................... ................... ...................
2351
Repayments of loans receivable ............................... ................... ...................
–20
2361
Write-offs of loans receivable ................................... ................... ...................
–2
2390

Outstanding, end of year ...................................... ................... ...................

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................ ................... ................... ...................
2351
Repayments of loans receivable ............................... ................... ...................
–4
2361
Write-offs of loans receivable ................................... ................... ...................
–1
2390

2290

Outstanding, end of year .......................................... ................... ...................

2

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ................... ...................

Outstanding, end of year ...................................... ................... ...................

–5

CONSOLIDATED
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. ................... ................... ...................
2251 Repayments and prepayments ...................................... ................... ...................
33
2263 Adjustments: Terminations for default that result in
claim payments ......................................................... ................... ...................
1
2290

Outstanding, end of year .......................................... ................... ...................

34

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ................... ...................

34

Balance Sheet (in millions of dollars)

–22

UNSUBSIDIZED STAFFORD
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. ................... ................... ...................
2251 Repayments and prepayments ...................................... ................... ...................
2

443

Identification code 91–4251–4–3–502

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................

1995 actual

1996 actual

1997 est.

1998 est.

..................

..................

–369

–752

..................

..................

..................

–34

..................

..................

..................

–34

2
1599

Net present value of assets related
to defaulted guaranteed loans

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................ ................... ................... ...................
2351
Repayments of loans receivable ............................... ................... ...................
–3
2361
Write-offs of loans receivable ................................... ................... ...................
–1

Total assets ........................................
NET POSITION:
3100 Appropriated capital ................................

..................

..................

–369

–786

..................

..................

–369

–786

3999

Total net position ................................

..................

..................

–369

–786

2390

4999

Total liabilities and net position ............

..................

..................

–369

–786

Outstanding, end of year ...................................... ................... ...................

–4

PLUS
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. ................... ................... ...................
2251 Repayments and prepayments ...................................... ................... ...................
10
2263 Adjustments: Terminations for default that result in
claim payments ......................................................... ................... ...................
1
2290

Outstanding, end of year .......................................... ................... ...................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ................... ...................

1999

FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT
Note.—The following tables display the liquidating account, which includes all cash flows
to and from the Government from guaranteed student loan commitments prior to 1992.

11

Program and Financing (in millions of dollars)
Identification code 91–0230–0–1–502

11

1996 actual

1997 est.

1998 est.

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................ ................... ................... ...................
2351
Repayments of loans receivable ............................... ................... ...................
–1
2361
Write-offs of loans receivable ................................... ................... ...................
–2

Obligations by program activity:
Stafford loans:
01.01
Interest benefits, net of origination fees ..................
01.02
Special allowance net of origination fees ................
01.03
Default claims ...........................................................
01.04
Death, disability, and bankruptcy claims .................
01.06
Supplemental preclaims assistance .........................
01.07
Contract collection costs ...........................................

260
254
1,091
106
28
136

128
101
767
74
14
78

64
48
539
32
7
68

2390

01.91

Subtotal, Stafford loans .......................................
PLUS/SLS loans:
Default claims ...........................................................
Death, disability, and bankruptcy claims .................
Supplemental preclaims assistance .........................
Contract collection costs ...........................................

1,875

1,162

758

56
5
1
7

30
16
7
4
1 ...................
18
20

Subtotal, PLUS/SLS loans .....................................
Miscellaneous costs:
Scheduled payments to finance account for noncontractual modifications .....................................

69

56

40

538

376

263

Total obligations ........................................................

2,482

1,594

1,061

2,772

1,608

1,554

Outstanding, end of year ...................................... ................... ...................

–3

SLS
Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2150

Total guaranteed loan commitments ........................ ................... ................... ...................

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. ................... ................... ...................
2251 Repayments and prepayments ...................................... ................... ...................
152
2290

Outstanding, end of year .......................................... ................... ...................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ................... ...................

152

02.01
02.02
02.04
02.05
02.91
03.01
10.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................
22.40 Capital transfer to general fund ...................................

22.00
22.10

34 ................... ...................
–324
–14
–493

152
23.90

Total budgetary resources available for obligation

2,482

1,594

1,061

444

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued
FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT—
Continued
Program and Financing (in millions of dollars)—Continued
Identification code 91–0230–0–1–502

23.95

New obligations .............................................................

60.05
68.00

New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1996 actual

–2,482

1997 est.

–1,594

1998 est.

–1,061

PLUS/SLS LOANS
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2251 Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2264
Other adjustments, net .............................................

1,619

1,608

1,554

2,772

1,608

48
261
239
2,482
1,594
1,061
–2,234
–1,614
–1,140
–34 ................... ...................
261

239

159

2,186
48

1,353
261

901
239

87.00

Total outlays (gross) .................................................

2,234

1,614

1,140

–475
–23
–317

–472
–23
–315

–583
–75
–4
–50
–92

–577
–75
–4
–50
–92

–559
–72
–3
–48
–89

–1,619

–1,608

–1,554

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

STAFFORD LOANS
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2251 Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2263
Terminations for default that result in claim payments ....................................................................
2264
Other adjustments, net .............................................

1,153 ................... ...................
616
6
–414

1996 actual

1997 est.

1998 est.

26,846
–9,110

26,412
–5,002

20,540
–4,536

–1,076

–810

–569

–106
–60
–30
9,858 ................... ...................

2290

Outstanding, end of year ..........................................

26,412

20,540

15,405

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

26,412

20,540

15,405

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................
2364
Other adjustments, net .............................................
2390

Outstanding, end of year ......................................

–33

–18

–5
–7
–3
2,212 ................... ...................
3,914

3,043

1,331

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

3,914

3,043

1,331

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................
2364
Other adjustments, net .............................................

3,166
68
–222
–3
–18

2,991
33
–208
–190
–15

2,611
18
–193
–187
–12

2390

2,991

2,611

2,237

Outstanding, end of year ......................................

1 Excludes

interest and premium collections on insured loans.

As required by the Federal Credit Reform Act of 1990,
this liquidating account records, for this program, all cash
flows to and from the Government resulting from guaranteed
student loans committed prior to 1992. This account is shown
on a cash basis. All new loan activity in this program in
1992 and beyond is recorded in corresponding program and
financing accounts.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0230–0–1–502

Status of Guaranteed Loans (in millions of dollars)
Identification code 91–0230–0–1–502

–56

Outstanding, end of year ..........................................

–456
–23
–304

Total, offsetting collections (cash) ..................

3,043
–1,691

1,554

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

88.90

3,914
–831

2290
1,153 ................... ...................

86.97
86.98

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
Stafford loans:
88.40
Federal collections on defaulted loans .......
88.40
Federal collections on bankruptcies ............
88.40
Offsets against Federal tax refunds ...........
Other collections:
88.40
Reimbursements from guaranty agencies ...
88.40
Federal collections on defaulted loans .......
88.40
Federal collections on bankruptcies ............
88.40
Offsets against Federal tax refunds ...........
88.40
Reimbursements from guaranty agencies ...

2,727
–964

1997 est.

1998 est.

25.2
33.0
41.0
42.0

Other services ................................................................
Investments and loans ..................................................
Grants, subsidies, and contributions ............................
Insurance claims and indemnities ................................

142
1,147
1,081
112

96
796
620
82

88
555
382
36

99.9

Total obligations ........................................................

2,482

1,594

1,061

COLLEGE HOUSING

AND

ACADEMIC FACILITIES LOANS PROGRAM

øFor administrative expenses to carry out the existing direct loan
program of college housing and academic facilities loans entered into
pursuant to title VII, part C, of the Higher Education Act, as amended, $698,000.¿
For Federal administrative expenses to carry out activities related
to facility loans entered into under title VII, part C and section 702
of the Higher Education Act, as amended, $1,069,000. (Department
of Education Appropriations Act, 1997.)
HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
PROGRAM ACCOUNT
The total amount of bonds insured pursuant to section 724 of title
VII, part B of the Higher Education Act shall not exceed
$357,000,000, and the cost, as defined in section 502 of the Congressional Budget Act of 1974, of such bonds shall not exceed zero.
For administrative expenses to carry out the Historically Black
College and University Capital Financing Program entered into pursuant to title VII, part B of the Higher Education Act, as amended,
$104,000. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0241–0–1–502

10,013
1,365
–1,395
–11
–104

9,868
810
–1,398
–11
–84

9,185
569
–1,359
–11
–65

9,868

9,185

8,319

1996 actual

1997 est.

1998 est.

00.09

Obligations by program activity:
Federal administration ...................................................

1

1

1

10.00

Total obligations ........................................................

1

1

1

22.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................

1

1

1

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
22.10

Resources available from recoveries of prior year obligations .......................................................................

2 ................... ...................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

3
–1

1
–1

1
–1

40.00

New budget authority (gross), detail:
Appropriation (Federal administration) .........................

1

1

1

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

8
5
4
1
1
1
–2
–2
–2
–2 ................... ...................
5

4

4

profit Designated Bonding Authority to guarantee no more
than $357,000,000 loan principal plus accrued unpaid interest
for taxable bonds. The bonding authority issues the bonds
and maintains an escrow account in which 10 percent of each
institution’s principal is deposited. This amount is estimated
to be sufficient to cover all potential delinquencies and defaults.
The first loan was issued in 1996 for $3.5 million, and
additional loans are expected in 1997 and 1998. No subsidy
appropriations are required. The 1998 budget requests funds
for continuing Federal administrative activities only.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–0241–0–1–502

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

1
1

1
1

1
1

99.5

87.00

Total outlays (gross) .................................................

2

2

2

99.9

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
2

1
2

1
2

25.3

Identification code 91–0241–0–1–502

1996 actual

1997 est.

1997 est.

1998 est.

Direct obligations: Purchases of goods and services
from Government accounts ....................................... ................... ...................
1
Below reporting threshold ..............................................
1
1 ...................
Total obligations ........................................................

1

1

1

Personnel Summary
1996 actual

Identification code 91–0241–0–1–502

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

445

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

8

1998 est.

7

9

1998 est.

1340

Direct loan subsidy outlays:
Subsidy outlays ..............................................................

1

1 ...................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays from new authority ...........................................

1
1

1
1

1
1

The College Housing and Academic Facilities Loan
(CHAFL) Program account and the Historically Black College
and University (HBCU) Capital Financing Program account
are consolidated for presentation purposes. The College Housing and Academic Facilities Loans and Historically Black College and University Capital Financing programs will continue
to be administered separately.
The College Housing and Academic Facilities Loans Program.—The Department began issuing CHAFL facility loans
in 1987 and made its last awards in 1993. Prior to 1987,
loans were made under two separate loan programs: Higher
Education and Facilities Loans (HEFL) and College Housing
Loans (CHL). The loans support financing for the reconstruction, renovation, and construction of academic facilities, housing and other postsecondary education facilities for students
and faculty. Although the Department no longer makes new
loans, the Department continues to be responsible for conducting architectural and engineering reviews before disbursing
payments to institutions and servicing the outstanding loans
under an agreement with the Federal Reserve Bank.
In prior years, funding for CHAFL administration was in
this account, and funding for CHL and HEFL administration
was split between the Department’s Program Administration
account and the liquidating accounts for these two programs.
In fiscal year 1998, the Department plans to consolidate funding for administrative activities for CHAFL, HEFL and CHL
under a single account. The FY 1998 request includes funding
for personnel, loan servicing, and architectural and engineering services.
Historically Black College and University Capital Financing
Program.—The Historically Black College and University
(HBCU) Capital Financing Program provides HBCUs with
private capital for capital projects such as repairs, renovation
and construction of classrooms, libraries, laboratories, dormitories, instructional equipment, and research instrumentation. The 1994 appropriation granted the Department authority to enter into insurance agreements with a private for-

COLLEGE HOUSING

AND

ACADEMIC FACILITIES LOANS FINANCING
ACCOUNT

Note.—The financing account includes all cash flows to and from the Government from
college housing and academic facilities loans committed after 1991.

Program and Financing (in millions of dollars)
Identification code 91–4252–0–3–502

1996 actual

1997 est.

1998 est.

00.02

Obligations by program activity:
Interest paid to Treasury ...............................................

1

1

1

10.00

Total obligations ........................................................

1

1

1

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

1 ...................
–1
–1

1
–1

New financing authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in orders on hand from Federal sources
68.15
Adjustment to orders on hand from Federal sources
68.90
70.00

Spending authority from offsetting collections
(total) ................................................................ ................... ...................

1

Total new financing authority (gross) ...................... ................... ...................

1

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Authority to Borrow ....................
72.95
Obligate balance: Subsidy ........................................
72.99
73.10
73.20
73.40

2
1
1
–4
–1 ...................
2 ................... ...................

74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance: Obligated balance .....................
Receivables from program account ..........................

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Principal repayments ............................................
88.25
Interest on uninvested funds ...............................

38
8

22
4

16
3

46
26
19
1
1
1
–9
–8
–4
–12 ................... ...................
22
4

16
3

14
3

26
9

19
8

17
4

–1 ................... ...................
–1 ................... ...................

446

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued
COLLEGE HOUSING

øCOLLEGE HOUSING LOANS¿

AND ACADEMIC FACILITIES
ACCOUNT—Continued

LOANS FINANCING

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 91–4252–0–3–502

88.40

1997 est.

Interest repayments .............................................. ...................

1998 est.

–1

–1

88.90
88.95
88.96

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............
Adjustment to orders on hand from Federal sources

–2
–1
–1
4
1 ...................
–2 ................... ...................

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

1 ................... ...................
7
7
3

øPursuant to title VII, part C of the Higher Education Act, as
amended, for necessary expenses of the college housing loans program, the Secretary shall make expenditures and enter into contracts
without regard to fiscal year limitation using loan repayments and
other resources available to this account. Any unobligated balances
becoming available from fixed fees paid into this account pursuant
to 12 U.S.C. 1749d, relating to payment of costs for inspections and
site visits, shall be available for the operating expenses of this account.¿ (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0242–0–1–502

Status of Direct Loans (in millions of dollars)

10.00

Obligations by program activity:
Total obligations (object class 43.0) ............................

1996 actual

33

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
41
22.00 New budget authority (gross) ........................................
36
22.10 Resources available from recoveries of prior year obligations ....................................................................... ...................
22.60 Redemption of debt .......................................................
–3

1997 est.

1998 est.

25

24

41
29

50
27

21.40

1996 actual

Identification code 91–4252–0–3–502

1997 est.

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1150

Total direct loan obligations ..................................... ................... ................... ...................

1210
1231
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
6
13
19
Disbursements: Direct loan disbursements ...................
7
6
3
Repayments: Repayments and prepayments ................. ................... ................... ...................

1290

Outstanding, end of year ..........................................

13

19

22

The reestimate of the subsidy from prior year obligations
may require the Department to exercise its permanent indefinite authority to borrow funds to cover outstanding Treasury
interest expenses due on September 30, 1998.

1995 actual

1996 actual

1997 est.

1998 est.

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

74
–33

75
–25

74
–24

41

50

51

6

3

3

76
–4
–42

59
–3
–30

59
–3
–32

Spending authority from offsetting collections
(total) ................................................................

30

26

24

Total new budget authority (gross) ..........................

36

29

27

New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.27
Capital transfer to general fund ..............................
68.47
Portion applied to debt reduction .............................
60.05

68.90
70.00

Balance Sheet (in millions of dollars)
Identification code 91–4252–0–3–502

23.90
23.95
24.40

10 ...................
–5
–3

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
43
73.10 New obligations .............................................................
33
73.20 Total outlays (gross) ......................................................
–30
73.45 Adjustments in unexpired accounts .............................. ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
46
72.40

ASSETS:
Investments in US securities:
1106
Federal assets: Receivables, net ........
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........
1499

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

9

8

4

3

5
..................
–2

11
..................
–4

19
1
–1

22
1
..................

3

7

19

23

86.97
86.98

12

15

23

26

87.00

1
5

1
11

1
20

1
27

Outlays (gross), detail:
Outlays from new permanent authority .........................
30
Outlays from permanent balances ................................ ...................

46
31
25
24
–30
–27
–10 ...................
31

28

23
7

23
4

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2103
Debt .....................................................
2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

6

12

21

28

6

3

2

–2

3999

Total net position ................................

6

3

2

–2

4999

Total liabilities and net position ............

12

15

23

Total outlays (gross) .................................................

30

30

27

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Repayments of principal ..................................
88.40
Interest received on loans ................................

–50
–26

–39
–20

–39
–20

88.90

Total, offsetting collections (cash) ..................

–76

–59

–59

89.00
90.00

1999

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–40
–45

–30
–29

–32
–32

26

COLLEGE HOUSING

AND

ACADEMIC FACILITIES LOANS LIQUIDATING
ACCOUNT

øHIGHER EDUCATION FACILITIES LOANS¿
øThe Secretary is hereby authorized to make such expenditures,
within the limits of funds available under this heading and in accord
with law, and to make such contracts and commitments without
regard to fiscal year limitation, as provided by section 104 of the
Government Corporation Control Act (31 U.S.C. 9104), as may be
necessary in carrying out the program for the current fiscal year.¿
(Department of Education Appropriations Act, 1997.)

Status of Direct Loans (in millions of dollars)
Identification code 91–0242–0–1–502

1996 actual

1997 est.

1998 est.

CHAFL LIQUIDATING
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................

144
152
148
13 ................... ...................
–5
–4
–3

1290

152

Outstanding, end of year ..........................................

148

145

OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT
Federal Funds

DEPARTMENT OF EDUCATION
HIGHER EDUCATION FACILITIES LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................

54
–6

48
–6

42
–6

1290

Outstanding, end of year ..........................................

48

42

36

COLLEGE HOUSING LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................

484
–38

446
–31

415
–31

1290

446

415

384

Outstanding, end of year ..........................................

The College Housing and Academic Facilities Loans Liquidating Account records all cash flows to and from the Government resulting from direct loans made prior to 1992 to
schools and colleges for the reconstruction, renovation, and
construction of academic facilities, housing and other postsecondary education facilities. Loans were made under three
separate loan programs: Higher Education and Facilities
Loans, College Housing Loans, and College Housing and Academic Facilities Loans. In 1998, the Department is consolidating the three loan programs into the CHAFL Liquidating
account for budget presentation purposes only. The three individual programs will continue to be administered separately.

ø$598,350,000: Provided, That $200,000,000 shall be for section 3132,
$56,965,000 shall be for section 3136 and $10,000,000 shall be for
section 3141 of the Elementary and Secondary Education Act: Provided further, That notwithstanding any other provision of law, onehalf of one percent of the amount available for section 3132 of the
Elementary and Secondary Education Act of 1965, as amended, shall
be set aside for the outlying areas to be distributed among the outlying areas on the basis of their relative need as determined by the
Secretary in accordance with the purposes of the program: Provided
further, That, notwithstanding section 3131(b) of said Act, if any
State educational agency does not apply for a grant under section
3132, that State’s allotment under section 3131 shall be reserved
by the Secretary for grants to local educational agencies in the State
that apply directly to the Secretary according to the terms and conditions announced by the Secretary in the Federal Register: Provided
further, That, of the amount available for title III, part B of the
Elementary and Secondary Education Act of 1965, as amended, funds
shall be awarded to continue the Iowa Communication Network statewide fiber optic demonstration and $2,000,000 shall be awarded to
the Southeastern Pennsylvania Consortium for Higher Education for
the establishment of local and wide area computer networks to provide instructional resources to students and faculty: Provided further,
That none of the funds appropriated in this paragraph may be obligated or expended for the Goals 2000 Community Partnerships Program¿. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–1100–0–1–999

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL
FINANCING, FINANCING ACCOUNT
Status of Guaranteed Loans (in millions of dollars)
1996 actual

Identification code 91–4254–0–3–502

1997 est.

1998 est.

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................

2210
2231
2251

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year ............................................. ................... ...................
10
Disbursements of new guaranteed loans ...................... ...................
10
15
Repayments and prepayments ...................................... ................... ................... ...................

2290

Outstanding, end of year .......................................... ...................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ...................

10

10

25

25

Note.—The appropriations language for this program specifies a limitation that applies to direct and guaranteed
loans in total.

In FY 1997, the Federal Financing Bank (FFB) began purchasing bonds issued by the HBCU Designated Bonding Authority. Under the policies governing Federal credit programs,
loan guarantees by the FFB create the equivalent of a Federal
direct loan. For budget purposes, all FFB loans shall be treated as direct loans. HBCU bonds are still available for purchase by the private sector, and these will be treated as
loan guarantees. The Department expects some future loans
may be financed from private sources.

OFFICE OF EDUCATIONAL RESEARCH AND
IMPROVEMENT
Federal Funds
General and special funds:
EDUCATION RESEARCH, STATISTICS,

IMPROVEMENT

For carrying out activities authorized by the Educational Research,
Development, Dissemination, and Improvement Act of 1994, including
part E; the National Education Statistics Act of 1994; section 2102,
sections ø3132,¿ 3136 and 3141, parts B, C, and D of title III and
parts A, B, and I, øand K¿ and section 10601 of title X, and part
C of title XIII of the Elementary and Secondary Education Act of
1965, as amended, and title VI of Public Law 103–227, $510,693,000

1996 actual

Obligations by program activity:
Direct program:
Research, development and dissemination:
00.01
National education research institutes ................
43
00.02
Regional educational laboratories ........................
51
00.03
National dissemination activities .........................
13
00.04
Statistics ...................................................................
46
00.05
Assessment ................................................................
33
00.06
Eisenhower professional development national activities ...................................................................
18
Educational technology:
Technology for education:
00.07
Technology literacy challenge fund .................. ...................
00.08
Technology innovation challenge grants ..........
38
00.09
Regional technology in education consortia
10
00.10
Star schools ..........................................................
23
00.11
Ready to learn television ......................................
6
00.12
Telecommunications demonstration project for
mathematics .....................................................
1
00.13
Fund for the improvement of education ...................
38
00.14
Javits gifted and talented education ........................
3
00.15
Eisenhower regional mathematics and science education consortia ....................................................
15
00.16
After-school learning centers ....................................
1
00.17
National writing project ............................................
3
00.18
Civic education ..........................................................
4
00.19
International education exchange .............................
5

1997 est.

1998 est.

54
51
19
50
33

62
54
19
66
38

13

30

200 ...................
57
75
10
10
30
26
7
7
1
40
5

2
40
7

15
15
1
50
3 ...................
4
5
5
5

00.91
02.01

Subtotal, direct program ......................................
Reimbursable program ..................................................

10.00

Total obligations ........................................................

353

598

511

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

353
–353

598
–598

511
–511

351

598

511

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

AND

447

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

351
598
511
2 ................... ...................

2 ................... ...................
353

598

511

72.40

322
358
543
353
598
511
–313
–412
–551
–4 ................... ...................
358

543

503

448

OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
EDUCATION RESEARCH, STATISTICS,

AND

IMPROVEMENT—Continued

Program and Financing (in millions of dollars)—Continued
Identification code 91–1100–0–1–999

1996 actual

1997 est.

1998 est.

86.90
86.93
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from permanent balances ................................

82
229
2

130
129
281
422
1 ...................

87.00

Total outlays (gross) .................................................

313

412

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

551

–2 ................... ...................

351
311

598
412

511
551

Note.—Excludes $425 million in budget authority in 1998 for activities transferred to the Office of Elementary
and Secondary Education, Education Reform Account. The comparable amount for 1997 was $200 million (included
above) and zero in 1996, since the program was first funded in 1997.

Research, development, and dissemination.—
National research institutes.—Funds support the activities of five research institutes organized to address topics
of national concern in education. The institutes carry out
comprehensive programs of research and development by
funding research centers, field-initiated research studies,
and other research projects.
Regional educational laboratories.—Ten laboratories provide applied research and development, dissemination, and
technical assistance services to address needs in specified
regions throughout the country.
National dissemination activities.—Funds support information clearinghouses, a national dissemination system,
and a national library of education, which serves as a
central location within the Federal government for information on education.
Statistics.—Funds support the collection of statistics on educational institutions and on individuals to monitor trends in
education, and a coordinated program of statistical services
to assist States in developing comparable data bases and
analyses of the implications of data.
Assessment.—Funds support the National Assessment of
Educational Progress, which surveys young Americans to provide reliable information about educational attainment in important skill areas. Both national- and State-representative
data are collected.
Eisenhower professional development national activities.—
Funds support activities to promote excellence in teaching.
Such activities include strengthening professional standards
for teachers, demonstrating ways to engage teachers and
other educators in the use of effective teaching and learning
strategies, providing support services for both Eisenhower
State and Federal program activities, and evaluating these
activities.
Technology for education.—
Technology innovation challenge grants.—Competitive
grants are made to consortia of school districts and other
partners to improve teaching and learning through the effective use of technologies.
Regional technology in education consortia.—Funds support technical assistance in the development and implementation of educational technology.
Star schools.—Funds support the acquisition of telecommunications equipment and development of instructional
programming for distance learning.

Ready to learn television.—Funds support the development
of educational programming for preschool and elementary
school children and their parents.
Telecommunications demonstration project for mathematics.—Funds support a national telecommunications-based
demonstration project to improve the teaching of mathematics
so that all students are prepared to achieve State content
standards.
Fund for the improvement of education.—Funds support nationally significant projects to improve the quality of education, assist all students to meet challenging standards, contribute to achievement of the National Education Goals and
support the Christa McAuliffe Fellowships.
Javits gifted and talented education.—Funds support
projects designed to help educators identify and meet the
special educational needs of gifted and talented students and,
where appropriate, to adapt strategies successful with those
students to improve instruction for all students.
Eisenhower regional mathematics and science education consortia.—Funds support regional consortia to disseminate exemplary mathematics and science education materials and
provide technical assistance to help teachers and administrators implement new teaching methods and assessment tools.
After-school learning centers.—Funds support school-based
after-school tutoring and other educational and violence prevention services to members of the community.
Civic education.—Funds are used to provide an award to
the Center for Civic Education to help educate students about
the history and principles of the Constitution, including the
Bill of Rights.
International education exchange.—Funds are used for
international exchange programs to help improve civics and
economics education in central and eastern European countries, countries that were part of the former Soviet Union,
and the United States.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–1100–0–1–999

1997 est.

1998 est.

1
2
5
46

1
2
5
52

1
1
5
71

25.5
25.7
41.0

Direct obligations:
Personnel compensation: Other than full-time permanent ..................................................................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Research and development contracts .......................
Operation and maintenance of equipment ...............
Grants, subsidies, and contributions ........................

9
55
9
222

9
56
9
462

9
56
9
357

99.0
99.0
99.5

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................
Below reporting threshold ..............................................

349
596
509
2 ................... ...................
2
2
2

99.9

Total obligations ........................................................

11.3
24.0
25.1
25.2
25.3

353

598

511

Personnel Summary
1996 actual

Identification code 91–1100–0–1–999

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

11

1997 est.

13

1998 est.

13

LIBRARIES

The account for the Office of Library programs, which was
formerly shown under the Department of Education, Office
of Educational Research and Improvement, is now part of
the Institute of Museum and Library Services.

DEPARTMENTAL MANAGEMENT
Federal Funds

DEPARTMENT OF EDUCATION

DEPARTMENTAL MANAGEMENT
Federal Funds
General and special funds:
PROGRAM ADMINISTRATION
For carrying out, to the extent not otherwise provided, the Department of Education Organization Act, including rental of conference
rooms in the District of Columbia and hire of two passenger motor
vehicles, ø$327,000,000¿ $341,039,000. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–0800–0–1–503

1996 actual

1997 est.

cation agencies and other grant recipients, and preparation
of auditable financial statements; ADP services; personnel
management; budget formulation and execution; program
evaluation; legal services; congressional and public relations;
and intergovernmental affairs.
Reimbursable program.—Reimbursements to this account
include the costs of collecting defaulted Perkins student loans
and of providing administrative services to other agencies.
Also included in this account are contributions from the
public. Activities supported include the Goals 2000 Teachers’
Forum, and the Gifts and Bequests Miscellaneous Fund. No
new contributions are currently anticipated for 1998.
Object Classification (in millions of dollars)

1998 est.

00.01
01.01

Obligations by program activity:
Direct program ...............................................................
Reimbursable programs .................................................

326
6

326
8

341
8

10.00

Total obligations ........................................................

332

334

349

22.00
22.30

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

11.1
11.3
11.5

333
334
349
–1 ................... ...................

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

11.9
12.1
21.0
23.1
23.3

334
–334

349
–349

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
327
40.75
Reduction pursuant to P.L. 104–208 ....................... ...................

327
341
–1 ...................

43.00
68.00
70.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

327

326

341

6

8

8

Total new budget authority (gross) ..........................

333

334

349

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1996 actual

Identification code 91–0800–0–1–503

332
–332

24.0
25.1
25.2
25.3
25.4
25.7
26.0
31.0
32.0
99.0
99.0
99.5

183
119
123
332
334
349
–406
–330
–348
10 ................... ...................
119

123

99.9

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................

245
78
4
3

253
87
4
4

87.00

406

330

1998 est.

140
11
1

141
11
1

152
30
5
23

152
31
5
22

153
33
5
25

17
8
5
10

16
9
5
9

17
10
5
13

14
1
44
3
13
1

15
1
50
3
5
1

14
1
46
3
13
2

Subtotal, direct obligations ..................................
326
Reimbursable obligations ..............................................
6
Below reporting threshold .............................................. ...................

324
7
3

340
7
2

334

349

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Rental payments to GSA ...........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Operation and maintenance of facilities ..................
Operation and maintenance of equipment ...............
Supplies and materials .............................................
Equipment .................................................................
Land and structures ..................................................

Total obligations ........................................................

332

Personnel Summary
1996 actual

Identification code 91–0800–0–1–503

254
130
3
19

1997 est.

137
13
2

124

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................
86.97 Outlays from new permanent authority .........................
86.98 Outlays from permanent balances ................................

348

Total outlays (gross) .................................................

449

Total compensable workyears:
1001 Full-time equivalent employment ..................................
1005 Full-time equivalent of overtime and holiday hours

OFFICE

FOR

2,733
3

1997 est.

2,630
3

1998 est.

2,575
3

CIVIL RIGHTS

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–6

–8

–8

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

For expenses necessary for the Office for Civil Rights, as authorized
by section 203 of the Department of Education Organization Act,
ø$55,000,000¿ $61,500,000. (Department of Education Appropriations
Act, 1997.)

327
400

326
322

341
340

Program and Financing (in millions of dollars)

89.00
90.00

Identification code 91–0700–0–1–751

The Program Administration account includes the direct
Federal costs of providing grants and administering elementary and secondary education, bilingual education, higher education, vocational and adult education, and special education
programs, programs for persons with disabilities and a portion of the direct Federal costs for administering student financial aid programs. It also supports assessment, statistics,
research and improvement activities.
In addition, this account includes the cost of providing centralized support and administrative services, overall policy
development, and strategic planning for the Department. Included in the centralized activities are rent and mail services;
telecommunciations; contractual services; financial management and accounting, including payments to schools, edu-

1996 actual

1997 est.

1998 est.

00.01

Obligations by program activity:
Direct program: Civil Rights ..........................................

55

55

62

10.00

Total obligations ........................................................

55

55

62

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

55
–55

55
–55

62
–62

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

55

55

62

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................

28
55

11
55

9
62

72.40

450

DEPARTMENTAL MANAGEMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

29
–29

30
–30

32
–32

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

29

30

32

8
29
–31

6
30
–31

5
32
–31

6

5

6

General and special funds—Continued
OFFICE

FOR

CIVIL RIGHTS—Continued

Program and Financing (in millions of dollars)—Continued
1996 actual

Identification code 91–0700–0–1–751

73.20
74.40

Total outlays (gross) ......................................................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1997 est.

1998 est.

–72

–57

–60

11

9

11

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

48
24

48
9

53
7

87.00

Total outlays (gross) .................................................

72

57

60

Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

55
72

55
57

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

25
6

26
5

27
4

62
60

87.00

Total outlays (gross) .................................................

31

31

31

The Office for Civil Rights is responsible for ensuring that
no person is unlawfully discriminated against on the basis
of race, color, national origin, sex, disability, or age in the
delivery of services or the provision of benefits in programs
or activities of schools and institutions receiving financial assistance from the Department of Education. The authorities
under which the Office for Civil Rights operates are title
VI of the Civil Rights Act of 1964 (racial and ethnic discrimination), title IX of the Education Amendments of 1972 (sex
discrimination), section 504 of the Rehabilitation Act of 1973
(discrimination against individuals with a disability), the Age
Discrimination Act of 1975, and the Americans with Disabilities Act of 1990.

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

29
31

30
31

32
31

The Inspector General is responsible for the quality, coverage, and coordination of audit, investigation, and security
functions relating to Federal education activities. The Inspector General has the authority to inquire into all activities
of the Department including those performed under Federal
education contracts, grants, or other agreements. Under the
Chief Financial Officers Act of 1990, the Inspector General
is also responsible for internal reviews of the Department’s
financial systems and audits of its financial statements.
Object Classification (in millions of dollars)

Object Classification (in millions of dollars)
1996 actual

Identification code 91–0700–0–1–751

11.1
11.3
11.9
12.1
21.0
23.1
23.3
25.2
25.3
25.7
26.0
31.0
99.5
99.9

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................

38
1

Total personnel compensation ..............................
38
38
Civilian personnel benefits ............................................
7
7
Travel and transportation of persons ............................
1
1
Rental payments to GSA ................................................
4
4
Communications, utilities, and miscellaneous charges
1
1
Other services ................................................................ ................... ...................
Purchases of goods and services from Government
accounts ....................................................................
1
2
Operation and maintenance of equipment ...................
1
1
Supplies and materials ................................................. ................... ...................
Equipment ......................................................................
1 ...................
Below reporting threshold ..............................................
1
1

39
8
1
5
1
1

55

55

1996 actual

Identification code 91–1400–0–1–751

1998 est.

37
1

Total obligations ........................................................

37
1

1997 est.

2
2
1
1
1

11.1
11.5
11.9
12.1
21.0
23.1
25.1
25.3
25.7
99.5
99.9

Personnel compensation:
Full-time permanent ..................................................
Other personnel compensation ..................................

19
1

Total personnel compensation ..............................
18
19
Civilian personnel benefits ............................................
4
4
Travel and transportation of persons ............................
1
1
Rental payments to GSA ................................................
2
2
Advisory and assistance services ..................................
1 ...................
Purchases of goods and services from Government
accounts ....................................................................
1
1
Operation and maintenance of equipment ................... ................... ...................
Below reporting threshold ..............................................
2
3

20
5
1
2
1

Total obligations ........................................................

1001

1001
1996 actual

Total compensable workyears: Full-time equivalent
employment ...............................................................

744

1997 est.

724

29

30

1
1
1
32

Personnel Summary
Identification code 91–1400–0–1–751

Identification code 91–0700–0–1–751

1998 est.

18
1

62

Personnel Summary

17
1

1997 est.

1998 est.

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

305

1997 est.

1998 est.

317

317

724

HEADQUARTERS RENOVATION
Program and Financing (in millions of dollars)
OFFICE

OF THE

INSPECTOR GENERAL

For expenses necessary for the Office of the Inspector General,
as authorized by Section 212 of the Department of Education Organization Act, ø$30,000,000¿ $32,000,000. (Department of Education Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 91–1400–0–1–751

1996 actual

Identification code 91–1500–0–1–503

10.00

Obligations by program activity:
Total obligations ............................................................

1996 actual

1

1997 est.

1998 est.

6 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
6 ...................
22.00 New budget authority (gross) ........................................
7 ................... ...................
21.40

1997 est.

1998 est.

00.01

Obligations by program activity:
Inspector General ...........................................................

29

30

32

10.00

Total obligations ........................................................

29

30

32

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

7
–1

6 ...................
–6 ...................

6 ................... ...................

GENERAL PROVISIONS

DEPARTMENT OF EDUCATION

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

7 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
73.10 New obligations .............................................................
1
73.20 Total outlays (gross) ...................................................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
1
72.40

1
2
6 ...................
–5
–2
2 ...................

86.93

Outlays (gross), detail:
Outlays from current balances ...................................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
7 ................... ...................
Outlays ........................................................................... ...................
5
2

5

2

This account provides the Department of Education’s portion of funds to renovate its headquarters building, including
costs for administrative services, information technology, telecommunications cabling, and systems furniture. The remaining funds required for the renovation, which began in October
1994, will be provided by the General Services Administration.
Object Classification (in millions of dollars)
1996 actual

Identification code 91–1500–0–1–503

1997 est.

1998 est.

25.2
25.7
31.0

Other services ................................................................ ...................
Operation and maintenance of equipment ................... ...................
Equipment ...................................................................... ...................

99.0
99.5

Subtotal, direct obligations .................................. ...................
6 ...................
Below reporting threshold ..............................................
1 ................... ...................

99.9

Total obligations ........................................................

1 ...................
2 ...................
3 ...................

1

6 ...................

GENERAL FUND RECEIPT ACCOUNTS

1996 actual

1997 est.

1998 est.

Offsetting receipts from the public:
91–022100 FFEL Guarantee agency reserve recoveries:
Legislative proposal, subject to PAYGO ............................. ................... ...................
91–291500 Repayment of loans, capital contributions,
higher education activities, Education ..............................
61
62

731

General Fund Offsetting receipts from the public .....................

792

61

62

or clustering. The prohibition described in this section does not include the establishment of magnet schools.
SEC. 303. No funds appropriated under this Act may be used to
prevent the implementation of programs of voluntary prayer and
meditation in the public schools.
øSEC. 304. Notwithstanding any other provision of law, funds available under section 458 of the Higher Education Act shall not exceed
$491,000,000 for fiscal year 1997. The Department of Education shall
use $80,000,000 of the amounts provided for payment of administrative cost allowances to guaranty agencies for fiscal year 1996. For
fiscal year 1997, the Department of Education shall pay administrative costs to guaranty agencies, calculated on the basis of 0.85 percent
of the total principal amount of loans upon which insurance was
issued on or after October 1, 1996: Provided, That such administrative costs shall be paid only on the first $8,200,000,000 of the principal amount of loans upon which insurance was issued on or after
October 1, 1996 by such guaranty agencies, and shall not exceed
a total of $70,000,000. Such payments are to be paid quarterly, and
receipt of such funds and uses of such funds shall be in accordance
with section 428(f) of the Higher Education Act.¿
øNotwithstanding section 458 of the Higher Education Act, the
Secretary may not use funds available under that section or any
other section for subsequent fiscal years for administrative expenses
of the William D. Ford Direct Loan Program. The Secretary may
not require the return of guaranty agency reserve funds during fiscal
year 1997, except after consultation with both the Chairmen and
ranking members of the House Economic and Educational Opportunities Committee and the Senate Labor and Human Resources Committee. Any reserve funds recovered by the Secretary shall be returned
to the Treasury of the United States for purposes of reducing the
Federal deficit.¿
øNo funds available to the Secretary may be used for (1) the hiring
of advertising agencies or other third parties to provide advertising
services for student loan programs prior to January 1, 1997, or (2)
payment of administrative fees relating to the William D. Ford Direct
Loan Program to institutions of higher education.¿
øSEC. 305. None of the funds appropriated in this Act may be
obligated or expended to carry outsection 621(b) of Public Law 101–
589.¿
ø(TRANSFER

(in millions of dollars)

61

GENERAL PROVISIONS
SEC. 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) in order to overcome racial imbalance
in any school or school system, or for the transportation of students
or teachers (or for the purchase of equipment for such transportation)
in order to carry out a plan of racial desegregation of any school
or school system.
SEC. 302. None of the funds contained in this Act shall be used
to require, directly or indirectly, the transportation of any student
to a school other than the school which 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
the Civil Rights Act of 1964. For the purpose of this section an
indirect requirement of transportation of students includes the transportation of students to carry out a plan involving the reorganization
of the grade structure of schools, the pairing of schools, or the clustering of schools, or any combination of grade restructuring, pairing

451

OF FUNDS)¿

øSEC. 306. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control
Act, as amended) which are appropriated for the current fiscal year
for the Department of Education in this Act may be transferred
between appropriations, but no such appropriation shall be increased
by more than 3 percent by any such transfer: Provided, That the
Appropriations Committees of both Houses of Congress are notified
at least fifteen days in advance of any transfer.¿
øSEC. 307. (a) Section 8003(f)(3)(A)(i) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(f)(3)(A)(i)) is amended—¿
ø(1) in the matter preceding subclause (I), by striking ‘‘The Secretary’’ and all that follows through ‘‘greater of—’’ and inserting
the following: ‘‘The Secretary, in conjunction with the local educational agency, shall first determine each of the following:’’;¿
ø(2) in each of subclauses (I) through (III), by striking ‘‘the average’’ each place it appears the first time in each such subclause
and inserting ‘‘The average’’;¿
ø(3) in subclause (I), by striking the semicolon and inserting
a period;¿
ø(4) in subclause (II), by striking ‘‘: or’’ and inserting a period;
and¿
ø(5) by adding at the end the following: ‘‘The local educational
agency shall select one of the amounts determined under subclause
(I), (II), or (III) for purposes of the remaining computations under
this subparagraph.’’.¿
ø(b) The amendments made by subsection (a) shall apply with
respect to fiscal years beginning with fiscal year 1995.¿
øSEC. 308. Section 485(e)(9) of the Higher Education Act of 1965
is amended by striking out ‘‘June 30’’ in the second sentence of
such section and inserting ‘‘August 30’’.¿ (Department of Education
Appropriations Act, 1997.)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102