Department of Education 

STUDENT AID OVERVIEW 

Fiscal Year 2025 Budget Proposal

CONTENTS 

Page

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

FY 2025 Budget Proposal............................................................................................................. 2

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

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

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

1 

FEDERAL STUDENT AID PROGRAMS

(Higher Education Act of 1965, Title IV)

(dollars in thousands)

FY 2025 Authorization: Indefinite

Budget Authority0F

1: Period of fund availability: 

2024 Annualized CRFootnote2025 Request Footnote ChangeFootnote

Grants and Work Study:

Pell Grants

Pell Grant Discretionary funding $22,475,352 $24,576,352 $2,101,000

Pell Grant Mandatory funding1F

2 6,724,000 9,898,000 +3,174,000

Subtotal, Pell Grants 29,199,352 34,474,352 +5,275,000

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

530 30 -500

TEACH Grants2F

3 46,238 39,188 -7,050

Total, Grants and Work-Study 31,386,120 36,653,570 +5,267,450

Net Loan Subsidy, Loans:3F

4

Federal Family Education Loans 

(FFEL)4F

5 9,637,242 0 -9,637,242

Federal Direct Student Loans5F

6 97,146,641 42,266,917 -54,879,723

1 Table reflects discretionary and mandatory funding.

2Amounts appropriated for Pell Grants for 2024 and 2025 include mandatory funding provided in the Higher 

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

3TEACH Grants is operated as a credit program. Amounts reflect the new loan subsidy, or the net present value of 

estimated future costs. The FY 2024 amount includes a net upward reestimate of $7.3 million. 4Total 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.

5Budget authority for FFEL does not include the FFEL Liquidating account. This amount also includes reestimates 

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

6Amount for 2023 includes a net upward reestimate of $64.2 billion.
STUDENT AID OVERVIEW

2 

FY 2025 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 of $8,145 for the 2025-2026 award year as a significant step in the 

President’s commitment to double the Pell Grant. The fiscal year 2025 proposal makes 

available $135 billion in new Federal student aid in fiscal year 2025, including more than

$39 billion in Pell Grants and $93 billion in student loans (excluding consolidation loans). The 

resources proposed would help more than 9 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 2025 budget would set a maximum award of $8,145 for award year

2025-2026, an increase of $750 over the 2024-2025 award year. This includes a $100 increase 

in the maximum award in discretionary funding and a $650 increase to the mandatory add-on. 

Students attending public and non-profit institutions will be eligible to receive the increased 

mandatory add-on. The maximum award for students at proprietary institutions will be $7,495. 

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 

Dreamers. 

Student Loan Policies

The fiscal year 2025 budget proposes to eliminate origination fees. Origination fees were 

originally created to offset the costs of federal student loans in the FFEL program, which ended 

in 2010. Before a federal student loan is disbursed, an origination fee is calculated, increasing 

the overall borrower loan cost. The origination fee is subsequently deducted from the amount 

actually received by borrower. Borrowers are expected to pay that dollar amount back, with 

interest. Eliminating these fees would be a step in the direction of lowering the cost of higher 
STUDENT AID OVERVIEW

3 

education. Additionally, as part of the 2025 request, the Administration intends to work with 

Congress to ensure access to student financial aid for students who are Dreamers. 

STUDENT AID PROGRAMS OUTPUT MEASURES

Aid Available to Students

(dollars in millions)

Output Measures6F

1 2023Footnote 2024Footnote 2025Footnote

Pell Grants $31,264 $35,463 $39,284

Supplemental Educational Opportunity 

Grants 1,294 1,294 1,294

Federal Work Study 1,248 1,248 1,248

Iraq and Afghanistan Service Grants 0.679 0 0

Subtotal, New Grant Aid 33,806 38,004 41,826

New Student Loans:

Stafford Loans New 16,329 16,867 16,995

Unsubsidized Stafford Loans New 45,555 47,229 47,672

Parent PLUS Loans New 12,218 12,836 13,443

Grad PLUS Loans New 14,280 14,648 14,990

TEACH Grants7F

2 New 71 72 73

Subtotal, New Student Loans8F

3 88,453 91,652 93,173

Total 122,259 129,656 134,999

1Table 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. Detail 

may not add to total aid available due to rounding.

2For budget and financial management purposes, this program is operated as a loan program under the Federal 

Credit Reform Act of 1990.

3Excludes loans issued to consolidate existing loans (Consolidation Loans), which total $40.8 billion in 2023, $42.1 

billion in 2024, and $41.5 billion in 2025. 
STUDENT AID OVERVIEW

4 

Number of Student Aid Awards

(in thousands)

Output Measures9F

1 2023Footnote 2024Footnote 2025Footnote

Pell Grants 6,471 7,033 7,153

Supplemental Educational 

Opportunity Grants 1,615 1,615 1,615

Federal Work-Study 630 630 630

Iraq and Afghanistan Service Grants10F

2 N/A 0 0

Subtotal, New Grant Aid 8,716 9,278 9,398

New Student Loans:

Stafford Loans New 4,673 4,834 4,856

Unsubsidized Stafford Loans 6,557 6,813 6,847

Parent PLUS Loans New 713 733 753

Grad PLUS Loans New 647 663 660

TEACH Grants New 23 24 24

Subtotal, New Student Loans11F

3 12,613 13,067 13,140

Total 21,329 22,345 22,538

Number of Postsecondary Students Aided by Federal Student Aid Programs

Count 2023 2024 2025

Unduplicated Count (in thousands) 8,766 9,224 9,307

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

5 

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 Federal resources provided for the 

program as well as the resources and efforts invested by those served by the 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

2020 68% 62.7%

2021 68 61.8

2022 68 62.0

2023 68

2024 68

2025 68

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

2020 5.00% 7.60%

2021 5.00 3.00

2022 5.00 3.10

2023 5.00

2024 5.00

2025 5.00
STUDENT AID OVERVIEW

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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

2020 7.00% 8.80%

2021 7.00 3.70

2022 7.00 6.00

2023 7.00

2024 7.00

2025 7.00

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

school fell below the target of 68 percent in 2021. The Department believes its commitment to 

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

year 2025 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.

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

high school increased very slightly to 3.10 percentage points in 2022, still below the target of 

5.00 percentage points. 

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

graduates who enroll immediately in college increased to 6.00 percentage points in 2022, which

remains below 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 Statistics12F

1 (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. Fiscal year 2023 performance data is expected to be available in August 2024 and will 

be included in the fiscal year 2026 Congressional Justification. 

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

7 

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

2020 66% 64.0%

2021 66 64.6

2022 66 64.6

2023 66

2024 66

2025 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

2020 46% 35.9%

2021 46 36.3

2022 46 35.5

2023 46

2024 46

2025 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

2020 15.6% 22.4%

2021 15.6 22.2

2022 15.6 22.0

2023 15.6

2024 15.6

2025 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

2020 8.5% 8.7%

2021 8.5 8.7

2022 8.5 8.7

2023 8.5

2024 8.5

2025 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

2020 5.1% 10.8%

2021 5.1 10.6

2022 5.1 12.2

2023 5.1

2024 5.1

2025 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

2020 0.7% 4.5%

2021 0.7 5.8

2022 0.7 6.8

2023 0.7

2024 0.7

2025 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

2020 18.1%

2021 17.8

2022 17.6

2023 TBD

2024 TBD

2025 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

2020 3.6%

2021 2.1

2022 4.2

2023 TBD

2024 TBD

2025 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 remained steady at 64.6 

percent. The percentage of students completing a less-than-4-year degree decreased from 36.3

percent in 2021 to 35.5 percent in 2022. The graduation rates for both 2- and 4-year degree 

levels observed in 2022 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 2021 to 2022 (22.2 percentage points to 22.0 percentage 

points). The gap observed in 2022 remains larger than the targets established in 2022 and 

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

slightly from 2021 to 2022 (from 17.8 percentage points to 17.6). The overall 150 percent 

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

was 53.2 percent in 2022. 

From 2021 to 2022, 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

increased slightly (from 10.6 to 12.2 percentage points) — still outside of the goal of 5.1 

percentage points. In 2022, 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 6.8 

percentage points. From 2021 to 2022, the difference between the percentages of Pell 
STUDENT AID OVERVIEW

10

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

percent of the normal time increased from 2.1% to 4.2%. The overall 150 percent completion 

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

was 33.7 percent in 2022. 

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). 

Fiscal year 2023 performance data is expected to be available in December 2024 and will be 

included in the fiscal year 2026 Congressional Justification. 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.