    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of Education]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 395]]

                             DEPARTMENT OF EDUCATION

                  OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

                                  Federal Funds

    General and special funds:

                                Education Reform

        For carrying out activities authorized by the Goals 2000: Educate
    America Act and the School-to-Work Opportunities Act, $691,000,000, of
    which $476,000,000 for the Goals 2000: Educate America Act and
    $200,000,000 for the School-to-Work Opportunities Act shall become
    available on July 1, 1997, and remain available through September 30,
    1998.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0500-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Goals 2000:

    00.01   State and local education
              systemic improvement..........         221         479         476
    00.02   Parental assistance.............          10          10          15
                                               ---------   ---------  ----------

    00.91   Subtotal, Goals 2000............         231         489         491
    01.01 School-to-work opportunities......          63         190         200
                                               ---------   ---------  ----------

    10.00   Total obligations...............         294         679         691
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          56         265
    22.00 New budget authority (gross)......         494         414         691
    22.20 Unobligated balance transferred...          10
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         559         679         691
    23.95 New obligations...................        -294        -679        -691
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         265
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         494         414         691
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          89         322         494
    73.10 New obligations...................         294         679         691
    73.20 Total outlays (gross).............         -61        -507        -473
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         322         494         712
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           6          50          83
    86.93 Outlays from current balances.....          55         457         391
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          61         507         473
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         494         414         691
    90.00 Outlays...........................          61         507         473
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................         494         414         691
      Outlays...........................          61         507         474
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                     257
      Outlays...........................                      31         175
                                        ------------------------------------
    Total:
      Budget Authority..................         494         671         691
      Outlays...........................          61         538         649
                                        ====================================

        Funds help States and localities undertake comprehensive systemic
    education reform and create State and local systems of school-to-work
    transition for students.

        Goals 2000:
            State and local education systemic improvement.--State grants
        support State and local education improvement efforts to help all
        students reach challenging academic standards. At least 90 percent
        of the funds are provided to local educational agencies. Forty-eight
        States participated in the first year of funding. Funds also support
        evaluation, research, and direct grants to local educational
        agencies in urban and rural areas that enroll significant
        proportions of students from disadvantaged backgrounds.
            Parental assistance.--Centers in 28 States help provide parents
        with knowledge and skills they need to participate effectively in
        their children's education. The requested increase for 1997 would
        support centers in 14 additional States.

        School-to-Work Opportunities.--School-to-work programs are jointly
    administered by the Departments of Education and Labor. An identical
    amount is provided for the Department of Labor to support these
    activities. Competitive, 5-year grants are awarded to States that have
    completed and are ready to implement their school-to-work plans. Twenty-
    seven States are currently in their first or second year of these
    grants.
            Direct grants are also provided to local communities for school-
        to-work systems. By mid-1996 ninety-one local partnerships,
        including 45 that are serving young people who live in urban and
        rural areas characterized by high-poverty, will have received awards
        and be setting up their systems. These funds also support a national
        evaluation, research, and development activities to provide national
        leadership and analysis of school-to-work opportunities initiatives.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0500-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           4           9           9
    25.2  Other services....................           2           5           5
    41.0  Grants, subsidies, and
            contributions...................         288         665         677
                                               ---------   ---------  ----------

    99.9    Total obligations...............         294         679         691
    ---------------------------------------------------------------------------

                         Education for the Disadvantaged

        For carrying out title I of the Elementary and Secondary Education
    Act of 1995. $7,679,000,000, of which $7,658,000,000 shall become
    available on July 1, 1997 and shall remain available through September
    30, 1998: Provided, That $5,430,213,000 shall be available for basic
    grants under section 1124, of which up to $4,000,000 shall be available
    October 1, 1996 to obtain updated local-educational-agency-level census
    poverty data from the Bureau of the Census; $663,137,000 shall be
    available for concentration grants under section 1124A; $1,000,000,000
    shall be available for targeted grants under section 1125; and
    $17,000,000 for part E shall be used to carry out sections 1501 and
    1502.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L 104-99.

    [[Page 396]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Grants to local educational
                agencies:
    00.01     Basic grants..................       5,965           4       5,430
    00.02     Concentration grants..........         663                     663
    00.03     Targeted grants...............                               1,000
    00.04     Set-aside for BIA/outlying
                areas.......................          21           5          72
    00.05   Capital expenses................          45                      20
    00.06   Even start......................         100           4         102
    00.07   State agency programs...........         350           4         360
    00.08   State school improvement........          28                      15
    00.09   Demonstrations of innovative
              practices.....................                                  10
    00.10   Evaluation......................           4                       7
    00.11   Migrant education...............          10
    00.12   Unallocated amount under P.L.
              104-99........................                   6,015
                                               ---------   ---------  ----------

    00.91     Total direct program..........       7,186       6,032       7,679
    01.01 Reimbursable program..............          14
                                               ---------   ---------  ----------

    10.00   Total obligations...............       7,200       6,032       7,679
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          12          17
    22.00 New budget authority (gross)......       7,201       6,015       7,679
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       7,217       6,032       7,679
    23.95 New obligations...................      -7,200      -6,032      -7,679
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       7,228       6,015       7,679
    41.00   Transferred to other accounts...         -41
                                               ---------   ---------  ----------

    43.00     Appropriation (total).........       7,187       6,015       7,679
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          14
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       7,201       6,015       7,679
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       7,556       7,900       6,977
    73.10 New obligations...................       7,200       6,032       7,679
    73.20 Total outlays (gross).............      -6,821      -6,955      -6,551
    73.40 Adjustments in expired accounts...         -30
    73.45 Adjustments in unexpired accounts.          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       7,900       6,977       8,105
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         353         722         921
    86.93 Outlays from current balances.....       6,467       6,224       5,627
    86.97 Outlays from new permanent
            authority.......................           2
    86.98 Outlays from permanent balances...                       9           3
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       6,821       6,955       6,551
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,187       6,015       7,679
    90.00 Outlays...........................       6,807       6,955       6,551
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       7,187       6,015       7,679
      Outlays...........................       6,808       6,955       6,551
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                   1,313
      Outlays...........................                     158         893
                                        ------------------------------------
    Total:
      Budget Authority..................       7,187       7,328       7,679
      Outlays...........................       6,808       7,113       7,444
                                        ====================================

        Grants to local educational agencies.--Funds will be allocated
    through the Basic, Concentration, and Targeted grant formulas for local
    programs that stress the achievement of challenging State education
    standards, support schoolwide improvement, integrate Title I assessment
    and curriculum with State systemic reforms, and target funds to high-
    poverty schools. Up to $4.0 million in Basic Grant funds will be used to
    continue work needed to obtain updated poverty data at the local
    educational agency level from the Bureau of the Census, for use in
    allocating Title I funds beginning in 1999, as required by the statute.

        Capital expenses.--Funds are provided by formula to States to
    support capital costs incurred by local educational agencies that are
    associated with providing educational services to eligible children
    attending non-public schools.

        State agency migrant program.--Funds are provided by formula to
    States for educational services to children of migratory farmworkers and
    fishers. Funds and services are concentrated on children who have moved
    within the past 36 months.

        State agency neglected and delinquent program.--Funds are provided
    by formula to States for educational services to children and youth
    under age 21 in State neglected, delinquent, or adult correction
    facilities. Services help institutionalized youth achieve to the same
    challenging standards established for students in local public schools.

        State school improvement.--Funds are provided by formula to States
    to be used for technical assistance, incentives, and other strategies to
    assist schools and districts to implement Title I programs that help
    children meet challenging State education standards.

        Demonstrations of innovative practices.--Funds will be used to test
    and evaluate strategies and approaches for educating disadvantaged
    children.

        Evaluation.--Funds support national activities to evaluate Title I
    programs and a national assessment of the program's effectiveness in
    helping schools and children achieve to challenging State education
    standards.

        Reimbursable program.--Amounts in this activity consist of funds
    appropriated in other accounts for consolidated grants to the insular
    areas.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           3                       6
    25.2    Other services..................           8                       9
    41.0    Grants, subsidies, and
              contributions.................       7,175          17       7,664
    92.0    Undistributed...................                   6,015
                                               ---------   ---------  ----------

    99.0      Subtotal, direct obligations..       7,186       6,032       7,679
    99.0  Reimbursable obligations..........          14
                                               ---------   ---------  ----------

    99.9    Total obligations...............       7,200       6,032       7,679
    ---------------------------------------------------------------------------

                                   Impact Aid

        For carrying out programs of financial assistance to federally
    affected schools authorized by Title VIII of the Elementary and
    Secondary Education Act of 1965, $617,000,000, of which $550,000,000
    shall be for basic support payments under section 8003(b), $40,000,000
    shall be for payments for children with disabilities under section
    8003(d), $20,000,000, to remain available until expended, shall be for
    payments under section 8003(f), $4,000,000 shall be for construction
    under section 8007, and $3,000,000, to remain available until expended,
    shall

    [[Page 397]]
    be for facilities maintenance under section 8008: Provided, That
    payments and eligibility under section 8003 shall be based only on
    federally connected children described in sections 8003(a)(1)(B) and
    8003(a)(1)(C): Provided further, That notwithstanding the provisions of
    section 8003(b)(1)(B), any local educational agency that received a
    payment based on federally connected children described in sections
    8003(a)(1)(B) and 8003(a)(1)(C) for fiscal year 1996 shall be eligible
    to receive a payment under sections 8003(b) and 8003(d) for fiscal year
    1997: Provided further, That notwithstanding section 8003(b)(1)(C), the
    maximum amount of the basic support payment shall be determined by
    multiplying each local educational agency's weighted student units for
    federally connected children described in sections 8003(a)(1)(B) and
    8003(a)(1)(C) by the factor described under section 8003(b)(1)(C)(iv):
    Provided further, That notwithstanding section 8003(b)(2), if funds
    provided are insufficient to pay each local educational agency the full
    amount of its payment calculated under section 8003(b)(1)(C), then
    payments shall be ratably reduced: Provided further, That none of the
    funds provided herein shall be used for payments under section 8003(e).
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Payments for federally connected children:

    00.01   Basic support payments..........         632                     550
    00.02   Supplemental payments for
              children with disabilities....          40                      40
    00.03   Payments for heavily impacted
              districts.....................                      40          20
                                               ---------   ---------  ----------

    00.91   Subtotal, payments for federally
              connected children............         672          40         610
    01.01 Facilities maintenance............           1          14           3
    02.01 Construction......................                                   4
    03.01 Payments for Federal property.....          16
    04.01 Payments for section 3(d)(2)(B)...          26           7
    05.01 Disaster assistance...............          66
    06.01 Construction (P.L. 81-815)........           2          21
    07.01 Unallocated amount under P.L. 104-
            99..............................                     660
                                               ---------   ---------  ----------

    10.00   Total obligations...............         783         742         617
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         152         105          24
    22.00 New budget authority (gross)......         728         660         617
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          24
    22.30 Unobligated balance expiring......         -16
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         888         765         641
    23.95 New obligations...................        -783        -742        -617
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         105          24          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         728         660         617
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         642         471         382
    73.10 New obligations...................         783         742         617
    73.20 Total outlays (gross).............        -808        -830        -693
    73.40 Adjustments in expired accounts...        -121
    73.45 Adjustments in unexpired accounts.         -24
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         471         382         307
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         573         541         504
    86.93 Outlays from current balances.....         235         289         189
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         808         830         693
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         728         660         617
    90.00 Outlays...........................         808         830         693
    ---------------------------------------------------------------------------

        Funds help to pay the operating costs of local educational agencies
    that are affected by Federal activities. Payments would be made to local
    educational agencies that educate children living on Indian lands and
    military dependents living on Federal property.

        Basic support payments.--Payments would be made on behalf of
    approximately 337,000 federally connected children enrolled in over
    1,200 school districts across the country. The request would provide an
    average payment of $1,632 for each of these federally connected
    children.

        Supplemental payments for children with disabilities.--Payments
    would be made for additional assistance to school districts educating
    federally connected children with disabilities. Approximately 33,000
    such children are enrolled in school districts across the country. The
    request would provide approximately $1,200 in additional assistance for
    the education of each of these children.

        Payments for heavily impacted districts.--Increased payments would
    be provided for certain heavily impacted school districts, including
    school districts whose boundaries are the same as a military base, and
    school districts that enroll high proportions of federally connected
    children and meet certain fiscal requirements.

        Facilities maintenance.--Funds would be used to provide emergency
    repairs for school facilities that are owned by the Department of
    Education.

        Construction.--Formula-based payments for capital improvements would
    be made to school districts that meet the statutory eligibility
    criteria.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............           2          35           3
    41.0  Grants, subsidies, and
            contributions...................         781          47         614
    92.0  Undistributed.....................                     660
                                               ---------   ---------  ----------

    99.9    Total obligations...............         783         742         617
    ---------------------------------------------------------------------------

                           School Improvement Programs

        For carrying out titles II, IV, V, IX, X and XIII of the Elementary
    and Secondary Education Act of 1965; the Stewart B. McKinney Homeless
    Assistance Act; the Civil Rights Act of 1964; and title V of the Higher
    Education Act; $1,404,000,000, of which $1,154,000,000 shall become
    available on July 1, 1997 and remain available through September 30,
    1998: Provided, That of the amount appropriated, $610,000,000 shall be
    for State grants for professional development under title II, part B of
    the Elementary and Secondary Education Act; $40,000,000 shall be for
    charter schools under title X, part C of such Act; and $120,000 shall be
    for the report required under section 5207(a) of such Act.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Professional development and
                program innovation:
    00.01     Eisenhower professional
                development State grants....         250         508         610
    00.02     Innovative education program
                strategies State grants.....         347
            Safe and drug-free schools and
                communities:
    00.03     State grants..................         434         335         515
    00.04     National programs.............          25          19          25
    00.05     Safe schools..................          20
    00.06   Inexpensive book distribution...          10                       9
    00.07   Arts in education...............          11                      10
    00.08   Instruction in civics,
              government and law............           4
    00.09   Christa McAuliffe fellowships...           2                       2
    00.10   Magnet schools assistance.......         112                      95
    00.11   Education for homeless children
              and youth.....................          28                      29
    00.12   Women's educational equity......           4                       4

    [[Page 398]]

    00.13   Training and advisory services..          21                      14
    00.14   Dropout prevention
              demonstrations................          12
    00.15   Ellender fellowships............           3
    00.16   Education for Native Hawaiians..           9                       6
    00.17   Foreign language assistance.....          11
    00.18   Charter schools.................           6           6          40
    00.19   Comprehensive regional
              assistance centers............          30          22          45
    00.21   Unallocated amount under P.L.
              104-99........................                     126
                                               ---------   ---------  ----------

    10.00   Total obligations...............       1,339       1,016       1,404
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          20           5
    22.00 New budget authority (gross)......       1,322       1,011       1,404
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,344       1,016       1,404
    23.95 New obligations...................      -1,339      -1,016      -1,404
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       1,328       1,011       1,404
    41.00 Transferred to other accounts.....          -6
                                               ---------   ---------  ----------

    43.00   Appropriation (total)...........       1,322       1,011       1,404
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       1,322       1,011       1,404
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       1,827       1,761       1,227
    73.10 New obligations...................       1,339       1,016       1,404
    73.20 Total outlays (gross).............      -1,391      -1,550      -1,161
    73.40 Adjustments in expired accounts...         -13
    73.45 Adjustments in unexpired accounts.          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       1,761       1,227       1,470
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          52         121         168
    86.93 Outlays from current balances.....       1,339       1,429         993
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       1,391       1,550       1,161
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,322       1,011       1,404
    90.00 Outlays...........................       1,391       1,550       1,161
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       1,322       1,011       1,404
      Outlays...........................       1,391       1,550       1,161
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                     308
      Outlays...........................                      37         209
                                        ------------------------------------
    Total:
      Budget Authority..................       1,322       1,319       1,404
      Outlays...........................       1,391       1,587       1,370
                                        ====================================
        Note.--Excludes $5 million in budget authority in 1997 for
    activities transferred to Office of Bilingual Education and Minority
    Languages Affairs, Bilingual and Immigrant Education account.

        Eisenhower professional development State grants.--Formula grants
    are provided to States, local districts, and institutions of higher
    education to support intensive, high-quality professional development in
    the core academic subject areas.

        Safe and drug-free schools and communities.--

        State grants.--Formula grants are made to States and Outlying Areas
    to assist in combatting school violence and drug use by the Nation's
    children and youth.

        National programs.--Funds support activities to promote safe and
    disciplined academic environments and prevent the illegal use of drugs
    and violence among students at all educational levels. Such activities
    may include training, demonstrations, direct services to school
    districts with severe drug and violence problems, program evaluation,
    and development and dissemination of information and materials.

        Other programs.--

        Inexpensive book distribution.--Funds support reading motivation
    activities, including the distribution of free books to children.

        Arts in education.--Funds support Federal leadership activities in
    arts education as well as the education activities of the Kennedy Center
    and Very Special Arts.

        Christa McAuliffe fellowships.--Fellowships are awarded to
    outstanding teachers to enable and encourage them to continue their
    education or to develop educational projects and programs.

        Magnet schools assistance.--Grants are made to local educational
    agencies to establish and operate magnet school programs that are part
    of approved desegregation plans.

        Education for homeless children and youth.--Funds are provided to
    States, Outlying Areas, and the Bureau of Indian Affairs to provide
    educational and support services that enable homeless children and youth
    to enroll in, attend, and achieve success in school.

        Women's educational equity.--Funds support implementation of gender-
    equity practices at schools and colleges, as well as the development and
    dissemination of educational materials that promote educational equity
    for women and girls.

        Training and advisory services.--Grants are made to State
    educational agencies and regional desegregation assistance centers that
    provide technical assistance to school districts in desegregating public
    schools and developing effective methods of coping with special
    educational problems associated with desegregation.

        Education for Native Hawaiians.--Grants provide supplemental
    education services to Native Hawaiians in the areas of family-based
    education, special education, gifted and talented education, higher
    education, curriculum development, teacher training and recruitment, and
    community-based learning.

        Charter schools.--The President is proposing a significant increase
    in this program to support innovative education reform and public school
    choice. Grants are awarded to State educational agencies and charter
    schools to support the design and initial implementation of model
    charter schools. These schools are created by teachers, parents, and
    members of the community, and are exempt from certain local, State, and
    Federal regulations.

        Comprehensive regional assistance centers.--Funds are provided for
    15 comprehensive regional technical assistance centers that provide
    services to States, local educational agencies, schools, and other
    recipients of Federal education funds to improve elementary and
    secondary education programs.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    24.0  Printing and reproduction.........           1           1           1
    25.1  Advisory and assistance services..           1           1           2
    25.2  Other services....................          29           8          20
    25.5  Research and development contracts           6
    41.0  Grants, subsidies, and
            contributions...................       1,302         881       1,381
    92.0  Undistributed.....................                     125
                                               ---------   ---------  ----------

    99.9    Total obligations...............       1,339       1,016       1,404
    ---------------------------------------------------------------------------

    [[Page 399]]

                          Chicago Litigation Settlement

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0220-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           4          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          14          10
    22.00 New budget authority (gross)......
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          14          10
    23.95 New obligations...................          -4         -10
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    70.00 Total new budget authority (gross)
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           4           2           5
    73.10 New obligations...................           4          10
    73.20 Total outlays (gross).............          -6          -7          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           2           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....           6           7           5
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           6           7           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           6           7           5
    ---------------------------------------------------------------------------

        Funds made available under this account were reappro- priated by the
    Supplemental Appropriations Act, 1987 (Public Law 100-71) from funds
    enjoined in United States of America v. Board of Education of the City
    of Chicago. The funds were reappropriated for the specific purpose of
    settling this case. The funds are used by the Chicago Board of Education
    to implement Project CANAL (Creating A New Approach to Learning), the
    project approved by the court to support the Board's desegregation
    efforts.

        The Department of Education provides these funds to the Chicago
    Board of Education in annual increments upon receipt and approval of an
    annual plan for Project CANAL activities.

                                Indian Education

        For necessary expenses to carry out, to the extent not otherwise
    provided, title IX, part A of the Elementary and Secondary Act of 1965
    (ESEA), and section 215 of the Department of Education Organization Act,
    $81,500,000; Provided, That $1,600,000 available pursuant to section
    9123 of the ESEA shall remain available for obligation until September
    30, 1998.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0101-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to local educational
            agencies........................          60           1          62
    00.02 Special programs for Indian
            children and adults and National
            activities......................          18                      17
    00.03 Federal Administration............           3                       3
    00.04 Unallocated amount under P.L. 104-
            99..............................                      61
                                               ---------   ---------  ----------

    10.00   Total obligations...............          81          62          82
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1           1
    22.00 New budget authority (gross)......          81          61          82
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          82          62          82
    23.95 New obligations...................         -81         -62         -82
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          81          61          82
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          86          93          78
    73.10 New obligations...................          81          62          82
    73.20 Total outlays (gross).............         -71         -76         -68
    73.40 Adjustments in expired accounts...          -3
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          93          78          92
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           9          12
    86.93 Outlays from current balances.....          67          67          57
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          71          76          68
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          81          61          82
    90.00 Outlays...........................          71          76          68
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................          81          61          82
      Outlays...........................          71          76          69
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                      20
      Outlays...........................                       2          14
                                        ------------------------------------
    Total:
      Budget Authority..................          81          81          82
      Outlays...........................          71          78          83
                                        ====================================

        The Indian Education program (Title IX, Part A of the Elementary and
    Secondary Education Act) supports the efforts of local educational
    agencies, State educational agencies, and Indian tribes and
    organizations to improve teaching and learning for the Nation's American
    Indian and Alaska Native children and adults.

        Grants to local educational agencies.--Formula grants support local
    educational agencies in their efforts to reform elementary and secondary
    school programs that serve Indian students, with the goal of ensuring
    that such programs are based on challenging State standards that are
    used for all students. In 1995, 1,272 formula grants were made to local
    educational agencies and certain tribal schools enrolling approximately
    429,865 Indian students.

        Special programs for Indian children.--Competitive grants are made
    for a Demonstration Grants program, a Fellowship program, and a
    Professional Development program.

        Special programs for Indian adults.--Competitive grants are made to
    State educational agencies, local educational agencies, Indian tribes,
    institutions, and organizations for programs to improve educational
    opportunities for Indian adults.

        National Activities.--Funds support research, evaluation, data
    collection, and related activities.

        Federal administration.--Funds support the administrative expenses
    of the Office of Indian Education and the National Advisory Council on
    Indian Education.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0101-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           2           2           2
    25.2  Other services....................           4                       2
    41.0  Grants, subsidies, and
            contributions...................          75           1          78

    [[Page 400]]

    92.0  Undistributed.....................                      59
                                               ---------   ---------  ----------

    99.9    Total obligations...............          81          62          82
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0101-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          35          30          30
    ---------------------------------------------------------------------------

          OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES AFFAIRS

                                  Federal Funds

    General and special funds:

                        Bilingual and Immigrant Education

        For carrying out, to the extent not otherwise provided, bilingual,
    foreign language, and immigrant education activities authorized by parts
    A and C, and section 7203 of title VII of the Elementary and Secondary
    Education Act, $261,700,000, of which $25,180,000 shall be for training
    activities under subpart 3 of part A of title VII $5,000,000 shall be
    for foreign language assistance, and $100,000,000 shall be for the
    immigrant education program authorized by part C: Provided, That State
    educational agencies may use all, or any part of, their part C
    allocation for competitive grants to local educational agencies.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in the three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Instructional services............         117                     118
    00.02 Support services..................          14                      14
    00.03 Training grants...................          25                      25
    00.04 Immigrant education...............          50          50         100
    00.05 Foreign language assistance.......                                   5
    00.06 Unallocated amount under P.L. 104-
            99..............................                     105
                                               ---------   ---------  ----------

    10.00   Total obligations...............         206         155         262
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         207         155         262
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         206         155         262
    23.95 New obligations...................        -206        -155        -262
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         207         155         262
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         295         266         188
    73.10 New obligations...................         206         155         262
    73.20 Total outlays (gross).............        -225        -233        -183
    73.40 Adjustments in expired accounts...         -11
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         266         188         267
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           7          19          31
    86.93 Outlays from current balances.....         218         214         152
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         225         233         183
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         207         155         262
    90.00 Outlays...........................         225         233         183
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................         207         155         262
      Outlays...........................         225         233         183
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                      52
      Outlays...........................                       6          35
                                        ------------------------------------
    Total:
      Budget Authority..................         207         207         262
      Outlays...........................         225         239         218
                                        ====================================
        Note.--Includes $5.0 million in budget authority in 1997 for
    activities previously financed from Department of Education, Office of
    Elementary and Secondary Education, School improvement account.

        Bilingual education.--The 1994 reauthorization of the Elementary and
    Secondary Education Act aligned bilingual education programs with the
    broader educational reforms underway in States and communities. These
    programs provide assistance to local educational agencies and other
    entities to develop and enhance their capacity to provide high-quality
    instructional programs to children and youth of limited English
    proficiency. Programs are designed to teach English and to assist these
    students to achieve to the same challenging State content and
    performance standards expected of all children and youth. Aid is also
    given to train educational personnel to serve limited English proficient
    children, to build State capacity to improve educational services for
    these children, and for information dissemination, studies, and
    evaluations.

        Foreign language assistance.--The foreign language assistance
    program provides competitive grants to State and local educational
    agencies to improve the quality of foreign language instruction for
    elementary and secondary school students.

        Immigrant education.--The immigrant education program provides
    grants to school districts to help finance educational services for
    immigrant students. Participation is limited to districts with 500
    immigrant students or districts in which immigrant children represent at
    least 3 percent of the enrollment. Awards are made to State educational
    agencies, which make subgrants to eligible local educational agencies.
    Proposed appropriation language would permit States to distribute these
    funds on either a formula or discretionary grant basis.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           2                       1
    41.0  Grants, subsidies, and
            contributions...................         204          50         261
    92.0  Undistributed.....................                     105
                                               ---------   ---------  ----------

    99.9    Total obligations...............         206         155         262
    ---------------------------------------------------------------------------

             OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

                                  Federal Funds

    General and special funds:

                                Special Education

        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

    [[Page 401]]

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            State grants:
    00.01     Grants to States..............       2,467          31
    00.02     Chapter 1 handicapped program.          14
    00.03     Preschool grants..............         394           4
    00.04     Grants for infants and
                families....................         242         303
                                               ---------   ---------  ----------

    00.91     Subtotal, State grants........       3,117         338
          Special purpose funds:

    01.01   Deaf-blindness..................          13
    01.02   Serious emotional disturbance...           4
    01.03   Severe disabilities.............          10
    01.04   Early childhood education.......          25
    01.05   Secondary and transitional
              services......................          24
    01.06   Postsecondary education.........           9
    01.07   Innovation and development......          21
    01.08   Media and captioning services...          19
    01.09   Technology applications.........          11
    01.10   Special studies.................           4
    01.11   Personnel development...........          91
    01.12   Parent training.................          14
    01.13   Clearinghouses..................           2
    01.14   Regional resource centers.......           7
    01.15   Architectural barriers removal..                       1
                                               ---------   ---------  ----------

    01.91     Subtotal, Special purpose
                funds.......................         254           1
    02.01 Unallocated amount under P.L. 104-
            99..............................                   3,093
                                               ---------   ---------  ----------

    10.00   Total obligations...............       3,370       3,432
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         444         339
    22.00 New budget authority (gross)......       3,253       3,093
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          13
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       3,710       3,432
    23.95 New obligations...................      -3,370      -3,432
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         339
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       3,253       3,093
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       3,787       3,952       3,898
    73.10 New obligations...................       3,370       3,432
    73.20 Total outlays (gross).............      -3,177      -3,486      -2,798
    73.40 Adjustments in expired accounts...         -16
    73.45 Adjustments in unexpired accounts.         -13
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       3,952       3,898       1,100
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         137         309
    86.93 Outlays from current balances.....       3,040       3,177       2,798
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       3,177       3,486       2,798
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,253       3,093
    90.00 Outlays...........................       3,177       3,486       2,798
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       3,253       3,093
      Outlays...........................       3,177       3,486       2,798
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                               3,553
      Outlays...........................                                 355
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                     249
      Outlays...........................                      25         149
                                        ------------------------------------
    Total:
      Budget Authority..................       3,253       3,342       3,553
      Outlays...........................       3,177       3,511       3,302
                                        ====================================

        Legislation is pending authorizing programs under the Individuals
    with Disabilities Education Act. When new authorizing legislation is
    enacted, resources will be requested for the Special Education account.
    See the ``Legislative proposal, not subject to PAYGO'' schedule for
    additional details.

        Program measures under the current program include:

                                             1993 actual 1994 actual   1995 est.
    Number of children served on December 1:
      Ages 3 through 21.....................   5,279,490   5,466,517   5,622,000
      Ages 3 through 5......................     493,425     527,789     554,000
      Birth through 2.......................     150,783     164,100     172,000

                                        1990-1991 ac1991-1992 actual  1992-1993
                                                                          actual
        Educational Environment
    Children provided special education in:
      Regular classrooms with or without
        resource rooms......................   3,235,128   3,397,326   3,563,883
      Separate classes......................   1,194,012   1,160,943   1,219,867
      Separate schools......................     233,012     219,055     204,764
      Residential facilities................      38,095      40,893      40,466
        Status of Exiting Students
    Graduated with a diploma................     101,959     100,742     103,801
    Graduated through certification.........      29,733      30,839      34,732
    Reached maximum age.....................       4,368       4,337       5,096
    Dropped out of school...................      51,949      51,489          NA
    Status unknown..........................      35,220      41,961          NA
        NA--Not available due to changes in data collection form.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           8
    25.3  Purchases of goods and services
            from Government accounts........           1
    25.5  Research and development contracts           3
    41.0  Grants, subsidies, and
            contributions...................       3,359
    92.0  Undistributed.....................                   3,432
                                               ---------   ---------  ----------

    99.9    Total obligations...............       3,370       3,432
    ---------------------------------------------------------------------------

                                Special Education

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-2-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          State grants:

    00.01   Grants to States................                               2,603
    00.02   Preschool grants................                                 380
    00.03   Grants for infants and families.                                 316
                                               ---------   ---------  ----------

    00.91     Subtotal, State grants........                               3,299
          Program support and improvement (proposed
              legislation):

    01.01   Research to practice............                                  96
    01.02   State improvement...............                                  37
    01.03   Professional development........                                  77
    01.04   Parent training and information.                                  15
    01.05   Technology development and
              educational media services....                                  30
                                               ---------   ---------  ----------

    01.91     Subtotal, Program support and
                improvement.................                                 254
                                               ---------   ---------  ----------

    10.00   Total obligations...............                               3,553
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                               3,553
    23.95 New obligations...................                              -3,553
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                               3,553
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                               3,553
    73.20 Total outlays (gross).............                                -355
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                               3,198
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                 355
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                                 355
    ----------------------------------------------------------------------------

    [[Page 402]]

        Net budget authority and outlays:
    89.00 Budget authority..................                               3,553
    90.00 Outlays...........................                                 355
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to authorize programs under the Individuals
    with Disabilities Education Act.

        State grants.--

        Grants to States.--Formula grants are provided to States to assist
    them in providing special education and related services to children
    with disabilities aged 3 through 21 years old.

        Preschool grants.--Formula grants provide additional funds to States
    to further assist them in providing special education and related
    services to children with disabilities aged 3 through 5 served under the
    Grants to States program.

        Grants for infants and families.--Formula grants are provided to
    assist States to continue to implement statewide systems of coordinated,
    comprehensive, multi-disciplinary interagency programs to provide early
    intervention services to children with disabilities aged birth through 2
    years old and their families.

        Program support and improvement.--These funds support a variety of
    research, demonstration, training, technical assistance, systems change,
    and other activities.

        The Department is in the process of developing performance
    indicators that will provide information on the impact of special
    education and early intervention on improving results for children with
    disabilities.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-2-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                                   2
    25.2  Other services....................                                   7
    25.5  Research and development contracts                                   2
    41.0  Grants, subsidies, and
            contributions...................                               3,542
                                               ---------   ---------  ----------

    99.9    Total obligations...............                               3,553
    ---------------------------------------------------------------------------

                 Rehabilitation Services and Disability Research

        For carrying out, to the extent not otherwise provided, the
    Rehabilitation Act of 1973, the Technology-Related Assistance for
    Individuals with Disabilities Act, and the Helen Keller National Center
    Act, as amended, $2,512,587,000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0301-0-1-506      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Vocational rehabilitation State
              grants........................       2,054       2,108       2,176
    00.02   Client assistance State grants..          10                      10
    00.03   Training........................          40                      40
    00.04   Special demonstration programs..          32           2          19
    00.05   Migratory workers...............           1                       2
    00.06   Recreational programs...........           3                       3
    00.07   Protection and advocacy.........           7                       8
    00.08   Projects with industry..........          22                      22
    00.09   Supported employment State
              grants........................          37                      38
    00.10   Independent living..............          71                      75
    00.11   Program improvement.............                                   2
    00.12   Evaluation......................           2                       2
    00.13   Helen Keller National Center....           7                       7
    00.14   National Institute on Disability
              and Rehabilitation Research...          70                      70
    00.15   Assistive technology............          39                      39
    00.16   Unallocated Amount under PL 104-
              99............................                     337
                                               ---------   ---------  ----------

    00.91     Total, direct program.........       2,395       2,447       2,513
    01.01 Reimbursable......................           2
                                               ---------   ---------  ----------

    10.00   Total obligations...............       2,397       2,447       2,513
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           4           2
    22.00 New budget authority (gross)......       2,395       2,445       2,513
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       2,399       2,447       2,513
    23.95 New obligations...................      -2,397      -2,447      -2,513
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       2,393       2,444       2,513
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       2,395       2,445       2,513
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         876         922         775
    73.10 New obligations...................       2,397       2,447       2,513
    73.20 Total outlays (gross).............      -2,335      -2,594      -2,609
    73.40 Adjustments in expired accounts...         -15
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         922         775         679
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,621       1,882       1,934
    86.93 Outlays from current balances.....         713         711         674
    86.97 Outlays from new permanent
            authority.......................           1
    86.98 Outlays from permanent balances...
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       2,335       2,594       2,609
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,393       2,445       2,513
    90.00 Outlays...........................       2,334       2,594       2,609
    ---------------------------------------------------------------------------

        Vocational rehabilitation State grants.--The basic State grant
    program provides Federal matching funds to State vocational
    rehabilitation (VR) agencies to assist individuals with physical or
    mental impairments to become gainfully employed. Services provided
    include vocational evaluation, counseling, mental and physical
    restoration, education, vocational training, work adjustment, job
    placement, and post-employment services. Priority is given to serving
    those with the most severe disabilities.

        In 1995, there was a 5 percent increase in the total number of
    eligible individuals in the VR system. In that year, 35 of the 82 VR
    agencies could not serve all individuals determined to be eligible for
    the program. Of those individuals whose cases were closed in 1995 after
    receiving VR services, about 60 percent achieved an employment outcome
    and an estimated 85 percent of these individuals entered the competitive
    labor market or became self-employed.

        The table below presents national estimates of the number of
    eligible individuals in the VR system (individuals being served and
    eligible individuals awaiting service) and estimates of the number of
    individuals who achieved an employment outcome under the program.

        ESTIMATES OF ELIGIBLE INDIVIDUALS AND INDIVIDUALS REHABILITATED

                                                  1994           1995
                                                 actual       preliminary
    Eligible individuals in the VR system...     1,193,661       1,251,710

    [[Page 403]]

     Severe disabilities, percent...........          73.9            75.2
    Individuals achieving employment
     outcomes...............................       203,035         209,450
     Severe disabilities, percent...........          73.5            75.9

        Client assistance State grants.--Formula grants are made to States
    to provide assistance in informing and advising clients and applicants
    of benefits available under the Rehabilitation Act and, if requested, to
    pursue legal or administrative remedies to ensure the protection of the
    rights of individuals with disabilities.

        Training.--Grants are made to States and public or nonprofit
    agencies and organizations, including institutions of higher education,
    to increase the number of skilled personnel available for employment in
    the field of rehabilitation.

        Special demonstration programs.--Grants are made to develop
    innovative methods and comprehensive service programs to assist
    individuals with disabilities to achieve satisfactory vocational
    outcomes. Supported employment projects, which provide grants to expand
    or improve the provision of supported employment services to individuals
    with the most severe disabilities, are included under this activity.

        Migratory workers.--Grants are made to State VR agencies and other
    nonprofit or local agencies to provide comprehensive vocational
    rehabilitation services to migrant or seasonal farm workers with
    disabilities.

        Recreational programs.--Grants are made to provide individuals with
    disabilities with recreation and related activities to aid in their
    employment, mobility, independence, socialization, and community
    integration.

        Protection and advocacy of individual rights.--Formula grants are
    made to State protection and advocacy systems to protect the legal and
    human rights of individuals with disabilities.

        Projects with industry.--Grants are made to a variety of public and
    private organizations, including State VR agencies, community
    rehabilitation programs, and labor organizations to provide training in
    work settings to prepare individuals with disabilities for employment
    and career advancement in the competitive labor market.

        Supported employment State grants.--Formula grants are made to
    assist States in developing programs with public and nonprofit
    organizations to provide supported employment services for individuals
    with the most severe disabilities who require on-going support services
    to enter or retain competitive employment.

        Independent living.--Grants are awarded to States and nonprofit
    agencies for services designed to enable individuals with significant
    disabilities to live and function more independently.

        Program Improvement.--Funds would be used to promote broad-based
    planning and coordination, improve accountability, and enhance the
    Department's ability to address critical areas of national significance
    in achieving the purposes of the Rehabilitation Act. Examples of program
    improvement activities would include technical assistance activities of
    national scope; the development of an effective data management and
    reporting system, including program performance measures; and the
    development of a dissemination and utilization strategy for
    demonstration projects of national significance.

        Evaluation.--Studies are conducted to evaluate the impact and
    effectiveness of various programs authorized under the Rehabilitation
    Act. The Department is conducting a multi-year national longitudinal
    study of the Vocational rehabilitation State grants program.

        Helen Keller National Center for Deaf-Blind Youths and Adults.--The
    Center provides services to deaf-blind youths and adults and provides
    training and technical assistance to professional and allied personnel
    at its national headquarters center and through its regional
    representatives and affiliate agencies.

        National Institute on Disability and Rehabilitation Research.--The
    Institute carries out a comprehensive and coordinated program of
    rehabilitation research and related activities. Through grants and
    contracts, it supports research and training centers, rehabilitation
    engineering centers, research and demonstration projects, information
    dissemination and utilization projects, and training activities.

        Assistive technology.--Grants are made to States to support systems
    change and advocacy activities designed to develop and implement
    consumer-responsive comprehensive statewide programs of technology-
    related assistance for individuals of all ages with disabilities.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0301-0-1-506      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           4                       5
    25.2    Other services..................           1                       1
    25.3    Purchases of goods and services
              from Government accounts......           2                       2
    25.5    Research and development
              contracts.....................           2                       2
    41.0    Grants, subsidies, and
              contributions.................       2,385       2,110       2,503
    92.0    Undistributed...................                     337
                                               ---------   ---------  ----------

    99.0      Subtotal, direct obligations..       2,394       2,447       2,513
    99.0  Reimbursable obligations..........           2
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------

    99.9    Total obligations...............       2,397       2,447       2,513
    ---------------------------------------------------------------------------

               Special Institutions for Persons With Disabilities

                      american printing house for the blind

        For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101
    et seq.), $6,495,000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0600-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................           7           5           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           7           5           6
    23.95 New obligations...................          -7          -5          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           7           5           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           1
    73.10 New obligations...................           7           5           6
    73.20 Total outlays (gross).............          -7          -5          -6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           6           5           6
    86.93 Outlays from current balances.....           1           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           7           5           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           7           5           6
    90.00 Outlays...........................           7           5           6
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................           7           5           6
      Outlays...........................           7           6           6

    [[Page 404]]

    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                       1
      Outlays...........................                       1
                                        ------------------------------------
    Total:
      Budget Authority..................           7           6           6
      Outlays...........................           7           7           6
                                        ====================================

        The Federal appropriation supports the production of free
    educational materials for students below the college level who are
    blind, research related to developing and improving products, and
    advisory services to consumer organizations on the availability and use
    of materials. In 1995, the portion of the Federal appropriation
    allocated to educational materials represented approximately 40 percent
    of the Printing House's total sales. The full appropriation represented
    approximately 44 percent of the Printing House's total budget.

                    national technical institute for the deaf

        For the National Technical Institute for the Deaf under titles I and
    II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.),
    $43,041,000, of which $336,000 shall be for the endowment program as
    authorized under section 207 and shall be available until expended:
    Provided, That from the total amount available, the Institute may at its
    discretion use additional amounts for the endowment program, to remain
    available until September 30, 1997.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0601-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    04.01 Unallocated amount under P.L. 104-
            99..............................          43          40          43
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................          43          40          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          43          40          43
    23.95 New obligations...................         -43         -40         -43
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          43          40          43
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           3                       2
    73.10 New obligations...................          43          40          43
    73.20 Total outlays (gross).............         -46         -38         -43
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                       2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          43          38          40
    86.93 Outlays from current balances.....           3                       2
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          46          38          43
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          43          40          43
    90.00 Outlays...........................          46          38          43
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................          43          40          43
      Outlays...........................          46          38          42
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                       3
      Outlays...........................                       3
                                        ------------------------------------
    Total:
      Budget Authority..................          43          43          43
      Outlays...........................          46          41          42
                                        ====================================

        This residential center provides postsecondary technical and
    professional education for people who are deaf to prepare them for
    employment, provides training, and conducts applied research into
    employment related aspects of deafness. In 1995, Federal appropriations
    represented 83 percent of the Institute's operating budget. Funds are
    also provided for endowment matching grants.

                              gallaudet university

        For the Kendall Demonstration Elementary School, the Model Secondary
    School for the Deaf, and the partial support of Gallaudet University
    under titles I and II of the Education of the Deaf Act of 1986 (20
    U.S.C. 4301 et seq.), $80,030,000, of which $1,000,000 shall be for the
    endowment program as authorized under section 207 and shall be available
    until expended: Provided, That from the total amount available, the
    University may at its discretion use additional amounts for the
    endowment program, to remain available until September 30, 1997.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0602-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 University programs...............          54
    02.01 Pre-college programs..............          25          22
    03.01 Endowment grant...................           1
    04.01 Unallocated amount under P.L. 104-
            99..............................                      50          80
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................          80          72          80
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          80          72          80
    23.95 New obligations...................         -80         -72         -80
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          80          72          80
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           7           3           4
    73.10 New obligations...................          80          72          80
    73.20 Total outlays (gross).............         -84         -71         -80
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          80          68          75
    86.93 Outlays from current balances.....           4           2           4
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          84          71          80
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          80          72          80
    90.00 Outlays...........................          84          71          80
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................          80          72          80
      Outlays...........................          84          70          79
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                       8
      Outlays...........................                       8
                                        ------------------------------------
    Total:
      Budget Authority..................          80          80          80
      Outlays...........................          84          78          79
                                        ====================================

    [[Page 405]]

        This institution provides college preparatory, undergraduate, and
    continuing education programs for persons who are deaf, and graduate
    programs related to deafness for students who are deaf and students who
    are hearing. The University also conducts basic and applied research and
    provides public service programs for persons who are deaf and persons
    who work with them.

        Gallaudet operates two pre-college programs on the main campus of
    the University. The Kendall Demonstration Elementary School serves
    students who are deaf from infancy through age 15, and the Model
    Secondary School for the Deaf serves students who are deaf of high
    school age. Both schools also develop and disseminate information on
    effective educational techniques and strategies for teachers and
    professionals working with students who are deaf or hard of hearing.

        In 1995, the Federal appropriation represented 65.4 percent of the
    University's operating budget, excluding Federal financial aid,
    vocational rehabilitation, and competitive grants, and 98.7 percent of
    the operating budgets of the related elementary and secondary schools.
    Funds are also requested for endowment matching grants.

                    OFFICE OF VOCATIONAL AND ADULT EDUCATION

                                  Federal Funds

    General and special funds:

                         Vocational and Adult Education

        For carrying out, to the extent not otherwise provided, the Carl D.
    Perkins Vocational and Applied Technology Education Act, the Adult
    Education Act, and the National Literacy Act of 1991, $1,420,000,000,
    which shall become available on July 1, 1997 and shall remain available
    through September 30, 1998.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Vocational education:

            Annual appropriations:
              Basic grants:
    00.01       Basic State grants..........         979
    00.02       Indian and Hawaiian natives
                  set-aside.................          15          15
    00.03       Territorial set-aside.......           2           1
                                               ---------   ---------  ----------

    00.91         Subtotal, basic grants....         996          16
    01.01     Consumer and homemaking
                education...................           1
    01.02     State councils................           9
    01.03     Tech-prep education...........         110
    01.04     Tribally controlled
                postsecondary vocational
                institutions................           3
    01.05     Bilingual vocational training.           3
              National programs:
    01.06       Research....................           9           7
    01.07       Demonstrations..............          22
    01.08       National Occupational
                  Information Coordinating
                  Committee.................           1           4
    01.10     Vocational education programs.                               1,120
                                               ---------   ---------  ----------

    01.91       Subtotal....................         158          11       1,120
                                               ---------   ---------  ----------

    02.00       Total, annual appropriation.       1,154          27       1,120
    03.01     Permanent appropriation.......           7           7           7
                                               ---------   ---------  ----------

    04.00       Total, vocational education.       1,161          34       1,127
            Adult education:
    05.01     State programs................         252
    05.02     Evaluation and technical
                assistance..................           5           3
    05.03     National Institute for
                Literacy....................           5           5
    05.04     State literacy resource
                centers.....................           3
    05.05     Workplace literacy
                partnerships................          19          13
    05.06     Literacy training for homeless
                adults......................          10
    05.07     Literacy programs for
                prisoners...................           5           5
    05.08   Adult education programs........                                 300
                                               ---------   ---------  ----------

    05.91     Total, adult education........         299          26         300
    06.01 Unallocated amount under P.L. 104-
            99..............................                   1,163
                                               ---------   ---------  ----------

    07.00   Total, direct program...........       1,460       1,223       1,427
    08.01 Reimbursable program..............           1
                                               ---------   ---------  ----------

    10.00   Total obligations...............       1,461       1,223       1,427
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         123          53
    22.00 New budget authority (gross)......       1,391       1,170       1,427
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,514       1,223       1,427
    23.95 New obligations...................      -1,461      -1,223      -1,427
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       1,383       1,163       1,420
          Permanent:

    60.00   Appropriation...................           7           7           7
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       1,391       1,170       1,427
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       1,682       1,639       1,375
    73.10 New obligations...................       1,461       1,223       1,427
    73.20 Total outlays (gross).............      -1,482      -1,487      -1,289
    73.40 Adjustments in expired accounts...         -20
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       1,639       1,375       1,513
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          79         141         172
    86.93 Outlays from current balances.....       1,395       1,338       1,111
    86.97 Outlays from new permanent
            authority.......................           2           1           1
    86.98 Outlays from permanent balances...           7           7           6
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       1,482       1,487       1,289
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,390       1,170       1,427
    90.00 Outlays...........................       1,481       1,487       1,289
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       1,390       1,170       1,427
      Outlays...........................       1,482       1,487       1,290
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                  -7
      Outlays...........................                                  -1
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                     219
      Outlays...........................                      26         149
                                        ------------------------------------
    Total:
      Budget Authority..................       1,390       1,389       1,420
      Outlays...........................       1,482       1,513       1,438
                                        ====================================

        Budget authority for vocational and adult education includes the
    following amounts:

                            [In millions of dollars]

    1. Vocational education:             1995 actual  1996 est.   1997 est.
        a. Basic grants.................         973
        b. Tech-prep education..........         108
        c. Tribally controlled
          postsecondary vocational
          institutions..................           3
        d. State councils...............           9
        e. National programs............          11
        f. Permanent appropriation......           7           7

    [[Page 406]]

        g. Vocational education programs                               1,120
    2. Adult education:
        a. State programs...............         252
        b. Evaluation and technical
          assistance....................           4
        c. National Institute for
          Literacy......................           5
        d. Workplace literacy
          partnerships..................          13
        e. Literacy programs for
          prisoners.....................           5
        f. Adult education programs.....                                 300
    3. Unallocated amount under P.L.
    104-99..............................                   1,163
                                        ------------------------------------
              Total.....................       1,390       1,170       1,420
                                        ====================================

        Vocational and adult education.--As part of the GI Bill for
    America's Workers initiative, which is designed to promote lifelong
    learning and economic security for all Americans, the Administration
    proposed in fiscal year 1996 to restructure Federal workforce-related
    education and training programs, including those under the Carl D.
    Perkins Vocational and Applied Technology Education Act, the Adult
    Education Act, and the National Literacy Act. As proposed by the
    Administration, State formula grant programs for vocational education
    and for adult education would be consolidated into a single State grant
    for each program. In addition, national activities for both vocational
    and adult education would support State efforts through research,
    development, technical assistance, and evaluation. The Administration
    and the Congress are currently working together to ensure that new
    legislation in support of this initiative is enacted in 1996.

        Pending enactment of the new legislation, the fiscal year 1997
    budget estimate reflects funding under current law. Funds will be
    allocated for specific activities once new legislation is enacted.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           1                       1
    25.1    Advisory and assistance services           4                       4
    25.2    Other services..................           3                       3
    25.3    Purchases of goods and services
              from Government accounts......           1                       1
    25.5    Research and development
              contracts.....................           2                       2
    41.0    Grants, subsidies, and
              contributions.................       1,448          60       1,416
    92.0    Undistributed...................                   1,163
                                               ---------   ---------  ----------

    99.0      Subtotal, direct obligations..       1,459       1,223       1,427
    99.0  Reimbursable obligations..........           1
    41.0  Allocation Account--Direct
            Obligations: Grants, subsidies,
            and contributions...............           1
                                               ---------   ---------  ----------

    99.9    Total obligations...............       1,461       1,223       1,427
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          13          11          10
    ---------------------------------------------------------------------------

                         Vocational And Adult Education

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0400-4-1-501      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Permanent appropriation...........                                  -7
                                               ---------   ---------  ----------

    10.00   Total obligations...............                                  -7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  -7
    23.95 New obligations...................                                   7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................                                  -7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                  -7
    73.20 Total outlays (gross).............                                   1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                  -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                  -1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                                  -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  -7
    90.00 Outlays...........................                                  -1
    ---------------------------------------------------------------------------

        The Smith-Hughes Act authorizes a permanent appropriation for four
    vocational education activities: Basic Grants, the Indian and Hawaiian
    Natives set-aside, the Territorial set-aside, and National Programs. The
    permanent appropriation is proposed for repeal, and an equivalent level
    of funding is included in the Administration's proposal to reauthorize
    and restructure the Carl D. Perkins Vocational and Applied Technology
    Education Act.

                        OFFICE OF POSTSECONDARY EDUCATION

                                  Federal Funds

    General and special funds:

                          Student Financial Assistance

        For carrying out subparts 1 and 3 of part A, and parts C and E of
    title IV of the Higher Education Act of 1965, as amended,
    $7,359,407,000, which shall remain available through September 30, 1998.
        The maximum Pell Grant for which a student shall be eligible during
    award year 1997-1998 shall be $2,700: Provided, That notwithstanding
    section 401(g) of the Act, if the Secretary determines, prior to
    publication of the payment schedule for such award year, that the amount
    included within this appropriation for Pell Grant awards in such award
    year, and any funds available from the FY 1996 appropriation for Pell
    Grant awards, are insufficient to satisfy fully all such awards for
    which students are eligible, as calculated under section 401(b) of the
    Act, the amount paid for each such award shall be reduced by either a
    fixed or variable percentage, or by a fixed dollar amount, as determined
    in accordance with a schedule of reductions established by the Secretary
    for this purpose.
        Note.--A regular 1996 appropration for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99. Of the 1996
    appropriation, ten percent is not available for obligation pending
    resolution of a full-year appropriation.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Pell grants:

    01.01   Current academic year program...       3,144       3,538       3,670
    01.02   Prior academic year program.....       2,675       3,561       2,169
                                               ---------   ---------  ----------

    01.91     Subtotal, Pell grants.........       5,819       7,099       5,839
          Campus-based aid:

    03.01   Work-study......................         620         617         679
    03.02   Supplemental educational
              opportunity grants............         588                     583
    03.03   Perkins loans: Federal capital
              contributions.................         161                     158
    03.04   Perkins loans: Teacher
              cancellations.................          26          20          20
                                               ---------   ---------  ----------

    03.91     Subtotal, Campus-based aid....       1,395         637       1,440
    04.01 State student incentive grants....          64
    05.01 State postsecondary review program          13
    06.01 Unallocated amount under P.L. 104-
            99..............................                   1,243
                                               ---------   ---------  ----------

    10.00   Total obligations...............       7,291       8,979       7,279
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................       3,074       3,561       2,169

    [[Page 407]]

    22.00 New budget authority (gross)......       7,586       7,586       7,359
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         196
    22.30 Unobligated balance expiring......          -4
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      10,852      11,147       9,528
    23.95 New obligations...................      -7,291      -8,979      -7,279
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....       3,561       2,169       2,249
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................       7,583       7,586       7,359
          Permanent:

    62.00   Transferred from other accounts.           3
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       7,586       7,586       7,359
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       3,334       3,363       4,902
    73.10 New obligations...................       7,291       8,979       7,279
    73.20 Total outlays (gross).............      -7,047      -7,440      -8,083
    73.40 Adjustments in expired accounts...         -19
    73.45 Adjustments in unexpired accounts.        -196
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       3,363       4,902       4,098
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       1,334         741       1,226
    86.93 Outlays from current balances.....       5,709       6,696       6,857
    86.97 Outlays from new permanent
            authority.......................           1
    86.98 Outlays from permanent balances...           3           3
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       7,047       7,440       8,083
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,586       7,586       7,359
    90.00 Outlays...........................       7,047       7,440       8,083
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       7,586       7,586       7,359
      Outlays...........................       7,047       7,440       8,083
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                    -453
      Outlays...........................                     -45        -394
                                        ------------------------------------
    Total:
      Budget Authority..................       7,586       7,133       7,359
      Outlays...........................       7,047       7,395       7,689
                                        ====================================
        \1\ The Ninth Continuing Resolution, P.L. 104-99, provides for a
    maximum Pell grant of ``at least $2,440.'' The preliminary Federal Pell
    Grant Program payment and disbursement schedules for 1996-97 are
    therefore calculated using a $2,400 maximum award. However, the
    President's 1996 policy for the Federal Pell Grant Program calls for a
    maximum award level of $2,620. The Pell grant estimates for 1996 are
    based on an assumed maximum award level of $2,620. Establishing this
    maximum award level would require the joint agreement of the
    Administration and the Congress.
        \2\ Includes obligations from budget authority in the amount of
    $3,165 thousand in 1994 and 1995 for benefits for participants in
    Operation Desert Shield/Desert Storm appropriated by transfer from the
    Department of Defense pursuant to P.L. 102-27, the Dire Emergency
    Supplemental Appropriations Act of 1991.
        \3\ Represents budget authority for benefits for participants in
    Operation Desert Shield/Desert Storm appropriated by transfer from the
    Department of Defense pursuant to P.L. 102-27, the Dire Emergency
    Supplemental Appropriations Act of 1991.

                   Status of Direct Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         323         187         189
    1251  Repayments: Repayments and
            prepayments.....................         -66         -51         -50
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................          -7          -8          -8
    1264  Write-offs for default: Other
            adjustments, net................         -63          61          61
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         187         189         192
    ---------------------------------------------------------------------------

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    41.0  Grants, subsidies, and
            contributions...................       7,291       7,736       7,279
    92.0  Undistributed.....................                   1,243
                                               ---------   ---------  ----------

    99.9    Total obligations...............       7,291       8,979       7,279
    ---------------------------------------------------------------------------
        \1\ Includes in all years institutional matching share of defaulted
    notes assigned from institutions to the Education Department.

        Federal Pell Grants.--Undergraduate students establish eligibility
    for these grants under award and need determination rules set out in the
    authorizing statute and the annual appropriation act. The maximum award
    for FY 1997 would be $2,700.

        Federal Work-Study.--Federal grants are awarded by formula to
    qualifying institutions, which develop and provide part-time jobs for
    eligible undergraduate and graduate students with demonstrated need.
    Federal grants in most cases pay 75 percent of a student's hourly
    earnings, with the remainder paid by the employer. Hourly earnings must
    not be less than the Federal minimum wage. Institutions are required to
    spend at least 5 percent of their Work-Study allocation to pay students
    working in community service jobs. The President is proposing to
    increase funding for Work-Study over the next four years to help one
    million students per year work their way through college by the year
    2000.

        Federal Supplemental Educational Opportunity Grants.--Federal funds
    are awarded by formula to qualifying institutions, which use these funds
    at their discretion to award grants to undergraduate students, with
    priority for Pell Grant recipients and others with exceptional need. The
    Federal share of such grants may not exceed 75 percent of the total
    grant.

        Perkins Loan Program.--Schools award loans from revolving funds,
    composed of Federal Capital Contributions, collections on prior year
    loans, and Federal payments for loan cancellations granted in exchange
    for specified types of teaching, military or public service.

        Perkins Loans--Cancellations.--Under the Perkins Loan (formerly
    national direct student loan (NDSL)) cancellation program, institutional
    revolving funds are reimbursed for indebtedness cancelled as a result of
    a borrower engaging in certain public service occupations.

        The Higher Education Amendments of 1992 broadened statutory
    cancellations in the Perkins Loan program. This has resulted in a
    progressive increase in the usage of cancellations provisions by Perkins
    Loan borrowers in recent years.

        Gatekeeping in Student Financial Assistance Programs.--The Federal
    student aid programs will make available more than $41 billion in grant,
    loan, and work-study assistance to about 7.3 million students in the
    academic year 1997-98. The Department of Education, together with States
    and accrediting agencies, works to ensure that institutions of higher
    education participating in the Federal student aid programs meet a basic
    standard of quality in the education and training of their students, and
    that these institutions are administratively capable and financially
    responsible.

        Since 1993, the Department has terminated the participation of more
    than 300 institutions that have violated the Federal regulations. In
    1997, the Department plans to complete its recertification of all
    institutions currently eligible to participate. It also plans to develop
    a system of risk analysis that will better enable the Department to
    identify institutions with potentially serious problems, and to improve
    major elements of its information management system, including the
    National Student Loan Data System and the Postsecondary Education
    Participants System.

        The Department also plans to provide regulatory relief--such as less
    frequent recertification, less frequent submission of compliance audits,
    and exemption from certain regulatory requirements--to institutions that
    have demonstrated outstanding administration of federal programs and
    strong financial responsibility.

        In addition, the Department helps students make better decisions by
    requiring schools to provide important informa

    [[Page 408]]
    tion about their education programs. It enforces long-standing statutory
    requirements for institutions to inform prospective students of
    educational programs, college costs, and financial aid. Final
    regulations to implement the Student Right to Know Act, published in
    1995, require institutions to disclose completion and graduation rates
    for students who enter the institution after July 1, 1996.

        The following tables display student aid funds available, the number
    of aid awards, average awards, and the unduplicated count of students
    receiving awards, based on current law and legislation proposed for
    later transmittal. The tables include aid under the Federal Family
    Education Loan (FFEL) program, formerly the Guaranteed Student Loan
    (GSL) program, the William D. Ford Direct Loan (DL) Program, as well as
    under programs in this account. The tables include the effects of
    matching funds wherever applicable. Perkins loan amounts also reflect
    available capital in institutional revolving funds, including loan
    collection and loan cancellation receipts. FFEL and DL amounts reflect
    the capital actually loaned, not the Federal costs of those loans.

          AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Pell Grants.........................       5,426       6,170       6,406
    Student loans:
      Guaranteed student loans:
        Stafford loans..................      11,086       8,843       7,859
        Unsubsidized Stafford loans.....       5,989       4,688       4,137
        PLUS............................       1,445       1.229       1,198
      Direct student loans:
        Stafford loans..................       3,181       6,229       7,750
        Unsubsidized Stafford loans.....       1,499       3,213       4,168
        PLUS............................         480         949       1,243
      Consolidation
        FFEL............................       3,117       4,031       4,510
        Direct Loans....................         329         882       1,599
                                        ------------------------------------
            Student loans, subtotal.....      27,126      30,064      32,464
    Work-study..........................         760         760         837
    Supplemental educational opportunity
    grants..............................         738          NA         738
    Perkins loans.......................         999          NA        1058
    State student incentive grants......         127          NA
                                        ------------------------------------
            Total aid available.........      35,176          NA      41,503
                                        ====================================
        Note: 1996 amounts not available for SEOG, Perkins loans, and SSIG
    pending final appropriations.

                              NUMBER OF AID AWARDS

                                 [In thousands]

                                         1995 actual  1996 est.   1997 est.
    Pell grants.........................       3,600       3,712       3,755
    Student loans:
      Guaranteed student loans:
        Stafford loans..................       3,392       2,592       2,197
          Unsubsidized Stafford loans...       1,673       1,290       1,087
          PLUS..........................         267         212         190
      Direct student loans:
        Stafford loans..................         824       1,669       2,137
        Unsubsidized Stafford loans.....         393         834       1,086
        PLUS............................          81         156         200
      Consolidation:
        FFEL............................         208         234         246
        Direct Loans....................          32         106         140
                                        ------------------------------------
            Student loans, subtotal.....       6,870       7,101       7,282
      Work-study........................         713         713         786
      Supplemental educational
        opportunity grants..............         991          NA         991
      Perkins loans.....................         744          NA         788
      State student incentive grants....         211          NA
                                        ------------------------------------
            Total awards................      13,129          NA      13,603
                                        ====================================
        Note: 1996 amounts not available for SEOG, Perkins loans, and SSIG
    pending final appropriations.

                               AVERAGE AID AWARDS

                               [In whole dollars]

                                         1995 actual  1996 est.   1997 est.
    Pell grants.........................       1,507       1,662       1,706
    Student loans:
      Guaranteed student loans:
        Stafford loans..................       3,268       3,412       3,578
        Unsubsidized Stafford loans.....       3,581       3,634       3,805
        PLUS............................       5,409       5,794       6,308
      Direct student loans:
        Stafford loans..................       3,862       3,733       3,627
        Unsubsidized Stafford loans.....       3,814       3,854       3,837
        PLUS............................       5,910       6,074       6,229
      Consolidation:
        FFEL............................      15,005      16,576      18,356
        Direct Loans....................      10,281       8,358      11,349
    Work-study..........................       1,065       1,065       1,065
    Supplemental educational opportunity
    grants..............................         745         745         745
    Perkins loans.......................       1,342       1,342       1,342
    State student incentive grants......         600         600

                            NUMBER OF STUDENTS AIDED

                                 [In thousands]

                                         1995 actual  1996 est.   1997 est.
    Unduplicated student count..........       6,986          NA       7,284

        Note: 1996 count data not available pending final appropriations.

        The following table displays institutional administrative costs paid
    from program funds.

                     ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Pell grants.........................          18          19          19
    Work-study..........................          47          47          52
    Supplemental educational opportunity
    grants..............................          30          NA          30
    Perkins loans.......................          40          NA          42
    Direct student loans................          10          20          32
        Note: 1996 amounts not available for SEOG, Perkins loans, and SSIG
    pending final appropriations.

        The following table displays the status of defaulted Perkins loans
    held by the Department and by institutions.

                             DEFAULTED PERKINS LOANS

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Outstanding defaulted loans,
        beginning of year:
      Assigned defaulted loans \1\......         323         187         189
      Unassigned defaulted loans \2\....         744         754         764
    New defaulted loans.................          34         159         162
    Collections on assigned loans.......         -66         -51         -50
    Collections on unassigned loans.....         -82         -84         -88
    Write-offs for assigned loans.......          -7          -8          -8
    Write-offs for unassigned loans.....          -4          -4          -4
                                        ------------------------------------
    Outstanding defaulted loans, end of
    year................................       1,263       1,140       1,156
                                        ====================================
        \1\ Permanently assigned to the Federal Government for collection.
    Does not include the following amounts in loans made to institutions to
    establish Perkins revolving funds: $94 thousand in 1995, $94 thousand in
    1996, and $94 thousand in 1997. These amounts are recorded as
    outstanding loans in the ``Status of Direct Loans'' schedule.
        \2\ Unassigned loans at institutions.

                                Higher Education

        For carrying out, to the extent not otherwise provided, titles III
    (without regard to section 360(a)(1)(B)(ii)), IV, V, VI, VII, IX, and
    part A and subpart 1 of part B of title X of the Higher Education Act of
    1965, as amended (HEA); and the Mutual Educational and Cultural Exchange
    Act of 1961, $842,771,000, of which $2,015,000 for endowment activities
    under part C of title III and $15,673,000 for interest subsidies under
    title VII of HEA shall remain available until expended: Provided, That
    funds available for part C of title III of HEA shall be available only
    for awards to recipients that are title III, part B institutions, as
    defined in section 322(2): Provided further, That funds available for
    Part D of title IX of HEA shall be available to fund noncompeting
    continuation awards for academic year 1997-98 for fellowships awarded
    originally under parts B and C of title IX of HEA, under the terms and
    conditions of parts B and C, respectively.

        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the

    [[Page 409]]
    levels provided in three continuing resolutions: P.L. 104-91, P.L 104-
    92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Aid for institutional development:

    00.01   Strengthening historically Black
              colleges and universities.....         129                     129
    00.02   Strengthening institutions......          80                      40
    00.03   Strengthening Hispanic serving
              institutions..................          12                      12
    00.04   Endowment challenge grants......           9          15           2
    00.05   Evaluation......................           1
                                               ---------   ---------  ----------

    00.91     Subtotal, aid for
                institutional development...         231          15         183
          Other aid for institutions:

    01.01   Program development.............         116                      85
    01.02   Interest subsidy grants.........          18           1          16
    01.03   Special grants..................           4           4
                                               ---------   ---------  ----------

    01.91     Subtotal, other aid for
                institutions................         138           5         101
          Aid for students:

    02.01   Federal TRIO programs...........         463                     500
    02.02   Scholarships....................          35                      29
    02.03   Graduate fellowships............          44                      30
    02.04   School, college and university
              partnerships..................           4
    02.05   Legal training for the
              disadvantaged.................           3
                                               ---------   ---------  ----------

    02.91     Subtotal, aid for students....         549                     559
    03.01 Unallocated amount under P.L. 104-
            99..............................                     758
                                               ---------   ---------  ----------

    10.00   Total obligations...............         918         778         843
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          20          20
    22.00 New budget authority (gross)......         919         758         843
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.30 Unobligated balance expiring......          -2
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         938         778         843
    23.95 New obligations...................        -918        -778        -843
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         919         758         843
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         950         974         856
    73.10 New obligations...................         918         778         843
    73.20 Total outlays (gross).............        -871        -896        -803
    73.40 Adjustments in expired accounts...         -24
    73.45 Adjustments in unexpired accounts.          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         974         856         896
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          87         104         113
    86.93 Outlays from current balances.....         784         792         690
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         871         896         803
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         919         758         843
    90.00 Outlays...........................         871         896         803
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................         919         758         843
      Outlays...........................         871         896         803
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 130
      Outlays...........................                                  16
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                      13
      Outlays...........................                       2           9
                                        ------------------------------------
    Total:
      Budget Authority..................         919         771         973
      Outlays...........................         871         898         828
                                        ====================================

        Aid for institutional development.--
            Strengthening historically Black colleges and universities.--
        Funds support grants to help historically Black undergraduate and
        graduate institutions equalize educational opportunity and
        strengthen their management and fiscal operations so that they may
        eventually become self-sufficient.
            Strengthening institutions.--Funds support planning and
        development grants for improving academic programs and financial
        management at schools that enroll high proportions of disadvantaged
        students and have low per-student expenditures.
            Strengthening Hispanic-serving institutions.--Funds support
        Hispanic-serving institutions to enable them to improve and expand
        their capacity to serve Hispanic and low-income students.
            Endowment challenge grants.--Funds support endowment challenge
        grants for historically Black colleges and universities to enable
        such institutions to establish or increase institutional endowment
        funds.

        Other aid for institutions.--
            Program development.--Funds support: the Fund for the
        Improvement of Postsecondary Education (FIPSE), to address problems
        and encourage improvements in postsecondary education; the minority
        science improvement program, to improve science education at
        predominantly minority institutions; international education and
        foreign language study programs, to help strengthen American
        education in foreign languages and area and international studies
        and to provide research and study opportunities in foreign countries
        for American graduate students, faculty members, and teachers of
        foreign languages; and minority teacher recruitment, to encourage
        minorities to enter teaching careers.
            Interest subsidy grants.--Funds meet mandatory interest subsidy
        costs of construction loan commitments made prior to 1974.

        Aid for students.--
            Federal TRIO programs.--Funds support: undergraduate outreach
        programs to help individuals from disadvantaged backgrounds enter
        and complete college; the student support services program to assist
        postsecondary students from disadvantaged backgrounds who need
        academic support to successfully complete their education; the
        McNair postbaccalaureate program, to provide support to
        disadvantaged groups underrepresented in graduate education; and
        staff training, to provide training opportunities for staff employed
        in or preparing for employment in TRIO programs. Funds also support
        the continuation of an evaluation of the TRIO programs.
            Scholarships.--Funds support: Byrd honors scholarships for
        outstanding students who show promise of continued excellence.
            Graduate fellowships.--Funds support graduate assistance in
        areas of national need, to provide fellowships to financially needy
        graduate students who are studying in areas of national need, to
        underrepresented groups pursuing masters degrees and professional
        study, and to students of superior ability completing graduate-level
        education.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           2           1           1
    25.2  Other services....................           2           2           2
    25.3  Purchases of goods and services
            from Government accounts........           1
    41.0  Grants, subsidies, and
            contributions...................         913          17         840
    92.0  Undistributed.....................                     758
                                               ---------   ---------  ----------

    99.9    Total obligations...............         918         778         843
    ---------------------------------------------------------------------------

    [[Page 410]]

                                Higher Education

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-2-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Presidential honors scholarships..                                 130
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................                                 130
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 130
    23.95 New obligations...................                                -130
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 130
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 130
    73.20 Total outlays (gross).............                                 -16
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                 114
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  16
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                                  16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 130
    90.00 Outlays...........................                                  16
    ---------------------------------------------------------------------------

        Presidential Honors Scholarships.--In his State of the Union
    address, the President called for this new legislative initiative to
    reward the best and the brightest of graduating high school students.
    Under this program, $1,000 merit-based scholarships will be extended to
    the top five percent of graduating students in every secondary school in
    the Nation for their use at the postsecondary institution of their
    choice. It is the aim of this program to encourage and reward students
    for their academic excellence and achievement. Individual high schools
    would have sole responsibility in the selection of recipients.

                                Howard University

        For partial support of Howard University (20 U.S.C. 121 et seq.),
    $195,965,000, including at least $3,530,000 for the endowment program:
    Provided, That, of the amounts available for the endowment program,
    $3,530,000 shall remain available until expended, for a matching
    endowment grant to be administered in accordance with the Howard
    University Endowment Act (Public Law 95-480).
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0603-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Academic program..................         157
    00.02 Endowment program.................           2           4
    00.03 Research..........................           5
    00.04 Howard University Hospital........          29                      29
    00.05 Construction......................          11
    00.06 Law School Clinical Center........           6
    00.07 Unallocated amount under P.L. 104-
            99..............................                     170
    00.08 Undistributed.....................                                 167
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................         210         174         196
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           9           4
    22.00 New budget authority (gross)......         205         170         196
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         214         174         196
    23.95 New obligations...................        -210        -174        -196
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         205         170         196
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          15          14          15
    73.10 New obligations...................         210         174         196
    73.20 Total outlays (gross).............        -210        -175        -199
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          14          15          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         184         157         184
    86.93 Outlays from current balances.....          24          18          15
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         210         175         199
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         205         170         196
    90.00 Outlays...........................         210         175         199
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................         205         170         196
      Outlays...........................         208         175         199
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                      17
      Outlays...........................                      16           1
                                        ------------------------------------
    Total:
      Budget Authority..................         205         187         196
      Outlays...........................         208         191         200
                                        ====================================

        Howard University is a private, nonprofit educational institution
    consisting of 17 schools and colleges. Federal funds are used to provide
    partial support for university programs as well as for the teaching
    hospital facilities. In 1995, direct Federal appropriations for the
    academic and research programs represented 53 percent of the
    university's educational and general expenditures.

    Credit accounts:

                   Federal Direct Student Loan Program Account

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    02.01 Direct loan subsidy...............         810         427          88
    02.02 Reestimates of subsidy............          11        -271
                                               ---------   ---------  ----------

    02.91   Subtotal, subsidy cost..........         821         156          88
    07.09 Student loan administrative
            expenses........................         383         550         595
                                               ---------   ---------  ----------

    10.00   Total obligations...............       1,204         706         683
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          95
    22.00 New budget authority (gross)......       1,105         706         683
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,204         706         683
    23.95 New obligations...................      -1,204        -706        -683
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................         284         550         595
    60.05 Appropriation (indefinite)........         821         156          88
                                               ---------   ---------  ----------

    [[Page 411]]

    63.00   Appropriation (total)...........       1,105         706         683
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       1,105         706         683
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         105         465         558
    73.10 New obligations...................       1,204         706         683
    73.20 Total outlays (gross).............        -840        -613        -722
    73.45 Adjustments in unexpired accounts.          -4
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         465         558         519
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         325         433         522
    86.97 Outlays from new permanent
            authority.......................         453                       9
    86.98 Outlays from permanent balances...          62         180         191
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         840         613         722
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,105         706         683
    90.00 Outlays...........................         840         613         722
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       1,105         706         683
      Outlays...........................         840         613         722
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                    -124        -139
      Outlays...........................                     -68        -121
                                        ------------------------------------
    Total:
      Budget Authority..................       1,105         582         544
      Outlays...........................         840         545         601
                                        ====================================

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Stafford..........................       3,659       6,336       7,898
    1150  Unsubsidized Stafford.............       1,834       3,282       4,266
    1150  PLUS..............................         457       1,003       1,319
    1150  Consolidated......................       1,653         886       1,618
                                               ---------   ---------  ----------

    1159    Total direct loan levels........       7,603      11,507      15,101
        Direct loan subsidy (in percent):
    1320  Stafford..........................       17.51       13.29       10.38
    1320  Unsubsidized Stafford.............       -2.92       -8.68      -11.77
    1320  PLUS..............................       -5.35       -8.24       -9.36
    1320  Consolidated......................       10.93       -5.29       -6.59
                                               ---------   ---------  ----------

    1329    Weighted average subsidy rate...        9.48        3.71        0.58
        Direct loan subsidy budget authority:
    1330  Stafford..........................         747         842         820
    1330  Unsubsidized Stafford.............          28        -285        -502
    1330  PLUS..............................         -40         -83        -123
    1330  Consolidated......................          52         -47        -107
    1330  Reestimates of subsidy............           5        -271
                                               ---------   ---------  ----------

    1339    Total subsidy budget authority..         792         156          88
        Direct loan subsidy outlays:
    1340  Stafford..........................         495         747         820
    1340  Unsubsidized Stafford.............          30        -191        -413
    1340  PLUS..............................         -30         -58        -102
    1340  Consolidated......................           8         -47        -105
    1340  Reestimates of subsidy............          12        -271
                                               ---------   ---------  ----------

    1349    Total subsidy outlays...........         515         180         200
    ----------------------------------------------------------------------------

        Student loan administrative expense data:
    3510  Budget authority..................         284         550         595
    3590  Outlays...........................         325         433         522
    ---------------------------------------------------------------------------

        The Federal Government operates two major student loan programs: the
    Federal Family Education Loan (FFEL) program--formerly the Guaranteed
    Student Loan (GSL) program--and the William D. Ford Direct Loan (Direct
    Loan) program. The President is committed to allowing individual
    institutions to choose which of these two programs best meets their
    needs and the needs of their students.

        This summary section outlines the structure of these two programs,
    highlights their differences and similarities, and provides text tables
    displaying program cost data; loan volume, subsidy, default, and
    interest rates; and other descriptive information. As part of his
    January 1996 seven-year balanced budget plan, the President proposed a
    number of relatively small policy changes for the Direct Loan and FFEL
    programs. These changes are discussed as part of this program
    description.

        From its inception in 1965 through 1995, the FFEL program has
    provided over $196 billion in loans to postsecondary students and their
    parents. Since beginning on July 1, 1994, the Direct Loan program has
    provided over $7 billion in loans to students and parents. Taken
    together, the FFEL and Direct Loan programs will make over $30 billion
    available in FY 1996. Because funding for these two programs is provided
    on a permanent indefinite basis, for budget purposes they are considered
    separately from other Federal student financial assistance programs. The
    FFEL and Direct Loan programs should be viewed in combination with these
    other programs, however, and with Perkins Loans in particular, as part
    of the overall Federal effort to ensure access to higher education.

        The Direct Loan program was created by the Student Loan Reform Act
    (SLRA) of 1993. Under this program, the Federal Government provides
    funds to postsecondary institutions to originate loans. Direct Loans
    offer a streamlined system that is simpler for student and parent
    borrowers, less prone to waste and abuse, and less expensive for the
    Federal taxpayer than the FFEL program. The program also offers flexible
    repayment options that allow borrowers to consider lower-paying careers,
    such as public service, without fear of default. In addition, at the
    time SLRA was passed in 1993, a gradual phase-in of direct lending was
    projected to save $4 billion over five years.

        Loan capital in the FFEL program is provided by private lenders. The
    FFEL program primarily is administered by State and private nonprofit
    guaranty agencies that serve as intermediate loan insurers, collect
    defaulted loans, and provide various other services to lenders. The
    Government provides substantial subsidies to these guaranty agencies.
    The Government also pays interest subsidies to lenders for certain
    borrowers, as well as most costs associated with loan defaults and other
    write-offs.

        The SLRA established statutory participation goals for the Direct
    Loan program of 40 percent of overall new loan volume in academic year
    1995-1996, 50 percent of overall loan volume in academic years 1996-1997
    and 1997-1998, and 60 percent of overall loan volume beginning in
    academic year 1998-1999. In addition to these goals, beginning in
    academic year 1996-1997, any eligible institution will be able to
    participate in the Direct Loan program.

        The Direct Loan and FFEL programs share many basic elements. Each
    program offers four types of loans: Stafford, Unsubsidized Stafford,
    PLUS for parents, and Consolidation. Evidence of financial need is
    required for a student to receive a subsidized Stafford loan. The other
    three loan programs are available to borrowers at all income levels.
    Loans can be used only to meet qualified educational expenses.

        For new Stafford Loans, the interest rate equals the 91-day Treasury
    bill rate plus 2.5 percent during in-school, grace, and deferment
    periods, and the 91-day Treasury bill plus 3.1 percent at all other
    times, with a cap of 8.25 percent. Interest payments for these loans are
    fully subsidized by the Government while a student is in school and
    during grace and deferment periods. Unsubsidized Stafford loans carry
    the same interest rate as Stafford loans, but have no interest subsidy.
    For PLUS loans, the interest rate equals the 52-

    [[Page 412]]
    week Treasury bill rate plus 3.1 percent, with a cap of 9 percent and no
    interest subsidy.

        Consolidation loans allow borrowers to combine loans made under
    Title IV of the Higher Education Act--FFEL, Direct Loans, and Perkins
    Loans--as well as some loans made under the Public Health Service Act.
    Under FFEL, the interest rate for loans made on or after July 1, 1994,
    equals the weighted average of the interest rate on the loans
    consolidated, rounded upward to the nearest whole percent. Lenders may
    choose to offer a lower rate. Direct Consolidation loans carry the
    variable Stafford interest rate.

        Origination/insurance fees for each loan type are essentially the
    same across the two programs. Direct Loan borrowers are charged an
    origination fee equal to 4 percent of principal, which partially offsets
    Federal program operation costs. FFEL borrowers pay an origination fee
    to the Government equal to 3 percent of principal, and are also liable
    for a guaranty agency insurance premium of up to 1 percent of principal.
    For both programs, the Government is liable for 100 percent of cost
    related to death, disability, and bankruptcy.

        Loan limits are also identical across the two programs. As part of
    his balanced budget plan, the President has proposed a $15,000 annual
    limit on borrowing for an individual student under the PLUS loan
    program. (There is currently no limit on borrowing under this program.)

        In addition to these common elements, the Direct Loan and FFEL
    programs each have a number of unique provisions. For Direct Loans, the
    Government provides assistance to institutions for originating loans,
    including alternative origination services for institutions that are
    unable or unwilling to perform these functions. The Government has paid
    institutions that choose to originate loans $10 per borrower as
    compensation for their administrative expenses. As part of his balanced
    budget plan, the President has proposed to eliminate this payment.

        Borrowers under Direct Loans may choose from among five repayment
    plans including income-contingent repayment (``Pay-as-you-can''), under
    which annual repayment amounts vary based on the income of the borrower
    and the amount borrowed and payments can be made over an extended period
    of time of up to 25 years. Borrowers may switch between repayment plans
    at any time. (Income-contingent repayment is not available to Direct
    PLUS borrowers).

        For the FFEL program, lenders may receive a quarterly interest
    subsidy, called a special allowance, from the Government to ensure a
    guaranteed rate of return on their loans. Special allowance payments
    vary by loan type, are determined quarterly, and are based on current
    borrower interest rates and market-yield formulas. For recent Stafford
    and Unsubsidized Stafford loans, for example, the Federal Government
    must pay lenders a special allowance if the average 91-day Treasury bill
    rate for a given quarter plus 3.1 percent--or 2.5 percent during in-
    school, grace, or deferment periods--is higher than the current interest
    rate charged borrowers.

        The FFEL program includes a number of fees on lenders, holders of
    Consolidation loans, and the Student Loan Marketing Association (Sallie
    Mae). As part of his balanced budget plan, the President has proposed
    the following changes to these fees: (1) the current fee lenders pay
    upon originating a loan would be increased from 0.5 percent of principal
    to 0.8 percent of principal; (2) a new semiannual fee equal to 0.035
    percent of outstanding principal would be applied to all holders of
    subsidized and unsubsidized Stafford and PLUS loans originated after
    July 1, 1996; and (3) the current Sallie Mae offset fee, which is equal
    to 0.3 percent of outstanding principal held by the association, would
    be extended to all other participants in the student loan secondary
    market, including subsidiaries and related companies.

        The President has proposed a number of changes to the FFEL program's
    default management system. Supplemental preclaims assistance payments to
    guaranty agencies, which have proven ineffective in achieving their
    intended goal of enhancing agency default prevention activities, would
    be eliminated. In order to share the financial risk associated with
    defaults more broadly across FFEL program participants, the lender
    default insurance rate would be reduced from 98 percent to 95 percent,
    and the maximum reinsurance rate for guaranty agencies would be lowered
    from 98 percent to 96 percent.

        The President has also proposed to reduce the amount guaranty
    agencies may retain from default collection to cover their collection
    costs from 27 percent to 18.5 percent of the amount collected. In
    addition, the President has proposed to codify current Government
    regulations allowing guaranty agencies to retain up to 18.5 percent of
    new Consolidation loans for which the underlying loans were in default.

        Lastly, the President has proposed the return to the Government of a
    portion of guaranty agency reserve funds that he has determined are no
    longer needed. This policy would be phased in over six years.

        In order to ensure the uninterrupted availability of loan funds for
    students and parents, Congress provided permanent funding to support
    student loan administration and expenses. These funds support Department
    personnel and contractors for Direct Loan origination and servicing as
    well as certain costs associated with activities common to Direct Loans,
    FFEL and other student assistance programs, such as application printing
    and processing. The President believes that the current services level
    of this permanent appropriation could be reduced. Discretionary funds
    requested for the FFEL program support Department personnel and
    administrative activities associated with operating the program.

        The following tables display projected overall Direct Loan and FFEL
    costs; loan volume, number of loans, and average loan amount;
    descriptive data, and program activity under the President's budget and
    legislative request.

                       Funding Levels (In thousands of dollar)

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    Budget Authority:
    FFEL:
      Liquidating \1\.......................   1,080,615     302,714    -179,711
      Program \2\...........................   3,418,620   2,964,492   1,918,154
                                               ---------   ---------  ----------

          Subtotal, FFEL....................   4,499,235   3,267,206   1,738,443
    Direct Loans:
      Program \2\...........................     821,656     138,426      53,023
    Administration:
      FFEL \3\..............................      62,096      46,572      46,572
      Student Aid Management \4\............     164,574     249,627     221,512
      Direct Loans..........................     118,990     195,372     269,488
                                               ---------   ---------  ----------

          Subtotal, Administration..........     345,660     491,571     537,572
          Total, FFEL and Direct Loans......   5,666,551   3,897,203   2,329,038
    Outlays:
    FFEL:
      Liquidating \1\.......................   1,588,590      73,542    -280,997
      Program \2\...........................   3,537,307   2,249,927   1,875,699
                                               ---------   ---------  ----------

          Subtotal, FFEL....................   5,125,897   2,323,469   1,594,702
    Direct Loans:
      Program \2\...........................     515,153     210,190     172,773
    Administration:
      FFEL \3\..............................      62,527      47,990      47,302
      Student Aid Management \4\............     255,734     233,330     210,809
      Direct Loans..........................      69,024     142,749     215,908
                                               ---------   ---------  ----------

          Subtotal, Administration..........     387,285     424,069     474,019
                                               ---------   ---------  ----------

          Total, FFEL and Direct Loans......   6,028,335   2,957,728   2,241,494
    ---------------------------------------------------------------------------
        \1\ Liquidating account reflects loans made prior to 1992.
        \2\ Program account totals for 1996 reflect adjustments resulting from
    reestimates of prior year costs.

    [[Page 413]]

        \3\ Reflects annual discretionary appropriation.
        \4\ Supports administrative expense allowance payments to FFEL guaranty
    agencies, as well as a range of administrative activities, such as
    application printing, mailing, and processing, that are common to all
    Federal student financial assistance programs.

       Summary of Loans Available (net commitments in millions of dollars) \1\

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................      11,086       8,843       7,859
      Unsubsidized Stafford.................       5,989       4,688       4,137
      PLUS..................................       1,445       1,229       1,198
                                               ---------   ---------  ----------

          Total, FFEL.......................      18,519      14,760      13,193
    Direct Loans:
      Stafford..............................       3,181       6,229       7,750
      Unsubsidized Stafford.................       1,499       3,213       4,168
      PLUS..................................         480         949       1,243
                                               ---------   ---------  ----------

          Total, Direct Loans...............       5,161      10,391      13,161
    Consolidated Loans:
      FFEL..................................       3,117       4,031       4,510
      Direct Loans..........................         329         882       1,599
                                               ---------   ---------  ----------

          Total, Consolidated Loans.........       3,446       4,913       6,109
                                               ---------   ---------  ----------

          Total, All Loans..................      27,126      30,064      32,464
    ---------------------------------------------------------------------------
        \1\ Net commitments equal gross commitments minus loan cancellations.

                           Number of Loans (In thousands)

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................       3,392       2,592       2,197
      Unsubsidized Stafford.................       1,673       1,290       1,087
      PLUS..................................         267         212         190
                                               ---------   ---------  ----------

          Total, FFEL.......................       5,332       4,094       3,474
    Direct Loans:
      Stafford..............................         824       1,669       2,137
      Unsubsidized Stafford.................         393         834       1,086
      PLUS..................................          81         156         200
                                               ---------   ---------  ----------

          Total, Direct Loans...............       1,298       2,659       3,423
    Consolidated Loans:
      FFEL..................................         208         243         246
      Direct Loans..........................          32         106         140
                                               ---------   ---------  ----------

          Total, Consolidated Loans.........         240         349         386
                                               ---------   ---------  ----------

          Total, All Loans..................       6,870       7,101       7,282
    ---------------------------------------------------------------------------

                        Average Loan Size (in whole dollars)

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................       3,268       3,412       3,578
      Unsubsidized Stafford.................       3,581       3,634       3,805
      PLUS..................................       5,409       5,794       6,308
                                               ---------   ---------  ----------

          Weighted Average, FFEL............       3,473       3,605       3,798
    Direct Loans:
      Stafford..............................       3,862       3,733       3,627
      Unsubsidized Stafford.................       3,814       3,854       3,837
      PLUS..................................       5,910       6,074       6,229
                                               ---------   ---------  ----------

          Weighted Average, Direct Loans....       3,975       3,908       3,845
    Consolidated Loans:
      FFEL..................................      15,005      16,576      18,356
      Direct Loans..........................      10,281       8,358      11,394
                                               ---------   ---------  ----------

          Weighted Average, Consolidated
            Loans...........................      14,374      14,089      15,825
                                               ---------   ---------  ----------

          Weighted Average, All Loans.......       3,948       4,234       4,458
    ---------------------------------------------------------------------------

     Summary of Subsidy Rates, Default Rates, Interest Rates, and Discount Rates

    ----------------------------------------------------------------------------
                                            1995 actual    1996 est.   1997 est.
    ----------------------------------------------------------------------------
    Subsidy Rates (in percent) \1\
    FFEL:
      Stafford..............................      25.02        21.40       19.77
      Unsubsidized Stafford.................       7.77         5.10        5.05
      PLUS..................................       3.58         2.25        1.71
      Consolidation.........................       6.66        -0.34       -0.94
                                            -----------  -----------  ----------
        Weighted Average, FFEL..............      16.24        11.60       10.04
    Direct Loans:
      Stafford..............................      17.51        13.13       10.17
      Unsubsidized Stafford.................      -2.92        -8.83      -12.15
      PLUS..................................      -5.35        -8.34       -9.49
      Consolidation.........................      10.93        -5.49       -6.59
                                            -----------  -----------  ----------
        Weighted Average, Direct Loans......       9.48         3.55        0.35
    Default Rates (in percent) \2\
    FFEL:
      Stafford..............................      23.47        23.47       23.47
      Unsubsidized Stafford.................      16.90        16.57       16.41
      PLUS..................................       9.00         9.00        9.00
      Consolidation.........................      10.50        10.50       10.50
                                            -----------  -----------  ----------
        Weighted Average, FFEL..............      18.82        18.02       17.54
    Direct Loans:
      Stafford..............................      21.95        21.74       21.74
      Unsubsidized Stafford.................      15.81        15.35       15.20
      PLUS..................................       9.00         9.00        9.00
      Consolidation.........................      10.50        10.50       10.50
                                            -----------  -----------  ----------
        Weighted Average, Direct Loans......      18.43        17.94       17.58
    Borrower Interest Rates (in percent)
    FFEL:
      Stafford..............................       8.25         8.25        7.79
      Unsubsidized Stafford.................       8.25         8.25        7.79
      PLUS..................................       9.00         8.44        8.05
      Consolidation \3\.....................
    Direct Loans:
      Stafford..............................       8.25         8.25        7.79
      Unsubsidized Stafford.................       8.25         8.25        7.79
      PLUS..................................       9.00         8.44        8.05
      Consolidation \3\.....................
    Federal Borrowing Rate for Direct Loans
        (in percent)........................       7.26         5.84        5.49
    ----------------------------------------------------------------------------
        \1\ Subsidy rates represent the Federal portion of non-administrative costs--
    principally interest subsidies and defaults--associated with each borrowed dollar.
    For example, a $1,000 loan with Federal subsidy costs of $100 would have a subsidy
    rate of 10 percent.
        \2\ Default rates displayed in this table, which reflect projected defaults over
    the life of a loan cohort, are used in developing program cost estimates. The
    Department uses other rates based on defaults occurring in the first three years of
    repayment, which tend to be slightly lower than those included in this table, to
    determine institutional eligibility to participate in Federal loan programs.
        \3\ Interest rates under the FFEL Consolidation Loan program reflect a weighted
    average of the rates of the loans consolidated, rounded upward to the nearest whole
    percentage. For the Direct Loan Consolidation Loan program, loans consolidated from
    the Stafford Loan program are charged the Stafford Loan interest rate. Loans
    consolidated from the Stafford and Unsubsidized Stafford Loan programs are charged
    the Unsubsidized Stafford interest rates. Loans consolidated from the PLUS program
    are charged the PLUS interest rates.

            Composition of Default Collections (In thousands of dollars)

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    FFEL:
      Collections by Guaranty Agencies \1\..   1,005,827     865,548     878,301
      Collections by Department of Education     537,259     462,329     469,142
      Internal Revenue Service Tax Refund
        Offsets.............................     519,350     446,918     453,503
                                               ---------   ---------  ----------

          Total, FFEL.......................   2,062,436   1,774,795   1,800,946
    Direct Loans:
      Collections by Department of Education           2          99       1,180
      Internal Revenue Service Tax Refund
        Offsets.............................
                                               ---------   ---------  ----------

          Total, Direct Loans...............           2          99       1,180
                                               ---------   ---------  ----------

          Total, FFEL and Direct Loans......   2,062,438   1,774,894   1,802,126
    ---------------------------------------------------------------------------
        \1\ These figures show total collections by guaranty agencies. Actual
    Federal revenues resulting from these collections are lower than the figures
    shown here because agencies retain 27 percent of the amount collected.

       Projected Participation in Direct Loan Repayment \1\ (In thousands of
                                      dollars)

    ----------------------------------------------------------------------------
                                             1995 cohort 1996 cohort 1997 cohort
    ----------------------------------------------------------------------------
    Standard:
      Percent of Direct Loan Volume \2\.....       41.81       41.81       41.81
      Maximum Term (in years)...............          10          10          10
      Subsidy Rate (in percent) \3\.........       10.92        4.49        2.19
      Budget Authority......................     408,331     246,775     163,918
      Outlays...............................     259,746     260,509     174,081
    Extended: \4\
      Percent of Direct Loan Volume \2\.....       13.58       13.58       13.58
      Subsidy Rate (in percent) \3\.........        8.03        3.08        0.44
      Budget Authority......................      92,564      44,437       7,980
      Outlays...............................      56,176      54,160      19,990
    Graduated: \4\
      Percent of Direct Loan Volume \2\.....       28.05       28.05       28.05
      Subsidy Rate (in percent) \3\.........        6.94        1.90       -0.84
      Budget Authority......................     179,899      56,609     -31,669

    [[Page 414]]

      Outlays...............................     109,179      91,107       3,227
    Income-Contingent:
      Percent of Direct Loan Volume \2\.....       16.56       16.56       16.56
      Maximum Term (in years)...............          25          25          25
      Subsidy Rate (in percent) \3\.........       10.77        3.87       -4.33
      Budget Authority......................     129,249      61,605     -87,206
      Outlays...............................      78,440      75,414     -24,525
    Total:
      Percent of Direct Loan Volume \2\.....      100.00      100.00      100.00
      Subsidy Rate (in percent) \3\.........        9.48        3.55        0.35
      Budget Authority......................     810,043     409,426      53,023
      Outlays...............................     503,540     481,190     172,773
    ---------------------------------------------------------------------------
        \1\ No data are included for the Alternative repayment plan. Borrowers
    are not expected to participate in this plan due to the flexibility
    available under the other options. BA and outlay amounts do not reflect re-
    estimates for prior-year cohorts.
        \2\ Percent of Direct Loan Volume represents aggregate data. Individual
    borrowers may move between plans over time.
        \3\ Subsidy rate reflects weighted average for four loan types:
    Stafford, Unsubsidized Stafford, PLUS, and Consolidation Loans.
        \4\ Maximum terms under the Extended and Graduated repayment plans
    reflect the following ``classes'' based on borrower debt levels.
      Debt Level:                       Maximum Term
                                         (in years)  Percent of
                                                       Volume
                                                       Within
                                                      Affected
                                                        Plans
      Below $10,000.....................          12       57.57
      $10,000-$20,000...................          15       24.28
      $20,000-$40,000...................          20       14.56
      $40,000-$60,000...................          25        2.22
      Above $60,000.....................          30        1.37

        Subsidy costs for the FFEL and Direct Loan programs are estimated in
    accordance with procedures set out in the Credit Reform Act of 1990.
    Subsidy costs for each loan type are estimated separately and, because
    costs can vary widely within a program depending on the characteristics
    of the individual borrower, cost estimates are aggregated from data for
    homogeneous groups within risk categories.

        Default rates are a major cause of differences in subsidy between
    risk categories. The default rates in the following tables reflect
    estimates of the percent of borrowers who will default over the lifetime
    of the loans. These estimates are revised annually based on an analysis
    of default trends prepared each year by an independent auditor. Within
    each risk group, it is assumed that borrowers choosing similar repayment
    plans will have similar default rates, regardless of whether they borrow
    under the FFEL or Direct Loan program.

        The risk group data below also reflect proposed policy changes and
    interest rate projections in the President's 1997 Budget. These factors
    substantially decrease subsidy rates across years in the FFEL program.
    Subsidy rates in the Direct Loan program are also significantly reduced,
    primarily as a result of interest rate projections.

                   DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       23.36       17.37       13.31
      Category 2: 4 year college, all
        other students..................       14.94       11.10        8.51
      Category 3: 2 year school, all
        students........................       22.98       17.06       13.08
      Category 4: Proprietary school,
        all students....................       23.27       17.30       13.26

                        Gross Default Rates (in percent)

    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       27.57       26.40       25.70
      Category 2: 4 year college, all
        other students..................       14.69       14.07       13.70
      Category 3: 2 year school, all
        students........................       36.39       34.85       33.91
      Category 4: Proprietary school,
        all students....................       41.99       40.21       39.13

                           UNSUBSIDIZED STAFFORD LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       -2.27       -7.15      -10.24
      Category 2: 4 year college, all
        other students..................       -3.29      -10.37      -14.86
      Category 3: 2 year school, all
        students........................       -1.32       -4.16       -5.96
      Category 4: Proprietary school,
        all students....................       -0.48       -1.50       -2.14

                        Gross Default Rates (in percent)

      Category 1: 4 year college, 1st
        and 2nd year students...........       27.57       26.40       25.70
      Category 2: 4 year college, all
        other students..................       14.69       14.07       13.70
      Category 3: 2 year school, all
        students........................       36.39       34.85       33.91
      Category 4: Proprietary school,
        all students....................       41.99       40.21       39.13

                                   PLUS LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
    All PLUS loans......................       -5.35       -8.34       -9.49

                         Gross Default Rate (in percent)

    All PLUS loans......................        9.00        9.00        9.00

                               CONSOLIDATED LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
    All consolidated loans..............       10.93       -5.49       -6.59

                         Gross Default Rate (in percent)

    All consolidated loans..............       10.50       10.50       10.50

                    FFEL LOAN RISK CATEGORIES: STAFFORD LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       32.37       27.67       25.79
      Category 2: 4 year college, all
        other students..................       20.70       17.68       16.48
      Category 3: 2 year school, all
        students........................       31.82       27.11       25.26
      Category 4: Proprietary school,
        all students....................       32.23       27.47       25.59

                        Gross Default Rates (in percent)

    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........       27.57       26.40       25.70
      Category 2: 4 year college, all
        other students..................       14.69       14.07       13.70
      Category 3: 2 year school, all
        students........................       36.39       34.85       33.91
      Category 4: Proprietary school,
        all students....................       41.99       40.21       39.13

                           UNSUBSIDIZED STAFFORD LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
    Risk Categories:
      Category 1: 4 year college, 1st
        and 2nd year students...........        9.41        6.21        7.14
      Category 2: 4 year college, all
        other students..................        1.82        1.20        1.37
      Category 3: 2 year school, all
        students........................       19.89       13.09       15.07
      Category 4: Proprietary school,
        all students....................       29.24       19.23       22.13

                        Gross Default Rates (in percent)

      Category 1: 4 year college, 1st
        and 2nd year students...........       27.57       26.40       25.70
      Category 2: 4 year college, all
        other students..................       14.69       14.07       13.70
      Category 3: 2 year school, all
        students........................       36.39       34.85       33.91
      Category 4: Proprietary school,
        all students....................       41.99       40.21       39.13

                                   PLUS LOANS

               Subsidy Rates (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
      All PLUS loans....................        3.58        2.25        1.71

                         Gross Default Rate (in percent)

      All PLUS loans....................        9.00        9.00        9.00

                               CONSOLIDATED LOANS

               Subsidy Rate (as a percentage of loan commitments)

                                         1995 actual  1996 est.   1997 est.
      All consolidated loans............        6.66       -0.34       -0.94

                        Gross Default Rates (in percent)

      All consolidated loans............       10.50       10.50       10.50

           Summary of Program Costs and Offsets (In thousands of dollars)

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    Interest subsidy costs:
      FFEL:
        Interest benefits...................   2,171,426   1,986,013   1,746,511
        Special allowance...................     159,107     126,713     114,622
                                               ---------   ---------  ----------

          Total FFEL........................   2,330,533   2,112,726   1,861,133
        Direct Loans \1\....................      34,673     163,578     670,765
    Default costs and offsets:
      Default costs \2\:
        FFEL................................   1,306,175   1,554,000   2,065,932
        Direct Loans........................      14,154      12,542      52,350

    [[Page 415]]

      Gross default collections:
        FFEL................................    -247,430     -59,397    -102,376
        Direct Loans........................          -3         -99      -1,180
      Default collection costs:
        FFEL:
          Contract collection costs.........       7,089       2,749       4,636
          Guaranty agency retention.........      37,521       9,007      15,525
                                               ---------   ---------  ----------

            Total, FFEL collect costs.......      44,610      11,756      20,161
        Direct Loans:
          Collection costs \3\..............         488          22         267
      Net default costs \4\:
        FFEL................................   1,103,355   1,506,359   1,983,717
        Direct Loans........................      14,639      12,465      51,437
    Death, disability, and bankruptcy costs:
        FFEL................................      16,472      99,343     130,429
        Direct Loans........................           0       4,305      12,355
    Other write-offs \5\, \6\..........       9,418      28,841      50,037
    Administrative Costs:
      Federal administration:
        FFEL................................      62,527      47,990      47,302
        Direct Loans \7\....................     324,758     375,000     427,000
      Guaranty agency administrative
        payments
        Student Aid Management \8\..........     219,978     175,918     135,742
      Supplemental preclaims assistance \5\.       7,503       5,810
      Payments for origination services \9\.      13,927      10,438       5,138
    Fees:
      Borrower origination fees:
        FFEL................................    -710,302    -444,081    -434,010
        Direct Loans........................     -90,667    -354,527    -513,906
        Lender origination fee \5\..........    -114,627     -90,438    -109,723
        Loan holder's fee \5\...............                  -6,443     -16,432
        State default fees \5\..............                 -38,984     -85,405
        Sallie Mae offset fee \5\...........     -10,263     -18,669     -27,341
        Consolidation loan holder fees \5\..     -56,691     -96,125    -136,007
        \1\ This represents net interest costs associated with Direct Loans.
        \2\ Default costs under FFEL reflect claims paid to guaranty agencies.
    Default costs under Direct Loans reflect non-repayment of defaulted loans.
        \3\ In the budget schedules, Direct Loan collections are displayed net
    of collection costs.
        \4\ Net default costs equal default claims minus net collections (gross
    collections minus contract collection costs and guaranty agency retention).
        \5\ Applies to FFEL program only.
        \6\ Includes repayment of agency advances, elimination of excess agency
    reserves, through direct payments to the Government and reduced reinsurance
    payments to the agencies, and purchase of rehabilitated loans by the
    agencies.
        \7\ A number of expenses related to the management of the student
    assistance programs are paid out of Student Loan administration funds. The
    largest of these, administrative expense allowances to guaranty agencies, is
    shown as a separate line.
        \8\ Administrative Expense Allowances paid from Student Loan
    administrative funds.
        \9\ Applies to Direct Loans only.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          15          23          25
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------

    11.9      Total personnel compensation..          16          24          26
    12.1  Civilian personnel benefits.......           2           5           6
    13.0  Benefits for former personnel.....           1
    21.0  Travel and transportation of
            persons.........................           2           4           4
    23.1  Rental payments to GSA............           3           5           5
    23.3  Communications, utilities, and
            miscellaneous charges...........           5          16          17
    24.0  Printing and reproduction.........           9           9          10
    25.1  Advisory and assistance services..           2           2           2
    25.2  Other services....................         116         290         365
    25.3  Purchases of goods and services
            from Government accounts........           2           2           2
    26.0  Supplies and materials............           2           1           1
    31.0  Equipment.........................           2           2           2
    33.0  Investments and loans.............         822         156          88
    41.0  Grants, subsidies, and
            contributions...................         220         190         155
    99.5  Below reporting threshold.........
                                               ---------   ---------  ----------

    99.9    Total obligations...............       1,204         706         683
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         322         496         520
    ---------------------------------------------------------------------------

                   Federal Direct Student Loan Program Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-4-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    02.01 Direct loan subsidy...............                     -18         -35
    02.02 Reestimates of subsidy............
                                               ---------   ---------  ----------

    02.91   Subtotal, subsidy cost..........                     -18         -35
    07.09 Student loan administrative
            expenses........................                    -106        -104
                                               ---------   ---------  ----------

    10.00   Total obligations...............                    -124        -139
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                    -124        -139
    23.95 New obligations...................                     124         139
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.00 Appropriation.....................                    -106        -104
    60.05 Appropriation (indefinite)........                     -18         -35
                                               ---------   ---------  ----------

    63.00   Appropriation (total)...........                    -124        -139
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................                    -124        -139
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                 -56
    73.10 New obligations...................                    -124        -139
    73.20 Total outlays (gross).............                      68         121
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                     -56         -74
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                     -58         -95
    86.97 Outlays from new permanent
            authority.......................                     -10         -21
    86.98 Outlays from permanent balances...                                  -5
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                     -68        -121
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                    -124        -139
    90.00 Outlays...........................                     -68        -121
    ---------------------------------------------------------------------------

        A description of the Administration's proposed legislation to modify
    the Direct Loan program is included under the Federal Direct Student
    Loan program account.

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-4-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy (in percent):
    1320  Stafford..........................                  -16.00      -21.00
    1320  Unsubsidized Stafford.............                  -15.00      -38.00
    1320  PLUS..............................                  -10.00      -13.00
    1320  Consolidated......................                  -20.00        0.00
                                               ---------   ---------  ----------

    1329    Weighted average subsidy rate...                  -15.00      -23.00
        Direct loan subsidy budget authority:
    1330  Stafford..........................                     -10         -17
    1330  Unsubsidized Stafford.............                      -5         -16
    1330  PLUS..............................                      -1          -2
    1330  Consolidated......................                      -2
                                               ---------   ---------  ----------

    1339    Total subsidy budget authority..                     -18         -35
        Direct loan subsidy outlays:
    1340  Stafford..........................                      -6         -14
    1340  Unsubsidized Stafford.............                      -2         -11
    1340  PLUS..............................                      -1          -1
    1340  Consolidated......................                      -1
                                               ---------   ---------  ----------

    1349    Total subsidy outlays...........                     -10         -26
    ----------------------------------------------------------------------------

        Student loan administrative expense data:
    3510  Budget authority..................                    -106        -104
    3590  Outlays...........................                     -58         -95
    ---------------------------------------------------------------------------

    [[Page 416]]

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-4-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    23.3  Communications, utilities, and
            miscellaneous charges...........                                  -3
    24.0  Printing and reproduction.........                      -3
    25.2  Other services....................                     -87         -79
    33.0  Investments and loans.............                     -18         -35
    41.0  Grants, subsidies, and
            contributions...................                     -16         -22
                                               ---------   ---------  ----------

    99.9    Total obligations...............                    -124        -139
    ---------------------------------------------------------------------------

             Federal Direct Student Loan Program, Financing Account

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct loans:

    01.01   Stafford........................       3,659       6,229       7,750
    01.02   Unsubsidized Stafford...........       1,834       3,213       4,168
    01.03   PLUS............................         457         949       1,243
    01.04   Consolidated....................       1,653         882       1,599
                                               ---------   ---------  ----------

    01.91     Subtotal, direct loans
                obligations.................       7,603      11,273      14,760
          Payment of origination services:

    02.01   Stafford........................           8          14          17
    02.02   Unsubsidized Stafford...........           4           7           8
    02.03   PLUS............................           1           1           2
    02.04   Consolidated....................           1           6           5
                                               ---------   ---------  ----------

    02.91   Subtotal, Payment of origination
              services......................          14          28          32
    03.01 Interest on Treasury borrowing....         383         441       1,028
                                               ---------   ---------  ----------

    10.00   Total obligations...............       8,000      11,742      15,820
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...       7,811      12,013      15,820
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         189
    22.60 Redemption of debt................                    -271
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       8,000      11,742      15,820
    23.95 New obligations...................      -8,000     -11,742     -15,820
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..       6,793      11,541      14,668
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         947         926       1,780
    68.10   Change in orders on hand from
              Federal sources...............         307        -177        -108
    68.47   Portion applied to debt
              reduction.....................        -235        -277        -520
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................       1,019         472       1,152
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................       7,811      12,013      15,820
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Unpaid
              obligations...................         673       4,545       4,156
    72.95   Orders on hand from Federal
              sources.......................          61         368         191
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............         734       4,913       4,347
    73.10 New obligations...................       8,000      11,742      15,820
    73.20 Total financing disbursements
            (gross).........................      -3,633     -12,308     -14,816
    73.45 Adjustments in unexpired accounts.        -189
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance:
              Unpaid obligations............       4,545       4,156       5,268
    74.95   Orders on hand from Federal
              sources.......................         368         191          83
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................       4,913       4,347       5,351
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       3,633      12,308      14,816
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
                Payments from subsidy
                  account:

    88.00         Stafford..................        -495        -747        -820
    88.00         Unsubsidized Stafford.....         -31         191         413
    88.00         PLUS......................          30          58         102
    88.00         Consolidated..............          -8          47         105
    88.00         Volume Reestimate.........         -12         271
              Interest on uninvested funds:
    88.25       Stafford....................        -183
    88.25       Unsubsidized Stafford.......         -78
    88.25       PLUS........................         -36
              Non-Federal sources:
                Stafford loans:.............
    88.40         Repayment of principal....          -4         -33        -123
    88.40         Interest received on loans                     -56        -169
    88.40         Fees......................         -53        -206        -288
    88.40         Recoveries of defaults....                                  -1
                Unsubsidized Stafford loans:
    88.40         Repayment of principal....          -5         -31        -101
    88.40         Interest received on loans          -4         -48        -136
    88.40         Fees......................         -25        -106        -153
    88.40         Repayment of principal....          -8         -50        -120
              PLUS loans:
    88.40       Interest received on loans..          -8         -60        -127
    88.40       Fees........................          -8         -31         -45
    88.40       Payment of Principal........         -12         -52        -142
    88.40       Interest received on loans..          -2         -61        -148
    88.40       Fees........................          -5         -12         -27
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -947        -926      -1,780
    88.95 Change in receivables from program
            accounts........................        -307         177         108
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       6,557      11,264      14,148
    90.00 Financing disbursements...........       2,686      11,382      13,036
    ---------------------------------------------------------------------------

                   Status of Direct Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Stafford
          Position with respect to appropriations act
              limitation on obligations:

    1111    Limitation on direct loans......
    1131    Direct loan obligations exempt
              from limitation...............       3,659       6,229       7,750
                                               ---------   ---------  ----------

    1150      Total direct loan obligations.       3,659       6,229       7,750
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......         294       1,558       6,656
    1231    Disbursements: Direct loan
              disbursements.................       1,273       5,139       7,194
    1251    Repayments: Repayments and
              prepayments...................          -4         -33        -123
            Write-offs for default:
    1263      Direct loans..................                      -6         -26
    1264      Other adjustments, net........          -5          -2          -5
                                               ---------   ---------  ----------

    1290      Outstanding, end of year......       1,558       6,656      13,696
    ----------------------------------------------------------------------------

        Unsubsidized Stafford
          Position with respect to appropriations act
              limitation on obligations:

    1131    Direct loan obligations exempt
              from limitation...............       1,834       3,213       4,168
            Total direct loan obligations:
                                               ---------   ---------  ----------

    1150        Total direct loan
                  obligations...............       1,834       3,213       4,168
    1150      Total direct loan obligations.       1,834       3,213       4,168
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......         141         708       3,474
    1231    Disbursements: Direct loan
              disbursements.................         553       2,802       3,835
    1251    Repayments: Repayments and
              prepayments...................          -5         -31        -101
            Write-offs for default:
    1263      Direct loans..................                      -4         -16
    1264      Other adjustments, net........          19          -1          -3
                                               ---------   ---------  ----------

    1290      Outstanding, end of year......         708       3,474       7,189
    ----------------------------------------------------------------------------

        PLUS
          Position with respect to appropriations act
              limitation on obligations:

    1131    Direct loan obligations exempt
              from limitation...............         457         949       1,243
            Total direct loan obligations:
                                               ---------   ---------  ----------

    1150        Total direct loan
                  obligations...............         457         949       1,243
    1150      Total direct loan obligations.         457         949       1,243
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......          42         225         950
    1231    Disbursements: Direct loan
              disbursements.................         188         777       1,135
    1251    Repayments: Repayments and
              prepayments...................          -8         -50        -120

    [[Page 417]]

            Write-offs for default:
    1263      Direct loans..................                      -1          -4
    1264      Other adjustments, net........           3          -1          -2
                                               ---------   ---------  ----------

    1290      Outstanding, end of year......         225         950       1,959
    ----------------------------------------------------------------------------

        Consolidated
          Position with respect to appropriations act
              limitation on obligations:

    1131    Direct loan obligations exempt
              from limitation...............       1,653         882       1,599
            Total direct loan obligations:
                                               ---------   ---------  ----------

    1150        Total direct loan
                  obligations...............       1,653         882       1,599
    1150      Total direct loan obligations.       1,653         882       1,599
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......                     310       1,138
    1231    Disbursements: Direct loan
              disbursements.................         318         882       1,599
    1251    Repayments: Repayments and
              prepayments...................         -12         -52        -142
            Write-offs for default:
    1263      Direct loans..................         -14          -1          -6
    1264      Other adjustments, net........          18          -1          -2
                                               ---------   ---------  ----------

    1290      Outstanding, end of year......         310       1,138       2,587
    ---------------------------------------------------------------------------

                                 Balance Sheet (In millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4253-0-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         531          4,913         4,510          5,477
          Net value of assets related to
              post-1991 direct loans
              receivable:

            Direct loans receivable, gross:
    1401      Stafford......................         192          1,558         6,656         13,696
    1401      Unsubsidized Stafford.........          81            708         3,474          7,189
    1401      PLUS..........................          38            225           950          1,959
    1401      Consolidated..................                        310         1,138          2,587
    1405    Allowance for subsidy cost (-)..         -26           -553          -354           -208
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         285          2,248        11,864         25,223
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         816          7,161        16,374         30,700
        LIABILITIES:
    2103  Federal liabilities: Debt.........         787          6,793        16,051         20,145
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         787          6,793        16,051         20,145
        NET POSITION:
    3100  Appropriated capital..............          29            368           323         10,555
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          29            368           323         10,555
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         816          7,161        16,374         30,700
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from Direct Loans. The amounts in this account are a means of
    financing and are not included in the budget totals.

             Federal Direct Student Loan Program, Financing Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-4-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Payment of origination services:

    02.01   Stafford........................                     -10         -17
    02.02   Unsubsidized Stafford...........                      -5          -8
    02.03   PLUS............................                      -1          -2
    02.04   Consolidated....................                      -2
                                               ---------   ---------  ----------

    02.91     Subtotal, Payment of
                origination services........                     -18         -27
    03.01 Interest on Treasury borrowing....                                  -1
                                               ---------   ---------  ----------

    10.00   Total obligations...............                     -18         -28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                     -18         -28
    23.95 New obligations...................                      18          28
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                      15          35
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                     -10         -26
    68.10   Change in orders on hand from
              Federal sources...............                      -5          -9
    68.47   Portion applied to debt
              reduction.....................                     -18         -28
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................                     -33         -63
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................                     -18         -28
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Unpaid
              obligations...................                                   8
    72.95   Orders on hand from Federal
              sources.......................                                  -5
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............                                   3
    73.10 New obligations...................                     -18         -28
    73.20 Total financing disbursements
            (gross).........................                      21          25
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance:
              Unpaid obligations............                       8          14
    74.95   Orders on hand from Federal
              sources.......................                      -5         -14
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................                       3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                   1
                                               ---------   ---------  ----------

    87.00   Total financing disbursements
              (gross).......................                     -21         -25
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
                Payments from subsidy
                  account:

    88.00         Stafford..................                       6          14
    88.00         Unsubsidized Stafford.....                       2          11
    88.00         PLUS......................                       1           1
    88.00         Consolidated..............                       1
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                      10          26
    88.95 Change in receivables from program
            accounts........................                       5           9
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      -3           7
    90.00 Financing disbursements...........                     -11           1
    ---------------------------------------------------------------------------

                                 Balance Sheet (In millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4253-4-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                       -3            -11
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1405    Allowance for subsidy cost (-)..                                       11             26
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                       11             26
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                        8             15
        LIABILITIES:
    2103  Federal liabilities: Debt.........                                       12             24
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                       12             24
        NET POSITION:
    3100  Appropriated capital..............                                       -4             -9
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                       -4             -9
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                        8             15
    -----------------------------------------------------------------------------------------------

                  Federal Family Education Loan Program Account

        For Federal administrative expenses to carry out guaranteed student
    loans authorized by title IV, part B, of the Higher Education Act, as
    amended, $46,572,000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.
        Note.--The following tables display the program account which
    includes the subsidy costs and administrative expenses associated with
    guaranteed student loan commitments beginning in 1992.

    [[Page 418]]

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Guaranteed loan subsidy:

    02.01   Stafford........................       2,526       2,277       1,963
    02.02   Unsubsidized Stafford...........         274         355         311
    02.03   PLUS............................          23          46          45
    02.05   Consolidated....................         130           6           3
    02.07   Upward reestimate (92 cohort)...         421         565
    02.08   Interest on reestimate..........          45          30
                                               ---------   ---------  ----------

    02.91     Subtotal, subsidy cost........       3,419       3,279       2,322
          Administrative expenses:

    07.01   Administrative expenses due to
              limitations...................          62          47          47
                                               ---------   ---------  ----------

    10.00   Total obligations...............       3,481       3,326       2,369
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....
    22.00 New budget authority (gross)......       3,481       3,326       2,369
    22.10 Resources available from
            recoveries of prior year
            obligations.....................
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       3,481       3,326       2,369
    23.95 New obligations...................      -3,481      -3,326      -2,369
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation (Federal
              Administration)...............          62          47          47
          Permanent:

    60.05   Appropriation (indefinite)......       3,419       3,279       2,322
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       3,481       3,326       2,369
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation       1,121       1,002       1,251
    73.10 New obligations...................       3,481       3,326       2,369
    73.20 Total outlays (gross).............      -3,600      -3,076      -2,269
    73.45 Adjustments in unexpired accounts.
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation       1,002       1,251       1,351
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          41          32          33
    86.93 Outlays from current balances.....       1,108         960         958
    86.97 Outlays from new permanent
            authority.......................       2,452       2,084       1,279
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       3,600       3,076       2,269
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,481       3,326       2,369
    90.00 Outlays...........................       3,600       3,076       2,269
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................       3,481       3,326       2,369
      Outlays...........................       3,601       3,076       2,270
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                    -314        -404
      Outlays...........................                    -779        -347
                                        ------------------------------------
    Total:
      Budget Authority..................       3,481       3,012       1,965
      Outlays...........................       3,601       2,297       1,923
                                        ====================================

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Stafford..........................      11,130       9,746       8,627
    2150  Unsubsidized Stafford.............       5,581       5,226       4,594
    2150  PLUS..............................       1,391       1,400       1,359
    2150  Consolidated......................       1,501       4,061       4,534
                                               ---------   ---------  ----------

    2159    Total loan guarantee levels.....      19,603      20,433      19,114
        Guaranteed loan subsidy (in percent):
    2320  Stafford..........................       25.02       23.37       22.75
    2320  Unsubsidized Stafford.............        7.77        6.80        6.77
    2320  PLUS..............................        3.58        3.27        3.33
    2320  Consolidated......................        6.66        0.16        0.06
                                               ---------   ---------  ----------

    2329    Weighted average subsidy rate...       16.24       13.14       12.15
        Guaranteed loan subsidy budget authority:
    2330  Stafford..........................       2,526       2,277       1,963
    2330  Unsubsidized Stafford.............         274         355         311
    2330  PLUS..............................          23          46          45
    2330  Consolidated......................         130           6           3
    2330  Upward Reestimate.................         465         595
                                               ---------   ---------  ----------

    2339    Total subsidy budget authority..       3,418       3,279       2,322
        Guaranteed loan subsidy outlays:
    2340  Stafford..........................       2,684       2,058       1,885
    2340  Unsubsidized Stafford.............         242         331         294
    2340  PLUS..............................          15          38          40
    2340  SLS...............................           2
    2340  Consolidated......................         128           6           3
    2340  Upward reestimate.................         465         595
                                               ---------   ---------  ----------

    2349    Total subsidy outlays...........       3,536       3,028       2,222
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................          62          47          47
    3590  Outlays...........................          63          48          47
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this program
    account records for this program the subsidy costs associated with
    Federal Family Education Loans (FFEL), formerly guaranteed student loans
    (GSL), committed in 1992 and beyond, as well as certain administrative
    expenses of the program. Administrative expenses include discretionary
    expenses for salaries, expenses and overhead of employees working
    directly on the program. Beginning with the 1993 cohort, mandatory
    administrative costs, specifically contract collection costs and
    supplemental pre-claims assistance, are included in the FFEL subsidy
    estimates of each year's cohort. The subsidy amounts are estimated on a
    net present value basis.

        A description of the FFEL program and accompanying tables are
    included under the Federal Direct Student Loan program account.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          20          15          15
                                               ---------   ---------  ----------

    11.9      Total personnel compensation..          20          15          15
    12.1  Civilian personnel benefits.......           4           4           4
    13.0  Benefits for former personnel.....           1
    21.0  Travel and transportation of
            persons.........................           2           1           1
    23.1  Rental payments to GSA............           3           2           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    24.0  Printing and reproduction.........           3           2           2
    25.1  Advisory and assistance services..           1
    25.2  Other services....................          23          20          20
    25.3  Purchases of goods and services
            from Government accounts........           2           1           1
    26.0  Supplies and materials............           1
    31.0  Equipment.........................           1
    41.0  Grants, subsidies, and
            contributions...................       3,419       3,279       2,322
    99.5  Below reporting threshold.........                       1
                                               ---------   ---------  ----------

    99.9    Total obligations...............       3,481       3,326       2,369
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         446         330         315
    ---------------------------------------------------------------------------

    [[Page 419]]

                  Federal Family Education Loan Program Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-4-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Guaranteed loan subsidy:

    02.01   Stafford........................                    -192        -257
    02.02   Unsubsidized Stafford...........                     -88         -79
    02.03   PLUS............................                     -14         -22
    02.05   Consolidated....................                     -20         -46
                                               ---------   ---------  ----------

    10.00   Total obligations...............                    -314        -404
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                    -314        -404
    23.95 New obligations...................                     314         404
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........                    -314        -404
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                 465
    73.10 New obligations...................                    -314        -404
    73.20 Total outlays (gross).............                     779         347
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                     465         408
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from current balances.....                                -103
    86.97 Outlays from new permanent
            authority.......................                    -779        -244
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                    -779        -347
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                    -314        -404
    90.00 Outlays...........................                    -779        -347
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-4-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Guaranteed loan subsidy (in percent):
    2320  Stafford..........................                   -1.97       -2.98
    2320  Unsubsidized Stafford.............                   -1.70       -1.72
    2320  PLUS..............................                   -1.02       -1.62
    2320  Consolidated......................                   -0.50       -1.00
                                               ---------   ---------  ----------

    2329    Weighted average subsidy rate...                   -1.54       -2.11
        Guaranteed loan subsidy budget authority:
    2330  Stafford..........................                    -192        -257
    2330  Unsubsidized Stafford.............                     -88         -79
    2330  PLUS..............................                     -14         -22
    2330  Consolidated......................                     -20         -46
    2330  Upward Reestimate.................                    -595
                                               ---------   ---------  ----------

    2339    Total subsidy budget authority..                    -909        -404
        Guaranteed loan subsidy outlays:
    2340  Stafford..........................                    -107        -210
    2340  Unsubsidized Stafford.............                     -50         -74
    2340  PLUS..............................                      -7         -17
    2340  Consolidated......................                     -20         -46
    2340  Upward reestimate.................                    -595
                                               ---------   ---------  ----------

    2349    Total subsidy outlays...........                    -779        -347
    ---------------------------------------------------------------------------

        A description of the Administration's proposed legislation to modify
    the Federal Family Education Loan program is included under the Federal
    Direct Student Loan program account.

            Federal Family Education Loan Program, Financing Account

        Note.--The financing account includes all cash flows to and from the
    government from guaranteed student loans committed after 1991.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.01   Interest benefits...............       2,162       1,986       1,746
    01.02   Special allowance...............         152         125         115
    01.03   Default claims..................         805       1,038       1,373
    01.04   Death, disability, and
              bankruptcy claims.............          16          94         121
    01.06   Supplemental preclaims
              assistance....................           5           5           7
    01.07   Contract collection costs.......           5           1           1
                                               ---------   ---------  ----------

    01.91     Subtotal, Stafford loans......       3,145       3,249       3,363
          Unsubsidized Stafford loans:

    02.02   Special allowance...............           4
    02.03   Default claims..................          54          99         252
    02.04   Death, disability, and
              bankruptcy claims.............           4           8          21
    02.06   Supplemental preclaims
              assistance....................                       1           1
    02.07   Contract collection costs.......           1
                                               ---------   ---------  ----------

    02.91     Subtotal, Unsubsidized
                Stafford loans..............          63         108         274
    03.02 Special Allowance.................           2
    03.03 Default claims....................         110          76         118
    03.04 Death, disability, and bankruptcy
            claims..........................           3          24          42
    03.06 Supplemental preclaims assistance.           1                       1
                                               ---------   ---------  ----------

    03.91   Subtotal, PLUS loans............         116         100         161
    04.02 Special Allowance.................           1
    04.03 Default claims....................         308         262         132
    04.04 Death, disability and bankruptcy
            claims..........................           2           2           2
    04.06 Supplemental preclaims assistance.           2           2           1
    04.07 Contract collection costs.........           1           2           3
                                               ---------   ---------  ----------

    04.91   Subtotal, SLS loans.............         314         268         138
    05.01 Interest benefits.................           9
    05.03 Default claims....................          29         100         235
    05.04 Death, disability, and bankruptcy
            claims..........................           1           8          13
    05.06 Supplemental preclaims assistance.                                   1
                                               ---------   ---------  ----------

    05.91   Subtotal, Consolidations loans..          39         108         249
    07.01 Interest paid to Treasury.........         118          86          53
                                               ---------   ---------  ----------

    10.00   Total obligations...............       3,795       3,919       4,238
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....       6,359       7,884       7,813
    22.00 New financing authority (gross)...       5,302       3,847       3,393
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          19
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......      11,680      11,731      11,206
    23.95 New obligations...................      -3,795      -3,919      -4,238
    24.90 Unobligated balance available, end
            of year: Fund balance...........       7,884       7,813       6,968
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       5,773       4,298       3,717
    68.47   Portion applied to debt
              reduction.....................        -471        -451        -323
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................       5,302       3,847       3,394
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................       5,302       3,847       3,393
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.                     552         575
    73.10 New obligations...................       3,795       3,919       4,238
    73.20 Total financing disbursements
            (gross).........................      -3,224      -3,895      -4,185
    73.45 Adjustments in unexpired accounts.         -19
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance:
            Uninvested balance..............         552         575         628
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       3,224       3,895       4,185
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
                Payment from subsidy
                  account:

    88.00         Stafford loans............      -2,684      -2,067      -1,788
    88.00         Unsubsidized Stafford.....        -242        -319        -279

    [[Page 420]]

    88.00         PLUS loans................         -15         -40         -40
    88.00         SLS.......................          -2
    88.00         Consolidated loans........        -128          -6          -3
    88.00         Upward reestimate.........        -465        -595
    88.00         Scheduled payments from
                    Liquidating account for
                    noncontractual
                    modifications...........        -589        -538        -376
    88.25     Interest on uninvested funds:
                Stafford loans..............        -507        -344        -342
              Non-Federal sources:
                Stafford loans:

    88.40         Recoveries on defaults....        -174         -12         -34
    88.40         Origination fees..........        -416         -77        -287
    88.40         Sallie Mae offset fees....                     -44         -49
    88.40         State default fees........                     -39         -85
    88.40       Unsubsidized Stafford--
                  Recoveries on defaults....          -8                      -1
    88.40         Origination fees..........        -158         -42        -164
    88.40       PLUS--Recoveries on defaults         -15          -1          -3
    88.40         Origination fees..........        -208         -12         -42
    88.40       SLS--Recoveries on defaults.         -48         -46         -64
    88.40         Origination fees..........         -88
    88.40       Consolidated--Recoveries on
                  defaults..................          -3
    88.40         Origination fees..........         -23         -20         -23
    88.40         Consolidated Loan Holders
                    Fee.....................                     -96        -136
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........      -5,773      -4,298      -3,716
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............        -471        -451        -323
    90.00 Financing disbursements...........      -2,549        -403         469
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        STAFFORD
          Position with respect to appropriations act
              limitation on commitments:

    2131    Guaranteed loan commitments
              exempt from limitation........      11,130       9,746       8,627
                                               ---------   ---------  ----------

    2150      Total guaranteed loan
                commitments.................      11,130       9,746       8,627
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......      28,016      37,830      45,080
    2231    Disbursements of new guaranteed
              loans.........................      12,424       8,581       8,189
    2251    Repayments and prepayments......      -1,821        -199      -1,834
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..        -773      -1,038      -1,369
    2263      Terminations for default that
                result in claim payments....         -16         -94        -121
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......      37,830      45,080      49,945
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year      37,830      45,080      49,945
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....         377         955       1,980
    2331      Disbursements for guaranteed
                loan claims.................         773       1,038       1,369
    2351      Repayments of loans receivable        -174         -12         -34
    2361      Write-offs of loans receivable         -21          -1          -4
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....         955       1,980       3,311
    ----------------------------------------------------------------------------

        UNSUBSIDIZED STAFFORD
          Position with respect to appropriations act
              limitation on commitments:

    2131    Guaranteed loan commitments
              exempt from limitation........       5,581       5,226       4,594
                                               ---------   ---------  ----------

    2150      Total guaranteed loan
                commitments.................       5,581       5,226       4,594
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......       3,128       7,210      10,920
    2231    Disbursements of new guaranteed
              loans.........................       4,247       4,050       3,677
    2251    Repayments and prepayments......        -112        -236        -257
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..         -49         -96        -237
    2263      Terminations for default that
                result in claim payments....          -4          -8         -21
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......       7,210      10,920      14,082
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year       7,210      10,920      14,082
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....           5          45         141
    2331      Disbursements for guaranteed
                loan claims.................          49          96         237
    2351      Repayments of loans receivable          -8                      -1
    2361      Write-offs of loans receivable          -1
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....          45         141         377
    ----------------------------------------------------------------------------

        PLUS
          Position with respect to appropriations act
              limitation on commitments:

    2131    Guaranteed loan commitments
              exempt from limitation........       1,391       1,400       1,359
                                               ---------   ---------  ----------

    2150      Total guaranteed loan
                commitments.................       1,391       1,400       1,359
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......       2,675       3,629       4,108
    2231    Disbursements of new guaranteed
              loans.........................       1,606       1,138       1,200
    2251    Repayments and prepayments......        -542        -551        -683
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..        -107         -84        -116
    2263      Terminations for default that
                result in claim payments....          -3         -24         -42
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......       3,629       4,108       4,467
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year       3,629       4,108       4,467
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....          83         173         256
    2331      Disbursements for guaranteed
                loan claims.................         107          84         116
    2351      Repayments of loans receivable         -15          -1          -3
    2361      Write-offs of loans receivable          -2
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....         173         256         369
    ----------------------------------------------------------------------------

        SLS
          Position with respect to appropriations act
              limitation on commitments:

    2150    Total guaranteed loan
              commitments...................
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......       4,841       5,061       4,716
    2231    Disbursements of new guaranteed
              loans.........................         577
    2251    Repayments and prepayments......         -51         -64        -302
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..        -305        -279        -157
    2263      Terminations for default that
                result in claim payments....          -1          -2          -2
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......       5,061       4,716       4,255
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year       5,061       4,716       4,255
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....         228         479         707
    2331      Disbursements for guaranteed
                loan claims.................         305         279         157
    2351      Repayments of loans receivable         -48         -46         -64

    [[Page 421]]

    2361      Write-offs of loans receivable          -6          -5          -8
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....         479         707         792
    ----------------------------------------------------------------------------

        CONSOLIDATED
          Position with respect to appropriations act
              limitation on commitments:

    2131    Guaranteed loan commitments
              exempt from limitation........       1,501       4,061       4,534
                                               ---------   ---------  ----------

    2150      Total guaranteed loan
                commitments.................       1,501       4,061       4,534
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......       1,608       2,827       6,583
    2231    Disbursements of new guaranteed
              loans.........................       1,467       4,031       4,510
    2251    Repayments and prepayments......        -221        -175        -476
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..         -26         -92        -222
    2263      Terminations for default that
                result in claim payments....          -1          -8         -13
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......       2,827       6,583      10,382
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year       2,827       6,583      10,382
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....                      23         115
    2331      Disbursements for guaranteed
                loan claims.................          26          92         222
    2351      Repayments of loans receivable          -3
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....          23         115         337
    ---------------------------------------------------------------------------

                                 Balance Sheet (In millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4251-0-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       6,308          7,559         7,813          6,968
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         694          1,676         3,198          5,185
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............         694          1,676         3,198          5,185
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1701    Defaulted guaranteed loans,
              gross.........................       1,617         -3,507        -3,166         -2,797
    1704    Defaulted guaranteed loans and
              interest receivable, net......       1,617         -3,507        -3,166         -2,797
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,619          5,728         7,845          9,356
        LIABILITIES:
    2103  Federal liabilities: Debt.........       2,058          1,605         1,134            680
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,058          1,605         1,134            680
        NET POSITION:
    3100  Appropriated capital..............       6,561          4,123         6,710          8,676
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       6,561          4,123         6,710          8,676
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,619          5,728         7,844          9,356
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this
    nonbudgetary account records all cash flows to and from the Government
    resulting from guaranteed student loans committed in 1992 and beyond.
    The amounts in this account are a means of financing and are not
    included in the budget totals.

            Federal Family Education Loan Program, Financing Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-4-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.03   Default claims..................                                  -2
                                               ---------   ---------  ----------

    01.91     Subtotal, Stafford loans......                                  -2
          Unsubsidized Stafford loans:

    02.02   Special allowance...............                                  -1
                                               ---------   ---------  ----------

    02.91     Subtotal, Unsubsidized
                Stafford loans..............                                  -1
    03.03 Default claims....................                     -21         -42
    03.04 Death, disability, and bankruptcy
            claims..........................                      -7         -18
    03.07 Contract collection costs.........                       3           4
                                               ---------   ---------  ----------

    03.91   Subtotal, PLUS loans............                     -25         -56
                                               ---------   ---------  ----------

    10.00   Total obligations...............                     -25         -59
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....                                 -59
    22.00 New financing authority (gross)...                     -85        -193
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......                     -85        -252
    23.95 New obligations...................                      25          59
    24.90 Unobligated balance available, end
            of year: Fund balance...........                     -59        -193
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                     -85        -193
                                                                 -85        -193
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Obligated
            balance, start of year, unpaid
            obligations.....................                                  -4
    73.10 New obligations...................                     -25         -59
    73.20 Total financing disbursements
            (gross).........................                      22          54
    74.40 Unpaid obligations, end of year:
            Obligated balance: Obligated
            balance, end of year, unpaid
            obligations.....................                      -4          -9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                   1
    86.98 Outlays from permanent balances...                                   1
                                               ---------   ---------  ----------

    87.00   Total financing disbursements
              (gross).......................                     -22         -54
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
                Payment from subsidy
                  account:

    88.00         Stafford loans............                     -18          82
    88.00         Unsubsidized Stafford.....                      52          47
    88.00         PLUS loans................                       8          17
    88.00         Consolidated loans........                      20          46
    88.25     Interest on uninvested funds:
                Stafford loans..............                       2           7
              Non-Federal sources:
                Stafford loans:

    88.40         New loan holders fee......                      -4          -9
    88.40         Origination fees..........                      -7         -19
    88.40         Sallie Mae offset fees....                      40          39
    88.40         New loan holders fee......                      -2          -6
    88.40         Origination fees..........                      -4          -7
    88.40         New loan holders fees.....                      -1          -1
    88.40         Origination fees..........                      -1          -3
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                      85         193
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      63         139
    ---------------------------------------------------------------------------

    [[Page 422]]

                 Status of Guaranteed Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-4-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        STAFFORD
          Position with respect to appropriations act
              limitation on commitments:

    2131    Guaranteed loan commitments
              exempt from limitation........
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......                                   1
    2251    Repayments and prepayments......                       1          12
    2261    Adjustments: Terminations for
              default that result in loans
              receivable....................                                   2
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......                       1          15
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year                       1          15
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2331      Disbursements for guaranteed
                loan claims.................                                  -2
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....                                  -2
    ----------------------------------------------------------------------------

        UNSUBSIDIZED STAFFORD
          Position with respect to appropriations act
              limitation on commitments:

    2131    Guaranteed loan commitments
              exempt from limitation........
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......                               3,761
    2231    Disbursements of new guaranteed
              loans.........................                     569       1,011
    2251    Repayments and prepayments......                   3,190         670
    2261    Adjustments: Terminations for
              default that result in loans
              receivable....................                       2           6
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......                   3,761       5,448
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year                   3,761       5,448
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....                                  -2
    2331      Disbursements for guaranteed
                loan claims.................                      -2          -6
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....                      -2          -8
    ----------------------------------------------------------------------------

        PLUS
          Position with respect to appropriations act
              limitation on commitments:

    2150    Total guaranteed loan
              commitments...................
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......                                   8
    2251    Repayments and prepayments......                     -19         -38
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..                      20          42
    2263      Terminations for default that
                result in claim payments....                       7          18
                                               ---------   ---------  ----------

    2290      Outstanding, end of year......                       8          30
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year                       8          29
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....                                 -20
    2331      Disbursements for guaranteed
                loan claims.................                     -20         -42
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....                     -20         -62
    ----------------------------------------------------------------------------

        SLS
          Position with respect to appropriations act
              limitation on commitments:

    2150    Total guaranteed loan
              commitments...................
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2251    Repayments and prepayments......                      -6          -3
    2261    Adjustments: Terminations for
              default that result in loans
              receivable....................                       6           3
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....                                  -8
    2331      Disbursements for guaranteed
                loan claims.................                      -6          -3
    2361      Write-offs of loans receivable                      -2          -2
                                               ---------   ---------  ----------

    2390        Outstanding, end of year....                      -8         -13
    ----------------------------------------------------------------------------

        CONSOLIDATED
          Position with respect to appropriations act
              limitation on commitments:

    2150    Total guaranteed loan
              commitments...................
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2251    Repayments and prepayments......                      -8         -13
    2263    Adjustments: Terminations for
              default that result in claim
              payments......................                       8          13
    ---------------------------------------------------------------------------

                                 Balance Sheet (In millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4251-4-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                      -59           -193
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............                                      -29            -85
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............                                      -29            -85
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                      -88           -278
        NET POSITION:
    3100  Appropriated capital..............                                      -88           -278
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                      -88           -278
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                      -88           -278
    -----------------------------------------------------------------------------------------------

                Federal Family Education Loan Liquidating Account

        Note.--The following tables display the liquidating account, which
    includes all cash flows to and from the Government from guaranteed
    student loan commitments prior to 1992.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.01   Interest benefits, net of
              origination fees..............         689         170         110
    01.02   Special allowance net of
              origination fees..............         458         243         151
    01.03   Default claims..................       1,048         598         475
    01.04   Death, disability, and
              bankruptcy claims.............         175         115          79
    01.06   Supplemental preclaims
              assistance....................          28          16          10
    01.07   Contract collection costs.......         115         113          79
                                               ---------   ---------  ----------

    01.91     Subtotal, Stafford loans......       2,513       1,255         904
          PLUS/SLS loans:

    02.01   Default claims..................          58          31          21
    02.02   Death, disability, and
              bankruptcy claims.............          17          10           8
    02.04   Supplemental preclaims
              assistance....................           2           1
    02.05   Contract collection costs.......           6          15          18
                                               ---------   ---------  ----------

    02.91     Subtotal, PLUS/SLS loans......          83          57          47
          Miscellaneous costs:

    03.01   Scheduled payments to finance
              account for non-contractual
              modifications.................         589         538         376
                                               ---------   ---------  ----------

    [[Page 423]]

    10.00   Total obligations...............       3,185       1,850       1,327
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       2,717       1,850       1,327
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         468
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       3,185       1,850       1,327
    23.95 New obligations...................      -3,185      -1,850      -1,327
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........       1,081         303
    60.49 Portion applied to liquidate
            contract authority..............          -1
    62.00 Transferred from DoD pursuant to
            P.L. 102-27.....................           1
                                               ---------   ---------  ----------

    63.00   Appropriation (total)...........       1,081         303
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,636       1,547       1,507
    68.27   Capital transfer to general fund                                -180
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................       1,636       1,547       1,327
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................       2,717       1,850       1,327
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         556          48         277
    73.10 New obligations...................       3,185       1,850       1,327
    73.20 Total outlays (gross).............      -3,225      -1,621      -1,225
    73.45 Adjustments in unexpired accounts.        -468
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          48         277         379
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       2,668       1,572         948
    86.98 Outlays from permanent balances...         556          48         277
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........       3,225       1,621       1,225
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Stafford loans:
                Non-Federal sources:

    88.40         Federal collections on
                    defaulted loans.........        -209        -471        -555
    88.40         Federal collections on
                    bankruptcies............         -89         -62         -43
    88.40         Offsets against Federal
                    tax refunds.............        -561        -585        -530
              Other collections:
    88.40       Reimbursements from guaranty
                  agencies..................        -553        -223        -184
    88.40       Federal collections on
                  defaulted loans...........         -18         -64         -75
    88.40       Federal collections on
                  bankruptcies..............          -4          -3          -2
    88.40       Offsets against Federal tax
                  refunds...................        -102         -99         -84
    88.40       Reimbursements from guaranty
                  agencies..................        -100         -40         -34
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........      -1,636      -1,547      -1,507
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,081         303        -180
    90.00 Outlays...........................       1,589          74        -282
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
              STAFFORD LOANS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      32,728      26,846      20,964
    2231  Disbursements of new guaranteed
            loans...........................          19          19           5
    2251  Repayments and prepayments........      -4,612      -5,158      -3,859
          Adjustments:

    2261    Terminations for default that
              result in loans receivable \1\      -1,115        -661        -490
    2263    Terminations for default that
              result in claim payments......        -174         -82         -65
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........      26,846      20,964      16,555
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      26,846      20,964      16,555
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......      10,995      10,013       8,698
    2331    Disbursements for guaranteed
              loan claims...................       1,115         661         490
    2351    Repayments of loans receivable
              \1\...........................      -1,408      -1,339      -1,310
    2361    Write-offs of loans receivable..        -452        -542        -570
    2364    Other adjustments, net..........        -237         -96         -79
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......      10,013       8,698       7,230
    ----------------------------------------------------------------------------

              PLUS/SLS LOANS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,646       2,727       1,808
    2251  Repayments and prepayments........        -824        -876        -750
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -78         -34         -22
    2263    Terminations for default that
              result in claim payments......         -17          -9          -7
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........       2,727       1,808       1,029
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       2,727       1,808       1,029
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       3,507       3,166       2,797
    2331    Disbursements for guaranteed
              loan claims...................          78          34          22
    2351    Repayments of loans receivable..        -225        -206        -195
    2361    Write-offs of loans receivable..        -151        -181        -190
    2364    Other adjustments, net..........         -43         -17         -14
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......       3,166       2,797       2,420
    ---------------------------------------------------------------------------
        \1\ Excludes interest and premium collections on insured loans.

        As required by the Federal Credit Reform Act of 1990, this
    liquidating account records, for this program, all cash flows to and
    from the Government resulting from guaranteed student loans committed
    prior to 1992. This account is shown on a cash basis. All new loan
    activity in this program in 1992 and beyond is recorded in corresponding
    program and financing accounts.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         121         129          97
    41.0  Grants, subsidies, and
            contributions...................       1,178         430          92
    42.0  Insurance claims and indemnities..       1,886       1,291       1,138
                                               ---------   ---------  ----------

    99.9    Total obligations...............       3,185       1,850       1,327
    ---------------------------------------------------------------------------

              College Housing and Academic Facilities Loans Program

        For administrative expenses to carry out the existing direct loan
    program of college housing and academic facilities loans entered into
    pursuant to title VII, part C, of the Higher Education Act, as amended,
    $700,000.

       Historically Black College and University Capital Financing Program

        The total amount of bonds insured pursuant to section 724 of title
    VII, part B of the Higher Education Act shall not exceed $357,000,000,
    and the cost, as defined in section 502 of the Congressional Budget Act
    of 1974, of such bonds shall not exceed zero.
        For administrative expenses to carry out the Historically Black
    College and University Capital Financing Program entered into pursuant
    to title VII, part B of the Higher Education Act, as amended, $104,000.
        Note.--Regular 1996 appropriations for these accounts have not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.09 Federal administration............           1           1           1
                                               ---------   ---------  ----------

    10.00   Total obligations...............           1           1           1
    ----------------------------------------------------------------------------

    [[Page 424]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1           1           1
    23.95 New obligations...................          -1          -1          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation (Federal
            administration).................           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.           9           8           6
    73.10 New obligations...................           1           1           1
    73.20 Total outlays (gross).............          -2          -3          -2
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance:
            Uninvested balance..............           8           6           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           1
    86.93 Outlays from current balances.....           1           3           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           2           3           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           1
    90.00 Outlays...........................           2           3           2
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (In
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................           1           2           1
                                               ---------   ---------  ----------

    1349    Total subsidy outlays...........           1           2           1
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1           1
    3590  Outlays from new authority........           1           1           1
    ---------------------------------------------------------------------------

        The College Housing and Academic Facilities Loans Program account
    and the Historically Black College and University Capital Financing
    Program account are consolidated for presentation purposes. College
    Housing and Academic Facilities Loans (a direct loan program) and
    Historically Black College and University Capital Financing (a
    guaranteed loan program) will continue to be administered separately.

        College Housing and Academic Facilities Program.--The Federal Credit
    Reform Act of 1990 separates the College Housing and Academic Facilities
    Loans (CHAFL) account into two distinct operating activities and budget
    accounts--CHAFL Program and CHAFL Liquidating. The federal
    administration and subsidy disbursement for loans awarded in fiscal year
    1992 and beyond are recorded in the program account. The cash flows
    associated with loans originating before fiscal year 1992 are recorded
    in the liquidating account.

        CHAFL supports financing for the reconstruction, renovation, and
    construction of academic facilities, housing and other postsecondary
    educational facilities for students and faculty. Institutions receive
    direct interest-subsidized loans of 5.5 percent. This financing is
    intended to help higher education institutions finance construction and
    renovation activities on more favorable financing terms than available
    in the private market. This account is only partially self-financing
    since the amount of interest paid by borrowers, 5.5 percent, is lower
    than the amount the Department must pay Treasury for capital borrowed to
    finance the loans. The subsidy covers the difference. To meet the
    required repayment of interest and principal each year to Treasury, the
    Federal Credit Reform Act of 1990 has provided permanent appropriation
    authority.

        No loan limitation or corresponding loan subsidy funds are requested
    for the CHAFL program. The 1997 budget requests funds for continuing
    administrative activities only.

        Historically Black College and University Capital Financing
    Program.--The Historically Black College and University (HBCU) Capital
    Financing Program was authorized by the Higher Education Act Amendments
    of 1992 to provide HBCUs with private capital for capital projects such
    as repairs, renovation and construction of classrooms, libraries,
    laboratories, dormitories, instructional equipment, and research
    instrumentation. The 1994 appropriation provided the authority to enter
    into insurance agreements with a private for-profit bonding authority to
    guarantee no more than $357,000,000 loan principal plus accrued unpaid
    interest for taxable bonds. The bonding authority will issue the bonds
    and establish an escrow account in which 10 percent of each
    institution's principal is deposited. This amount is estimated to be
    sufficient to cover all potential delinquencies and defaults. The 1997
    budget requests funds for continuing Federal administrative activities
    only.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          10           8           7
    ---------------------------------------------------------------------------

         College Housing and Academic Facilities Loans Financing Account

        Note.--The financing account includes all cash flows to and from the
    Government from college housing and academic facilities loans committed
    after 1991.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest paid to Treasury.........           1           1           2
                                               ---------   ---------  ----------

    10.00   Total obligations...............           1           1           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...           1           1           2
    23.95 New obligations...................          -1          -1          -2
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           2           4           3
    68.10   Change in orders on hand from
              Federal sources...............          -1          -2          -2
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................           1           2           1
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................           1           1           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Authority to
              Borrow........................          46          38          28
    72.95   Obligate balance: Subsidy.......           9           8           6
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............          55          46          34
    73.10 New obligations...................           1           1           2
    73.20 Total financing disbursements
            (gross).........................          -7         -14         -11
    73.40 Adjustments in expired accounts...          -3
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance:
              Uninvested balance............          38          28          21
    74.95   Orders on hand from Federal
              sources.......................           8           6           4
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................          46          34          25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................           7          14          11
    ----------------------------------------------------------------------------

    [[Page 425]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1          -2          -1
    88.25     Interest on uninvested funds..          -1
    88.40     Interest repayments...........                      -1          -2
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........          -2          -3          -3
    88.95 Change in receivables from program
            accounts........................           1           2           2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                   1
    90.00 Financing disbursements...........           4          11           8
    ---------------------------------------------------------------------------

                   Status of Direct Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           7          20
    1231  Disbursements: Direct loan
            disbursements...................           6          13           9
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........           7          20          29
    ---------------------------------------------------------------------------

        The reestimate of the subsidy from prior year obligations may
    require the Department to exercise its permanent indefinite authority to
    borrow funds to cover outstanding Treasury interest expenses due on
    September 30, 1997.

                                 Balance Sheet (In millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4252-0-3-502    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net           9              8             6              4
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           1              7            20             27
    1402    Interest receivable.............                                        1              1
    1405    Allowance for subsidy cost (-)..                         -1            -4             -5
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           1              6            17             23
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          10             14            23             27
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................                          1             1              1
    2103    Debt............................           1              6            16             23
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              7            17             24
        NET POSITION:
    3100  Appropriated capital..............          11              9             7              5
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          11              9             7              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          12             16            24             29
    -----------------------------------------------------------------------------------------------

        College Housing and Academic Facilities Loans Liquidating Account

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0242-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            43.0)...........................          13          10          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           2          10          20
    22.00 New budget authority (gross)......          15          20          22
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
    22.30 Unobligated balance expiring......          -2
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          23          30          42
    23.95 New obligations...................         -13         -10         -11
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          10          20          31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........           5          10          11
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          10          10          10
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................          15          20          22
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          40          32          24
    73.10 New obligations...................          13          10          11
    73.20 Total outlays (gross).............         -13         -18         -17
    73.45 Adjustments in unexpired accounts.          -8
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          32          24          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          10          10          10
    86.98 Outlays from permanent balances...           3           8           7
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          13          18          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal.....          -8          -8          -7
    88.40       Interest received on loans..          -2          -2          -3
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........         -10         -10         -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5          10          12
    90.00 Outlays...........................           3           8           7
    ---------------------------------------------------------------------------

                   Status of Direct Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0242-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         136         138         140
    1231  Disbursements: Direct loan
            disbursements...................           4           4           4
    1251  Repayments: Repayments and
            prepayments.....................          -2          -2          -3
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         138         140         141
    ---------------------------------------------------------------------------

        The College Housing and Academic Facilities Loans Liquidating
    Account records all cash flows to and from the Government resulting from
    direct loans made to schools and colleges for the reconstruction,
    renovation, and construction of academic facilities, housing and other
    postsecondary education facilities from loans obligated prior to fiscal
    year 1992. The Secretary pays, on average, 8.68 percent interest on
    funds borrowed for liquidating account loans. To meet the required
    repayment of interest and principal each year to Treasury, the Federal
    Credit Reform Act of 1990 has provided permanent authority.

        At the end of 1995, total delinquencies for this account were $987
    thousand.

     Historically Black College and University Capital Financing, Financing
                                     Account

                 Status of Guaranteed Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4254-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         357
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................         357
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  64
    2231  Disbursements of new guaranteed
            loans...........................                      65          75
    2251  Repayments and prepayments........                      -1          -1
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........                      64         138
    ----------------------------------------------------------------------------

    [[Page 426]]

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      64         138
    ---------------------------------------------------------------------------

                        Higher Education Facilities Loans

        The Secretary is hereby authorized to make such expenditures, within
    the limits of funds available under this heading and in accord with law,
    and to make such contracts and commitments without regard to fiscal year
    limitation, as provided by section 104 of the Government Corporation
    Control Act (31 U.S.C. 9104), as may be necessary in carrying out the
    program for the current fiscal year.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0240-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            43.0)...........................           3           4           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          11          11          11
    22.00 New budget authority (gross)......           9           8           8
    22.40 Capital transfer to general fund..          -7          -4          -3
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          13          15          16
    23.95 New obligations...................          -3          -4          -3
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          11          11          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Spending
            authority from offsetting
            collections.....................           9           8           8
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           3           4           3
    73.20 Total outlays (gross).............          -3          -4          -4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................           3           4           5
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           3           4           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal.....          -7          -6          -6
    88.40       Interest received on loans..          -2          -2          -2
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........          -9          -8          -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -6          -4          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0240-0-1-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          62          55          49
    1251  Repayments: Repayments and
            prepayments.....................          -7          -6          -6
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........          55          49          43
    ---------------------------------------------------------------------------

        Program operations.--Title VII, Section 702, of the Higher Education
    Act of 1965, as amended, authorizes such sums as may be necessary to pay
    obligations incurred prior to 1987 under the Higher Education Facilities
    Loan Program previously authorized under Title VII, Part C. Prior to
    1987, this program provided direct loans at 5.5 percent interest,
    repayable within 50 years, to colleges, universities, and higher
    education building agencies for the construction, reconstruction, or
    renovation of academic facilities. No new loan commitments have been
    made since 1981. The Higher Education Act Amendments of 1992 do not
    authorize new loan activity in this account.

        Financing.--Loan capital for this program has been provided both
    through appropriations and the sale of participation certificates which
    were backed by pools of existing higher education facilities loans held
    by the Federal Government. All participation certificates held by this
    account were redeemed as of September 30, 1988.

        Interest is payable to Treasury on the amount of appropriations paid
    out for loan capital and remaining outstanding, less the average
    undisbursed cash balance in the fund during the year. The interest rate
    certified by Treasury for payment from the account is 6.75 percent in
    1996.

        Repayments on outstanding loans, interest revenue, and investment
    income are used to pay operating expenses and to repay interest costs to
    Treasury. For 1997, operating income is expected to be sufficient to
    finance all expenses. No appropriation is needed.

        At the end of 1995, total delinquencies for this account were $543
    thousand.

                              College Housing Loans

        For necessary expenses of the college housing loans program,
    pursuant to title VII, part C of the Higher Education Acts, as amended,
    the Secretary shall make expenditures and enter into contracts without
    regard to fiscal year limitation using loan repayments and other
    resources available to this account. Any unobligated balances becoming
    available from fixed fees paid into this account pursuant to 12 U.S.C.
    1749d, relating to payment of costs for inspections and site visits,
    shall be available for the operating expenses of this account.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4250-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest on Treasury borrowings...          10          13          12
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              43.0).........................          10          13          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          31          20          13
    22.00 New budget authority (gross)......          50          49          46
    22.60 Redemption of debt................         -51         -42         -35
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          30          27          24
    23.95 New obligations...................         -10         -13         -12
    24.90 Unobligated balance available, end
            of year: Fund balance...........          20          13          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

            Offsetting collections (cash):
    68.00     Repayments of principal.......          35          35          32
    68.00     Interest received on loans....          15          14          14
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................          50          49          46
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................          50          49          46
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          11          11          14

    [[Page 427]]

    73.10 New obligations...................          10          13          12
    73.20 Total outlays (gross).............          -9         -10         -10
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance:
            Uninvested balance..............          11          14          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...           9          10          10
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           9          10          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal.....         -35         -35         -32
    88.40       Interest received on loans..         -15         -14         -14
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........         -50         -49         -46
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -42         -39         -36
    ---------------------------------------------------------------------------

                   Status of Direct Loans (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4250-0-3-502      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         519         484         449
    1251  Repayments: Repayments and
            prepayments.....................         -35         -35         -32
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         484         449         417
    ---------------------------------------------------------------------------

        Program operations.--Loans in this account were made for
    construction and renovation of college housing facilities prior to 1987
    under title IV of the Housing Act of 1950. The Higher Education
    Amendments of 1992 gave the Secretary authority to manage outstanding
    college housing loans under title VII, Part C of the Higher Education
    Act as amended. New loans made after 1986 were financed in the College
    Housing and Academic Facilities Loans Account. No new loan activity is
    authorized in this account.

        Financing.--Loan capital for this program was provided primarily
    through Treasury borrowings and the sale of participation certificates
    which were backed by pools of college housing loans held by the Federal
    Government. The participation certificates sold by the Government
    National Mortgage Association (GNMA) and held by this account were
    redeemed as of September 30, 1988. As of September 30, 1995, $484
    million in loan capital is still due the Treasury at an annual interest
    rate of 2.75 percent.

        Available resources (loan repayments, interest revenue, and other
    income in excess of operating expenses) will be used to redeem a portion
    of the agency's debt in outstanding Treasury borrowings, as is being
    done in 1996 and as was done in preceding years. Approximately $51
    million will be repaid to Treasury in 1995 and $42 million will be
    repaid in 1996; $35 million was repaid in 1994.

        At the end of 1995, total delinquencies for this account were $2.9
    billion.

                 OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT

                                  Federal Funds

    General and special funds:

                 Education Research, Statistics, and Improvement

        For carrying out activities authorized by the Educational Research,
    Development, Dissemination, and Improvement Act of 1994, including part
    E; the National Education Statistics Act of 1994; section 2102, parts A,
    B, and C of title III, parts A and B, and section 10601 of title X, part
    C of title XIII of the Elementary and Secondary Education Act of 1965,
    as amended; and title VI of the Goals 2000: Educate America Act:
    $634,750,000: Provided, That $15,000,000 shall be for section 2102,
    $5,000,000 shall be for section 3122, $250,000,000 shall be for section
    3132, $60,000,000 shall be for section 3136, $10,000,000 shall be for
    section 3141, and $4,000,000 shall be for section 10601 of the
    Elementary and Secondary Education Act: Provided further, That,
    notwithstanding section 3131(b) of the Elementary and Secondary
    Education Act, if any state educational agency does not apply for a
    grant under section 3132, that State's allotment under section 3131
    shall be reserved by the Secretary for grants to local educational
    agencies in the State that apply directly to the Secretary according to
    the terms and conditions announced by the Secretary in the Federal
    Register.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Research........................          86                     108
    00.02   Statistics......................          48                      50
    00.03   Assessment......................          33                      33
    00.04   Eisenhower professional
              development national
              activities....................          21                      15
            Educational technology:
              Technology for education:
    00.05       Technology literacy
                  challenge fund............                                 250
    00.06       National activities and
                  local innovation fund.....          23          19          75
    00.07     Star schools..................          25          19          25
    00.08     Ready to learn television.....           7                       7
    00.09     Telecommunications
                demonstration project for
                mathematics.................           1
    00.10   Fund for the improvement of
              education.....................          37                      40
    00.11   Javits gifted and talented
              education.....................           5                      10
    00.12   National diffusion network......          12
    00.13   Eisenhower regional mathematics
              and science education
              consortia.....................          15                      15
    00.14   21st century community learning
              centers.......................           1
    00.15   National writing project........           3
    00.16   Civic education.................           4                       4
    00.17   International education exchange           3                       3
    00.18   Unallocated amount under P.L.
              104-99........................                     212
                                               ---------   ---------  ----------

    00.91     Subtotal, direct program......         324         250         635
    01.01 Reimbursable program..............           3
                                               ---------   ---------  ----------

    10.00   Total obligations...............         327         250         635
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         327         250         635
    23.95 New obligations...................        -327        -250        -635
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         324         250         635
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           3
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         327         250         635
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         288         322         256
    73.10 New obligations...................         327         250         635
    73.20 Total outlays (gross).............        -283        -316        -329
    73.40 Adjustments in expired accounts...         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         322         256         562
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          82          67         130
    86.93 Outlays from current balances.....         199         249         198
    86.97 Outlays from new permanent
            authority.......................           1
    86.98 Outlays from permanent balances...                       1           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         283         316         329
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         324         250         635

    [[Page 428]]

    90.00 Outlays...........................         279         316         329
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................         324         250         635
      Outlays...........................         279         317         329
    Adjustment to 1996 continuing
        resolution levels:
      Budget Authority..................                      92
      Outlays...........................                      19          54
                                        ------------------------------------
    Total:
      Budget Authority..................         324         342         635
      Outlays...........................         279         336         383
                                        ====================================

        Research.--Funds support the activities of five research institutes
    organized to address topics of national concern in education. The
    institutes carry out comprehensive programs of research and development
    by funding research centers, field-initiated research studies, and other
    research projects. A national dissemination system provides information
    and technical assistance through regional laboratories and
    clearinghouses. A national library of education serves as a central
    location within the Federal government for information on education.

        Statistics.--Funds support the collection of statistics on
    educational institutions and on individuals to monitor trends in
    education, and a coordinated program of statistical services to assist
    States in developing comparable data bases and analyses of the
    implications of data.

        Assessment.--Funds support the National Assessment of Educational
    Progress, which surveys young Americans to provide reliable information
    about educational attainment in important skill areas. Both national-
    and State-representative data are collected.

        Eisenhower professional development national activities.--Funds
    support activities to promote excellence in teaching. Such activities
    include strengthening professional standards for teachers, demonstrating
    ways to engage teachers and other educators in the use of effective
    teaching and learning strategies, providing support services for both
    Eisenhower State and Federal program activities, and evaluating these
    activities.

        Technology for education.--

        Technology literacy challenge fund.--Funds for this Presidential
    initiative are awarded to States on the basis of a formula and are used
    for grants to local school districts to support teacher training and the
    purchase of hardware and software to create 21st century classrooms.

        National activities and local innovation fund.--Funds support
    national leadership and technical assistance in the development and
    implementation of educational technology. Competitive grants are made to
    consortia of school districts and other partners to improve teaching and
    learning through the effective use of technologies.

        Star schools.--Funds support the acquisition of telecommunications
    equipment and development of instructional programming for distance
    learning.

        Ready to learn television.--Funds support the development of
    educational programming for preschool and elementary school children and
    their parents.

        Telecommunications demonstration project for mathematics.--Funds
    support a national telecommunications-based demonstration project to
    improve the teaching of mathematics so that all students are prepared to
    achieve State content standards.

        Fund for the improvement of education.--Funds support nationally
    significant projects to improve the quality of education, assist all
    students to meet challenging standards, and contribute to achievement of
    the National Education Goals.

        Javits gifted and talented education.--Funds support projects
    designed to help educators identify and meet the special educational
    needs of gifted and talented students and, where appropriate, to adapt
    strategies successful with those students to improve instruction for all
    students.

        Eisenhower regional mathematics and science education consortia.--
    Funds support regional consortia to disseminate exemplary mathematics
    and science education materials and provide technical assistance to help
    teachers and administrators implement new teaching methods and
    assessment tools.

        Civic education.--Funds are used to provide an award to the Center
    for Civic Education to help educate students about the history and
    principles of the Constitution, including the Bill of Rights.

        International education exchange.--Funds are used for international
    exchange programs to help improve civics and economics education in
    central and eastern European countries, countries that were part of the
    former Soviet Union, and the United States.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.3    Personnel compensation: Other
              than full-time permanent......           1                       1
    24.0    Printing and reproduction.......           1                       1
    25.1    Advisory and assistance services           7                       7
    25.2    Other services..................          51                      51
    25.3    Purchases of goods and services
              from Government accounts......          15                      15
    25.5    Research and development
              contracts.....................          44                      41
    31.0    Equipment.......................           1                       1
    41.0    Grants, subsidies, and
              contributions.................         204          38         518
    92.0    Undistributed...................                     212
                                               ---------   ---------  ----------

    99.0      Subtotal, direct obligations..         324         250         635
    99.0  Reimbursable obligations..........           3
                                               ---------   ---------  ----------

    99.9    Total obligations...............         327         250         635
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          10          13          13
    ---------------------------------------------------------------------------

                                    Libraries

        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0104-0-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Public library services.........          83
    00.02   Public library construction.....          24           7
    00.03   Interlibrary cooperation........          24
    00.05   Library literacy programs.......           8
    00.07   Library education and training..           5
    00.08   Research and demonstrations.....           6
    00.09   Unallocated amount under P.L.
              104-99........................                     118
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................         150         125
    ----------------------------------------------------------------------------

    [[Page 429]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          13           7
    22.00 New budget authority (gross)......         144         118
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         157         125
    23.95 New obligations...................        -150        -125
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         144         118
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         161         192         148
    73.10 New obligations...................         150         125
    73.20 Total outlays (gross).............        -118        -169         -79
    73.40 Adjustments in expired accounts...          -1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         192         148          69
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          11          43
    86.93 Outlays from current balances.....         106         126          80
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         118         169          79
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         144         118
    90.00 Outlays...........................         118         169          79
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Enacted/requested:
      Budget Authority..................         144         118
      Outlays...........................         117         169          80
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 110
      Outlays...........................                                  44
                                        ------------------------------------
    Total:
      Budget Authority..................         144         118         110
      Outlays...........................         117         169         124
                                        ====================================

        Library services.--State formula grants are made to assist public
    libraries in improving library services, library construction and
    technology enhancement, and resource sharing; and discretionary awards
    are made for library literacy services, education in library and
    information science, and library research and demonstration projects.

                                    Libraries

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0104-2-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Library Services................                                 110
                                               ---------   ---------  ----------

    10.00   Total obligations (object class
              41.0).........................                                 110
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 110
    23.95 New obligations...................                                -110
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................                                 110
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 110
    73.20 Total outlays (gross).............                                 -44
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                                  66
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                                  44
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........                                  44
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 110
    90.00 Outlays...........................                                  44
    ---------------------------------------------------------------------------

        Authority to provide support for library services, including wider
    access to information through technology, is pending in the Congress.
    Funds will be requested when authorizing legislation is enacted.

                             DEPARTMENTAL MANAGEMENT

                                  Federal Funds

    General and special funds:

                             Program Administration

        For carrying out, to the extent not otherwise provided, the
    Department of Education Organization Act, including rental of conference
    rooms in the District of Columbia and hire of two passenger motor
    vehicles, $355,476,000.
        Note--Regular 1996 appropriations for these accounts have not been
    enacted at the time this budget was prepared. The 1996 amounts in this
    budget are based on the levels provided in three continuing resolutions:
    P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         355         327         355
    01.01 Reimbursable programs.............         136           8           8
                                               ---------   ---------  ----------

    10.00   Total obligations...............         491         335         363
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           1
    22.00 New budget authority (gross)......         491         335         363
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         491         335         363
    23.95 New obligations...................        -491        -335        -363
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         355         327         355
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         136           8           8
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         491         335         363
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         142         183         135
    73.10 New obligations...................         491         335         363
    73.20 Total outlays (gross).............        -455        -383        -357
    73.40 Adjustments in expired accounts...           6
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         183         135         141
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         228         245         258
    86.93 Outlays from current balances.....         112         122          86
    86.97 Outlays from new permanent
            authority.......................         115           4           4
    86.98 Outlays from permanent balances...                      12           8
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         455         383         357
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -136          -8          -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         355         327         355
    90.00 Outlays...........................         320         375         349
    ---------------------------------------------------------------------------

        The Program Administration account includes the direct Federal costs
    of administering elementary and secondary education, bilingual
    education, higher education, vocational and adult education, and special
    education programs, programs

    [[Page 430]]
    for persons with disabilities and a portion of the direct Federal costs
    for administering student financial aid programs. It also supports
    assessment, statistics, research and improvement activities.

        In addition, this account includes the cost of providing centralized
    support and administrative services, overall policy development, and
    strategic planning for the Department. Included in the centralized
    activities are rent and mail services; telecommunciations; program
    grants and contractual services; financial management and accounting,
    including payments to schools, education agencies and other grant
    recipients, and preparation of auditable financial statements; ADP
    services; personnel management; budget formulation and execution;
    program evaluation; legal services; congressional and public relations;
    and intergovernmental affairs.

        Reimbursable program.--Reimbursements to this account include the
    costs of collecting defaulted Perkins student loans and of providing
    administrative services to other agencies.

        This presentation includes contributions, which had previously been
    presented separately.

        Spending derives from contributions from the public. Activities
    supported include the Goals 2000 Teachers' Forum, and the Gifts and
    Bequests Miscellaneous Fund. No new contributions are currently
    anticipated for 1997.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         135         141         140
    11.3      Other than full-time permanent          14           7           6
    11.5      Other personnel compensation..           3           2           2
                                               ---------   ---------  ----------

    11.9        Total personnel compensation         152         150         148
    12.1    Civilian personnel benefits.....          29          34          35
    13.0    Benefits for former personnel...           7
    21.0    Travel and transportation of
              persons.......................           7           5           5
    23.1    Rental payments to GSA..........          22          23          22
    23.3    Communications, utilities, and
              miscellaneous charges.........          20          16          16
    24.0    Printing and reproduction.......           7           7           7
    25.1    Advisory and assistance services           7           4           6
    25.2    Other services..................          70          10          10
    25.3    Purchases of goods and services
              from Government accounts......          14          10          10
    25.4    Operation and maintenance of
              facilities....................           1           1           1
    25.7    Operation and maintenance of
              equipment.....................                      55          69
    26.0    Supplies and materials..........           5           2           3
    31.0    Equipment.......................          12           8          21
    32.0    Land and structures.............                       2           2
                                               ---------   ---------  ----------

    99.0      Subtotal, direct obligations..         353         327         355
    99.0  Reimbursable obligations..........         136           7           7
    99.5  Below reporting threshold.........           2           1           1
                                               ---------   ---------  ----------

    99.9    Total obligations...............         491         335         363
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       2,853       2,771       2,651
    1005    Full-time equivalent of overtime
              and holiday hours.............          11           6           6
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           1
    ---------------------------------------------------------------------------

                             Office for Civil Rights

        For necessary expenses of the Office for Civil Rights, as authorized
    by section 203 of the Department of Education Organization Act,
    $60,000,000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts in this
    budget are based on the levels provided in three continuing resolutions:
    P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program: Civil Rights......          58          54          60
                                               ---------   ---------  ----------

    10.00   Total obligations...............          58          54          60
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          58          54          60
    23.95 New obligations...................         -58         -54         -60
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          58          54          60
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          26          28          25
    73.10 New obligations...................          58          54          60
    73.20 Total outlays (gross).............         -56         -57         -56
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          28          25          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          52          48          51
    86.93 Outlays from current balances.....           4           9           6
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          56          57          56
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          58          54          60
    90.00 Outlays...........................          56          57          56
    ---------------------------------------------------------------------------

        The Office for Civil Rights is responsible for ensuring that no
    person is unlawfully discriminated against on the basis of race, color,
    national origin, sex, disability, or age in the delivery of services or
    the provision of benefits in programs or activities of schools and
    institutions receiving financial assistance from the Department of
    Education. The authorities under which the Office for Civil Rights
    operates are title VI of the Civil Rights Act of 1964 (racial and ethnic
    discrimination), title IX of the Education Amendments of 1972 (sex
    discrimination), section 504 of the Rehabilitation Act of 1973
    (discrimination against individuals with a disability), the Age
    Discrimination Act of 1975, and the Americans with Disabilities Act of
    1990.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          37          36          37
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------

    11.9      Total personnel compensation..          38          37          38
    12.1  Civilian personnel benefits.......           7           8           9
    13.0  Benefits for former personnel.....           2
    21.0  Travel and transportation of
            persons.........................           1                       1
    23.1  Rental payments to GSA............           4           4           4
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           1
    25.3  Purchases of goods and services
            from Government accounts........           2           2           2
    25.7  Operation and maintenance of
            equipment.......................                       1           2
    26.0  Supplies and materials............           1
    31.0  Equipment.........................           1                       2
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------

    99.9    Total obligations...............          58          54          60
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         788         763         745
    ---------------------------------------------------------------------------

    [[Page 431]]

                         Office of the Inspector General

        For expenses necessary for the Office of the Inspector General, as
    authorized by Section 212 of the Department of Education Organization
    Act, $30,500,000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts in this
    budget are based on the levels provided in three continuing resolutions:
    P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Inspector General.................          30          28          30
                                               ---------   ---------  ----------

    10.00   Total obligations...............          30          28          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          30          28          30
    23.95 New obligations...................         -30         -28         -30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          30          28          30
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           6           8           4
    73.10 New obligations...................          30          28          30
    73.20 Total outlays (gross).............         -29         -32         -29
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           8           4           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          26          24          25
    86.93 Outlays from current balances.....           3           8           4
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          29          32          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          28          30
    90.00 Outlays...........................          29          32          29
    ---------------------------------------------------------------------------

        The Inspector General is responsible for the quality, coverage, and
    coordination of audit, investigation, and security functions relating to
    Federal education activities. The Inspector General has the authority to
    inquire into all activities of the Department including those performed
    under Federal education contracts, grants, or other agreements. Under
    the Chief Financial Officers Act of 1990, the Inspector General is also
    responsible for internal reviews of the Department's financial systems
    and audits of its financial statements.

                   Object Classification (In millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          18          19          19
                                               ---------   ---------  ----------

    11.9      Total personnel compensation..          18          19          19
    12.1  Civilian personnel benefits.......           4           4           4
    13.0  Benefits for former personnel.....           1
    21.0  Travel and transportation of
            persons.........................           1           1           2
    23.1  Rental payments to GSA............           2           2           2
    25.2  Other services....................           1           1           1
    25.3  Purchases of goods and services
            from Government accounts........           1           1           1
    25.7  Operation and maintenance of
            equipment.......................                                   1
    31.0  Equipment.........................           1
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------

    99.9    Total obligations...............          30          28          30
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         337         328         322
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           1
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNTS

                              [In millions of dollars]

    ----------------------------------------------------------------------------
                                             1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      91-022100  FFEL Guarantee agency
        reserve recoveries: Legislative
        proposal, subject to PAYGO..........                                 100
      91-291500  Repayment of loans, capital
        contributions, higher education
        activities, Education...............          90          68          68
                                               ---------   ---------  ----------

    General Fund Offsetting receipts from
     the public.............................          90          68         168
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                               GENERAL PROVISIONS

        Sec. 301. No part of the funds contained in this title may be used
    to force any school or school district which is desegregated as that
    term is defined in title IV of the Civil Rights Act of 1964, Public Law
    88-352, to take any action to force the busing of students; to force on
    account of race, creed or color the abolishment of any school so
    desegregated; or to force the transfer or assignment of any student
    attending any elementary or secondary school so desegregated to or from
    a particular school over the protest of his or her parents or parent.
        Sec. 302. (a) No part of the funds contained in this title shall be
    used to force any school or school district which is desegregated as
    that term is defined in title IV of the Civil Rights Act of 1964, Public
    Law 88-352, to take any action to force the busing of students; to
    require the abolishment of any school so desegregated; or to force on
    account of race, creed or color the transfer of students to or from a
    particular school so desegregated as a condition precedent to obtaining
    Federal funds otherwise available to any State, school district or
    school.
        (b) No funds appropriated in this Act may be used for the
    transportation of students or teachers (or for the purchase of equipment
    for such transportation) in order to overcome racial imbalance in any
    school or school system, or for the transportation of students or
    teachers (or for the purchase of equipment for such transportation) in
    order to carry out a plan of racial desegregation of any school or
    school system.
        Sec. 303. None of the funds contained in this Act shall be used to
    require, directly or indirectly, the transportation of any student to a
    school other than the school which is nearest the student's home, except
    for a student requiring special education, to the school offering such
    special education, in order to comply with title VI of the Civil Rights
    Act of 1964. For the purpose of this section an indirect requirement of
    transportation of students includes the transportation of students to
    carry out a plan involving the reorganization of the grade structure of
    schools, the pairing of schools, or the clustering of schools, or any
    combination of grade restructuring, pairing or clustering. The
    prohibition described in this section does not include the establishment
    of magnet schools.
        Sec. 304. No funds appropriated under this Act may be used to
    prevent the implementation of programs of voluntary prayer and
    meditation in the public schools.