Department of Education

STUDENT AID OVERVIEW

Fiscal Year 2016 Budget Request

CONTENTS

Page

FY 2016 Budget Proposal ................................................................................................. O-1

Student Aid Reform Proposals .......................................................................................... O-3

Student Aid Program Output Measures............................................................................. O-7

Program Performance Information .................................................................................... O-8

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STUDENT AID OVERVIEW

Federal Student Aid Programs

(Higher Education Act of 1965, Title IV)

(dollars in thousands)

FY 2016 Budget Proposal

FY 2016 Authorization: Indefinite

Budget Authority:1

2015 2016 Change

Grants and Work-Study:

Pell Grants

Discretionary funding $22,475,352 $22,475,352 0

Mandatory funding 2 6,079,531 6,460,396 +$380,865

Subtotal, Pell Grants 28,554,883 28,935,748 +380,865

Federal Supplemental Educational

Opportunity Grants 733,130 733,130 0

Federal Work-Study 989,728 989,728 0

Iraq and Afghanistan Service Grants 3 340 0 -340

TEACH Grants 4 -16,946 11,725 +28,671

Total, Grants and Work-Study 1,706,252 1,734,583 +28,331

Net Loan Subsidy, Loans: 5

Federal Family Education Loans (FFEL) 6 -3,293,567 0 +3,293,567

Federal Direct Student Loans 7 25,647,469 -14,011,763 -39,659,232

Federal Perkins Loan Program 8 0 -876,857 -876,857

1 Table reflects discretionary appropriations and mandatory funding. 2 Amounts appropriated for Pell Grants for 2015 and 2016 include mandatory funding provided by the 

Consolidated Appropriations Act, 2012. 3 Amount in 2016 reflects Budget policy to move Iraq and Afghanistan Service Grants to the Pell Grant program. 4 For budget purposes, TEACH Grants is operated as a credit program. Amounts reflect the new loan subsidy, or 

the net present value of estimated future costs. 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 re-estimates 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. Normally budget authority is not shown if it is negative. However, for 

informational purposes, the amounts here reflect estimated negative budget authority. 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 2015 reflects a net 

downward re-estimate of $3,293,566 thousand due primarily to updated deferment assumptions. 7 Amount for 2015 includes a net upward re-estimate of $21,842,075 thousand, primarily due to updated interest 

rate assumptions and increased participation in income-driven repayment plans. Fiscal year 2016 request includes a 

net downward modification of $804,088 thousand to reflect the budgetary impact of the proposed expansion of the 

Pay As You Earn plan. 8 Amount for 2016 reflects the Budget proposal to reform and modernize Perkins Loans as a mandatory credit 

program; the request shows the net present value of estimated future costs of the estimated 2016 loan cohort.

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STUDENT AID OVERVIEW

FY 2016 BUDGET PROPOSAL

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

students afford a postsecondary education. These funds enable millions of Americans to obtain 

the significant and lifelong benefits of a higher education. The Administration is proud of its 

record in, and commitment to, higher education. To help ensure that students and families can 

afford and attain a postsecondary credential without taking on more debt than they can afford, a 

strategic student aid approach is needed so that both students and the Nation can thrive in the

global economy. Accordingly, the fiscal year 2016 Budget includes proposals to address the

college affordability challenge. The request dedicates $176.1 billion to Federal student aid in 

fiscal year 2016, including $28.9 billion to Pell Grants and nearly $141.7 billion to student loans. 

More than 13.2 million students would benefit from this aid in their efforts to access, and 

succeed in, college. In addition, the Administration is proposing a new initiative, America’s 

College Promise, that will support 2 years of free community college for responsible students, 

and is re-proposing an initiative to provide bonuses to schools that improve the graduation rates 

of Pell recipients, both supported with mandatory funding.

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

will not only increase aid to students, but also improve the effectiveness of grant, work-study,

and student loan programs. Current student aid programs are described in detail under 

Student Financial Assistance, beginning on page P-1, TEACH Grants on page Q-1, and the 

Student Loans Overview on page R-1. The administrative costs associated with the student 

aid programs are presented in the Student Aid Administration section, beginning on page Z-1. 

America’s College Promise and the College Opportunity and Graduation Bonus programs 

are discussed in the Higher Education section, beginning on page S-1.

The United States has long been a global leader in postsecondary education, but recently this

advantage has slipped. While the U.S. ranks 5th in terms of the proportion of 25–64 year olds 

with a postsecondary education, it ranks 12th in attainment among those aged 25–34. There is 

a significant opportunity gap as well. Today, 80 percent of high-school graduates from the 

wealthiest families continue on to higher education, while just over half of students with incomes

in the bottom quartile attend college. Even when high-school graduates can afford to begin 

higher education, they all too often fail to finish. Less than six in 10 four-year college students 

graduate within 6 years.

In accordance with the President’s vision of leading the world in college attainment rates, the 

2016 Budget’s student aid proposals: (1) provide sufficient resources to fully fund the maximum 

Pell Grant award—which is $5,775 in the 2015-2016 award year, and will increase with inflation

in the 2016—2017 award year—and index it to inflation beyond 2017; (2) make community 

college free for responsible students while promoting key reforms to help more students 

complete at least 2 years of college; (3) simplify the application for Federal student aid; 

(4) reform and streamline income-driven repayment; (5) reform the campus-based student aid

programs to target students at schools that provide a quality education at a reasonable price; 

and (6) reward colleges that successfully enroll and graduate a significant number of low- and 

moderate-income students on time.

This Budget would fully fund the Pell program in 2016. In addition, savings from expanding the 

Perkins Loan program would be reinvested in student aid, specifically to continue indexing the

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maximum Pell Grant award to inflation beyond 2017, as part of an overall net increase to 

Federal student aid investments. The Budget projects a 10-year discretionary Pell shortfall of 

$29.7 billion, $13.9 billion less than the ten year forecast from 2015. Although a funding cliff is 

now expected in later years, there is remaining uncertainty about the amount of the shortfall, 

and the year in which it will reemerge. While this Budget provides for significant contributions 

toward addressing future Pell funding needs, the Administration will work with Congress to 

ensure the long-term stability of this vital program.

Student Aid Reform Proposals

The 2016 Budget is designed to take bold steps to make college affordable and to advance 

needed reforms to modernize and improve the Federal student aid programs. The specifics of 

these reform proposals are discussed below.

America’s College Promise Proposal: Tuition-Free Community College for Responsible 

Students

The Budget proposes the America’s College Promise, to ensure all Americans have the 

opportunity to pursue and succeed in higher education, with a goal of making 2 years of 

college as universal as high school. The new grant program will provide funding to States 

that agree to waive tuition and fees in high-quality programs at community colleges for 

responsible students, increase their own investment through matching funds, allocate a 

significant portion of State funding based on performance, and undertake a set of key reforms to

help more students complete at least 2 years of college.

The Budget would provide $60 billion in mandatory funding over 10 years to this program. 

Reflecting America’s higher education model of shared responsibility, everyone will have to do 

their part: 1) States must invest more in public higher education and training; 2) community 

colleges must strengthen their programs and improve student outcomes; and, 3) students must 

take responsibility for their education, attend at least half-time, and earn good grades, to stay on 

track to graduate. For more information on this program, see the Higher Education account, 

beginning on page S-1.

FAFSA Simplification: A Simpler Application Process

The Department of Education has taken administrative steps to greatly improve the Federal 

financial aid process. Today, more than 99 percent of the Free Application for Federal Student 

Aid (FAFSA) applications are submitted online. The online FAFSA uses skip-logic, which allows 

applicants to skip questions that do not pertain to them, to expedite completion. On average, 

students complete the online FAFSA in approximately 20 minutes, down from over an hour in 

2009. Moreover, more than 65 percent of students and more than 50 percent of parents with 

available data use the IRS Data Retrieval Tool, which allows students and parents to access 

and transfer their IRS tax return information into the FAFSA.

Despite these improvements, the FAFSA requires some applicants to complete over

100 questions to determine their eligibility for Federal student aid, and this complexity 

discourages many eligible students from applying for aid: an estimated 2 million students who 

would have qualified for a Pell Grant failed to complete the application. Therefore, the FAFSA 

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could be further shortened and simplified by removing data elements pertaining to assets and 

additional types of income and by relying primarily on information readily available in Federal tax 

returns, making it more understandable and easier for applicants to complete. That is why the 

President’s 2016 Budget proposes additional and significant FAFSA simplification by removing 

questions regarding savings, investments, and net worth. Additionally, untaxed income and 

exclusions from income data that are not reported to the IRS would no longer be collected. To 

prevent resulting decreases of aid awards, the Budget also proposes adjustments to the 

Expected Family Contribution for certain categories of applicants.

Reform the Pay As You Earn Repayment Plan and Simplify Repayment Plan Options

In October 2011, the Administration announced the Pay As You Earn (PAYE) initiative to 

accelerate the benefits of the Income-Based Repayment (IBR) plan as modified in the Health 

Care and Education Reconciliation Act. Last summer, the President took action within his 

existing authority to propose PAYE expansion to all existing borrowers, on which the 

Department will be conducting negotiated rulemaking in 2015. Under existing authority, the 

Administration will be extending a modified PAYE plan beginning in FY 2015 to all qualified 

student borrowers regardless of when they borrowed. However, the Administration continues to 

seek to work with Congress to create a single, simple, and better targeted income-driven

program while ensuring that student loan payments remain manageable. The Budget would 

use the savings from this proposal to continue indexing the maximum Pell Grant award beyond 

2017, when indexing will expire and Pell Grants will begin to lose ground to inflation. The 2016

Budget would reform and streamline income-driven repayment to ensure that program 

benefits are targeted to the neediest borrowers and safeguard the program for the future, 

including by protecting against institutional practices that may further increase student 

indebtedness. The most substantial change will be to simplify income-driven repayment by 

making a modified PAYE the only income-driven repayment plan for borrowers who originate 

their first loan on or after July 1, 2016. This would simplify borrowers’ experience and allow for 

easier selection of a repayment plan, while reducing program complexity and targeting benefits 

to ensure program effectiveness. Students who borrowed their first loans prior to July 1, 2016,

would continue to be able to select among the existing repayment plans (for plans for which 

they now qualify and for loans originated through their current course of study), in addition to the 

modified PAYE, which includes the following reforms:

• Expand PAYE to all eligible borrowers in FY 2015, regardless of when they borrowed;

• Calculate payments for married borrowers filing separately on the combined household 

Adjusted Gross Income;

• Establish a 25-year forgiveness period for borrowers with balances above the aggregate 

loan limit ($57,500) for independent undergraduate students; 

• Eliminate the standard payment cap so that high-income, high-balance borrowers pay an 

equitable share of their earnings as their income rises; and

• Cap the amount of interest that can accrue when a borrower’s monthly payment is 

insufficient to cover the interest to avoid ballooning loan balances.

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STUDENT AID OVERVIEW

The Budget also proposes the following legislative changes:

• Capping Public Sector Loan Forgiveness (PSLF) at the aggregate loan limit for 

independent undergraduate students to protect against institutional practices that may 

further increase student indebtedness, while ensuring the program provides sufficient 

relief for students committed to public service; and

• Preventing payments made under non-income driven repayment plans from being 

applied toward PSLF to ensure that loan forgiveness is targeted to students with the 

greatest need.

Reform Campus-Based Aid to Better Serve Low-Income Students 

Some of the roughly 7,000 institutions of higher education that participate in the Federal Pell 

Grant and/or Federal Student Loan programs also participate in one or more of the Federal 

Campus-based Aid programs: Federal Supplemental Educational Opportunity Grants (SEOG), 

Federal Work-Study, and Federal Perkins Loan programs. While all schools are eligible to 

participate in the campus-based aid programs, antiquated statutory formulas with stringent holdharmless provisions have resulted in institutions receiving allocations that reward schools for 

high tuition prices, do not reflect the population of Pell-eligible students attending the 

institutions, and fail to consider whether institutions are a good value for students. The 

President’s 2016 Budget proposes to reform Federal allocations in the campus-based 

programs to target those institutions that enroll and graduate higher numbers of Pell-eligible 

students, and offer affordable and quality education and training such that graduates can obtain 

employment and repay their educational debt.

Perkins Loan Program Modernization and Expansion

The Budget proposes to modernize and expand the Perkins Loan program into a new 

Unsubsidized Perkins Loan program which would provide $8.5 billion in loans annually, 

allocating lending authority among institutions on the basis of the extent to which institutions

enroll and graduate higher numbers of Pell-eligible students, and offer affordable and quality 

education such that graduates can repay their educational debt. This reform would replace the 

current program whose authorization expired in 2014, and which was extended for 1 year, until 

2015, under the General Education Provisions Act. When fully implemented, the new Perkins 

loan program would provide eight and a half times the current Perkins loan volume and 

expand institutional participation by up to an additional 2,700 postsecondary institutions. 

Savings resulting from this reform will be reinvested in student aid spending, specifically to 

continue indexing the maximum Pell Grant award to inflation beyond 2017.

The Department would administer the new Perkins Loan program in the same manner as 

Federal Direct Student Loans; however, institutions would continue to have discretion with 

regard to allocating funds at their institutions to particular students. By modernizing and 

expanding the program, more students would have increased access to Federal funds that carry 

important protections and benefits, including income-based repayment plans and loan 

forgiveness options.

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SEOG and Work-Study Allocation Formula Reform

Proposed reforms to the allocation formula for SEOG and Work-Study would redirect funding

from institutions receiving funds primarily based on historical funding levels to institutions that 

enroll and graduate higher numbers of Pell-eligible students, and offer affordable and 

quality education and training such that graduates can obtain employment and repay 

their educational debt. Allocations to schools that fail to maintain a commitment to meeting 

these standards would be redistributed to better-performing institutions.

Reward Colleges for Results

Building on the President’s ambitious new agenda to combat rising college costs and make 

college affordable for American families, the College Opportunity and Graduation Bonus 

program would provide grants to reward colleges that successfully enroll and graduate a 

significant number of low- and moderate-income students on time and encourage all 

institutions to improve their performance. For more information on this program, see the Higher 

Education account, beginning on page S-1.

Assist Pell-Eligible Students with Specific Needs to Receive a Grant

The Budget proposes to make several reforms to strengthen and protect the Pell Grant program 

while promoting student responsibility. First, it would strengthen academic progress 

requirements in the Pell Grant program in order to encourage students to complete their 

studies on time. Second, it would allow those students enrolled in eligible career pathways 

programs who are eligible under the recently restored Ability to Benefit provision to get 

the full Pell Grant award, thus enabling adults without a high school diploma to gain the 

knowledge and skills they need to secure a good job. Third, it would prevent additional Pell 

disbursements to recipients who repeatedly enroll and obtain aid but do not earn any 

academic credits. Finally, the Budget would move Iraq Afghanistan Service Grants to the 

Pell Grant program to avoid further award reductions as a result of sequestration and ensure 

our veterans’ children receive the full, non-sequestered Pell award for which they are eligible.

Ensure Student Aid Resources are Used Well

The Budget proposes to include other Federal educational programs, such as Department of 

Defense Tuition Assistance and Department of Veterans Affairs GI Bill Benefits, in the 90/10 

calculation in the administration of Title IV Federal student aid at proprietary (for-profit) 

institutions. Currently, for institutions participating in Federal student aid programs, no more 

than 90 percent of revenue can come from Federal student loans and grants.

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STUDENT AID OVERVIEW

Student Aid Program Output M easures

STUDENT AID PROGRAMS OUTPUT MEASURES

Aid Available to Students 1

($ in millions)

Student aid program 2014 2015 2016

Pell Grants $30,998 $31,327 $32,113

Supplemental Educational Opportunity Grants 977 977 977

Federal Work-Study 1,159 1,176 1,176

Iraq and Afghanistan Service Grants2 0 0 --

New Student Loans:

Stafford Loans 26,200 26,346 26,954

Unsubsidized Stafford Loans 55,562 57,502 60,983

Parent PLUS Loans 10,787 11,361 11,978

Grad PLUS Loans 8,267 8,706 9,245

Perkins Loans 1,010 1,010 613

Unsubsidized Perkins Loans 0 0 4,113

TEACH Grants3 92 80 94

Subtotal, New Student Loans4 101,917 105,006 113,981

Total 135,050 138,486 148,247

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

1 Shows total aid generated by Department programs, including Perkins Loan capital from institutional revolving 

funds, and institutional matching funds generated by the SEOG, and Work-Study programs. 2 Aid available under the Iraq and Afghanistan Service Grants (IASG) program is projected at $331,000, 

$376,000, and $476,000, respectively, for fiscal years 2014, 2015, and 2016. In 2016, aid available is displayed as 

part of the Pell Grant program, reflecting Budget policy to consolidate IASG into the Pell Grant program. 3 For budget and financial management purposes, this program is operated as a loan program under the Federal 

Credit Reform Act of 1990.

4 Does not include loans issued to consolidate existing loans (Consolidation Loans), which total $34,569 million 

in 2014, $26,575 million in 2015, and $27,808 million in 2016.

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STUDENT AID OVERVIEW

Number of Student Aid Awards

(in thousands)

Student aid program 2014 2015 2016

Pell Grants 8,173 8,237 8,376

Supplemental Educational Opportunity Grants 1,629 1,629 1,629

Federal Work-Study 692 703 703

Iraq and Afghanistan Service Grants N/A 1 N/A 1 N/A 1

New Student Loans:

Stafford Loans 8,134 8,141 8,321

Unsubsidized Stafford Loans 10,086 10,213 10,637

Parent PLUS Loans 849 880 913

Grad PLUS Loans 514 537 564

Perkins Loans 502 502 313

Unsubsidized Perkins Loans 0 0 731

TEACH Grants 33 31 33

Subtotal, New Student Loans 2 20,118 20,303 21,512

Total new awards 31,299 31,361 32,724

NOTE: Detail may not add to Total due to rounding. 1 N/A denotes number of recipients will not exceed 1,000. 2 Does not include loans issued to consolidate existing loans.

Number of Postsecondary Students Aided by Department Student Aid Programs

Number of recipients 2014 2015 2016

Unduplicated Count (in thousands) 12,770 13,150 13,235

Program Per for mance Infor mation

PROGRAM PERFORMANCE INFORMATION

Performance Measures

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 program 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.

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 

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STUDENT AID OVERVIEW

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

Assistance or TEACH Grants program accounts, or in the Student Loans Overview.

Goal: To 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 middle-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 and minority 

and non-minority high school graduates will decrease each year.

Targets and Performance Data

The percentage of high school graduates aged 16–24 enrolling immediately in college following high 

school.

Year Target: Total Percentage Enrolled Actual: Total Percentage Enrolled

2011 68.00% 68.20%

2012 68.00 66.20

2013 68.00

2014 68.00

2015 68.00

2016 TBD

Year

Target: Difference in the percentage of 

low- and high-income high school 

graduates ages 16–24 enrolling 

immediately in college

Actual: Difference in the percentage of 

low- and high-income high school 

graduates ages 16–24 enrolling 

immediately in college

2011 25.75% 28.90%

2012 25.50 29.80

2013 25.25

2014 25.00

2015 24.75

2016 TBD

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STUDENT AID OVERVIEW

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

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

and non-minority high school graduates will decrease each year.

Targets and Performance Data

The percentage of high school graduates aged 16–24 enrolling immediately in college following high 

school.

Year

Target: Difference in the percentage of 

Black and White high school 

graduates ages 16–24 enrolling 

immediately in college

Actual: Difference in the percentage of 

Black and White high school 

graduates ages 16–24 enrolling 

immediately in college

2011 6.25% 1.20%

2012 6.00 9.30

2013 5.75

2014 5.50

2015 5.25

2016 TBD

Year

Target: Difference in the percentage of 

Hispanic and White high school 

graduates ages 16–24 enrolling 

immediately in college

Actual: Difference in the percentage of 

Hispanic and White high school 

graduates ages 16–24 enrolling 

immediately in college

2011 9.25% 1.70%

2012 9.00 4.60

2013 8.75

2014 8.50

2015 8.25

2016 TBD

Additional Information: In 2012, the overall enrollment rate in postsecondary education 

following high school fell slightly below the goal target of 68.0 percent, to 66.2 percent. Prior to 

this dip, this metric had exceeded its goal for 4 consecutive years. While the decrease in the 

difference between low- and high-income students who enrolled immediately in college after 

high school grew slightly, by 0.9 percentage points, it is still lower than it was in 2010

(31.5 percent). The Administration believes its commitment to the Student Financial Assistance 

programs will continue to encourage and permit more low-income students to enroll in 

college—and provide them the means to remain in school—than would be the case in the 

absence of these programs.

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STUDENT AID OVERVIEW

Unfortunately, in the difference between Black and White high school graduates enrolling in 

college immediately after high school, there was a reversal of events from the prior year. The 

difference in enrollment rates—at 9.3 percent—appears more like the statistic from 2010 (8.5 

percent), rather than the corresponding figure from 2011. However, in the equivalent Hispanics 

of any race and White non-Hispanic students statistic, while the difference between these races 

increased (from 1.7 percent to 4.6 percent), this figure does not tell the whole story. In fact, the 

4.6 percent difference is accounted for by Hispanic students out-enrolling White non-Hispanic 

students immediately in college following high school. The Administration remains committed to 

furthering equal educational opportunity, and will continue to pursue policies to support this 

important goal.

Data for the measures is taken from the Digest of Education Statistics, published annually by 

the National Center for Education Statistics. Fiscal year 2013 data will be available in 2015.

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STUDENT AID OVERVIEW

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

degrees and certificates.

Measure: Graduation rate: Graduation rates for all first-time, full-time, degree-seeking 

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

between minority and non-minority students will decrease.

Targets and Performance Data

The percentage of first-time, full-time degree seeking students completing within 150 percent of the 

normal time required.

Year

Target: Students completing a 

4-year degree within 150 percent of the 

normal time required

Actual: Students completing a 

4-year degree within 150 percent of 

the normal time required

2011 61.00% 58.70%

2012 62.00 59.20

2013 63.00

2014 64.00

2015 65.00

2016 TBD

Year

Target: Students completing a less 

than 4-year degree within 150 percent 

of the normal time required

Actual: Students completing a less 

than 4-year degree within 150 percent 

of the normal time required

2011 41.00% 31.30%

2012 42.00 31.00

2013 43.00

2014 44.00

2015 45.00

2016 TBD

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STUDENT AID OVERVIEW

Measure: Graduation rate: Graduation rates for all first-time, full-time, degree-seeking 

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

between minority and non-minority students will decrease.

Targets and Performance Data

The percentage of first-time, full-time degree seeking students completing within 150 percent of the 

normal time required.

Year

Target: Difference in the percentage of 

Black and White first-time, full-time 

students completing a 4-year degree 

within 150 percent of the normal time 

required

Actual: Difference in the percentage of 

Black and White first-time, full-time 

students completing a 4-year degree 

within 150 percent of the normal time 

required

2011 16.70% 22.20%

2012 16.50 22.30

2013 16.25

2014 16.00

2015 15.70

2016 TBD

Year

Target: Difference in the percentage of 

Hispanic and White first-time, fulltime students completing a 4-year 

degree within 150 percent of the normal 

time required

Actual: Difference in the percentage of 

Hispanic and White first-time, fulltime students completing a 4-year 

degree within 150 percent of the normal 

time required

2011 10.00% 11.00%

2012 9.50 10.70

2013 9.00

2014 8.70

2015 8.50

2016 TBD

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STUDENT AID OVERVIEW

Measure: Graduation rate: Graduation rates for all first-time, full-time, degree-seeking 

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

between minority and non-minority students will decrease.

Targets and Performance Data

The percentage of first-time, full-time degree seeking students completing within 150 percent of the 

normal time required.

Year

Target: Difference in the percentage of 

Black and White first-time, full-time 

students completing a less than

4-year program within 150 percent of 

the normal time required

Actual: Difference in the percentage of 

Black and White first-time, full-time 

students completing a less than

4-year program within 150 percent of 

the normal time required

2011 5.70% 2.50%

2012 5.50 3.80

2013 5.40

2014 5.30

2015 5.20

2016 TBD

Year

Target: Difference in the percentage of 

Hispanic and White first-time, fulltime students completing a less than

4-year program within 150 percent of 

the normal time required

Actual: Difference in the percentage of 

Hispanic and White first-time, fulltime students completing a less than

4-year program within 150 percent of 

the normal time required

2011 1.10% 5.10%

2012 1.00 6.30

2013 0.90

2014 0.80

2015 0.80

2016 TBD

Additional Information: For students graduating with a 4-year degree within 150 percent of 

the normal time, there was a slight increase from 2011 to 2012 in the graduation rate (from

58.7 to 59.2 percent). For students completing with less than a 4-year degree, the completion 

rate stayed relatively stable, only decreasing very slightly (from 31.3 to 31.0 percent).

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The year-over-year differences between the completion gaps in Black and White students (an 

increase of 0.1 percentage point) and between Hispanic and White non-Hispanic students (a 

decrease of 0.3 percentage point) in a 4-year degree program also showed only very minor 

impacts.

In both 2011 and 2012, Hispanic students graduated from degree programs within 150 percent 

of the normal time at less than 4-year programs at a higher rate than White students

(35.2 compared to 30.2 percent in 2011; 36.4 to 30.2 percent in 2012).

The difference between the percentages of Black and White students at less-than 4-year degree 

programs increased by 1.3 percentage points. The Department is in the process of reassessing 

out-year targets for some measures in light of actual experience.

Data on these measures is taken from the “Digest of Education Statistics,” published annually 

by the National Center for Education Statistics. Fiscal year 2013 data will be available in 2015.

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.

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