Department of Education

TEACH GRANTS

Fiscal Year 2016 Budget Proposal

CONTENTS

Page

Summary of Proposal ............................................................................................................ Q-1
TEACH GRANTS

Summary of Proposal

TEACH Grants

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

(dollars in thousands)

FY 2016 Authorization: Indefinite

Mandatory Budget Authority:

2015 2016 Change

TEACH new loan subsidies1 $14,232 $11,725 -$2,507

TEACH net re-estimate -31,178 0 +31,178

TEACH Total net subsidy -16,946 11,725 +28,671

1 For budget and financial management purposes, this program is operated as a credit 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. Negative numbers indicate estimated future Federal 

revenues exceed estimated future Federal costs.

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, special education, or reading at a high-need school for not less 

than 4 years within 8 years of graduation. For students who fail to fulfill this service requirement, 

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

the grants were awarded.

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. All applicants must sign an agreement acknowledging that 

grants will be converted to loans if the required service is not completed.

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.

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TEACH GRANTS

In November 2014, the Department announced proposed regulations under Title II of the Higher 

Education Act to support greater transparency, accountability, and program improvement in 

teacher preparation. Building on work being done by leading-edge States, the draft regulations 

require States to report on more meaningful outcome measures (including student learning 

outcomes, employment outcomes, and teacher and employer feedback), increase transparency 

when reporting on the performance of all teacher preparation programs in the State (including 

alternative certification programs), and hold programs accountable for how well they prepare 

teachers for success in today’s classrooms. This information will help prospective teachers 

make informed choices about the programs they select and employers of prospective teachers 

to make more informed hiring decisions; help the field recognize excellence and identify best 

practices; and create a feedback loop to help programs identify and address areas of 

improvement. As part of these regulations, eligibility for TEACH Grants would be limited only to 

those programs that States determine to be effective or better, in order to ensure that these

limited Federal dollars support only high-quality teacher education and preparation.

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

(dollars in thousands)

2011 .......................................... $15,576

2012 .......................................... 34,477

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

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

2015 .......................................... -16,946

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 2016 BUDGET PROPOSAL

The estimated loan subsidy amount for fiscal year 2016 is $11.7 million. Aid available in fiscal 

year 2016 is anticipated to reach more than $94.3 million.

At the start of academic year 2011-2012, the TEACH program was making awards at 

approximately 800 institutions. Based on data from national surveys and existing teacher loan 

forgiveness programs, the Administration estimates that as many as 74 percent of students 

receiving TEACH grants will fail to complete their required service commitment and will have 

their grants converted to loans.

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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TEACH GRANTS

PROGRAM OUTPUT MEASURES

Measures: 2014 2015 2016

Recipients 32,526 30,550 33,390

Aid available to students (dollars in 

thousands) $91,554 $80,423 $94,318

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

Average award (in whole dollars) $2,815 $2,633 $2,825

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 

2016 and future years, as well as the resources and efforts invested by those served by this 

program.

The programs in the TEACH account rely on the same performance data as the Federal student 

aid programs, therefore, the performance measures, strategies, and program improvement 

activities that apply to all of the programs are discussed in the Student Aid Overview and are 

not repeated here.

Distribution of TEACH Grant Awards by Type of Institution:

The table below shows the award year 2012-2013 distribution of TEACH Grant assistance by 

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

award by institution type. Data for 2013-2014 will be available in 2015.

Distribution of TEACH Grants by Type of Institution in Academic Year

2012-2013

Institution Type Percent of TEACH 

Grant Aid Awards Recipients Average Award

Public 4-Year 48.4% $53,116,936 17,352 $3,061

Public 2-Year 0.2% 198,152 73 2,714

Private 4-Year 43.3% 47,509,582 15,398 3,085

Proprietary 4-Year 8.2% 8,978,627 2,960 3,033

TOTAL 100.0% 109,803,297 35,783 3,069

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

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