Fiscal Year 2009 Budget Summary February 4, 2008
Section II. D. Student Financial Assistance
Overview
In 2009 the Department of Education will administer almost $95 billion in new grants, loans, and work-study assistance to help almost 11 million students and their families pay for college. The request includes nearly $19 billion in combined discretionary and mandatory funding for the Pell Grant program to support awards to almost 5.8 million students and increase the maximum award to $4,800, the highest level ever. The budget also would support almost $75 billion in new guaranteed
and direct student loans. Federal student aid funds will help millions of Americans obtain the benefits of postsecondary education and play a vital role in strengthening our Nation by providing advanced training for today's global economy.
In September 2007 President Bush signed the College Cost Reduction and Access Act (CCRAA), providing the largest increase in student aid funding in a generation. This landmark legislation, which was based on proposals advanced in the 2008 President's Budget, invested over $15 billion in new mandatory funds over 5 years to raise the maximum Pell Grant to $5,400 by award year 2012-2013. These funds support annual additions, rising from $490 for award year 2008-2009 to $1,090 in 2012-2013, to the maximum Pell Grant award set in each year's discretionary appropriation act. The law also made a number of changes to expand eligibility for Pell Grants and other need-based student aid.
The 2009 request for student financial assistance keeps the Pell Grant program on track to deliver on the promise of the CCRAA, restoring the discretionary maximum award to $4,310 and investing an additional $2.6 billion in discretionary funding over the 2008 level. Under the President's proposal, nearly 5.8 million Americans will receive an average Pell Grant award
of $3,154, the first time the program's average grant has exceeded $3,000. This proposal represents the culmination of President Bush's unprecedented commitment to this vital program, funding for which has more than doubledfrom $8.8 billion to nearly $19 billionsince 2001.
Student Aid Summary Tables
Budget Authority ($ in millions)
|
2007 |
|
2008 |
|
2009 Request |
|
|
Pell Grants |
Discretionary funding |
$13,660.7 |
1 |
$14,215.0 |
1 |
$16,851.1 |
1 |
Mandatory funding |
|
|
2,041.0 |
|
2,090.0 |
|
Subtotal, Pell Grants |
13,660.7 |
|
16,256.0 |
|
18,941.1 |
|
|
Supplemental Educational
Opportunity Grants |
770.9 |
|
757.5 |
|
|
|
Work-Study |
980.4 |
|
980.5 |
|
980.5 |
|
Leveraging Educational Assistance
Partnerships |
64.9 |
2 |
63.9 |
2 |
|
|
Academic Competitiveness Grants |
850.0 |
|
395.0 |
3 |
960.0 |
|
TEACH Grants |
|
|
7.0 |
|
14.0 |
|
Loans for Short-Term Training |
|
|
|
|
3.0 |
|
Federal Family Education Loans |
3,690.5 |
4 |
-398.0 |
4 |
2,407.3 |
4 |
Federal Direct Loans |
3,982.2 |
5 |
4,983.4 |
5 |
-1,262.4 |
5 |
Perkins Loans Cancellations |
65.5 |
|
64.3 |
|
|
|
Total |
24,065.1 |
|
23,109.6 |
|
22,043.6 |
|
1Discretionary amount for 2007 assumes use of additional $227 million from prior-year surplus, consistent with scoring rule included in the 2006
Congressional Budget Resolution. Discretionary amount for 2008 assumes use of $521.1 million to fund shortfall from previous year. Discretionary amount for 2009 assumes use of $732.1 million to fund shortfall from previous year.
2Includes $34.9 million in 2007 and $33.9 million in 2008 for Special LEAP.
3For budget scoring and presentation purposes, the FY 2008 funding level reflects a rescission of $525 million in unneeded, unobligated balances. This does
not affect the actual availability of the FY 2008 mandatory appropriation of $920 million.
4Budget authority requested for FFEL does not include the Liquidating account. The 2007 amount includes a net downward re-estimate of $3.7 billion
primarily related to revised assumptions for interest rates, loan volume, and default collection costs. The 2008 amount includes a net upward re-estimate of $990 million primarily related to revised interest rates and assumptions related to deferment and forbearance, students entering repayment, and teacher loan forgiveness. The 2008 amount also includes a $2.5 billion downward modification to reflect the effect of the College Cost Reduction and Access Act on existing loans.
5For 2007, the Direct Loan amount includes a net upward re-estimate of $3.7 billion primarily related to revised assumptions related to interest rates and
collections on defaulted loans. The 2008 amount includes a net upward re-estimate of $585 million primarily related to revised interest rates and assumptions related to
income-contingent repayment. The 2008 amount also includes a $4.1 billion upward modification to reflect the effect of the College Cost Reduction and Access Act on
existing loans. The 2009 amount includes a net downward modification of $1.6 billion related to proposed policies. |
Aid Available to Students ($ in millions)
|
2007 |
|
2008 |
|
2009 Request |
|
|
Pell Grants |
$14,381.9 |
|
$16,428.1 |
|
$18,180.2 |
|
Supplemental Educational
Opportunity Grants |
975.9 |
|
958.8 |
|
|
|
Work-Study |
1,171.2 |
|
1,171.4 |
|
1,171.4 |
|
Leveraging Educational Assistance
Partnerships |
165.0 |
1 |
161.6 |
1 |
|
|
Academic Competitiveness Grants |
350 |
|
440 |
|
490 |
|
SMART Grants |
230 |
|
260 |
|
270 |
|
TEACH Grants |
|
|
86.0 |
|
114.0 |
|
New Student Loans: |
|
|
|
|
|
|
Loans for Short-Term Training |
|
|
|
|
362.6 |
|
Federal Family Education Loans |
51,319.8 |
|
56,241.8 |
|
59,307.7 |
|
Federal Direct Loans |
13,022.1 |
|
14,103.5 |
|
14,866.5 |
|
Perkins Loans |
1,104.5 |
|
1,103.4 |
|
|
|
Subtotal, Student Loans |
65,446.4 |
2 |
71,448.6 |
2 |
74,536.8 |
2 |
|
|
|
|
|
|
|
Total |
82,720.4 |
3 |
90,954.5 |
3 |
94,762.4 |
3 |
1 Reflects only the LEAP program's statutory State matching requirements.
2In addition, consolidation loans for existing borrowers will total $50 billion in 2007, $38 billion in 2008, and $43 billion in 2009.
3Shows total aid generated by Department programs, including Federal Family Education Loan capital, Perkins Loan capital from institutional revolving
funds, and institutional and State matching funds. |
Number of Student Aid Awards
(in thousands)
|
2007 |
|
2008 |
|
2009 Request |
|
|
Pell Grants |
5,428 |
|
5,578 |
|
5,764 |
|
Supplemental Educational
Opportunity Grants |
1,277.3 |
|
1,255.0 |
|
|
|
Work-Study |
792.4 |
|
792.6 |
|
792.6 |
|
Leveraging Educational Assistance
Partnerships |
165.0 |
1 |
161.6 |
1 |
|
|
Academic Competitiveness Grants |
456.0 |
|
559.0 |
|
643.0 |
|
SMART Grants |
72.0 |
|
79.0 |
|
85.0 |
|
TEACH Grants |
|
|
31.0 |
|
41.0 |
|
New Student Loans:2 |
|
|
|
|
|
|
Loans for Short-Term Training |
|
|
|
|
377.0 |
|
Federal Family Education Loans |
11,519.2 |
|
12,235.3 |
|
12,702.0 |
|
Federal Direct Loans |
2,764.0 |
|
2,857.3 |
|
2,961.2 |
|
Perkins Loans |
504.3 |
|
503.8 |
|
|
|
|
|
|
|
|
|
|
Total |
24,801.4 |
|
25,372.5 |
|
24,816.3 |
|
1Reflects only the LEAP program's statutory State matching requirements.
2In addition, consolidation loans for existing borrowers will total 1,823 in 2007, 1,320 in 2008, and 1,451 in 2009.
|
Number of Postsecondary Students Aided by Department Programs
|
2007 |
2008 |
2009 Request |
|
Unduplicated Count (in thousands) |
10,075 |
10,560 |
10,857 |
Tax Benefits for Postsecondary Students and Their Families
In addition to the Department of Education's grant, loan, and work-study programs, significant support for postsecondary students and their families is available through tax credits and deductions for higher education expenses, including tuition and fees. For example, in 2009, students and families will save an estimated $3.6 billion under the HOPE tax credit, which allows a credit of up to $1,500 for tuition and fees during the first 2 years of postsecondary education; $2.3 billion under the Lifetime Learning tax credit, which allows a credit of up to $2,000 for undergraduate and graduate tuition and fees; and $830 million in above-the-line deductions for interest paid on postsecondary student loans. The 2009 request also promotes savings for college by providing a 50 percent tax credit for the first $2,000 that moderate- and low-income parents invest annually in a 529 tuition-savings account. The credit ranges between 10 and 50 percent of the amount contributed, depending on the taxpayer's filing status and adjusted gross income (adjusted for inflation).
 |
Pell Grants
|
2007 |
2008 |
2009 Request |
|
B.A. in millions |
|
|
|
Discretionary |
$13,661 |
$14,215 |
$16,851 |
Mandatory |
|
2,041 |
2,090 |
Total |
13,661 |
16,256 |
18,941 |
|
|
|
|
Program costs ($ in millions) |
14,409 |
16,467 |
18,209 |
Aid available ($ in millions) |
14,382 |
16,428 |
18,180 |
|
|
|
|
Recipients (in thousands) |
5,428 |
5,578 |
5,764 |
Maximum grant |
|
|
|
Discretionary |
$4,310 |
$4,241 |
$4,310 |
Mandatory add-on |
|
490 |
490 |
Total |
4,310 |
4,731 |
4,800 |
Average grant |
2,650 |
2,945 |
3,154 |
The Pell Grant program helps ensure financial access to postsecondary education by providing grant aid to low- and middle-income undergraduate students. The program is the most need-focused of the Department's student aid programs, with individual awards varying according to the financial circumstances of students and their families.
This request includes $16.9 billion in discretionary funding and $2.1 billion in mandatory funding to support a maximum award of $4,800 for award year 2009-2010. The $2.6 billion discretionary increase proposed for 2009 primarily reflects updated cost estimates for the Pell Grant program as well as a small increase needed to restore the discretionary share of the
maximum Pell Grant to $4,310. The 2009 request increase sets the Pell Grant program back on the 5-year path to a $5,400 maximum award in award year 2012-2013, as envisioned in the President's 2008 Budget proposal and implemented by the College Cost Reduction and Access Act.
While Pell Grants have been very successful in expanding access to postsecondary education for low-income students, the Administration plans to work with Congress to increase the program's effectiveness and improve its overall operation. Accordingly, the 2009 request includes the following proposals:
Pell Grants would be made available year-round at eligible 2- and 4-year degree granting institutions, giving students a more convenient option for accelerating their studies and promptly completing their education.
As a further incentive for timely completion, and to eliminate an area of potential abuse, Pell Grant eligibility would be limited to the equivalent of 16 semesters.
To ensure Federal Pell Grant funds are properly used, the Department and the Internal Revenue Service continue to implement a consent-based approach to matching applicant data reported on the Free Application for Federal Student Aid with Federal tax data.
Campus-Based Programs
Work-Study
|
2007 |
2008 |
2009 Request |
|
B.A. in millions |
$980 |
$980 |
$980 |
Aid available ($ in millions) |
1,171 |
1,171 |
1,171 |
|
Recipients (in thousands) |
792 |
793 |
793 |
Average award |
$1,478 |
$1,478 |
$1,478 |
The Work-Study program provides grants to participating institutions to pay up to 75 percent of the wages of eligible undergraduate and graduate students working part-time to help pay their college costs. The school or other eligible employer provides the balance of the student's wages. At the request level, nearly 800,000 students would receive a total of nearly $1.2 billion in award year 2009-10. Funds are allocated to institutions according to a statutory formula, and individual award amounts to students are determined at the discretion of institutional financial aid administrators.
Academic Competitiveness Grants/SMART Grants
|
2007 |
2008 |
2009 Request |
|
B.A. in millions |
$850.0 |
$395.0 |
$960.0 |
|
Rescission of unneeded balances |
|
525.0 |
|
Cancellation of unneeded balances |
|
|
652.0 |
|
Academic Competitiveness Grants |
|
|
|
|
Recipients (in thousands) |
456,000 |
559,000 |
643,000 |
Aid available to students (in 000s) |
$350,000 |
$440,000 |
$490,000 |
Maximum grant (in whole $) |
|
|
|
First-year student |
$750 |
$750 |
$750 |
Second-year student |
$1,300 |
$1,300 |
$1,300 |
Average grant (in whole $) |
$768 |
$787 |
$762 |
|
SMART Grants |
|
|
|
|
Recipients |
72,000 |
79,000 |
85,000 |
Aid available to students (in 000s) |
$230,000 |
$260,000 |
$270,000 |
Maximum grant (in whole $) |
$4,000 |
$4,000 |
$4,000 |
Average grant (in whole $) |
$3,194 |
$3,291 |
$3,176 |
These programs, which began operation on July 1, 2006, award need-based Academic Competitiveness Grants (ACG) to first- and second-year undergraduates who complete a rigorous high school curriculum, and National Science and Mathematics Access to Retain Talent (SMART) Grants to third- and fourth-year undergraduates majoring in physical, life, or computer sciences, mathematics, technology, engineering, or a critical foreign language. All funding is mandatory, so annual
discretionary appropriations are not required.
Academic Competitiveness Grants are awarded to United States citizens who are eligible for a Federal Pell Grant. First-year applicants, who may receive up to $750, also must be first-time undergraduates, enrolled or accepted for enrollment in a 2- or 4-year degree granting institution, and have completed a rigorous secondary school program. Second-year ACG applicants qualify for an award of up to $1,300 if they have completed a rigorous program and maintained a cumulative grade point average of at least 3.0 during their first year as an undergraduate. The Secretary of Education recognizes at least one rigorous program of study in each State.
SMART Grant applicants must maintain a cumulative GPA of at least 3.0 in the coursework required by their major to qualify for up to $4,000 for their third and fourth years of undergraduate study. SMART Grants, in combination with the Federal Pell Grant and other student financial assistance, may not exceed the student's cost of attendance.
While the Administration is working with States and postsecondary institutions to increase demand for these programs, participation trends during the first 2 years indicate that future funding will substantially exceed the amounts needed to support anticipated grant awards. Congress rescinded $525 million in unneeded ACG/SMART balances in 2008 and the Administration proposes to cancel an additional $652 million in unneeded balances in 2009. Even with the proposed cancellation of these funds, in the 2009-2010 academic year the Administration estimates there will be 84,000 new ACG recipients (a 15 percent increase) and 6,000 new SMART grant recipients (an 8 percent increase) compared to the prior year.
TEACH Grants
|
2007 |
2008 |
2009 Request |
|
BA in millions |
|
$7.0 |
$14.0 |
Recipients |
|
31,000 |
41,000 |
Aid available to students (in 000s) |
|
$86,000 |
$114,000 |
Maximum grant (in whole $) |
|
$4,000 |
$4,000 |
Average grant (in whole $) |
|
$2,774 |
$2,780 |
The TEACH Grant programcreated by the College Cost Reduction and Access Act and beginning operation on July 1, 2008awards annual grants of up to $4,000 to eligible undergraduate and graduate students who agree to serve as a full-time mathematics, science, foreign language, bilingual education or other English language program, special education, or reading teacher at a high-need school for not less than 4 years within 8 years of graduation. For students who fail to fulfill this service requirement, grants are converted to Direct Unsubsidized Stafford Loans, with interest accrued from the date the grants were awarded.
For budget and financial management purposes, this program will be operated as a loan program with 100 percent forgiveness of outstanding principal and interest upon completion of a student's service requirement. The Administration currently estimates approximately 80 percent of participating students will not complete the required service and thus will have their
grants converted to Direct Unsubsidized Stafford Loans. Consistent with the requirements of the Credit Reform Act of 1990, budget authority for this program reflects the estimated net present value of all future non-administrative Federal costs associated with awards made in a given fiscal year. Re-estimates of prior-year costs will be performed each year beginning in fiscal year 2009.
Loans for Short-Term Training
|
2007 |
2008 |
2009 Request |
|
BA in millions |
|
|
$3.0 |
Recipients |
|
|
377,000 |
Aid available to students (in 000s) |
|
|
$362,593 |
Maximum loan (in whole $) |
|
|
$5,000 |
Average loan (in whole $) |
|
|
$962 |
This proposed new, market-oriented program, jointly administered by the Departments of Education and Labor, would help dislocated, unemployed, transitioning, or older workers and students acquire or upgrade specific job-related skills through short-term training programs. These programs are usually shorter than 10 weeks and are not currently eligible for Federal student aid. Eligible programs for the new loans must lead to an industry credential or certificate, or toemployer-endorsed technological/occupational skills. This program is expected to provide over $362 million in loans to 377,000 recipients in FY 2009.
Federal Family Education Loans and Direct Loans
|
2007 |
|
2008 |
|
2009 Request |
|
|
Federal Family Education Loans |
|
|
|
|
|
|
New Loan Subsidies (BA) |
$6,850.1 |
1 |
$1,076.4 |
1 |
$2,407.3 |
1 |
Net Modification of Existing Loans |
|
|
-2,464.3 |
2 |
|
|
Net Re-estimate of Prior Loans |
-3,159.6 |
3 |
990.0 |
3 |
|
|
Total, FFEL Program BA |
3,690.5 |
|
-398.0 |
|
2,407.3 |
|
|
Direct Loans |
|
|
|
|
|
|
New Loan Subsidy (BA) |
264.6 |
4 |
255.6 |
4 |
328.7 |
4 |
Net Modification of Existing Loans |
|
|
4,143.3 |
2 |
-1,591.0 |
2 |
Net Re-estimate of Prior Loans |
3,717.6 |
3 |
584.5 |
3 |
|
|
Total, New Budget Authority |
3,982.2 |
|
4,983.4 |
|
-1,262.4 |
|
Total, Student Loans (BA) |
7,672.7 |
|
4,585.4 |
|
1,145.0 |
|
1Total includes amount for Consolidation Loans, but does not include the Liquidating Account, which deals with costs associated with loans made prior to
1992.
2Under Credit Reform, costs or savings related to the impact of policy changes on existing loans are reflected in the current year. Amounts for 2008 reflect the impact of the College Cost Reduction and Access Act on existing loans. The amount for 2009 reflects proposed policies.
3Under Credit Reform, the subsidy amounts needed for active loan cohorts are re-estimated annually in both Direct Loans and FFEL to account for changes in
long-term projections. In 2007 and 2008, Direct Loans re-estimates primarily reflect revised interest rate assumptions, and in 2008, revised assumptions related to income-contingent repayment. FFEL re-estimates are driven primarily by updated interest rate, deferment and forbearance, enter repayment, and teacher loan forgiveness assumptions.
4Total includes amount for Consolidation Loans. |
New loan volume (in millions)
|
2007 |
|
2008 |
|
2009 Request |
|
|
Federal Family Education Loans |
$51,320 |
|
$56,242 |
|
$59,308 |
|
Direct Loans |
13,022 |
|
14,103 |
|
14,867 |
|
Total |
64,342 |
1 |
70,345 |
1 |
74,175 |
1 |
|
Number of New loans (in thousands) |
|
|
|
|
|
|
|
Federal Family Education Loans |
11,519 |
|
12,235 |
|
12,702 |
|
Direct Loans |
2,764 |
|
2,857 |
|
2,961 |
|
Total |
14,283 |
1 |
15,092 |
1 |
15,663 |
1 |
1In addition, Consolidation Loans for existing borrowers will total $50 billion and 1.8 million loans in 2007, $38 billion and 1.3 million loans in 2008, and $43 billion and 1.5 million loans in 2009. |
The Department of Education operates two major student loan programs: the Federal Family Education Loan (FFEL) program and the William D. Ford Federal Direct Loan (Direct Loan) program. These two programs meet an important Department goal by helping ensure student access to and completion of high-quality postsecondary education. Competition between the two programs and among FFEL lenders has led to a greater emphasis on borrower satisfaction and resulted in better customer service to students and institutions.
The FFEL program makes loan capital available to students and their families through some 3,100 private lenders. There are 35 active State and private nonprofit guaranty agencies which administer the Federal guarantee protecting FFEL lenders against losses related to borrower default. These agencies also collect on defaulted loans and provide other services to lenders.
The FFEL program accounts for about 80 percent of new student loan volume.
Under the Direct Loan program, the Federal Government uses Treasury funds to provide loan capital directly to schools, which then disburse loan funds to students. The Direct Loan program began operation in academic year 1994-95 and now accounts for about 20 percent of new student loan volume.
Basic Loan Program Components
Both FFEL and Direct Loans feature four types of loans with similar fees and maximum borrowing amounts:
Stafford Loans are subsidized, low-interest loans based on financial need. The Federal Government pays the interest while the student is in school and during certain grace and deferment periods. The interest rate on Stafford loans made before July 1, 2006, is adjusted annually based on the 91-day Treasury bill rate, with a cap of 8.25 percent. For loans made on or
after July 1, 2006, the interest rate is fixed at 6.8 percent. The CCRAA includes a 4-year phased reduction of Stafford Loan interest rates, which would drop to 6.0 percent for loans made on or after July 1, 2008, with further reductions each subsequent July 1 through 2011, when rates would be 3.4 percent. Rates would return to 6.8 percent beginning July 1, 2012.
Unsubsidized Stafford Loans have a fixed interest rate of 6.8 percent, but the Federal Government does not pay interest for the student during in-school, grace, and deferment periods.
PLUS Loans are available to parents of dependent undergraduate students at slightly higher rates than Stafford or Unsubsidized Stafford Loans and the Federal Government does not pay interest during in-school, grace, and deferment periods. Graduate and professional students may also take out PLUS loans.
Consolidation Loans allow borrowers with multiple student loans who meet certain criteria to combine their obligations and extend their repayment schedules. The rate for both FFEL and Direct Consolidation Loans is based on the weighted average of loans consolidated rounded up to the nearest 1/8th of 1 percent. The resulting rate for the consolidated loan is
then fixed for the life of the loan.
College Cost Reduction and Access Act (CCRAA)
The College Cost Reduction and Access Act of 2007 made a number of significant changes in the loan programs to expand student benefits, increase program efficiency, and reduce excessive subsidies in order to focus limited Federal resources on aid to needy students. These changes include:
Reduce interest subsidies to lenders. FFEL private lenders are guaranteed a specified interest rate by law, regardless of what the student borrower pays. This rate is based on the quarterly commercial paper rate plus a statutory add-on. The CCRAA reduced this add-on by .55 percent for for-profit lenders, to 1.79 percent for most loans, and by .40 percent for
not-for-profit lenders, to 1.94 percent for most loans in repayment.
Loan forgiveness for public service employees. Direct Loan borrowers who work in a broad range of public service positions may have the balance of their loans forgiven after 10 years in repayment. Repayments must occur after October 1, 2007, to count against the 10-year eligibility criteria. Borrowers must work in qualifying public service jobs throughout
the 10-year repayment period to qualify for forgiveness. FFEL borrowers must consolidate their loans into Direct Loans to qualify for the program. The 2009 request would limit eligibility for this benefit to new borrowers after October 1, 2009, to better target these benefits to borrowers who will soon be making career decisions and encourage them to pursue public service despite holding high student loan balances. These changes also would allow time for the student loan marketplace to prepare for potential shifts in loan volume between Direct Loans and FFEL.
Income-based repayment. FFEL and Direct Loan borrowers meeting eligibility criteria based on "partial economic hardship" may have their payments limited to a percentage of their income. For up to 3 years, the government pays any Stafford Loan interest that accrues and is unpaid under the income-based repayments. Outstanding balances are cancelled after 25 years in repayment. The 2009 request would eliminate the 3-year Stafford Loan interest subsidy under this
repayment plan, as comparable benefits are already available under economic hardship and unemployment deferments.
Reduce default insurance from 97 percent to 95 percent. FFEL lenders currently receive 97 percent of students' loan balances when filing for Federal insurance. The CCRAA reduced this amount to 95 percent, effective October 1, 2012. The CCRAA also eliminated the higher reinsurance previously paid to lenders and loan servicers deemed "exceptional
performers."
Reduce guaranty agency default collection payments. Effective October 1, 2007, the CCRAA reduced the amount guaranty agencies may retain from collections on most defaulted loans from 23 percent to 16 percent, a figure consistent with amounts paid to the Department's private collection agents.
Reduce guaranty agency account maintenance fees. Agencies currently are paid an administrative fee based on a percentage of the original principal amount of active loans they have guaranteed. Effective October 1, 2007, the CCRAA reduced this percentage from .1 percent to .06 percent.
Increase lender fee to 1 percent. Effective October 1, 2007, the CCRAA increased the one-time origination fee lenders pay from 0.5 percent to 1.0 percent of the loan balance.
PLUS loan auction. Beginning July 1, 2009, the right to originate PLUS loans to parents in the FFEL program will be auctioned to the lowest two bidders in each State. PLUS loans to graduate students would continue to be available from any lender.
 |
Perkins Loan Revolving Funds
The Administration is proposing to recall the Federal portion of the Perkins Loans revolving funds currently held by participating institutions, which will total $4.2 billion over fiscal years 2009-2013. The Administration believes the Perkins Loan program is ineffective, redundant, and poorly targeted.
Career, Technical, and Adult Education
Higher Education Programs
For further information contact the ED Budget Service.
This page last modifiedFebruary 4, 2008 (mjj).