[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
---------------------------------------------------------------------------

                                

  


 
                           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.