O-0

Department of Education

STUDENT AID OVERVIEW

Fiscal Year 2022 Budget Request

CONTENTS

Page

Federal Student Aid Programs..................................................................................................O-1

FY 2022 Budget Proposal.........................................................................................................O-2

Student Aid Reform Proposals..................................................................................................O-2

Student Aid Programs Output Measures ..................................................................................O-4

Program Performance Information............................................................................................O-6
STUDENT AID OVERVIEW

O-1

FEDERAL STUDENT AID PROGRAMS

(Higher Education Act of 1965, Title IV)

(dollars in thousands)

FY 2022 Authorization: Indefinite

Budget Authority:

Period of fund availability: 

2021

Appropriation Footnote

20221

Request Footnote

Change from

2021 to 2022

Footnote

Grants and Work Study:

Pell Grants

Pell Grant Discretionary funding $22,475,352 $25,475,352 $3,000,000

Pell Grant Mandatory funding 6,554,0002 15,197,0002 +8,643,000

Subtotal, Pell Grants 29,029,352 40,672,352 +11,643,000

Federal Supplemental Educational 

Opportunity Grants 880,000 880,000 0

Federal Work Study 1,190,000 1,190,000 0

Iraq and Afghanistan Service Grants 551 783 +232

TEACH Grants3 144,4674 82,0904 -62,378

Total, Grants and Work-Study 31,244,370 42,825,225 +11,580,855

Net Loan Subsidy, Loans:5

Federal Family Education Loans (FFEL) 5,996,3606 0 -5,996,360

Federal Direct Student Loans7 92,457,9628 8,628,771 -83,829,191

Free and Subsidized Tuition:

Free Community College 0 14,312,447 14,312,447

Advancing Affordability for Students 0 4,640,778 4,640,778

NOTE: Table reflects discretionary and mandatory funding.

1 Numbers in the FY 2022 column reflect Pell Grant and TEACH proposals included in the American Families Plan 

and FY 2022 Discretionary Budget. 

2 Amounts appropriated for Pell Grants for 2021 and 2022 include mandatory funding provided in the Higher 

Education Act, as amended, to fund both the base maximum award and add-on award. 3 TEACH Grants is operated as a credit program. Amounts reflect the new loan subsidy, or the net present value of 

estimated future costs.

4 The FY 2021 amount includes a net upward reestimate of $75.1 million and a net upward modification of $42.1 

million, reflecting costs related to the extension of COVID-19 emergency relief measures on Federal student loans 

through Sept. 30, 2021, and the cost of updated program regulations to improve the certification process and reduce 

grant to loan conversions. The amount for FY 2022 reflects new loan subsidy. 5 Total 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.

6 Budget authority for FFEL does not include the FFEL Liquidating account. Amount for 2021 reflects a net upward 

reestimate of $3.2 billion and an upward modification of $2.8 billion. This amount also includes reestimates related to 

the Ensuring Continued Access to Student Loans Act (ECASLA). 7 Totals include discretionary TEPSLF amounts of $50 million in FY 2021 and $25 million in FY 2022. 
STUDENT AID OVERVIEW

O-2

8Amount for 2021 includes a net upward reestimate of $52.8 billion, primarily due to updated IDR income 

assumptions. In addition, other factors impacting the reestimate include updates to the repayment plan assumption 

model. The DL net modification pf $36.3 billion in FY 2021 reflects costs related to the extension of COVID-19 

emergency relief measures on federal student loans through Sept. 30, 2021 and permit borrowers who work for 

employers that engage in religious instruction, worship services, or proselytizing to qualify for Public Service Loan 

Forgiveness so long as they meet the applicable standards.

FY 2022 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 degree, the budget request sets a 

maximum Pell award at $8,370 for the 2022-23 award year as a down payment on the 

President’s commitment to double the grant. The request supports expanding student aid 

eligibility to students who are Deferred Action for Childhood Arrivals recipients, commonly 

known as DREAMers. The fiscal year 2022 request makes available $135 billion in new Federal 

student aid in fiscal year 2022, including nearly $41 billion in Pell Grants and $92 billion in

student loans (excluding consolidation loans). Over 10 million students will use these resources 

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 2022 budget would set a maximum award of $8,370 for award year

2022-23, an increase of $1,875 over the previous year. This includes a $400 increase in the 

maximum award in discretionary funding and a $1,475 increase in mandatory spending 

proposed in the American Families Plan proposal. This historic increase is a down payment on 

the President’s commitment to doubling the grant in future years. 

Expand Eligibility for Title IV Aid to DACA Recipients

To qualify for Title IV federal financial aid students must either be a citizen or a permanent 

resident of the United States, among other requirements. The Budget proposes to expand 

eligibility for Pell Grants and Campus-Based Aid to DACA recipients. The Administration would 

also like to work with Congress to ensure these students are eligible for Federal student loans.
STUDENT AID OVERVIEW

O-3

TEACH Grants

As part of the American Families Plan, the Budget proposes to double the grant amount from 

$4,000 to $8,000 per year for juniors, seniors, and graduate students who have committed to a 

teaching major. The Budget would also expand the TEACH Grant program to cover the cost of 

comprehensive preparation programs for early childhood and remove the GPA requirement to 

provide more equitable access to the program. The Administration also seeks reforms that 

would reduce the likelihood and harm of grant-to-loan conversions. 

Free Community College

Through the American Families Plan, the Budget includes two new higher education programs 

that reduce tuition and fees for eligible students. While these programs operate differently from 

the individual-level benefits provided by Title IV Federal financial aid, these are important 

investments in the Administration’s efforts to make college affordable and accessible to all 

students. The Budget proposes a partnership between the Federal government and States, 

tribes, and territories to ensure that first-time students and workers wanting to reskill can enroll 

in a community college to earn a degree or credential for free. If all States, territories, and Tribes 

participate, about 5.5 million students would pay $0 in tuition and fees.

Advancing Affordability for Students

The other American Families Plan proposal to reduce tuition and fees would provide grants to 

eligible four-year Historically Black College and Universities, Tribal Colleges and Universities, 

and minority-serving institutions such as Hispanic-serving institutions and Asian American and 

Native American Pacific Islander-serving institutions to tackle longstanding inequities in 

postsecondary education and make the U.S. more competitive on the global stage. The Budget 

proposes funding for these grants that will provide two years of subsidized tuition for eligible 

students from families earning less than $125,000.

Student Loan Policies

The Administration looks forward to working with Congress on changes to the Higher Education 

Act that eases the burden of student debt, including through improvements to the Income Driven 

Repayment (IDR) and Public Service Loan Forgiveness (PSLF) programs. 
STUDENT AID OVERVIEW

O-4

STUDENT AID PROGRAMS OUTPUT MEASURES

Aid Available to Students

(dollars in millions)

Output Measures 2020Footnote 2021Footnote 20221Footnote

Pell Grants $27,133 $28,063 $40,910

Supplemental Educational Opportunity 

Grants 1,169 1,190 1,190

Federal Work Study 1,214 1,224 1,224

Iraq and Afghanistan Service Grants 0.534 0.608 0.783

Subtotal, New Grant Aid 29,517 30,477 43,325

New Student Loans:

Stafford Loans New 17,841 17,986 17,903

Unsubsidized Stafford Loans New 48,434 49,625 50,102

Parent PLUS Loans New 10,529 10,651 10,783

Grad PLUS Loans New 11,643 12,221 12,472

TEACH Grants2 New 78 79 172

Subtotal, New Student Loans 88,5253 90,5633 91,4333

Total 118,042 121,040 134,758

NOTES:

Detail may not add to total aid available due to rounding. Does not include Free Community College or Advancing 

Affordability for Students, as the Department would not operate these programs as a student-level benefit.

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.

1 Numbers in the FY 2022 column reflect Pell Grant and TEACH Grant proposals included in the American Families 

Plan and FY 2022 Discretionary Budget. 2 For budget and financial management purposes, this program is operated as a loan program under the Federal 

Credit Reform Act of 1990.

3 Excludes loans issued to consolidate existing loans (Consolidation Loans), which total $30.4 billion in 2020, $36.7

billion in 2021, and $39.5 billion in 2022.

.
STUDENT AID OVERVIEW

O-5

Number of Student Aid Awards

(in thousands)

Output Measures 2020Footnote 2021Footnote 20221Footnote

Pell Grants 6,303 6,456 7,312

Supplemental Educational 

Opportunity Grants 1,663 1,692 1,692

Federal Work-Study 645 651 651

Iraq and Afghanistan Service Grants N/A2 N/A2 N/A2

Subtotal, New Grant Aid 8,611 8,799 9,655

New Student Loans:

Stafford Loans New 5,105 5,137 5,098

Unsubsidized Stafford Loans 7,209 7,317 7,310

Parent PLUS Loans New 725 716 713

Grad PLUS Loans New 614 627 641

TEACH Grants New 25 25 39

Subtotal, New Student Loans 13,6793 13,8233 13,8013

Total 22,291 22,622 23,456

NOTE:

Detail may not add to total due to rounding. Does not include Free Community College or Advancing Affordability 

for Students, as the Department would not operate these programs as a student-level benefit.

1 Numbers in the FY 2022 column reflect Pell Grant and TEACH proposals included in the American Families Plan 

and FY 2022 Discretionary Budget. 

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

3 Excludes loans issued to consolidate existing loans.

Number of Postsecondary Students Aided by Federal Student Aid Programs

Count 2020 2021 2022

Unduplicated Count (in thousands) 9,534 9,681 10,090
STUDENT AID OVERVIEW

O-6 

PROGRAM PERFORMANCE INFORMATION

Performance measures

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

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 2022 and future years, as well as the resources and efforts invested by 

those served by this program. The Department will be reviewing GPRA program performance 

goals, objectives, and measures for Federal student assistance for possible revision in future 

years to ensure alignment with Administration policy. 

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

2017 68% 66.7%

2018 68 69.1

2019 68 66.2

2020 68

2021 68

2022 68
STUDENT AID OVERVIEW

O-7

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

2017 5.25% 9.70%

2018 5.25 6.40

2019 5.25 18.20

2020 5.00

2021 5.00

2022 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

2017 8.00% 8.10%

2018 8.00 5.40

2019 8.00 4.60

2020 7.00

2021 7.00

2022 7.00

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

school fell below the target of 68 percent in 2019. The Department believes its commitment to 

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

year 2022 budget request 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 two years of decreasing gaps, meaning the metric was closer to reaching the target, the 

gap between White and Black high school graduates enrolling in college immediately after high 

school rose to 18.20 percentage points in 2019, well 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 spiked to 8.10 percentage points in 2017, which 

was slightly above its target; however, the gap has decreased to 4.60 percentage points in 

2019. 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

O-8

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

2017 66% 60.8%

2018 66 62.8

2019 66 63.8

2020 66

2021 66

2022 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

2017 46% 33.9%

2018 46 34.8

2019 46 35.7

2020 46

2021 46

2022 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

2017 15.6% 24.6%

2018 15.6 23.5

2019 15.6 22.3

2020 15.6

2021 15.6

2022 15.6
STUDENT AID OVERVIEW

O-9

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

2017 8.5% 9.4%

2018 8.5 9.2

2019 8.5 8.8

2020 8.5

2021 8.5

2022 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

2017 5.1% 8.3%

2018 5.1 7.4

2019 5.1 7.1

2020 5.1

2021 5.1

2022 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

2017 0.7% 2.9%

2018 0.7 4.7

2019 0.7 4.5

2020 0.7

2021 0.7

2022 0.7
STUDENT AID OVERVIEW

O-10

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

2017 19.8%

2018 18.5

2019 18.5

2020 TBD

2021 TBD

2022 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

2017 0.6%

2018 0.8

2019 2.0

2020 TBD

2021 TBD

2022 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 62.8

percent in 2018 to 63.8 percent in 2019. The percentage of students completing a less-than-4-

year degree increased from 34.8 percent in 2018 to 35.7 percent in 2019. The graduation rates 

for both 2- and 4-year degree levels observed in 2019 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 slightly from 2018 to 2019 (23.5 percentage points to 22.3 percentage 

points). The gap observed in 2019 remains larger than the targets established in 2019 and 

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

steady from 2018 to 2019 (at 18.5 percentage points). The overall 150 percent completion rate 

for students receiving Pell grants who were enrolled in 4-year degree programs was 51.6 

percent in 2019.

From 2018 to 2019, 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 by 0.3 percentage points to 7.1 percentage points — outside of the goal of 5.1 

percentage points. In 2018, 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 4.7
STUDENT AID OVERVIEW

O-11

percentage points, and the gap slightly decreased in 2019, with White non-Hispanic students 

graduating at a higher rate by 4.5 percentage points compared to Hispanic students. From 2018 

to 2019, 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 

increased but remains at a small difference of 2.0%. The overall 150 percent completion rate for 

students receiving Pell grants who were enrolled in less-than-4-year degree programs was 34.9 

percent in 2019. 

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.