Department of Education

TEACH Grants

Fiscal Year 2018 Budget Proposal

CONTENTS

Page

TEACH Grants....................................................................................................................P-1
TEACH GRANTS

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TEACH GRANTS

(Higher Education Act of 1965, Title IV, Part A, Subpart 9)

(dollars in thousands)

FY 2018 Authorization: Indefinite

Mandatory Budget Authority: 

2017 2018 Change

TEACH new loan subsidies1 $14,930 $24,572 +$9,642

TEACH net re-estimate 138,412 0 -138,412

TEACH Total net subsidy +153,342 24,572 -128,770

 1For budget and financial management purposes, this program is operated as a loan program under the Federal Credit Reform Act of 1990; budget authority 

reflects the estimated net present value of future Federal non-administrative costs for awards made in a given fiscal year.

PROGRAM DESCRIPTION

The TEACH Grant program awards annual grants of up to $4,000 to eligible undergraduate and 

graduate students who agree to serve as full-time teachers in mathematics, science, foreign 

language, bilingual education and English language acquisition, special education, or reading at 

a high-need school for not less than 4 years within 8 years of graduation. To be eligible for a 

TEACH Grant award, enrolled students must have a grade point average of at least 3.25 on a 0 

to 4.0 scale and be completing academic coursework and other requirements necessary to 

begin a career in teaching, or plan to complete such coursework and requirements prior to 

graduation (For first-year students, grade point average is determined using cumulative 

secondary school grades.). In addition, teachers, retirees from another occupation with 

expertise in a field in which there is a shortage of teachers, or current or former teachers using a 

high-quality alternative route to certification are eligible to receive TEACH awards to obtain a 

graduate degree. 

TEACH Grant recipients are required to meet the service obligation described above and certain

reporting requirements. For students who fail to fulfill these requirements, grants are converted 

to Direct Unsubsidized Stafford Loans with interest accrued from the date the grants were 

awarded. 

All applicants must sign a TEACH Grant Agreement to Serve acknowledging that grants will be 

converted to loans if the required service obligation is not completed. A recipient must certify 

within 120 days of completing or otherwise leaving their TEACH Grant program of study, and 

each year thereafter, that they are meeting or intend to meet the teaching requirements of the

service obligation. If the recipient is not in a qualifying position (including periods of 

unemployment) the recipient must still report annually on their intent to fulfill their service 

obligation in order to avoid having the TEACH Grant converted to a loan.

Participating institutions of higher education must provide high quality teacher preparation and 

professional development services, including extensive clinical experience as part of preservice 
TEACH GRANTS

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preparation; be financially sound; provide pedagogical coursework, or assistance in the 

provision of such coursework, including the monitoring of student performance, and formal 

instruction related to the theory and practice of teaching; and provide supervision and support 

services to teachers, or assistance in the provision of such services, including mentoring 

focused on effective teaching skills and strategies.

Total net subsidy costs for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2013.............................................................. ................$14,760

2014.............................................................. ....................5,045

2015.............................................................. .................-15,294

2016.............................................................. ..................10,597

2017.............................................................. ................153,342

NOTE: Subsidy costs include net reestimates (combined upward and downward) of prior cohorts and net 

modifications, which may produce significant annual fluctuations. Negative numbers indicate estimated 

future Federal revenues exceed estimated future Federal costs.

FY 2018 BUDGET PROPOSAL

The estimated loan subsidy amount for fiscal year 2018 is $24.6 million. Aid available in fiscal 

year 2018 is anticipated to reach more than $101.1 million. 

By the end of academic year 2015–2016, the TEACH program was making awards at 

approximately 775 institutions. Based on administrative program data, the Administration 

projects that 65 percent of students receiving TEACH Grants will fail to complete their required 

service commitment and will have their grants converted to loans. Previously, the 

Administration relied on national surveys and teacher loan forgiveness program data to develop 

its estimate that 74 percent of grants would convert to loans. The 2017 net upward reestimate 

of $138.4 million is due primarily to the updated grant to loan conversion assumption, indicating 

more teachers are successfully fulfilling the program’s requirements than previously assumed.

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.
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PROGRAM OUTPUT MEASURES

Measures: 2016 2017 2018

Recipients 31,538 32,164 32,801

Aid available to students (dollars in 

thousands) $91,000 $92,804 $101,173

Maximum award (in whole dollars) $4,000 $4,000 $4,000

Average award (in whole dollars) $2,885 $2,885 $3,084

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of results is based on the 

cumulative effect of the resources provided in previous years and those requested in fiscal year 

2018 and future years, as well as the resources and efforts invested by those served by this 

program. Data on these measures is collected through the National Student Loan Data System 

(NSLDS).

Goal: To ensure the TEACH Grant program helps recruit teachers.

Objective: Ensure that more TEACH Grant recipients are fulfilling their service obligation 

through qualified teaching service.

Measure: TEACH Grant recipients with one or more years of qualified teaching service after 6 

or more years following their last TEACH award.

Year

Target: Total Percentage with 

Teaching Service

Actual: Total Percentage with 

Teaching Service

2009 23.0% 22.9%

2010 25.0 24.1

2011 27.0 28.1

2012 29.0

2013 31.0

2014 33.0
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Distribution of TEACH Grant Awards by Type of Institution

The table below shows the award year 2015–2016 distribution of TEACH Grant assistance by 

type of institution (percentage and total funding); and the number of recipients and average 

award by institution type.

Distribution of TEACH Grants by Type of Institution 2015–2016

Institution Type Awards Recipients Average 

Award

Percent of TEACH 

Grant Aid

Public 4-Year $40,259,501 14,216 $2,832 45.02%

Public 2-Year 52,683 20 2,634 0.09%

Private 4-Year 38,267,608 13,289 2,880 42.79%

Proprietary 4-Year 10,848,130 3,291 3,296 12.13%

TOTAL 89,427,922 30,816 2,902 100.00%

NOTE: Percentage may not total to 100 percent due to rounding.