Department of Education

STUDENT AID OVERVIEW

Fiscal Year 2017 Budget Request

CONTENTS

Page

Federal Student Aid Programs ................................................................................................N-1

Student Aid Reform Proposals ................................................................................................N-3

Student Aid Programs Output Measures.................................................................................N-9

Program Performance Information ........................................................................................N-11

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STUDENT AID OVERVIEW

Federal Student Aid Programs

(Higher Education Act of 1965, Title IV)

(dollars in thousands)

FY 2017 Authorization: Indefinite

Budget Authority:

Period of fund availability: 

2016 Footnote 2017 Footnote ChangeFootnote

Grants and Work Study:

Pell Grants

Pell GrantDiscretionary funding $22,475,352 $22,475,352 0

Pell GrantMandatory funding 5,804,4411 7,629,0001,2+$1,824,449

Subtotal, Pell Grants 28,279,793 30,104,352 +1,824,449

Federal Supplemental Educational 

Opportunity Grants 733,130 733,130 0

Federal Work Study 989,728 989,728 0

Iraq and Afghanistan Service 

Grants 453 02 -453

TEACH Grants 12,4123 12,3063 -106

 Total, Grants and Work-Study 1,735,723 1,735,164 -599

Net Loan Subsidy, Loans4

Federal Family Education Loans 

(FFEL) -1,074,6905 0 +1,074,690

Federal Direct Student Loans -671,6276-8,292,464 -7,620,837

Federal Perkins Loan Program 0 -640,312 -640,3127

NOTE: Table reflects discretionary and mandatory funding.

1

Amounts appropriated for Pell Grants for 2016 and 2017 include mandatory funding provided in the Higher 

Education Act, as amended, to fund both the base maximum award and add-on award. 2

Reflects Budget policy to move the Iraq and Afghanistan Service Grant program into the Pell Grant program. 3

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

of estimated future costs. 4

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. Negative subsidy is reported (as negative outlays) to a negative 

subsidy receipt account. 5

Budget authority for FFEL does not include the FFEL Liquidating account. Amount for 2016 reflects a net 

downward reestimate of $1,226,278 thousand due primarily to updated deferment assumptions. 6

Amount for 2016 includes a net upward reestimate of $7,693,290 thousand, primarily due to updated interest 

rate assumptions and changes to the income-driven repayment model and plans. 7

Amount for 2017 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 2017 loan cohort.

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STUDENT AID OVERVIEW

FY 2017 BUDGET PROPOSAL

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

students afford a postsecondary education, which is one of the most important investments 

America can make in its future. These funds enable millions of Americans to obtain the 

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

and historic investments in higher education. Since 2009, the Administration has increased the 

maximum Pell Grant by more than $1,000, and created the American Opportunity Tax Credit, 

worth $10,000 over 4 years of college. It has cut student loan interest rates, saving students up 

to $1,000 this year, and allowed more borrowers to cap their loan payments at 10 percent of 

their income through the President’s Pay As You Earn and related income-driven repayment 

plans.

The 2017 Budget continues on the path of helping ensure that students can attain a 

postsecondary credential without taking on more debt than they and their families can afford. It 

also supports an ongoing shift toward focusing on improving student outcomes in higher 

education so that both students and the Nation can thrive in the global economy. Accordingly, 

the fiscal year 2017 Budget includes proposals to address college access, affordability, and

completion.

The request dedicates $188.1 billion to Federal student aid in fiscal year 2017, including 

$31 billion to Pell Grants and over $155 billion to student loans. More than 12 million students 

will use these resources in their efforts to complete college. In addition, the Administration is 

proposing new student supports and incentives that will help students to accelerate progress 

toward their degrees by attending school year-round and encourage students to take more 

credits per term, increasing their likelihood of on-time completion. Pell for Accelerated 

Completion restores year-round Pell Grant eligibility for full-time students who accelerate their 

completion and an additional $300 On-Track Pell Bonus to students who take 15 credits per 

semester, the course load typically required for on-time completion.

The request also expands the Administration’s landmark initiative, America’s College Promise

(ACP)—which would support 2 years of free community college for responsible students who 

get good grades and stay on track to graduate. The ACP would also provide 2 years of college 

for new low-income students at 4-year Historically Black Colleges and Universities (HBCUs) and 

Minority-Serving Institutions (MSIs), including community college transfers, at zero or 

significantly reduced tuition. The Administration is also re-proposing other key initiatives, 

including simplifying the FAFSA, permanently extending the annual inflationary increase in the 

maximum Pell grant award, as well as rewarding colleges that successfully enroll and graduate 

a significant number of low-income students on time and encouraging all institutions to improve 

their performance.

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

will not only increase aid to students, but also improve student success. Current student aid 

programs are described in detail under the Student Financial Assistance account, the TEACH 

Grants account, and the Student Loans Overview. The administrative costs associated with 

the student aid programs are presented in the Student Aid Administration account. 

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

are discussed in the Higher Education account.

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

advantage has slipped. According to the Organisation for Economic Co-operation and 

Development (OECD) in its annual “Education at a Glance,” the U.S. ranks 6th among OECD

and partner countries in terms of the proportion of 25–64 year olds with postsecondary 

attainment, but ranks 13th in the same category among those aged 25–34. There is a significant 

opportunity gap as well. While half of Americans from high-income families hold a bachelor’s 

degree by age 25, just 1 in 10 people from low-income families attain that level of education. 

Moreover, regardless of income status, high-school graduates that enroll in college too often fail 

to finish: barely half will complete their degree in a reasonable time at 4-year institutions; and at 

2-year schools it’s only about a third.

Student Aid Reform Proposals

In remarks provided by then-Secretary Arne Duncan in July 2015, at the University of Maryland, 

Baltimore County, the Administration doubled down on its efforts toward a new higher education 

focus on degree completion, in addition to college access and affordability. Citing the fact that 

borrowers who drop out of college face a three times greater risk of defaulting on their student 

loans compared with those who graduate, he stated that “we must shift incentives at every level 

to focus on student success, not just on access.” 

In line with this call, the 2017 Budget proposes key reforms to make that vision a reality by 

providing institutional and student supports and incentives for on-time and accelerated degree 

attainment, making college more affordable, student aid more accessible, and student loan 

repayment easier, as well as protecting students and taxpayers.

Promoting College Completion

Pell for Accelerated Completion

Currently, full-time students who want to accelerate their studies, but exhaust their Pell Grant 

eligibility during an award year, are unable to receive Pell aid for additional coursework during 

an institution’s academic calendar—such as a summer semester. The Budget proposes to 

reinstate year-round Pell Grant eligibility, allowing students the opportunity to earn a 

third semester of Pell Grant funding during an academic year if they have already 

completed a full-time course load of 24 credit hours. Eligible students will be able to receive up 

to 150 percent of their regular Pell Grant award, allowing students to complete their degrees on 

time or faster.

On-Track Pell Bonus

Under current law, a student who is enrolled in 12 credit hours (or the equivalent) during a term 

is considered full-time for Federal student aid purposes and is eligible for a maximum Pell grant. 

Assuming two standard terms during a Pell Grant award year, students pursuing a 2-year/4-year 

degree and enrolled at 12 credit hours per term cannot graduate within 2/4 years and those who 

take more credits within the same academic year cannot obtain more Pell aid. To bolster 

incentives for students to complete on-time, the Budget proposes to provide an additional 

$300 Pell bonus award, effectively increasing the Pell Grant maximum award to $6,235 for 

recipients who take 15 credit hours per semester in an academic year. Finishing on-time or 

faster means more students will complete their education at a lower cost and likely with less 

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STUDENT AID OVERVIEW

student debt. The Budget also proposes to strengthen academic progress requirements in the 

Pell Grant program to encourage students to complete their studies on time.

College Opportunity and Graduation Bonus

The proposed College Opportunity and Graduation Bonus will provide grants to reward 

colleges that successfully enroll and graduate a significant number of low-income students 

on time and encourage all institutions to improve their performance.

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

Some of the roughly 6,500 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, 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 hold-harmless 

provisions have resulted in institutions receiving allocations that reward them for high tuition 

prices, do not reflect the population of Pell-eligible students attending the institutions, and fail to 

consider whether the institutions are a good value for students. The President’s 2017 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.

Making College More Affordable and Accessible

America’s College Promise

America’s College Promise will help 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. This proposed grant program will provide funding to States that agree to waive tuition 

and fees for responsible students in high-quality programs at community colleges, 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. America’s College Promise will also provide grants to 4-year HBCUs and 

MSIs to offer new low-income students, including community college transfers, with up to 

2 years of college at zero or significantly reduced tuition. 

The Budget would provide $61 billion in mandatory outlays 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) participating 

community colleges, HBCUs, and MSIs must adopt promising and evidence-based institutional 

reforms to improve student outcomes; and, 3) students must take responsibility for their 

education, attend at least half-time, earn good grades, and stay on track to graduate

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STUDENT AID OVERVIEW

Protecting Pell Grants

Pell Grants are considered to be the foundation of a student’s financial aid package, to which 

other forms of aid are added. This Budget would fully fund the Pell program in 2017, with a 

maximum award of $5,935 in award year 2017–2018 (effectively $6,235 for those taking 

15 credit hours per semester), and protect the value of Pell Grants from eroding due to the 

expiration of indexing set to occur in award year 2018-19 and beyond. To this end, the Budget 

proposes to continue indexing the Pell Grant program permanently for inflation. The 

Budget also proposes moving the Iraq and Afghanistan Service Grant program into the Pell 

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

veterans’ children receive a full, non-sequestered aid award.

Second Chance Pell

The Budget proposes to reinstate access to Pell Grant aid for eligible incarcerated students in 

Federal and State penal institutions. Under this proposal, incarcerated individuals who 

otherwise meet Title IV eligibility requirements and are eligible for release could access Pell 

Grants to pursue postsecondary education and training. Research published in 2013 from the 

RAND Corporation titled “Evaluating the Effectiveness of Correctional Education” suggests that 

inmates who participate in correctional education programs have (1) lower odds (43 percent) of 

recidivating and (2) higher odds (13 percent) of obtaining employment post-release than those 

who do not participate in correctional education. This proposal will increase access to highquality educational opportunities and help incarcerated individuals successfully transition 

out of prison with the goals of helping them get jobs, support their families, turn their 

lives around, and strengthen their communities.

FAFSA Simplification

The Department of Education has taken administrative steps to 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, one third of the time it took 

7 years ago. Moreover, among 2014-2015 applicants that had filed their taxes, 58 percent of 

independent students and 46 percent of parents of dependent students, or over 6 million 

students and parents, had used the IRS Data Retrieval Tool (DRT), which allows students and 

parents to access and automatically transfer their IRS tax return information into the FAFSA.

In September 2015, President Obama announced significant changes in the process for filing 

FAFSAs starting in the 2017-2018 award year. Applicants will be able to access and submit the 

FAFSA for the 2017-2018 award year starting in October 2016, 3 months earlier than the 

current process would allow. In addition, applicants will submit “prior-prior” income information, 

meaning that 2015 income information, already available in October through the data retrieval 

tool, will be used to inform aid decisions for the 2017 award year. Both of these changes will 

streamline the student aid process and provide families with an earlier picture of their aid 

eligibility.

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STUDENT AID OVERVIEW

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. The FAFSA could be made more 

understandable and easier for applicants to complete by removing data elements pertaining to 

assets and additional types of income, and by relying primarily on information readily available 

in Federal tax returns. That is why the President’s 2017 Budget proposes additional and 

significant FAFSA simplification by removing questions regarding savings, investments, and 

net worth, which rarely affect the actual aid award but significantly lengthen the application for 

some families. 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.

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 new program

would replace the current program, which was recently reauthorized through the end of 

September 2017, and would be in effect for the 2017-18 school year. 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 2,900 

postsecondary institutions. 

The Department would administer the new Perkins Loan program as a direct loan program;

however, institutions would continue to have discretion over awarding aid to students.

Modernizing and expanding the program would give more students increased access to Federal

student loans that carry important protections and benefits, including income-based repayment 

plans and loan forgiveness options.

Making Student Loan Repayment Easier

Reform and Streamline Repayment Plan Options

Since President Obama took office, the Administration has improved and expanded the 

protections of income-based repayment plans through both legislative changes and 

administrative actions. Today, all existing Direct Loan student borrowers can limit the amount of 

their loan payments to 10 percent of their income, and those payments are limited to 20 years 

(25 years for some graduate borrowers).

In addition, the Office of Federal Student Aid has conducted, and continues to implement, 

significant outreach efforts to inform student loan borrowers of their repayment options, 

including the protections of Pay As You Earn (PAYE) and related repayment plans. This effort 

has paid off—participation in income-based repayment plans has more than doubled over the 

past 2 years. 

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STUDENT AID OVERVIEW

Despite these efforts, choosing and enrolling in the right repayment plan is complicated by the 

numerous repayment plans authorized and required by law to be offered to borrowers. Thus, 

the Administration continues to seek to work with Congress to create a single, simple, and 

better targeted income-driven repayment plan. 

The 2017 Budget would reform and streamline PAYE and related repayment plans to 

ensure that program benefits are better targeted and safeguard the program for the future 

by protecting against institutional practices that may further increase student 

indebtedness. The proposal would create a single PAYE plan for loans originated on or after 

July 1, 2017, similar to the Revised PAYE (REPAYE) plan. 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, 2017, would continue to be able to select among the existing 

repayment plans for loans borrowed to fund their current course of study, though loans they 

borrow for future degrees would be under the new terms. A single PAYE plan would:

• Calculate loan payments at 10 percent of discretionary income, and eliminate the standard 

repayment cap, requiring high-income, high-balance borrowers to pay an equitable share of 

their earnings as their incomes rise;

• Forgive the remaining loan balance after 20 years of qualifying payments for borrowers with 

only undergraduate debt, and after 25 years for borrowers with graduate debt, to ensure that 

high-debt graduate borrowers, who may have higher incomes later in the repayment period, 

are more likely to repay their debts;

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

Adjusted Gross Income to ensure that married couples’ payments are based on their true 

ability to pay;

• 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; 

• Cap Public Sector Loan Forgiveness (PSLF) at $57,500 to protect against institutional 

practices that may further increase student indebtedness, while ensuring the program 

provides generous relief for students committed to public service; and

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

toward PSLF to prevent gaming of repayment amounts as an individual’s earnings rise.

Strengthen and Streamline Teacher Loan Forgiveness 

The Administration is committed to ensuring that all students, especially those in high-need 

schools, have access to effective teachers. To meet this commitment, we must attract more 

talented people into the teaching profession, and reward them for the hard, daily work of 

improving student learning outcomes in our lowest-performing schools.

The Budget proposes to expand and increase teacher loan forgiveness, starting in 2021. This 

proposal would simplify existing postsecondary assistance available to teachers, such as 

TEACH grants and the current teacher loan forgiveness program, by consolidating them into a 

single, more generous loan forgiveness program, incentivizing more individuals to teach in our 

neediest schools and encouraging them to stay on the job.

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STUDENT AID OVERVIEW

Current programs have either entirely back-loaded benefits (teachers are eligible for a lump sum 

forgiveness after 5 years of teaching) or entirely front-loaded benefits (grants that may convert 

to loans if students fail to fulfill a 4-year teaching requirement) and have proved insufficient to 

incentivize individuals to join and remain in the teaching profession.

The new program would reward teachers in high-need schools with forgiveness up to $10,000, 

while those who graduated from effective teacher preparation programs, as determined by 

States, would be eligible to receive up to $25,000. This new program would also reward job 

retention by forgiving increasing shares of student loan balances, awarded at 10 percent per 

year for teachers starting years 2-3, 20 percent for starting years 4-5, and 40 percent for starting 

year 6.

Protect Students and Taxpayers

The Budget proposes several reforms aimed at ensuring student aid dollars are spent prudently. 

The Budget proposes to include all Federal educational aid programs, including Department of 

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

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

institutions. This proposal will discourage aggressive, and sometimes predatory and deceptive, 

marketing and recruitment of veterans and servicemembers who receive non-Title IV 

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

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

the budget proposes to revert the 90 percent benchmark back to the original 85 percent in the 

calculation. The intent of this requirement is simple: quality for-profit institutions should be able 

to secure funding that is not solely from the Federal Government and show that they are able to 

bring in paying customers willing to spend their own funds. The Budget also will prevent 

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

any academic credits.

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STUDENT AID OVERVIEW

STUDENT AID PROGRAMS OUTPUT MEASURES

Aid Available to Students

(dollars in millions)

Output Measures 2015Footnote2016Footnote2017Footnote

Pell Grants $28,529 $28,283 $30,9751

Supplemental Educational Opportunity 

Grants 925 925 925

Federal Work Study 1,125 1,125 1,125

Iraq and Afghanistan Service Grants 0.410 0.477 02

New Student Loans:

 Stafford Loans New 23,658 23,162 23,507

 Unsubsidized Stafford Loans New 51,583 52,457 55,483

 Parent PLUS Loans New 11,372 12,133 12,812

 Grad PLUS Loans New 8,591 9,166 9,834

 Perkins Loans New 1,172 872 872

 Unsubsidized Perkins Loans New 0 0 4,113

 TEACH Grants3 New 87 88 96

 Subtotal, New Student Loans 96,463497,8784106,7174

 Total 127,043 128,212 139,744

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

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.

1

Aid available for the Iraq and Afghanistan Service Grant (IASG) program is displayed as part of the Pell Grant 

program, reflecting Budget policy to move IASG into the Pell Grant program. 2

Aid available under the IASG program is projected at $0.572 million for fiscal year 2017. 3

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

Credit Reform Act of 1990. 4

Excludes loans issued to consolidate existing loans (Consolidation Loans), which total $45,967 million in 2015, 

$48,841 million in 2016, and $48,420 million in 2017.

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STUDENT AID OVERVIEW

Number of Student Aid Awards

(in thousands)

Output Measures 2015Footnote 2016Footnote 2017Footnote

Pell Grants 7,670 7,679 7,719

Supplemental Educational Opportunity 

Grants 1,547 1,547 1,547

Federal Work-Study 674 674 674

Iraq and Afghanistan Service Grants N/A1N/A1N/A1

New Student Loans:

 Stafford Loans New 7,297 7,068 7,157

 Unsubsidized Stafford Loans New 9,191 9,105 9,454

 Parent PLUS Loans New 900 958 990

 Grad PLUS Loans New 522 546 574

 Perkins Loans New 539 401 401

 Unsubsidized Perkins Loans New 0 0 714

 TEACH Grants New 30 31 31

 Subtotal, New Student Loans 18,480218,109219,3222

 Total 28,370 28,009 29,261

NOTE: Detail may not add to Total due to rounding.

1

N/A denotes number of recipients will not exceed 1,000. 2

Excludes loans issued to consolidate existing loans.

Number of Postsecondary Students Aided by Department Student 

Aid Programs

Count 2015 2016 2017

Unduplicated Count (in thousands) 11,974 11,833 12,078

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STUDENT AID OVERVIEW

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 2017 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 

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 help ensure access to high-quality postsecondary education by providing 

financial aid in the form of grants, loans, and work-study in an efficient, financially 

sound, and customer-responsive manner.

Objective: Ensure that low- and 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.

Submeasure: The percentage of high school graduates ages 16-24 enrolling immediately in 

college following high school.

Year

Target: Total Percentage 

Enrolled

Actual: Total Percentage 

Enrolled

2012 68% 68.2%

2013 68 66.2

2014 68

2015 68

2016 68

2017 68

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STUDENT AID OVERVIEW

Year

Target: Percentage point 

difference between highincome and low-income high 

school graduates ages 16-24 

enrolling immediately in college

Actual: Percentage point 

difference between highincome and low-income high 

school graduates ages 16-24 

enrolling in college

2012 25.75% 29.80%

2013 25.25 33.00

2014 25.00

2015 24.75

2016 24.50

2017 24.50

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.

Submeasure: The percentage of high school graduates ages 16-24 enrolling immediately in 

college following high school.

Year

Target: Percentage point 

difference between White and 

Black high school graduates 

ages 16-24 enrolling 

immediately in college

Actual: Percentage point 

difference between White and 

Black high school graduates 

ages 16-24 enrolling 

immediately in college

2012 6.25% 9.30%

2013 6.00 12.30

2014 5.75

2015 5.50

2016 5.25

2017 5.25

Year

Target: Percentage point 

difference between White and 

Hispanic high school graduates 

ages 16-24 enrolling 

immediately in college

Actual: Percentage point 

difference between White and 

Hispanic high school graduates 

ages 16-24 enrolling 

immediately in college

2012 9.00% 4.60%

2013 8.75 9.00

2014 8.50

2015 8.25

2016 8.00

2017 8.00

Additional information: In 2013, the overall enrollment rate in postsecondary education 

following high school fell slightly below the target goal of 68.0 percent, to 65.9 percent. In 2011, 

this metric slightly exceeded its goal, but has since declined for 2 consecutive years. The gap 

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

grew slightly in 2013 by 3.2 percentage points, while exceeding the target goal of 

25.5 percentage points by 7.75 percentage points. The Department believes its commitment to 

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the Student Financial Assistance programs will continue to encourage and allow more lowincome students to enroll in college—and provide them the means to remain in school—than 

would be the case in the absence of the Federal student financial assistance programs.

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

high school continued to increase in 2013 when compared to the previous year, and 

consequently, continued to exceed the declining target goal for 2013. In 2013, 68.8 percent of 

White students enrolled in college immediately after high school, as compared to 56.5 percent 

of Black students. This gap of 12.3 percentage points is higher than the 9.0 percentage points 

observed in 2012. 

Similarly, the gap between White and non-White Hispanic high school graduates who enroll 

immediately in college continued to increase in 2013. In 2012, the gap was 4.60 percentage 

points and well below the target of 9.00 percentage points; in 2013, the gap was 9 percentage 

points and only slightly higher than the target goal of 8.75 percentage points. The Department

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 2014 data will be available in early 

2016.

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

degrees and certificates.

Measure: Graduation rate: Graduation rates for all full-time, degree-seeking students in 4-year 

and less than 4-year programs will improve, while the gap in graduation rates between minority 

and non-minority students will decrease.

Submeasure: The percentage of first-time, full-time degree seeking students graduating within 

150 percent of the normal time required.

Year

Target: Students graduating 

with a 4-year degree within 

150 percent of the normal time 

required

Actual: Students graduating 

with a 4-year degree within 

150 percent of the normal time 

required

2012 62% 59.2%

2013 63 59.0

2014 64

2015 65

2016 66

2017 66

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STUDENT AID OVERVIEW

Year

Target: Students graduating 

with a less-than-4-year degree

within 150 percent of the 

normal time required

Actual: Students graduating 

with a less-than-4-year degree

within 150 percent of the 

normal time required

2012 42% 31%

2013 43 29

2014 44

2015 45

2016 46

2017 46

Measure: Graduation rate: Graduation rates for all full-time, degree-seeking students in 4-year 

and less than 4-year programs will improve, while the gap in graduation rates between minority 

and non-minority students will decrease.

Submeasure: The percentage of first-time, full-time degree seeking students graduating within 

150 percent of the normal time required.

Year

Target: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a 4-

year degree within 150 percent 

of the normal time required

Actual: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a 4-

year degree within 150 percent 

of the normal time required

2012 16.5% 22.3%

2013 16.2 22.9

2014 16.0

2015 15.8

2016 15.6

2017 15.6

Year

Target: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a 4-

year degree within 150 percent 

of the normal time required

Actual: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a 4-

year degree within 150 percent 

of the normal time required

2012 9.5% 10.7%

2013 9.0 11.3

2014 8.7

2015 8.6

2016 8.5

2017 8.5

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 graduation rates between 

minority and non-minority students will decrease.

N-14
STUDENT AID OVERVIEW

Submeasure: The percentage of first-time, full-time degree seeking students graduating within 

150 percent of the normal time required.

Year

Target: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a less 

–than-4-year degree within 

150 percent of the normal time 

required

Actual: Percentage point 

difference between White and 

Black first-time, full-time 

students graduating with a less 

–than-4-year degree within 

150 percent of the normal time 

required

2012 5.5% 3.8%

2013 5.4 6.2

2014 5.3

2015 5.2

2016 5.1

2017 5.1

Year

Target: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a less 

–than-4-year degree within 

150 percent of the normal time 

required

Actual: Percentage point 

difference between White and 

Hispanic first-time, full-time 

students graduating with a less 

–than-4-year degree within 

150 percent of the normal time 

required

2012 1.0% -6.3%

2013 0.9 -3.9

2014 0.8

2015 0.8

2016 0.7

2017 0.7

Additional Information: The percentage of first-time, full-time degree-seeking students 

graduating with a 4-year degree within 150 percent of the normal time slightly decreased from 

59.2 percent in 2012 to 59 percent in 2013. Similarly, the percentage for students completing a 

less-than-4-year degree decreased from 31 percent in 2012 to 29 percent in 2013. The 

graduation rates for both 2-and-4-year degree levels observed in 2013 were below the target 

goals established for this measure.

Changes from 2012 to 2013 in the completion gaps for 4-year degree programs between White 

and Black students and between White non-Hispanic and Hispanic students were very minimal 

(less than 1 percentage point). The gaps observed in 2013 for both comparison groups, 

however, remain larger than the target goals established in 2013 and future years. 

From 2012 to 2013, the difference between the percentages of White and Black students at 

less-than-4-year degree programs increased by 2.4 percentage points to 6.2 percentage 

points—outside of the goal of 5.4 percentage points. In both 2012 and 2013, 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 non-Hispanic students (36.4 compared to 30.2 percent in 

N-15
STUDENT AID OVERVIEW

2012 and 36.1 to 32.2 percent in 2013). The target for this goal has been met in each of the last 

3 years.

Data for the measures supporting this objective are collected through the Graduation Rate 

Survey (GRS) conducted as part of the annual Integrated Postsecondary Student Aid Study 

(IPEDS). Fiscal year 2014 data will be available in early 2016. The Department will continue to 

evaluate current performance measures and, where appropriate, revise these measures and 

goals.

Program Improvement Efforts

The Department is exploring ways to gather detailed program and student outcome data for

program-specific measures that will provide reliable indicators of program effectiveness.

Efficiency Measures

The Department is reassessing the efficiency measures for the individual student financial aid 

programs. The results of this reassessment will reflect proposed program changes and be 

incorporated into future budget requests.

N-16