Department of Education

STUDENT FINANCIAL ASSISTANCE

Fiscal Year 2018 Budget Request

CONTENTS

Page

Appropriations Language ........................................................................................................O-1

Analysis of Language Provisions and Changes.......................................................................O-2

Appropriation, Adjustments and Transfers ..............................................................................O-3

Summary of Changes .............................................................................................................O-4

Authorizing Legislation............................................................................................................O-5

Appropriations History.............................................................................................................O-6

Significant Items in FY 2017 Appropriations Reports...............................................................O-7

Summary of Request ..............................................................................................................O-8

Federal Pell grants ...........................................................................................................O-10

Federal supplemental educational opportunity grants.......................................................O-25

Federal work-study ...........................................................................................................O-30

Federal Perkins loans.......................................................................................................O-37

Iraq and Afghanistan service grants..................................................................................O-42

State tables1

1 State tables reflecting final 2016 allocations and 2017 and 2018 estimates are posted on the 

Department’s webpage at: https://www2.ed.gov/about/overview/budget/statetables/index.html
STUDENT FINANCIAL ASSISTANCE

O-1

Appropriations Language

For carrying out subpart 1 of part A, and part C of title IV of the HEA, $22,932,626,000,

which shall remain available through September 30, 2019:

1

The maximum Pell Grant for which a student shall be eligible during award year 2018-192

shall be $4,860.

NOTE

A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared; therefore, 

the budget assumes this account is operating under the Furthering Continuing Appropriations Act, 2017 (P.L. 114-

254). The amounts included for 2017 reflect the annualized level provided by the continuing resolution.

TITLE III GENERAL PROVISIONS

(RESCISSION)

SEC. 312. Of the unobligated balances available for carrying out subpart 1 of part A of title

IV of the HEA, $3,900,000,000 is hereby permanently canceled. 3

NOTE

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document which follows the appropriation language.
STUDENT FINANCIAL ASSISTANCE

O-2

Analysis of Language Provisions and Changes

Language Provision Explanation

1

For carrying out subpart 1 of part A of title IV of 

the HEA, $22,932,626,000 which shall remain 

available through September 30, 2019.

This language sets the availability of funds 

provided under the account through the end of 

fiscal year 2019.

2

The maximum Pell Grant for which a student 

shall be eligible during award year 2018-19

shall be $4,860.

This language sets the maximum Pell Grant 

award for award year 2018-19. Including 

mandatory funding provided in the Higher 

Education Act, the Pell Grant maximum award 

in award year 2018-19 will be $5,920, the 

same as the previous award year.

Title III GENERAL PROVISIONS

3

Of the unobligated balance available for 

carrying out subpart 1 of part A of title IV of the 

HEA, $3,900,000,000 is hereby permanently 

canceled.

This language proposes the cancellation of

$3,900,000,000 of unobligated funds from the 

Pell Grant program.
STUDENT FINANCIAL ASSISTANCE

O-3

Appropriation, Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2016

2017

Annualized CR 2018

Discretionary: 

Discretionar y Appropriation ........................................... $24,198,210 $24,152,209 $22,932,626

Mandatory: 

Mandator y Appropriation ........................................... 4,840,814 7,898,118 7,055,499

Total, discretionary and 

mandatory appropriation .................. 29,039,024 32,050,327 29,988,125
STUDENT FINANCIAL ASSISTANCE

O-4

Summary of Changes

(dollars in thousands

2017 Annualized CR ......................................................................... $32,050,327

2018.................................................................................................. 29,988,125

Net change................................................................................. -2,062,202

Increases: 

2017

Annualized CR

Change 

from base

Program: 

Increase in mandatory funding provided to support Iraq and 

Afghanistan Service Grant program. $442 +$57

Increase in indefinite mandatory funding to support costs 

associated with add-on to the maximum grant to support

Year-Round Pell Grants. 0 +312,000

Subtotal, increases +312,057

Decreases: 

2017

Annualized CR

Change 

from base

Program: 

Decrease in discretionary funding to reflect the elimination of 

the Supplemental Education Opportunity Grant (SEOG) 

program. 731,736 -731,736

Decrease in discretionary funding to reflect changes to the 

Federal Work Study Program. 987,847 -487,847

Decrease in specified mandatory funding for use in the Pell 

Grant program due to amount provided in the HEA for FY 

2018. 1,574,000 -192,000

Decrease in specified mandatory funding in the HEA to offset 

the increase in indefinite mandatory funding for the add-on to 

the maximum Pell Grant to support Year-Round Pell Grants. 1,574,000 -312,000

Decrease in indefinite mandatory funding required for the 

add-on to the maximum Pell Grant due to reduced funding 

needs. 6,323,676 -650,676

Subtotal, decreases -2,374,259

Net change -2,062,202
STUDENT FINANCIAL ASSISTANCE

O-5

O-5

Authorizing Legislation

(dollars in thousands)

Activity

2017

Authorized Foot

note

2017

Annualized CR

2018

Authorized

2018

Request

Footnote

Federal Pell grants (HEA-IV-A-1): 

Career and T echnical: Federal Pell grants (discretionary) .......................... Indefinite $22,432,626 Indefinite 22,432,626

Career and T echnical: Federal Pell grants (mandatory).............................. Indefinite 7,897,676 Indefinite 7,055,000

Federal supplemental educational opportunity grants 

(HEA-IV-A-3)........................................................ 01 731,736 To be determined1 0

Federal Work-Study (HEA-IV-C) ................................ 01 987,847 To be determined1 500,000

Iraq and Afghanistan Service Grants (HEA-IV-A-10). Indefinite 442 Indefinite 499

Federal Perkins loans (HEA-IV-E).............................. Indefinite 0 Indefinite 0

Unfunded authorizations

Academic achievement incentive scholarships (HEAIV-A, Chapter 3) ................................................... Indefinite 0 Indefinite 0

Total discretionary appropriation 24,152,209 22,932,626

Portion of the discretionary request subject to 

reauthorization.................................................... 1,719,583 500,000

Total mandatory appropriation.................................... 7,898,118 7,055,499

Total appropriation ..................................................... 32,050,327 29,988,125

1 The GEPA extension expired September 30, 2015; the program was authorized in 2017 through appropriations language. Reauthorizing 

legislation is sought for fiscal year 2018.
STUDENT FINANCIAL ASSISTANCE

O-6

Appropriations History

(dollars in thousands)

(Year

Budget

Estimate

to Congressootnote

House 

Allowanceootnote

Senate 

Allowancefootnote Appropriationfootnote

2009 19,921,551 19,201,1361 18,761,8091 19,156,973

2009 Mandatory 0 2,090,0002 2,090,0002 2,090,0002

Recovery Act 

Supplemental (P.L. 

111-5) 0 17,600,000 13,930,000 17,314,000

2010 1,801,8093 19,634,905 19,296,8094 19,296,809

2011 1,737,9573 18,475,4925 24,899,9574 24,670,517

2012 30,338,016 22,367,5216 24,670,5176 24,535,281

2013 24,685,281 24,535,2817 24,535,2817 24,400,122

2014 24,685,281 N/A8 24,536,2104 24,486,210

2015 24,486,210 N/A8 24,233,2109 24,198,210

2016 24,198,210 23,828,21010 24,129,35210 24,198,210

2017 24,198,210 22,888,21011 24,198,21011 24,198,21011

2018 22,932,626

1 The levels for the House and Senate allowance reflect action on the regular annual 2009 appropriations 

bill, which proceeded in the 110th Congress only through the House Subcommittee and the Senate 

Committee. 2 Mandatory funding is provided for Pell Grants pursuant to the College Cost Reduction and Access Act of 

2007 (P.L. 109-084). 3 Reflects Budget proposal to shift funding for Pell Grants and Perkins Loans to their own, separate 

accounts.

4 The level for the Senate allowance reflects Committee action only.

5 The level for the House allowance reflects the House-passed full-year continuing resolution. 6 The level for the House allowance reflects an introduced bill; the level for the Senate allowance reflects 

Senate Committee action only.

7 The level for the House and Senate allowances reflect action on the regular annual 2013 appropriations 

bill, which proceeded in the 112th Congress only through the House Subcommittee and the Senate 

Committee.

8 The House allowance is shown as N/A because there was no Subcommittee action.

9 The level for the Senate allowance reflects Senate Subcommittee action only.

10 The levels for House and Senate allowances reflect action on the regular annual 2016 appropriations 

bill, which proceeded in the 114th Congress only through the House Committee and Senate Committee. 11 The levels for the House and Senate allowances reflect Committee action on the regular annual 2017 

appropriations bill; the Appropriation reflects the Consolidated Appropriations Act, 2017.
STUDENT FINANCIAL ASSISTANCE

O-7

Significant Items in FY 2017 Appropriations Reports

Year-Round Pell Grants

Explanatory 

Statement:

The Department should implement this provision to maximize flexibility for 

institutions of higher education and avoid unnecessary administrative burdens 

while ensuring the best interests of students. The Department is directed to 

issue guidance on this expanded eligibility and flexibility in the Pell grant 

program not later than July 1, 2017. The Department is also directed to 

provide reliable data on the implementation of this provision. 

Response: The Department will issue guidance on the expanded eligibility and flexibility 

of year-round Pell grants no later than July 1, 2017. The Department will also 

provide the most reliable data related to the implementation of this provision 

when available.
Summary of Request

O-8

O-8

Click here for accessible version Summary of R equ est

DEPARTMENT OF EDUCATION FISCAL YEAR 2018 PRESIDENT'S BUDGET 


(dollars in thousands)

Amount Percent Amount Percent

Student Financial Assistance

1. Federal Pell grants (HEA IV-A-1):

(a) Discretionary Pell grants D 22,475,352 22,432,626 22,475,352 22,432,626 0 0.00% (42,726) -0.19%

(b) Mandatory Pell grants M 4,840,361 6,323,676 6,630,676 5,985,000 (338,676) -5.36% (645,676) -9.74%

(c) Mandatory Funding for Discretionary Program Costs M 0 1,574,000 1,320,000 1,070,000 (504,000) -32.02% (250,000) -18.94%

Subtotal, Federal Pell grants 27,315,713 30,330,302 30,426,028 29,487,626 (842,676) -2.78% (938,402) -3.08%

Discretionary D 22,475,352 22,432,626 22,475,352 22,432,626 0 0.00% (42,726) -0.19%

Mandatory M 4,840,361 7,897,676 7,950,676 7,055,000 (842,676) -10.67% (895,676) -11.27%

Federal Pell Grants Program Information (memorandum entry):

Discretionary appropriation D 21,937,000 21,366,000 22,540,000 22,858,000 1,492,000 6.98% 318,000 1.41%

Mandatory appropriation M 4,961,000 5,569,000 5,876,000 5,985,000 416,000 7.47% 109,000 1.86%

Total resources 26,898,000 26,935,000 28,416,000 28,843,000 1,908,000 7.08% 427,000 1.50%

Maximum award (in whole dollars)

Base award $4,860 $4,860 $4,860 $4,860 0 0.00% 0 0.00%

Mandatory add-on $955 $1,060 $1,060 $1,060 0 0.00% 0 0.00%

Total maximum award $5,815 $5,920 $5,920 $5,920 0 0.00% 0 0.00%

Recipients (in thousands) 7,213 7,143 7,143 7,281 138 1.93% 138 1.93%

2. Campus-based programs:

(a) Federal supplemental educational opportunity grants (HEA IV-A-3) D 733,130 731,736 733,130 0 (731,736) -100.00% (733,130) -100.00%

(b) Federal work-study (HEA IV-C) D 989,728 987,847 989,728 500,000 (487,847) -49.38% (489,728) -49.48%

Subtotal, Campus-based programs 1,722,858 1,719,583 1,722,858 500,000 (1,219,583) -70.92% (1,222,858) -70.98%

3. Iraq and Afghanistan service grants (P.L. 111-39) M 453 442 442 499 57 12.90% 57 12.90%

Total 29,039,024 32,050,327 32,149,328 29,988,125 (2,062,202) -6.43% (2,161,203) -6.72%

Discretionary D 24,198,210 24,152,209 24,198,210 22,932,626 (1,219,583) -5.05% (1,265,584) -5.23%

Mandatory M 4,840,814 7,898,118 7,951,118 7,055,499 (842,619) -10.67% (895,619) -11.26%

NOTES: D = discretionary program; M = mandatory program

Detail may not add to totals due to rounding. 

For most programs, with the exception of Pell Grants, Credit Liquidating, and Credit Reestimates, the levels shown in the 2016 Appropriation column reflect the 6.8 percent reduction to mandatory funds 

that went into effect on October 1, 2015, and in the 2017 CR columns a 6.9 percent reduction that went into effect on October 1, 2016, pursuant to the Budget Control Act of 2011 (P.L. 112-25). 

The President’s Budget proposes to rescind $3.9 billion from Pell carryover funds. 

2018 President's Budget 

Compared to 2017 Appropriation

Account, Program and Activity

Category 

Code

2016

Appropriation

2018 President's Budget 

2017 Annualized Compared to 2017 Annualized CR

CR 

2018 

President's 

Budget 

2017 

Appropriation 
STUDENT FINANCIAL ASSISTANCE

O-9

Summary of Request

A full-year 2017 appropriation was not enacted at the time the FY2018 Budget was prepared; 

therefore, the Budget assumes the Department is operating under the Further Continuing 

Appropriations Act, 2017 (P.L. 114-254). The amounts included for 2017 reflect the annualized 

level provided by the continuing resolution. The Department of Education Appropriations Act, 

2017, provided $32.1 billion, an increase of $3.1 billion, or 10.7 percent, more than the 2016 

level for programs in this account.

The fiscal year (FY) 2018 Budget request will provide $134.2 billion in new grants, loans, and 

work-study assistance to help students pay for postsecondary education and compete for new 

jobs in the expanding economy. Overall, funds requested for all programs in the Student 

Financial Assistance account would provide $29 billion in aid1 and 7.6 million student aid 

awards. The 2018 Budget takes steps to simplify funding for college and redirect aid to 

students with the most need, while continuing to help make college education affordable.

The total 2018 Budget proposed for the Student Financial Assistance (SFA) account is $29.9

billion, approximately $2.1 billion lower than the FY 2017 Annualized Continuing Resolution 

level (CR level). The Budget request includes a discretionary request of $22.9 billion: $22.4

billion for Pell grants and $500 million for Federal Work-Study. Over $7 billion in mandatory 

funds is provided in the 2018 Budget for the Pell Grant program.

The 2018 Budget protects Pell Grant funding in FY 2018 and ensures the program remains on a 

stable footing, while also proposing to rescind $3.9 billion in unobligated discretionary funds 

from prior years. Under the 2018 Budget proposal, the Pell Grant maximum award in award 

year 2018-19 will be $5,920, the same level as the previous award year. The Budget also 

supports Year-Round Pell Grants, which will provide a third semester of Pell Grant support to 

recipients who have exhausted their eligibility for the award year and wish to enroll in additional 

coursework. Rather than forcing students to adhere to a traditional college schedule, the 

Administration can help more low-income students complete their degree or certificate and enter 

the workforce more quickly.

The 2018 Budget would also reform campus-based programs by more efficiently targeting aid to 

students with the most need. The 2018 Budget proposes to reduce the funding of the Federal 

Work Study (FWS) program to $500 million in FY 2018, a reduction of $488 million, or 49% 

compared to the FY 2017 CR level. The Budget also proposes to reform the poorly-targeted 

FWS program by redirecting funds to undergraduate students with the highest need. The 2018 

Budget would also save $732 million in FY 2018 by eliminating the SEOG program, which 

currently allows institutions to provide grant aid to students that do not always have the greatest 

need for assistance and is duplicative of the better-targeted Pell Grant program.

The 2018 program specific funding information and policy proposals, as well as program 

performance information that applies to all student assistance programs, are discussed in the 

Student Aid Overview.

1 Total aid available is based on new budget authority and any required matching funds, less allowable 

administrative costs.
STUDENT FINANCIAL ASSISTANCE

O-10

Federal Pell grants

(Higher Education Act of 1965, Title IV, Part A, Subpart 1)

(dollars in thousands)

FY 2018 Authorization: Indefinite

Budget authority1

Period of fund availability: 

2017

Annualized CR

2017

Appropriation 2018

Change from

Annualized CR

Program funds: 

Discretionary appropriation $22,432,626 $22,475,352 $22,432,626 0

Mandatory appropriation 6,323,676 6,630,676 5,985,000 -$338,676

Mandatory appropriation for 

discretionary program 

costs2 1,574,000 1,320,000 1,070,000 -504,000

Subtotal, current year 

funding 30,330,302 30,426,028 29,487,626 -842,676

Pell Grant program costs 26,935,000 28,416,00 28,843,000 +1,908,000

1 Table reflects discretionary budget appropriations and mandatory budget authority in support of program 

costs for each fiscal year.

2 The Higher Education Act (HEA) provides $1,382,000 thousand in mandatory funding to be used for 

discretionary program costs in FY2018. The budget proposes to use $312,000 thousand of this funding 

to support increases to the mandatory add-on award associated with reinstating Year-Round Pell Grants 

included in the budget.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-11

PROGRAM DESCRIPTION

The Federal Pell Grant program helps ensure access to postsecondary education for low- and 

moderate-income undergraduate students by providing grants that help meet postsecondary 

education costs. The program also promotes lifelong learning by providing resources so that

low- and moderate-income adults now in the workplace can return to school to upgrade their 

skills.

The Department provides funds to participating institutions to deliver aid to all students at the 

institution who are eligible for a Pell Grant. Unlike Campus-Based Programs (Supplemental 

Education Opportunity Grants, Work-Study, and Perkins Loans)—a student’s eligibility is not 

dependent on the availability of funds awarded to the institution.

A Pell Grant is the foundation of a student’s financial aid package, to which other forms of aid 

are added. The amount of a student’s Pell Grant is dependent on the student’s “expected family 

contribution” (EFC), cost of education, whether the student attends school full time or part time, 

and whether the students’ program is a full academic year in length or less. Pell Grant 

disbursements are made to a student at least once every term during the award year or at the 

beginning and mid-point for programs without terms.

Budget authority in the Pell Grant program is available for 2 fiscal years; for example, funds 

become available for obligation on October 1 of the fiscal year in which they are appropriated 

and remain available through September 30 of the following fiscal year. Funds proposed for

fiscal year 2018 would be used for grants in the 2018-19 award year, which runs from July 1, 

2018, through June 30, 2019. If Pell Grant costs for a given academic year exceed the 

corresponding appropriation, the Department uses the next fiscal year’s appropriation to cover 

the full cost.

Recent and projected funding: The Pell Grant program is the single largest source of grant aid 

for postsecondary education and helps ensure low-income students can afford higher education 

and successfully attain a postsecondary credential. In 2017, more than 7.1 million students will 

receive Pell Grants worth up to $5,920. The program operates as an entitlement to eligible 

students once the maximum grant, award rules, and payment schedule are established. The 

Higher Education Act does not provide for the denial of an award to any student who meets the 

qualifying conditions, nor does it allow the Secretary to reduce any student’s award level.

Mandatory funding: The College Cost Reduction and Access Act (CCRAA) authorized 

mandatory funding to support increases to the Pell maximum award set in each fiscal year’s 

appropriations act. The Health Care and Education Reconciliation Act (HCERA) amended that 

provision and increased the maximum award by $690 for award years 2010-2011 through 2012-

2013, and by the Consumer Price Index (CPI) from 2013 to 2017. The maximum Pell Grant 

increased from the 2016-17 award year level of $5,815 to $5,920 for the 2017-18 award year as 

a result of the CPI provision.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-12

Pell Grant program scoring rule: The congressional budget resolution for fiscal year 2006 

included a rule under which appropriations bills for the Pell Grant program are scored by the 

Congressional Budget Office for the estimated budget authority needed to fund the program for 

that year, or the requested budget authority, whichever is greater. If the appropriation exceeds 

the program cost as estimated at the beginning of the subsequent fiscal year, any surplus is 

available to reduce the appropriation needed to support that subsequent year’s program costs. 

Conversely, if the appropriation is lower than the updated estimated program cost, the 

difference is automatically scored against the subsequent year’s appropriation.

Given the nature of the program, it is reasonable to consider Pell Grants an individual 

entitlement for purposes of budget analysis and enforcement. Congress has chosen to continue 

treating the portion funded in annual appropriations acts as discretionary, continuing the scoring 

of budget authority for Pell Grants against the appropriations allocations established annually 

under section 302 of the Congressional Budget Act. Like the 2017 Budget, this Budget presents 

the portion of Pell Grants provided in the annual appropriations act as discretionary funding.

Need analysis formula: The need analysis formula for the Title IV need-based student aid

programs, stipulated in the Higher Education Act, determines financial eligibility for Pell Grants 

and is applied uniformly to all applicants. This formula determines a student’s EFC. The 

fundamental elements in the formula are the student’s (and in the case of dependent students,

their parents’) income and assets (excluding the value of the family’s home or farm), the family’s

household size, and the number of family members (excluding the student’s parents) attending 

postsecondary institutions. The EFC is the sum of (1) a percentage of net income (remaining 

income after subtracting allowances for taxes and basic living expenses), and (2) a percentage 

of net assets (assets remaining after subtracting an asset protection allowance). Different 

assessment rates and allowances are used for dependent students, independent students, and 

independent students with dependents. For award year 2017-18, the income threshold at which 

a dependent student receives an automatic zero EFC determination is $25,000.

Institutional participation: Approximately 5,000 postsecondary institutions currently participate in 

the Pell Grant program. Institutions that lose their eligibility to participate in the loan programs 

due to high default rates are also precluded from participation in the Pell Grant program. In 

addition, institutions that are subject to gainful employment regulations and that fail the 

regulations’ measures will lose eligibility to participate if they do not improve.

Student participation: Students may use their grants at any participating postsecondary

institution. Pell Grants are disbursed to the student through the institution. The Pell Grant 

program is the largest source of grant aid to students under the Higher Education Act, with 

approximately 41 percent of all undergraduates receiving a Pell Grant.

Recipients must be undergraduates and cannot have received a bachelor’s degree previously 

(with the exception of certain teacher certificate programs), and must be enrolled with the 

purpose of obtaining a degree or certificate at an eligible institution.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-13

Students must also have a high school diploma (or its equivalent), or be homeschooled. 

Students who did not have a high school diploma or were not homeschooled and first enrolled in 

an eligible program prior to July 1, 2012, may receive a Pell Grant by meeting one of the abilityto-benefit (ABT) alternatives. These alternatives include: (1) passing an independently 

administered Department-approved ability-to-benefit test; (2) completing at least 6 credit hours 

or 225 clock hours that are applicable toward a degree or certificate offered by the institution; or 

(3) completing a State process approved by the Secretary of Education.

Students who did not have a high school diploma or were not homeschooled and first enrolled in 

an eligible program on or after July 1, 2012, can only become eligible through one of the ABT 

alternatives described above if they are enrolled in an eligible career pathway program as 

defined in section 484(d)(2) of the HEA. 

Less than full-time students are eligible for pro rata awards based on their enrollment status. As 

of July 1, 2012, students are eligible for Pell Grants for a maximum of 12 semesters (or its 

equivalent) of full-time enrollment.

A student in default on a loan made under any Title IV HEA loan program, or who owes an 

overpayment on any other previously received Federal student aid, may not receive additional 

funds under the program unless he or she repays the debt in full, or makes satisfactory 

repayment arrangements with the holder of the debt.

Annual award amount: The annual award amount may vary from the statutory minimum 

payment up to the maximum authorized by statute for the academic year. The Higher 

Education Opportunity Act of 2008 (HEOA) enacted a minimum payment of 10 percent of the 

appropriated maximum award. For example, in award year (AY) 2016-17, the minimum is $582. 

Students who do not qualify for at least 10 percent of the maximum grant do not receive a Pell 

award. Appropriations acts set annual maximum award levels. The 2017 Annualized CR level 

supports a maximum award of $4,860 in award year 2017-18.

1

 With the CPI provision 

established by the HCERA, the maximum award will increase to $5,920 for award year 2017-18.

The aggregate Pell Grant award is the lesser of: 

• The maximum award (as set in annual appropriations acts) plus the additional amount 

provided by mandatory funds, minus the EFC, or

• The student’s cost of attendance minus the EFC.

1 The Department of Education published Pell Grant payment schedules for award year 2017-18 on 

October 16, 2016 in support of the “Early FAFSA” initiative. The payment schedules were based, in part, 

on a $4,860 base maximum award.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-14

Cost of attendance: For purposes of determining the Pell Grant award, the postsecondary 

institution establishes the cost of attendance, using the following cost items: 

• Tuition and fees;

• An allowance for books, supplies, transportation, dependent care, and miscellaneous 

expenses, including a reasonable allowance for the documented rental or purchase of a 

personal computer;

• Living allowances of: 

o The actual amount charged by the institution for room and board for students living at 

school,

o An amount determined by the institution for students without dependents living at home 

with parents, and

o For all other students, an amount based on the expenses reasonably incurred for room 

and board.

The cost of attendance for less-than-half-time students includes: tuition and fees; an allowance 

for books, supplies and transportation; and dependent care.

Financial aid administrator discretion: The Higher Education Act stipulates financial aid 

administrators may, on the basis of adequate documentation and on a case-by-case basis, 

adjust a student’s Pell Grant award by changing the cost of attendance or the value of data 

elements used to calculate the EFC to reflect “special circumstances,” such as the following: 

• Tuition expenses at an elementary or secondary school;

• Medical or dental expenses not covered by insurance;

• Unusually high child care costs;

• Recent unemployment of an independent student or a family member;

• Changes in a student’s housing status resulting in homelessness;

• The number of parents enrolled at least half-time in a degree or certificate or other program 

leading to a recognized educational credential at an institution participating in any of the 

Title IV programs; or

• Other changes in a family’s income, assets, or a student’s status.

Institutional payments: The HEA provides for payment to institutions of $5 per Pell Grant 

recipient to reimburse institutions for a share of the cost of administering the Pell Grant 
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-15

program. Funds for these payments are paid from the Pell Grant appropriation. In 2017-18, 

these payments will total $35.7 million.

Because of the structure of the Pell Grant program, annual funding levels might not equal 

annual expenditures. Discretionary and mandatory funding levels for the past 5 fiscal years 

were: 

Fiscal Year (dollars in thousands)

2013.............................................................. ........$35,219,3521

2014.............................................................. ..........28,201,8212

2015.............................................................. ..........27,628,2853

2016.............................................................. ..........27,315,7134

2017.............................................................. ..........30,426,0285

1 Includes $4,854 million in mandatory funds to increase maximum award by $785 and $7,587 million in 

additional mandatory funds provided in legislation to reduce discretionary need.

2 Includes $4,835 million in mandatory funds to increase maximum award by $870 and $588 million in 

additional mandatory funds provided in legislation to reduce discretionary need. 3 Includes $5,153 million in mandatory funds to increase maximum award by $915.

4 Includes $4,840 million in mandatory funds to increase maximum award by $965. 5 Includes $6,631 million in mandatory funds to increase maximum award by $1,060 and $1,320 million in 

additional mandatory funds provided in legislation to reduce discretionary need.

FY 2018 BUDGET REQUEST

The 2018 Budget requests $22.4 billion in discretionary funding for the Pell Grant program, the 

same level as the 2017 Annualized CR level. This discretionary request, plus over $7 billion in 

mandatory funding, establishes the total FY 2018 Pell funding level at $29.5 billion. The 

mandatory request supports an add-on award of $1,060 to the base maximum award of $4,860, 

resulting in a total maximum award of $5,920 in award year 2018-19. The Department of 

Education Appropriations Act, 2017, provided a total of $30.4 billion in combined discretionary 

and mandatory funding for this program.

The Budget also proposes to strengthen the Pell Grant program and provide more flexibility 

through Year-Round Pell Grants. This would allow students the opportunity to earn a third 

semester of Pell Grant support—up to an additional 50 percent of their regular Pell Grant 

award—during an award year in which they have exhausted their eligibility for the award year 

and wish to enroll in additional coursework. The policy would boost Pell Grant aid disbursed by 

$1.5 billion in award year 2018-19 to approximately 900,000 recipients. Year-Round Pell would 

also help incentivize students to complete their degrees faster, which can help them reduce 

their loan debt and enter the workforce sooner.

The 2018 Budget includes a $3.9 billion cancellation of unobligated balances in the Pell Grant 

program. Since 2011, enrollment and costs have continued to decline as the economy has 
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-16

improved, and funding provided previously has lasted longer than anticipated. With the 

cancellation of unobligated balances in 2018 and expanded benefits through Year-Round Pell, 

the program is still expected to have sufficient discretionary funds until 2025.

The 2018 Budget request for this program is best understood in the context of the 

Administration’s proposals for the student aid programs as a whole. Accordingly, program 

specific funding information and policy proposals also are discussed in the Student Aid 

Overview.

PELL GRANT PROGRAM HISTORICAL DATA

Applicant and Recipient Growth: 

The graphs on the following pages show the latest applicant, recipient, and aid available trends 

for the Pell Grant program. Applicants are estimated at 15.7 million for award year 2018-19; 

recipients at 7.3 million.

Many factors affect applicant growth, including demographic trends and changes in economic 

conditions, such as labor market demands. Factors affecting recipient growth include family 

incomes, need analysis, college costs, the level of the maximum Pell Grant award, and changes 

in applicant levels.

The following tables show program information consistent with actual, predicted, or requested 

funding levels.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-17

Federal Pell Grants Applicant Trends1

Award Year Valid Applicants2 Applicant Growth: 

Number

Applicant Growth: 

Percent Change

2003-04 11,093,506 738,981 7.14%

2004-05 11,539,497 445,991 4.02%

2005-06 11,611,388 71,891 0.62%

2006-07 11,811,911 200,523 1.73%

2007-08 12,299,232 487,321 4.13%

2008-09 13,883,288 1,584,056 12.88%

2009-10 16,482,495 2,599,207 18.72%

2010-11 17,625,778 1,143,283 6.94%

2011-12 18,458,701 832,923 4.73%

2012-13 18,294,947 -163,754 -0.89%

2013-14 17,915,446 -379,501 -2.07%

2014-15 17,312,207 -603,239 -3.37%

2015-16 16,362,617 -949,590 -5.49%

2016-17 15,573,889 -788,728 -4.82%

2017-18 15,392,623 -181,266 -1.16%

2018-19 15,739,437 346,814 2.25%

1 Applicant data through AY 2015-16 are considered final and are taken from internal operational reports. 

Applicant data for award years 2016-17 through 2018-19 are estimates and are subject to change. 2 A valid applicant is an undergraduate student who submits an application with sufficient data to calculate 

an EFC and determine Pell Grant eligibility.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-18

NOTE: Applicants reflect those applying for all Federal student financial assistance, including those 

receiving only non-need based student loans.

Number of Recipients: 

Under current estimates, the 2018 level would support Pell Grant awards to 7.3 million

recipients.

Aid Available: 

Under current estimates, the Department’s fiscal year 2018 proposal would provide $28.8 billion

in Pell Grants to students.

0

3,000,000

6,000,000

9,000,000

12,000,000

15,000,000

18,000,000

1973-741977-781981-821985-861989-901993-941997-982001-022005-062009-102013-142016-17

Award Year

Pell Grant Program Historical Data

Applicants and Recipients (1973-74 to 2016-17)

Applicants Recipients
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-19

Maximum award: 

The Department proposes to maintain the base maximum award at $4,860 for award year 2018-

19 through discretionary and mandatory funding. The cost of providing the mandatory add-on 

that increases the maximum award to $5,920 in award year 2018-19 is funded by permanent 

mandatory indefinite funding as provided through HCERA.

Pell Maximum Award, Aid Available, and Recipients

Award 

Year

Maximum 

Award

Aid Available 

(dollars in millions) Recipients

2013-14 $5,645 $31,466 8,659,348

2014-15 5,730 30,624 8,313,270

2015-16 5,775 28,566 7,657,000

2016-17 5,825 26,862 7,213,000

2017-18 5,920 26,899 7,143,000

2018-19 5,920 28,807 7,281,000

$0

$3

$6

$9

$12

$15

$18

$21

$24

$27

$30

$33

$36

1973-741977-781981-821985-861989-901993-941997-982001-022005-062009-102013-142016-17

Award Year

Pell Grant Program Historical Data

Aid Available (1973-74 to 2016-17)

$ in Billions
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-20

Pell Maximum Award, Budget Authority, and Program Costs

FY Maximum Award

Budget Authority

(dollars in thousands)

Program Costs

(dollars in thousands)

2009 5,350 35,661,0001 29,992,000

2010 5,550 22,794,8162 35,699,000

2011 5,550 42,015,9963 33,594,000

2012 5,550 41,569,0004 32,087,000

2013 5,645 35,219,3525 31,509,000

2014 5,730 28,201,8216 30,666,000

2015 5,775 27,628,2857 28,594,0008

2016 5,825 27,315,7139 26,898,0008

2017 5,920 30,330,30210 26,935,0008

2018 5,920 29,487,62611 28,843,0008

1 Budget Authority for FY 2009 includes $15,640 million in American Recovery and Reinvestment Act of 

2009 funds, and $2,733 million in mandatory funds for use as an add-on to the maximum award.

2 Budget Authority for FY 2010 includes $17,495 million in discretionary funds and $5,300 in mandatory 

funds to increase the maximum award.

3 Budget Authority for FY 2011 includes $23,162 million in discretionary funds, $13,500 million in 

mandatory funds for discretionary program costs, and $5,560 million in mandatory funds to increase the 

maximum award.

4 Budget Authority for FY 2012 includes $22,824 million in discretionary funds, $4,950 million in 

mandatory funding to increase the maximum award, and $13,795 million in mandatory funds provided in 

the Budget Control Act of 2011 to reduce discretionary need. 5 Budget Authority for FY 2013 includes $22,778 million in discretionary funds, $4,854 million in 

mandatory funding to increase the maximum award, and $7,587 million in mandatory funds for 

discretionary purposes.

6 Budget Authority requested for FY 2014 includes $22,778 million in discretionary funds, $4,835 million in 

mandatory funds to increase the maximum award, and $588 million in mandatory funds for discretionary 

purposes.

7 Budget Authority for FY 2015 includes $22,475 million in discretionary funds and $5,153 million in 

mandatory funds to increase the maximum award.

8 Estimate.

9 Budget authority for FY 2016 includes $22,475 million in discretionary funding and $4,840 million in 

mandatory funding to increase the maximum award.

10 Budget authority for the FY 2017 CR level includes $22,443 million in discretionary funding and $6,324 

million in mandatory funding to increase the maximum award, and $1,574 million in mandatory funds for 

discretionary purposes.

11 Budget authority requested for FY 2018 includes $22,443 million in discretionary funding and $5,985

million in mandatory funding to increase the maximum award, and $1,070 million in mandatory funds for 

discretionary purposes.
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-21

Distribution of Pell Grants by Student Status and Income Level: 

The tables below illustrate the distribution of Pell Grant funds to dependent and independent 

students at various income levels. In 2015-2016, approximately 70 percent of all Pell Grant 

recipients (including independent students) had incomes less than or equal to $30,000.

Distribution of Pell Grants to Dependent Undergraduates in 2015-16

Income Level Recipients Available Aid Average 

Award

 0 - $6,000 501,865 $2,229,349,926 $4,442

$6,001 - $9,000 116,973 525,441,116 4,492

$9,001 - $20,000 771,304 3,501,645,944 4,540

$20,001 - $30,000 698,496 3,130,821,782 4,482

$30,001 + 1,514,726 5,147,733,687 3,398

Total Dependent 3,603,364 14,534,992,455 4,034
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-22

Independent students make up more than half of the students receiving assistance under the 

Pell Grant program. These recipients tend to be in the lowest income groups, as shown below.

Distribution of Pell Grants to Independent Undergraduates in 2015-16

Income Level Recipients Available Aid Average 

Award

0 - $ 1,000 671,336 $2,527,801,688 $3,765

$1,001 - $ 3,000 201,934 776,952,487 3,848

$3,001 - $ 6,000 295,657 1,131,023,182 3,825

$6,001 - $ 9,000 319,570 1,204,349,963 3,769

$9,001 - $15,000 706,382 2,533,477,828 3,587

$15,001 - $20,000 498,875 1,524,840,539 3,057

$20,001 - $30,000 587,807 1,872,063,283 3,185

 $30,001 + 772,075 2,450,213,575 3,174

Total Independent 4,053,636 14,020,722,545 3,459

All Undergraduates 7,657,000 28,555,715,000 3,729

Distribution of Pell Grants by Type of Institution: 

The table below shows the distribution of Pell Grants to students attending different types of 

institutions. In 2015-2016, approximately 37 percent of the total aid available for Pell Grants 

went to students attending Public 4-Year schools, and approximately 31 percent went to 

students attending Public 2-Year schools.

Over the lifetime of the Pell Grant program, the share of Pell Grant aid to proprietary institutions 

has changed significantly. For example, in the 2009-2010 award year, approximately 25

percent of total Pell Grant aid went to students at proprietary institutions; in the 2014-2015 and 

2015-16 award years those figures were 18 and 17 percent, respectively.

Distribution of Pell Grants by Type of Institution in 2015-16

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

Pell Aid

Public 4-Year 2,726,337 $10,493,167,756 $3,849 36.7%

Public 2-Year 2,482,269 8,737,740,746 3,520 30.6

Private 1,137,835 4,569,863,671 4,016 16.0

Proprietary 1,310,559 4,754,942,827 3,628 16.7

Total 7,657,000 28,555,715,000 3,729 100.0
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-23

The following two charts show, for the award years 2000-2001 to 2015-2016, total Pell 

recipients (in thousands) by type and control of institution; and the institutional share 

(percentage) of total Pell recipients.

 -

 500

 1,000

 1,500

 2,000

 2,500

 3,000

 3,500

 4,000

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Pell Recipients - Type & Control 

2 Yr Public 4-Year Public Proprietary Private

0%

5%

10%

15%

20%

25%

30%

35%

40%

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Pell Recipients - Institutional Share of Total

2-Year Public 4 Yr Public Proprietary Private
STUDENT FINANCIAL ASSISTANCE

Federal Pell Grants

O-24

PROGRAM OUTPUT MEASURES 

(dollars in thousands)

Output Measures 2016

2017

Annualized CR 2018

Recipients 7,213,000 7,143,000 7,281,000

Aid available to students1 $26,861,935 $26,899,285 $28,806,595

Maximum grant (in whole dollars) $5,825 $5,920 $5,920

Minimum grant (in whole dollars)2 $582 $592 $592

Average grant (in whole dollars) $3,724 $3,766 $3,956

1 Overall aid available reflects the estimated cost of the program minus administrative costs of $5 per 

recipient.

2 The minimum grant reflects the statutory minimum, but the actual minimum grant published by the 

Department may be slightly higher due to the calculation methodology used in the payment schedule.

PROGRAM PERFORMANCE INFORMATION

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

goals, objectives, indicators and performance data and targets; 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 2018 and future years, as well as the resources and efforts invested by those served by 

this program.

Because the Federal Pell Grant program account relies on the same performance measures, 

strategies, and program improvement activities that apply to all the student financial assistance 

grant programs, Pell program performance is discussed in the Student Aid Overview and is 

not repeated here.
STUDENT FINANCIAL ASSISTANCE

O-25

Federal supplemental educational opportunity grants

(Higher Education Act of 1965, Title IV, Part A, Subpart 3)

(dollars in thousands)

FY 2018 Authorization: To be determined1

Budget authority: 

2017 

Annualized CR

2017

Appropriation 2018

Change from

Annualized CR

$731,736 $733,130 0 0

1 The GEPA extension applies through September 30, 2015; reauthorizing legislation is not sought in 

fiscal year 2018.

PROGRAM DESCRIPTION

The Federal Supplemental Educational Opportunity Grant (SEOG) program provides needbased grant aid to eligible undergraduate students to help reduce financial barriers to 

postsecondary education. Federal funding allocations are awarded to qualifying postsecondary 

institutions under a statutory formula. Unlike the Pell Grant program, the SEOG program is 

administered by institutional financial aid administrators who have substantial flexibility in 

determining student awards.

The funding provided for the SEOG program is available for 2 years. Funds become available 

for obligation on October 1 of the fiscal year in which they are appropriated and remain available 

through September 30 of the following fiscal year. Funds available for the current fiscal year 

2017 will be used for the 2017-18 award year, which runs from July 1, 2017, through June 30, 

2018.

Institutional participation: Roughly 3,700 postsecondary institutions receive funds under the 

SEOG program. Under the statutory formula, funds are distributed to institutions first on the 

basis of the institution's fiscal year 1999 SEOG program base guarantee and pro rata share (a 

hold harmless basis), and then on the basis of the aggregate need of the eligible undergraduate 

students in attendance. The current “hold harmless” provision distorts the allocation of funding 

among institutions so that certain institutions receive more funds than if the funds were solely 

distributed based on their students’ financial need.

Institutional matching: Participating institutions are required by statute to contribute at least 

25 percent of the SEOG award amounts. The institutional share can be met using the 

institution's own resources, State grants, or funds from foundations or other charitable 

organizations.

Student participation: Students qualify for grants of up to $4,000 by demonstrating financial 

need under the needs analysis formula used for Federal student aid. Institutions must give first 

priority for awards to students with demonstrated “exceptional need” (students with the lowest 

Expected Family Contributions (EFCs) at the institution) who are also Pell Grant recipients. 
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grant

O-26

Remaining awards are then available for students with exceptional need who are not Pell Grant 

recipients. In addition, if any part of the institution’s SEOG allocation determination to students 

is based, in part, on the financial need demonstrated by students who are independent or 

attending the institution less-than-full-time, then a reasonable portion of the allocation must be 

made available to such students.

Recipients must be undergraduates and cannot have received a bachelor’s degree and must be 

enrolled with the purpose of obtaining a degree or certificate at an eligible institution. 

Approximately 9 percent of undergraduates receive SEOG awards.

Recipients must also have a high school diploma (or its equivalent), or be homeschooled. 

Students who did not have a high school diploma or were not homeschooled and first enrolled in 

an eligible program prior to July 1, 2012, may receive a SEOG funds by meeting one of the 

ability-to-benefit (ABT) alternatives. These alternatives include: (1) passing an independently 

administered Department-approved ability-to-benefit test; (2) completing at least 6 credit hours 

or 225 clock hours that are applicable toward a degree or certificate offered by the institution; or 

(3) completing a State process approved by the Secretary of Education.

Students who did not have a high school diploma or were not homeschooled and first enrolled in 

an eligible program on or after July 1, 2012, can only become eligible through one of the ABT 

alternatives described above if they are enrolled in an eligible career pathway program as 

defined in section 484(d)(2) of the HEA. 

Students already in default on a Federal student loan or who owe an overpayment on any other 

previously received Federal student aid may not receive a SEOG unless they repay the debt in 

full, or makes satisfactory repayment arrangements.

Institutional administrative provisions: 

• Administrative costs. Each institution’s administrative cost allowance is based upon its 

expenditures for all three campus-based programs (SEOG, Work-Student, or Perkins Loan 

Program excluding the amount of Perkins loans assigned to the Department). An institution 

may use up to 5 percent of the first $2.75 million of its program expenditures; plus up to 

4 percent of expenditures greater than $2.75 million but less than $5.5 million; and up to 

3 percent of expenditures greater than $5.5 million during an award year to meet 

administrative costs associated with these programs.

• Transferability of funds. An institution may transfer up to 25 percent of Work-Study funds to 

SEOG. Up to 10 percent of an institution’s SEOG funds may, at the discretion of the 

institution, be used for expenditures for the preceding fiscal year, and up to 10 percent of an 

institution’s SEOG funds may remain available for the next fiscal year.

• Reallocation of funds. Excess funds available because of under-utilization by institutions 

are reallocated to other institutions in accordance with program regulations. An institution 

returning more than 10 percent of its allocation will have its subsequent allocation reduced 

by the same amount.
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

O-27

Funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands)

2013.............................................................. ..............$696,175

2014.............................................................. ................733,130

2015.............................................................. ................733,130

2016.............................................................. ................733,130

2017.............................................................. ................733,130

FY 2018 BUDGET REQUEST

Currently, SEOG awards are not optimally allocated based on a student’s financial need, 

despite being a need-based program. Although the HEA requires that participating institutions 

give “priority” in awarding SEOG funds to Pell-eligible students, there is no requirement that the 

size of these awards be tied to the need of the student. As a result, institutions are given the 

discretion to provide larger SEOG awards to students that do not exhibit the highest need. As 

shown in the tables below, the average SEOG award increased as income levels increased. 

Furthermore, provisions in the SEOG funding allocation formula also distort the targeting of aid. 

For example, according to the distribution tables for Pell Grant aid presented earlier, about 67% 

of Pell recipients attend public 4-year or public 2-year institutions, while only 50% of SEOG 

funds go to these institutions. Moreover, the SEOG program is part of a complex and confusing 

array of federal aid programs that could benefit from better targeting of aid to needy students. In 

award year 2017-18, the Department of Education is expected to pay institutions over $14.5 

million dollars to administer the SEOG program—dollars that could be better targeted directly to 

needy students. The 2018 Budget Request proposes to eliminate the SEOG program beginning 

in award year 2018-19, which would result in a savings of nearly $732 million compared to the 

2017 Annualized CR level. The Department of Education Appropriations Act, 2017, provided 

$733.1 million for this program.

The 2018 Budget Request for this program is best understood in the context of the 

Administration’s proposals for the student aid programs as a whole. Accordingly, student 

assistance policy proposals are discussed in greater detail in the Student Aid Overview.

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2016

2017

Annualized CR 2018

Recipients 1,530,180 1,527,271 0

Aid available to students1 $992,875 $990,987 $0

Average award (in whole dollars) $649 $649 $0

1 Aid available includes budget authority, institutional matching funds, transfers from Perkins Loans and 

Federal Work-Study programs, minus administrative costs.
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

O-28

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 

2017 and the future as well as the resources and efforts invested by institutions.

Because the programs in the Student Financial Assistance account rely on the same 

performance data, performance measures, strategies, and program improvement activities that 

apply to all of the programs, that information is discussed in the Student Aid Overview and is

not repeated here.

Distribution of SEOG Funds by Student Status and Income Level: 

The following tables (structured to compare across the programs in the SFA account) show the 

distribution of SEOG funds to dependent and independent students at various income levels in 

2014-2015. These tables include the most recent distributional data available, which may not 

match directly with the data provided in the Program Output Measures section.

In 2014-2015, 70 percent of dependent SEOG recipients had family income levels under 

$30,000 and 75 percent of independent SEOG recipients had family income levels under 

$20,000.

Distribution of SEOG to Dependent Undergraduates in 2014-15

Income Level Recipients Available Aid Average 

Award

0 - $5,999 128,790 $89,320,258 $694

$6,000 - $11,999 76,442 54,771,018 717

$12,000 - $23,999 223,524 166,455,598 745

$24,001 - $29,999 85,811 68,050,597 793

$30,000 + 223,195 186,024,945 833

Total Dependent 737,762 546,622,416 765
STUDENT FINANCIAL ASSISTANCE

Federal supplemental educational opportunity grants

O-29

Distribution of SEOG to Independent Undergraduates in 2014-15

Income Level Recipients Available Aid Average 

Award

0 - $ 1,999 231,664 $115,419,652 $498

$2,000 - $ 3,999 55,928 29,232,717 523

$4,000 - $ 7,999 112,500 56,789,546 505

$8,000 - $11,999 115,407 54,313,508 471

$12,000 - $15,999 78,798 34,481,299 438

$16,000 - $19,999 68,065 28,599,313 420

$20,000 + 219,344 99,224,382 452

Total Independent 881,706 418,060,417 474

All Undergraduates 1,619,468 982,682,833 607

Distribution of SEOG Funds by Type of Institution: 

The distribution of SEOG assistance to institutions is controlled by a statutory formula. The 

distribution of SEOG across different types of institutions has remained relatively constant over 

time due to this formula and the base guarantee. The distribution of aid by institution type has 

remained relatively constant over the last 5 years. 

The following table shows the distribution of SEOG to students attending different types of 

institutions in 2014-2015. The majority of funding goes to students attending public institutions.

Distribution of SEOG by Type of Institution in 2014-15

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

SEOG Aid

Public 4-Year 463,007 $325,409,968 $703 33.1%

Public 2-Year 426,914 172,815,700 405 17.6

Private 359,161 348,212,236 970 35.4

Proprietary 370,386 136,244,929 368 13.9

Total 1,619,468 982,682,833 607 100.0

NOTE: Percentages may not total to 100 percent due to rounding.
STUDENT FINANCIAL ASSISTANCE

O-30

Federal work-study

(Higher Education Act of 1965, Title IV, Part C)

(dollars in thousands)

FY 2018 Authorization: To be determined1

Budget authority: 

Period of fund avail 2017

Annualized CR

2017

Appropriation 2018

Change from

Annualized CR

$987,847 $989,728 $500,000 -487,847

1 The GEPA extension expires September 30, 2015; reauthorizing legislation is sought for FY 2018.

PROGRAM DESCRIPTION

The Federal Work-Study (FWS) program ensures access to postsecondary education and 

lifelong learning by assisting needy undergraduate and graduate students in financing 

postsecondary education costs through part-time employment. Federal funds are distributed to 

qualifying institutions whose financial aid administrators select qualified students with financial 

need for employment. Students may be employed by the institution; by a Federal, State, or 

local public agency or private nonprofit organization; or by a private for-profit organization.

The funding for the FWS program is available for 2 fiscal years. Funds become available for 

obligation on October 1 of the fiscal year in which they are appropriated and remain available 

through September 30 of the following fiscal year. Funds requested for fiscal year 2018 would 

be used for the 2018-19 award year, which runs from July 1, 2018 through June 30, 2019.

Institutional participation: Almost 3,300 institutions participate in the FWS program. Funds are 

distributed to institutions based on a statutory formula. The formula starts with the institution's 

fiscal year 1999 FWS program base guarantee and pro rata share, and bases the allocation on

the aggregate need of the eligible undergraduate students in attendance. The FWS program is 

administered by institutional financial aid administrators who have substantial flexibility in 

determining student awards.
STUDENT FINANCIAL ASSISTANCE

Federal work study

O-31

If an institution is a proprietary school employing its own students, this employment must be: (1) 

on campus, except that at least 7 percent of the total funds granted must be used to 

compensate students employed in community service activities; (2) related, to the maximum 

extent practicable, to the student’s educational objectives; and (3) related to providing student 

services. The employment tasks of FWS program students, however, must not involve the 

solicitation of potential students to enroll in the school.

Institutional matching: In general, participating institutions or other employers must contribute at 

least 25 percent of a student’s part-time earnings (or 50 percent in the case of private-for-profit 

employers). The Federal share may be up to 90 percent for students employed at a private 

nonprofit organization or a Federal, State, or local public agency that would otherwise be unable 

to afford the costs of employing those students. The 90 percent Federal share is limited to no 

more than 10 percent of the students paid under the FWS program; in addition, the school may 

not own, operate, or control the organization, and the school must select the organization or

agency on a case-by-case basis.

Student participation: Students qualify for FWS program awards by demonstrating financial 

need under the statutory need analysis system for the Federal student financial assistance 

programs. Hourly earnings must not be less than the current Federal minimum wage. 

Approximately 7 percent of undergraduates participate in the FWS program.

In addition, if the institution’s allocation is based in part on the financial need demonstrated by 

independent students or students attending the institution less-than-full-time, then a reasonable 

portion of the allocation must be made available to such students.

Recipients must be enrolled with the purpose of obtaining a degree or certificate at an eligible 

institution. Students must also have a high school diploma (or its equivalent), or be 

homeschooled. Students who did not have a high school diploma or were not homeschooled 

and first enrolled in an eligible program prior to July 1, 2012, may receive FWS program funds 

by meeting one of the ability-to-benefit (ABT) alternatives. These alternatives include: (1) 

passing an independently administered Department-approved ability-to-benefit test; (2) 

completing at least 6 credit hours or 225 clock hours that are applicable toward a degree or 

certificate offered by the institution; or (3) completing a State process approved by the Secretary 

of Education.

Students who did not have a high school diploma or were not homeschooled and first enrolled in 

an eligible program on or after July 1, 2012, can only become eligible through one of the ABT 

alternatives described above if they are enrolled in an eligible career pathway program as 

defined in section 484(d)(2) of the HEA. 

Students who have defaulted on a Federal student loan or who owe an overpayment on any 

other previously received Federal student aid, however, may not receive additional funds under 

the program unless they repay the debt in full, or make satisfactory repayment arrangements 

with the holder of the debt.

Institutional administrative provisions: Institutions may use their allocations to support a variety 

of Work-Study activities, including: 
STUDENT FINANCIAL ASSISTANCE

Federal work study

O-32

• Community service. An institution must use at least 7 percent of its Federal allocation for 

payments to students employed in community service activities. Other Work-Study jobs that 

qualify as community service activities include community-accessible childcare and

assistance for disabled students. The HEOA expanded the definition of community service 

to include emergency preparedness and response. The eligible institution, at its discretion, 

may count any contribution made by the employer toward the non-Federal share of the 

student’s compensation.

• Tutoring and literacy activities. An institution must include at least one tutoring or family 

literacy project as part of its community service activities. Under this requirement, priority is 

to be given to the employment of Work-Study recipients as reading tutors in schools that are 

participating in a reading reform project designed to train teachers to teach reading on the 

basis of scientifically based research on reading, and which is funded under the Elementary 

and Secondary Education Act of 1965, as amended. In 2010-11, the last year data was 

collected, almost 39,000 Work-Study students were employed as reading tutors.

• Private sector. An institution may use up to 25 percent of its Work-Study allocation to match 

earnings of students working for private for-profit organizations. Students must, to the 

maximum extent practicable, be placed in jobs that are academically relevant to their course 

of study. FWS program funds may not be used to pay any employee who would otherwise 

be employed by the private organization.

• Job Location and Development. An institution may use up to 10 percent of its FWS program

allocation, or a maximum of $50,000, whichever is less, for administrative expenses 

associated with the establishment or expansion of a Job Location and Development (JLD) 

program. This program locates and develops off-campus full- or part-time jobs or 

community service jobs for currently enrolled students. The Federal share of the JLD 

program costs cannot exceed 80 percent.

• Work Colleges. A “Work College” is an institution that requires all resident students to 

participate in a work-learning program as an integral part of the institution’s educational 

philosophy. These colleges are authorized to receive special awards in addition to their 

regular FWS program allocations to support such programs. Work Colleges must match 

Federal allocations on a dollar-for-dollar basis. In addition, Work Colleges may transfer all 

of their regular FWS program allotments for use under the Work Colleges program.

• Administrative costs. Each institution’s administrative cost allowance is based upon its 

expenditures for all three campus-based programs, excluding the amount of Perkins loans 

assigned to the Department. Under a statutory formula, an institution may use up to 5

percent of the first $2.75 million of its program expenditures; plus up to 4 percent of 

expenditures greater than $2.75 million but less than $5.5 million; and up to 3 percent of 

expenditures greater than $5.5 million during an award year to meet administrative costs 

associated with these programs.

• Transferability of funds. An institution may transfer up to 25 percent of its allocation from 

Perkins Loans Federal Capital Contributions to SEOG or FWS (or both) and up to 25

percent of FWS to SEOG. Up to 10 percent of an institution’s FWS program funds may, at 
STUDENT FINANCIAL ASSISTANCE

Federal work study

O-33

the discretion of the institution, be used for expenditures for the preceding fiscal year. In 

addition, up to 10 percent of an institution’s FWS program funds may, at the discretion of the 

institution, remain available for the next fiscal year.

• Reallocation. If funds become available because of under-utilization by institutions, excess 

funds are reallocated only to other institutions that used at least 5 percent of their FWS 

program allocations to compensate students employed in tutoring in reading and family 

literacy activities in the preceding year. Reallocated funds must be used to support student 

employment in community service activities.

• Disasters. The Higher Education Opportunity Act added a provision under which an eligible 

institution located in an area affected by a major disaster, as determined by the Secretary, 

may make FWS payments to disaster-affected students, for the period of time (not to exceed

1 academic year) in which the students were prevented from fulfilling their FWS obligations 

due to the disaster. Payment may be made in an amount equal to or less than the amount a 

student would have been paid had the student been able to complete the work obligation 

necessary to receive Work-Study funds.

Funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands)

2013.............................................................. ..............$925,595

2014.............................................................. ................974,728

2015.............................................................. ................989,728

2016.............................................................. ................989,728

2017.............................................................. ................989,728

FY 2018 BUDGET REQUEST

The 2018 Budget proposes to significantly reduce federal funds for the FWS program beginning 

in award year 2018-19 while also improving the targeting of aid by limiting eligibility to 

undergraduate students who can most benefit. The 2018 Budget would ensure that institutions 

prioritize eligible Pell Grant recipients when allocating FWS program funds. As shown in the 

tables below, among dependent students, those with family incomes at or above $30,000 

received 66% of FWS funds compared to 33% of FWS funds going to students with family 

incomes below $30,000. Independent students, who typically have lower family incomes, 

received nearly half of all Pell Grant aid, but only received 14% of FWS funds.

The 2018 Budget requests $500 million for the FWS program, a reduction of $487.8 million 

compared to the fiscal year 2017 amount. The request will generate nearly $553.7 million in 

available aid to support more than 332,000 part-time jobs for students, helping to meet the 

educational costs of undergraduate students and to expand their future employment prospects.

The Department of Education Appropriations Act, 2017, provided $989.7 million for this 

program.
STUDENT FINANCIAL ASSISTANCE

Federal work study

O-34

The 2018 Request for this program is best understood in the context of the Administration’s 

proposals for the student aid programs as a whole. Accordingly, policy proposals are discussed 

in greater detail in the Student Aid Overview.

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures

2016

2017

Annualized CR 2018

Recipients 634,931 633,724 332,624

Aid available to students1 $1,096,080 $1,093,997 $553,728

Average award (in whole dollars) $1,726 $1,726 $1,665

1 Aid available includes budget authority, institutional matching funds, transfers from Perkins Loans and 

Federal Work-Study programs, minus administrative costs.

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 2018 and 

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

Because the programs in the Student Financial Assistance account rely on the same 

performance data, performance measures, strategies, and program improvement activities that 

apply to all of the programs, that information is discussed in the Student Aid Overview and is

not repeated here.

Distribution of Work-Study Funds by Student Status and Income Level: 

The following tables (structured to provide a common basis of comparison among the programs 

in the SFA account) illustrate the distribution of Work-Study funds to dependent students and 

the distribution to independent students at various income levels for 2014-2015. These tables 

include the most recent distributional data available, which may not correspond directly with the 

data provided in the Program Output Measures section.
STUDENT FINANCIAL ASSISTANCE

Federal work study

O-35

Distribution of Work-Study to Dependent Undergraduates in 2014-15

Income Level Recipients Available Aid Average 

Award

0 - $5,999 37,386 $61,757,982 $1,652

$6,000 - $11,999 23,050 38,945,348 1,690

$12,000 - $23,999 69,529 118,271,214 1,701

$24,001 - $29,999 32,990 54,833,625 1,662

$30,000 + 338,432 506,991,456 1,498

Total Dependent 501,387 780,799,625 1,557

Distribution of Work-Study to Independent Undergraduates and Graduates in 2014-15

Income Level Recipients Available Aid Average 

Award

0 - $ 1,999 31,017 $59,614,034 $1,922

$2,000 - $ 3,999 10,355 19,934,895 1,925

$4,000 - $ 7,999 17,861 36,965,282 2,070

$8,000 - $11,999 13,680 28,440,149 2,079

$12,000 - $15,999 8,967 18,122,126 2,021

$16,000 - $19,999 5,835 11,600,827 1,988

$20,000 + 17,239 32,971,147 1,913

Total 

Independent 104,954 207,648,460 1,978

Graduate Students 45,068 111,617,497 2,477

All Students 651,409 1,100,065,582 1,689

Distribution of Work-Study Funds by Type of Institution: 

The Work-Study program is a campus-based program and the distribution of funds to 

institutions is controlled by a statutory formula. As a result, the distribution of Work-Study 

assistance across different types of institutions has remained relatively constant over time. The 

table below shows the distribution of Work-Study to students attending different types of 

institutions in 2014-2015.
STUDENT FINANCIAL ASSISTANCE

Federal work study

O-36

Distribution of Work-Study (WS) by Type of Institution in 2014-15

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

WS Aid

Public 4-Year 218,607 $399,294,334 $1,827 36.3%

Public 2-Year 72,644 146,750,183 2,020 13.3

Private 337,515 501,631,435 1,486 45.6

Proprietary 22,643 52,389,630 2,314 4.8

Total 651,409 1,100,065,582 1,689 100.0

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

Community Service Activities: 

The Work-Study program has a long tradition of providing opportunities for students to perform 

community service activities—supporting an important cooperative link between students, 

colleges and the local community. At least 7 percent of an institution's Work-Study allotment 

must be used to pay students employed in community service jobs, unless the institution obtains 

a waiver from the Department. Nationally, 14 percent of Work-Study funds are used for jobs in 

community service.

Participating colleges and universities must ensure that at least one eligible project provides 

services to both children and their parents. Allowable activities, such as family literacy 

programs, emphasize preparing parents to read to their own children.

The Department has waived the usual 25 percent institutional contribution, allowing Work-Study 

funds to pay up to 100 percent of the wages to support students who tutor children in 

mathematics, or reading, or who serve in family literacy programs.

Distribution of Work-Study Funds to Students in Community Service Activities: 

The table below shows the distribution of Work-Study assistance to students employed in 

community service activities in 2014-2015.

Distribution of Work-Study to Students in Community Service Activities by Type of 

Institution in 2014-15

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

WS Aid

Public 4-Year 40,723 $61,781,911 $1,517 39.9%

Public 2-Year 13,326 25,114,343 1,885 16.2

Private 54,664 61,608,761 1,127 39.8

Proprietary 3,591 6,464,163 1,800 4.2

Total 112,304 154,969,178 1,380 100.0

NOTE: Percentages may not total to 100 percent due to rounding.
STUDENT FINANCIAL ASSISTANCE

O-37

Federal Perkins loans

(Higher Education Act of 1965, Title IV, Part E)

(dollars in thousands)

FY 2018 Authorization: (Expires 9/30/2017) 

PROGRAM DESCRIPTION

The Federal Perkins Loan program provides long-term, low-interest loans to financially needy

undergraduate and graduate students to help meet their higher education costs. Loans are 

made from Federal revolving funds held at institutions composed of: (1) Federal capital 

contributions (FCC); (2) institutional matching funds equaling at least one-third of the FCC;

(3) payments on prior-year student loans; and (4) reimbursements for loans cancelled in 

exchange for specific types of teaching, or military or public service. However, no Federal 

Capital Contributions have been made since 2004.

The Perkins Loan program was reauthorized through September 30, 2017, by the Federal 

Perkins Loan Program Extension Act of 2015 (the Extension Act). Under the Extension Act, 

schools may disburse new Perkins Loans to eligible undergraduate borrowers through 

September 2017, and to graduate students with existing Perkins Loans through September 

2016. Additionally, undergraduate borrowers are required to exhaust eligibility for both 

subsidized and unsubsidized Federal direct loans before receiving a Perkins Loan. The 

Extension Act also eliminated the grandfathering provision in Section 461(b)(2) of the Higher 

Education Act (HEA) that had allowed schools to make Perkins Loans to borrowers who 

received a disbursement before June 30, 2015, for up to 5 additional years. In FY 2018, 

Federal funds in institutional revolving funds will be recalled to the Federal Government.

Institutional participation: Roughly 1,400 postsecondary institutions make loans under the 

Perkins Loan program. The Perkins Loan program is administered by institutional financial aid 

administrators who have substantial flexibility in determining student awards.

Institutional matching: Institutions contribute one-third of the FCC in matching funds.

Default rate provisions: In general, a school’s participation in the program is terminated if its 3-

year cohort default rate exceeds 50 percent for 3 consecutive years.

Institutional administrative provisions: 

• Loan Servicing and collections. Schools are responsible for making loans, servicing, and 

collections, including the establishment of repayment schedules and borrower counseling. 

Most servicing and collection activities are performed by private contractors employed by the 

schools. Collections on existing loans were approximately $1.3 billion in award year

2014-15.

• Loan Rehabilitation. Participating institutions are required to establish a loan rehabilitation 

program for all defaulted borrowers. Loan rehabilitation allows the institution to eliminate the 

loan from default rate calculations. In order to rehabilitate a defaulted loan, borrowers are 

required to make nine consecutive on-time monthly payments to the institution. The first 
STUDENT FINANCIAL ASSISTANCE

Federal Perkins loans

O-38

payment of the dictated 9-month cycle is considered the first payment of a new 10-year 

payment cycle. Once the loan is rehabilitated, the institution must update the borrower’s 

loan status with any credit reporting agency to which the default was reported. A loan can 

only be rehabilitated once.

• Administrative costs. Each institution’s administrative cost allowance is based upon its 

expenditures for all three campus-based programs, excluding the amount of Perkins loans 

assigned to the Department. Under a statutory formula, an institution may use up to

5 percent of the first $2.75 million of its program expenditures; plus up to 4 percent of 

expenditures greater than $2.75 million but less than $5.5 million; and up to 3 percent of 

expenditures greater than $5.5 million during an award year to meet administrative costs 

associated with the SEOG, Work-Study, and Perkins Loan programs.

Student participation: Students qualify for loans by demonstrating financial need under the 

statutory Federal student aid need analysis system. An eligible borrower is an undergraduate, 

graduate, or professional student with demonstrated financial need enrolled at an eligible 

postsecondary institution. In addition, if the institution’s Perkins loan allocation was based, in 

part, on the financial need demonstrated by students who are independent students or attending 

the institution less-than-full-time, then a reasonable portion of the allocation must be made 

available to such students. However, a student already in default on a loan made under any 

Title IV, HEA loan program, or who owes an overpayment on any other previously received 

Federal student aid, may not borrow under the program unless he or she repays the debt in full, 

or makes satisfactory repayment arrangements with the holder of the debt. Undergraduate 

borrowers are required to exhaust eligibility for both subsidized and unsubsidized Federal direct 

loans before receiving a Perkins Loan.

A borrower makes no principal repayments during in-school, grace, and deferment periods, and 

interest is neither paid nor accrued during these periods. During the repayment period (which 

normally may not exceed 10 years), interest is charged at a 5 percent annual rate. Maximum 

loan amounts were increased by the Higher Education Opportunity Act (HEOA). The maximum 

annual amount a student can borrow under the Perkins Loan program is $5,500 for 

undergraduates and $8,000 for graduate and professional students; $60,000 for the 

combination of undergraduate and graduate study; $27,500 for students who have completed 2 

years of undergraduate education, but have not received a bachelor's degree; and $11,000 for 

all other students.

Loan cancellations: In order to reduce the loan burden on Perkins loan borrowers who enter 

certain fields of public service, all or a portion of the repayment obligation on Perkins loans is 

canceled in exchange for specified periods of such service. Perkins loan balances are also 

canceled in the event of a borrower's death, or total and permanent disability.

In general, the schools’ share of their revolving funds are reimbursed for 100 percent of the 

principal and accrued interest of the loan canceled, reducing the amount the Federal 

Government will collect when the Federal share is repaid after the end of the program.

The areas of public service that qualify for cancellation include: 
STUDENT FINANCIAL ASSISTANCE

Federal Perkins loans

O-39

• Teaching in low-income areas and in special education, math, science, foreign language, 

bilingual education, and any other fields where State education agencies determine a 

shortage of qualified teachers exists, or serve full-time on the faculty at a tribal college or 

university.

• Full-time staff work in a preschool program under the Head Start Act.

• Military service in areas of hostilities and imminent danger.

• Peace Corps and VISTA service.

• Service as a law enforcement/corrections officer, firefighter, or public defender.

• Nurses and medical technicians providing health care services, professional providers of 

qualified early intervention services, and employees of qualified child/family service in lowincome communities.

The program has received no new appropriated funding since 2004.

FY 2018 BUDGET PROPOSAL

The proposal for FY2018 assumes schools will continue to disburse new Perkins Loans to 

eligible undergraduate borrowers through September 2017, but the program will no longer be 

authorized beginning in FY2018 and no new loans will be disbursed. The Department of 

Education Appropriations Act, 2017, did not provide any funds for this program. 

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2016

Footnote

2017

Annualized CR 

Footnote

2018

Footnote

Federal Perkins Loans

Federal Per kins Loans: Loan Recipients 315,527 253,466 0

Federal Per kins Loans: Loan volume1 (dollars in thousands) $782,230 $782,230 $0

Federal Per kins Loans: Average loan (in whole dollars) $2,479 $3,086 $0

Federal Per kins Loans: Participating Institutions 1,500 1,500 0

NOTE: Each participating institution uses its revolving fund to continue originating new loans.

1 Loan volume includes budget authority and institutional matching funds minus administrative costs.

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 
STUDENT FINANCIAL ASSISTANCE

Federal Perkins loans

O-40

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 2018 and 

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

Because the programs in the Student Financial Assistance account rely on the same 

performance data, performance measures, strategies, and program improvement activities that 

apply to all of the programs, that information is discussed in the Student Aid Overview and is

not repeated here.

Distribution of Perkins Loans by Student Status and Income Levels: 

The tables below (structured to provide a common basis of comparison among the programs in 

the SFA account) show the distribution of Perkins loans to dependent students and the 

distribution of Perkins loans to independent students – both undergraduate and graduate – at 

various income levels in 2014-2015. These tables include the most recent distributional data 

available, which may not correspond directly with the data provided in the Program Output 

Measures section.

Distribution of Perkins to Dependent Undergraduates in 2014-15

Income Level Recipients Available Aid Average 

Award

0 - $5,999 23,782 $47,334,819 $1,990

$6,000 - $11,999 16,042 31,812,175 1,983

$12,000 - $23,999 49,071 96,992,334 1,977

$24,001 - $29,999 24,638 48,549,042 1,970

$30,000 + 237,183 477,494,686 2,013

Total Dependent 350,716 702,183,056 2,002

Distribution of Perkins to Independent Undergraduates and Graduates in 2014-15

Income Level Recipients Available Aid Average 

Award

0 - $ 1,999 23,731 $45,247,937 $1,907

$2,000 - $ 3,999 7,196 14,078,746 1,956

$4,000 - $ 7,999 13,839 26,793,511 1,936

$8,000 - $11,999 12,556 23,530,103 1,874

$12,000 - $15,999 9,763 17,848,861 1,828

$16,000 - $19,999 7,653 13,798,812 1,803

$20,000 + 29,117 53,579,111 1,840

Total 

Independent 103,855 194,877,081 1,876

Graduate Students 73,437 263,292,125 3,585

All Students 528,008 1,160,352,262 2,198
STUDENT FINANCIAL ASSISTANCE

Federal Perkins loans

O-41

Distribution of Perkins Loans by Type of Institution: 

The Perkins Loan program is a campus-based program and distribution of new capital funds to 

institutions is controlled by a statutory formula. The table below illustrates the sector distribution 

of Perkins loans to students in 2014-2015: 

Distribution of Perkins by Type of Institution in 2014-15

Institution 

Type Recipients Loan Volume

Average 

Award

Percent of 

Perkins Aid

Public 4-Year 264,814 $534,303,298 $2,018 46.0%

Public 2-Year 3,119 5,567,004 1,785 0.5

Private 236,251 592,980,434 2,510 51.1

Proprietary 23,824 27,501,526 1,154 2.4

Total 528,008 1,160,352,262 2,198 100.0

NOTE: Percentages may not total to 100 percent due to rounding.
STUDENT FINANCIAL ASSISTANCE

O-42

Iraq and Afghanistan service grants

(Higher Education Act of 1965, Title IV, Part A, Subpart 10)

(dollars in thousands)

FY 2018 Authorization: Indefinite 

Mandatory Budget Authority: 

2017 

Annualized CR

2017

Appropriation 2018 Change

$442 $442 $499 +$57

PROGRAM DESCRIPTION

The Iraq and Afghanistan Service Grants (IASG) program provides non-need-based grants to

students whose parent or guardian was a member of the Armed Forces who died in Iraq or 

Afghanistan as a result of performing military service after September 11, 2001. Students are 

not required to be eligible for a Pell Grant in order to receive a Service Grant; however, the 

student must be 24 years old or younger; or, if older than 24, must have been enrolled in an 

institution of higher education at the time of the parent or guardian’s death.

Service Grants are equal to the maximum Pell Grant for a given award year, which is $5,920 in 

the 2017-18 award year. However, due to sequestration, award amounts for any IASG that is 

first disbursed on or after Oct. 1, 2015, and before Oct. 1, 2016, are reduced by 6.8 percent 

from the award amount for which a recipient would otherwise have been entitled. Any award 

amounts for any IASG first disbursed on or after Oct. 1, 2016, and before Oct. 1, 2017, are

reduced by 6.9 percent. Award amounts are not expected to be affected by sequestration in FY 

2018. Service Grants are excluded from the total “estimated financial assistance” used to 

determine a student’s eligibility for other Title IV Federal financial aid. In combination with other 

student aid, however, the Service Grant may not result in a student’s awards exceeding their 

cost of attendance. As with Pell Grant eligibility, students are limited to 12 semesters of full-time 

enrollment.

Funding levels for the past 5 fiscal years were: 

Fiscal Year (dollars in thousands)

2013.............................................................. .....................$246

2014.............................................................. .......................294

2015.............................................................. .......................370

2016.............................................................. .......................384

2017.............................................................. .......................442

FY 2018 BUDGET PROPOSAL

The 2018 Budget includes mandatory funding for the Iraq and Afghanistan Service Grant

program in the amount of $499 million, an increase of $57 million from the 2017 Annualized CR

level. The Department of Education Appropriations Act, 2017, provided $442 million for this 
STUDENT FINANCIAL ASSISTANCE

Iraq and Afghanistan service grants

O-43

program. The first IASG recipient awards were given in award year 2010-2011 to fewer than 

1,000 recipients. The recipient level is expected to remain at fewer than 1,000 recipients 

through award year 2018-19.

PROGRAM OUTPUT MEASURES

(dollars in thousands)

Output Measures 2016

2017 

Annualized CR 2018

Recipients (1) (1) (1)

Aid available to students (dollars in 

thousands)2 $432 $484 $559

Maximum grant (whole dollars)3 $5,420 $5,512 $5,920

Average grant (whole dollars) $4,909 $4,990 $5,375

1 Recipients estimated to number fewer than 500.

2 Aid available is the amount of funding available for new IASG awards to students in any single academic 

year. This amount differs from budget authority because 1 fiscal year spans across 2 academic years. 

For instance, total aid available in fiscal year 2017 is comprised of portions of both academic year 2016-

17 (ending June 30) and 2017-18 (beginning July 1). 3 Maximum grant amounts for 2016 and 2017 reflect impact of sequestration. Sequestration is not 

expected in 2018.

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 2018 and 

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

Because the programs in the Student Financial Assistance account rely on the same 

performance data, when available, the Iraq and Afghanistan Service Grants performance 

measures, strategies, and program improvement activities will be discussed in the Student Aid 

Overview and not repeated here.
STUDENT FINANCIAL ASSISTANCE

Iraq and Afghanistan service grants

O-44

Distribution of Iraq and Afghanistan Service Grant Funds by Type of Institution: 

The data provided in the table below shows the distribution of Iraq and Afghanistan service 

grants to students attending different types of institutions in award year 2015-2016.

Distribution of IASG by Type of Institution in 2015-16

Institution 

Type Recipients Available Aid

Average 

Award

Percent of 

IASG Aid

Public 4-Year 25 $122,760 $4,918 33%

Public 2-Year 11 40,920 3,747 11

Private 38 193,440 5,061 52

Proprietary 4 14,880 3,815 4

Total 78 372,000 4,769 100

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