Full text of Budget of the United States Government - Appendix : Fiscal Year 2008 : Department of Education

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DEPARTMENT OF EDUCATION

EDUCATION

FOR THE

DISADVANTAGED

For carrying out title I of the Elementary and Secondary Education
Act of 1965 (‘‘ESEA’’) and section 418A of the Higher Education Act
of 1965, $16,139,090,000, of which $8,571,383,000 shall become available on July 1, 2008, and shall remain available through September
30, 2009, and of which $7,383,301,000 shall become available on
October 1, 2008, and shall remain available through September 30,
2009 for academic year 2008–2009: Provided, That $6,808,408,000
shall be for basic grants under section 1124: Provided further, That
up to $4,000,000 of these funds shall be available to the Secretary
of Education on October 1, 2007, to obtain annually updated educational-agency-level census poverty data from the Bureau of the Census: Provided further, That $1,365,031,000 shall be for concentration
grants under section 1124A: Provided further, That $3,466,618,000
shall be for targeted grants under section 1125: Provided further,
That $2,269,843,000 shall be for education finance incentive grants
under section 1125A: Provided further, That $500,000,000 shall be
for school improvement grants under section 1003(g): Provided further,
That $9,327,000 shall be to carry out part E of title I.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Obligated balance, end of year ................................

10,803

10,575

12,191

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

5,383
9,313

6,049
8,789

6,082
8,441

87.00

Federal Funds

74.40

86.90
86.93

OFFICE OF ELEMENTARY AND SECONDARY
EDUCATION

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

14,696

14,838

14,523

89.00
90.00

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

14,481
14,696

14,481
14,838

16,139
14,523

Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual

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

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08
00.09
00.10
00.11

2006 actual

2008 est.

Obligations by program activity:
Grants to local educational agencies ...........................
12,519
12,731
13,910
School improvement grants ........................................... ................... ...................
500
Reading first State grants ............................................
1,213
1,084
1,019
Early reading first ..........................................................
103
103
118
Striving readers .............................................................
32
54
100
Even start ......................................................................
112
119 ...................
Literacy through school libraries ...................................
19
19
19
State agency programs ..................................................
431
447
430
Comprehensive school reform ........................................
10
10 ...................
Evaluation ......................................................................
9
9
9
Migrant education projects ............................................
34
34
34

10.00

Total new obligations ................................................

21.40
22.00
22.10

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

14,481
14,696

14,482

14,610

16,139

130
14,481

129 ...................
14,481
16,139

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

23.90
23.95
23.98

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

14,612
14,610
16,139
¥14,482
¥14,610
¥16,139
¥1 ................... ...................

24.40

Unobligated balance carried forward, end of year

129 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
40.35
Appropriation permanently reduced ..........................

7,244
7,098
8,756
¥146 ................... ...................

43.00
55.00

Appropriation (total discretionary) ........................
Advance appropriation ..............................................

7,098
7,383

8,756
7,383

70.00

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

14,481

16,139

72.40
73.10
73.20
73.40
73.45

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Recoveries of prior year obligations ..............................

11,043
10,803
10,575
14,482
14,610
16,139
¥14,696
¥14,838
¥14,523
¥25 ................... ...................
¥1 ................... ...................

16,139
14,523
550
11

14,481
14,838

16,689
14,534

(in millions of dollars)
2006–2007
Academic
Year

2007 est.

2008 est.

SUMMARY OF PROGRAM LEVEL

Program and Financing (in millions of dollars)
Identification code 91–0900–0–1–501

2007 est.

Enacted/requested:
Budget Authority .....................................................................
14,481
14,481
Outlays ....................................................................................
14,696
14,838
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

2007–2008
Academic
Year

2008–2009
Academic
Year

New Budget Authority ..................................................................
Advance appropriation ................................................................

7,098
7,383

8,756
7,383

Total program level ........................................................

14,481

16,139

Change in advance appropriation from the previous year ........

Note: Additional authorizing language is sought for
$16,105,163,000 in this account.
Grants to local educational agencies.—Funds are allocated
through four formulas—Basic Grants, Concentration Grants,
Targeted Grants and Education Finance Incentive Grants—
for local programs that provide extra academic support to
help raise the achievement of eligible students in high-poverty
schools or, in the case of schoolwide programs, help all students in high-poverty schools to meet challenging State academic standards. States must annually assess participating
students in at least reading, mathematics, and science, and
school districts must identify for improvement, and provide
assistance to, schools that for two consecutive years do not
make adequate yearly progress toward helping all groups of
students reach the proficient level on the State assessments
in reading and mathematics. Districts must provide students
attending such schools the choice of attending another public
school that is not identified for improvement. After three or
more years of a school not making adequate progress, students who remain in the school are permitted to obtain supplemental educational services from a public- or private-sector
provider. Schools that do not improve are subject to progressively stronger corrective actions and, after six years of not
making adequate yearly progress, reconstitution under a restructuring plan. 2008 funds would be expended under a reauthorization proposal to expand the benefits of the program
to more high school students, refine accountability systems,
include science in accountability determinations, and give students in low-performing schools more options.
School improvement grants.—Funds would support grants
to States to assist schools and districts identified as in need
313

314

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

EDUCATION

FOR THE

THE BUDGET FOR FISCAL YEAR 2008

DISADVANTAGED—Continued

EDUCATION

of improvement because they have not met their student
achievement goals for at least two consecutive years. Activities may include the development and implementation of
school improvement plans, professional development for teachers and staff, corrective actions such as instituting a new
curriculum, and the provision of public school choice and supplemental educational services.
Reading first State grants.—Funds provide assistance to
State and local educational agencies in establishing reading
programs for students in grades K–3 that are grounded in
scientifically based reading research, in order to ensure that
every student can read at grade level or above by the end
of third grade.
Early reading first.—Funds provide assistance to support
local efforts, through competitive grants, to enhance the
school readiness of young children, particularly those from
low-income families, through scientific, research-based strategies and professional development that are designed to enhance the verbal skills, phonological awareness, letter knowledge, pre-reading skills, and early language development of
children ages three through five. For the reauthorization of
ESEA, the Department is proposing to strengthen partnerships between preschool providers and institutions of higher
education that provide professional development to early
childhood educators.
Striving readers.—Funds support the development, implementation, and evaluation of scientifically based reading
interventions for middle school or high school students reading significantly below grade level. The program complements
the Reading First program, which improves reading in elementary schools.
Literacy through school libraries.—Funds support competitive grants to local educational agencies to provide students
with increased access to up-to-date school library materials
and certified professional library media specialists.
State agency migrant program.—Funds support formula
grants to States for educational services to children of migratory farmworkers and fishers, with resources and services
focused on children who have moved within the past 36
months.
State agency neglected and delinquent program.—Funds
support formula grants to States for educational services to
children and youth under age 21 in State neglected, delinquent, or adult correction facilities.
Evaluation.—Funds support a series of impact studies designed to identify effective reading interventions in Title I
and studies of the implementation of key No Child Left Behind Act requirements including assessments, accountability
systems, school improvement requirements, public school
choice, and supplemental educational services.
Migrant education projects.—Funds support grants to institutions of higher education and other nonprofit agencies that
assist migrant students to earn a high school equivalency
certificate or to complete their first year of college.

FOR THE

DISADVANTAGED

(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 91–0900–2–1–501

2006 actual

2007 est.

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

125
125
250
50

10.00

Total new obligations ................................................ ................... ...................

550

22.00
23.95

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

550
¥550

Obligations by program activity:
00.01 Math now for elementary school students ....................
00.02 Math now for middle school students ..........................
00.03 Promise scholarships .....................................................
00.04 Opportunity scholarships ...............................................

24.40

2008 est.

Unobligated balance carried forward, end of year ................... ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................

550

73.10
73.20

Change in obligated balances:
Total new obligations .................................................... ................... ...................
Total outlays (gross) ...................................................... ................... ...................

550
¥11

74.40

Obligated balance, end of year ................................ ................... ...................

539

86.90

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

89.00
90.00

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

550
11

The resources in this schedule are proposed for later transmittal under proposed legislation to revise and reauthorize
programs currently authorized under the Elementary and Secondary Education Act.
Math now for elementary school students.—Funds would
support competitive grants to improve instruction in mathematics for students in kindergarten through 6th grade
through such activities as professional development, diagnostic assessments, and curriculum implementation.
Math now for middle school students.—Funds would support competitive grants to improve mathematics instruction
for middle school students whose achievement is significantly
below grade level.
Promise scholarships.—Funds would support formula grants
to States for scholarships to enable low-income students enrolled in persistently low-performing schools to attend a private or out-of-district public school or to receive intensive,
sustained tutoring assistance.
Opportunity scholarships.—Funds would support competitive grants to support local efforts to enable low-income students enrolled in persistently low-performing schools to attend
a private or out-of-district public school or to receive intensive,
sustained tutoring assistance.
Object Classification (in millions of dollars)

Object Classification (in millions of dollars)
Identification code 91–0900–0–1–501

24.0
25.1
25.2
25.3
25.7
41.0
99.9

Direct obligations:
Printing and reproduction ..............................................
Advisory and assistance services ..................................
Other services ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Operation and maintenance of equipment ...................
Grants, subsidies, and contributions ............................
Total new obligations ................................................

2006 actual

2
5
58

Identification code 91–0900–2–1–501
2007 est.

2
7
46

3
4
5
6 ................... ...................
14,408
14,551
16,084
14,482

14,610

16,139

2007 est.

2008 est.

25.1
25.2
41.0

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

3
1
546

99.9

Total new obligations ................................................ ................... ...................

550

2008 est.

2
7
41

2006 actual

IMPACT AID
For carrying out programs of financial assistance to federally affected schools authorized by title VIII of the Elementary and Sec-

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

DEPARTMENT OF EDUCATION
ondary Education Act of 1965, $1,228,100,000, of which
$1,091,867,000 shall be for basic support payments under section
8003(b), $49,466,000 shall be for payments for children with disabilities under section 8003(d), $17,820,000 shall be for construction under
section 8007(b) and shall remain available through September 30,
2009, $64,350,000 shall be for Federal property payments under section 8002, and $4,597,000, to remain available until expended, shall
be for facilities maintenance under section 8008: Provided, That for
purposes of computing the amount of a payment for an eligible local
educational agency under section 8003(a) for school year 2007–2008,
children enrolled in a school of such agency that would otherwise
be eligible for payment under section 8003(a)(1)(B) of such Act, but
due to the deployment of both parents or legal guardians, or a parent
or legal guardian having sole custody of such children, or due to
the death of a military parent or legal guardian while on active
duty (so long as such children reside on Federal property as described
in section 8003(a)(1)(B)), are no longer eligible under such section,
shall be considered as eligible students under such section, provided
such students remain in average daily attendance at a school in the
same local educational agency they attended prior to their change
in eligibility status.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0102–0–1–501

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Basic support payments ................................................
00.02 Supplemental payments for children with disabilities

1,092
49

00.91
01.01
02.01
03.01

1,141
5
47
64

on local educational agencies that educate them. The property
on which the children live and their parents work is exempt
from local property taxes, denying local educational agencies
access to the primary source of revenue used by most communities to finance education.
Basic support payments.—Payments will be made on behalf
of approximately 1.0 million federally connected students enrolled in about 1,260 local educational agencies to assist them
in meeting their operation and maintenance costs. Average
per-student payments will be approximately $1,100.
Payments for children with disabilities.—Payments in addition to those provided under the Individuals with Disabilities
Education Act will be provided on behalf of approximately
58,000 federally connected students with disabilities in about
900 local educational agencies. Average per-student payments
will be approximately $850.
Facilities maintenance.—Funds will be used to provide
emergency repairs for school facilities that serve military dependents and are owned by the Department of Education.
Funds will be also used to transfer the facilities to local
educational agencies.
Construction.—Approximately 20 construction grants will be
awarded competitively to the highest need impact aid districts
for emergency repairs and modernization of school facilities.
Payments for Federal property.—Payments will be made to
approximately 200 local educational agencies in which real
property owned by the Federal Government represents 10
percent or more of the assessed value of real property in
the local educational agency.

1,141
5
18
64

Subtotal, payments for federally connected children
Facilities maintenance ...................................................
Construction ...................................................................
Payments for Federal property .......................................

10.00

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

1,257

1,228

21.40
22.00

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

35
1,229

7
1,257

7
1,228

23.90
23.95

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

1,264
¥1,257

1,235
¥1,228

24.40

Unobligated balance carried forward, end of year

1,241
1,257
1,228
¥12 ................... ...................

43.00

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

1,229

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

379

164

165

86.90
86.93

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

1,069
72

1,128
344

1,087
140

87.00

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

1,141

1,472

1,227

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

1,229
1,141

1,257
1,472

1,228
1,227

1,257

1,228

264
379
164
1,257
1,257
1,228
¥1,141
¥1,472
¥1,227
¥1 ................... ...................

Note: Additional authorizing language is sought for all of
the resources requested in this account.
Impact Aid helps to replace the lost local revenue that
would otherwise be available to educate federally connected
children. The presence of certain students living on Federal
property, such as students who are military dependents or
who reside on Indian lands, can place a financial burden

315

SCHOOL IMPROVEMENT PROGRAMS
For carrying out school improvement activities authorized by title
II, part B of title IV, subpart 9 of part D of title V, and parts
A and B of title VI of the Elementary and Secondary Education
Act of 1965 (‘‘ESEA’’); the McKinney-Vento Homeless Assistance Act;
section 203 of the Educational Technical Assistance Act of 2002; the
Compact of Free Association Amendments Act of 2003; and the Civil
Rights Act of 1964, $4,698,276,000, of which $3,158,151,000 shall
become available on July 1, 2008, and remain available through September 30, 2009, and of which $1,435,000,000 shall become available
on October 1, 2008, and shall remain available through September
30, 2009, for academic year 2008–2009: Provided, That $411,630,000
shall be for State assessments and related activities authorized under
sections 6111 and 6112 of the ESEA: Provided further, That
$56,256,000 shall be available to carry out section 203 of the Educational Technical Assistance Act of 2002: Provided further, That
$23,755,000 shall be available to carry out part D of title V of the
ESEA: Provided further, That no funds appropriated under this heading may be used to carry out section 5494 under the ESEA: Provided
further, That $18,001,000 shall be available to carry out the Supplemental Education Grants program for the Federated States of Micronesia and for the Republic of the Marshall Islands: Provided further,
That up to 5 percent of these amounts may be reserved by the Federated States of Micronesia and the Republic of the Marshall Islands
to administer the Supplemental Education Grants programs and to
obtain technical assistance, oversight and consultancy services in the
administration of these grants and to reimburse the United States
Departments of Labor, Health and Human Services, and Education
for such services.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–1000–0–1–501

00.01
00.02
00.03
00.04
00.05
00.06

Obligations by program activity:
Improving teacher quality State grants ........................
Early childhood educator professional development .....
Mathematics and science partnerships ........................
Educational technology State grants ............................
21st Century community learning centers ....................
State grants for innovative programs ...........................

2006 actual

2,887
15
182
273
981
99

2007 est.

2008 est.

2,907
2,787
15 ...................
184
182
279 ...................
991
981
99 ...................

316

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

THE BUDGET FOR FISCAL YEAR 2008

SCHOOL IMPROVEMENT PROGRAMS—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 91–1000–0–1–501

00.07
00.08
00.09
00.10
00.11
00.12
00.13
00.14
00.15
00.16
00.17

2006 actual

2007 est.

2008 est.

Javits gifted and talented education ............................
Foreign language assistance .........................................
State assessments .........................................................
Education for homeless children and youth .................
Education for Native Hawaiians ....................................
Alaska Native education equity .....................................
Training and advisory services ......................................
Rural education .............................................................
Supplemental education grants ....................................
Comprehensive centers ..................................................
Safe and drug-free schools and communities national
programs ...................................................................

10
22
412
62
34
34
7
169
18
56

10 ...................
22
24
420
412
62
62
34 ...................
34 ...................
7
7
169
169
18
18
56
56

5 ...................

10.00

Total new obligations ................................................

5,266

5,312

21.40
22.00
22.10

56
5,256

47 ...................
5,265
4,698

4,698

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

23.90
23.95

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

5,313
¥5,266

5,312
¥5,312

4,698
¥4,698

24.40

Unobligated balance carried forward, end of year

47 ................... ...................

3,874
3,830
3,263
¥53 ................... ...................

43.00
55.00

Appropriation (total discretionary) ........................
Advance appropriation ..............................................

3,821
1,435

3,830
1,435

3,263
1,435

70.00

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

5,256

5,265

4,698

72.40
73.10
73.20
73.40
73.45

74.40

Obligated balance, end of year ................................

6,712

6,394

5,839

86.90
86.93

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

760
5,037

966
4,664

955
4,298

87.00

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

5,797

5,630

5,253

89.00
90.00

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

5,256
5,797

5,265
5,630

efforts may include the integration of teaching methods based
on scientifically-based research and technology into the curriculum.
Other Activities:
21st Century community learning centers.—Funds support
formula grants to States, which award subgrants to communities to provide academic enrichment opportunities and related services to students, primarily students who attend
high-poverty schools, and their families during before-school,
after-school, weekend, and summer hours.
Foreign language assistance.—Funds support competitive
grants to States and school districts to create innovative
model programs providing for the establishment, improvement, or expansion of critical foreign language study for elementary and secondary school students.
State assessments.—Funds support formula grants to States
to develop and implement the assessments, and related accountability efforts, that States use to test children in reading, mathematics, and science.
Education for homeless children and youth.—Funds support
formula grants to States to provide educational and support
services that enable homeless children and youth to attend
and achieve success in school.
Training and advisory services.—Funds support grants to
regional equity assistance centers that provide technical assistance to school districts in addressing equity in education
related to issues of race, gender, and national origin.
Rural education.—Funds support formula grants under two
programs: Small, Rural Schools Achievement and Rural and
Low-Income Schools. The Small, Rural Schools Achievement
program provides rural local educational agencies with small
enrollments with additional formula funds and flexibility in
the use of other Federal formula funds. Funds under the
Rural and Low-Income Schools program, which targets rural
local educational agencies that serve concentrations of poor
students, are allocated by formula to States, which in turn
allocate funds to eligible local educational agencies within
the States.
Supplemental education grants.—Funds support grants to
the Federated States of Micronesia and to the Republic of
the Marshall Islands in place of grant programs discontinued
by the Compact of Free Association Amendments Act of 2003.
Comprehensive centers.—Funds support 21 comprehensive
centers that focus on building State capacity to help school
districts and schools meet the requirements of the No Child
Left Behind Act.

4,698
5,253

7,286
6,712
6,394
5,266
5,312
4,698
¥5,797
¥5,630
¥5,253
¥42 ................... ...................
¥1 ................... ...................

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

SUMMARY OF PROGRAM LEVEL
(in millions of dollars)
2006–2007
Academic
Year

2007–2008
Academic
Year

2008–2009
Academic
Year

New Budget Authority ..................................................................
Advance Appropriation ................................................................

3,820
1,435

3,825
1,435

5,255

5,260

Note: Additional authorizing language is sought for
$4,614,906,000 in this account.
Improving teacher quality:
Improving teacher quality State grants.—Funds support
State and school district activities to prepare, train, and recruit high-quality teachers to improve student achievement.
Mathematics and science partnerships.—Funds support
State and local efforts to improve students’ academic achievement in mathematics and science by promoting strong teaching skills for elementary and secondary school teachers. These

2008 est.

14
23
5,275

12
21
4,665

99.9

5,266

5,312

4,698

Total new obligations ................................................

4,698

Change in advance appropriation over previous year ................

2007 est.

13
22
5,231

3,263
1,435

Total program level ........................................................

2006 actual

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

INDIAN EDUCATION
For expenses necessary to carry out, to the extent not otherwise
provided, title VII, part A of the Elementary and Secondary Education
Act of 1965, $118,683,000.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

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

Obligations by program activity:
00.01 Grants to local educational agencies ...........................

2006 actual

2007 est.

2008 est.

OFFICE OF INNOVATION AND IMPROVEMENT
Federal Funds

DEPARTMENT OF EDUCATION

317

19
4

10.00

Total new obligations ................................................

119

¥13 ................... ...................

Obligated balance, end of year ................................

6 ................... ...................

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

89.00
90.00

19
4

Adjustments in expired accounts (net) .........................

86.93

Special programs for Indian children ...........................
National activities ..........................................................

73.40
74.40

00.02
00.03

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
1
6 ...................

119

119
¥119

120
119
119
¥1 ................... ...................

43.00

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

119

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

119

138

EDUCATION REFORM
Program and Financing (in millions of dollars)

140

Identification code 91–0500–0–1–501

Outlays (gross), detail:
86.90 Outlays from new discretionary authority .....................
86.93 Outlays from discretionary balances .............................

6
114

6
115

6
111

87.00

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

120

121

117

89.00
90.00

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

119
120

119
121

119
117

Object Classification (in millions of dollars)
2006 actual

2007 est.

2008 est.

25.1
25.2
25.7
41.0

Direct obligations:
Advisory and assistance services ..................................
Other services ................................................................
Operation and maintenance of equipment ...................
Grants, subsidies, and contributions ............................

1
2
1
115

99.9

Total new obligations ................................................

119

Program and Financing (in millions of dollars)

Change in obligated balances:
72.40 Obligated balance, start of year ...................................
73.20 Total outlays (gross) ......................................................

2007 est.

2008 est.

64
4 ...................
¥17
¥4 ...................
¥43 ................... ...................

2006 actual

20
¥1

Obligated balance, end of year ................................

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

86.93

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

89.00
90.00

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

Programs in this account have been transferred to the
School Improvement Programs account or discontinued.
Amounts in this schedule reflect balances that are spending
out from prior-year appropriations.
f

OFFICE OF INNOVATION AND IMPROVEMENT
Federal Funds
INNOVATION

AND

IMPROVEMENT

For carrying out activities authorized by part G of title I, parts
C and D of title II, and parts B, C, and D of title V of the Elementary
and Secondary Education Act of 1965, $897,018,000: Provided, That
from funds for subpart 4, part C of title II, up to 3 percent shall
be available to the Secretary for technical assistance and dissemination of information: Provided further, That $36,611,000 shall be for
subpart 2 of part B of title V: Provided further, That $257,108,000
shall be available to carry out part D of title V of the ESEA, of
which $199,000,000 of the funds for subpart 1 shall be for competitive
grants to local educational agencies, including charter schools that
are local educational agencies, or States, or partnerships of (1) a
local educational agency, a State, or both and (2) at least one nonprofit organization to develop and implement performance-based
teacher and principal compensation systems in high-need schools: Provided further, That such performance-based compensation systems
must consider gains in student academic achievement as well as classroom evaluations conducted multiple times during each school year
among other factors and provide educators with incentives to take
on additional responsibilities and leadership roles: Provided further,
That up to five percent of such funds for competitive grants shall
be available for technical assistance, training, peer review of applications, program outreach and evaluation activities.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

READING EXCELLENCE

Identification code 91–0011–0–1–501

2006 actual

Change in obligated balances:
72.40 Obligated balance, start of year ...................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts (net) .........................
74.40

Note: Additional authorizing language is sought for all of
the resources requested in this account.
The Indian Education programs support the efforts of local
educational agencies and tribal schools to improve 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 assist
participating students in meeting the same academic standards as all other students. In 2006, the Department made
1,196 formula grants to local educational agencies and tribal
schools serving more than 469,000 students.
Special programs for Indian Children.—The Department
makes competitive awards for demonstration projects in early
childhood education and college preparation, as well as professional development grants for training Native American
teachers and administrators for employment in school districts with concentrations of Indian students.
National activities.—Funds support research, evaluation,
data collection, and related activities.

Identification code 91–0101–0–1–501

6 ...................

This program has been replaced by the Reading First program in the Education for the Disadvantaged account.
Amounts in these schedules reflect balances that are spending
out from prior-year appropriations.

146
140
138
119
119
119
¥120
¥121
¥117
¥5 ................... ...................
140

2007 est.

2008 est.

6 ...................
¥6 ...................

Program and Financing (in millions of dollars)
Identification code 91–0204–0–1–501

Obligations by program activity:

2006 actual

2007 est.

2008 est.

318

OFFICE OF INNOVATION AND IMPROVEMENT—Continued
Federal Funds—Continued

INNOVATION

AND

THE BUDGET FOR FISCAL YEAR 2008

IMPROVEMENT—Continued

Summary of Budget Authority and Outlays

Program and Financing (in millions of dollars)—Continued

(in millions of dollars)
2006 actual

Identification code 91–0204–0–1–501

00.01
00.02
00.03
00.04
00.05
00.06
00.07

2006 actual

2007 est.

2008 est.

4
15
44
21
120
15
17

98
199
15
15
44
44
21 ...................
120
50
15 ...................
17 ...................

00.08
00.09
00.10
00.11
00.12
00.13
00.14
00.15
00.16
00.17
00.18
00.19
00.20
00.21
00.22
00.23
00.24
00.25
00.26
00.27

Teacher incentive fund ..................................................
Troops-to-teachers .........................................................
Transition to teaching ...................................................
National writing project .................................................
Teaching American history ............................................
School leadership ...........................................................
Advanced credentialing .................................................
School choice and flexibility:
Charter schools grants ..............................................
Credit enhancement for charter school facilities
Voluntary public school choice .................................
Magnet schools assistance .......................................
Advanced placement ......................................................
School dropout prevention .............................................
Close Up fellowships .....................................................
Ready-to-learn-television ...............................................
Academies for American history and civics ..................
FIE programs of national significance ..........................
Reading is fundamental/Inexpensive book distribution
Star schools ...................................................................
Ready to teach ...............................................................
Exchanges with historic whaling and trading partners
Excellence in economic education .................................
Mental health integration in schools ............................
Foundations for learning ...............................................
Arts in education ...........................................................
Parental information and resource centers ...................
Womens educational equity ...........................................

215
37
26
107
32
5
1
24
2
12
25
15
11
9
1
5
1
35
39
3

01.00
09.01
09.02

Total direct program .................................................
DC School Choice ...........................................................
Reimbursable program ..................................................

841
935
897
14
14
15
1 ................... ...................

10.00

Total new obligations ................................................

21.40
22.00

856

949

912

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year ...................
New budget authority (gross) ........................................
952

95
855

1
912

23.90
23.95
23.98

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

24.40

Unobligated balance carried forward, end of year

215
37
26
107
122
...................
...................
24
...................
33
25
...................
...................
...................
...................
...................
...................
...................
...................
...................

952
950
913
¥856
¥949
¥912
¥1 ................... ...................
95

946
841
897
¥9 ................... ...................

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

937

841

897

70.00

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

952

855

912

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

1,535

1,196

1,171

86.90
86.93

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

26
889

43
1,245

46
891

87.00

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

915

1,288

937

1,595
1,535
1,196
856
949
912
¥915
¥1,288
¥937
¥1 ................... ...................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.40
Non-Federal sources .............................................

¥1 ................... ...................
¥14
¥14
¥15

88.90

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

¥15

¥14

¥15

89.00
90.00

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

937
900

841
1,274

897
922

2007 est.

Enacted/requested:
Budget Authority .....................................................................
937
841
Outlays ....................................................................................
900
1,274
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

937
900

841
1,274

2008 est.

897
922
25
1

922
923

Note: Additional authorizing language is sought for all of
the resources requested in this account.
Recruiting and training high quality teachers:
Teacher incentive fund.—Funds support the development
of performance-based teacher compensation systems that reward teachers and schools that are raising student achievement and closing the achievement gap.
Troops-to-teachers.—Funds assist eligible members of the
armed forces to obtain certification as teachers and to become
highly qualified teachers.
Transition to teaching.—Funds support competitive grants
to establish programs to recruit and retain mid-career professionals and recent college graduates as teachers in high-need
schools.
Teaching American history.—Funds support competitive
grants to school districts for activities to improve history instruction and provide professional development for teachers
of American history.
Other activities:
Charter schools grants.—Funds support competitive grants
to State educational agencies and charter schools to support
the planning, design, initial implementation, and dissemination of information regarding charter schools. These schools
are created by teachers, parents, and members of the community, and are exempt from certain local, State, and Federal
regulations. A portion of the funding supports State efforts
to assist charter schools in obtaining facilities.
Credit enhancement for charter school facilities.—Funds
support competitive grants to State and local governments,
nonprofit entities, and public and nonprofit consortia, to assist
charter schools in acquiring, leasing, and renovating school
facilities.
Voluntary public school choice.—Funds support competitive
grants to State and local educational agencies to implement
programs that provide students, particularly students who
attend low-performing schools, with expanded public school
choice options.
Magnet schools assistance.—Funds support competitive
grants to local educational agencies to establish and operate
magnet school programs that are part of an approved desegregation plan.
Advanced placement.—Funds support competitive grants to
State educational agencies, local educational agencies, and
national nonprofit educational entities to expand access for
low-income individuals to Advanced Placement (AP) or International Baccalaureate (IB) courses, and grants to States to
pay test fees for low-income students who are enrolled in
AP or IB courses.
Ready-to-learn television.—Funds support the development,
distribution, and production of educational video programming and accompanying materials and services for preschool
and elementary school children and their parents to facilitate
student academic achievement.
FIE programs of national significance.—Funds support nationally significant projects to improve the quality of elementary and secondary education in order to help all children
meet challenging State content and student achievement
standards.

OFFICE OF SAFE AND DRUG-FREE SCHOOLS
Federal Funds

DEPARTMENT OF EDUCATION

Reading is fundamental/Inexpensive book distribution.—
Funds support reading motivation activities, including the distribution of free books to children.

Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)

Object Classification (in millions of dollars)
Identification code 91–0204–0–1–501

2006 actual

2007 est.

Identification code 91–0203–0–1–501

2008 est.

25.1
25.2
41.0

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

2
53
786

3
52
880

5
53
839

99.0
99.0

Direct obligations ..................................................
Reimbursable obligations ..............................................

841
15

935
14

897
15

Obligations by program activity:
Safe and drug-free schools and communities:
00.01
State grants ..............................................................
National programs:
00.02
National activities .................................................
00.03
Alcohol abuse reduction .......................................
00.04
Mentoring program ...............................................

99.9

Total new obligations ................................................

856

949

912

00.91

INNOVATION

Program and Financing (in millions of dollars)
2007 est.

2008 est.

Obligations by program activity:
00.01 Adjunct Teacher Corps ................................................... ................... ...................
01.00

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

10.00

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

25
¥25

Unobligated balance carried forward, end of year ................... ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................

Change in obligated balances:
73.10 Total new obligations .................................................... ................... ...................
73.20 Total outlays (gross) ...................................................... ................... ...................

25
¥1

74.40

Obligated balance, end of year ................................ ................... ...................

2008 est.

346

355

100

138
32
49

171
224
32 ...................
19 ...................

Subtotal, Safe and drug-free schools and communities .....................................................................
Character education ......................................................
Elementary and secondary school counseling ...............
Physical education program ..........................................
Civic education ..............................................................
Literacy program for prisoners ......................................
Reimbursable program ..................................................
Total new obligations ................................................

801

808

21.40
22.00

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

7
800

6 ...................
802
394

23.90
23.95

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

807
¥801

24.40

Unobligated balance carried forward, end of year

6 ................... ...................

737
732
324
¥7 ................... ...................

24.40

2007 est.

10.00

(Legislative proposal, not subject to PAYGO)

2006 actual

01.01
02.01
03.01
04.01
05.01
09.00

AND IMPROVEMENT

Identification code 91–0204–2–1–501

319

43.00
58.00

565
577
24
24
35
35
73
73
29
29
5 ...................
70
70

808
¥808

324
...................
...................
...................
...................
...................
70
394

394
¥394

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

730

732

324

70.00

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

800

802

394

Outlays (gross), detail:
86.90 Outlays from new discretionary authority ..................... ................... ...................

72.40
73.10
73.20
73.40

25
1

74.40

Obligated balance, end of year ................................

1,255

1,202

786

The resources in this schedule are proposed for later transmittal under proposed legislation to revise and reauthorize
programs currently authorized under the Elementary and Secondary Education Act.
Adjunct teacher corps.—Funds would support partnerships
between school districts and appropriate public and/or private
institutions to enable well-qualified professionals to teach specific high-school courses in the core academic subjects, particularly mathematics and science.

86.90
86.93

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

24
812

16
845

7
803

87.00

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

836

861

810

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

¥70

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

730
766

732
791

324
740

89.00
90.00

OFFICE OF SAFE AND DRUG-FREE SCHOOLS
Federal Funds
SAFE SCHOOLS

AND

CITIZENSHIP EDUCATION

For carrying out activities authorized by part A of title IV of the
Elementary and Secondary Education Act of 1965, $324,248,000, of
which $100,000,000 shall become available on July 1, 2008 and remain available through September 30, 2009: Provided, That
$224,248,000 shall be available for subpart 2 of part A of title IV,
of which $10,000,000, to remain available until expended, shall be
for the Project School Emergency Response to Violence program to
provide education-related services to local educational agencies in
which the learning environment has been disrupted due to a violent
or traumatic crisis.

89.00
90.00

1,291
1,255
1,202
801
808
394
¥836
¥861
¥810
¥1 ................... ...................

Note: Additional authorizing language is sought for all of
the resources requested in this account.
Safe and drug-free schools and communities:
State grants.—Funds provide formula grants to State educational agencies to provide local educational agencies with
training, technical assistance, and information regarding effective models for the creation of safe, healthy, drug-free,
and secure schools.
National programs.—Funds support programs and activities
in the areas of (1) emergency management planning, (2) preventing violence and drug use, including student drug testing,
(3) school culture and climate, including character education,
and (4) other needs related to improving students’ learning

320

OFFICE OF SAFE AND DRUG-FREE SCHOOLS—Continued
Federal Funds—Continued

SAFE SCHOOLS

AND

THE BUDGET FOR FISCAL YEAR 2008

CITIZENSHIP EDUCATION—Continued

environment to enable those students to meet challenging
academic standards.
Object Classification (in millions of dollars)
Identification code 91–0203–0–1–501

2006 actual

2007 est.

2008 est.

6
9

7
9

41.0

Direct obligations:
Advisory and assistance services .............................
Other services ............................................................
Other purchases of goods and services from Government accounts .................................................
Grants, subsidies, and contributions ........................

4
712

4
718

4
304

99.0
99.0

Direct obligations ..................................................
Reimbursable obligations ..............................................

731
70

738
70

324
70

99.9

Total new obligations ................................................

801

808

Language acquisition State grants.—This program provides
formula grants to States to improve services for limited
English proficient and immigrant students. States are accountable for demonstrating that limited English proficient
students are learning English and meeting the same high
State standards as all other students. The statute also authorizes national activities including professional development
and evaluation, and requires funding for a national information clearinghouse on English language acquisition.

394

25.1
25.2
25.3

Object Classification (in millions of dollars)
Identification code 91–1300–0–1–501

2006 actual

2007 est.

2008 est.

Direct obligations:
25.5 Research and development contracts ...........................
41.0 Grants, subsidies, and contributions ............................

2
669

2
676

2
669

99.9

671

678

671

Total new obligations ................................................

f
f

OFFICE OF ENGLISH LANGUAGE
ACQUISITION

OFFICE OF SPECIAL EDUCATION AND
REHABILITATIVE SERVICES

Federal Funds
ENGLISH LANGUAGE ACQUISITION

Federal Funds

For carrying out part A of title III of the ESEA, $670,819,000,
which shall become available on July 1, 2008, and shall remain
available through September 30, 2009, except that 6.5 percent of such
amount shall be available on October 1, 2007 and shall remain available through September 30, 2009, to carry out activities under section
3111(c)(1)(C).

SPECIAL EDUCATION

Program and Financing (in millions of dollars)
Identification code 91–1300–0–1–501

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Language acquisition State grants ...............................

671

678

671

10.00

Total new obligations ................................................

671

678

9
669

7 ...................
671
671

671

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

For carrying out the Individuals with Disabilities Education Act,
$11,485,147,000, of which $5,080,559,000 shall become available on
July 1, 2008, and shall remain available through September 30, 2009,
and of which $6,215,200,000 shall become available on October 1,
2008, and shall remain available through September 30, 2009, for
academic year 2008–2009: Provided, That the amount for section
611(b)(2) of the Act shall be equal to the lesser of the amount available
for that activity during fiscal year 2007, increased by the amount
of inflation as specified in section 619(d)(2)(B) of the Act, or the
percentage increase in the funds appropriated under section 611(i)
of the Act.

Program and Financing (in millions of dollars)
Identification code 91–0300–0–1–501

2006 actual

2007 est.

2008 est.

24.40

Unobligated balance carried forward, end of year

671
¥671

7 ................... ...................

676
671
671
¥7 ................... ...................

43.00

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

669

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

671

937
983
805
671
678
671
¥616
¥856
¥624
¥9 ................... ...................
983

805

9,699
381
423

11,285

11,417

10,503

01.01
01.02
01.03
01.04
01.05

Subtotal, State grants ..........................................
National activities:
State personnel development ....................................
Technical assistance and dissemination ..................
Personnel preparation ...............................................
Parent information centers .......................................
Technology and media services ................................

50
49
90
26
38

50
49
90
26
25

Subtotal, National activities .................................

253

240

02.00

Total Direct Program .................................................

11,538

11,670

10,743

10.00

Total new obligations ................................................

11,538

11,670

10,743

21.40
22.00

678
¥678

10,598
381
438

01.91

678
¥671

10,481
381
423

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

67
11,641

170
11,549

49
10,694

23.90
23.95

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

11,708
¥11,538

11,719
¥11,670

10,743
¥10,743

24.40

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

Obligations by program activity:
State grants:
00.01
Grants to States ........................................................
00.02
Preschool grants ........................................................
00.03
Grants for infants and families ................................
00.91

23.90
23.95

Unobligated balance carried forward, end of year

170

852

Outlays (gross), detail:
86.90 Outlays from new discretionary authority .....................
86.93 Outlays from discretionary balances .............................

8
608

34
822

34
590

87.00

616

856

624

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

669
616

671
856

671
624

Note: Additional authorizing language is sought for all of
the resources requested in this account.

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

49 ...................

6,346
6,125
5,270
¥118 ................... ...................
6,228

6,125

5,270

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

DEPARTMENT OF EDUCATION
55.00

Advance appropriation ..............................................

5,413

5,424

70.00

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

11,641

11,549

10,694

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

9,532
9,212
9,345
11,538
11,670
10,743
¥11,836
¥11,537
¥10,771
¥22 ................... ...................

321

Object Classification (in millions of dollars)
Identification code 91–0300–0–1–501

2006 actual

2007 est.

2008 est.

Direct obligations:
25.2 Other services ................................................................
41.0 Grants, subsidies, and contributions ............................

4
11,534

4
11,666

4
10,739

99.9

11,538

11,670

10,743

Total new obligations ................................................
f

9,212

9,345

9,317

REHABILITATION SERVICES
Outlays (gross), detail:
86.90 Outlays from new discretionary authority .....................
86.93 Outlays from discretionary balances .............................

3,032
8,804

4,136
7,401

4,135
6,636

87.00

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

11,836

11,537

10,771

89.00
90.00

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

11,641
11,836

11,549
11,537

10,694
10,771

AND

DISABILITY RESEARCH

For carrying out, to the extent not otherwise provided, the Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and the
Helen Keller National Center Act, $3,184,263,000, of which
$2,837,160,000 shall be for grants for vocational rehabilitation services
under Title I of the Rehabilitation Act.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
SUMMARY OF GRANTS TO STATES PROGRAM LEVEL

Identification code 91–0301–0–1–506

[In millions of dollars]
2006–2007

2007–2008

2008–2009

academic
year

Current Budget Authority ............................................................
Advance appropriation ................................................................

$5,159
5,424

$5,068
5,424

4,277
6,215

Total program level ............................................................

10,583

10,492

Change in advance appropriation from the previous year ........

+11

+791

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.
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 goal of both of these programs is to improve results
for children with disabilities by assisting State and local educational agencies to provide children with disabilities with
access to high quality education that will help them meet
challenging standards and prepare them for employment and
independent living.
Grants for infants and families.—Formula grants are provided to assist States to implement statewide systems of coordinated, comprehensive, multi-disciplinary interagency programs to provide early intervention services to children with
disabilities, birth through age 2, and their families.
The goal of this program is to help States provide a comprehensive system of early intervention services that will enhance child and family outcomes.
National activities.—These activities include personnel
preparation, technical assistance, and other activities to support State efforts to improve results for children with disabilities under the State Grants programs.
The goal of National Activities is to link States, school
systems, and families to best practices to improve results
for infants, toddlers, and children with disabilities.
Performance data related to program goals include:
2002–2003
actual

2003–2004
actual

2004–2005
actual

Status of Exiting Students

Percent of students with disabilities aged 14–21 leaving
school:
Graduated with a diploma .....................................................
Graduated through certification .............................................
Dropped out of school/not known to continue .......................
Reached maximum age for services/other .............................

Obligations by program activity:
Vocational rehabilitation State grants ..........................
Client assistance State grants ......................................
Training ..........................................................................
Demonstration and training programs ..........................
Migrant and seasonal farmworkers ...............................
Recreational programs ...................................................
Protection and advocacy of individual rights ...............
Projects with industry ....................................................
Supported employment State grants .............................
Independent living .........................................................
Program improvement ....................................................
Evaluation ......................................................................
Helen Keller National Center .........................................
National Institute on Disability and Rehabilitation Research ........................................................................
00.15 Assistive technology .......................................................
00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08
00.09
00.10
00.11
00.12
00.13
00.14

2006 actual

2007 est.

2008 est.

2,720
12
38
8
2
3
16
20
30
130
1
1
9

2,837
12
38
7
2
3
16
20
30
130
1
1
9

2,837
12
38
7
...................
...................
16
...................
...................
130
1
2
8

107
29

107
30

107
26

01.00
09.01

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

3,126
2

3,243
2

3,184
2

10.00

Total new obligations ................................................

3,128

3,245

3,186

22.00
23.95

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

3,127
¥3,128

3,244
¥3,245

3,186
¥3,186

409
405
310
¥4 ................... ...................

Appropriation (total discretionary) ........................
405
405
310
Spending authority from offsetting collections:
Offsetting collections (cash) ................................ ...................
2
2
Change in uncollected customer payments from
Federal sources (unexpired) .............................
2 ................... ...................
2

60.00

Spending authority from offsetting collections
(total discretionary) ..........................................
Mandatory:
Appropriation .............................................................

2,720

2,837

2,874

70.00

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

3,127

3,244

3,186

72.40
73.10
73.20
73.40
74.00

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Change in uncollected customer payments from Federal sources (unexpired) ............................................

1,393
1,396
1,086
3,128
3,245
3,186
¥3,116
¥3,555
¥3,218
¥7 ................... ...................
¥2 ................... ...................

74.40
51.9
12.7
33.6
1.8

54.2
13.1
30.9
1.8

54.4
15.5
28.3
1.8

Obligated balance, end of year ................................

1,396

1,086

1,054

86.90
86.93
86.97

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

81
356
1,920

285
422
1,986

218
142
2,012

322

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

REHABILITATION SERVICES

AND

THE BUDGET FOR FISCAL YEAR 2008

DISABILITY RESEARCH—Continued

Program and Financing (in millions of dollars)—Continued
Identification code 91–0301–0–1–506

2006 actual

2007 est.

2008 est.

86.98

Outlays from mandatory balances ................................

759

862

846

87.00

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

3,116

3,555

3,218

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources ...................
¥2
¥2
Against gross budget authority only:
88.95
Change in uncollected customer payments from
Federal sources (unexpired) ..................................
¥2 ................... ...................

89.00
90.00

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

3,125
3,116

3,242
3,553

3,184
3,216

Vocational rehabilitation State grants.—The basic State
grants program provides Federal matching funds to State vocational rehabilitation (VR) agencies to assist individuals with
physical or mental impairments to become gainfully employed. Services are tailored to the specific needs of the individual. Priority is given to serving those with the most significant disabilities. Current law requires that between 1.0 percent and 1.5 percent of the funds appropriated for the VR
State grants program be set aside for Grants for Indians.
The program performance measures for this program are
based on State VR agency performance indicators developed
pursuant to Section 106 of the Rehabilitation Act. One of
these indicators measures the percentage of general and combined State VR agencies that assist at least 55.8 percent
of individuals receiving services to achieve an employment
outcome. In 2005, 71 percent of the agencies met this performance criterion. Another indicator measures the percentage of
general and combined State VR agencies that assist at least
85 percent of individuals with employment outcomes to
achieve competitive employment. In 2005, 95 percent of general and combined agencies met this performance criterion.
This outcome data are based on the approximately 356,229
individuals whose service records were closed in 2005 after
receiving services.
The 2008 Budget reflects a multi-year Administration effort
to reform job training programs, target resources to programs
with documented effectiveness, and eliminate funding for duplicative and overlapping programs. Consistent with this
crosscutting reform, the budget eliminates funding for three
programs (Supported Employment State Grants, Projects with
Industry, and the Migrant and Seasonal Farmworkers program). The services provided by these programs can continue
to be provided by the larger Vocational Rehabilitation State
Grants program.
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 and
to upgrade the skills of those already employed.
Demonstration and training programs.—Grants are made
for programs that expand and improve the provision of rehabilitation services or that further the purposes of the Rehabilitation Act.
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.
Independent living.—Grants are awarded to States and nonprofit agencies to assist individuals with significant disabilities in their achievement of self-determined independent living goals. Grants are also awarded to provide support services
to older blind individuals to increase their ability to care
for their own needs.
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 goals of the Rehabilitation Act. Examples of program improvement activities include technical assistance, dissemination, and performance
measurement activities.
Evaluation.—Studies are conducted to evaluate the impact
and effectiveness of various programs authorized under the
Rehabilitation Act.
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 the conduct
and dissemination of research and development aimed at improving the lives of individuals with disabilities. The Institute
also promotes the development and utilization of new technologies to assist these individuals in achieving greater independence and integration into society.
Assistive technology.—Formula grants are made to States
to implement comprehensive Statewide programs designed to
maximize the ability of individuals with disabilities of all
ages to obtain assistive technology. States conduct activities
that include alternative financing programs, device reutilization programs, device loan programs, and device demonstrations. Funds also support national technical assistance activities.
Object Classification (in millions of dollars)
Identification code 91–0301–0–1–506

2006 actual

2007 est.

2008 est.

25.1
25.2
41.0

9
1
3,115

10
1
3,231

99.0
99.0
99.5

Direct obligations ..................................................
Reimbursable obligations ..............................................
Below reporting threshold ..............................................

3,125
2
1

3,242
3,184
2
2
1 ...................

99.9

Total new obligations ................................................

3,128

3,245

11
1
3,172

3,186

SPECIAL INSTITUTIONS

FOR

PERSONS WITH DISABILITIES

AMERICAN PRINTING HOUSE

FOR THE

BLIND

For carrying out the Act of March 3, 1879, as amended (20 U.S.C.
101 et seq.), $17,573,000.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0600–0–1–501

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Direct program activity ..................................................

10.00

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

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

DEPARTMENT OF EDUCATION

22.00
23.95

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

87.00
18
¥18

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

89.00
90.00

18
¥18

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

56
57

56
54

56
56

18
¥18

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

Change in obligated balances:
72.40 Obligated balance, start of year ...................................
73.10 Total new obligations ....................................................
73.20 Total outlays (gross) ......................................................

5
18
¥19

4
18
¥20

2
18
¥18

74.40

Obligated balance, end of year ................................

86.90
86.93

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

14
5

17
3

17
1

87.00

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

89.00
90.00

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

18
19

18
20

18
18

This residential program 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
2006, the Federal appropriation represented 80 percent of
the Institute’s operating budget. The request includes funds
for a variety of construction projects. The request also includes funds for the Endowment Grant program.

The Federal appropriation supports the production and distribution 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
2006, the portion of the Federal appropriation allocated to
educational materials represented approximately 68.6 percent
of the Printing House’s total sales. The full appropriation
represented approximately 68.8 percent of the Printing
House’s total budget.

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.), $56,262,000, of which $913,000 shall be for construction and
shall remain available until expended: Provided, That from the total
amount available, the Institute may at its discretion use funds for
the endowment program as authorized under section 207.

Program and Financing (in millions of dollars)
2006 actual

GALLAUDET UNIVERSITY
For the Kendall Demonstration Elementary School, the Model Secondary School for the Deaf, and the partial support of Gallaudet
University and related activities under titles I and II of the Education
of the Deaf Act of 1986 (20 U.S.C. 4301, et seq.), $106,998,000, of
which $600,000 shall be for the Secretary of Education to carry out
section 205 of the Act: Provided, That from the total amount available
to the University, the University may at its discretion use funds for
the endowment program as authorized under section 207.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0602–0–1–502

2006 actual

2007 est.

2008 est.

106
1

10.00

Total new obligations ................................................

107

22.00
23.95

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

107
¥107

2007 est.

2008 est.

Obligations by program activity:
00.01 Operations ......................................................................
00.02 Construction ...................................................................

55
1

10.00

108
107
107
¥1 ................... ...................

43.00

Identification code 91–0601–0–1–502

Obligations by program activity:
00.01 Operations ......................................................................
107
107
00.02 Evaluation ...................................................................... ................... ...................

NATIONAL TECHNICAL INSTITUTE

323

107

72.40
73.10
73.20

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

107

Change in obligated balances:
Obligated balance, start of year ................................... ................... ...................
Total new obligations ....................................................
107
107
Total outlays (gross) ......................................................
¥107
¥101

6
107
¥107

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

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
23.95 Total new obligations ....................................................
New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
40.35
Appropriation permanently reduced ..........................
43.00

56
¥56

74.40

86.90
86.93

Obligated balance, end of year ................................ ...................

Outlays (gross), detail:
Outlays from new discretionary authority .....................
107
101
Outlays from discretionary balances ............................. ................... ...................

101
6

87.00

57
56
56
¥1 ................... ...................

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

2
56
¥57

1
56
¥54

3
56
¥56

74.40

Obligated balance, end of year ................................

86.90
86.93

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

55
2

52
2

53
3

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

107

101

107

89.00
90.00

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

107
107

107
101

107
107

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

324

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

THE BUDGET FOR FISCAL YEAR 2008
00.05
00.06

GALLAUDET UNIVERSITY—Continued

School for the Deaf serves high school age students who are
deaf. 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 2006, the appropriation for Gallaudet represented 63.3
percent of the total revenue for university-level programs and
97.8 percent of the revenue related to the elementary and
secondary schools. In addition, the University receives other
Federal funds such as student financial aid, vocational rehabilitation, Endowment Grant program income, and competitive grants and contracts. The request includes $600,000 for
the Secretary of Education to conduct a study that is intended
to assist Galluadet in improving its performance on key outcome measures. The request also includes funds for the Endowment Grant program.

Identification code 91–0602–0–1–502

25.1
41.0
99.9

2007 est.

Direct obligations:
Advisory and assistance services .................................. ................... ...................
Grants, subsidies, and contributions ............................
107
107
107

107

1
106
107

OFFICE OF VOCATIONAL AND ADULT
EDUCATION
Federal Funds
AND

ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the Carl
D. Perkins Career and Technical Education Act of 2006 and the
Adult Education and Family Literacy Act, $1,197,174,000, of which
$1,189,808,000 shall become available on July 1, 2008 and shall
remain available through September 30, 2009: Provided, That of the
amounts made available for the Carl D. Perkins Career and Technical
Education Act of 2006, $7,366,000 is for postsecondary career and
technical institutions under section 117: Provided further, That of
the amount provided for Adult Education State Grants, $67,896,000
shall be made available for integrated English literacy and civics
education services to immigrants and other limited English proficient
populations: Provided further, That of the amount reserved for integrated English literacy and civics education, notwithstanding section
211 of the Adult Education and Family Literacy Act, 65 percent shall
be allocated to States based on a State’s absolute need as determined
by calculating each State’s share of a 10-year average of the United
States Citizenship and Immigration Services data for immigrants admitted for legal permanent residence for the 10 most recent years,
and 35 percent allocated to States that experienced growth as measured by the average of the 3 most recent years for which United
States Citizenship and Immigration Services data for immigrants admitted for legal permanent residence are available, except that no
State shall be allocated an amount less than $60,000: Provided further, That of the amounts made available for the Adult Education
and Family Literacy Act, $9,096,000 shall be for national leadership
activities under section 243 and $6,638,000 shall be for the National
Institute for Literacy under section 242.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

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

Obligations by program activity:
Career and technical education:
00.01
State grants ..............................................................
00.02
National programs .....................................................
00.03
Occupational and employment information ..............
00.04
Tech prep education State grants ............................

1,409

564
9
6

565
7
9

564
9
7

01.91
02.01
03.01

Total, adult education ...............................................
Smaller learning communities .......................................
State grants for incarcerated youth offenders ..............

579
90
23

581
580
94
90
23 ...................

10.00

Total new obligations ................................................

1,997

2,000

2,079

21.40
22.00

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

136
1,992

131
1,997

128
1,988

23.90
23.95

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

2,128
¥1,997

2,128
¥2,000

2,116
¥2,079

Unobligated balance carried forward, end of year

131

128

2006 actual

1,183
11
1
105

2007 est.

2008 est.

1,182
1,391
9
11
1 ...................
105 ...................

1,221
1,206
1,197
¥20 ................... ...................

43.00
55.00

Appropriation (total discretionary) ........................
Advance appropriation from prior year .....................

1,201
791

1,206
791

1,197
791

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

1,992

1,997

1,988

72.40
73.10
73.20
73.40

2008 est.

CAREER, TECHNICAL,

1,302

70.00

2006 actual

Total new obligations ................................................

1,305

01.01
01.02
01.03

Total, Career and technical education .....................
Adult education:
State grants ..............................................................
National leadership activities ...................................
National Institute for Literacy ...................................

24.40

Object Classification (in millions of dollars)

00.91

Tech prep demonstration ..........................................
5
5 ...................
Tribally controlled postsecondary career and technical institutions ................................................... ................... ...................
7

74.40

Obligated balance, end of year ................................

1,762

1,670

1,810

86.90
86.93

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

602
1,385

654
1,438

614
1,325

87.00

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

1,987

2,092

1,939

89.00
90.00

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

1,992
1,987

1,997
2,092

1,988
1,939

1,755
1,762
1,670
1,997
2,000
2,079
¥1,987
¥2,092
¥1,939
¥3 ................... ...................

Career and technical education:
State grants.—Funds support formula grants to States and
localities to expand and improve their programs of career
and technical education and promote equal opportunity in
career and technical education programs for historically underserved populations.
National programs.—Funds appropriated in 2007 will be
used in 2008 to support discretionary activities that contribute to knowledge of how to improve career and technical
education nationally. Activities include a national evaluation,
a national center for research and dissemination in career
and technical education, and a program of discretionary research and development projects.
Tribally controlled postsecondary career and technical institutions.—Funds support the operation and improvement of
tribally controlled postsecondary career and technical institutions to help ensure continued and expanded educational opportunities for Indian students.
Adult education:
State programs.—Funds support formula grants to States
to help eliminate functional illiteracy among the Nation’s
adults, to assist adults in obtaining a high school diploma
or its equivalent, and to promote family literacy. A portion
of the funds is reserved for formula grants to States to provide English literacy and civics education for immigrants and
other limited English proficient adults.

OFFICE OF POSTSECONDARY EDUCATION
Federal Funds

DEPARTMENT OF EDUCATION

National Institute for Literacy.—Funds support the Institute’s national leadership activities to improve and expand
the Nation’s system for delivery of literacy services.
National leadership activities.—Funds support discretionary
activities to evaluate the effectiveness of Federal, State, and
local adult education programs, and to test and demonstrate
methods of improving program quality.

2006 actual

2007 est.

2008 est.

25.5
41.0

17
13
1,958

17
1
1,962

9
2
2,051

99.0
99.5

Direct obligations ......................................................
Below reporting threshold ..............................................

1,996
1

1,999
1

2,078
1

99.9

Total new obligations ................................................

1,997

2,000

2,079

23.1
25.1
25.2
25.3

1
1
1
1 ................... ...................
2
6
7
4
12
8

Employment Summary
Identification code 91–0400–0–1–501

1001

2006 actual

Direct:
Civilian full-time equivalent employment .....................

2007 est.

2008 est.

01.03

01.05
01.06
01.91
02.01
02.02
02.03
02.04
02.05
02.06
02.07
02.08
02.91
03.01
04.01
05.01

Strengthening Alaska Native and Native Hawaiianserving institutions ...................................................
Strengthening historically black colleges and universities ..........................................................................
Strengthening historically black graduate institutions
Minority science and engineering improvement ............
Subtotal, aid for institutional development ..............
Other aid for institutions:
Developing Hispanic-serving institutions .................
International education and foreign language studies .........................................................................
Fund for the Improvement of Postsecondary Education ....................................................................
Demonstration projects to ensure quality higher
education for students with disabilities ..............
Interest subsidy grants .............................................
Tribally controlled postsecondary vocational and
technical institutions ............................................
Subtotal, other aid for institutions ......................
Assistance for students:
Federal TRIO programs ..............................................
Gaining early awareness and readiness for undergraduate programs (GEAR UP) .............................
Byrd honors scholarships ..........................................
Javits fellowships ......................................................
Graduate assistance in areas of national need
Thurgood Marshall legal educational opportunity ....
B.J. Stupak Olympic scholarships .............................
Child care access means parents in school ............

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

238
58
9

420

403

106

7
4
7

7 ...................
4 ...................
7 ...................

241

223

828

303
40
10
30
3
1
16

303
303
40 ...................
10
10
30
30
3 ...................
1 ...................
16
16

Subtotal, assistance for students ........................
1,231
1,231
1,187
Teacher quality enhancement ........................................
60
60 ...................
Other higher education activities ..................................
3
3
1
Advancing America through foreign language partnerships .......................................................................... ................... ...................
24

10.00

For carrying out, to the extent not otherwise provided, titles III,
IV, V, VI, and VII of the Higher Education Act of 1965 (‘‘HEA’’),
as amended, the Mutual Educational and Cultural Exchange Act of
1961, $1,837,737,000: Provided, That $9,797,000, to remain available
through September 30, 2009, shall be available to fund fellowships
for academic year 2009–2010 under part A, subpart 1 of title VII
of the HEA, under the terms and conditions of part A, subpart 1:
Provided further, That $970,000 is for data collection and evaluation
activities for programs under the HEA, including such activities needed to comply with the Government Performance and Results Act of
1993: Provided further, That notwithstanding any other provision of
law, funds made available in this Act to carry out title VI of the
HEA and section 102(b)(6) of the Mutual Educational and Cultural
Exchange Act of 1961 may be used to support visits and study in
foreign countries by individuals who are participating in advanced
foreign language training and international studies in areas that are
vital to United States national security and who plan to apply their
language skills and knowledge of these countries in the fields of government, the professions, or international development: Provided further, That of the funds referred to in the preceding proviso, up to
1 percent may be used for program evaluation, national outreach,
and information dissemination activities: Provided further, That
$24,000,000 shall be for grants to institutions of higher education,
in partnership with local educational agencies, to establish instructional programs at all educational levels in languages critical to U.S.
national security.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
2006 actual

2007 est.

2008 est.

1,955

1,838

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

19
1,951

15
1,955

15
1,837

23.90
23.95

Federal Funds
HIGHER EDUCATION

Total new obligations ................................................

21.40
22.00

OFFICE OF POSTSECONDARY EDUCATION

Obligations by program activity:
00.01 Strengthening institutions .............................................
00.02 Strengthening tribally controlled colleges and universities ..........................................................................

00.91

Identification code 91–0201–0–1–502

00.05
00.06

01.04

Direct obligations:
Personnel compensation: Other than full-time permanent ...........................................................................
Rental payments to GSA ................................................
Advisory and assistance services ..................................
Other services ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Research and development contracts ...........................
Grants, subsidies, and contributions ............................

11.3

00.04

01.01
01.02

Object Classification (in millions of dollars)
Identification code 91–0400–0–1–501

00.03

325

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

1,970
¥1,955

1,852
¥1,838

24.40

Unobligated balance carried forward, end of year

1,971
1,955
1,837
¥20 ................... ...................

43.00

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

1,951

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

2,746

2,602

2,437

86.90
86.93

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

54
2,005

101
1,998

92
1,911

87.00

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

2,059

2,099

2,003

89.00
90.00

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

1,951
2,059

1,955
2,099

1,837
2,003

1,955

1,837

2,870
2,746
2,602
1,955
1,955
1,838
¥2,059
¥2,099
¥2,003
¥20 ................... ...................

Aid for institutional development:
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 tribally controlled colleges and universities.—
Funds support grants to American Indian tribally controlled
colleges and universities with scarce resources to enable them
to improve and expand their capacity to serve Indian students.

326

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008
25.2
25.3

HIGHER EDUCATION—Continued

Strengthening historically black colleges and universities.—
Funds support grants to help historically black undergraduate
institutions to improve and expand their capacity to serve
students, and to strengthen management and fiscal operations.
Strengthening historically black graduate institutions.—
Funds support grants to help historically black graduate institutions to improve and expand their capacity to serve students, and to strengthen management and fiscal operations.
Minority science and engineering improvement.—Funds support grants to predominantly minority institutions to help
them make long-range improvements in science and engineering education and to increase the participation of minorities
in scientific and technological careers.
Other aid for institutions:
Developing Hispanic-serving institutions.—Funds support
Hispanic-serving institutions to enable them to improve and
expand their capacity to serve students.
International education and foreign language studies programs.—Funds promote the development and improvement
of international and foreign language programs.
Fund for the improvement of postsecondary education.—
Funds support a broad range of postsecondary reform and
improvement projects, as well as international consortia programs.
Interest subsidy grants.—Balances from prior year appropriations meet mandatory interest subsidy costs of construction loan commitments made prior to 1974.
Assistance for students:
Federal TRIO programs.—Funds support postsecondary
education outreach and support services to help disadvantaged adults enter and complete college and graduate studies.
Gaining early awareness and readiness for undergraduate
programs.—Funds support early college preparation and
awareness activities at the State and local levels to ensure
that low-income elementary and secondary school students
are prepared for and pursue postsecondary education.
Javits fellowships.—Funds support fellowships to students
of superior ability who have financial need and who are pursuing doctoral degrees in the arts, humanities, and social
sciences.
Graduate assistance in areas of national need.—Funds support fellowships to graduate students of superior ability who
have financial need and who are from traditionally underrepresented backgrounds for study in areas of national need.
Child care access means parents in school.—Funds support
a program designed to bolster the participation of low-income
parents in postsecondary education through the provision of
campus-based child care services.
Other activities:
Other higher education activities.—Funds support data collection and evaluation activities for programs under the Higher Education Act of 1965, including such activities needed
to comply with the Government Performance and Results Act
of 1993.
Advancing America through foreign language partnerships.—Funds support an initiative to establish fully articulated language programs of study in languages critical to
U.S. national security through grants to institutions of higher
education for partnerships with school districts for language
learning from kindergarten through high school and into advanced language learning at the postsecondary education
level.

25.1

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

2006 actual

2
1
1,944

2
1
1,945

2
1
1,826

99.9

Total new obligations ................................................

1,955

1,838

HOWARD UNIVERSITY
For partial support of Howard University (20 U.S.C. 121 et seq.),
$233,866,000.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0603–0–1–502

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 General support .............................................................
00.02 Howard University Hospital ............................................

205
29

212
29

209
29

10.00

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

234

241

238

21.40
22.00

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

7
238

11
234

4
234

23.90
23.95

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

245
¥234

245
¥241

238
¥238

24.40

Unobligated balance carried forward, end of year

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

240
234
234
¥2 ................... ...................

43.00

238

72.40
73.10
73.20

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

234

Change in obligated balances:
Obligated balance, start of year ................................... ................... ...................
Total new obligations ....................................................
234
241
Total outlays (gross) ......................................................
¥234
¥231

10
238
¥234

74.40

Obligated balance, end of year ................................ ...................

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
234
Outlays from discretionary balances ............................. ...................

220
11

220
14

87.00

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

234

231

234

89.00
90.00

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

238
234

234
231

234
234

Howard University is a private, nonprofit educational institution consisting of 12 schools and colleges. Federal funds
are used to provide partial support for university programs
as well as for the teaching hospital facilities. In 2006, Federal
funding represented approximately 51 percent of the university’s revenue.
f

COLLEGE HOUSING

AND

ACADEMIC FACILITIES LOANS PROGRAM
ACCOUNT

For Federal administrative expenses to carry out activities related
to existing facility loans pursuant to section 121 of the Higher Education Act of 1965, as amended $481,000.
HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
PROGRAM ACCOUNT

Object Classification (in millions of dollars)
Identification code 91–0201–0–1–502

25.7
41.0

Other services ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Operation and maintenance of equipment ...................
Grants, subsidies, and contributions ............................

2007 est.

2008 est.

For administrative expenses to carry out the Historically Black College and University Capital Financing Program entered into pursuant
to title III, part D of the Higher Education Act of 1965, as amended,
$188,000.

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0241–0–1–502

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Direct loan subsidy ........................................................ ...................
00.05 Reestimates of direct loan subsidy ............................... ...................
00.06 Interest on reestimates of direct loan subsidy ............. ...................
00.09 Federal administration ...................................................
1

179 ...................
11 ...................
3 ...................
1
1

10.00

Total new obligations ................................................

194

22.00
23.95

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

1
¥1

194
¥194

1
¥1

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
1
Mandatory:
60.00
Appropriation ............................................................. ...................

180

70.00

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

194

73.10
73.20

Change in obligated balances:
Total new obligations ....................................................
Total outlays (gross) ......................................................

1
¥1

194
¥194

1
¥1

86.90
86.97

Outlays (gross), detail:
Outlays from new discretionary authority .....................
1
Outlays from new mandatory authority ......................... ...................

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

180
1
14 ...................

87.00

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

194

89.00
90.00

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

1
1

194
194

1
1

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

327

but consolidated in the President’s budget for presentation
purposes.
College Housing and Academic Facilities Loans Program.—
Funds for this activity pay the Federal costs for administering
the College Housing and Academic Facilities Loans (CHAFL),
College Housing Loans (CHL), and Higher Education Facilities Loans (HEFL) programs. Prior to 1994, these programs
provided financing for the construction, reconstruction, and
renovation of housing, academic, and other educational facilities. Although no new loans have been awarded since fiscal
year 1993, costs for administering the outstanding loans will
remain through 2030.
Historically Black College and University Capital Financing
Program.—The Historically Black College and University
(HBCU) Capital Financing Program provides HBCUs with
access to capital financing for the repair, renovation, and
construction of classrooms, libraries, laboratories, dormitories,
instructional equipment, and research instrumentation. The
Higher Education Amendments of 1992 granted the Department authority to enter into insurance agreements with a
private for-profit Designated Bonding Authority to guarantee
no more than $375,000,000 in outstanding principal and unpaid accrued interest combined. The bonding authority issues
the loans and maintains an escrow account in which 5 percent
of each institution’s principal is deposited. In 2006 P.L. 109–
234, an emergency supplemental appropriation act, provided
authority issue loans with more favorable terms to HBCUs
affected by Hurricane Katrina. The Department estimates
that it will guarantee $235 million of these loans in 2007,
at a cost of $179 million. The Department anticipates that
the program will surpass the statutory loan cap of $375 million in principal and accrued interest in fiscal year 2007,
at which point the Department will not have authority to
make additional loan guarantees. The 2008 Budget provides
funds for continuing Federal administrative activities only.
Object Classification (in millions of dollars)

Identification code 91–0241–0–1–502

2006 actual

Direct loan levels supportable by subsidy budget authority:
115002 Historically Black Colleges and Universities .................
15
115003 HBCU Hurricane Supplemental ...................................... ...................
115999 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
132002 Historically Black Colleges and Universities .................
132003 HBCU Hurricane Supplemental ......................................

2007 est.

2008 est.
Identification code 91–0241–0–1–502

41.0
75 ...................
235 ...................

99.5

310 ...................

99.9

0.00
0.00

0.00
76.14
57.72

0.00

Total new obligations ................................................

0.00
0.00

132999 Weighted average subsidy rate .....................................
0.00
Direct loan subsidy budget authority:
133003 HBCU Hurricane Supplemental ...................................... ...................

2006 actual

Direct obligations: Grants, subsidies, and contributions ........................................................................... ...................
Below reporting threshold ..............................................
1

133999 Total subsidy budget authority ...................................... ...................
Direct loan subsidy outlays:
134003 HBCU Hurricane Supplemental ...................................... ...................

179 ...................

2007 est.

2008 est.

193 ...................
1
1
194

Employment Summary
Identification code 91–0241–0–1–502

2006 actual

Direct:
1001 Civilian full-time equivalent employment .....................

2007 est.

2008 est.

179 ...................
f

179 ...................

134999 Total subsidy outlays ..................................................... ...................
Direct loan upward reestimates:
135002 Historically Black Colleges and Universities ................. ...................

179 ...................

135999 Total upward reestimate budget authority .................... ...................

COLLEGE HOUSING

AND

ACADEMIC FACILITIES LOANS FINANCING
ACCOUNT

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

Program and Financing (in millions of dollars)
Identification code 91–4252–0–3–502

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

1
1

2006 actual

2007 est.

2008 est.

As required by the Federal Credit Reform Act of 1990,
this account records the subsidy costs associated with the
direct loans obligated and loan guarantees committed in 1992
and beyond, as well as any administrative expenses for the
College Housing and Academic Facilities Loans Program and
the Historically Black College and University Capital Financing Program. The subsidy amounts are estimated on a present
value basis; the administrative expenses are estimated on
a cash basis. These programs are administered separately

Obligations by program activity:
00.02 Interest paid to Treasury ...............................................

10.00

3510
3590

Total new obligations ................................................

22.00
23.95

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

1
¥1

New financing authority (gross), detail:
Mandatory:
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................
69.47
Portion applied to repay debt ...............................

2
¥1

328

OFFICE OF POSTSECONDARY EDUCATION—Continued
Federal Funds—Continued

COLLEGE HOUSING

THE BUDGET FOR FISCAL YEAR 2008

AND ACADEMIC FACILITIES
ACCOUNT—Continued

22.40

Identification code 91–4252–0–3–502

69.90

2006 actual

2007 est.

2008 est.

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

Change in obligated balances:
73.10 Total new obligations ....................................................
73.20 Total financing disbursements (gross) .........................

1
¥1

Outlays (gross), detail:
Total financing disbursements (gross) .........................

¥1 ...................

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

8
¥8

24.40

Program and Financing (in millions of dollars)—Continued

Capital transfer to general fund ................................... ...................

23.90
23.95

LOANS FINANCING

Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation .............................................................
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................
69.27
Capital transfer to general fund ..........................
69.47
Portion applied to repay debt ...............................

87.00

37
¥25
¥7

31
¥22
¥3

28
¥20
¥3

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

70.00

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

69.90

¥1
¥1

88.90

¥2

74.40

Net financing authority and financing disbursements:
Financing authority ........................................................
¥1
Financing disbursements ............................................... ...................

¥1
¥1

86.97

2006 actual

1210
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................

1290

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

2007 est.

2008 est.

19
18
18
¥1 ................... ...................
18

1 ................... ...................
7
8
7
¥8
¥8
¥7

Obligated balance, end of year ................................ ................... ................... ...................

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 obligated in fiscal
years 1992 and 1993. The amounts in this account are a
means of financing and are not incuded in the budget totals.

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

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.40
Repayments of principal .......................................
88.40
Interest received on loans ....................................

Status of Direct Loans (in millions of dollars)
Identification code 91–4252–0–3–502

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

72.40
73.10
73.20

89.00
90.00

7
¥7

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.40
Interest repayments ..............................................
88.40
Principal repayments ............................................
Total, offsetting collections (cash) .......................

8
¥7

¥27
¥10

¥21
¥10

¥19
¥9

88.90

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

¥37

¥31

¥28

89.00
90.00

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

¥29
¥29

¥23
¥23

¥21
¥21

Status of Direct Loans (in millions of dollars)
Identification code 91–0242–0–1–502

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

2006 actual

2007 est.

2008 est.

83
¥7

76
¥3

73
¥3

Balance Sheet (in millions of dollars)
1290
2005 actual

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

1210
1251

Identification code 91–4252–0–3–502

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................

17
¥1

16
¥2

14
¥2

2006 actual

ASSETS:
Net value of assets related to post–1991 direct loans receivable:
1401 Direct loans receivable, gross ....................................................
1402 Interest receivable ........................................................................
1405 Allowance for subsidy cost (–) ..................................................

19
1
–3

1290

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

1499

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

1210
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................

182
¥19

163
¥16

147
¥15

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

1290

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

163

147

132

2999

Total liabilities .............................................................................

4999

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

1999

COLLEGE HOUSING

AND

ACADEMIC FACILITIES LOANS LIQUIDATING
ACCOUNT

Program and Financing (in millions of dollars)
Identification code 91–0242–0–1–502

2006 actual

2007 est.

Balance Sheet (in millions of dollars)

2008 est.

00.02

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

10.00

Total new obligations (object class 43.0) ................

21.40
22.00

As required by the Federal Credit Reform Act of 1990,
the College Housing and Academic Facilities Loans Liquidating Account records all cash flows to and from the Government resulting from direct loans obligated prior to 1992. This
account includes loans made under the College Housing and
Academic Facilities Loans, College Housing Loans, and Higher Education Facilities Loans programs, which continue to
be administered separately.

Identification code 91–0242–0–1–502

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year ...................
New budget authority (gross) ........................................
8

ASSETS:
1601 Direct loans, gross ......................................................................
1602 Interest receivable ........................................................................

2005 actual

282
6

2006 actual

255
6

1699
1 ...................
8
7

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

288

261

1999

Total assets ..................................................................................

288

261

OFFICE OF FEDERAL STUDENT AID
Federal Funds

DEPARTMENT OF EDUCATION
LIABILITIES:
Federal liabilities:
2103 Debt ...............................................................................................
2104 Resources payable to Treasury ...................................................

83
205

76
185

2999

Total liabilities .............................................................................

288

261

4999

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

288

261

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
DIRECT LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 91–4255–0–3–502

2006 actual

2007 est.

the Federal Government resulting from direct loans obligated
in fiscal year 1996 and beyond. The Federal Financing Bank
(FFB) purchases bonds issued by the HBCU Designated Bonding Authority. Under the policies governing Federal credit
programs, bonds purchased by the FFB and supported by
the Department of Education with a letter of credit create
the equivalent of a Federal direct loan. HBCU bonds are
also available for purchase by the private sector, and these
will be treated as loan guarantees. However, the Department
anticipates that all HBCU loans will be financed by the FFB.
The amounts in this account are a means of financing and
are not included in the budget totals.

2008 est.

Balance Sheet (in millions of dollars)

Obligations by program activity:
00.01 Direct loan awards ........................................................
00.02 Interest paid to Treasury ...............................................

15
7

310 ...................
7
7

10.00

Total new obligations ................................................

317

22.00
23.95

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

22
¥22

317
¥317

7
¥7

24.40

Identification code 91–4255–0–3–502

2005 actual

ASSETS:
Federal assets: Fund balances with Treasury ..........................
Net value of assets related to post–1991 direct loans receivable:
1401 Direct loans receivable, gross ....................................................
1402 Interest receivable ........................................................................

126
3

155
3

1499

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

129

158

Total assets ..................................................................................
LIABILITIES:
Federal liabilities:
2102 Interest payable ............................................................................
2103 Debt ...............................................................................................
2201 Non-Federal liabilities: Undisbursed direct loans .....................

139

180

3
126
10

3
155
22

Total liabilities .............................................................................

139

180

4999

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

139

180

1101

1999

69.90

15
20
¥13

310 ...................
205
¥198

12
¥5

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

70.00

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

317

72.40
73.10
73.20

38
22
¥49

11
317
¥178

150
7
¥256

74.40

Obligated balance, end of year ................................

150

¥99

87.00

Outlays (gross), detail:
Total financing disbursements (gross) .........................

178

256

89.00
90.00

Total, offsetting collections (cash) .......................
Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

¥20

2
29

¥193 ...................
¥7
¥7
¥5
¥5
¥205

112
¥27

¥12

¥5
244

Status of Direct Loans (in millions of dollars)
Identification code 91–4255–0–3–502

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
1142 Unobligated direct loan limitation (¥) ........................

OFFICE OF FEDERAL STUDENT AID

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ...................
88.40
Interest repayments ..............................................
¥7
88.40
Principal repayments ............................................
¥13
88.90

2006 actual

2999

Unobligated balance carried forward, end of year ................... ................... ...................

New financing authority (gross), detail:
Mandatory:
67.10
Authority to borrow ....................................................
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................
69.47
Portion applied to repay debt ...............................

329

2006 actual

2007 est.

2008 est.

Federal Funds
STUDENT FINANCIAL ASSISTANCE
For carrying out subpart 1 of part A, and part C of title IV of
the Higher Education Act of 1965, as amended, $14,203,492,000,
which shall remain available through September 30, 2009.
The maximum Pell Grant for which a student shall be eligible
during award year 2008–2009 shall be $4,050.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0200–0–1–502

Obligations by program activity:
01.01 Federal Pell grants ........................................................
02.01 Federal supplemental educational opportunity grants
(SEOG) .......................................................................
02.02 Federal work-study .........................................................
02.03 Federal Perkins loans: Fed. capital contributions .........
02.04 Federal Perkins loans: Loan cancellations ....................

14,180

13,965

23
19,255

2,694
14,488

3,002
14,203

310 ...................

21.40
22.00
22.10

126
42
¥13

155
170
¥5

320
249
¥5

1290

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

155

320

776
772 ...................
1,005
981
980
5 ................... ...................
65
65 ...................

16,717

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

1210
1231
1251

12,985

1,851
65

10.00

12,297

2008 est.

Campus-based activities—Subtotal (1 level) ..........
Leveraging educational assistance partnership ...........

216 ...................
94 ...................

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

14,801

2007 est.

02.91
03.01

208
¥193

1150

2006 actual

1,818
980
65 ...................

564

133 ................... ...................

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

19,411
¥16,717

17,182
¥14,180

17,205
¥13,965

24.40

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from

23.90
23.95

Unobligated balance carried forward, end of year

2,694

3,002

3,240

New budget authority (gross), detail:
Discretionary:

330

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008

STUDENT FINANCIAL ASSISTANCE—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 91–0200–0–1–502

40.00
40.00
40.35
43.00

2006 actual

2008 est.

Appropriation .............................................................
15,078
14,488
14,203
Appropriation ............................................................. ................... ................... ...................
Appropriation permanently reduced ..........................
¥151 ................... ...................
14,927

60.00
63.00

Appropriation (total discretionary) ........................
Mandatory:
Appropriation .............................................................
Reappropriation .........................................................

70.00

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

19,255

72.40
73.10
73.20
73.40
73.45

74.40

Obligated balance, end of year ................................

86.90
86.93
86.97
86.98

2007 est.

14,488

14,203

4,300 ................... ...................
28 ................... ...................
14,488

14,203

6,861
8,722
8,702
16,717
14,180
13,965
¥14,710
¥14,200
¥14,244
¥13 ................... ...................
¥133 ................... ...................
8,722

8,702

8,423

Outlays (gross), detail:
Outlays from new discretionary authority .....................
8,011
3,216
2,997
Outlays from discretionary balances .............................
6,679
10,976
11,247
Outlays from new mandatory authority .........................
20 ................... ...................
Outlays from mandatory balances ................................ ...................
8 ...................

87.00

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

14,710

14,200

14,244

89.00
90.00

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

19,255
14,710

14,488
14,200

14,203
14,244

Summary of Budget Authority and Outlays

AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

(in millions of dollars)
2006 actual

2007 est.

Enacted/requested:
Budget Authority .....................................................................
19,254
14,488
Outlays ....................................................................................
14,710
14,200
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

19,254
14,710

14,488
14,200

2008 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................
1290

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

2006 actual

2007 est.

[in thousands]
2006

14,203
14,244
2,216
532

16,419
14,776

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

Federal Pell Grants.—Pell Grants are the single largest
source of grant aid for postsecondary education. In 2007, more
than 5 million undergraduates will receive up to $4,050 to
help pay for postsecondary education. Undergraduate students establish eligibility for these grants under award and
need determination rules set out in the authorizing statute
and the annual appropriations act.
Federal Work Study.—This program provides aid administrators with considerable flexibility in packaging financial aid
awards to best meet student needs. Federal funds are awarded by formula to qualifying institutions, which provide parttime jobs to eligible undergraduate and graduate students.
Hourly earnings under this program must be at least equal
to the Federal minimum wage. Federal funding in most cases
pays 75 percent of a student’s hourly wages, with the remaining 25 percent paid by the employer. The Federal Work-Study
program also requires participating institutions to use at least
7 percent of the total funds granted to compensate students
employed in community service jobs.
Funding Tables.—The following tables display student aid
funds available, the number of aid awards, average awards,
and the unduplicated count of recipients from any Federal
student aid program. The tables include aid from programs
in the Student Financial Assistance account, as well as aid
from the Academic Competitiveness/SMART Grant, Federal
Family Education Loan, and William D. Ford Direct Student
Loan programs. Loan amounts reflect the capital actually
loaned, not the Federal cost of these loans. The data in these
tables include matching funds wherever appropriate. The
2008 data in these tables reflect the Administration’s legislative proposals.

2008 est.

323
¥26

322
¥26

321
¥26

¥14
39

322

321

320

Notes: Figures include, in all years, institutional matching
share of defaulted notes assigned from institutions to the
Education Department.
The Administration’s student aid policy proposals, including
funding levels for programs in the Student Financial Assistance account, are discussed under the Federal Direct Student
Loan Program account. Authorizing legislation to implement
these policies, which will be proposed for later transmittal,
will provide substantial mandatory funding resources that
will allow the maximum Pell Grant level to be increased
to $4,600, $550 above the level shown in the above appropriations language. When these mandatory funds are taken into
account, funding from the Student Financial Assistance account and related matching funds would provide nearly 6.3
million awards totaling over $16.4 billion in available aid
in award year 2008–2009.

Pell grants ................................................................................... 12,880,787
Academic Competitiveness Grants ..............................................
340,000
SMART grants ..............................................................................
310,000
Student loans:
Guaranteed student loans:
Stafford loans ..................................................................... 19,856,009
Unsubsidized Stafford loans .............................................. 20,067,865
PLUS ................................................................................... 7,382,849
Direct student loans:
Stafford loans ..................................................................... 5,604,411
Unsubsidized Stafford loans .............................................. 4,784,107
PLUS ................................................................................... 2,288,328
Consolidation:
FFEL .................................................................................... 72,009,607
Direct Loans ....................................................................... 19,347,290
Perkins loans .......................................................................... 1,134,733
Student loans, subtotal ................................................. 152,475,199
Work study ................................................................................... 1,174,800
Supplemental educational opportunity grants ............................
975,864
Leveraging educational assistance partnerships .......................
164,960

2007

2008

12,954,395
420,000
310,000

15,175,820
830,000
350,000

21,410,043
21,784,501
9,207,694

23,721,725
23,912,997
10,210,395

5,943,987
5,158,934
2,493,366

6,637,369
5,649,747
2,762,814

26,852,938 31,882,248
4,465,821 4,996,000
1,104,497
0
98,421,781 112,783,271
1,174,970 1,174,970
975,432
0
164,960
0

Total aid available ......................................................... 168,321,610 114,421,538 127,304,154

NUMBER OF AID AWARDS
[in thousands]
2006

2007

2008

Pell grants ..........................................................................
Academic competitiveness grants .....................................
SMART grants .....................................................................
Guaranteed student loans—Stafford loans ......................
Guaranteed student loans—Unsubsidized Stafford loans
Guaranteed student loans—PLUS .....................................
Guaranteed student loans—Consolidation ........................
Direct student loans—Stafford loans ...............................
Direct student loans—Unsubsidized Stafford loans .........
Direct student loans—PLUS ..............................................
Direct student loans—Consolidation .................................
Perkins loans ......................................................................
Work-study ..........................................................................
Supplemental educational opportunity grants ...................
Leveraging eduational assistance partnerships ................

5,165
400
80
5,706
4,585
691
2,622
1,153
1,091
237
756
514
880
1,291
165

5,274
497
82
5,913
4,786
797
992
1,503
1,094
242
200
501
880
1,290
165

5,478
662
93
6,090
4,976
840
1,137
1,547
1,133
255
200
0
880
0
0

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

25,696

24,216

23,291

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

ACADEMIC COMPETITIVENESS/SMART GRANT PROGRAM

AVERAGE AID AWARDS
[in whole dollars]

Program and Financing (in millions of dollars)
2006

Pell grants ..........................................................................
Academic competitiveness .................................................
SMART Grants .....................................................................
Guaranteed student loans—Stafford loans ......................
Guaranteed student loans—Unsubsidized Stafford loans
Guaranteed student loans—PLUS .....................................
Guaranteed student loans—Consolidation ........................
Direct student loans—Stafford loans ...............................
Direct student loans—Unsubsidized Stafford loans .........
Direct student loans—PLUS ..............................................
Direct student loans—Consolidation .................................
Perkins loans ......................................................................
Work-study ..........................................................................
Supplemental educational opportunity grants ...................
Leveraging educational assistance partnerships ..............

2007

2,494
850
3,875
3,480
4,377
10,678
27,465
3,704
4,386
9,675
25,607
2,206
1,335
756
1,000

2,456
845
3,780
3,621
4,552
11,557
27,075
3,954
4,715
10,300
22,292
2,206
1,335
756
1,000

2008

2,770
1,254
3,763
3,895
4,806
12,152
28,040
4,290
4,987
10,834
22,673
0
1,335
0
0

Identification code 91–0205–0–1–502

[in thousands]

10,409

10,766

11,076

2006

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

STUDENT

2007

25,827
73,445
39,035
45,389

26,372
73,456
39,017
44,180

2008

27,389
73,445
0
0

(Legislative proposal, subject to PAYGO)

850

10.00

1,187

850

920

743

406

1,593
¥1,187
¥406

1,326
¥850
¥476

22.00
22.30
23.90
23.95
23.98

2006 actual

2007 est.

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

Budgetary resources available for obligation:
New budget authority (gross) ........................................
790
Expired unobligated balance transfer to unexpired account .......................................................................... ...................
Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

72.40
73.10
73.20
74.40

790
¥47
¥743

Unobligated balance carried forward, end of year ................... ................... ...................

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

790

850

920

Change in obligated balances:
Obligated balance, start of year ................................... ...................
Total new obligations ....................................................
47
Total outlays (gross) ......................................................
¥44

3
1,187
¥867

323
850
¥771

323

402

Outlays (gross), detail:
Outlays from new mandatory authority .........................
44
Outlays from mandatory balances ................................ ...................

140
727

211
560

Obligated balance, end of year ................................

87.00

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

867

771

89.00
90.00

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

790
44

850
867

920
771

Program and Financing (in millions of dollars)
Identification code 91–0200–4–1–502

2008 est.

1,187

86.97
86.98

FINANCIAL ASSISTANCE

2007 est.

ADMINISTRATIVE PAYMENTS TO INSTITUTIONS
[in thousands of dollars]

2006 actual

Obligations by program activity:
00.01 Direct program activity ..................................................

24.40

NUMBER OF STUDENTS AIDED
Unduplicated student count ........................................................

331

2008 est.

01.01

Obligations by program activity:
Federal Pell Grants ........................................................ ................... ...................

1,640

10.00

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

1,640

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

Unobligated balance carried forward, end of year ................... ...................

2006 actual

2,216
¥1,640
576

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

2,216

73.10
73.20

1,640
¥532

74.40

Obligated balance, end of year ................................ ................... ...................

1,108

86.97

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

532

89.00
90.00

2,216
532

Status of Direct Loans (in millions of dollars)
Identification code 91–0200–4–1–502

2006 actual

2007 est.

2008 est.

................... ................... ...................
................... ...................
26
................... ...................
................... ...................

14
¥360

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

¥320

2007 est.

Enacted/requested:
Budget Authority .....................................................................
790
850
Outlays ....................................................................................
44
867
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

790
44

850
867

2008 est.

920
771
260
72

1,180
843

These need-based programs provide grants to U.S citizens
who attend school on a full-time basis. Students receiving
grants must be eligible to receive a Pell Grant and, for second-, third-, and fourth-year students, must maintain at least
a 3.0 grade point average.
Academic Competitiveness Grants (ACG). These grants are
awarded to first-year and second-year students who have completed a rigorous course of study in high school. Grant levels
are $750 for first-year students and $1,300 for second-year
students.
Science and Mathematics Access to Retain Talent (SMART)
Grants. These grants are awarded to third-year and fourthyear students pursuing a major in mathematics, science, or
a foreign language deemed critical to national security. Grant
levels are $4,000 for both third- and fourth-year students
Taken together with other Federal student aid, grants cannot exceed a student’s cost of attendance. Program funding
in excess of the amount needed to fund grants in a given
year can be carried over for use in subsequent years; if the
mandatory funding level is insufficient to fund program
grants, grant levels are reduced.

332

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008

ACADEMIC COMPETITIVENESS/SMART GRANT PROGRAM—Continued

73.20

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

¥87

The Administration’s student aid policy proposals, including
those related to the ACG/SMART Grants, are discussed under
the Federal Direct Student Loan Program Account.

86.97

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

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources .................................................................. ................... ...................

¥506

¥419
¥419

ACADEMIC COMPETITIVENESS/SMART GRANT PROGRAM
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 91–0205–4–1–502

2006 actual

2007 est.

2008 est.

00.01

Obligations by program activity:
Direct program activity .................................................. ................... ...................

240

10.00

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

89.00
90.00

240

Status of Direct Loans (in millions of dollars)
Identification code 91–0219–4–1–502

260
¥240

Unobligated balance carried forward, end of year ................... ...................

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation ............................................................. ................... ...................
Change in obligated balances:
Total new obligations .................................................... ................... ...................
Total outlays (gross) ...................................................... ................... ...................

240
¥72

74.40

Obligated balance, end of year ................................ ................... ...................

168

86.97

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

89.00
90.00

260
72

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

2007 est.

2008 est.

................... ................... ...................
................... ...................
¥506

260

73.10
73.20

2006 actual

1290

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

¥54
8,000

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

7,440

STUDENT AID ADMINISTRATION
For Federal administrative expenses to carry out part D of title
I, and subparts 1, 3, and 4 of part A, and parts B, C, D and E
of title IV of the Higher Education Act of 1965, as amended,
$708,216,000, which shall remain available until expended.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
f
Identification code 91–0202–0–1–502

PERKINS LOAN ASSETS

The 2008 Budget proposes to eliminate the Perkins Loan
program and to recall the entire Federal portion of revolving
funds held by participating institutions. This proposal is discussed, as part of a broader review of student aid policy
proposals, under the Federal Direct Student Loan Program
Account. The Perkins Loan account records amounts recalled
from Perkins Loan institutions and subsequent repayments
on outstanding Perkins Loans, as well as reimbursements
of institutional funds to participating schools.
PERKINS

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

119

718

708

10.00

Total new obligations ................................................

119

718

708

22.00
23.95

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

119
¥119

718
¥718

708
¥708

120
718
708
¥1 ................... ...................

43.00

2006 actual

2007 est.

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

119

718

708

72.40
73.10
73.20

36
119
¥110

45
718
¥439

324
708
¥622

74.40

Obligated balance, end of year ................................

324

410

86.90
86.93

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

82
28

409
30

406
216

87.00

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

110

439

622

89.00
90.00

2008 est.

01.01

Obligations by program activity:
Institutional Share of Perkins Collections ..................... ................... ...................

10.00

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

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

119
110

718
439

708
622

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ...................
23.95 Total new obligations .................................................... ................... ...................
New budget authority (gross), detail:
Mandatory:
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................ ................... ...................
69.27
Capital transfer to general fund .......................... ................... ...................

73.10

2008 est.

00.01

Program and Financing (in millions of dollars)

69.90

2007 est.

LOAN ASSETS

(Legislative proposal, subject to PAYGO)

Identification code 91–0219–4–1–502

2006 actual

87
¥87

506
¥419

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

Change in obligated balances:
Total new obligations .................................................... ................... ...................

The Department of Education manages Federal student aid
programs that will provide $127.3 billion in Federal student
aid grants and loans to 11.1 million students and parents
in 2008. Primary responsibility for administering these programs lies with the Office of Postsecondary Education and

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

the performance-based Federal Student Aid (FSA), which are
both overseen by the Office of the Under Secretary. FSA
was created by Congress in 1998 with a mandate to improve
service to students and other student aid program participants, reduce student aid administration costs, and improve
accountability and program integrity.
Prior to 2007, student aid administrative activities were
funded from two main sources: (1) funds appropriated on a
permanent basis under section 458 of the Higher Education
Act (which included an amount—$220 million in 2006—for
account maintenance fee payments to Federal Family Education Loan guaranty agencies); and (2) a discretionary appropriation partially supporting student aid administrative activities. Under the Higher Education Reconciliation Act of
2005, student aid administrative funds for 2007 and subsequent years are funded from a single discretionary account.
(Account maintenance fees payments for these years are paid
from the FFEL Program Account.)
The Budget for 2008 includes $708 million for student aid
administration. Most of these funds support systems maintained by private contractors to process student aid applications; provide and track aid awards to students, parents, and
schools; and service the over-$100 billion portfolio of William
D. Ford Direct Student Loans.
Consistent with Section 484(q) of the Higher Education Act
and Section 6103(c) of the Internal Revenue Code, the Department of Education and the Internal Revenue Service intend
to implement a process to verify students’ (and their parents’)
income, tax and certain household information appearing on
their income tax return that they provided as part of their
application for Federal student aid. This process is part of
ongoing efforts to ensure students receive the correct amount
of Federal student aid, and is a key component of the Administration’s efforts to reduce erroneous payments governmentwide.

01.02

Obligations, non-federal ................................................

5,385

6,198

6,812

10.00

Total new obligations (object class 42.0) ................

5,385

6,198

6,812

21.40
22.00
22.40

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................
Capital transfer to general fund ...................................

888
5,356
¥280

23.90
23.95

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

5,964
¥5,385

6,945
¥6,198

7,846
¥6,812

24.40

Unobligated balance carried forward, end of year

579

747

1,034

New budget authority (gross), detail:
Mandatory:
69.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

5,356

6,461

7,099

73.10
73.20

Change in obligated balances:
Total new obligations ....................................................
Total outlays (gross) ......................................................

5,385
¥5,386

6,198
¥6,198

6,812
¥6,812

86.97
86.98

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

5,210
176

5,854
344

6,419
393

87.00

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

5,386

6,198

6,812

¥5,210
¥146

¥5,854
¥607

¥6,419
¥680

88.90

¥5,356

¥6,461

¥7,099

89.00
90.00

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

11.1
11.3
11.5
11.9
12.1
21.0
23.1
23.3
24.0
25.1
25.2
25.3

2006 actual

Direct obligations:
Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................
Other personnel compensation ..................................

Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual

2007 est.

2008 est.

42
104
108
2 ................... ...................
1
2
2
45
12
...................
5
4
2
...................
1

106
27
4
15
7
7
3
35

110
29
4
14
7
8
3
37

25.7
26.0
31.0
32.0

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 ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Operation and maintenance of equipment ...................
Supplies and materials .................................................
Equipment ......................................................................
Land and structures ......................................................

6
43
...................
1
...................

13
496
1
2
2

13
480
1
1
1

99.9

Total new obligations ................................................

119

718

708

Employment Summary
Identification code 91–0202–0–1–502

1001

2006 actual

Direct:
Civilian full-time equivalent employment .....................

579
747
6,461
7,099
¥95 ...................

Object Classification (in millions of dollars)
Identification code 91–0202–0–1–502

333

2007 est.

505

1,132

2008 est.

Total:
Budget Authority ..................................................................... .................... .................... ....................
Outlays ....................................................................................
30
–263
–292

The Higher Education Amendments of 1998 clarified that
reserve funds held by public and non-profit guaranty agencies
participating in the Federal Family Education Loan (FFEL)
program are Federal property. These reserves are used to
pay default claims from FFEL lenders and fees to support
agency efforts to avert defaults. The Federal Government reimburses these reserves for default claim payments.
The following schedule reflects the balances in these guaranty agency funds. During 2007, OMB, Treasury and the
Department plan to review the budgetary and financial presentation of these funds in the context of relevant laws and
guidance.
Balance Sheet (in millions of dollars)

2008 est.

1,132

2007 est.

Enacted/requested:
Budget Authority ..................................................................... .................... .................... ....................
Outlays ....................................................................................
30
–263
–287
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... .................... ....................
Outlays .................................................................................... .................... ....................
–5

Identification code 91–4257–0–3–502

2005 actual

2006 actual

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

Obligations by program activity:

2006 actual

2007 est.

579

1,040

579

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

1,040

579

4999

Identification code 91–4257–0–3–502

1,040

3999

Program and Financing (in millions of dollars)

579

Total assets ..................................................................................
NET POSITION:
3300 Cumulative results of operations ...............................................

FEDERAL STUDENT LOAN RESERVE FUND

1,040

1999

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

1,040

579

2008 est.

334

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008
69.00
69.27

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 91–4257–4–3–502

2006 actual

2007 est.

Obligations by program activity:
01.02 Obligations, non-federal ................................................ ................... ...................

2008 est.

Offsetting collections (cash)—admin .................. ................... ................... ...................
Capital transfer to general fund ..........................
¥523 ................... ...................

69.90

FEDERAL STUDENT LOAN RESERVE FUND

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

70.00

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

72.40
73.10
73.20
73.40
73.45

74.40

Obligated balance, end of year ................................

86.90
86.93
86.97
86.98

87.00

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

¥133

10.00

Total new obligations (object class 42.0) ................ ................... ...................

¥133

22.00
23.95

¥128
133

24.40

Unobligated balance carried forward, end of year ................... ...................

7,534

5,176

500

361
517
164
7,542
5,176
500
¥7,365
¥5,529
¥525
¥12 ................... ...................
¥9 ................... ...................

New budget authority (gross), detail:
Mandatory:
69.00
Spending authority from offsetting collections: Offsetting collections (cash) ..................................... ................... ...................

¥128

73.10
73.20

¥133
133

86.97
86.98

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

¥128
¥5

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

¥133

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

128

87.00

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

517

164

139

288 ................... ...................
296
234
65
6,759
5,112
413
22
183
47
7,365

5,529

525

¥523 ................... ...................

7,011
6,842

5,176
5,529

500
525

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

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ........................................................................... ................... ...................
¥5

FEDERAL DIRECT STUDENT LOAN PROGRAM PROGRAM ACCOUNT

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

Program and Financing (in millions of dollars)
Identification code 91–0243–0–1–502

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Direct Loan Subsidy .......................................................
00.03 Subsidy modification, upward .......................................
00.05 Upward Reestimate ........................................................
00.06 Interest on Upward Reestimate .....................................
00.09 Administrative expenses ................................................

1,807
474
500
7 ................... ...................
3,327
3,614 ...................
1,573
1,088 ...................
828 ................... ...................

10.00

Total new obligations ................................................

7,542

5,176

500

21.40
22.00
22.10

27
7,534

28
5,176

28
500

9 ................... ...................

23.90
23.95

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

7,570
¥7,542

5,204
¥5,176

528
¥500

24.40

Unobligated balance carried forward, end of year

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
Mandatory:
60.00
Appropriation -federal administration ......................
60.00
Appropriation (indefinite)—loan subsidy .................
60.00
Appropriation—upward modification ........................
60.00
Appropriation (indefinite)—Upward reestimate .......
62.50
69.00
69.00
69.00

2006 actual

600 ................... ...................
220 ................... ...................
1,807
474
500
7 ................... ...................
4,900
4,702 ...................

Appropriation (total mandatory) ...........................
6,934
5,176
500
Spending authority from offsetting collections:
Offsetting collections (cash)—negative subsidy ................... ................... ...................
Offsetting collections (cash)—downward reestimate .................................................................
501 ................... ...................
Offsetting collections (cash)—downward reestimate, interest ...................................................
22 ................... ...................

2007 est.

Enacted/requested:
Budget Authority .....................................................................
7,011
5,176
Outlays ....................................................................................
6,842
5,529
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

7,011
6,842

5,176
5,529

2008 est.

500
525
9
6

509
531

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:
115001 Stafford ..........................................................................
115002 Unsubsidized Stafford ....................................................
115003 PLUS ...............................................................................
115004 Consolidation .................................................................
115999 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
132001 Stafford ..........................................................................
132002 Unsubsidized Stafford ....................................................
132003 PLUS ...............................................................................
132004 Consolidation .................................................................
132999 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
133001 Stafford ..........................................................................
133002 Unsubsidized Stafford ....................................................
133003 PLUS ...............................................................................
133004 Consolidation .................................................................
133999 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
134001 Stafford ..........................................................................
134002 Unsubsidized Stafford ....................................................
134003 PLUS ...............................................................................
134004 Consolidation .................................................................
134999 Total subsidy outlays .....................................................
Direct loan upward reestimates:
135001 Stafford ..........................................................................
135002 Unsubsidized Stafford ....................................................
135003 PLUS ...............................................................................

2006 actual

2007 est.

2008 est.

6,174
5,497
2,416
22,218

6,557
5,812
2,606
4,528

6,975
6,226
2,888
5,014

36,305

19,503

21,103

10.65
¥7.56
¥6.05
7.70

11.06
¥7.60
¥4.91
7.04

11.56
¥7.12
¥4.90
5.56

4.98

2.43

2.37

658
¥416
¥146
1,711

725
¥442
¥128
319

806
¥443
¥142
279

1,807

474

500

553
¥343
¥118
1,695

630
¥382
¥129
321

710
¥394
¥130
275

1,787

440

461

1,785
129
33

382 ...................
732 ...................
166 ...................

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
135004 Consolidation .................................................................

3,124

3,571 ...................

135999 Total upward reestimate budget authority ....................
Direct loan downward reestimates:
137001 Stafford ..........................................................................
137002 Unsubsidized Stafford ....................................................
137003 PLUS ...............................................................................
137004 Consolidation .................................................................

5,071

4,851 ...................

¥51
¥245
¥76
¥322

137999 Total downward reestimate budget authority ...............

¥694

¥157
¥45
¥61
¥870

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

¥1,133 ...................

The Federal Government operates two major student loan
programs: the Federal Family Education Loan (FFEL) program and the William D. Ford Federal Direct Loan (Direct
Loan) program. For 2008, the President is committed to improving the efficiency of both programs and allowing individual institutions to choose which of these two programs
best meets their needs and the needs of their students.
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. This section also concludes with a comprehensive discussion of the Administration’s policy proposals
for the Federal student financial aid programs.
From its inception in 1965 through 2006, the FFEL program has provided $636 billion in loans to postsecondary students and their parents. Since July 1, 1994, the Direct Loan
program has provided $176 billion in new and consolidation
loans to students and parents. Taken together, the FFEL
and Direct Loan programs will make nearly $67 billion in
new loans available in 2007. 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, as part of the overall Federal
effort to expand 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 collection of some defaulted loans, default
avoidance activities, and counseling to schools, students, and
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 of 1993. Under this program, the Federal Government provides loan funds to postsecondary institutions directly. The Direct Loan program began operation in academic
year 1994–1995 with 7 percent of overall loan volume and
is expected to account for 20 percent in academic year 2008–
2009. 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, 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 Stafford Loans made on or after July 1, 2006, the
borrower interest rate is fixed at 6.8 percent. For most loans
made immediately prior to July 1, 2006, the borrower interest
rate equals the 91-day Treasury bill rate plus 1.7 percent
during in-school, grace, and deferment periods, and the 91day Treasury bill plus 2.3 percent at all other times, with
a cap of 8.25 percent, 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 borrower

335

interest rate as Stafford loans, but have no interest subsidy.
For most PLUS loans made prior to July 1, 2006, the borrower interest rate equals the 91-day Treasury bill rate plus
3.1 percent, with a cap of 9 percent and no interest subsidy.
The fixed borrower interest rate on PLUS loans made on
or after July 1, 2006, is 7.9 percent for Direct Loans and
8.5 percent for FFEL.
In the FFEL program, lenders may receive an 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 marketyield formulas. For new Stafford and Unsubsidized Stafford
loans, for example, the Federal Government must pay lenders
a special allowance if the average 3-month commercial paper
rate for a given quarter plus 2.34 percent-or 1.74 percent
during in-school, grace, or deferment periods-is higher than
the current interest rate charged borrowers. For periods when
the borrower interest rate exceeds the special allowance rate
on loans made on or after April 1, 2006, lenders remit the
difference to the government.
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. The interest rate for new FFEL
and Direct Consolidation loans equals the weighted average
of the interest rate on the loans consolidated, rounded up
to the nearest one-eighth of one percent. Lenders may choose
to offer a lower rate. Interest rates for all new FFEL and
Direct Consolidation Loans are capped at 8.25 percent. The
Higher Education Reconciliation Act of 2005 eliminated the
practice of in-school loan consolidation and revised the circumstances under which a FFEL borrower could obtain a
Direct Consolidation Loan.
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 and FFEL lenders have the option of paying some
or all of a borrower’s origination fee for Stafford Loan borrowers. Direct Loan borrowers are charged an origination fee
equal to 3 percent of principal. The Higher Education Reconciliation Act of 2005 includes phased reductions that eliminate FFEL origination fees by July 1, 2010, and lowers Direct
Loan fees to 1 percent by the same date; the Act also requires
guaranty agencies to collect the insurance premium. Borrowers in both programs may be offered financial incentives
to encourage prompt repayment.
Loan limits are also identical across the two programs.
Loans made under both programs are discharged when borrowers die, are totally and permanently disabled, or, under
some circumstances, declare bankruptcy.
Under both programs, new borrowers after October 1, 1998,
who are employed as teachers in schools serving low-income
populations for five consecutive, complete school years, qualify
for up to $5,000 in loan forgiveness; this benefit is increased
to $17,500 for mathematics, science, and special education
teachers considered highly qualified under criteria established
in the No Child Left Behind Act of 2001.
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).
FFEL borrowers may choose from among four repayment
plans. Repayment periods under standard, graduated, and
income-sensitive repayment may not exceed 10 years. An ex-

336

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

FEDERAL DIRECT STUDENT LOAN PROGRAM PROGRAM ACCOUNT—
Continued

tended repayment plan of up to 25 years is available for
new borrowers with outstanding loans totalling more than
$30,000. FFEL borrowers may change repayment plans annually.
Student Aid Policy Proposals. There is a broad national
consensus, highlighted in the recent report of the Secretary
of Education’s Commission on the Future of Higher Education, that rapidly rising college costs are a growing barrier
to higher education for many students and families. The
President proposes a package of reforms to address this problem by substantially increasing need-based grant and loan
assistance, streamlining Federal student aid programs to
make them simpler for students and parents to negotiate
and schools to administer, and restructuring the student loan
programs to increase efficiency and eliminate excessive or
unnecessary subsidies. These proposals will raise the maximum Pell Grant to $5,400 over five years, expand the Academic Competitiveness/SMART Grant program, and increase
student loan limits. This comprehensive package of proposals
is budget neutral.
Federal Pell Grants. The centerpiece of the Administration’s
budget and reauthorization proposal is designed to address
the financial need of low-income students pursuing a postsecondary education. The Administration proposes to assist these
students by investing $19.8 billion in new mandatory funding
for the Pell Grant program from 2008–2017. These funds
would be used to increase the maximum grant award by
$550 in 2008 and $200 a year for the next four years, to
$5,400 in award year 2012–13. The Administration proposes
to fund this proposal through mandatory savings generated
by other student aid policy proposals. The cost of operating
the Pell Grant program at the current maximum award level
of $4,050, together with program changes discussed below,
would continue to be funded through discretionary appropriations. While Pell Grants have been very successful in ensuring
access to postsecondary education for low-income students,
the Administration is proposing several changes to increase
the program’s effectiveness and improve its overall operation.
Pell Grants would be made available year-round at eligible
two- and four-year degree granting institutions, giving students a more convenient option for accelerating their studies
and promptly completing their educations. As a further incentive for timely completion, Pell Grant eligibility would be
limited to the equivalent of 16 semesters. Lastly, the Administration proposes to eliminate the Pell Grant award rule related to tuition sensitivity. This rule limits the amount of
support that students with greatest need receive while attending low-cost institutions.
Academic Competitiveness/SMART Grants. Currently,
needy students who have completed a rigorous program of
study in high school and meet other eligibility criteria are
eligible for Academic Competitiveness Grants (ACG) of up
to $750 and $1,300 in their first and second years of college,
respectively. The Administration proposes to increase these
amounts by 50 percent, to $1,125 and $1,950, at a mandatory
cost of $260 million in 2008 and $1.0 billion over 2008–2012.
Congress provided that ACG/SMART sunsets at the academic
year 2010–11 (June 30, 2011). The Administration is dedicated to continue providing grants to students served by these
programs. Program evaluations and PART assessments of
these new programs, which only began operation on July 1,
2006, are needed to inform how best to serve these students
going forward from 2010–11.
Campus-Based Programs. The Secretary of Education’s
Commission on the Future of Higher Education found that
the Federal student aid programs were needlessly complex
and duplicative. Accordingly, the Administration proposes
eliminating the duplicative and poorly allocated Supplemental

THE BUDGET FOR FISCAL YEAR 2008

Educational Opportunity Grant (SEOG) and Perkins Loan
programs. No funds are included for the Leveraging Educational Assistance Partnership program. The Administration
believes it would be most effective to consolidate Federal
grant efforts in the more equitably distributed and far larger
Pell Grant program.
The Federal portion of Perkins Loan revolving funds held
by participating institutions would also be recalled. With the
number of Perkins Loan institutions declining from 3,338 in
academic year 1983–84 to 1,315 in 2004–05 and with less
than 3 percent of students enrolled in postsecondary education receiving Perkins Loans each year, the Administration
also believes the federal share of funds held by this small
group of institutions would better serve students if invested
in Pell Grants. Institutions would retain their own contributions into Perkins Loan revolving funds. Recalling the federal
portion of the Perkins Loan funds, less amounts needed to
support statutory loan forgiveness benefits, will provide $3.2
billion in savings. These savings would help offset the cost
of increases in need-based aid and higher loan limits which
are available to eligible students regardless of the institutions
they attend.
The 2008 Budget includes $980 million for Work-Study,
which would generate $1.2 billion in new aid to over 880,000
students.
Student Loans. The student loan programs currently provide subsidies that are higher than needed to ensure lender
participation in the FFEL program, and that loans are available to all eligible students under the current structure, while
exposing lenders and other intermediaries to minimal financial risk. Operational efficiencies that have benefited these
participants have not been matched by comparable reductions
in Federal subsidies. The 2008 Budget includes a comprehensive package of proposals to make student loan programs
more efficient, cost-effective vehicles for helping students finance their postsecondary educations. Savings generated from
these proposals would in large part be reinvested in benefits
for students in the Pell Grant, ACG/SMART Grant, and student loan programs. To help students meet rising higher education costs, the Administration is proposing to increase annual subsidized loan limits by $2,000 for third- and fourthyear students, as well as increases in overall aggregate loan
limits. The Administration also proposes to standardize PLUS
Loan interest rates, which were inadvertantly set at different
levels for FFEL and Direct Loans in the Higher Education
Reconciliation Act of 2005, at a fixed rate of 8.3 percent.
The Administration proposes to reduce lender interest subsidy payments by 50 basis points and increase the lender
origination fee paid on new consolidation loans to 1 percent
from .5 percent; both these changes would recapture excess
earnings resulting from the basic program structure. To encourage lenders to continue to strengthen default prevention
efforts and in recognition of the strong repayment record associated with student loans today, the Administration proposes
to reduce the amount of loan principal insured against default
from 97 percent to 95 percent, as well as reduce the amount
insured for lenders identified as exceptional performers from
99 percent to 97 percent. Proposals affecting lenders will reduce Federal costs by $14.9 billion over 2008–2012.
The Administration expects guaranty agencies to operate
more efficiently in the future; to better capture the benefits
of this increased efficiency, the basis for agency account maintenance fee payments would be shifted from the balance of
loans guaranteed to a cost-per-unit formula. The Administration would also reduce the amount guaranty agencies may
retain from collections on most defaulted loans from 23 percent to 16 percent, roughly the average paid by the Department of Education to private collection agents. Overall,
changes to the guaranty agency system would reduce Federal
costs by a combined $3.9 billion over 2008–2012.

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

In total, the Administration proposes redirecting $18.8 billion from the loan programs to grant aid for needy students
over the same period.
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 assuming passage of the President’s budget and legislative request.
Funding Levels
(in thousands of dollars)
2006

Program Cost:
FFEL:
Liquidating1 ............................................................................
Program:
Regular ...............................................................................
Consolidation ......................................................................
Net Reestimate of Prior Year Costs ...................................
Net Modification2 ...............................................................

(553,562)

2007

2008

(747,495)

(690,939)

4,629,364 4,452,007
12,644,425 1,408,255
9,084,333 (3,159,611)
1,709,540
0

4,444,345
(582,961)
0
2,804,433

Subtotal, Program ..........................................................

28,067,662

2,700,651

27,514,100

1,953,156

366,012

95,790
1,710,786
4,377,453
7,291

155,452
318,770
3,717,563
0

222,001
287,248
0
0

Total, Direct Loans .........................................................
Total, FFEL and Direct Loans ........................................
Program Cost Outlays:
FFEL:
Liquidating1 ............................................................................
Program:
Regular ...............................................................................
Consolidation ......................................................................
Net Reestimate of Prior Year Costs ...................................
Net Modification2 ...............................................................

6,191,320
33,705,420

4,157,808
6,144,941

509,249
875,261

(825,314)

(747,495)

(690,939)

Number of Loans
(in thousands)
2006 actual

2007 est.

2008 est.

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

5,706
4,585
691

5,913
4,786
797

6,090
4,976
840

Subtotal ..............................................................................
Consolidation ..........................................................................

10,982
2,622

11,496
992

11,906
1,137

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

13,604

12,487

13,043

1,513
1,091
237

1,503
1,094
242

1,547
1,133
255

Subtotal ..............................................................................
Consolidation ..........................................................................

2,841
756

2,839
200

2,935
220

Total, Direct Loans .............................................................
Total, All Loans ..................................................................

3,596
17,200

3,040
15,527

3,155
16,198

1,056,951

Total FFEL ..................................................................
Direct Loans:
Program:
Regular ...............................................................................
Consolidation ......................................................................
Net Reestimate of Prior Year Costs ...................................
Net Modification2 ...............................................................

337

Average Loan Size (in whole dollars)

3,876,499 3,862,234 3,849,169
12,461,466 1,444,229
(575,839)
9,084,333 (3,159,611)
0
1,709,540
0 (2,804,433)

Subtotal, Program ..........................................................

27,131,838

2,146,852

468,897

Total, FFEL .................................................................
Direct Loans:
Program:
Regular ...............................................................................
Consolidation ......................................................................
Net Reestimate of Prior Year Costs ...................................
Net Modification2 ...............................................................

26,306,524

1,399,357

119,513
320,732
3,717,563
0

183,029
283,359
0
0

Total, Direct Loans .........................................................
Total, FFEL and Direct Loans ........................................

6,172,223
32,478,747

4,791,479
5,557,165

466,388
244,346

2007 est.

2008 est.

3,480
4.377
10,678

3,621
4,552
11,557

3,895
4,806
12,152

Weighted Average, without Consolidations ........................

4,308

4,558

4,858

Consolidation ..........................................................................

27,465

27,075

28,040

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

8,771

6,347

6,879

3,704
4,386
9,675

3,954
4,715
10,300

4,290
4,987
10,834

Weighted Average, without Consolidations ........................

4,463

4,788

5,128

Consolidation ..........................................................................

25,607

22,292

22,673

Weighted Average, Direct Loans ........................................
Weighted Average, All Loans ..............................................

8,905
8,799

5,942
6,268

6,353
6,777

(222,042)

92,105
1,695,374
4,377,453
7,291

2006 actual

1 Liquidating

Summary of Subsidy and Default Rates

account reflects loans made prior to 1992.

2 Reflects

the cost or savings associated with policy changes, including those contained in the Higher Education
Reconciliation Act of 2006, that would affect the terms of existing loans.

Summary of Loans Available
(net commitments in millions of dollars)1
2006 actual

2007 est.

2008 est.

19,856
20,068
7,383

21,410
21,785
9,208

23,722
23,913
10,210

Subtotal ..............................................................................
Consolidation ..........................................................................

47,307
72,010

52,402
26,853

57,845
31,882

119,316

79,255

89,727

5,604
4,784
2,288

5,944
5,159
2,493

6,637
5,650
2,763

Subtotal ..............................................................................
Consolidation ..........................................................................

12,677
19,347

13,596
4,466

15,050
4,996

Total, Direct Loans .............................................................
Total, All Loans ..................................................................

32,024
151,340

18,062
97,317

20,046
109,773

1 Net

commitments equal gross commitments minus loan cancellations.

2006 actual

Subsidy Rates (in percent)1
FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation ..........................................................................
Weighted Average, FFEL .....................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation ..........................................................................
Weighted Average, Direct Loans ........................................
Default Rates (in percent)2
FFEL:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation ..........................................................................
Weighted Average, FFEL .....................................................
Direct Loans:
Stafford ...................................................................................
Unsubsidized Stafford .............................................................
PLUS ........................................................................................
Consolidation ..........................................................................
Weighted Average, Direct Loans ........................................

2007 est.

2008 est.

17.99
0.90
0.10
17.07
13.12

18.03
0.01
–0.28
5.22
6.65

17.33
–0.95
–0.55
–1.82
3.88

8.80
–9.07
–5.88
4.45
2.35

11.06
–7.60
–4.91
7.04
2.43

11.46
–7.13
–5.66
5.67
2.35

12.30
11.13
5.20
13.31
12.27

12.45
11.02
5.22
13.87
11.70

12.67
10.92
5.22
13.75
11.74

12.35
12.41
5.49
13.57
12.60

12.73
12.49
5.50
32.90
16.65

12.84
12.40
5.50
32.55
16.62

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 two-year rates tend to be lower than those included in this table.

FFEL program payments are made to lenders (interest subsidies, loan defaults and discharges) and guaranty agencies
(default collection costs, administrative services). These pay-

338

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008

FEDERAL DIRECT STUDENT LOAN PROGRAM PROGRAM ACCOUNT—
Continued

Student Loan Program Costs: Comparative Analysis Including Program and
Administrative Activities

ments are partially offset by borrower origination fees and
lender fees for originations and an annual consolidation loan
holder fee. In Direct Loans, cash outflows are primarily payments to Treasury. Cash inflows include principal and interest payments on outstanding Direct Loans.
The following table shows government payments to and
from lenders, guaranty agencies, and borrowers for specific
years, regardless of when loans were originated. These flows
do not reflect long-term costs to the government, nor the
value of outstanding loan assets: these are reflected in credit
reform subsidy estimates. For example, collections on defaulted FFEL loans due to Consolidation produce a currentyear cash inflow and a long-term cost associated with redefault risk and future lender interest subsidy payments.
The Federal Credit Reform Act of 1990 accounts for differences in the amount and timing of cash flows among direct
and guaranteed loan programs to make cost estimates for
these programs comparable with each other and other federal
programs.

(expressed as percentages)
2006 actual

(in thousands of dollars)
2006 actual

2007 est.

2008 est.

FFEL:
Payments to lenders
Interest benefits ......................................................................
Special allowance payments ..................................................
Default claims ........................................................................
Loan discharges ......................................................................
Teacher loan forgiveness ........................................................

2,654,526
7,343,620
4,624,153
989,333
31,179

3,381,876
7,271,748
5,556,555
1,450,053
24,044

3,988,301
6,653,173
6,045,496
1,592,778
139,734

Administrative payments to guaranty agencies .........................

708,192

1,008,592

14.68
0.90
–5.83
3.37

7.21
0.60
–4.18
3.03

4.65
0.27
–4.10
3.05

Total ...............................................................................
Federal administrative costs ..................................................

13.12
0.69

6.65
0.37

3.88
0.37

Total ...............................................................................
Direct Loans
Program costs:1
Interest subsidies and income, net ...................................
Net defaults ........................................................................
Fees ....................................................................................
Other ...................................................................................

13.81

7.02

4.25

–5.02
2.68
–1.31
6.01

–5.67
3.46
–2.36
7.01

–6.21
3.46
–2.04
7.13

Total ...............................................................................
Federal administrative costs ..................................................

2.35
1.50

2.43
1.50

2.35
1.50

Total adjusted cost ........................................................

3.85

3.93

3.85

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

846,131

(1,301,986) (1,091,978)
(870,819)
(561,699)
(390,696)
(575,235)
(1,848,638) (2,249,586) (2,415,140)
(3,896,378) (4,653,022) (5,300,446)
135,318
78,828
76,813
227,643
225,101
221,884
9,105,262 10,611,516 10,402,670
32,219,339
(2,302,134)
(30,141,890)
(392,799)
(750,166)
127,402
375,284
(864,964)
(32,219,339)
4,579,074
22,775,795
(4,864,471)
(5,729,434)

2008 est.

1 Fees primarily reflect borrower origination fees and, in FFEL, lender origination and consolidation loan holder
fees. Other primarily reflects loan discharges due to death, disability, or bankruptcy.
Totals may not add due to rounding.

Selected Program Costs and Offsets

Fees paid to the Department of Education
Borrower origination fees ........................................................
Lender origination fees ...........................................................
Loan holder fees .....................................................................
Other Major Transactions
Net default collections ............................................................
Contract collection costs ........................................................
Federal administrative costs ..................................................
Net Cash Flow, FFEL ...................................................................
Direct Loans
Loan disbursements to borrowers ..........................................
Borrower interest payments ....................................................
Borrower principal payments ..................................................
Borrower origination fees ........................................................
Net default collections ............................................................
Contract collection costs ........................................................
Federal administrative costs ..................................................
Net Operating Cash Flows ......................................................
Loan capital borrowings from Teasury ...................................
Net interest payments to Treasury .........................................
Principal payments to Treasury ..............................................
Subtotal Treasury activity .......................................................
Net Cash Flow, Direct Loans .......................................................

2007 est.

FFEL
Program costs:1
Interest subsidies ...............................................................
Net defaults ........................................................................
Fees ....................................................................................
Other ...................................................................................

17,842,953
(2,821,412)
(10,596,025)
(409,917)
(1,741,039)
150,821
355,565
2,810,946
(17,872,953)
5,596,934
9,613,663
(2,662,356)
148,589

19,750,927
(2,932,800)
(11,426,266)
(408,546)
(1,984,007)
160,004
353,161
3,512,474
(19,750,927)
5,981,416
10,379,899
(3,389,612)
122,862

Details may not sum to total due to rounding.

The following chart compares total FFEL and Direct Loan
costs on a subsidy rate basis: program costs calculated under
the Federal Credit Reform Act of 1990 and comparably projected estimates of Federal administrative costs, including expenses related to FFEL program oversight and servicing the
Direct Loan portfolio. In 2006, Federal administrative costs
include account maintenance fees payable to guaranty agencies; under the Higher Education Reconciliation Act of 2005,
starting in 2007, these payments are part of FFEL program
payments and will be reflected in the program subsidy rates.
As with any long-term projection, the comparison is based
on assumed future interest rates, borrower characteristics,
administrative costs, and other factors over the life of the
loan cohort. To the degree actual conditions differ from projections, estimated subsidy rates will change.

Loan Disbursement and Subsidy Costs
Total Subsidy Costs—1992–2007
FFEL

Original Subsidy Costs ..................................................................................
Cumulative Reestimates ................................................................................
Net Subsidy Costs ..........................................................................................
Total Disbursements ..................................................................................

+$71.6bil
+$1.2bil
+$72.8bil
$627.0bil

Direct Loans

+$0.4bil
+$10.7bil
+$11.1bil
$205.6bil

Changes in interest rate projections are a significant factor
in FFEL and Direct Loan reestimates; recent declines in interest rates below historical averages have accordingly been
a major driver in changes to program costs. Changes in borrower behavior (notably, prepayment of loans through consolidation and reduction in defaults) have also contributed to
these reestimates. The average lifetime subsidy rate for all
outstanding FFEL loans after the most recent reestimate is
11.60; the comparable Direct Loan rate is 5.42. For the oldest
loan cohorts, many of the subsidy costs have been expended
(e.g., in-school interest subsidies).
In 2006, the Administration implemented probabilistic scoring for the FFEL and Direct Loan programs. Before the 2007
Midsession Review, estimates for both the FFEL and Direct
Loan programs were developed using point estimates of the
Budget estimate of future interest rates. The updated method
factors in the probability that interest rate scenarios may
differ from current economic projections. In 2006, the FFEL
program recognized a $1.8 billion upward reestimate to reflect
the new methodology, while the Direct Loan program recognized a $0.2 billion upward reestimate. Changes to special
allowance formulas in the Higher Education Reconciliation
Act of 2005, and other changes to borrower interest rates,
mitigated interest rate risk in future cohorts, negating the
impact of the probabilistic method for those cohorts.
Object Classification (in millions of dollars)
Identification code 91–0243–0–1–502

Direct obligations:
Personnel compensation:
11.1
Full-time permanent ..................................................
11.3
Other than full-time permanent ...............................

2006 actual

2007 est.

2008 est.

49 ................... ...................
3 ................... ...................

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
11.5

Other personnel compensation ..................................

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

11.9
12.1
21.0
23.1
23.3
24.0
25.1
25.2
25.3

53
13
3
7
4
6
5
18

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

25.6
25.7
26.0
31.0
32.0
41.0

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 ................................................................
Other purchases of goods and services from Government accounts ...........................................................
Training ..........................................................................
Operation and maintenance of equipment ...................
Supplies and materials .................................................
Equipment ......................................................................
Land and structures ......................................................
Grants, subsidies, and contributions ............................

9
3
476
1
8
2
6,934

...................
...................
...................
...................
...................
...................
5,176

...................
...................
...................
...................
...................
...................
500

99.9

Total new obligations ................................................

7,542

5,176

500

132999 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
133001 Stafford ..........................................................................
133002 Unsubsidized Stafford ....................................................
133003 PLUS ...............................................................................
133004 Consolidation .................................................................
133999 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
134001 Stafford ..........................................................................
134002 Unsubsidized Stafford ....................................................
134003 PLUS ...............................................................................
134004 Consolidation .................................................................

1001

Direct:
Civilian full-time equivalent employment .....................

FEDERAL

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

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

33
¥10
¥22
8

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

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

15
¥5
¥13
9

134999 Total subsidy outlays ..................................................... ................... ...................

FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT
Program and Financing (in millions of dollars)

2006 actual

2007 est.

Identification code 91–4253–0–3–502

2008 est.

2006 actual

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)

19,503
5,597

21,103
5,974

Direct Program by Activities—Subtotal (1 level)
Interest rate rebate, Stafford ........................................
Interest rate rebate, Unsubsidized Stafford ..................
Interest rate rebate, PLUS .............................................

42,810
82
70
33

25,100
86
75
36

27,077
94
81
40

185
26
127

197
10
150

215
12
160

501
22

940 ...................
45 ...................
985 ...................

00.01

Obligations by program activity:
Direct Loan Subsidy ....................................................... ................... ...................

10.00

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

08.04

Direct Program by Activities—Subtotal (1 level)
Consolidation loans-Payment of Orig. Services ............
Payment of contract collections ....................................
Payment of downward reestimate to receipt account
(fy07) .........................................................................
Interest on downward reestimate ..................................

08.91

Direct Program by Activities—Subtotal (1 level)

523

22.00
23.95

9
¥9

10.00

Total new obligations ................................................

43,671

24.40

2007 est.

2008 est.

Unobligated balance carried forward, end of year ................... ................... ...................

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation -federal administration ......................
60.00
Appropriation (indefinite)—loan subsidy .................
60.00
Appropriation—upward modification ........................
60.00
Appropriation (indefinite)—Upward reestimate .......

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

................... ...................
...................
9
................... ...................
................... ...................

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
1,697
New financing authority (gross) ....................................
49,593
Resources available from recoveries of prior year obligations .......................................................................
3,396
22.60 Portion applied to repay debt ........................................
¥4,536
22.70 Balance of authority to borrow withdrawn .................... ...................
21.40
22.00
22.10

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

9
¥6

Obligated balance, end of year ................................ ................... ...................

Outlays (gross), detail:
86.97 Outlays from new mandatory authority ......................... ................... ...................

9
6

23.90
23.95

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

24.40

62.50

2008 est.

36,305
6,505

02.91
03.01
04.01
08.02

2006 actual

2007 est.

Obligations by program activity:
00.01 Direct Loan Obligations .................................................
00.02 Interest payment to Treasury .........................................
00.91
02.01
02.02
02.03

578 ................... ...................

DIRECT STUDENT LOAN PROGRAM PROGRAM ACCOUNT

Identification code 91–0243–4–1–502

¥0.02

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

Employment Summary
Identification code 91–0243–0–1–502

339

Unobligated balance carried forward, end of year

New financing authority (gross), detail:
Mandatory:
67.10
Authority to borrow ....................................................
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................
69.10
Change in uncollected customer payments from
Federal sources (unexpired) .............................
69.47
Portion applied to repay debt ...............................

50,150
¥43,671

26,442

27,464

6,479 ...................
26,442
27,464
4,015
5,029
¥5,926 ...................
¥4,568
¥5,029
26,442
¥26,442

27,464
¥27,464

6,479 ................... ...................

35,073

20,030

20,627

42,208

20,711

17,205

¥4
¥27,684

17
¥14,316

15
¥10,383

69.90

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

14,520

6,412

6,837

70.00

89.00
90.00

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

49,593

26,442

27,464

72.40
73.10
73.20
73.45
74.00

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total financing disbursements (gross) .........................
Recoveries of prior year obligations ..............................
Change in uncollected customer payments from Federal sources (unexpired) ............................................

8,658
43,671
¥39,558
¥3,396

9,379
26,442
¥24,615
¥4,015

7,174
27,464
¥25,610
¥5,029

¥17

¥15

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 91–0243–4–1–502

2006 actual

2007 est.

Direct loan levels supportable by subsidy budget authority:
115001 Stafford .......................................................................... ................... ...................
115002 Unsubsidized Stafford .................................................... ................... ...................
115004 Consolidation ................................................................. ................... ...................
115999 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
132001 Stafford ..........................................................................
132002 Unsubsidized Stafford ....................................................
132003 PLUS ...............................................................................
132004 Consolidation .................................................................

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

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

2008 est.

347
134
52

74.40

Obligated balance, end of year ................................

9,379

7,174

3,984

87.00

Outlays (gross), detail:
Total financing disbursements (gross) .........................

39,558

24,615

25,610

533
¥0.10
¥0.01
¥0.76
0.11

Offsets:
Against gross financing authority and financing disbursements:

340

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008

Program and Financing (in millions of dollars)—Continued
Identification code 91–4253–0–3–502

88.00
88.00
88.00
88.00
88.25
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.40
88.90

Offsetting collections (cash) from:
Direct Loan Subsidy ..............................................
Upward reestimate ................................................
Upward reestimate, interest .................................
Upward Modification .............................................
Interest on uninvested funds ...............................
Repayment of principal, Stafford .........................
Interest received on loans, Stafford .....................
Origination Fees, Stafford .....................................
Other fees, Stafford ..............................................
Repayment of principal, Unsubsidized Stafford
Interest received on loans, Unsubsidized Stafford
Origination Fees, Unsubsidized Stafford ..............
Other fees, Unsubsidized Stafford ........................
Repayment of principal, PLUS ..............................
Interest received on loans, PLUS ..........................
Origination Fees, PLUS .........................................
Other fees, PLUS ...................................................
Payment of principal, Consolidation ....................
Interest received on loans, Consolidation ............
Other fees, Consolidation .....................................

88.95

Total, offsetting collections (cash) .......................
Against gross financing authority only:
Change in receivables from program accounts .......

89.00
90.00

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

2006 actual

2007 est.

2008 est.

¥1,788
¥3,327
¥1,573
¥7
¥1,926
¥8,060
¥481
¥175
¥41
¥6,462
¥535
¥149
¥3
¥2,384
¥265
¥70
¥4
¥13,638
¥1,289
¥31

¥440
¥3,614
¥1,088
...................
...................
¥3,495
¥482
¥168
...................
¥2,843
¥381
¥146
...................
¥1,401
¥286
¥96
...................
¥4,172
¥2,099
...................

¥461
...................
...................
...................
...................
¥3,756
¥502
¥159
...................
¥3,211
¥412
¥138
...................
¥1,662
¥340
¥106
...................
¥4,289
¥2,169
...................

¥42,208

¥20,711

¥17,205

¥17

¥15

7,389
¥2,650

5,714
3,904

10,244
8,405

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

2006 actual

2007 est.

2008 est.

STAFFORD
Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
6,174
6,557
6,975
1150

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

1210
1231
1251
1261
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Adjustments: Capitalized interest .................................
Write-offs for default: Other adjustments, net .............

1290

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

6,174

6,557

6,975

24,928
22,524
24,724
5,509
5,767
6,234
¥8,059
¥3,495
¥3,756
122 ................... ...................
24
¥72
¥94
22,524

24,724

27,108

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
5,497
5,812
6,226
1150
1150

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

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................
1261 Adjustments: Capitalized interest .................................
1264 Write-offs for default: Other adjustments, net .............
1290

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

5,497

5,812

6,226

17,829
4,687
¥6,461
288
18

16,361
4,987
¥2,843
307
¥66

18,746
5,415
¥3,211
494
¥85

16,361

18,746

21,359

1210
1231
1251
1261
1264

4,922
2,191
¥2,384
31
5

4,765
2,399
¥1,401
1
¥62

5,702
2,658
¥1,662
7
¥68

1290

FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT—
Continued

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

4,765

5,702

6,637

CONSOLIDATION
Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
22,218
4,528
5,014
1150

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

1150

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

1210
1231
1251
1261
1264

1290

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

22,218

4,528

5,014

47,027
53,657
53,709
19,647
4,523
4,942
¥13,638
¥4,172
¥4,289
563 ................... ...................
58
¥299
¥305
53,657

53,709

54,057

The Balance Sheet, above, provides information on program
assets, liabilities, and net position consistent with the audited
financial statements.
Receivables, line 1106, are primarily upward reestimates
prepared for financial statements; an identical offsetting
amount is recorded in the Allowance for Subsidy, line 1405.
The value of total Department assets is unchanged but will
be reduced when reestimates developed for this budget are
executed. Differences between reestimates prepared for financial statements and for this budget result from updated economic (interest rates) and technical assumptions. Revised assumptions may significantly change reestimate amounts; differences will be reflected in subsequent financial statements.
Direct Loans receivable, line 1401 reflects the nominal unpaid principal balance, including capitalized interest. Interest
Receivable, line 1402, includes only non-capitalized interest.
A positive Allowance for Subsidy, line 1405, indicates the
outstanding portfolio (including the Financial Statements’ reestimates) has a negative subsidy, increasing the portfolio’s
net present value; the 2004 negative value represents the
reverse.
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.
Balance Sheet (in millions of dollars)
Identification code 91–4253–0–3–502

ASSETS:
Federal assets:
1101 Fund balances with Treasury .....................................................
Investments in US securities:
1106 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

2005 actual

2006 actual

4,913

8,621

4,150

4,631

94,707
3,121
–2,132

97,307
3,702
–8,405

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

95,696

92,604

PLUS
Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
2,416
2,606
2,888

1999

Total assets ..................................................................................
LIABILITIES:
Federal liabilities:
2101 Accounts payable .........................................................................
2103 Debt ...............................................................................................

104,759

105,856

388
104,371

426
105,430

1150

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

2999

Total liabilities .............................................................................

104,759

105,856

1150

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

4999

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

104,759

105,856

2,416

2,606

2,888

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION
FEDERAL DIRECT STUDENT LOAN PROGRAM FINANCING ACCOUNT

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT

(Legislative proposal, subject to PAYGO)

341

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

Program and Financing (in millions of dollars)

2006 actual

2007 est.

2008 est.

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Direct Loan Obligations ................................................. ................... ...................
00.02 Interest payment to Treasury ......................................... ................... ...................

533
7

00.91
02.01
02.02

Direct Program by Activities—Subtotal (1 level) ................... ...................
Interest rate rebate, Stafford ........................................ ................... ...................
Interest rate rebate, Unsubsidized Stafford .................. ................... ...................

540
3
1

02.91

Direct Program by Activities—Subtotal (1 level) ................... ...................

10.00

Total new obligations ................................................ ................... ...................

17,274
5,860
5,078
1,724 ................... ...................
6,998
183 ...................
2,375
372 ...................

10.00

Identification code 91–4253–4–3–502

Obligations by program activity:
00.02 Guaranteed loan subsidy ...............................................
00.04 Modification subsidy, upward ........................................
00.07 Upward reestimate, principal ........................................
00.08 Upward reestimate, interest ..........................................

28,371

6,415

5,078

28,371

6,415

5,078

632
¥632

802
¥802

622
¥622

28,371
¥28,371

6,415
¥6,415

5,078
¥5,078

544

Budgetary resources available for obligation:
22.00 New financing authority (gross) .................................... ................... ...................
23.95 Total new obligations .................................................... ................... ...................
24.40

Unobligated balance carried forward, end of year ................... ................... ...................

New financing authority (gross), detail:
Mandatory:
67.10
Authority to borrow ....................................................
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................
69.10
Change in uncollected customer payments from
Federal sources (unexpired) .............................
69.47
Portion applied to repay debt ...............................
69.90

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
544
¥544

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

525

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

3
3

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

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation .............................................................
28,371
6,415
5,078
Spending authority from offsetting collections:
69.00
Offsetting collections (cash)—downward reestimate .................................................................
303 ................... ...................
69.00
Offsetting collections (cash) ................................ ................... ................... ...................
69.27
Capital transfer to general fund ..........................
¥303 ................... ...................

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

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

69.90

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

70.00

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

72.40
73.10
73.20
73.40
73.45

74.40

Obligated balance, end of year ................................

2,247

1,999

2,148

¥3

86.97
86.98

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

26,125
1,310

4,417
1,444

2,931
1,376

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

27,435

5,861

4,307

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

70.00

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

544

73.10
73.20
74.00

Change in obligated balances:
Total new obligations .................................................... ................... ...................
Total financing disbursements (gross) ......................... ................... ...................
Change in uncollected customer payments from Federal sources (unexpired) ............................................ ................... ...................

544
¥294

74.40

Obligated balance, end of year ................................ ................... ...................

247

87.00

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ................... ...................

294

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

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Direct Loan Subsidy ..............................................
88.40
Repayment of principal, Stafford .........................
88.40
Interest received on loans, Stafford .....................
88.40
Origination Fees, Stafford .....................................
88.40
Other fees, Stafford ..............................................
88.40
Repayment of principal, Unsubsidized Stafford
88.40
Interest received on loans, Unsubsidized Stafford
88.40
Origination Fees, Unsubsidized Stafford ..............
88.40
Other fees, Unsubsidized Stafford ........................
88.40
Repayment of principal, PLUS ..............................
88.40
Interest received on loans, PLUS ..........................
88.40
Origination Fees, PLUS .........................................
88.40
Other fees, PLUS ...................................................
88.40
Payment of principal, Consolidation ....................
88.40
Interest received on loans, Consolidation ............
88.40
Other fees, Consolidation .....................................
88.90
88.95

89.00
90.00
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................
...................

¥6
...................
...................
¥4
...................
...................
...................
¥1
...................
...................
...................
...................
...................
¥1
¥1
...................

Total, offsetting collections (cash) ....................... ................... ...................
Against gross financing authority only:
Change in receivables from program accounts ....... ................... ...................

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

28,371

6,415

5,078

1,944
2,247
1,999
28,371
6,415
5,078
¥27,435
¥5,861
¥4,307
¥1 ................... ...................
¥632
¥802
¥622

¥303 ................... ...................

28,068
27,132

6,415
5,861

5,078
4,307

¥13

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

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

Summary of Budget Authority and Outlays
(in millions of dollars)
2006 actual

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

528
281

28,068
27,132

6,415
5,861

2008 est.

5,078
4,307
–1,208
–1,025

3,870
3,282

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

¥3

2007 est.

Enacted/requested:
Budget Authority .....................................................................
28,068
6,415
Outlays ....................................................................................
27,132
5,861
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

Guaranteed loan levels supportable by subsidy budget
authority:
215001 Stafford ..........................................................................
215002 Unsubsidized Stafford ....................................................
215003 PLUS ...............................................................................
215004 Consolidation .................................................................

2006 actual

22,728
23,702
7,358
81,788

2007 est.

24,840
25,819
10,425
26,978

2008 est.

26,863
28,031
11,560
32,014

342

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008

86.97

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

¥1,025

89.00
90.00

¥1,208
¥1,025

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT—Continued
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)—Continued
Identification code 91–0231–0–1–502

2006 actual

2007 est.

2008 est.

215999 Total loan guarantee levels ...........................................
Guaranteed loan subsidy (in percent):
232001 Stafford ..........................................................................
232002 Unsubsidized Stafford ....................................................
232003 PLUS ...............................................................................
232004 Consolidation .................................................................

135,576

88,062

98,468

18.55
1.66
0.27
15.46

18.03
0.01
¥0.28
5.22

18.14
¥0.01
0.00
0.65

232999 Weighted average subsidy rate .....................................
Guaranteed loan subsidy budget authority:
233001 Stafford ..........................................................................
233002 Unsubsidized Stafford ....................................................
233003 PLUS ...............................................................................
233004 Consolidation .................................................................

12.74

6.65

5.16

4,216
393
20
12,645

4,479
4,873
2
¥3
¥29 ...................
1,408
208

233999 Total subsidy budget authority ......................................
Guaranteed loan subsidy outlays:
234001 Stafford ..........................................................................
234002 Unsubsidized Stafford ....................................................
234003 PLUS ...............................................................................
234004 Consolidation .................................................................

17,274

5,860

5,078

3,425
410
41
12,461

3,755
116
¥9
1,444

4,108
¥1
¥10
210

234999 Total subsidy outlays .....................................................
Guaranteed loan upward reestimates:
235001 Stafford ..........................................................................
235002 Unsubsidized Stafford ....................................................
235003 PLUS ...............................................................................
235004 Consolidation .................................................................
235005 SLS .................................................................................

16,337

5,306

4,307

1,458
114 ...................
945 ................... ...................
104 ................... ...................
7,362
3,350 ...................
19
83 ...................

235999 Total upward reestimate budget authority ....................
9,888
Guaranteed loan downward reestimates:
237001 Stafford ..........................................................................
¥280
237002 Unsubsidized Stafford ....................................................
¥94
237003 PLUS ...............................................................................
¥44
237004 Consolidation .................................................................
¥386
237005 SLS ................................................................................. ...................
237999 Total downward reestimate subsidy budget authority

¥804

3,547 ...................
¥3,669
¥2,590
¥252
¥192
¥4

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

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
2006 actual

Identification code 91–0231–4–1–502

2007 est.

2008 est.

Obligations by program activity:
00.02 Guaranteed loan subsidy ............................................... ................... ...................
00.04 Modification, upward ..................................................... ................... ...................

¥1,217
9

10.00

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

¥1,208

22.00
23.95

¥1,208
1,208

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

¥1,208

73.10
73.20

¥1,208
1,025

74.40

Obligated balance, end of year ................................ ................... ...................

¥183

2006 actual

2007 est.

Guaranteed loan levels supportable by subsidy budget
authority:
215001 Stafford .......................................................................... ................... ...................
215002 Unsubsidized Stafford .................................................... ................... ...................
215004 Consolidation ................................................................. ................... ...................
215999 Total loan guarantee levels ...........................................
Guaranteed loan subsidy (in percent):
232001 Stafford ..........................................................................
232002 Unsubsidized Stafford ....................................................
232003 PLUS ...............................................................................
232004 Consolidation .................................................................
232999 Weighted average subsidy rate .....................................
Guaranteed loan subsidy budget authority:
233001 Stafford ..........................................................................
233002 Unsubsidized Stafford ....................................................
233003 PLUS ...............................................................................
233004 Consolidation .................................................................
233999 Total subsidy budget authority ......................................
Guaranteed loan subsidy outlays:
234001 Stafford ..........................................................................
234002 Unsubsidized Stafford ....................................................
234003 PLUS ...............................................................................
234004 Consolidation .................................................................

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

2008 est.

702
294
17
1,013

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

¥0.81
¥0.94
¥0.55
¥2.47

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

¥1.28

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

¥96
¥266
¥64
¥791

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

¥1,217

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

¥68
¥146
¥34
¥786

234999 Total subsidy outlays ..................................................... ................... ...................

¥1,034

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

¥6,707 ...................

As required by the Federal Credit Reform Act of 1990,
this program account records the subsidy costs associated
with Federal Family Education Loans (FFEL), formerly guaranteed student loans (GSL), committed in 1992 and beyond.
Beginning with the 1993 cohort, mandatory administrative
costs, specifically contract collection costs, are included in the
FFEL subsidy estimates of each year’s cohort. 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.

Identification code 91–0231–4–1–502

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

FEDERAL FAMILY EDUCATION LOAN PROGRAM FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 91–4251–0–3–502

2006 actual

2007 est.

2008 est.

Obligations by program activity:
01.01 Default claims ...............................................................
01.02 Special allowance ..........................................................
01.03 Interest benefits .............................................................
01.04 Death, disability, and bankruptcy claims .....................
01.05 Teacher loan forgiveness, other write-offs ....................
01.07 Contract collection costs ...............................................
01.08 Guaranty Agency Administrative Fees ...........................
01.09 Voluntary flexible agreement performance fee ..............

1,600
1,094
2,014
177
21
36
76
105

1,741
1,805
315
267
2,908
3,455
183
197
13
78
12
15
146
173
128 ...................

01.91
02.02
02.03
02.04
02.05
02.07
02.08
02.09

Subtotal, Stafford loans ............................................
Default claims ...............................................................
Special allowance ..........................................................
Death, disability, and bankruptcy claims .....................
Teacher loan forgiveness, other write-offs ....................
Contract collection costs ...............................................
Guaranty Agency Administrative Fees ...........................
Voluntary flexible agreement performance fee ..............

5,123
1,142
890
151
10
18
76
69

5,446
5,990
1,368
1,462
281
246
194
220
10
61
3
4
137
165
40 ...................

02.91
03.01
03.03
03.04
03.07
03.08
03.09

Subtotal, Unsubsidized Stafford loans .....................
Default claims ...............................................................
Special allowance ..........................................................
Death, disability, and bankruptcy claims .....................
Contract Collection Costs ..............................................
Guaranty Agency Administrative Fee .............................
Voluntary flexible agreement performance fee ..............

2,356
144
53
63
3
23
11

2,033
2,158
157
200
2
¥35
149
173
1
1
54
66
6 ...................

03.91
04.03
04.04
04.07
04.08

Subtotal, PLUS loans .................................................
Default claims ...............................................................
Death, disability and bankruptcy claims ......................
Contract collection costs ...............................................
Voluntary flexible agreement performance fee ..............

297
27
6
9
3

369
405
18
12
1 ...................
3
3
3 ...................

04.91
05.01
05.02
05.03

Subtotal, SLS loans ...................................................
Default claims ...............................................................
Special allowance ..........................................................
Interest benefits .............................................................

45
1,619
5,297
633

25
2,205
6,671
468

15
2,611
6,206
523

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

343

05.04
05.05
05.07
05.08
05.10

Death, disability, and bankruptcy claims .....................
575
906
989
Teacher loan forgiveness, other write-offs ....................
9 ................... ...................
Contract collection costs ...............................................
9
4
4
Voluntary flexible agreement performance fee ..............
150
38 ...................
Guaranty Agency Administrative Fee ............................. ...................
262
286

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2131 Guaranteed loan commitments exempt from limitation
22,728
24,840
26,863

05.91
08.02

8,292

2150
2199

08.04
08.05

Subtotal, Consolidations loans .................................
Payment of downward reestimate to Prog / receipt
account ......................................................................
Interest on downward reestimate ..................................
Downward Modification ..................................................

08.91

Downward Reestimate- Subtotal (1 level) ................

303

10.00

Total new obligations ................................................

16,416

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

10,554

10,619

162
3,582 ...................
127
133 ...................
14 ................... ...................
3,715 ...................
22,142

21,120
35,253

40,011
15,487

19,187

33,356
14,254

54 ................... ...................

23.90
23.95

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

56,427
¥16,416

55,498
¥22,142

47,610
¥19,187

24.40

Unobligated balance carried forward, end of year

40,011

33,356

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 ....................................................................
2264
Other adjustments, net .............................................
2210
2231
2251

69.90
70.00

105 ................... ...................
35,159
15,487
14,254
¥11 ................... ...................

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

35,148

15,487

14,254

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

35,253

15,487

22,728
22,728

24,840
24,591

26,863
26,594

74,601
19,505
¥33,209

59,099
20,729
¥8,272

69,611
22,695
¥10,528

¥1,600

¥1,749

¥1,826

¥177
¥21

¥183
¥13

¥197
¥78

2290

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

59,099

69,611

79,677

2299

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

59,099

68,915

78,880

28,423

New financing authority (gross), detail:
Mandatory:
60.00
Appropriation .............................................................
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................
69.27
Capital transfer to general fund ..........................

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

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

2,454
3,046
3,034
1,600
1,749
1,826
¥1,004
¥1,574
¥1,725
¥177
¥187
¥182
173 ................... ...................

14,254

Change in obligated balances:
72.40 Obligated balance, start of year ...................................
73.10 Total new obligations ....................................................
73.20 Total financing disbursements (gross) .........................
73.45 Recoveries of prior year obligations ..............................

2,071
3,531
4,763
16,416
22,142
19,187
¥14,902
¥20,910
¥19,822
¥54 ................... ...................

74.40

Obligated balance, end of year ................................

3,531

4,763

4,128

87.00

Outlays (gross), detail:
Total financing disbursements (gross) .........................

14,902

20,910

19,822

¥3,425
¥410
¥41
¥12,461
¥9,374
¥1,724
¥1,110
¥1,146
¥661
¥38
¥647
¥659
¥19
¥93
¥206
¥5
¥64
¥2
¥866
¥337
¥1,849
¥22

¥3,755
¥116
9
¥1,444
¥555
...................
¥2,143
¥1,575
¥554
...................
¥962
¥562
...................
¥115
¥231
...................
¥77
...................
¥1,022
¥135
¥2,250
...................

¥4,108
1
10
¥210
...................
...................
¥1,873
¥1,725
¥445
...................
¥1,125
¥472
...................
¥132
¥203
...................
¥70
...................
¥1,328
¥159
¥2,415
...................

88.90

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

¥35,159

¥15,487

¥14,254

89.00
90.00

94 ................... ...................
¥20,257
5,423
5,568

2006 actual

2007 est.

3,046

3,034

2,953

UNSUBSIDIZED STAFFORD
Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2131 Guaranteed loan commitments exempt from limitation
23,702
25,819
28,031
2150
2199

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

23,702
23,702

25,819
25,561

28,031
27,751

59,179
19,563
¥27,511

49,928
21,099
¥8,278

61,187
23,065
¥11,368

¥1,142

¥1,357

¥1,473

¥151
¥10

¥194
¥11

¥220
¥61

2290

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

49,928

61,187

71,130

2299

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

49,928

60,575

70,419

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

1,740
2,293
2,513
1,142
1,357
1,473
¥569
¥962
¥1,125
¥151
¥175
¥187
131 ................... ...................
2,293

2,513

2,674

PLUS
Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2131 Guaranteed loan commitments exempt from limitation
7,358
10,425
11,560
2150
2199

Status of Guaranteed Loans (in millions of dollars)

STAFFORD

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

2210
2231
2251

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Stafford loans .......................................................
88.00
Unsubsidized Stafford ...........................................
88.00
PLUS loans ............................................................
88.00
Consolidated loans ...............................................
88.00
Upward reestimate ................................................
88.00
Modification ..........................................................
88.25
Interest on uninvested funds ...............................
88.40
Stafford recoveries on defaults ............................
88.40
Stafford origination fees .......................................
88.40
Stafford other fees ................................................
88.40
Unsubsidized Stafford recoveries on default .......
88.40
Unsubsidized Stafford origination fees ................
88.40
Unsubsidized Stafford other fees .........................
88.40
PLUS recoveries on defaults .................................
88.40
PLUS origination fees ...........................................
88.40
PLUS other fees ....................................................
88.40
SLS recoveries on defaults ...................................
88.40
SLS other fees .......................................................
88.40
Consolidation recoveries on defaults ...................
88.40
Consolidation origination fees ..............................
88.40
Consolidation loan holders fee .............................
88.40
Consolidation other fees .......................................

Identification code 91–4251–0–3–502

2390

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

7,358
7,358

10,425
10,321

11,560
11,444

2210

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................

14,611

10,469

14,958

2008 est.

344

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008

FEDERAL FAMILY EDUCATION LOAN PROGRAM FINANCING
ACCOUNT—Continued
Status of Guaranteed Loans (in millions of dollars)—Continued
Identification code 91–4251–0–3–502

2231
2251

2006 actual

2007 est.

2008 est.

Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments:
Terminations for default that result in loans receivable .......................................................................
Terminations for default that result in claim payments ....................................................................

6,753
¥10,687

8,608
¥3,812

9,823
¥4,929

¥145

¥158

¥196

¥63

¥149

¥173

2290

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

10,469

14,958

19,483

2299

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

10,469

14,809

19,288

2261
2263

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

SLS
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 ....................................................................

312

276
¥42

¥27

292

201
¥37

¥20

293

143
¥22

¥14

¥6

¥1 ...................

201

143

107

2299

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

201

141

106

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

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2231 Disbursements of new guaranteed loans ......................
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 .............................................
2290

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

2299

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

4,237

4,694

5,209

As required by the Federal Credit Reform Act of 1990,
this nonbudgetary account records all cash flows to and from
the Government resulting from Federal Family Education
Loans (FFEL), formerly guaranteed student loans (GSL), committed in 1992 and beyond. The amounts in this account
are a means of financing and are not included in the budget
totals.

2005 actual

ASSETS:
Federal assets:
1101 Fund balances with Treasury .....................................................
Investments in US securities:
1106 Receivables, net ...........................................................................
Net value of assets related to post–1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans receivable, gross ..........................
1502 Interest receivable ........................................................................
1505 Allowance for subsidy cost (–) ..................................................
1599

23,191

43,542

524

551

8,566
1,691
–1,711

10,263
1,823
–2,847

8,546

9,239

32,261

53,332

1,761

951

....................
30,500

31
52,350

Net present value of assets related to defaulted guaranteed
loans .........................................................................................

Total assets ..................................................................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ..........................................
Non-Federal liabilities:
2201 Accounts payable .........................................................................
2204 Liabilities for loan guarantees ...................................................

2006 actual

1999

2999

Total liabilities .............................................................................

32,261

53,332

4999

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

32,261

53,332

FEDERAL FAMILY EDUCATION LOAN PROGRAM FINANCING ACCOUNT
(Legislative proposal, subject to PAYGO)
385
375
314
27
20
14
¥53
¥76
¥70
¥6
¥5
¥5
22 ................... ...................
375

314

253

CONSOLIDATION
Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2131 Guaranteed loan commitments exempt from limitation
81,788
26,978
32,014
2150
2199

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

Identification code 91–4251–0–3–502

291
312
292
145
158
196
¥79
¥115
¥132
¥63
¥63
¥63
18 ................... ...................

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

2390

3,696
4,237
4,694
1,619
2,154
2,594
¥746
¥1,022
¥1,329
¥575
¥675
¥750
243 ................... ...................

Balance Sheet (in millions of dollars)

2290

81,788
81,788

26,978
26,708

32,014
31,693

Program and Financing (in millions of dollars)
Identification code 91–4251–4–3–502

2006 actual

2007 est.

Obligations by program activity:
Stafford loans:
01.01
Default claims, Stafford ............................................
01.02
Special allowance ......................................................
01.03
Interest benefits ........................................................
01.08
Guaranty Agency Administrative Fees .......................

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

¥28
¥7
5
109

01.91

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

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

¥23
¥7
62

Subtotal, Unsubsidized Stafford loans ................. ................... ...................
Default claims, PLUS ..................................................... ................... ...................
PLUS loans:
Guaranty Agency Administrative Fees, PLUS ............ ................... ...................

32
¥3

02.02
02.03
02.08
02.91
03.01

138,457
72,036
¥4,686

203,604
27,021
¥13,630

213,935
31,845
¥15,189

03.09
03.91

Subtotal, Stafford loans .......................................
Unsubsidized Stafford loans:
Default claims, Unsubsidized Stafford .....................
Special allowance ......................................................
Guaranty Agency Administrative Fees .......................

2008 est.

¥7

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

¥10

¥2,154

¥2,594

¥575
¥906
¥989
¥9 ................... ...................
203,604

203,604

213,935

211,796

227,008

05.01
05.02
05.09

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

¥41
¥19
¥203

05.91
08.05

Subtotal, Consolidations loans ............................. ................... ...................
Downward Modification .................................................. ................... ...................

¥263
2,813

10.00

¥1,619

Direct Program by Activities—Subtotal (1 level)
Consolidation loans:
Default claims, Consolidation ...................................
Special allowance ......................................................
Guaranty Agency Administrative Fees .......................

Total new obligations ................................................ ................... ...................

2,651

22.00

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

¥947

224,738

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

DEPARTMENT OF EDUCATION

345

23.95

Total new obligations .................................................... ................... ...................

¥2,651

22.40

Capital transfer to general fund ...................................

¥339

¥243 ...................

24.40

Unobligated balance carried forward, end of year ................... ...................

¥3,598

23.90
23.95

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

443
¥200

155
¥155

24.40

Unobligated balance carried forward, end of year

New financing authority (gross), detail:
Mandatory:
60.00
Appropriation ............................................................. ................... ...................
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................ ................... ...................
69.27
Capital transfer to general fund .......................... ................... ...................
69.90

123
¥123

243 ................... ...................

12
¥823
¥136

Spending authority from offsetting collections
(total mandatory) ............................................. ................... ...................
Total new financing authority (gross) ...................... ................... ...................

¥947

73.10
73.20

2,651
¥2,081

74.40

Obligated balance, end of year ................................ ................... ...................

570

87.00

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ................... ...................

995
¥554

902
¥747

814
¥691

441

155

123

¥959

70.00

New budget authority (gross), detail:
Mandatory:
Spending authority from offsetting collections:
69.00
Offsetting collections (cash) ................................
69.27
Capital transfer to general fund ..........................

2,081

69.90

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Payments from program account:
88.00
Stafford loans .......................................................
88.00
Unsubsidized Stafford ...........................................
88.00
PLUS loans ............................................................
88.00
Consolidated loans ...............................................
88.00
Upward reestimate ................................................
88.00
Modification, Upward ............................................
88.25
Interest on uninvested funds ...............................
Student Loans: Stafford, Unsubsidized Stafford,
PLUS, SLS & Consolidation:
88.40
Stafford recoveries on defaults ............................
88.40
Stafford origination fees .......................................
88.40
Unsubsidized Stafford recoveries on default .......
88.40
Unsubsidized Stafford origination fees ................
88.40
PLUS recoveries on defaults .................................
88.40
SLS recoveries on defaults ...................................
88.40
Consolidation recoveries on defaults ...................
88.40
Consolidation origination fees ..............................

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

74.40

...................
68
...................
146
...................
34
...................
786
................... ...................
...................
¥9
...................
72

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

¥40
¥6
¥27
¥3
¥3
¥1
¥35
¥159

88.90

Total, offsetting collections (cash) ....................... ................... ...................
Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................
Financing disbursements ............................................... ................... ...................

¥124
2,904

Obligated balance, end of year ................................

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

170

155

123

¥255
¥3
¥245

¥285
¥3
¥215

¥257
¥3
¥194

¥316
¥53

¥231
¥27

¥208
¥25

¥55
¥1
¥19

¥66
¥1
¥16

¥60
¥1
¥14

¥48

¥58

¥52

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.40
Fed collections on defaulted loans, Stafford .......
88.40
Federal collections on bankruptcies, Stafford ......
88.40
Offsets against Federal tax refunds,Stafford .......
88.40
Reimbursements from guaranty agencies, Stafford ...................................................................
88.40
Other collections/ fees, Stafford ...........................
88.40
Federal collections on defaulted loans, PLUS/
SLS ....................................................................
88.40
Federal collections on bankruptcies, PLUS/SLS
88.40
Offsets against Federal tax refunds, PLUS/SLS
88.40
Reimbursements from guaranty agencies, PLUS/
SLS ....................................................................

23
51
51
200
155
123
¥170
¥155
¥123
¥2 ................... ...................

823

89.00
90.00

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Recoveries of prior year obligations ..............................

86.97

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

72.40
73.10
73.20
73.45

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

FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
2006 actual

2007 est.

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

¥995

¥902

¥814

89.00
90.00

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

¥554
¥825

¥747
¥747

¥691
¥691

Status of Guaranteed Loans (in millions of dollars)

Identification code 91–0230–0–1–502

88.90

2008 est.

Identification code 91–0230–0–1–502

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

2006 actual

2007 est.

2008 est.

1,276
¥203

978
¥100

800
¥41

¥82

¥65

¥50

¥13

¥10

2290

01.01
01.02
01.03
01.04
01.05
01.06

Obligations by program activity:
Interest benefits, net of origination fees ......................
Special allowance net of origination fees .....................
Default claims ...............................................................
Death, disability, and bankruptcy claims .....................
Contract collection costs ...............................................
Voluntary flexible agreements .......................................

01.91
02.01
02.02
02.05
02.06
02.07

Subtotal, Stafford loans ............................................
Default claims ...............................................................
Death, disability, and bankruptcy claims .....................
Contract collection costs ...............................................
Special allowance net of origination fees .....................
Voluntary flexible agreements .......................................

02.91

Subtotal, PLUS/SLS loans ..........................................

10.00

Total new obligations ................................................

200

155

123

21.40
22.00
22.10

339
441

243 ...................
155
123

8
4
82
13
53
5

7
4
2
2
59
46
13
10
47
43
4 ...................

165
132
105
9
8
6
5
5
4
9
9
8
5 ................... ...................
7
1 ...................

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

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

978

800

699

2299

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

978

800

699

8,005
82
¥415
¥13
¥148

7,511
65
¥404
¥12
¥47

7,113
50
¥365
¥11
¥43

7,511

7,113

6,744

793
¥131

648
¥66

569
¥26

¥9

¥8

¥7

2390

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

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

OFFICE OF FEDERAL STUDENT AID—Continued
Federal Funds—Continued

346

THE BUDGET FOR FISCAL YEAR 2008

FEDERAL FAMILY EDUCATION LOAN LIQUIDATING ACCOUNT—
Continued

with Disabilities Education Act, $594,262,000, of which $293,144,000
shall be available until September 30, 2009.

Status of Guaranteed Loans (in millions of dollars)—Continued

Identification code 91–0230–0–1–502

2263

2006 actual

2007 est.

2008 est.

Program and Financing (in millions of dollars)

Terminations for default that result in claim payments ....................................................................

¥5

¥4

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

648

569

532

Identification code 91–1100–0–1–503

2290

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Research, development, and dissemination ..................
00.02 Statistics ........................................................................
00.03 Regional educational laboratories .................................
00.04 Assessment ....................................................................
00.05 Research in special education ......................................
00.06 Statewide data systems ................................................
00.07 Special education studies and evaluations ..................

162
90
65
93
72
49
10

163
90
65
93
72
49
10

163
119
65
116
72
49
10

01.00
09.01

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

541
2

542
2

594
2

10.00

Total new obligations ................................................

543

544

596

21.40
22.00

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

25
520

2
544

2
596

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 for
1992 and beyond is recorded in corresponding program and
financing accounts.

23.90
23.95

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

545
¥543

546
¥544

598
¥596

24.40

Unobligated balance carried forward, end of year

Balance Sheet (in millions of dollars)

43.00
58.00

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

648

569

532

1,301
9
¥61
¥5
¥24

1,220
8
¥76
¥4
¥11

1,137
7
¥69
¥4
¥10

2390

1,220

1,137

1,061

2299

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

1Excludes

interest and premium collections on insured loans.

523
542
594
¥5 ................... ...................

2005 actual

518

542

594

70.00

Identification code 91–0230–0–1–502

Appropriation (total discretionary) ........................
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
Total new budget authority (gross) ..........................

520

544

596

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

758

520

552

86.90
86.93

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

90
303

139
643

152
412

87.00

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

393

782

564

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

¥2

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

518
391

542
780

594
562

2006 actual

1101
1701
1702
1703

ASSETS:
Federal assets: Fund balances with Treasury ..........................
Defaulted guaranteed loans, gross ............................................
Interest receivable ........................................................................
Allowance for estimated uncollectible loans and interest (–)

362
9,306
595
–6,736

295
8,730
336
–4,718

1704

Defaulted guaranteed loans and interest receivable, net .......

3,165

4,348

1799

Value of assets related to loan guarantees ............................

3,165

4,348

Total assets ..................................................................................
LIABILITIES:
2104 Federal liabilities: Resources payable to Treasury ...................
Non-Federal liabilities:
2201 Accounts payable .........................................................................
2204 Liabilities for loan guarantees ...................................................

3,527

4,643

3,412

4,555

4
111

–15
103

2999

Total liabilities .............................................................................

3,527

4,643

4999

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

3,527

4,643

1999

Object Classification (in millions of dollars)
Identification code 91–0230–0–1–502

2006 actual

2007 est.

2008 est.

25.2
33.0
41.0
42.0

Direct obligations:
Other services ................................................................
Investments and loans ..................................................
Grants, subsidies, and contributions ............................
Insurance claims and indemnities ................................

62
91
29
18

57
67
14
17

51
52
6
14

99.9

Total new obligations ................................................

200

155

123

INSTITUTE OF EDUCATION SCIENCES
Federal Funds
INSTITUTE

EDUCATION SCIENCES

For carrying out activities authorized by the Education Sciences
Reform Act of 2002, as amended, the National Assessment of Educational Progress Authorization Act, section 208 of the Educational
Technical Assistance Act of 2002, and section 664 of the Individuals

89.00
90.00

621
758
520
543
544
596
¥393
¥782
¥564
¥13 ................... ...................

Research and Statistics:
Research, development, and dissemination.—Funds support
the National Center for Education Research, which oversees
a diverse portfolio of directed research, evaluation studies,
research and development centers, and dissemination activities that provide parents, teachers, and schools with valid
information on effective educational practice.
Statistics.—Funds support the Department’s statistical data
collection activities, which are conducted by the National Center for Education Statistics (NCES). NCES collects, analyzes,
and disseminates statistics on education at all levels, from
preschool through postsecondary and adult education, including statistics on international education activities. In 2008,
funds will also support a higher education unit record pilot.
The pilot will modify several components of the Integrated

DEPARTMENTAL MANAGEMENT
Federal Funds

DEPARTMENT OF EDUCATION

Postsecondary Education Data System (IPEDS) to implement
a privacy-protected system that would allow interested parties
to follow students as they move from one institution to another, thus allowing better understanding of student attendance, graduation and transfer rates, academic outcomes, and
the costs of higher education.
Regional educational laboratories.—Funds support a network of 10 regional laboratories that provide expert advice,
including training and technical assistance, to help States
and school districts apply proven research findings in their
school improvement efforts. Funds would be used for the third
year of 5-year contracts for the laboratories.
Assessment.—Funds support the National Assessment of
Educational Progress (NAEP). NAEP administers assessments
to samples of students in order to gather reliable information
about educational attainment in important academic areas.
Funds support collection and reporting of national, State, and
long-term trend information, including the conduct of biennial
State NAEP in reading and mathematics at grades 4 and
8. In 2008, funds will also support costs of expanding State
NAEP to grade 12 in 2009.
Research in special education.—Funds support research to
address gaps in scientific knowledge in order to improve special education and early intervention services and results for
infants, toddlers, and children with disabilities.
Statewide data systems.—Funds support competitive awards
to State educational agencies to foster the design, development, and implementation of longitudinal data systems.
Special education studies and evaluations.—Funds support
objective studies, evaluations, and assessments related to the
implementation of the Individuals with Disabilities Education
Act in order to improve special education and early intervention services and results for infants, toddlers, and children
with disabilities.
Object Classification (in millions of dollars)
Identification code 91–1100–0–1–503

11.1
11.3
11.9
24.0
25.1
25.2
25.3
25.5
41.0
99.0
99.0
99.5
99.9

2006 actual

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

2007 est.

2008 est.

1
1

2
1
4
167

2
1
3
167

2
1
4
194

15
99
253

15
99
277

Direct obligations ..................................................
541
Reimbursable obligations ..............................................
2
Below reporting threshold .............................................. ...................

540
2
2

592
2
2

544

the move of Department staff to the Mary E. Switzer building in
Washington, D.C.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0800–0–1–503

Total new obligations ................................................

543

Identification code 91–1100–0–1–503

2006 actual

Direct:
1001 Civilian full-time equivalent employment .....................

2007 est.

2008 est.

DEPARTMENTAL MANAGEMENT
Federal 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 three passenger motor
vehicles, $446,934,000, of which $17,303,000, to remain available until
expended, shall be for building alterations and related expenses for

2007 est.

2008 est.

410
36
1

411
447
24 ...................
1
1

10.00

447

436

21.40
22.00

Total new obligations ................................................

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year ...................
New budget authority (gross) ........................................
472

448

24 ...................
412
448

23.90
23.95
23.98

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

472
436
448
¥447
¥436
¥448
¥1 ................... ...................

24.40

Unobligated balance carried forward, end of year

24 ................... ...................

415
411
447
¥4 ................... ...................

43.00
58.00

60.00

Appropriation (total discretionary) ........................
411
411
447
Spending authority from offsetting collections: Offsetting collections (cash) ..................................... ...................
1
1
Mandatory:
Appropriation .............................................................
61 ................... ...................

70.00

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

72.40
73.10
73.20
73.40
74.10

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts (net) .........................
Change in uncollected customer payments from Federal sources (expired) ................................................

74.40

86.90
86.93
86.98
87.00

Obligated balance, end of year ................................

472

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

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

412

448

125
144
127
447
436
448
¥422
¥453
¥429
¥4 ................... ...................
¥2 ................... ...................
144

Outlays (gross), detail:
Outlays from new discretionary authority .....................
337
Outlays from discretionary balances .............................
85
Outlays from mandatory balances ................................ ...................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
Against gross budget authority only:
88.96
Portion of offsetting collections (cash) credited to
expired accounts ...................................................

89.00
90.00

Employment Summary

2006 actual

Obligations by program activity:
00.01 Program administration .................................................
00.02 Trust Fund ......................................................................
09.01 Reimbursable program ..................................................

596

Total personnel compensation ..............................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Other purchases of goods and services from Government accounts .................................................
Research and development contracts .......................
Grants, subsidies, and contributions ........................

347

127

146

322
338
71
91
60 ...................

422

453

429

¥2

¥1

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

472
420

411
452

447
428

The Program Administration account includes the direct
Federal costs of providing grants and administering elementary and secondary education, Indian education, English language acquisition, higher education, technical and adult education, special education programs, and programs for persons
with disabilities. It also supports assessment, statistics, and
research 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;
telecommunications; contractual services; financial management and accounting, including payments to schools, education agencies and other grant recipients, and preparation

348

DEPARTMENTAL MANAGEMENT—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 2008

PROGRAM ADMINISTRATION—Continued

00.01

Civil rights .....................................................................

of auditable financial statements; information technology
services; personnel management; personnel security; budget
formulation and execution; program evaluation; legal services;
congressional and public relations; and intergovernmental affairs.
Included in this account is the Department of Education’s
cost to renovate and upgrade the Mary E. Switzer building
in order to consolidate staff located in various buildings in
Washington, D.C.
Also included in this account are contributions from the
public. Activities supported include receptions for Blue Ribbon
Schools, Historically Black Colleges and Universities, and
School Recognition. In 2006, this account received a transfer
from the Department of State of $61 million. These funds
came from foreign countries in support of the Department
of Education’s efforts to assist educational programs and entities affected by Hurricane Katrina. Contributions not designated for a specific purpose are in the account’s Gifts and
Bequests Miscellaneous Fund.
Reimbursable program.-Reimbursements to this account are
for providing administrative services to other agencies, recycling activities, and in-kind travel.

10.00

Total new obligations ................................................

22.00
23.95

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

91
¥90

90
¥90

94
¥94

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

72.40
73.10
73.20
73.40

74.40

Obligated balance, end of year ................................

86.90
86.93

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

75
16

77
17

80
13

87.00

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

89.00
90.00

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

91
91

90
94

94
93

Object Classification (in millions of dollars)
Identification code 91–0800–0–1–503

11.1
11.3
11.5
11.9
12.1
13.0
21.0
23.1
23.3

2006 actual

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................

167
30
4

2007 est.

193
9
3

2008 est.

201
10
4

25.7
26.0
31.0
32.0
41.0

Total personnel compensation ..............................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons .......................
Rental payments to GSA ...........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Advisory and assistance services .............................
Other services ............................................................
Other purchases of goods and services from Government accounts .................................................
Operation and maintenance of equipment ...............
Supplies and materials .............................................
Equipment .................................................................
Land and structures ..................................................
Grants, subsidies, and contributions ........................

99.0
99.0

Direct obligations ..................................................
Reimbursable obligations ..............................................

446
1

435
1

447
1

99.9

Total new obligations ................................................

447

436

448

24.0
25.1
25.2
25.3

201
205
215
49
51
54
1 ................... ...................
5
5
5
36
36
38
11
3
5
24

9
4
3
19

11
4
2
20

20
17
16
44
48
51
2
2
2
9
12
24
1 ...................
5
35
24 ...................

1001

2006 actual

Direct:
Civilian full-time equivalent employment .....................

2,121

2007 est.

2,103

2008 est.

2,113

OFFICE

FOR

CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, as authorized
by section 203 of the Department of Education Organization Act,
$93,771,000.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Program and Financing (in millions of dollars)
Identification code 91–0700–0–1–751

2006 actual

22
20
16
90
90
94
¥91
¥94
¥93
¥1 ................... ...................

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, the Americans with Disabilities
Act of 1990 and the Boy Scouts of America Equal Access
Act of 2002.
Object Classification (in millions of dollars)
Identification code 91–0700–0–1–751

2006 actual

Direct obligations:
Personnel compensation:
11.1
Full-time permanent ..................................................
11.3
Other than full-time permanent ...............................
11.5
Other personnel compensation ..................................

2007 est.

2008 est.

51
2
1

53
2
1

55
3
1

Total personnel compensation ..............................
54
Civilian personnel benefits ............................................
13
Travel and transportation of persons ............................
1
Rental payments to GSA ................................................
7
Communications, utilities, and miscellaneous charges
2
Other services ................................................................
4
Other purchases of goods and services from Government accounts ...........................................................
2
Operation and maintenance of equipment ...................
5
Equipment ...................................................................... ...................

56
14
1
7
1
2

59
14
1
7
1
2

3
4
1

3
5
1

99.0
99.5

Direct obligations ......................................................
Below reporting threshold ..............................................

88
2

89
1

93
1

99.9

Total new obligations ................................................

11.9
12.1
21.0
23.1
23.3
25.2
25.3

Employment Summary
Identification code 91–0700–0–1–751

2007 est.

2008 est.

1001
Obligations by program activity:

25.7
31.0

Employment Summary
Identification code 91–0800–0–1–503

92
90
94
¥1 ................... ...................

Direct:
Civilian full-time equivalent employment .....................

2006 actual

630

2007 est.

629

2008 est.

629

GENERAL FUND RECEIPT ACCOUNTS

DEPARTMENT OF EDUCATION
OFFICE

OF THE

INSPECTOR GENERAL

349

Employment Summary

For expenses necessary for the Office of the Inspector General, as
authorized by section 212 of the Department of Education Organization Act, $53,239,000.
Note.—A regular 2007 appropriation for this account had not been enacted at the time
the budget was prepared; therefore, this account is operating under a continuing resolution
(P.L. 109–289, Division B, as amended). The amounts included for 2007 in this budget
reflect the levels provided by the continuing resolution.

Identification code 91–1400–0–1–751

2006 actual

Direct:
1001 Civilian full-time equivalent employment .....................

288

2007 est.

279

2008 est.

293

HURRICANE EDUCATION RECOVERY

Program and Financing (in millions of dollars)

Federal Funds
Identification code 91–1400–0–1–751

2006 actual

2007 est.

2008 est.

Obligations by program activity:
00.01 Inspector General ...........................................................

10.00

HURRICANE EDUCATION RECOVERY

22.00
23.95

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

49
¥49

48
¥48

53
¥53

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

72.40
73.10
73.20

11
49
¥47

13
48
¥48

13
53
¥52

74.40

Obligated balance, end of year ................................

Program and Financing (in millions of dollars)
Identification code 91–0013–0–1–500

00.91

Outlays (gross), detail:
86.90 Outlays from new discretionary authority .....................
86.93 Outlays from discretionary balances .............................

41
6

40
8

44
8

87.00

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

49
47

48
48

53
52

The Inspector General is responsible for the quality, coverage, and coordination of audit and investigation 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.

2006 actual

Obligations by program activity:
00.01 Programs to restart school operations ..........................
00.02 Assistance for homeless children and youth ................
00.03 Temporary emergency impact aid for displaced students ..........................................................................

2007 est.

2008 est.

750 ................... ...................
5 ................... ...................
878 ................... ...................

01.01
01.02

Subtotal, Aid for elementary and secondary education ....................................................................
Aid for institutions of higher education ........................
Aid for recovering institutions .......................................

1,633 ................... ...................
200 ................... ...................
50 ................... ...................

01.91

Subtotal, Postsecondary institutional assistance .....

250 ................... ...................

10.00

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

1,883 ................... ...................

22.00
23.95
23.98

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

1,885 ................... ...................
¥1,883 ................... ...................
¥2 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................

1,885 ................... ...................

72.40
73.10
73.20
74.40

86.90
86.93

Change in obligated balances:
Obligated balance, start of year ................................... ...................
743 ...................
Total new obligations ....................................................
1,883 ................... ...................
Total outlays (gross) ......................................................
¥1,140
¥743 ...................
Obligated balance, end of year ................................

743 ................... ...................

Outlays (gross), detail:
Outlays from new discretionary authority .....................
1,140 ................... ...................
Outlays from discretionary balances ............................. ...................
743 ...................

87.00

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

89.00
90.00

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

1,140

743 ...................

1,885 ................... ...................
1,140
743 ...................

Object Classification (in millions of dollars)
Identification code 91–1400–0–1–751

2006 actual

2007 est.

2008 est.

Amounts in this schedule reflect balances that are spending
out from prior-year appropriations.
f

23
25
27
1
1 ...................
2 ................... ...................

GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)

11.9
12.1
21.0
23.1
23.3
25.1
25.2
25.3
25.7
31.0
32.0

Total personnel compensation ..............................
26
26
27
Civilian personnel benefits ............................................
8
8
9
Travel and transportation of persons ............................
2
2
2
Rental payments to GSA ................................................
4
4
5
Communications, utilities, and miscellaneous charges
1
1
1
Advisory and assistance services ..................................
2
2
3
Other services ................................................................
1
1
1
Other purchases of goods and services from Government accounts ...........................................................
1
1
1
Operation and maintenance of equipment ...................
2
2
3
Equipment ......................................................................
1 ...................
1
Land and structures ...................................................... ...................
1 ...................

99.0
99.5

Direct obligations ......................................................
Below reporting threshold ..............................................

99.9

Total new obligations ................................................

48
48
53
1 ................... ...................
49

2006 actual

2007 est.

2008 est.

Offsetting receipts from the public:
91–143500 General fund proprietary interest receipts, not
otherwise classified ............................................................
18
20
20
91–271810 Federal family education loan program, negative subsidies ..................................................................... ................... ...................
2,813
91–271830 Federal family education loan program,
Downward reestimates of subsidies .................................. ...................
3,715 ...................
91–278130 Federal direct student loan program, downward reestimates of subsidies ........................................... ...................
985 ...................
91–291500 Repayment of loans, capital contributions,
higher education activities ................................................
51
42
42
91–322000 All other general fund proprietary receipts
including budget clearing accounts ..................................
68
47
47
General Fund Offsetting receipts from the public .....................
137
4,809
2,922

350

GENERAL FUND RECEIPT ACCOUNTS—Continued

THE BUDGET FOR FISCAL YEAR 2008

(in millions of dollars)—Continued
2006 actual

2007 est.

2008 est.

Intragovernmental payments: ......................................................
91–388500 Undistributed intragovernmental payments
and receivables from cancelled accounts .........................

General Fund Intragovernmental payments ................................

GENERAL PROVISIONS

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 or clustering. The
prohibition described in this section does not include the establishment
of magnet schools.
SEC. 303. No funds appropriated in this Act may be used to prevent
the implementation of programs of voluntary prayer and meditation
in the public schools.
(TRANSFER OF FUNDS)

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,

SEC. 304. Not to exceed 1 percent of any discretionary funds (pursuant to the Balanced Budget and Emergency Deficit Control Act of
1985, as amended) which are appropriated 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 15 days in advance
of any transfer.

Full text of Budget of the United States Government - Appendix : Fiscal Year 2008 : Department of Education

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