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Department of Education

STUDENT AID OVERVIEW

Fiscal Year 2014 Budget Request

CONTENTS

Page

FY 2014 Budget Proposal ....................................................................................................P-1

Student Aid Reform Proposals .............................................................................................P-3

Student Aid Programs Output Measures..............................................................................P-7

Program Performance Information .......................................................................................P-8
STUDENT AID OVERVIEW

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Federal Student Aid Programs

(Higher Education Act of 1965, Title IV)

(dollars in thousands)

FY 2014 Budget Proposal

FY 2014 Authorization: Indefinite

Budget Authority:1

2012 2013 2014

Change

from 2013

Grants and Work-Study:

Pell Grants

Discretionary funding 2 $22,824,000 $22,824,000 $22,824,000 0

Mandatory funding 3 18,745,000 12,441,184 7,044,000 -$5,397,184

Subtotal, Pell Grants 41,569,000 35,265,184 29,868,000 -5,397,184

Federal Supplemental Educational

Opportunity Grants 2 734,599 734,599 734,599 0

Federal Work-Study 2 976,682 976,682 1,126,682 +150,000

Iraq and Afghanistan Service Grants 180 248 231 -17

Teacher Education Assistance 4 34,447 3,536 191,418 +187,882

Total, Grants and Work-Study 43,314,908 36,980,249 31,920,930 -5,059,319

Net Loan Subsidy, Loans: 5

Federal Family Education Loans (FFEL) 6 -15,011,166 -6,843,641 -3,657,173 +3,186,468

Federal Direct Student Loans 7 -21,534,522 -34,292,290 -26,301,439 +7,990,851

Federal Perkins Loan Program 8 0 0 -1,408,498 -1,408,498

1 Table reflects discretionary appropriations and mandatory funding. 2 Excludes 0.612 percent across-the-board increase provided in P.L. 112-175. 3 Amounts appropriated for Pell Grants for 2012, 2013, and 2014 include mandatory funding provided by the FullYear Continuing Appropriations Act, 2011; the Consolidated Appropriations Act, 2012; and the Budget Control Act of 

2011.4 Includes funding for TEACH Grants for 2012, 2013, and part of 2014 (through June 30), as well as a request for 

$190,000 thousand for a new program, Presidential Teaching Fellows – which would replace TEACH Grants – in 

2014. For budget purposes, TEACH Grants is operated as a credit program. Amounts reflect the new loan subsidy, 

or the net present value of estimated future costs. 5 Total net subsidy in any fiscal year reflects the estimated net cost of the loan program for that fiscal year. It 

includes both positive and negative subsidies and upward and downward impacts of re-estimates and modifications 

of existing loans. A negative subsidy occurs when the present value of cash inflows to the Government is estimated 

to exceed the present value of cash outflows. Normally budget authority is not shown if it is negative. However, for 

informational purposes, the amounts here reflect estimated negative budget authority. Negative subsidy is reported 

(as negative outlays) to a negative subsidy receipt account. 6 Budget authority requested for FFEL does not include the FFEL Liquidating account. Amount for 2012 reflects 

a net downward re-estimate of $15,164,122 thousand, due primarily to updated interest rate assumptions; and a net 

upward modification of $152,957 thousand resulting from administrative action taken by the Department, and the 

change, as of April 1, 2012, that allows lenders the option to calculate their special allowance payments based on the 

London Interbank Offered Rate (LIBOR). Amount for 2013 reflects a net downward re-estimate of $6,843,641 

thousand, due primarily to updated interest rate assumptions. FY 2014 request includes a net downward modification 

of $3,657,173 thousand as a result of the proposed guaranty agency rehabilitated loan retention policy. 7 Amount for 2012 includes a net upward reestimate of $5,566,331 thousand, and amount for 2013 includes a net

downward re-estimate of $8,151,717 thousand, both due primarily to updated interest rate assumptions. FY 2014 

request includes a net upward modification of $2,871,258 thousand as a result of the proposed expansion of the Pay 

As You Earn plan. 8 Amount for 2014 reflects the Budget proposal to fund Perkins Loans as a mandatory credit program; the 

request shows the net present value of estimated future costs of the estimated 2014 loan cohort.
STUDENT AID OVERVIEW

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FY 2014 Budget Proposal

The Federal Government will provide a significant investment in fiscal year 2013 of $170.3

billion in grants, loans, and work-study assistance to help students pay for postsecondary 

education. These funds help millions of Americans obtain the benefits of a higher education. 

The Administration is proud of this commitment to higher education. However, fiscal constraints 

now limit the extent to which additional Federal resources are available to help students and 

families cope with unrelenting increases in the costs of higher education. To avoid leaving 

students and families with crippling debt in financing their education, a strategic approach to 

student aid is needed to ensure that both students and the Nation are prepared for the 

challenges we all face in the global economy. Accordingly, the fiscal year 2014 Budget includes

in its proposals, solutions addressing the college affordability challenge. The request dedicates

$182.9 billion to Federal student aid in fiscal year 2014, including $35.3 billion in Pell Grants and 

over $145 billion in student loans. Nearly 14.7 million students would be assisted in paying the 

cost of their postsecondary education at this level of available aid.

This overview details the package of reforms proposed by the Administration as part of its 2014

Budget to increase aid to students while improving the effectiveness of the grant and student 

loan programs. Current student aid programs are described in detail under Student Financial 

Assistance, beginning on page Q-1, Teacher Education Assistance Overview on page R-1, 

and the Student Loans Overview on page S-1. The administrative costs requested in support 

of these student aid programs are presented in the Student Aid Administration section, 

beginning on page AA-1.

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

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

with a postsecondary education, it ranks 14th in attainment among those aged 25-34. There is 

an opportunity gap as well. Today, high-school graduates from the wealthiest families are 

virtually certain to continue on to higher education, while just over half in the bottom quartile

attend. Even when high-school graduates can afford to begin higher education, they all too

often fail to finish. Only about six in ten college students graduate within 6 years; for lowincome students, the completion rate in the same time period is closer to 25 percent.

With a focus on the issue of college affordability – in accordance with the President’s vision of 

leading the world in college attainment rates by 2020 – the 2014 Budget provides sufficient 

resources to fully fund the $5,785 maximum Pell Grant award in the 2014-2015 award year;

reforms the student loan interest rate structure and provides an opportunity for more borrowers 

to benefit from expanded repayment options; increases the amount of aid made available to 

students under the campus-based aid programs and fundamentally reforms these programs to 

target aid to students attending those schools with a dedication to quality education at a 

reasonable price; and, rationalizes our programs for aspiring teachers by replacing the TEACH

grant program with a new, better-targeted teacher fellowship program, Presidential Teaching 

Fellows.

In addition to fully funding the Pell program in fiscal year 2014, this Budget also makes a down 

payment toward addressing the long-term Pell funding gap by including measures that will 

secure funding to maintain our critical investment in Pell Grants, while ensuring the prudent use 

of scarce taxpayer dollars. These measures include improving and expanding the Perkins Loan 
STUDENT AID OVERVIEW

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program and reducing the costs associated with providing defaulted loan borrowers 

opportunities to repair their credit standing. The savings associated with these proposals would 

offset corresponding increases in mandatory budget authority to reduce the future Pell funding 

gap. These important reforms will address the growing costs of the Pell Grant program while 

still ensuring that aid is available to the neediest college students. While this Budget provides 

for significant contributions toward addressing future Pell funding needs, the Administration is 

committed to working with Congress to ensure the long-term stability of this vital program.

Student Aid Reform Proposals

The 2014 Budget is designed to make needed reforms to modernize and improve the Federal 

student aid programs. The specifics of these reform proposals are discussed below.

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

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

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

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

Federal Work-Study and Federal Perkins Loan programs. While all schools are potentially 

eligible to participate in the campus-based aid programs, static or no Federal appropriations, 

coupled with antiquated formulas with stringent hold-harmless provisions, have resulted in 

institutions receiving allocations distorted in ways that reward schools for high tuition prices, 

bear little reflection to the population of Pell-eligible students attending the institutions, and fail 

to consider whether institutions are a good value for students. The President’s 2014 Budget 

proposes to reform and expand Federal allocations in the campus-based programs to 

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

students; offer relatively lower tuition prices and/or restrain tuition growth; and, offer quality 

education and training such that graduates obtain employment and can comfortably afford to 

repay educational debt.

Perkins Loan Program Modernization and Expansion

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

Loan program which would provide $8.5 billion in loans annually, allocating lending authority 

among institutions on the basis of the financial need of students attending an institution, the 

extent to which institutions produce Pell-eligible graduates, and the extent to which institutions 

offer lower tuition prices or high amounts of non-Federal grant aid. This reform would replace

the current program that is scheduled to terminate in 2014. When fully implemented, the new 

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

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

Rather than operating through institutional revolving funds, new Perkins Loans would be 

originated by institutions in the same manner as Federal Direct Student Loans; however, 

institutions would continue to have discretion with regard to student eligibility. By modernizing 

and expanding the program, many more students who need additional financing options would 

have increased access to loan funds that carry important protections and benefits, including the 

ability to repay through income-based repayment plans as well as access to the same loan 

forgiveness options available for Stafford loan borrowers.
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SEOG Allocation Formula Reform

Proposed reforms to the allocation formula for SEOG would redirect funding from higher-priced 

and well-endowed institutions to lower-priced public and private institutions that enroll and 

graduate higher numbers of Pell-eligible students and restrain tuition increases. Allocations to 

schools that fail to maintain a commitment to meeting these standards would be redistributed to 

better-performing institutions.

Expansion and Refocus of Federal Work-Study Program

To help students earn their way through college, and help put the Work-Study program on track 

to double the number of participants over 5 years, the Administration proposes to reform the 

allocation formula, and to provide $150 million in new funds for the Work-Study program, 

directed to institutions opting to participate in an enhanced Work-Study partnership with 

prospective employers. To increase students’ employment prospects, institutions would 

collaborate with employers to provide students with Work-Study opportunities that are 

meaningfully aligned with students’ academic programs and career aspirations.

Reform Student Loan Interest Rates to Better Reflect Current Economic Conditions

Student loans meet an important Administration strategic goal to help ensure the accessibility of 

higher education and to better prepare students and adults for employment and future learning. 

Students rely on low-cost Federal student loans to help close the gap between what their 

families can afford to pay and the cost of attendance (including tuition, fees, and room and 

board).

The Administration’s FY 2014 student loan budget request proposes to change the structure 

of interest rates on Federal student and parent loans to provide market-based rates for

new originations. Under the proposal, new rates for subsidized Stafford loans would be set 

equal to the 10-year Treasury note with an add-on of 0.93 percentage points (i.e., 93 basis 

points). The add-on to the 10-year Treasury note for Unsubsidized Stafford and PLUS loans 

would be 2.93 and 3.93 percentage points, respectively.

This proposal maintains the current policy of providing a lower interest rate on Subsidized 

Stafford loans, which are awarded based on the financial need of students and families, than on 

other Federal student and parent loans made regardless of need. The proposal does not 

include an interest rate cap, and the existing cap of 8.25 percent on new consolidation loans 

would be eliminated. However, interest rates would be fixed for the life of the loans and would 

not vary from year to year. When implemented, the new structure would operate much like the 

fixed-rate mortgage market, and borrower rates would better reflect and align with the Federal 

Government’s cost of borrowing and administering the program.

Rather than proposing a cap on the interest rate, the Administration’s budget request proposes 

extending the income-based Pay As You Earn repayment plan to all qualified student 

borrowers, regardless of when the borrower’s loans were made, as explained below.
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Expand the Pay As You Earn Repayment Plan to All Borrowers

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

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

Care and Education Reconciliation Act. Qualified borrowers – those who were new borrowers 

(with no outstanding loans) as of October 1, 2007 and had received a Direct Loan disbursement 

on or after October 1, 2011 – are eligible to have student loan payments capped at 10 percent 

of their prior-year discretionary income, and, to have any remaining balances forgiven after 20 

years of repayments.

The 2014 Budget proposes to expand the PAYE plan to all qualified borrowers beginning in

2014, regardless of when borrowers obtained their loans or became new borrowers. All 

Stafford, Grad PLUS, and Consolidation loans (that repaid Stafford and Grad PLUS loans) 

made under the Direct Loan or Federal Family Education Loan (FFEL) programs that are not in 

default are eligible to be included in the program. PAYE lowers monthly payments for 

borrowers who have high loan debt and modest incomes, and, compared with a cap on student 

loan interest rates, provides a more meaningful measure to help protect borrowers from 

unmanageable student loan repayments.

In extending the Pay As You Earn plan to all qualified borrowers, the Administration seeks not 

only to help borrowers manage student loan payments, but also to harmonize the various 

income-based repayment plans available, thereby simplifying borrowers’ experience while 

reducing program complexity. Coupled together, the Administration’s proposals to change the 

student loan interest rate structure and extend the Pay As You Earn repayment plan to all 

qualified borrowers is budget cost neutral – thereby providing a long-term, sustainable solution 

to ensure students have the certainty they need to plan for the cost of attending college in a 

fiscally-responsible manner.

Modify the FFEL Loan Rehabilitation Programs

The Budget proposes to reconfigure the FFEL loan rehabilitation program to reduce costs 

for both the Federal Government and borrowers. Under the proposal, the maximum 

collection fee guaranty agencies (GAs) may charge borrowers to rehabilitate their defaulted 

FFEL loans would be reduced from 18.5 percent of the outstanding principal and interest owed 

on the loan to 16 percent; and, GAs would be required to return 100 percent – rather than the 

current 81.5 percent – of the Federal default reinsurance payment it received when the borrower 

of the rehabilitated loan originally defaulted on the loan. Besides easing the financial burden on 

borrowers, the proposal to reduce the maximum collection fee charged to borrowers would 

make the compensation earned by GAs comparable to that earned by the Department’s private 

sector contractors who also rehabilitate defaulted FFEL and Direct Loan program loans.

In addition, GAs would be required to transfer rehabilitated loans to the Department if they are 

unable to find a FFEL lender to purchase the loan to complete the rehabilitation process. Under 

the proposal, the Department would compensate the GAs for the defaulted loan at par, thus 

eliminating the costs of any discount currently being funded by the agencies when loans are 

sold to lenders at less than par.
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Rationalize Programs for Aspiring Teachers

The TEACH Grant program (TEACH) provides awards up to $4,000 each year to undergraduate 

and graduate students who commit to teach a high-need subject, and to teach in a high-need 

school, for at least 4 years within 8 years of graduation. For students who fail to meet the 

service requirement, grants are converted to Direct Unsubsidized Stafford Loans. Under the 

current structure, any institution of higher education is eligible to receive funding to provide 

TEACH Grants irrespective of the quality of its teacher preparation program. In fact, 22 

institutions of higher education with teacher preparation programs that were identified by the 

State as low-performing or at-risk received funds to award TEACH Grants. Further, while 

TEACH aims to recruit and prepare effective teachers, data suggest a significant portion of 

TEACH Grant recipients will fail to graduate and complete their service requirement, much less 

prove to be effective in the classroom.

In order to enhance the likelihood that grant recipients will be well-prepared to enter and likely to 

persist in the teaching profession, the Administration proposes to overhaul and replace 

TEACH with the Presidential Teaching Fellows (PTF) program. PTF would provide formula 

aid directly to States that meet certain conditions to award scholarships of up to $10,000 to 

talented individuals attending the high quality preparation programs. Fellows will have to be 

trained to teach a high-need subject, such as mathematics or science, and commit to teach in a 

high-need school at least 3 out of 6 years after their fellowship begins.

To be eligible for funding, States would have to measure the effectiveness of their teacher 

preparation programs based on their graduates’ success in improving elementary and 

secondary student achievement, among other outcome measures; hold teacher preparation 

programs accountable for results; expand the field of effective providers including alternative 

routes to certification; and make career milestones like certification and licensure rigorous and 

meaningful. Funds are to be available on equal terms to traditional and alternative certification 

preparation programs.
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Student Aid Programs Output Measures

Aid Available to Students 1

($ in millions)

Student aid program 2012 2013 2014

Pell Grants $32,798 $33,728 $35,325

Supplemental Educational Opportunity Grants 982 982 982

Federal Work-Study 1,162 1,162 1,350

Iraq and Afghanistan Service Grants2 0 0 0

Presidential Teaching Fellows3 0 0 149

New Student Loans:

Stafford Loans 33,612 28,645 29,346

Unsubsidized Stafford Loans 53,888 59,186 62,729

PLUS Loans 17,851 18,602 19,987

Perkins Loans 857 857 857

Unsubsidized Perkins Loans 0 0 4,113

TEACH Grants4 111 116 87

Subtotal, New Student Loans5 106,319 107,406 117,119

Total 141,261 143,2796 154,925

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

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

funds, and institutional and State matching funds.

2 Aid available under the Iraq and Afghanistan Service Grants program is projected at $257,000, $225,000, and 

$268,000, respectively, for FYs 2012, 2013 and 2014. 3 The 2014 Budget request proposes to create the Presidential Teaching Fellows program, which would provide 

grants to States to fund scholarships for students planning to teach in high-need areas and high-need subjects. 4 For budget and financial management purposes, this program is operated as a loan program under the Federal 

Credit Reform Act of 1990. 5 Does not include loans issued to consolidate existing loans, which total $36,000 million in 2012, $27,000 million 

in 2013, and $27,900 million in 2014. 6 Excludes 0.612 percent across-the-board increase provided in P.L. 112-175.
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Number of Student Aid Awards

(in thousands)

Student aid program 2012 2013 2014

Pell Grants 8,965 9,171 9,373

Supplemental Educational Opportunity Grants 1,584 1,584 1,584

Federal Work-Study 697 697 809

Iraq and Afghanistan Service Grants 1 1 1

Presidential Teaching Fellows 0 0 15

New Student Loans:

Stafford Loans 9,911 8,941 9,153

Unsubsidized Stafford Loans 10,924 10,973 11,420

PLUS Loans 1,347 1,291 1,318

Perkins Loans 461 461 461

Unsubsidized Perkins Loans 0 0 751

TEACH Grants 37 39 30

Subtotal, New Student Loans 2 22,680 21,705 23,133

Total new awards 33,924 33,156 34,914

NOTE: Detail may not add to Total due to rounding. 1 Denotes number of recipients will be fewer than 1,000. 2 Does not include loans issued to consolidate existing loans.

Number of Postsecondary Students Aided by Department Student Aid Programs

Number of recipients 2012 2013 2014

Unduplicated Count (in thousands) 13,941 14,256 14,694

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 2014 and future years, as well as the resources and efforts invested by those served by 

this program.

Because Federal student assistance grant and loan programs rely on the same program data, 

performance indicators and strategies that apply to these programs are grouped here in the 
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Student Aid Overview. They are not repeated in justifications for the Student Financial 

Assistance, or Teacher Education Assistance Overview programs 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.

Targets and Performance Data

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

school.

Year Target: Total Percentage Enrolled Actual: Total Percentage Enrolled

2009 68.00 70.10

2010 68.00 68.10

2011 68.00 68.20

2012 68.00

2013 68.00

2014 TBD

Year

Target: Difference in the percentage of 

low- and high-income high school 

graduates ages 16-24 enrolling 

immediately in college

Actual: Difference in the percentage of 

low- and high-income high school 

graduates ages 16-24 enrolling 

immediately in college

2009 26.25 30.30

2010 26.00 31.50

2011 25.75 28.90

2012 25.50

2013 25.25

2014 TBD
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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. (Continued)

Targets and Performance Data

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

school.

Year

Target: Difference in the percentage of 

Black and White high school 

graduates ages 16-24 enrolling 

immediately in college

Actual: Difference in the percentage of 

Black and White high school 

graduates ages 16-24 enrolling 

immediately in college

2009 6.75 8.80

2010 6.50 4.00

2011 6.25 4.80

2012 6.00

2013 5.75

2014 TBD

Year

Target: Difference in the percentage of 

Hispanic and White high school 

graduates ages 16-24 enrolling 

immediately in college

Actual: Difference in the percentage of 

Hispanic and White high school 

graduates ages 16-24 enrolling 

immediately in college

2009 9.75 10.30

2010 9.50 7.80

2011 9.25 5.90

2012 9.00

2013 8.75

2014 TBD

Additional Information: Overall enrollment rates in postsecondary education following high 

school surpassed its goal metric for the fourth consecutive year (since 2008, not shown). 

Despite this, the difference between low- and high-income students who enrolled after high 

school has remained well above its target metric, although the gap closed somewhat between 

2010 and 2011 – from 31.5 to 28.9 percentage points. The Administration hopes that its focus 

on college affordability articulated through program change and support levels in the 2014

Budget will help these students have the financial means, and encourage them – and other 

students like them – to complete their academic training.
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Additional Information (continued): The sharp reduction in the difference between Black and 

White high school graduates enrolling in college immediately after high school that occurred in 

2010 – when it dropped from 8.8 to 4.0 percentage points – was maintained in 2011 (at 4.8 

percentage points). The difference in the equivalent statistic for Hispanics of any race and 

White non-Hispanic students has decreased dramatically over the last 3 years, from 10.3 

percentage points in 2009, to 7.8 in 2010, and finally to 5.9 in 2011. Both measures surpassed 

their target metrics in both 2010 and 2011, and the difference between Hispanics of any race 

and White non-Hispanics surpassed its target in 2009, as well.

Data on these measures is collected through the Graduation Rate Survey (GRS) conducted as 

part of the annual Integrated Postsecondary Student Aid Study (IPEDS). Fiscal year 2012 data 

will be available in early 2014.
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Objective: Ensure that more students will persist in postsecondary education and attain 

degrees and certificates.

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

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

minority and non-minority students will decrease.

Targets and Performance Data

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

normal time required.

Year

Target: Students completing a 

4-year degree 

Actual: Students completing a 

4-year degree

2009 59.00 57.40

2010 60.00 58.30

2011 61.00

2012 62.00

2013 63.00

2014 TBD

Year

Target: Students completing a less 

than 4-year degree

Actual: Students completing a less 

than 4-year degree

2009 39.00 29.20

2010 40.00 29.90

2011 41.00

2012 42.00

2013 43.00

2014 TBD
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Measure: Graduation rate: Graduation rates for all first-time, full-time, degree-seeking students 

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

minority and non-minority students will decrease.

Targets and Performance Data

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

normal time required.

Year

Target: Difference in the percentage of 

Black and White first-time, full-time 

students completing a 4-year degree 

within 150 percent of the normal time 

required

Actual: Difference in the percentage of 

Black and White first-time, full-time 

students completing a 4-year degree 

within 150 percent of the normal time 

required

2009 17.50 21.70

2010 17.00 22.00

2011 16.70

2012 16.50

2013 16.25

2014 TBD

Year

Target: Difference in the percentage of 

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

degree within 150 percent of the normal 

time required

Actual: Difference in the percentage of 

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

degree within 150 percent of the normal 

time required

2009 11.00 12.10

2010 10.50 11.40

2011 10.00

2012 9.50

2013 9.00

2014 TBD
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Measure: Graduation rate: Graduation rates for all first-time, full-time, degree-seeking students 

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

minority and non-minority students will decrease.

Targets and Performance Data

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

normal time required.

Year

Target: Difference in the percentage of 

Black and White first-time, full-time 

students completing a less than

4-year program within 150 percent of 

the normal time required

Actual: Difference in the percentage of 

Black and White first-time, full-time 

students completing a less than

4-year program within 150 percent of 

the normal time required

2008 6.10 5.90

2009 6.00 4.80

2010 5.80 4.20

2011 5.70

2012 5.50

2013 TBD

Year

Target: Difference in the percentage of 

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

4-year program within 150 percent of 

the normal time required

Actual: Difference in the percentage of 

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

4-year program within 150 percent of 

the normal time required

2008 1.70 2.80

2009 1.50 1.50

2010 1.30 3.90

2011 1.10

2012 1.00

2013 TBD

Additional Information: From 2009 to 2010, there were slight increases to overall completion 

rates within 150 percent of the normal time for both 4-year (from 57.4 to 58.3 percent) and less 

than 4-year (from 29.2 to 29.9 percent) degree programs. Additionally, there was a decrease in 

the completion rate gaps between Hispanic and White students at 4-year degree programs (0.7 

percent), and between Black and White students at less than 4-year degree programs (0.6 

percent).
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Additional Information (continued): In fact, in both 2009 and 2010, Hispanic students 

completed degree programs within 150 percent of the normal time at less than 4-year programs 

at a higher rate than White students (30.8 to 29.3 percent in 2009; 33.4 to 29.5 percent in 2010). 

(Digest of Education Statistics 2011, Table 345)

The difference between Black and White students at 4-year degree programs increased 

somewhat (from 21.7 to 22.0 percent). The gap in completion rates for Hispanics and White 

non-Hispanics at less than 4-year programs was higher, increasing from 1.5 to 3.9 percent. 

This contrasts with the slight increase in Hispanic completion rates at 4-year programs. The 

Department is reassessing out-year targets for some measures based on prior year data.

Data on these measures is collected through the Graduation Rate Survey (GRS) conducted as 

part of the annual Integrated Postsecondary Student Aid Study (IPEDS). Fiscal year 2011 data 

will be available in early 2013.

Program Improvement Efforts

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

will support program-specific measures, as well as provide reliable indicators of program 

effectiveness. The fiscal year 2014 Budget includes funds under the Institute of Education 

Sciences to help States develop student-level data that could support the development of these 

measures for the student aid programs. The Budget also includes $67 million in new funds for 

research and development to investigate the effectiveness of a dual enrollment proposal in the 

Federal student aid programs, which would enable students to earn college credit while still in 

high school, and $9 million for the Office of Federal Student Aid to improve data collection in the 

National Student Loan Data System.

Efficiency Measures

The Department is reassessing the appropriate 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.