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Department of Education

STUDENT AID OVERVIEW

Fiscal Year 2024 Budget Request

CONTENTS

Page

Federal Student Aid Programs......................................................................................................1

FY 2024 Budget Proposal.............................................................................................................2

Student Aid Reform Proposals......................................................................................................2

Student Aid Programs Output Measures ......................................................................................3

Program Performance Information................................................................................................5
STUDENT AID OVERVIEW

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FEDERAL STUDENT AID PROGRAMS

(Higher Education Act of 1965, Title IV)

(dollars in thousands)

FY 2024 Authorization: Indefinite

Budget Authority: Period of fund availability: 

2023 Appropriation Footnote2024 Request Footnote ChangeFootnote

Grants and Work Study:

Pell Grants

Pell Grant Discretionary funding $22,475,352 $24,275,352 $1,800,000

Pell Grant Mandatory funding1 6,093,000 8,203,000 +2,110,000

Subtotal, Pell Grants 28,568,352 32,478,352 +3,910,000

Federal Supplemental Educational 

Opportunity Grants 910,000 910,000 0

Federal Work Study 1,230,000 1,230,000 0

Iraq and Afghanistan Service 

Grants

578 477 -101

TEACH Grants2 56,083 39,687 -16,396

Total, Grants and Work-Study 30,765,013 34,658,516 +3,893,503

Net Loan Subsidy, Loans:3

Federal Family Education Loans 

(FFEL)4 4,648,809 0 -4,648,809

Federal Direct Student Loans5 62,411,175 26,592,828 -35,818,347

NOTE: Table reflects discretionary and mandatory funding.

1Amounts appropriated for Pell Grants for 2023 and 2024 include mandatory funding provided in the Higher 

Education Act, as amended, to fund both the base maximum award and add-on award.

2TEACH Grants is operated as a credit program. Amounts reflect the new loan subsidy, or the net present value of 

estimated future costs. The FY 2023 amount includes a net downward reestimate of $12.7 million and a net upward 

modification. 3Total net subsidy in any fiscal year reflects the estimated net cost of the loan program for that fiscal year. It includes 

both positive and negative subsidies and upward and downward impacts of reestimates and modifications of existing 

loans. A negative subsidy occurs when the present value of cash inflows to the Government is estimated to exceed 

the present value of cash outflows. Negative subsidy is reported (as negative outlays) to a negative subsidy receipt 

account.

4Budget authority for FFEL does not include the FFEL Liquidating account. Amount for 2023 reflects a net upward 

reestimate of $2.0 billion and an upward modification of $2.6 billion. This amount also includes reestimates related to 

the Ensuring Continued Access to Student Loans Act (ECASLA).

5Amount for 2023 includes a net downward reestimate of $1.9 billion and a net upward modification of $42.5 billion.
STUDENT AID OVERVIEW

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FY 2024 BUDGET PROPOSAL

The Federal student aid programs provide grant, loan, and work-study assistance to help 

students afford a postsecondary education, find employment in today’s workforce, and realize 

the lifelong benefits of a higher education. As part of the Administration’s priority to ensure all 

students have an accessible and affordable path to a certificate or degree, the Budget sets a 

maximum Pell award at $8,215 for the 2024-25 award year as significant step in the President’s 

commitment to double the Pell Grant. The fiscal year 2024 proposal makes available $126

billion in new Federal student aid in fiscal year 2024, including more than $38 billion in Pell 

Grants and $86 billion in student loans (excluding consolidation loans). The resources proposed 

would help more than 8.7 million students in their efforts to complete postsecondary education.

This overview discusses the Administration’s proposed package of initiatives and reforms that 

will not only better target aid to students but will also improve student success. Current student 

aid programs are described in detail under the Student Financial Assistance account, the 

TEACH Grants account, and the Student Loans Overview. The costs and reforms associated 

with administering the student aid programs are presented in the Student Aid Administration

account.

STUDENT AID REFORM PROPOSALS

Doubling Pell Grants

Pell Grants have been the foundation of low- and moderate-income students’ financial aid for 

decades; however, the value has diminished as college costs continue to rise. The 

Administration’s fiscal year 2024 budget would set a maximum award of $8,215 for award year

2024-25, an increase of $820 over the 2023-2024 award year. This includes a $500 increase in 

the maximum award in discretionary funding and a $320 increase to the mandatory add-on. The 

Administration continues to prioritize doubling the maximum award by 2029 to ensure college is 

accessible and affordable and provides additional mandatory funding to create a path to 

achieving this, in combination with continued discretionary increases. The Administration also 

intends to work with Congress to ensure access to student financial aid for students who are 

Deferred Action for Childhood Arrivals recipients, commonly known as DREAMers.

Student Loan Policies

The Administration looks forward to working with Congress on reforms that make the 

administration of student loans more effective and efficient. As part of the 2024 request, the 

Administration intends to work with Congress to ensure access to student financial aid for 

students who are Deferred Action for Childhood Arrivals recipients, along with enacting other 

important Administration policy priorities.
STUDENT AID OVERVIEW

3

STUDENT AID PROGRAMS OUTPUT MEASURES

Aid Available to Students

(dollars in millions)

Output Measures 2022Footnote 2023Footnote 2024Footnote

Pell Grants $26,619 $29,806 $38,053

Supplemental Educational Opportunity 

Grants 1,376 1,294 1,294

Federal Work Study 787 1,248 1,248

Iraq and Afghanistan Service Grants 0.569 0.611 0

Subtotal, New Grant Aid 28,782 32,348 40,595

New Student Loans:

Stafford Loans New 15,656 15,696 15,777

Unsubsidized Stafford Loans New 44,243 44,949 45,365

Parent PLUS Loans New 10,777 10,904 11,156

Grad PLUS Loans New 12,832 13,062 13,465

TEACH Grants1 New 70 70 75

Subtotal, New Student Loans2 83,576 84,680 85,837

Total 112,358 117,028 126,432

NOTES:

Detail may not add to total aid available due to rounding.

Shows total aid generated by Department programs, including institutional matching funds generated by the SEOG 

and Work-Study programs. Aid available may differ from appropriated amounts for a given fiscal year.

1For budget and financial management purposes, this program is operated as a loan program under the Federal 

Credit Reform Act of 1990.

2Excludes loans issued to consolidate existing loans (Consolidation Loans), which total $35.8 billion in 2022, $42.9

billion in 2023, and $36.5 billion in 2024.
STUDENT AID OVERVIEW

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Number of Student Aid Awards

(in thousands)

Output Measures1 2022Footnote 2023Footnote 2024Footnote

Pell Grants 5,899 6,073 6,770

Supplemental Educational 

Opportunity Grants 1,773 1,667 1,667

Federal Work-Study 416 660 660

Iraq and Afghanistan Service Grants2 N/A N/A N/A

Subtotal, New Grant Aid 8,088 8,400 9,097

New Student Loans:

Stafford Loans New 4,455 4,484 4,515

Unsubsidized Stafford Loans 6,350 6,412 6,446

Parent PLUS Loans New 656 646 651

Grad PLUS Loans New 614 622 615

TEACH Grants New 27 28 28

Subtotal, New Student Loans3 12,103 12,191 12,257

Total 20,191 20,591 21,354

Number of Postsecondary Students Aided by Federal Student Aid Programs

Count 2022 2023 2024

Unduplicated Count (in thousands) 8,248 8,665 8,749

1 Detail may not add to total due to rounding.

2 N/A denotes number of recipients will not exceed 500.

3 Excludes loans issued to consolidate existing loans.
STUDENT AID OVERVIEW

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PROGRAM PERFORMANCE INFORMATION

Performance measures

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

program goals, objectives, measures, and performance targets and data. Achievement of 

program results is based on the cumulative effect of the resources provided in previous years, 

and those requested in fiscal year 2023 and future years, as well as the resources and efforts 

invested by those served by this program.

Because Federal student assistance grant and loan programs rely on the same program data, 

performance indicators and strategies that apply to these programs are grouped here in the 

Student Aid Overview and are not repeated in justifications for the Student Financial 

Assistance program account or in the Student Loans Overview.

Goal: To help ensure access to high-quality postsecondary education by providing 

financial aid in the form of grants, loans, and work-study in an efficient, financially 

sound, and customer-responsive manner.

Objective: Ensure that low- and moderate-income students will have the same access to 

postsecondary education that high-income students do.

Measure: College enrollment rates: Postsecondary education enrollment rates will increase 

each year for all students, while the enrollment gap between low- and high-income students and 

students of color and White students graduating high school will decrease each year.

Year

Target: Total Percentage 

Enrolled

Actual: Total Percentage 

Enrolled

2019 68% 66.2%

2020 68 62.7

2021 68

2022 68

2023 68

2024 68
STUDENT AID OVERVIEW

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Year

Target: Percentage point 

difference between White and 

Black high school graduates 

ages 16-24 enrolling 

immediately in college

Actual: Percentage point 

difference between White and 

Black high school graduates 

ages 16-24 enrolling 

immediately in college

2019 5.25% 18.20%

2020 5.00 7.50

2021 5.00

2022 5.00

2023 5.00

2024 5.00

Year

Target: Percentage point 

difference between White and 

Hispanic high school 

graduates ages 16-24 enrolling 

immediately in college

Actual: Percentage point 

difference between White and 

Hispanic high school 

graduates ages 16-24 enrolling 

immediately in college

2019 8.00% 4.60%

2020 7.00 8.80

2021 7.00

2022 7.00

2023 7.00

2024 7.00

Additional information: The overall enrollment rate in postsecondary education following high 

school fell below the target of 68 percent in 2020. The Department believes its commitment to 

the Student Financial Assistance programs and proposed reforms in the Administration’s fiscal 

year 2023 Budget will continue to encourage and allow more low-income students to enroll in 

postsecondary education programs — and provide them the means to remain in school — than 

would be the case in the absence of the Federal student financial assistance programs.

After an increase in 2019, the gap between White and Black high school graduates enrolling in 

college immediately after high school decreased to 7.50 percentage points in 2020, still above 

the target of 5.25 percentage points. 

The metric that measures the gap between White and non-White Hispanic high school 

graduates who enroll immediately in college increased to 8.80 percentage points in 2020, which 

was slightly above its target. The Department remains committed to furthering equal educational 

opportunity and will continue to pursue policies to support this important goal. 

Data for the measures above are taken from the Digest of Education Statistics1 (Digest), 

published annually by the National Center for Education Statistics (NCES). Refer to the 

technical information provided in the Digest by NCES when interpreting year-to-year changes in 

the data. 

1 https://nces.ed.gov/programs/digest/
STUDENT AID OVERVIEW

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Objective: Ensure that more students will persist in postsecondary education and attain 

degrees and certificates.

Measure: Graduation rate: Graduation rates for all full-time, degree-seeking students in 4-year 

and less than 4-year programs will improve, while the gap in graduation rates between students 

of color and White students will decrease, as will the gap between students receiving Pell and 

those not receiving need-based Title IV aid.

Year

Target: Students graduating 

with a 4-year degree within 

150 percent of the normal time 

required

Actual: Students graduating 

with a 4-year degree within 

150 percent of the normal time 

required

2019 66% 63.4%

2020 66 64.0

2021 66 64.5

2022 66

2023 66

2024 66

Year

Target: Students graduating 

with a less-than-4-year degree

within 150 percent of the 

normal time required

Actual: Students graduating 

with a less-than-4-year degree

within 150 percent of the 

normal time required

2019 46% 34.9%

2020 46 35.9

2021 46 36.4

2022 46

2023 46

2024 46

Year

Target: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a 

4-year degree within 150 

percent of the normal time 

required

Actual: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a 

4-year degree within 150 

percent of the normal time 

required

2019 15.6% 22.3%

2020 15.6 22.4

2021 15.6 22.2

2022 15.6

2023 15.6

2024 15.6
STUDENT AID OVERVIEW

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Year

Target: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a 

4-year degree within 150 

percent of the normal time 

required

Actual: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a 

4-year degree within 150 

percent of the normal time 

required

2019 8.5% 8.8%

2020 8.5 8.7

2021 8.5 8.8

2022 8.5

2023 8.5

2024 8.5

Year

Target: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a 

less-than-4-year degree within 

150 percent of the normal time 

required

Actual: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a 

less-than-4-year degree within 

150 percent of the normal time 

required

2019 5.1% 7.1%

2020 5.1 10.8

2021 5.1 10.5

2022 5.1

2023 5.1

2024 5.1

Year

Target: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a 

less-than-4-year degree within 

150 percent of the normal time 

required

Actual: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a 

less-than-4-year degree within 

150 percent of the normal time 

required

2019 0.7% 4.5%

2020 0.7 4.5

2021 0.7 5.7

2022 0.7

2023 0.7

2024 0.7
STUDENT AID OVERVIEW

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Year

Target: Percentage point 

difference between first-time, 

full-time students graduating 

with a 4-year degree within 150 

percent of the normal time 

required who received a Pell 

Grant and those who did not

Actual: Percentage point 

difference between first-time, 

full-time students graduating 

with a 4-year degree within 150 

percent of the normal time 

required who received a Pell 

Grant and those who did not

2019 18.5%

2020 18.1

2021 17.8

2022 TBD

2023 TBD

2024 TBD

Year

Target: Percentage point 

difference between first-time, 

full-time students graduating 

with a less-than-4-year degree 

within 150 percent of the 

normal time required who 

received a Pell Grant and those 

who did not

Actual: Percentage point 

difference between first-time, 

full-time students graduating 

with a less-than-4-year degree 

within 150 percent of the 

normal time required who 

received a Pell Grant and those 

who did not

2019 2.0%

2020 3.6

2021 2.1

2022 TBD

2023 TBD

2024 TBD

Additional Information: The percentage of first-time, full-time degree-seeking students 

graduating with a 4-year degree within 150 percent of the normal time increased from 64.0

percent in 2020 to 64.5 percent in 2021. The percentage of students completing a less-than-4-

year degree increased from 35.9 percent in 2020 to 36.4 percent in 2021. The graduation rates 

for both 2- and 4-year degree levels observed in 2020 were below the targets established for 

this measure, 46 percent and 66 percent, respectively.

The completion gap between White and Black students who were enrolled in 4-year degree 

programs decreased very slightly from 2020 to 2021 (22.4 percentage points to 22.2 percentage 

points). The gap observed in 2021 remains larger than the targets established in 2021 and 

future years. The completion gap between Pell recipients and non-Pell recipients decreased 

slightly from 2020 to 2021 (from 18.1 percentage points to 17.8). The overall 150 percent 

completion rate for students receiving Pell grants who were enrolled in 4-year degree programs 

was 53.0 percent in 2021.

From 2020 to 2021, the difference between the percentages of White and Black students 

graduating from less-than-4-year degree programs within 150 percent of the normal time

decreased slightly (from 10.8 to 10.5 percentage points) — still outside of the goal of 5.1 

percentage points. In 2021, Hispanic students graduated within 150 percent of the normal time 

at less-than-4-year programs at a lower rate than White non-Hispanic students with a gap of 5.7
STUDENT AID OVERVIEW

10

percentage points. From 2020 to 2021, the difference between the percentages of Pell 

recipients and non-Pell recipients graduating from less-than-4-year degree programs within 150 

percent of the normal time decreased from 3.6% to 2.1%. The overall 150 percent completion 

rate for students receiving Pell grants who were enrolled in less-than-4-year degree programs 

was 35.5 percent in 2021.

Data for the measures supporting this objective are collected through the Graduation Rate 

Survey conducted as part of the annual Integrated Postsecondary Student Aid Study (IPEDS).

Some figures were revised to match IPEDS tables including completion data for Pell recipients, 

which has recently been made available. The Pell graduation rate is a new measure, and the 

Department plans to establish targets in the near future. The Department will continue to 

evaluate current performance measures and, where appropriate, revise these measures and 

goals.

Program Improvement Efforts

The Department is exploring ways to gather detailed program and student outcome data for

program-specific measures that will provide reliable indicators of program effectiveness.

Efficiency Measures

The Department is reassessing the efficiency measures for the individual student financial aid 

programs. The results of this reassessment will reflect proposed program changes and be 

incorporated into future budget requests.