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| Community Colleges: Federal Resources supporting                      |
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| Local Opportunities[^1]                                               |
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Community and technical colleges play a pivotal role in education and
training in the United States. They have demonstrated their ability to
provide a solid education at a good value, and to function as an
important engine of workforce development for local communities. The
economy of the 21^st^ century calls for a skilled workforce and
expansion of opportunities for rigorous, research-based education and
training for all. The Bush Administration is responding by putting
education at the forefront of domestic priorities, and is actively
pursuing ways to work with postsecondary educators to strengthen the key
role that community colleges can play. Both education and workforce
development are critical for strengthening our country's economic
security---one of three national priorities cited by President Bush in
his 2002 State-of-the-Union address.

The first community college in this country opened more than 100 years
ago as a junior college. Expanding to 1600 campuses, these locally
oriented and responsive postsecondary institutions, enable millions of
people to learn valuable skills for success in the workplace, as well as
continued success in higher education. In close partnership with
business, industry and local employers, community colleges are vital
forces for economic development in the communities they serve. No other
institution performs such important, diverse tasks encompassing
education, access, career opportunity, workforce development, and
economic competitiveness. The federal government, as one of many funding
sources, assists in supporting effective community and technical
colleges and the preparation of their students.

Today, more jobs than ever require education or training beyond high
school, yet many of America's youth are under-prepared for success in
postsecondary education and promising careers. Recognizing the
imperative of elementary and secondary schools in providing education
and career opportunities for all students, No Child Left Behind bases
education reform on four principles:

-   *Raising Academic Achievement and Accountability*. The focus on
    raising academic achievement in elementary and secondary schools
    will strengthen the preparation of students coming to community
    colleges and other colleges and universities. The emphasis on
    improving achievement and accountability will also promote the
    quality of education and training within postsecondary education.

-   *Increasing Flexibility and Local Control*. Community colleges have
    traditionally been locally oriented institutions, serving a wide
    range of students and goals. While the variety of federal, state and
    local regulatory and reporting requirements are sometimes
    complicated, the U.S. Department of Education is pursuing efforts to
    assist colleges in simplifying these measures and reporting
    processes.

-   *Focusing on What Works*. Based on sound research about effective
    programs and practices, the U.S. Department of Education is working
    with the education community to identify and disseminate strategies
    with proven success in community colleges in meeting high academic
    and workforce development goals.

-   *Increasing Options for Students*. Community colleges are
    well-positioned to offer a wide range of education and training
    curricula, including programs and courses for students in the upper
    levels of high school, as well as adults trying to upgrade skills or
    make a career change.

Passed with strong bipartisan support, No Child Left Behind represents
President Bush's education reform plan. The education principles
highlighted in the act serve students, youth and adults---no matter what
the age of the learner. Thus, the U.S. Department of Education's
2002-2007 Strategic Plan
**(<http://www.ed.gov/about/reports/strat/plan2002-07/index.html>)**
includes a major goal focused on enhancing the quality of and access to
postsecondary and adult education.

###### Serving Multiple Constituents

Community colleges are a unique vital link between raising academic
achievement of students leaving secondary school and making successful
transitions into and through postsecondary education and careers.
Community colleges also provide essential programs for adults. These
range from high school equivalency and mastery of English as a second
language to associates degrees and state-of-the-art skills certificates.
More than one quarter of non-credit students at community colleges
already have a baccalaureate degree.

###### Federal Resources

Recognizing the importance and the potential of community colleges in
supporting the economic vitality of communities and their inhabitants,
the federal government provides both direct and indirect support. In FY
2002, the U.S. Department of Education alone is providing more than
\$4.5 billion to community or technical colleges---through direct
funding to institutions, grants to states that subsequently go to
colleges, or financial assistance to students. Additionally, students at
these institutions (or their families) participated in federally
subsidized, unsubsidized, or guaranteed loan programs---in amounts
totaling more than \$1.5 billion during the academic year 2000-2001 (the
most recent academic year for which final data was available).[^2]

###### Additional Resources 

Low- and middle-income students, or their families, also benefit from
the Taxpayer Relief Act's provisions for tax credits for two years of
postsecondary education and a 20 percent credit through the Lifetime
Learning Tax Credit. Many other federal agencies provide funding for
programs, students, or innovative projects at these institutions. In
addition, community college students participate in internships,
fellowships, and other work experiences at a wide range of federal
agencies.

***Research and Evaluation***

One of the most important ways the federal government can assist
colleges and provide more students with the highest quality of education
is to research, identify, and share information about local models or
curricula that have proven effective. Demonstration, research and
training programs are often implemented at community colleges. More
importantly, the U.S. Department of Education is focusing resources on
identifying existing effective models, and fostering expansion in other
institutions.

# Who are community college students?

More than 5.4 million students are enrolled in credit-bearing courses at
1600 community or technical colleges---nearly half of all undergraduates
in America. An additional 5 million students are enrolled in non-credit
courses at those institutions. Total enrollment (10.4 million) at
community colleges has increased *five-fold* over the past 40 years.[^3]

**Overall, a profile of community and technical college students
includes:**

-   64% part-time; 36% full-time[^4]

-   57% female; 43% male[^5]

-   67% white, 12% African American, 13% Hispanic, 7% Asian or Pacific
    Islander, and 1% American Indian or Alaskan native[^6]

-   Nearly half of the nation's minority undergraduate students -- 44%
    of African Americans, 45% of Hispanics, 53% of American Indians, 39%
    of Asians, 47% of Native Hawaiian or Pacific Islander.[^7]

-   Average age of all community college students is 29[^8], but the
    median age is 23/24 for credit-enrolled students, down from
    26/27[^9] a decade ago.  One of the largest cohorts attending
    community colleges is students ages 18/19; they comprise almost 21%
    of all students.[^10]

-   Average annual tuition and fees of \$1,359[^11]

-   55.9% of full-time students receive some type of aid from either
    federal, state, institutional or other sources. 30.7% of part-time
    students receive some type of aid from either federal, state,
    institutional or other sources.[^12]

**Community colleges also provide:**

-   Specialized training or education to meet local workforce needs,
    including occupational areas with shortages of sufficient, qualified
    workers.

-   Retraining or services for adults who are laid-off or have
    insufficient skills for new jobs opening in the area.

-   Training for 65% of new healthcare workers. [^13]

-   The initial postsecondary experience for one in five baccalaureate
    graduates in education certified to teach, and at least part of the
    math and science coursework for 40 percent of current teachers.[^14]

-   An increasing proportion of postsecondary remedial courses to bring
    under-prepared students up to college level.

**Office of Vocational and Adult Education support for Community and
Technical Colleges
([http://www.ed.gov/about/offices/list/ovae/index.html](http://www.ed.gov/about/offices/list/ovae/index.html?src=mr))**

The U.S. Department of Education's Office of Vocational and Adult
Education (OVAE) focuses on high school, community college, and adult
education---all areas affecting community colleges. Since 2002, OVAE's
\"Preparing America\'s Future\" initiative has focused on three key
priorities:

-   Preparing every American youth to complete high school and be well
    prepared for postsecondary education and employment.

-   Supporting community and technical colleges to fulfill their
    potential as an engine of education, career preparation, workforce
    development and economic development.

-   Expanding adult learning to bring higher levels of literacy and
    English fluency to millions of underserved Americans.

All of these priorities affect the students and programs found in
America's community and technical colleges. OVAE supports these
institutions not only by funding individual projects or state grants,
but also by identifying effective sites where colleges or states have
addressed key topics in education and training. Several initiatives were
launched in 2002 that focus either on community colleges or the
preparation of the students who may attend them.

-   *Accelerated Transitions Initiative* is designed to gather
    information on the prevalence, programs, and practices of
    credit-based transition programs. Credit-based transition efforts
    include a variety of programs such as Advance Placement (AP),
    International Baccalaureate (IB), Dual-Credit, Tech-Prep, and Middle
    College. All of those programs provide students with the option of
    gaining postsecondary credit while still enrolled in high school.

-   *College and Career Transitions Initiative* is designed to
    strengthen the role of community and technical colleges in easing
    students' transitions from secondary to postsecondary education.
    National organizations and ten partnerships between high schools and
    colleges will produce models of aligned curricula, professional
    development and assessment in broad, high-growth occupational areas.

-   *Community College Labor Market Responsiveness Initiative* targets
    information and tools to enable colleges to keep pace with the needs
    of a diverse student body and dynamic labor market. The project is
    identifying characteristics of a "market-responsive" college and
    steps that colleges can take to improve responsiveness and the
    quality of customized programs.

-   *Center for State Scholars* works with states on policy and
    incentive systems to support high school students in completing a
    rigorous course of study, preparing them for postsecondary education
    and careers.

-   *Performance Measurement Initiative* is addressing both college
    concerns about lack of alignment in accountability systems and
    public concerns about ensuring that performance is measured. The
    project is developing and testing secondary and postsecondary
    performance accountability systems for career and technical
    education. Local, state and federal representatives will identify
    measures, design data collection and accountability systems, and
    identify ways to use data for program management, improvement and
    accountability.

-   *Survey on Postsecondary Transition Programs* is being undertaken by
    the National Center for Education Statistics's (NCES) Postsecondary
    Education Quick Information Systems (PEQIS). The survey focuses on
    the prevalence, practices, and policies associated with
    postsecondary transition programs at community colleges.

Updates of new initiatives that focus on community colleges can be found
elsewhere on the OVAE website.
**(<http://www.ed.gov/about/offices/list/ovae/pi/cclo/index.html>)**

# 

# Other Offices Within The U.S. Department of Education That Offer Support for Community Colleges

# The Office of Postsecondary Education ([*http://www.ed.gov/about/offices/list/ope/index.html*](http://www.ed.gov/about/offices/list/ope/index.html)) and the Office of Student Financial Assistance programs ([*http://www.ed.gov/about/offices/list/fsa/index.html*](http://www.ed.gov/about/offices/list/fsa/index.html)) 

# are additional U.S. Department of Education divisions providing support to community colleges and their students. The Higher Education Act provides funding for institutional aid, student financial assistance, developing institutions, international education, teacher quality, and graduate and postsecondary improvement. The Act is designed to improve access, affordability, and quality in higher education. 

#  Since community colleges serve so many low-income and under-represented students, they are important direct or indirect recipients of federal funding to build institutional capacity, assist students in affording college, and increase minority participation. 

# 

# Many other federal agencies provide support, including the National Science Foundation, the U.S. Departments of Agriculture, Commerce, Defense, Energy, Health and Human Services, Housing and Urban Development, Interior, Justice, Labor, Transportation, and others.

**Federal Funding for Community Colleges in FY 2002: Programs and
Approximate Amount going to Community or Technical Colleges**

*How is the federal government supporting community or technical
colleges? The program descriptions that follow outline major initiatives
and the funding that goes directly or indirectly to those institutions.
Each heading includes the program name, the authorizing legislation act
and title, and the amount going to community or technical colleges.
Within the program descriptions, the term "two-year institutions" is
used at times to reflect the terminology used by data gatherers.*

**U.S. Department of Education Funding Directly to Community Colleges:**

## **Child Care Access Means Parents in School (CCAMPIS)**

## **(Higher Education Act, Title IV-A) \$5.85 M**

CCAMPIS supports the participation of low-income parents in
postsecondary education through provision of campus-based childcare
services. In 2002, there were 135 awards (new and continuation) to
community colleges, totaling \$5.85 million. Total CCAMPIS funding for
FY 2002 was \$22.2 million, going to 441 colleges.
**(<http://www.ed.gov/programs/campisp/index.html>)**

***Developing Hispanic-Serving Institutions***

***(Higher Education Act, Title V) \$48.2 M***

Grants of up to five years in duration support expanding capacity to
serve Hispanic and

low-income students at institutions with at least 25 percent Hispanic
enrollment. In FY 2002, two-year institutions received \$48.2 million of
the \$86 million provided for new and continuation projects. In new 2002
awards, two-year institutions submitted 23 of 49 applications, and
received 16 of 34 new awards.
**(<http://www.ed.gov/programs/idueshsi/index.html>)**

***Fund for the Improvement of Postsecondary Education (FIPSE)***

***(Higher Education Act, Title VII-B) \$7-8 M***

FIPSE supports exemplary, locally developed projects that are models for
innovative reform and improvement in postsecondary education. FIPSE
competitions include the following categories: *Comprehensive, US-Brazil
Higher Education Consortia, European Community-United States of America
Cooperation Program in Higher Education and Vocational Education and
Training, Program for North American Mobility in Higher Education,* and
*Learning Anytime Anywhere Partnerships* grants for postsecondary
distance education. In FY 2002, nearly 60 new or continuation awards
were made to community colleges or to groups that included a community
college as a key partner. Two-year institutions were the lead or key
partner in 20 of the new awards, with \$2.9 million going to them in
2002. In addition, nearly 40 two-year colleges or associations had
continuation awards during part or all of FY 2002. The total multi-year
amount of those awards was \$15.6 million.
**(<http://www.ed.gov/about/offices/list/ope/fipse/index.html>)**

# 

## **Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)**

## **(Higher Education Act, Title IV-A) \$16.4 M**

GEAR UP is a discretionary grant program designed to increase the number
of low-income students who are prepared to enter and succeed in
postsecondary education. Five-year grants to states and partnerships
support services at high-poverty middle and high schools. GEAR UP
grantees serve an entire cohort of students beginning no later than the
seventh grade and follow that cohort through high school. Funds are also
used to provide college scholarships to low-income students.  \$283.2
million was awarded to grantees in FY 2002, with \$16.4 million going
directly to 39 community colleges. 
**(<http://www.ed.gov/programs/gearup/index.html>)**

## **International Education Programs** 

## **(Higher Education Act, Title VI) \$1.35 M**

The three international education programs supporting community colleges
include: *Business and International Education* (BIE), *Groups Projects
Abroad* (GPA), and *Undergraduate International Studies and Foreign
Language* (UISFL). The International Education and Foreign Language
Studies domestic programs are designed to strengthen the capability and
performance of American education in foreign languages and in area and
international studies. BIE is the largest of these programs for
community college participation, accounting for two-thirds of the
funding going to those institutions through the international education
programs. Activities are designed to improve academic teaching of
business curriculum and to conduct outreach that expands the capacity of
the business community to engage in international economic activities.
Community colleges received 10 of the 33 BIE awards, two of the 57 GPA
awards, and two of the 30 UISFL awards.
**(<http://www.ed.gov/about/offices/list/ope/iegps/index.html>)**

##### Minority Science and Engineering Improvement Program 

***(Higher Education Act, Title III-E) \$1.5 M***

This program assists predominantly minority institutions in improving
science education and increasing the participation and transition of
minorities (particularly women) into science and engineering careers.
Eligible applicants include two-year public or private non-profit
institutions that award associate degrees, have over 50% minority
enrollment, have curricula that include science and engineering
subjects, and enter into a partnership with a four-year minority
institution of higher education. In FY 2002, six new and 13 continuation
awards were made to two-year institutions. They received \$1.5 million
of the \$8.4 million awarded to all institutions. Two-year institutions
submitted 16 of the 106 applications, and received six of the 42 new
awards in FY 2002.
**(<http://www.ed.gov/programs/iduesmsi/index.html>)**

##### Preparing Tomorrow's Teachers to Use Technology

***(now HEA, Title II-B) \$1.2 M***

Preparing Tomorrow's Teachers to Use Technology (PT3) provides grants
for innovative program improvements to help future teachers become
proficient in the use of modern learning technologies, particularly for
teaching within schools in low-income communities or rural areas. The
focus is on preparing teachers who can assist all students in meeting
challenging state and local academic content and standards. Awards go to
consortia of higher education institutions, state agencies, school
districts, nonprofit organizations, and other interested organizations.
No new awards were made in FY 2002, but six community colleges received
\$1.2 million in continuation funds. The No Child Left Behind Act moved
the PT3 program to the authority of the Higher Education Act (Title
II-B), and new awards are being made in FY 2003. According to the new
requirements that fit HEA, Title II, funds will be awarded to consortia
that include at least one baccalaureate level institution of higher
education, one state or local educational agency, and one other entity.
**(<http://www.ed.gov/programs/teachtech/index.html>)**

##### Strengthening Institutions

***(Higher Education Act, Title III-A) \$61.6 M***

Funding is provided for community colleges and other postsecondary
institutions with at least 50 percent of students receiving financial
assistance under Title IV of the Higher Education Act. Awards may be
used for improving and strengthening academic quality, management, and
fiscal stability. This title also includes \$17.5 million for
strengthening Tribally Controlled Colleges and Universities. Community
colleges were 27 of the 29 tribal colleges receiving awards, and the
other two offer both associates and higher degrees. In FY 2002, 209
two-year institutions received \$61.6 million of the \$127.2 million
available. In new awards, two-year institutions submitted 100 of the 221
applications, and received 28 of the 38 awards.
**(<http://www.ed.gov/programs/iduestitle3a/index.html>)**

***Strengthening Historically Black Colleges and Universities***

***(Higher Education Act, Title III-B) \$21.7 M***

Historically Black Colleges and Universities (HBCUs) receive funding to
help strengthen infrastructure and achieve greater financial stability.
Funds support activities such as construction, community outreach and
student services.  In FY 2002, 16 two-year public and private HBCU
institutions received \$21.7 million of the total \$206 million
available. **(<http://www.ed.gov/programs/iduestitle3b/index.html>)**

## **Tech Prep Demonstration Grants** 

## **(Perkins III, Title II) \$5 M**

The Carl D. Perkins Vocational and Technical Education Act of 1998
(Perkins III) authorizes this pilot program, funded at \$5 million per
year in 2001and 2002. Funding supports tech-prep education programs that
include the location of a secondary school on the site of a community
college. All nine funded sites provide the opportunity for students to
receive postsecondary credit while attending high school. Eight of the
nine sites are headed by one or more community colleges.
**(<http://www.ed.gov/programs/techprepdemo/index.html>)**

***TRIO Programs***

***(Higher Education Act, Title IV-A) \$266.6 M***

"TRIO" encompasses a group of programs designed to increase college
awareness, preparation, retention, and graduation rates for underserved
students, primarily through counseling, tutoring, and study skill
instruction. In FY 2002, two-year institutions received \$266.6 million
of the \$760 million available under programs for which they are
eligible. Program funding included Talent Search (\$143.5 M total,
\$48.77 M to community colleges), Upward Bound (\$264.2 M, \$73.3 M to
community colleges), Upward Bound Math and Science (\$31.8 M, \$4.35 M
to community colleges), and Educational Opportunity Centers (\$48 M,
\$14.2 M to community colleges). These programs primarily target
students before college-aged and are often based at higher education
institutions. The Student Support Services program provides guidance and
activities for low-income, first generation college students (\$262.7 M,
\$125.8 M to community colleges). In addition, nearly \$200,000 went to
one community college for dissemination activities---one of 17 awards in
that area. TRIO programs do not hold new competitions in all categories
during the same year. In FY 2002, two-year institutions submitted 403 of
the 1202 new applications for the Educational Opportunity Centers and
Talent Search competitions, and received 229 of the 614 new awards. In
the competition for training, two-year institutions submitted four of 68
applications, and received none of the 29 awards.
**(<http://www.ed.gov/about/offices/list/ope/trio/index.html>)**

## **Tribally Controlled Postsecondary Vocational and Technical Institutions**

## **(Perkins III, Title I) \$6.5 M** 

This program provides funding to tribally controlled colleges that do
not receive funds under the Tribally Controlled College or University
Assistance Act of 1978. Currently, two institutions receive funding.
Tribal colleges also receive funding under a set-aside of 1.25 percent
(or \$17.7 M in 2002) of Perkins state grant appropriations for
discretionary grants to tribes, tribal organizations, and Alaska Native
entities. **(<http://www.ed.gov/programs/tcpvi/index.html>)**

U.S. Department of Education Funding to States for Distribution to
Community Colleges (and others):

## **Adult Education and Family Literacy Act State Grants** 

## **(Title II) \$141.2 M**

Formula-based basic state grants provide services for literacy, as well
as Graduate Equivalency Diploma (GED) and English as a Second Language
(ESL) preparation for adults and youth. Although exact figures for
funding to community and technical colleges are not available, it is
estimated that 25 percent of the \$564.7 million is going to those
institutions. An additional \$1.5 million went to two colleges receiving
Community Technology Centers program grants and one receiving an English
Literacy and Civics Education grant. State Directors are the key
contacts for information on programs within each state.
**(<http://naepdc.org/Members/members_home.html>)**

## **Secondary and Technical Education, State Basic Grants** 

## **(Perkins III, Title I) \$381.6 M**

The Carl D. Perkins Vocational and Technical Education Act of 1998
(Perkins III) provides formula-based funding to help states, local
education agencies and postsecondary institutions implement career and
technical education programs.
**(<http://www.ed.gov/programs/ctesbg/index.html>).** Each state or
territory decides what percentage of funds goes to secondary and
postsecondary education, with the postsecondary portion ranging in 2002
from 9 to 75 percent. The funds for postsecondary education are allotted
by formula within each state based on the relative number of
economically disadvantaged students participating in postsecondary
vocational education programs. The number of students receiving Pell
grants is one factor. In FY 2002, states allocated \$381.6 million to
postsecondary educational institutions. This is approximately 39 percent
of the \$981.9 million available. The state directors are the key
contacts for programs within a state. **(<http://www.careertech.org/>)**

## **Tech Prep Education Grants** 

## **(Perkins III, Title II) \$108 M**

Tech Prep grants are awarded to states, which in turn allocate funds to
consortia consisting of secondary and postsecondary institutions. These
consortia help students attain a common core of required proficiencies
in mathematics, science, reading, writing, communications, economics and
workplace skills through applied, contextual academics and integrated
instruction, in a coherent sequence of courses. Tech-Prep programs are
designed to lead to an associate degree or postsecondary certificate in
a technical career field and, where appropriate, link to courses of
study at four-year institutions.  Consortia establish agreements
encompassing at least two years of secondary school and at least two
years of postsecondary education, and must include a public or private
nonprofit institution of higher education.  The postsecondary
institutions are predominantly community and technical colleges.
**(<http://www.ed.gov/programs/ctesbg/index.html>)**

Additionally, some programs included in the section on direct funding to
community colleges, such as GEAR UP, make state, as well as
institutional, awards.

# U.S. Department of Education Funding or Support to Individuals who Attend Community Colleges:

## The programs that follow are authorized under Title IV of the Higher Education Act, and provide grants or loans to postsecondary students or their parents. The Pell Grant program provides the largest amount of support for community college students, particularly since the tuition at those institutions is lower. Information on funding for grants and loan programs can be found at **([*http://www.ed.gov/about/offices/list/ope/hep.html*](http://www.ed.gov/about/offices/list/ope/hep.html)).**

**Funding to Students** *(All Programs are under the* *Higher Education
Act, Title IV)*

## **Pell Grants \$3.3 Billion**

The Pell Grant program promotes 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 U.S. Department of
Education\'s student aid programs, with individual awards varying
according to the financial circumstances of students and their families.
The amount, currently up to a maximum of \$4,050 per year, depends on
financial need, cost of attending school, full-time or part-time status,
and whether the student attends for a full academic year or less.
Additionally, ability to award the maximum may be affected by whether
the total appropriation for Pell grants is sufficient to cover the
number of students demonstrating need. From 2000 to 2002, the number of
requests rose by nearly 25 percent, compared to a 5 percent increase
from 1997 to 1999. These increases come primarily from a rise in the
number of independent students---a key segment of the community college
enrollment. There were more than 1.6 million community college students
receiving \$3.3 billion in Pell grants in 2001-2002. Pell grants
comprise the single largest source of federal funds going to community
colleges.

**Campus-Based Programs**: *The federal government also provides loans
or other support. Because the tuition at community colleges is
relatively low, most students with the greatest need are covered by Pell
grants. Campus-based programs, and the approximate amounts going to
community college students, include:*

***Federal Supplemental Educational Opportunity Grants \$145.4 M***

The Federal Supplemental Educational Opportunity Grant (FSEOG) program
provides grant assistance of \$100 to \$4,000 per academic year to
undergraduate students with demonstrated financial need. \$906.7 million
was awarded in the 2000-2001 academic year, \$145.4 million of which
went to more than 320,000 students at two-year institutions. In
addition, two-year institutions received more than \$3.5 million in
administrative cost allowances for operating FSEOG at their campuses.

***Federal Work-Study \$146.9 M***

The Federal Work-Study program provides grants to participating
institutions to pay up to 75 percent of the wages of needy undergraduate
and graduate students working part-time to help pay their college costs.
The school or other eligible employer provides the remaining 25 percent
of the student\'s wages. More than 220,000 students in community
colleges received nearly \$147 million of the \$1 billion allotted for
work-study in 2002. Additionally, two-year institutions received \$7.4
million in federal administrative cost allowances for operating their
work-study programs.

**Loan Programs:** *While they do not provide direct aid to students or
parents, federal loan programs assist students in locating the funds to
pay for college. Several loan programs offer low interest, based on
student need. Students at community colleges are less likely than those
in baccalaureate institutions to participate in these programs, in large
part because the tuition is significantly lower at community and
technical colleges.. The figures indicated below represent the amount of
funds borrowed under these federal programs by students (or parents) in
public and private two-year institutions.*

***Federal Perkins Loans (Also a Campus-Based Program) \$31.7 M***

The Federal Perkins Loan program provides students with demonstrated
need long-term, low-interest loans of up to \$4,000. Perkins Loan
borrowers pay no interest during in-school, grace, and deferment
periods, and are charged 5 percent interest during the principal
repayment period. In the 2000-2001 academic year, students at two-year
institutions had loans of \$31.7 million of the \$1.14 billion for all
Perkins loans. In addition, two-year institutions received \$1.9 million
in administrative cost allowance for managing the program on their
campuses.

***Federal Direct Loans \$36.1 M***

The federal government provides subsidized loans based on need, as well
as unsubsidized loans. The Federal Direct Loan Program includes Stafford
Subsidized and Unsubsidized Loans, and Parent Loans for Undergraduate
Students (PLUS). In 2000, 85,000 students at two-year institutions
borrowed \$22 million of the \$6.3 billion total, and represented more
than 6 percent of all borrowers. An additional \$13.3 million was
borrowed by 48,000 two-year students participating in the Stafford
unsubsidized program. Families of 1000 students participated in the PLUS
program, borrowing \$800,000.

***Federal Family Education Loans \$1.5 Billion***

The Federal Family Education Loan (FFEL) program, formerly known as the
Guaranteed Student Loan program, empowers state and private nonprofit
agencies to guarantee student loans and to establish loan insurance for
lenders without access those entities. In FY 2000, 340,000 students at
two-year institutions had Stafford subsidized loans of \$89.5 million
out of the \$12.56 billion for that year. Students at these institutions
were nearly 12 % of all Stafford borrowers. For the PLUS program, 12,000
borrowers had loans of \$60 million out of the \$2.6 billion.

# Demonstration, Research, or Grant Projects affecting Community Colleges:

There are individual demonstration, research, or project grants that
often go to community colleges, among other institutions. Additionally,
the U.S. Department of Education provides funding to students in need of
special or vocational rehabilitation education, and to programs that
serve them. While specific data on the amounts expended to community
colleges or their students is not available, community colleges are
important providers of those programs. The Office of Special Education
Programs also provides support for programs preparing teachers in
specialized areas or minority institutions and projects of national
significance that develop, evaluate, and disseminate models for systemic
improvement.

**Tax-Assistance for Education:**

Additional information can be obtained from IRS Publication 970: Tax
Benefits for Education, www.irs.gov/pub/irs-pdf/p970.pdf. (Note:
eligibility in individual programs may also be affected by participation
in the other tax benefit programs)

####### HOPE and Lifetime Learning Tax Credits 

For students in the first two years of college or other eligible
postsecondary training, taxpaying students or their families are
eligible for a tax credit equal to 100% of the first

\$1,000 of tuition and fees not covered by grants, and 50% of the second
\$1,000.Lifetime Learning Tax Credits are offered to students who are
part-time, beyond the first two

years of college, or upgrading skills, providing a 20%credit for up to
\$10,000 in tuition and fees.
**(<http://www.ed.gov/offices/OPE/PPI/HOPE/index.html>)**

# Employer-Provided Education Benefits

Workers receiving employer-provided education benefits can exclude up to
\$5,250 of that from their taxable income.

# Tuition and Fees Deduction

Up to \$3,000 may be deducted from taxable income for qualified tuition
and related expenses for the taxpayer, spouse or dependent.

# Student Loan Interest Deduction

Depending on income level, up to \$2,500 of interest paid on student
loans for postsecondary education and training expenses may be
deductible. Taxpayers having loans cancelled under a qualified program
established to recruit students to work in designated areas of need are
not subject to taxes on the amount cancelled.

# Programs to Encourage Saving for Education 

Other tax benefits are available for Coverdell Education Saving
Accounts, Qualified Tuition Programs for pre-paid tuition savings plans,
IRA withdrawals for qualified education expenses, and Education Savings
Bonds programs.

#### **Other Federal Departments or Agencies Funding Community Colleges**

*Additional federal departments and agencies provide funding to
community and technical colleges---either directly, through state grants
that subsequently go to institutions, or through funding to individuals
who purchase services, education or training from those institutions.
The agency providing the largest amount of direct grants to community
colleges is the National Science Foundation.*

***National Science Foundation (NSF) \$65.9 M***

NSF promotes science, mathematics, engineering and technology education.
Under the Division of Undergraduate Education (DUE), the largest program
for community colleges is the *Advanced Technological Education* (ATE),
with two-year colleges as the lead partners. Designed to improve
technological education at the secondary and undergraduate levels,
awards go to ATE Projects, ATE Centers, and Articulation Partnerships
(to encourage articulation from two-year to four-year postsecondary
institutions). Activities focus on curriculum, teacher preparation or
professional development, program improvement, and articulation. In FY
2002, 124 community colleges received \$37.6 million in ATE funding.

Other Division of Undergraduate Education programs include:

-   *Course, Curriculum and Laboratory Improvement* (CCLI), with 11
    awards to two-year colleges totaling \$913,000

-   *Computer Science, Engineering, and Mathematics Scholarships*
    (CSEMS), with 26 two-year institutions receiving \$7.9 million

-   *National Science, Technology, Engineering, and Mathematics Digital
    Library Program* (NSDL), with two community colleges receiving a
    total of \$591,000

-   *Science, Technology, Engineering, and Mathematics Talent Expansion
    Program* (STEP), with four two-year institutions receiving awards
    totaling \$859,000.

The Division of Human Resource Development supports programs to enhance
the quality of teaching and expand diversity. The largest program for
community colleges is the *Tribal Colleges and Universities Program*,
which provided 18 colleges with \$11.1 million in FY 2002. Other
programs in this area provided another nearly \$6 million to 10 two-year
institutions. Finally, 12 two-year institutions received \$985,000 in
other NSF projects. In terms of new awards for FY 2002, 134 two-year
institutions received multi-year awards totaling \$70.9 million over the
life of the awards.
**([www.nsf.gov/home/menus/funding.htm](http://www.nsf.gov/home/menus/funding.htm))**

***Department of Agriculture*** programs include the Rural Utilities
Service's Distance *Learning and Telemedicine Grant Program*, *Rural
Housing Service*, and *Rural Business/ Cooperative Service* to build
competitive businesses and cooperatives.
**([www.rurdev.usda.gov](http://www.rurdev.usda.gov/))**. The Research,
Education, and Economics Mission Area's *Cooperative State Research,
Education, and Extension Service* programs promote minority student
participation in agriculture-related curricula and careers.
**([www.reeusda.gov](http://www.reeusda.gov/))**

***Department of Commerce*** provides programs through the Economic
Development Administration to promote a favorable business environment
for private capital investment and higher-skill, higher-wage jobs---with
decisions on funding made by the EDA's regional offices**.
([www.doc.gov/eda](http://www.doc.gov/eda))**. Some of those programs
have funded community colleges, including almost \$14.5 million under
the *Public Works and Development Facilities Program*. Other programs of
interest include *Local Technical Assistance*; *Planning for Economic
Development Districts, Indian Tribes, States and Urban Areas*; and
technical assistance and research projects. In addition, the National
Telecommunications and Information Administration's *Technology
Opportunities* and *Public Telecommunications Facilities* programs
support activities that could be provided by community colleges,
although none received funding in FY 2002.
**([www.ntia.doc.gov](http://www.ntia.doc.gov/))**

***Department of Defense*** provides scholarships, fellowships, and
institutional grants under the *National Security Education Program* and
the *National Flagship Language Initiative*.
**([www.nflc.org](http://www.nflc.org/)).** The *Dual Use Applications
Program* focuses on technologies that can be used for military and
commercial use, and encourages colleges to partner with industry and/or
other education institutions**.
([www.dtic.mil/dust/](http://www.dtic.mil/dust/))**

***Department of Energy*** programs include several that focus on
internships for students (*Community College Institutes*, *Science
Undergraduate Laboratory Internship*) or faculty (*Faculty and Student
Teams*), as well as possible resources through the *Used Energy-Related
Lab Equipment* program **(<http://erle.osti.gov/erle/>),** and *Energy
Conservation Grants* distributed through state officers.
**([www.energy.gov](http://www.energy.gov/))**

***Department of Health and Human Services*** (HHS) has several programs
to increase the number of nurses, including the *Basic Nursing and
Practice Grants*, *Nursing Workforce Diversity*, and *Minority Faculty
Fellowships*. In many cases, partnerships with baccalaureate
institutions strengthen community college applications.
**([www.bhpr.hrsa.gov](http://www.bhpr.hrsa.gov/)).** Programs to assist
students in health care fields include the *Health Careers Opportunity
Program*, *Nursing Student Loan Program*, and *Scholarships for
Disadvantaged Students*. The *Allied Health Program* awards grants to
expand education, enrollment, and clinical training sites. The *Nursing
Education Loan Repayment Program* (NELRP) offers registered nurses
substantial assistance in repaying educational loans in exchange for
service in eligible facilities located in areas experiencing a shortage
of nurses. **(<http://bhpr.hrsa.gov/nursing/loanrepay.htm>).** Also
under HHS, the National Institutes of Health's (NIH) *Bridges to the
Baccalaureate D*egree program offers grants to partnerships that include
two-year institutions. NIH additionally offers research and faculty
development awards, several of which focus on minority institutions**.
([www.nigms.nih.gov](http://www.nigms.nih.gov/))**

Finally, HHS's Administration for Children and Families and oversees the
*Temporary Assistance for Needy Families* (TANF) Program that was
created by the Welfare Reform Law of 1996. TANF provides funding to
states to assist in plans to move families from dependence on welfare or
public assistance into financial independence. Along with an emphasis on
work, provisions allow for upgrading of skills through education or
job-training programs, many of which may be implemented through
community colleges.
**([www.acf.hhs.gov/programs/ofa/](http://www.acf.hhs.gov/programs/ofa/))**

***Department of Housing and Urban Development*** houses the Office of
University Partnerships, with five programs where community colleges are
eligible applicants. The *Community Outreach Partnership Centers*,
*Hispanic Serving Institutions Assisting Communities*, *Alaska
Native/Native Hawaiian Assisting Communities*, *Historically Black
Colleges and Universities*, and *Tribal Colleges Programs* engage
colleges in community development to benefit low-, or low- and
moderate-income residents. **([www.oup.org](http://www.oup.org/))**

***Department of the Interior***, through the Bureau of Indian Affairs,
provides funds to Tribally-Controlled Community Colleges through several
programs designed to support improved opportunities for education, as
well as expand endowments and facilities. More than \$30 million
supported community colleges in FY 2002.
**([www.doi.gov](http://www.doi.gov/))**

***Department of Justice*** operates several Community Oriented Policing
Services for which community colleges are eligible, including the
*Making Officer Redeployment Effective* and the *Universal Hiring*
programs. The Office of Police Corps and Law Enforcement Education
provides college education assistance to students. Many other programs
offer support to state and local efforts to enhance law enforcement or
crime prevention. **([www.ojp.usdoj.gov](http://www.ojp.usdoj.gov/))**.

***Department of Labor*** provides a number of programs under the
Employment and Training Administration that offer opportunities to
community colleges, or funding to those who may use the services of
these institutions. Primary funding under the Workforce Investment Act
flows through the *Individual Training Account* delivery system,
allowing youth and adult clients to seek training and services through
community colleges or other entities. Other programs of interest include
the *One-Stop Delivery System*, *Migrant and Seasonal Farmworkers*, as
well as the *National Emergency Grants* that provide funds for disaster
relief or training for major economic dislocation.
**([www.doleta.gov](http://www.doleta.gov/))**

***Department of Transportation*** offers student internships, as well
as partnerships with minority serving institutions. Additionally, the
*Garrett A. Morgan Technology and Transportation Futures Program*
includes community college partnerships that 1) assist in mid-career
re-training of adults or 2) focus on advanced transportation
technologies.
**([http://education.dot.gov](http://education.dot.gov/))**

## **Corporation for National and Community Service** supports opportunities for Americans of all ages and backgrounds to engage in service that addresses the nation's educational, public safety, environmental, and other human needs. Annually, approximately 50,000 individuals serve their communities for 20-40 hours per week through AmeriCorps. Participants receive an education award of up to \$4,725 to pay for college, graduate school, or to pay back qualified student loans. Learn and Serve America grants support schools, colleges, and non-profit groups in supporting service by students. Community colleges are recipients of Learn and Serve awards, and many of their students receive AmeriCorps grants for their community service. Funding in 2002 totaled \$407 million. **([*www.nationalservice.org*](http://www.nationalservice.org/))**

***Environmental Protection Agency*** funds a number of programs with
opportunities for community colleges, many of which are implemented
through regional grants. The *Brownfields Economic Redevelopment
Initiative* includes environmental education and job training projects
that could include community colleges as partners, subgrantees, or
workforce development sites.
**([www.epa.gov/swerosps/bf/topics.htm](http://www.epa.gov/swerosps/bf/topics.htm)).**

***National Endowment for the Humanities*** (NEH) supports research,
education, and public programs in history, literature, philosophy,
foreign language, and other humanities disciplines. NEH programs of
interest to community colleges include: *Education Development and
Demonstration Grants*, *Institutional Grants*, *Seminars and
Institutes*, *Public Programs, Challenge Grants*, as well as research,
fellowship, and internship opportunities. Community colleges, or
individuals affiliated with them, received more than \$1.2 million in FY
2001. **([www.neh.gov](http://www.neh.gov/)**)

***Small Business Administration*** offers several programs that may
involve community colleges in activities to assist small businesses.
*The Small Business Development Centers* (SBDC) connect resources from
federal, state and local governments with those of education and the
private sector. Community colleges in five states lead SBDCs, while many
other colleges have representatives on state or local advisory boards.
**([www.sba.gov/sbdc](http://www.sba.gov/sbdc))**

*Many of these departments and agencies---as well as others not
appearing on this list---also offer other internship opportunities for
students and faculty, research grants, and demonstration projects that
may involve community colleges or their students. In addition, community
colleges are often sub-grantees or partners in grants or contracts that
have other institutions or entities as the lead partner.*

[^1]: **NOTES:**

    ^?^Information in this publication is current as of April 17, 2003.

[^2]: U.S. Department of Education, Office of Postsecondary Education
    Policy, Planning and Innovation, Federal Student Loan Programs Data
    Book: Fiscal Years 1997-2000 and Federal Campus-Based Programs Data
    Book 2002.

[^3]: American Association of Community Colleges, National Profile of
    Community Colleges: Trends and Statistics, Third Edition (2000).

[^4]: U.S. Department of Education, National Center for Education
    Statistics. Digest of Education Statistics, 2001,Table 176, NCES
    2002--130. Washington, DC: 2002.

[^5]: U.S. Department of Education, National Center for Education
    Statistics. Digest of Education Statistics, 2001,Table 177, NCES
    2002--130. Washington, DC: 2002.

[^6]: U.S. Department of Education, National Center for Education
    Statistics. Digest of Education Statistics, 2001,Table 207, NCES
    2002--130. Washington, DC: 2002.

[^7]: ^?^U.S. Department of Education, National Center for Education
    Statistics. 1999-2000 National Postsecondary Student Aid Study
    (NPSAS:2000), Table 6, NCES 2002--168. Washington, DC: 2002.

[^8]: ^?^ American Association of Community Colleges, National Profile
    of Community Colleges: Trends and Statistics, Third Edition (2000).

[^9]: U.S. Department of Education, National Center for Education
    Statistics. Digest of Education Statistics, 2001, NCES 2002--130.
    Washington, DC: 2002.

[^10]: U.S. Department of Education, National Center for Education
    Statistics. Digest of Education Statistics, 2001,Table 176, NCES
    2002--130. Washington, DC: 2002.

[^11]: U.S. Department of Education, National Center for Education
    Statistics. Digest of Education Statistics, 2001,Table 316, NCES
    2002--130. Washington, DC: 2002.

[^12]: U.S. Department of Education, National Center for Education
    Statistics. Digest of Education Statistics, 2001,Table 322, NCES
    2002--130. Washington, DC: 2002.

[^13]: American Association of Community Colleges, National Profile of
    Community Colleges: Trends and Statistics, Third Edition (2000).

[^14]: