Department of Education

TEACH Grants

Fiscal Year 2023 Budget

CONTENTS

Page

TEACH Grants ..............................................................................................................................1

Program Description.................................................................................................................1

FY 2023 Budget Request .........................................................................................................2

Program Output Measures .......................................................................................................3

Program Performance Information ...........................................................................................3
TEACH GRANTS

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TEACH Grants

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

(dollars in thousands)

FY 2023 Authorization: To be determined

Mandatory Budget Authority:1

2022 Estimate 2023 Change

TEACH new loan subsidies $34,980 $39,114 $4,134 

TEACH net re-estimate 65,754 0 -65,754

TEACH net modification2 1,879 0 -1,879

TEACH Total net subsidy 102,613 39,114 -63,499

PROGRAM DESCRIPTION

The TEACH Grant program is intended to create incentives for postsecondary education 

students to teach in in-demand fields and high-need schools. The 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, reading, or other in-demand fields and areas at a highneed school, for not less than 4 years within 8 years of graduation. To be eligible for a TEACH 

Grant award, students must meet certain academic achievement requirements, scoring above 

the 75th percentile on one or more portions of a college admissions test or maintaining a 

cumulative grade point average of at least 3.25. 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 

1 For 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 nonadministrative costs for awards made in a given fiscal year.

2 The upward net modification for fiscal year 2021 reflects costs related to the extension of COVID-19 emergency 

relief measures on federal student loans through Jan. 31, 2022 and the cost of updated program regulations to 

improve the certification process and reduce grant to loan conversions. The upward net modification for fiscal year 

2022 reflects costs related to the extension of COVID-19 emergency relief measures on federal student loans through 

May 1, 2022 and the shift of default collection activities to Business Process Operations.
TEACH GRANTS

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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. For all grant 

recipients, loan conversion will occur only if the recipient asks the Secretary to convert their

TEACH Grants to loans, or if the recipient fails to begin or maintain qualifying teaching service 

within a timeframe that would allow the recipient to satisfy the service obligation within the eightyear service obligation period.

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

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

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 were1:

Fiscal Year (dollars in thousands) 

2018 $74,946 

2019 33,039

2020 19,399

2021 149,211

2022 Estimate 102,613

FY 2023 BUDGET

The estimated loan subsidy amount for fiscal year 2023 is $39.1 million. Aid available in fiscal 

year 2023 is anticipated to reach approximately $81.1 million. By the end of academic year 

2020–2021, the TEACH Grant program was making awards at approximately 733 institutions. 

The fiscal year 2022 net upward reestimate of $65.8 million is due to technical assumption

updates, including death, disability, and bankruptcy and collection rates. 

In light of the impact of the pandemic on student learning in K-12 schools, institutions that 

participate in TEACH Grant program will be encouraged to develop coursework and experiential 

learning opportunities that prepares teachers that prepares teachers to respond to the crisis with 

the knowledge, skills, and dispositions to meet students’ social, emotional, and academic needs 

with a focus on students most impacted by the pandemic.

In 2020, the Department published updated program regulations to codify many of the 

operational changes that allowed for a reconsideration process if a TEACH grant was 

erroneously converted to a loan. The regulations expand the fields in which grant recipients can 

work to fulfill their service obligation, simplify the employment certification requirements, require 

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

modifications, which may produce significant annual fluctuations.
TEACH GRANTS

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more information to be provided to recipients as part of entrance and exit counseling, create 

conversion counseling to education borrowers when their grants convert to loans, and provide 

processes to correct improper conversions of TEACH grants to loans. The Consider Teachers 

Act of 2021 (P.L. 117-49), signed October 13, 2021, incorporated many of the changes made in 

the final regulations and allowed grant recipients to fulfill their service obligation by working in a 

high need geographic area. 

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.

PROGRAM OUTPUT MEASURES

Output Measures 2021 2022 2023

Recipients 34,015 34,423 34,836

Aid available to students (dollars in 

thousands) $74,962 $75,862 $81,148

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

PROGRAM PERFORMANCE INFORMATION

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 2023 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.
TEACH GRANTS

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Year

Target: Total Percentage with 

Teaching Service

Actual: Total Percentage with 

Teaching Service

2014 33.0% 38.3%

2015 35.0 39.9

2016 37.0 41.4

2017 39.0

2018 41.0

2019 43.0

Additional Information: The percentage of TEACH Grant recipients with 1 or more years 

qualified teaching service after 6 or more years following their last TEACH award has increased

from under 30 percent before 2011 and surpassed 40 percent in 2016. The rates observed for 

2014 to 2016 are above targets established for this measure. The Department believes 

improvements in the certification process have made it easier for teachers to show participation 

and prevent unwarranted grant to loan conversions. Based on administrative program data, the 

Department projects that 51 percent of students receiving TEACH Grants in fiscal year 2023 will 

fail to complete their required service commitment and will have their grants converted to loans.

Distribution of TEACH Grant Awards by Type of Institution

The table below shows the award year 2020–2021 distribution of TEACH Grant assistance by 

type of institution for total funding, percentage, number of recipients, and average award.

Distribution of TEACH Grants by Type of Institution 2020–2021

Institution Type Awards Recipients Average 

Award

Percent of TEACH 

Grant Aid

Public 4-Year $33,542,670 11,462 $2,926 44.44%

Public 2-Year 2,829 1 2,829 0.01%

Private 4-Year 29,274,222 9,694 3,020 38.78%

Proprietary 4-Year 12,666,778 3,653 3,468 16.78%

TOTAL 75,486,499 24,810 3,043 100.00%

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