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


                     THE BUDGET FOR FISCAL YEAR 2003


 
                         DEPARTMENT OF EDUCATION


              OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

                              Federal Funds

General and special funds

                     Education for the Disadvantaged

    For carrying out title I of the Elementary and Secondary Education 
Act of 1965 (``ESEA'') and section 418A of the Higher Education Act of 
1965, [$12,346,900,000] $13,388,330,000, of which [$4,777,199,000] 
$5,830,129,000 shall become available on July 1, [2002] 2003, and shall 
remain available through September 30, [2003] 2004, and of which 
$7,383,301,000 shall become available on October 1, [2002] 2003, and 
shall remain available through September 30, [2003] 2004, for academic 
year [2002-2003] 2003-2004: Provided, That $235,000,000 shall be 
available for comprehensive school reform grants under part F of the 
ESEA: Provided further, That $15,000,000 of the amount appropriated for 
title I, part B, subpart 1 shall become available October 1, [2001] 
2002, and shall remain available through September 30, [2003] 2004, for 
evaluation and technical assistance: [Provided further, That the funds 
provided for title I, part B, subpart 2 shall become available October 
1, 2001, and shall remain available through September 30, 2003:] 
Provided further, That [$7,172,971,000] $7,175,901,000 shall be 
available for basic grants under section 1124: Provided further, That up 
to $3,500,000 of these funds shall be available to the Secretary of 
Education on October 1, [2001] 2002, to obtain updated educational-
agency-level census poverty data from the Bureau of the Census: Provided 
further, That $1,365,031,000 shall be available for concentration grants 
under section 1124A: Provided further, That [$1,018,499,000] 
$2,018,499,000 shall be available for targeted grants under section 
1125: Provided further, That $793,499,000 shall be available for 
education finance incentive grants under section 1125A. (Department of 
Education Appropriations Act, 2002; additional authorizing language is 
required.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Grants to local educational 
            agencies:
          Local educational agency 
              formulas:
00.01       Basic grants................       6,957       6,892       7,187
00.02       Concentration grants........       1,148       1,350       1,351
00.03       Targeted grants.............                   1,018       2,018
00.04     Education finance incentive 
            grants formula..............                     794         794
        Reading first:
00.05     Reading first State grants....                     705       1,000
00.06     Early reading first...........                      75          75
00.07   Even start......................         234         271         200
00.08   Literacy through school 
          libraries.....................                      12          12
00.09   State agency programs...........         425         450         444
00.10   Comprehensive school reform.....         209         237         235
00.11   Evaluation......................           9           9           9
00.12   Close up fellowships............                       2
00.13   Advanced placement..............                      22          22
00.14   Dropout prevention programs.....                      10
00.15   Capital expenses................           7
00.16   Migrant education projects......          30          38          38
                                           ---------   ---------  ----------
10.00   Total new obligations...........       9,022      11,888      13,388
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          41         163
22.00 New budget authority (gross)......       9,143      11,725      13,388
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       9,185      11,888      13,388
23.95 Total new obligations.............      -9,022     -11,888     -13,388
24.40 Unobligated balance carried 
        forward, end of year............         163
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       2,938       4,967       6,005
55.00   Advance appropriation...........       6,205       6,758       7,383
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       9,143      11,725      13,388
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       3,616       3,972       6,459
73.10 Total new obligations.............       9,022      11,888      13,388
73.20 Total outlays (gross).............      -8,650      -9,401     -11,850
73.40 Adjustments in expired accounts 
        (net)...........................         -15
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....       3,972       6,459       7,997
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       5,545       6,027       6,579
86.93 Outlays from discretionary 
        balances........................       3,106       3,374       5,271
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       8,650       9,401      11,850
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       9,143      11,725      13,388
90.00 Outlays...........................       8,650       9,401      11,850
---------------------------------------------------------------------------

  Budget Authority and Outlays Excluding Full Funding for Federal Retiree 
                       Costs (in millions of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       9,140      11,722      13,385
90.00 Outlays...........................       8,647       9,398      11,847
---------------------------------------------------------------------------

                        SUMMARY OF PROGRAM LEVEL

                        (in millions of dollars)

                                     2001-2002 
                                      academic 
                                        year      2002-2003 
                                                academic year 2003-2004 
                                                            academic year
New Budget Authority................       2,938       4,967       6,005
Advance appropriation...............       6,758       7,383       7,383
                                    ------------------------------------
      Total program level...........       9,696      12,350      13,388
                                    ====================================
Change in advance appropriation from 
the previous year...................        +533        +625           0

    Grants to local educational agencies.--Funds are allocated through 
four formulas--Basic Grants, Concentration Grants, Targeted Grants and 
Education Finance Incentive Grants--for local programs that provide 
extra academic support to help raise the achievement of eligible 
students, in high-poverty communities, or, in the case of schoolwide 
programs, help all students in high-poverty schools to meet challenging 
State acedmic standards. States must annually assess participating 
students in at least reading and mathematics, and school districts must 
identify for improvement, and provide assistance to, schools that for 
two consecutive years fail to make adequate yearly progress toward 
helping all groups of students reach the proficient level on the State 
assessments. Disticts must provide students attending such schools the 
choice of attending another public school that is not identified for 
improvement. After three years of failure, students who remain in the 
school would be permitted to use Title I funds to obtain supplemental 
educational services from a public- or private-sector provider. Schools 
that continue to fail to meet State standards would be subject to 
progressively stonger corrective actions and, after six years of 
failure, reconstitution under a restructing plan.

    Reading first State grants.--Funds provide assistance to State and 
local educational agencies in establishing reading

[[Page 348]]

programs for students in grades K-3 that are grounded in scientifically 
based reading research, in order to ensure that every student can read 
at grade level or above by the end of third grade.

    Early reading first.--Funds provide assistance to support local 
efforts, through competitive grants, to enhance the school readiness of 
young children, particularly those from low-income families, through 
scientific, research-based strategies and professional development that 
are designed to enhance the verbal skills, phonological awareness, 
letter knowledge, pre-reading skills, and early language development of 
children ages three through five.

    Even start.--Funds support formula grants to States, which award 
grants for local projects to partnerships of local educational agencies 
and other organizations to operate projects integrating early childhood 
education, adult literacy, parenting education, and interactive literacy 
activities between parents and their children into ``family literacy'' 
programs for low-income families with children under age seven.

    Literacy through school libraries.--Funds support competitive grants 
to local educational agencies to provide students with increased access 
to up-to-date school library materials and professional certified 
library media specialists.

    State agency migrant program.--Funds support formula grants to 
States for educational services to children of migratory farmworkers and 
fishers, with resources and services focused on children who have moved 
within the past 36 months.

    State agency neglected and delinquent program.--Funds support 
formula grants to States for educational services to children and youth 
under age 21 in State neglected, delinquent, or adult correction 
facilities.

    Comprehensive school reform.--Funds support formula grants to 
States, which in turn award grants to local educational agencies to help 
participating schools initiate and implement comprehensive school 
reforms based on approaches and methods grounded in reliable research 
and practice.

    Evaluation.--Funds support national activities to evaluate Title I 
programs and a national assessment of the program's effectiveness in 
helping States, school districts, and schools raise the overall 
achievement of disadvantaged students and narrow the achievement gap.

    Advanced placement.--Funds support formula grants to States to pay 
test fees for low-income students if they are enrolled in an Advanced 
Placement course and competitive grants to State educational agencies, 
local educational agencies, or national nonprofit educational entities 
for activities, such as teacher training and pre-advanced placement 
course development, designed to expand access for low-income individuals 
to Advanced Placement classes.

    Migrant education projects.--Funds support grants to institutions of 
higher education and other nonprofit agencies that assist migrant 
students to earn a high school equivalency certificate or to complete 
their first year of college.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0900-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
24.0  Printing and reproduction.........                       1           2
25.1  Advisory and assistance services..          11          26          30
25.2  Other services....................           8          16          18
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           6          13          15
41.0  Grants, subsidies, and 
        contributions...................       8,997      11,832      13,323
                                           ---------   ---------  ----------
99.9    Total new obligations...........       9,022      11,888      13,388
---------------------------------------------------------------------------

                                

                               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, [$1,143,500,000] $1,140,500,000, of 
which $982,500,000 shall be for basic support payments under section 
8003(b), $50,000,000 shall be for payments for children with 
disabilities under section 8003(d), [$48,000,000] $45,000,000 shall be 
for construction under section 8007 and shall remain available through 
September 30, [2003] 2004, $55,000,000 shall be for Federal property 
payments under section 8002, and $8,000,000, to remain available until 
expended, shall be for facilities maintenance under section 8008[: 
Provided, That $3,000,000 of the funds for section 8007 shall be 
available for the local educational agencies and in the amounts 
specified in the statement of the managers on the conference report 
accompanying this Act]. (Department of Education Appropriations Act, 
2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0102-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Payments for federally connected children:

00.01   Basic support payments..........         882         983         983
00.02   Supplemental payments for 
          children with disabilities....          50          50          50
00.03   Payments for heavily impacted 
          districts.....................           1           5
                                           ---------   ---------  ----------
00.91   Subtotal, payments for federally 
          connected children............         933       1,038       1,033
01.01 Facilities maintenance............           8           8           8
02.01 Construction......................          13          22          46
03.01 Payments for Federal property.....          41          55          55
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         995       1,123       1,142
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          14          14          35
22.00 New budget authority (gross)......         993       1,144       1,141
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,009       1,158       1,176
23.95 Total new obligations.............        -995      -1,123      -1,142
24.40 Unobligated balance carried 
        forward, end of year............          14          35          35
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         993       1,144       1,141
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         266         215         186
73.10 Total new obligations.............         995       1,123       1,142
73.20 Total outlays (gross).............      -1,040      -1,152      -1,126
73.40 Adjustments in expired accounts 
        (net)...........................          -4
73.45 Recoveries of prior year 
        obligations.....................          -2
74.40 Obligated balance, end of year....         215         186         202
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         918         999         999
86.93 Outlays from discretionary 
        balances........................         122         153         127
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,040       1,152       1,126
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         993       1,144       1,141
90.00 Outlays...........................       1,040       1,152       1,126
---------------------------------------------------------------------------

    Impact Aid helps to replace the lost local revenue that would 
otherwise be available to educate federally connected children. The 
presence of certain students living on Federal property, such as 
students who are military dependents or who reside on Indian lands, can 
place a financial burden on local educational agencies that educate 
them. The property on which the children live or their parents work is 
exempt from local property taxes, denying local educational agencies 
access to the primary source of revenue used by most communities to 
finance education.

    Basic support payments.--Payments will be made on behalf of 
approximately 1.1 million federally connected students enrolled in about 
1,330 local educational agencies to assist them

[[Page 349]]

in meeting their operation and maintenance costs. Average per-student 
payments will be approximately $870.

    Payments for Children with Disabilities.--Payments in addition to 
those provided under the Individuals with Disabilities Education Act 
will be provided on behalf of approximately 54,000 federally connected 
students with disabilities in about 830 local educational agencies. 
Average per-student payments will be approximately $920.

    Facilities maintenance.--Funds are used to provide emergency repairs 
for school facilities that serve military dependents and are owned by 
the Department of Education. Funds are also used to transfer the 
facilities to local educational agencies.

    Construction.--Formula payments will be provided to approximately 
170 local educational agencies with large proportions of federally 
connected students. Payments will be made on behalf of about 140,000 
students who are military dependents or who reside on Indian lands. In 
addition, approximately 25 construction grants will be awarded 
competitively to local educational agencies.

    Payments for Federal Property.--Payments are made to approximately 
250 local educational agencies in which real property owned by the 
Federal Government represents 10 percent or more of the assessed value 
of real property in the local educational agency.

                                

                       School Improvement Programs

    For carrying out school improvement activities authorized by titles 
II, IV, V, subpart 1 of part A of title VI, and parts B and C of title 
VII of the Elementary and Secondary Education Act of 1965 (``ESEA''); 
[part B of title II of the Higher Education Act;] the McKinney-Vento 
Homeless Assistance Act; and the Civil Rights Act of 1964, 
[$7,827,473,000] $6,784,484,000, of which [$1,717,609,000] $500,000,000 
shall become available October 1, [2001] 2002, and shall remain 
available through September 30, [2003] 2004, of which [$2,801,597,000] 
$3,579,517,000 shall become available on July 1, [2002] 2003, and remain 
available through September 30, [2003] 2004, and of which $1,765,000,000 
shall become available on October 1, [2002] 2003, and shall remain 
available through September 30, [2003] 2004, for academic year [2002-
2003: Provided, That $75,000,000 for continuing and new grants to 
demonstrate effective approaches to comprehensive school reform shall be 
allocated and expended in the same manner as the funds provided under 
the Fund for the Improvement of Education for this purpose were 
allocated and expended in fiscal year 2001: Provided further, That 
$142,189,000 shall be available to support the activities authorized 
under subpart 4 of part D of title V of the ESEA, of which up to 5 
percent shall become available on October 1, 2001, for evaluation, 
technical assistance, school networking, peer review of applications, 
and program outreach activities and of which not less than 95 percent 
shall become available on July 1, 2002, and remain available through 
September 30, 2003, for grants to local educational agencies: Provided 
further, That funds made available to local educational agencies under 
this subpart shall be used only for activities related to establishing 
smaller learning communities in high schools: Provided further, That of 
the amount made available for subpart 3, part C, of title II of the 
ESEA, $2,000,000 shall be used by the Center for Civic Education to 
implement a comprehensive program to improve public knowledge, 
understanding, and support of the Congress and the state legislatures: 
Provided further, That $269,906,000 of the funds for subpart 1, part D 
of title V of the ESEA shall be available for the projects and in the 
amounts specified in the statement of the managers on the conference 
report accompanying this Act] 2003-2004: Provided, That of the funds 
made available for subpart 2 of part A of title IV of the ESEA, 
$10,000,000, to remain available until expended, shall be for the 
Project School Emergency Response to Violence program to provide 
education-related services to local educational agencies in which the 
learning environment has been disrupted due to a violent or traumatic 
crisis: Provided further, That $387,000,000 shall be for subpart 1 of 
part A of title VI of the ESEA. (Department of Education Appropriations 
Act, 2002.)
    [For emergency expenses to provide education-related services to 
local educational agencies in which the learning environment has been 
disrupted due to a violent or traumatic crisis, for the Project School 
Emergency Response to Violence program, $10,000,000, to remain available 
until expended, and to be obligated from amounts made available in 
Public Law 107-38.] (Emergency Supplemental Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Direct program:
      Obligations by program activity:

        Improving teacher quality:
00.01     Improving teacher quality 
            State grants................                   1,700       2,850
00.02     National activities...........          10          35          15
00.03     Mathematics and science 
            partnerships................                      13          13
00.04     Troops-to-teachers............                      18          20
00.05     Transition to teaching........          31          35          39
00.06     National writing project......                      14
00.07     Civic education...............                      27
00.08     Teaching of traditional 
            American history............                     100          50
        Educational technology:
00.09     Educational technology State 
            grants......................                     700         700
00.10     Ready-to-learn television.....                      22          22
00.11     Preparing tomorrow's teachers 
            to use technology...........                      62
00.12   21st Century community learning 
          centers.......................                   1,000       1,000
        School choice and innovation:
00.13     State grants for innovative 
            programs....................         381         388         385
00.14     Charter schools grants........         190         200         200
00.15     Credit enhancement for charter 
            school facilities...........                                 100
00.16     Voluntary public school choice                      25          25
00.17     Magnet schools assistance.....         110         110         110
00.18     Choice demonstration fund.....                                  50
00.19   Fund for the Improvement of 
          Education.....................          54         833          84
        Safe and drug-free schools and 
            communities:
00.20     State grants..................         437         477         472
00.21     National programs.............         205         275         172
00.22   State assessments and enhanced 
          assessment instruments........                     387         387
00.23   Education for homeless children 
          and youth.....................          35          50          50
00.24   Education for Native Hawaiians..          28          30          18
00.26   Alaska Native education equity..          15          24          14
00.27   Training and advisory services..           7           7           7
00.28   Rural education.................                     163
00.29   Class size reduction............       1,369       1,154
00.30   School renovation grants........         800         400
00.31   Eisenhower professional 
          development State grants......         439           2
00.32   Eisenhower professional 
          development national 
          activities....................          45
00.33   Close up fellowships............           2
00.34   Comprehensive regional 
          assistance centers............          28
00.35   Advanced placement..............          22
                                           ---------   ---------  ----------
01.00 Total direct program..............       4,208       8,251       6,783
09.01 Reimbursable program..............          60
                                           ---------   ---------  ----------
10.00 Total new obligations.............       4,268       8,251       6,783
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           6         414
22.00 New budget authority (gross)......       4,679       7,837       6,784
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       4,686       8,251       6,784
23.95 Total new obligations.............      -4,268      -8,251      -6,783
23.98 Unobligated balance expiring or 
        withdrawn.......................          -3
24.40 Unobligated balance carried 
        forward, end of year............         414
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       3,107       6,062       5,019
40.15   Appropriation (emergency).......                      10
41.00   Transferred to other accounts...          -3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       3,104       6,072       5,019
55.00   Advance appropriation...........       1,515       1,765       1,765
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          60
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       4,679       7,837       6,784
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       2,380       3,771       7,574
73.10 Total new obligations.............       4,268       8,251       6,783
73.20 Total outlays (gross).............      -2,856      -4,449      -6,713
73.40 Adjustments in expired accounts 
        (net)...........................         -20
73.45 Recoveries of prior year 
        obligations.....................          -1

[[Page 350]]

74.40 Obligated balance, end of year....       3,771       7,574       7,644
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,214       1,628       1,575
86.93 Outlays from discretionary 
        balances........................       1,642       2,821       5,138
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,856       4,449       6,713
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -60
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       4,619       7,837       6,784
90.00 Outlays...........................       2,796       4,449       6,713
---------------------------------------------------------------------------


                        SUMMARY OF PROGRAM LEVEL

                        (in millions of dollars)

                                     2001-2002 
                                      Academic 
                                        Year      2002-2003 
                                                Academic Year 2003-2004 
                                                            Academic Year
New Budget Authority................       3,104       6,072       5,019
Advance Appropriation...............       1,765       1,765       1,765
                                    ------------------------------------
      Total program level...........       4,869       7,837       6,784
                                    ====================================
Change in advance appropriation over 
previous year.......................        +250

    Improving teacher quality.--
            Improving teacher quality State grants.--Funds support State 
        and school district activities to prepare, train, and recruit 
        high-quality teachers to improve student achievement.
            National activities.--Funds support competitive grants to 
        improve the knowledge and skills of early childhood educators 
        who work in communities that have high concentrations of 
        children living in poverty.
            Mathematics and science partnerships.--Funds support State 
        and local efforts to improve students' academic achievement in 
        mathematics and science by promoting strong teaching skills for 
        elementary and secondary school teachers, including integrating 
        teaching methods based on scientifically-based research and 
        technology into the curriculum.
            Troops-to-teachers.--Funds assist eligible members of the 
        armed forces to obtain certification as teachers and to become 
        highly qualified teachers.
            Transition to teaching.--Funds support competitive grants to 
        establish programs to recruit and retain highly qualified mid-
        career professionals and recent college graduates as teachers in 
        high-need schools.
            Teaching of traditional American history.--Funds support 
        competitive grants to school districts for activities to improve 
        history instruction and provide professional development for 
        teachers of American history.

    Educational technology.--
            Educational technology State grants.--Funds support formula 
        grants to States, which target funds to high-poverty school 
        districts, to acquire computers, connections, software, and 
        teacher training to enable schools to integrate technology 
        effectively into curricula.
            Ready-to-learn television.--Funds support the development, 
        distribution and production of educational video for preschool 
        children, elementary school children, and their parents to 
        facilitate student academic achievement.

    21st Century community learning centers.--
            Funds support formula grants to States, which award 
        subgrants to communities to provide academic enrichment 
        opportunities and related services to students, primarily 
        students who attend high-poverty schools, and their families 
        during before-school, after-school, weekend, and summer hours.

    School choice and innovation.--
            State grants for innovative programs.--Funds support formula 
        grants to States and local educational agencies to help 
        implement innovative strategies for improving student 
        achievement.
            Charter schools grants.--Funds support competitive grants to 
        State educational agencies and charter schools to support the 
        planning, design, initial implementation, and dissemination of 
        information regarding charter schools. These schools are created 
        by teachers, parents, and members of the community, and are 
        exempt from certain local, State, and Federal regulations.
            Credit enhancement for charter school facilities.--Funds 
        support competitive grants to State and local governments, 
        nonprofit entities, and public and nonprofit consortia, to 
        assist charter schools in acquiring, leasing, and renovating 
        school facilities.
            Voluntary public school choice.--Funds support competitive 
        grants to State educational agencies or local educational 
        agencies to implement programs that provide students, 
        particularly students who attend low-performing schools, with 
        expanded public school choice options.
        Magnet schools assistance.--Funds support competitive grants to 
    local educational agencies to establish and operate magnet school 
    programs that are part of an approved desegregation plan.
        Choice demonstration fund.--Funds support grants to State 
    educational agencies, local educational agencies, institutions of 
    higher education, governmental agencies, or other public or private 
    entities for research projects to measure the effects on student, 
    school, and district achievement of providing parents--particularly 
    low-income parents--with school choice options.

    Fund for the Improvement of Education (FIE).--Funds support 
nationally significant projects to improve the quality of elementary and 
secondary education to help all children meet challenging State content 
and student achievement standards, including initiatives to improve 
teacher quality. In addition, funds support the distribution of books to 
promote childhood literacy and projects to design and implement 
character education programs.

    Safe and drug-free schools and communities.--
        State Grants.--Funds provide formula grants to States to support 
    research-based drug and violence-prevention programs and to 
    implement strategies to improve school safety.
        National Programs.--Funds support national activities to prevent 
    violence and the illegal use of drugs among, and to promote safety 
    and discipline for, students.

    State assessments and enhanced assessments instruments.--Funds 
support formula grants to States to develop and implement the new 
assessments, and related accountability efforts, that States would use 
to test all children annually in grades 3-8 in reading and mathematics.

    Education for homeless children and youth.--Funds support formula 
grants to States to provide educational and support services that enable 
homeless children and youth to attend and achieve success in school.

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

    Alaska Native education equity.--Funds provide supplemental 
education services to Alaska Natives in areas such

[[Page 351]]

as educational planning, curriculum development, teacher training, 
teacher recruitment, student enrichment, and home-based instruction for 
pre-school children. Grants also go to organizations specified in the 
law.

    Training and advisory services.--Funds support grants to regional 
equity assistance centers that provide technical assistance to school 
districts in addressing equity in education related to issues of race, 
gender, and national origin.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1000-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

24.0    Printing and reproduction.......           1           1           2
25.1    Advisory and assistance services           1          13          16
25.2    Other services..................          37          56          50
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           1           1           1
25.5    Research and development 
          contracts.....................           1           2
41.0    Grants, subsidies, and 
          contributions.................       4,167       8,178       6,714
                                           ---------   ---------  ----------
99.0      Direct obligations............       4,208       8,251       6,783
99.0  Reimbursable obligations..........          60
                                           ---------   ---------  ----------
99.9    Total new obligations...........       4,268       8,251       6,783
---------------------------------------------------------------------------

                           Reading Excellence

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0011-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Reading Excellence................         296         201
                                           ---------   ---------  ----------
10.00   Total new obligations...........         296         201
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          16           6
22.00 New budget authority (gross)......         286         195
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         302         201
23.95 Total new obligations.............        -296        -201
24.40 Unobligated balance carried 
        forward, end of year............           6
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          91
55.00   Advance appropriation...........         195         195
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         286         195
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         282         449         377
73.10 Total new obligations.............         296         201
73.20 Total outlays (gross).............        -128        -273        -266
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....         449         377         111
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           9          21
86.93 Outlays from discretionary 
        balances........................         118         251         266
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         128         273         266
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         286         195
90.00 Outlays...........................         128         273         266
---------------------------------------------------------------------------

    Reading Excellence.--This program has been replaced by the Reading 
First program in the Education for the Disadvantaged account. Amounts in 
these schedules reflect balances that are spending out from prior-year 
appropriations.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0011-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
24.0  Printing and reproduction.........           1
25.1  Advisory and assistance services..           2
25.2  Other services....................           3
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           3
41.0  Grants, subsidies, and 
        contributions...................         287         201
                                           ---------   ---------  ----------
99.9    Total new obligations...........         296         201
---------------------------------------------------------------------------

                                

                            Education Reform

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0500-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 21st Century community learning 
        centers.........................         846
01.01 Small learning communities........          22         103
      Educational technology:

02.01   Technology literacy challenge 
          fund..........................         450
02.02   Technology innovation challenge 
          grants........................         136
02.03   Regional technology in education 
          consortia.....................          10
      National activities:

02.04   Teacher training in technology..         125
02.05   Community-based technology......          65
02.06   Technology leadership activities           2
02.07 Star schools......................          59
02.08 Ready to learn television.........          16
02.09 Telecommunications demonstration 
        project for mathematics.........           9
                                           ---------   ---------  ----------
02.91   Total, Education technology.....         872
      Goals 2000:

03.01   State and local education 
          systemic improvement..........           8
03.02   Parental assistance.............          38
                                           ---------   ---------  ----------
03.91   Total, Goals 2000...............          46
04.01 School-to-work opportunities......          30
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,816         103
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          63         103
22.00 New budget authority (gross)......       1,881
22.21 Unobligated balance transferred to 
        other accounts..................         -26
22.22 Unobligated balance transferred 
        from other accounts.............           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,920         103
23.95 Total new obligations.............      -1,816        -103
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
24.40 Unobligated balance carried 
        forward, end of year............         103
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,881
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       2,392       2,464         774
73.10 Total new obligations.............       1,816         103
73.20 Total outlays (gross).............      -1,738      -1,793        -651
73.40 Adjustments in expired accounts 
        (net)...........................          -6
74.40 Obligated balance, end of year....       2,464         774         123
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,577
86.93 Outlays from discretionary 
        balances........................         161       1,793         651
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,738       1,793         651
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,881
90.00 Outlays...........................       1,738       1,793         651
---------------------------------------------------------------------------

    Programs in this account have been transferred to the School 
Improvement account or discontinued. Amounts in these schedules reflect 
balances that are spending out from prior-year appropriations.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0500-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.1  Advisory and assistance services..           7
25.2  Other services....................           8
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           1
25.5  Research and development contracts           8
41.0  Grants, subsidies, and 
        contributions...................       1,792         103
                                           ---------   ---------  ----------

[[Page 352]]


99.9    Total new obligations...........       1,816         103
---------------------------------------------------------------------------

                                

                      Chicago Litigation Settlement

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0220-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................           1           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           1
23.95 Total new obligations.............          -1          -1
24.40 Unobligated balance carried 
        forward, end of year............           1
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           2           1
73.10 Total new obligations.............           1           1
73.20 Total outlays (gross).............          -1          -2          -1
74.40 Obligated balance, end of year....           2           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           1           2           1
----------------------------------------------------------------------------

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

    Funds made available under this account were reappropriated 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.

                                

                            Indian Education

    For expenses necessary to carry out, to the extent not otherwise 
provided, title VII, part A of the Elementary and Secondary Education 
Act of 1965, [$120,368,000] $122,368,000. (Department of Education 
Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Grants to local educational 
        agencies........................          93          97          97
00.02 Special programs for Indian 
        children........................          20          20          20
00.03 National activities...............           3           3           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........         116         120         122
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         116         120         122
23.95 Total new obligations.............        -116        -120        -122
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         116         120         122
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          95         132         139
73.10 Total new obligations.............         116         120         122
73.20 Total outlays (gross).............         -78        -113        -119
73.40 Adjustments in expired accounts 
        (net)...........................          -2
74.40 Obligated balance, end of year....         132         139         143
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2           6           6
86.93 Outlays from discretionary 
        balances........................          76         107         112
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          78         113         119
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         116         120         122
90.00 Outlays...........................          78         113         119
---------------------------------------------------------------------------

    The Indian Education program supports the efforts of local 
educational agencies and tribal schools to improve teaching and learning 
for the Nation's American Indian and Alaska Native Children.

    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 assist participating students in meeting the same 
academic standards as all other students. In 2001, the Department made 
1,212 formula grants to local educational agencies and tribal schools 
serving more than 462,000 students.

    Special programs for Indian Children.--The Department makes 
competitive awards for demonstration projects in early childhood 
education, professional development grants, American Indian Teacher 
Corps grants, and grants for the American Indian Administrator Corps. 
The professional development awards in this activity are designed to 
improve the quality of teachers and administrators in school districts 
with concentrations of Indian students.

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0101-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.2  Other services....................           2           3           5
41.0  Grants, subsidies, and 
        contributions...................         114         117         117
                                           ---------   ---------  ----------
99.9    Total new obligations...........         116         120         122
---------------------------------------------------------------------------

                                


 
                 OFFICE OF ENGLISH LANGUAGE ACQUISITION

                              Federal Funds

General and special funds:

                   [Bilingual and Immigrant Education]

                      English Language Acquisition

    For carrying out title III, part A of the ESEA, $665,000,000, of 
which [$415,000,000] $469,000,000 shall become available on July 1, 
[2002] 2003, and shall remain available through September 30, [2003] 
2004. (Department of Education Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Language acquisition State grants.                     456         510
00.02 Bilingual education instructional 
        services........................         179         121          91
00.03 Bilingual education support 
        services........................          16
00.04 Bilingual education professional 
        development.....................          99          88          64
00.05 Immigrant education...............         150
00.06 Foreign language assistance.......          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........         458         665         665
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         460         665         665
23.95 Total new obligations.............        -458        -665        -665
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
----------------------------------------------------------------------------

[[Page 353]]



    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         460         665         665
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         566         603         789
73.10 Total new obligations.............         458         665         665
73.20 Total outlays (gross).............        -410        -479        -600
73.40 Adjustments in expired accounts 
        (net)...........................         -11
74.40 Obligated balance, end of year....         603         789         854
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          17          33          33
86.93 Outlays from discretionary 
        balances........................         393         446         567
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         410         479         600
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         460         665         665
90.00 Outlays...........................         410         479         600
---------------------------------------------------------------------------

    Language acquisition State grants.--Funds provide formula grants to 
States and discretionary National Activities grants to improve services 
for limited English proficient and immigrant students. States are 
accountable for demonstrating that limited English proficient students 
are learning English and meeting the same high State standards as all 
other students. Under National Activities, the statute authorizes 
competitive professional development grants and a clearinghouse.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1300-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.2  Other services....................           3           3           3
25.5  Research and development contracts           4
41.0  Grants, subsidies, and 
        contributions...................         451         662         662
                                           ---------   ---------  ----------
99.9    Total new obligations...........         458         665         665
---------------------------------------------------------------------------

                                


 
         OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

                              Federal Funds

General and special funds:

                            Special Education

    For carrying out the Individuals with Disabilities Education Act, 
[$8,672,804,000] $9,687,804,000, of which [$3,315,233,000] 
$4,335,233,000 shall become available for obligation on July 1, [2002] 
2003, and shall remain available through September 30, [2003] 2004, and 
of which $5,072,000,000 shall become available on October 1, [2002] 
2003, and shall remain available through September 30, [2003] 2004, for 
academic year [2002-2003] 2003-2004: Provided, That [$9,500,000 shall be 
for Recording for the Blind and Dyslexic to support the development, 
production, and circulation of recorded educational materials: Provided 
further, That $1,500,000 shall be for the recipient of funds provided by 
Public Law 105-78 under section 687(b)(2)(G) of the Act to provide 
information on diagnosis, intervention, and teaching strategies for 
children with disabilities: Provided further, That] the amount for 
section 611(c) of the Act shall be equal to the amount available for 
that section [under Public Law 106-554] in the Department of Education 
Appropriations Act, 2002, increased by the amount of inflation as 
specified in section 611(f)(1)(B)(ii) of the Act[: Provided further, 
That $8,380,000 of the funds for section 672 of the Act shall be 
available for the projects and in the amounts specified in the statement 
of the managers on the conference report accompanying this Act]. 
(Department of Education Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Direct program:
      Obligations by program activity:

        State grants:
00.01     Grants to States..............       5,101       7,547       8,529
00.02     Preschool grants..............         414         390         390
00.03     Grants for infants and 
            families....................         425         472         437
                                           ---------   ---------  ----------
00.91       Subtotal, State grants......       5,940       8,409       9,356
        National activities:
01.01     State improvement.............          35          95          52
01.02     Research and innovation.......          78          78          78
01.03     Technical assistance and 
            dissemination...............          53          53          53
01.04     Personnel preparation.........          82          90          90
01.05     Parent information centers....          26          26          26
01.06     Technology and media services.          39          38          33
                                           ---------   ---------  ----------
01.91       Subtotal, National 
              activities................         313         380         332
                                           ---------   ---------  ----------
02.00 Total Direct Program..............       6,253       8,789       9,688
                                           ---------   ---------  ----------
10.00 Total new obligations.............       6,253       8,789       9,688
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         259         116
22.00 New budget authority (gross)......       6,110       8,673       9,688
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       6,369       8,789       9,688
23.95 Total new obligations.............      -6,253      -8,789      -9,688
24.40 Unobligated balance carried 
        forward, end of year............         116
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       2,368       3,601       4,616
55.00   Advance appropriation...........       3,742       5,072       5,072
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       6,110       8,673       9,688
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       4,044       4,469       6,334
73.10 Total new obligations.............       6,253       8,789       9,688
73.20 Total outlays (gross).............      -5,809      -6,924      -8,192
73.40 Adjustments in expired accounts 
        (net)...........................         -20
74.40 Obligated balance, end of year....       4,469       6,334       7,830
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       2,314       3,470       3,491
86.93 Outlays from discretionary 
        balances........................       3,495       3,454       4,701
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       5,809       6,924       8,192
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       6,110       8,673       9,688
90.00 Outlays...........................       5,809       6,924       8,192
---------------------------------------------------------------------------

                        SUMMARY OF PROGRAM LEVEL

                        [In millions of dollars]

                                     2001-2002 
                                      academic 
                                        year      2002-2003 
                                                academic year 2003-2004 
                                                            academic year
Current Budget Authority............       2,368       3,601       4,616
Advance appropriation...............       5,072       5,072       5,072
                                    ------------------------------------
    Total program level.............       7,440       8,673       9,688
                                    ====================================
Change in advance appropriation from 
the previous year...................      +1,330           0           0

    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 ages 3 through 21.
        Preschool grants.--Formula grants provide additional funds to 
    States to further assist them in providing special education and 
    related services to children with disabilities ages 3 through 5 
    served under the Grants to States program.
        The goal of both of these programs is to improve results for 
    children with disabilities by assisting State and local educational 
    agencies to provide children with disabilities with access to high 
    quality education that will help them meet challenging standards and 
    prepare them for employment and independent living.
        Grants for infants and families.--Formula grants are provided to 
    assist States to implement statewide systems of coordinated, 
    comprehensive, multi-disciplinary interagency programs to provide 
    early intervention services to children with disabilities, birth 
    through age 2, and their families.

[[Page 354]]

        The goal of this program is to help States provide a 
    comprehensive system of early intervention services that will 
    enhance child and family outcomes.

    National activities.--These activities include research, 
demonstration, personnel preparation, technical assistance, grants to 
States to promote systems change, and other activities to support State 
efforts to improve results for children with disabilities under the 
State grants programs.

    The goal of National Activities is to link States, school systems, 
and families to best practices to improve results for infants, toddlers, 
and children with disabilities.

    Performance data related to these goals include:

                                         2001 actual   2002 est.   2003 est.
Number of children served in first 
    quarter of fiscal year:
  Ages 3 through 21.....................       6,381       6,470       6,548
  Ages 3 through 5......................         599         611         623
  Birth through 2.......................         231         242         255

                                    1997-1998 ac1998-1999 actual  1999-2000 
                                                                      actual
    Educational Environment
Percent of children ages 6 through 21 
    provided special education in:
  Regular classrooms....................        46.5        47.4        47.3
  Resource rooms........................        29.1        28.4        28.3
  Separate classes......................        20.4        20.1        20.3
  Separate schools......................         2.8         2.9         2.9
  Residential facilities................          .7          .7          .7
  Home or hospital......................          .5          .5          .5
    Status of Exiting Students
Percent of students with disabilities 
    aged 14-21 leaving school:
  Graduated with a diploma..............        55.4        57.4        56.2
  Graduated through certification.......        11.2        11.2        11.4
  Dropped out of school.................        31.0        28.9        29.4
  Reached maximum age and other.........         2.4         2.5         3.0

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0300-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.2  Other services....................          21          21          21
41.0  Grants, subsidies, and 
        contributions...................       6,232       8,768       9,667
                                           ---------   ---------  ----------
99.9    Total new obligations...........       6,253       8,789       9,688
---------------------------------------------------------------------------

                                

             Rehabilitation Services and Disability Research

    For carrying out, to the extent not otherwise provided, the 
Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and 
the Helen Keller National Center Act, [$2,945,813,000] $3,001,840,000, 
of which [$56,552,000] $45,218,000 shall remain available through 
September 30, [2003: Provided] 2004, of which $30,000,000 shall be used 
to make awards to State Vocational Rehabilitation agencies based on 
their performance under the Vocational Rehabilitation State Grants 
program as determined by the Secretary: Provided, That funds available 
under the Vocational Rehabilitation State Grants program may be used by 
State Vocational Rehabilitation agencies to pay for the fiscal year 2003 
continuation costs of projects funded in fiscal year 2002 under title 
VI, Part A of the Rehabilitation Act: Provided further, That the funds 
provided for title I of the Assistive Technology Act of 1998 (``the AT 
Act'') shall be allocated notwithstanding section 105(b)(1) of the AT 
Act: [Provided further, That in the case of a State that was in the 
third year of a 3-year extension grant made pursuant to section 101(f) 
of the Assistive Technology Act of 1998 for fiscal year 2001, the 
Secretary of Education shall award under such section an additional 1-
year extension of the grant to such State for fiscal year 2002 in an 
amount equal to the amount the State received under such section for 
fiscal year 2001:] Provided further, That each State shall be provided 
$50,000 for activities under section 102 of the AT Act: Provided 
further, That [$36,552,000] $15,218,000 shall be used to support grants 
for up to 3 years to States under title III of the AT Act, of which the 
Federal share shall not exceed 75 percent in the first year, 50 percent 
in the second year, and 25 percent in the third year, and that the 
requirements in section 301(c)(2) and section 302 of that Act shall not 
apply to such grants[: Provided further, That $3,746,000 of the funds 
for section 303 of the Rehabilitation Act of 1973 shall be available for 
the projects and in the amounts specified in the statement of the 
managers on the conference report accompanying this Act]. (Department of 
Education Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0301-0-1-506      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Vocational rehabilitation State 
          grants........................       2,400       2,481       2,616
00.02   Vocational rehabilitation 
          incentive grants..............                                  30
00.03   Client assistance State grants..          12          12          12
00.04   Training........................          40          40          43
00.05   Demonstration and training 
          programs......................          21          21          17
00.06   Migrant and seasonal farmworkers           2           2
00.07   Recreational programs...........           2           3
00.08   Protection and advocacy of 
          individual rights.............          14          15          15
00.09   Projects with industry..........          22          22
00.10   Supported employment State 
          grants........................          38          38
00.11   Independent living..............         100         110         117
00.12   Program improvement.............           2           1           1
00.13   Evaluation......................           2           1           1
00.14   Helen Keller National Center....           9           9           9
00.15   National Institute on Disability 
          and Rehabilitation Research...         100         110         110
00.16   Assistive technology............          40          61          31
00.17   Access to Telework Fund.........                      10          10
                                           ---------   ---------  ----------
01.00   Total direct program............       2,804       2,936       3,012
09.01 Reimbursable program..............           7           7           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,811       2,943       3,019
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                  10
22.00 New budget authority (gross)......       2,812       2,953       3,009
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,812       2,953       3,019
23.95 Total new obligations.............      -2,811      -2,943      -3,019
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
24.40 Unobligated balance carried 
        forward, end of year............                      10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         405         464         469
      Mandatory:

60.00   Appropriation...................       2,400       2,482       2,533
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           7           7           7
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,812       2,953       3,009
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         977       1,043         951
73.10 Total new obligations.............       2,811       2,943       3,019
73.20 Total outlays (gross).............      -2,736      -3,035      -2,989
73.40 Adjustments in expired accounts 
        (net)...........................          -9
74.40 Obligated balance, end of year....       1,043         951         981
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          70         330         333
86.93 Outlays from discretionary 
        balances........................         277         447         140
86.97 Outlays from new mandatory 
        authority.......................       1,892       1,737       1,773
86.98 Outlays from mandatory balances...         497         521         742
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,736       3,035       2,989
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -3          -3          -3
88.40     Non-Federal sources...........          -4          -4          -4
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -7          -7          -7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,805       2,946       3,002
90.00 Outlays...........................       2,730       3,028       2,982
---------------------------------------------------------------------------

    Vocational rehabilitation State grants.--The basic State grants 
program provides Federal matching funds to State vocational 
rehabilitation (VR) agencies to assist individuals with

[[Page 355]]

physical or mental impairments to become gainfully employed. Services 
are tailored to the specific needs of the individual. Priority is given 
to serving those with the most significant disabilities. Current law 
requires that between 1.0 percent and 1.5 percent of the funds 
appropriated for the VR State grants program be set aside for Grants for 
Indians in 2003.

    The table below presents national data on selected performance 
measures for the VR State grants program. The data are based on the 
number of individuals whose service records were closed in fiscal years 
1999 (370,742) and 2000 (376,510).

                   CONSUMER OUTCOMES (CASES CLOSED)

                                          1999 actual     2000 actual
Individuals achieving employment 
 outcomes...............................       231,714         236,210
 Percent with significant disabilities..         84.9%           87.1%
Employment outcomes as a percent all of 
 individuals receiving services.........         62.5%           62.7%

    The 2003 budget request reflects a multi-year Administration effort 
to reform job training programs, target resources to programs with 
documented effectiveness, and eliminate funding for duplicative and 
overlapping programs. Consistent with this crosscutting reform, the 
budget consolidates funding for three programs in this account 
(Supported Employment State Grants, Projects with Industry, and the 
Migrant and Seasonal Farmworkers program) within the Vocational 
Rehabilitation State Grants program.

    Vocational rehabilitation incentive grants.--Under this new program, 
incentive grants would be used to encourage State VR agencies to improve 
their performance in helping individuals with disabilities obtain 
competitive employment. Grants would be awarded to State VR agencies 
based on program performance.

    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 and to upgrade the skills of those already 
employed.

    Demonstration and training programs.--Grants are made for programs 
that expand and improve the provision of rehabilitation services, or 
that further the purposes of the Rehabilitation Act.

    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.

    Independent living.--Grants are awarded to States and nonprofit 
agencies to assist individuals with significant disabilities in their 
achievement of self-determined independent living goals. Grants are also 
awarded to provide support services to older blind individuals to 
increase their ability to care for their own needs.

    Program improvement.--Funds are 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 goals of the Rehabilitation Act. Examples of program improvement 
activities include technical assistance, dissemination, and performance 
measurement activities.

    Evaluation.--Studies are conducted to evaluate the impact and 
effectiveness of various programs authorized under the Rehabilitation 
Act.

    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 the conduct and dissemination of research aimed 
at improving the lives of individuals with disabilities. The Institute 
also promotes the development and utilization of new technologies to 
assist these individuals in achieving greater independence and 
integration into society.

    Assistive technology.--Activities include the Assistive Technology 
State grant program, protection and advocacy services, and technical 
assistance designed to develop and implement consumer-responsive 
comprehensive statewide programs of technology-related assistance for 
individuals with disabilities. Grants also are made to States to 
establish alternative financing programs to increase access to assistive 
technology for individuals with disabilities.

    Access to telework fund.--Federal matching funds are awarded to 
States to provide loans for individuals with disabilities to purchase 
computers and other equipment so that they can telework from home.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0301-0-1-506      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

25.1    Advisory and assistance services           5           5           5
25.2    Other services..................           2           2           2
25.5    Research and development 
          contracts.....................           2           5           5
41.0    Grants, subsidies, and 
          contributions.................       2,795       2,924       3,000
                                           ---------   ---------  ----------
99.0      Direct obligations............       2,804       2,936       3,012
99.0  Reimbursable obligations..........           7           7           7
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,811       2,943       3,019
---------------------------------------------------------------------------

                                

           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.), $14,000,000. (Department of Education Appropriations Act, 
2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0600-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 41.0).....................          12          14          14
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          12          14          14
23.95 Total new obligations.............         -12         -14         -14
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          12          14          14
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           4           5           1
73.10 Total new obligations.............          12          14          14
73.20 Total outlays (gross).............         -11         -19         -14
74.40 Obligated balance, end of year....           5           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           7          13          13
86.93 Outlays from discretionary 
        balances........................           3           5           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          11          19          14
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          12          14          14
90.00 Outlays...........................          11          19          14
---------------------------------------------------------------------------



[[Page 356]]



    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 2001, the portion of the Federal appropriation 
allocated to educational materials represented approximately 50.6 
percent of the Printing House's total sales. The full appropriation 
represented approximately 43.2 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.), 
[$55,376,000] $52,014,000, of which [$5,376,000] $1,600,000 shall be for 
construction and shall remain available until expended[: Provided, That 
from the total amount available, the Institute may at its discretion use 
funds], and of which not less than $1,000,000 shall be used for the 
endowment program as authorized under section 207: Provided, That such 
$1,000,000 is available until expended. (Department of Education 
Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0601-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operations........................          48          50          49
00.02 Construction......................           5           5           2
00.03 Endowment.........................                                   1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          53          55          52
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          53          55          52
23.95 Total new obligations.............         -53         -55         -52
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          53          55          52
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           5                       8
73.10 Total new obligations.............          53          55          52
73.20 Total outlays (gross).............         -58         -48         -51
74.40 Obligated balance, end of year....                       8           9
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          53          48          46
86.93 Outlays from discretionary 
        balances........................           5                       4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          58          48          51
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          53          55          52
90.00 Outlays...........................          58          48          51
---------------------------------------------------------------------------

    This residential program 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 2001, Federal appropriations 
represented 81 percent of the Institute's operating budget. The request 
includes funds for the Endowment Grant program. The request also 
includes funds for a construction project to improve roadways, walkways, 
and parking lots associated with NTID buildings.

                                

                          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.), [$96,938,000: Provided, That from the total amount 
available, the University may at its discretion use funds] $94,446,000, 
of which not less than $1,000,000 shall be used for the endowment 
program as authorized under section 207: Provided, That such $1,000,000 
is available until expended. (Department of Education Appropriations 
Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0602-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operations........................          89          97          93
00.02 Endowment.........................                                   1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          89          97          94
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          89          97          94
23.95 Total new obligations.............         -89         -97         -94
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          89          97          94
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           8                       6
73.10 Total new obligations.............          89          97          94
73.20 Total outlays (gross).............         -97         -91         -95
74.40 Obligated balance, end of year....                       6           6
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          89          91          88
86.93 Outlays from discretionary 
        balances........................           8                       6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          97          91          95
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          89          97          94
90.00 Outlays...........................          97          91          95
---------------------------------------------------------------------------

    This institution provides 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 elementary and secondary education 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 high school age 
students who are deaf. 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 2001, the Federal appropriation represented 62.4 percent of the 
University's total operating budget, which also includes Federal 
financial aid, vocational rehabilitation, Endowment Grant income, and 
competitive grants and contracts, and 98.1 percent of the operating 
budgets of the related elementary and secondary schools. The request 
also includes funds for the Endowment Grant program.

                                


 
                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, and the Adult 
Education and Family Literacy Act, [and title VIII-D of the Higher 
Education Act of 1965, as amended, and Public Law 102-73, 
$1,934,060,000,] $1,897,617,000 of which [$1,136,560,000]

[[Page 357]]

$1,100,117,000 shall become available on July 1, [2002] 2003 and shall 
remain available through September 30, [2003] 2004 and of which 
$791,000,000 shall become available on October 1, [2002] 2003 and shall 
remain available through September 30, [2003] 2004: Provided, [That of 
the amounts made available for the Carl D. Perkins Vocational and 
Applied Technology Education Act, $6,500,000 shall be for tribally 
controlled postsecondary vocational and technical institutions under 
section 117: Provided further, That notwithstanding any other provision 
of law or any regulation, the Secretary of Education shall not require 
the use of a restricted indirect cost rate for grants issued pursuant to 
section 117 of the Carl D. Perkins Vocational and Applied Technology 
Education Act: Provided further, That $9,500,000 shall be for carrying 
out section 118 of such Act: Provided further, That of the amounts made 
available for the Carl D. Perkins Vocational and Applied Technology 
Education Act, $5,000,000 shall be for demonstration activities 
authorized by section 207: Provided further,] That of the amount 
provided for Adult Education State Grants, $70,000,000 shall be made 
available for integrated English literacy and civics education services 
to immigrants and other limited English proficient populations: Provided 
further, That of the amount reserved for integrated English literacy and 
civics education, notwithstanding section 211 of the Adult Education and 
Family Literacy Act, 65 percent shall be allocated to States based on a 
State's absolute need as determined by calculating each State's share of 
a 10-year average of the Immigration and Naturalization Service data for 
immigrants admitted for legal permanent residence for the 10 most recent 
years, and 35 percent allocated to States that experienced growth as 
measured by the average of the 3 most recent years for which Immigration 
and Naturalization Service data for immigrants admitted for legal 
permanent residence are available, except that no State shall be 
allocated an amount less than $60,000: Provided further, That of the 
amounts made available for the Adult Education and Family Literacy Act, 
$9,500,000 shall be for national leadership activities under section 243 
and [$6,560,000] $6,617,000 shall be for the National Institute for 
Literacy under section 242: Provided further, That [$22,000,000 shall be 
for Youth Offender Grants, of which $5,000,000 shall be used in 
accordance with section 601 of Public Law 102-73 as that section was in 
effect prior to the enactment of Public Law 105-220] of the amounts made 
available for title I of the Perkins Act, the Secretary may reserve up 
to 0.54 percent for incentive grants under section 503 of the Workforce 
Investment Act, without regard to section 111(a)(1)(C) of the Perkins 
Act: Provided further, That of the amounts made available for the Adult 
Education and Family Literacy Act, the Secretary may reserve up to 1.72 
percent for incentive grants under section 503 of the Workforce 
Investment Act, without regard to section 211(a)(3) of the Adult 
Education and Family Literacy Act. (Department of Education 
Appropriations Act, 2002; additional authorizing language required.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Vocational education:

        Annual appropriations:
          Vocational education:
00.01       State grants................       1,128       1,178       1,180
00.02       National programs...........          15          19          12
00.03       Occupational and employment 
              information...............           9           2           9
00.04       Tribally controlled 
              postsecondary vocational 
              institutions..............           6           7           7
00.05       Tech-prep education.........         110         108         108
00.06     Tech-prep demonstration.......                       5
                                           ---------   ---------  ----------
00.91       Total, Vocational education.       1,268       1,319       1,316
          Adult education:
01.01       State grants................         538         573         575
01.02       National Institute for 
              Literacy..................           7           7           7
01.03       National leadership 
              activities................          14          14          10
                                           ---------   ---------  ----------
01.91       Total, adult education......         559         594         592
02.01     State grants for incarcerated 
            youth offenders.............          14          17           3
03.01     Literacy programs for 
            prisoners...................           5           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,846       1,935       1,915
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          86          65          64
22.00 New budget authority (gross)......       1,826       1,934       1,898
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,912       1,999       1,962
23.95 Total new obligations.............      -1,846      -1,935      -1,915
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
24.40 Unobligated balance carried 
        forward, end of year............          65          64          47
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,035       1,143       1,107
55.00   Advance appropriation...........         791         791         791
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,826       1,934       1,898
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,334       1,496       1,604
73.10 Total new obligations.............       1,846       1,935       1,915
73.20 Total outlays (gross).............      -1,679      -1,827      -1,883
73.40 Adjustments in expired accounts 
        (net)...........................          -6
74.40 Obligated balance, end of year....       1,496       1,604       1,635
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         622         651         649
86.93 Outlays from discretionary 
        balances........................       1,057       1,175       1,234
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,679       1,827       1,883
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,826       1,934       1,898
90.00 Outlays...........................       1,679       1,827       1,883
---------------------------------------------------------------------------

    Program levels for activities in this account are as follows:

                        (in millions of dollars)

                                     2001-2002 
                                      academic 
                                        year      2002-2003 
                                                academic year 2003-2004 
                                                            academic year
1. Vocational education:
  a. Basic grants:
    Annual appropriation............         309         389         389
    Advance appropriation...........         791         791         791
                                    ------------------------------------
      Subtotal, basic grants........       1,100       1,180       1,180
  b. National programs..............          18          12          12
  c. Occupational & employment 
    information.....................           9          10           0
  d. Tribally controlled 
    postsecondary vocational 
    institutions....................           6           6           6
  e. Tech-prep education............         106         108         108
  f. Tech-prep demonstration........           5           5           0
      Total, vocational education...       1,243       1,321       1,306
2. Adult education:
  a. State grants...................         540         575         575
  b. National Institute for Literacy           6           7           7
  c. National leadership activities.          14          10          10
                                    ------------------------------------
      Total, adult education........         560         591         591
3. State grants for incarcerated 
youth offenders.....................          17          17           0
4. Literacy programs for prisoners..           5           5           0
                                    ------------------------------------
      Total.........................       1,826       1,934       1,898
                                    ====================================

                        SUMMARY OF PROGRAM LEVEL

                        (in millions of dollars)

                                     2001-2002 
                                      academic 
                                        year      2002-2003 
                                                academic year 2003-2004 
                                                            academic year
New Budget Authority................       1,035       1,143       1,107
Advance appropriation...............         791         791         791
                                    ------------------------------------
    Total program level.............
                                    ====================================
Change in advance appropriation from 
the previous year...................        +791

    Vocational education.--
        Basic grants.--Formula grants provide funds to States and 
    localities to expand and improve their programs of vocational 
    education and promote equal opportunity in vocational education 
    programs for historically underserved populations.
        National programs.--Funds support discretionary activities that 
    contribute to knowledge of how to improve vocational education 
    nationally. Activities include two national centers for research and 
    dissemination in vocational education and a program of discretionary 
    research and development projects.
        Tribally controlled postsecondary vocational and technical 
    institutions.--Grants support the operation and improve

[[Page 358]]

    ment of tribally controlled postsecondary vocational institutions, 
    to ensure continued and expanded educational opportunities for 
    Indian students.
        Tech-prep education.--Formula grants to States support planning 
    and demonstration grants to consortia of local educational agencies 
    and postsecondary institutions to develop and operate model 4-year 
    programs. Programs begin in high school and provide students with 
    the mathematical, scientific, communications, and technological 
    skills needed to earn a 2-year associate degree or a 2-year 
    certificate in a specific occupational field.

    Adult education.--
        State programs.--Formula grants are made to States to help 
    eliminate functional illiteracy among the Nation's adults, to assist 
    adults in obtaining a high school diploma or its equivalent, and to 
    promote family literacy. A portion of the funds are reserved for 
    formula grants to States to provide English literacy and civics 
    education for immigrants and other limited English proficient 
    adults.
        National Institute for Literacy.--Funds support the Institute's 
    national leadership activities to improve and expand the Nation's 
    system for delivery of literacy services.
        National leadership activities.--Funds support discretionary 
    activities to evaluate the effectiveness of Federal, State, and 
    local adult education programs and to test and demonstrate methods 
    of improving program quality. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........                       1
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation           1           2           1
25.1    Advisory and assistance services           3           3           3
25.2    Other services..................           2           2           2
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          10           9           9
25.5    Research and development 
          contracts.....................          16          16          16
41.0    Grants, subsidies, and 
          contributions.................       1,812       1,902       1,881
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,844       1,934       1,912
99.5  Below reporting threshold.........           2           1           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,846       1,935       1,915
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0400-0-1-501      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          18          19          16
---------------------------------------------------------------------------

                                


 
                    OFFICE OF POSTSECONDARY EDUCATION

                              Federal Funds

General and special funds:

                            Higher Education

    For carrying out, to the extent not otherwise provided, section 121 
and titles II, III, IV, V, VI, and VII of the Higher Education Act of 
1965, as amended[, section 1543 of the Higher Education Amendments of 
1992, title VIII of the Higher Education Amendments of 1998] (``HEA''), 
and the Mutual Educational and Cultural Exchange Act of 1961, 
[$2,031,048,000] $1,883,053,000, of which [$5,000,000] $3,000,000 for 
interest subsidies authorized by section 121 of the [Higher Education 
Act of 1965] HEA, shall remain available until expended: Provided, That 
$10,000,000, to remain available through September 30, [2003] 2004, 
shall be available to fund fellowships for academic year [2003-2004] 
2004-2005 under part A, subpart 1 of title VII of said Act, under the 
terms and conditions of part A, subpart 1: Provided further, That 
$1,000,000 is for data collection and evaluation activities for programs 
under the [Higher Education Act of 1965] HEA, including such activities 
needed to comply with the Government Performance and Results Act of 
1993: [Provided further, That $17,500,000 shall be available for 
tribally controlled colleges and universities under section 316 of the 
Higher Education Act of 1965:] Provided further, That notwithstanding 
any other provision of law, funds made available in this Act to carry 
out title VI of the [Higher Education Act of 1965, as amended,] HEA and 
section 102(b)(6) of the Mutual Educational and Cultural Exchange Act of 
1961 may be used to support visits and study in foreign countries by 
individuals who are participating in advanced foreign language training 
and international studies in areas that are vital to United States 
national security and who plan to apply their language skills and 
knowledge of these countries in the fields of government, the 
professions, or international development: Provided further, That up to 
one percent of the funds referred to in the preceding proviso may be 
used for program evaluation, national outreach, and information 
dissemination activities: [Provided further, That $149,722,000 of the 
funds for part B of title VII of the Higher Education Act of 1965 shall 
be available for the projects and in the amounts specified in the 
statement of the managers on the conference report accompanying this 
Act] Provided further, That the funds provided for title II of the HEA 
shall be allocated notwithstanding section 210 of said Act: Provided 
further, That the funds provided for part B of title VII of the HEA may 
be used, at the discretion of the Secretary of Education, to fund 
continuation awards under title VII, part D of said Act. (Department of 
Education Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Aid for institutional development:

00.01   Strengthening institutions......          73          74          76
00.02   Strengthening tribally 
          controlled colleges and 
          universities..................          15          18          18
00.03   Strengthening Alaska Native and 
          Native Hawaiian-serving 
          institutions..................           6           6           7
00.04   Strengthening historically black 
          colleges and universities.....         185         206         213
00.05   Strengthening historically black 
          graduate institutions.........          45          49          51
00.06   Minority science and engineering 
          improvement...................           9           8           8
                                           ---------   ---------  ----------
00.91     Subtotal, aid for 
            institutional development...         333         361         373
      Other aid for institutions:

01.01   Developing Hispanic-serving 
          institutions..................          69          86          89
01.02   International education and 
          foreign language studies......          78          98         103
01.03   Fund for the Improvement of 
          Postsecondary Education.......         151         181          39
01.04   Demonstration projects to ensure 
          quality higher education for 
          students with disabilities....           6           7
01.05   Interest subsidy grants.........          13           9           3
                                           ---------   ---------  ----------
01.91     Subtotal, other aid for 
            institutions................         317         381         234
      Assistance for students:

02.01   Federal TRIO programs...........         730         803         803
02.02   Gaining early awareness and 
          readiness for undergraduate 
          programs (GEAR UP)............         295         285         285
02.03   Byrd honors scholarships........          41          41          41
02.04   Javits fellowships..............          10          10          10
02.05   Graduate assistance in areas of 
          national need.................          31          31          31
02.06   Thurgood Marshall legal 
          educational opportunity 
          program.......................           4           4
02.07   B. J. Stupak Olympic 
          scholarships..................           1           1
02.08   Child care access means parents 
          in school.....................          16          25          15
02.09   Learning anytime anywhere 
          partnerships..................          30
                                           ---------   ---------  ----------
02.91     Subtotal, assistance for 
            students....................       1,158       1,200       1,185
      Other Aid:

03.01   Teacher quality enhancement.....          98          90          90
03.02   GPRA data/HEA program evaluation           3           1           1
03.03   Underground railroad program....           2           2
                                           ---------   ---------  ----------
03.91     Subtotal, Other Aid...........         103          93          91
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,911       2,035       1,883
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          22          14          10

[[Page 359]]

22.00 New budget authority (gross)......       1,912       2,031       1,883
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,934       2,045       1,893
23.95 Total new obligations.............      -1,911      -2,035      -1,883
23.98 Unobligated balance expiring or 
        withdrawn.......................          -9
24.40 Unobligated balance carried 
        forward, end of year............          14          10          10
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,912       2,031       1,883
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,963       2,396       2,565
73.10 Total new obligations.............       1,911       2,035       1,883
73.20 Total outlays (gross).............      -1,463      -1,866      -1,953
73.40 Adjustments in expired accounts 
        (net)...........................         -15
74.40 Obligated balance, end of year....       2,396       2,565       2,495
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          89         106          97
86.93 Outlays from discretionary 
        balances........................       1,373       1,760       1,856
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,463       1,866       1,953
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,912       2,031       1,883
90.00 Outlays...........................       1,462       1,866       1,953
---------------------------------------------------------------------------
                                             B------

    Aid for institutional development.--

    Strengthening institutions.--Funds will 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 tribally controlled colleges and universities.--Funds 
will support grants to American Indian tribally controlled colleges and 
universities with scarce resources to enable them to improve and expand 
their capacity to serve Indian students.

    Strengthening Alaska Native and Native Hawaiian-serving 
institutions.--Funds will support Alaska Native and Native Hawaiian-
serving institutions to enable them to improve and expand their capacity 
to serve Alaska Native and Native Hawaiian students.

    Strengthening historically black colleges and universities.--Funds 
will support grants to help historically black undergraduate 
institutions to improve and expand their capacity to serve students, and 
to strengthen management and fiscal operations.

    Strengthening historically black graduate institutions.--Funds will 
support grants to help historically black graduate institutions to 
improve and expand their capacity to serve students, and to strengthen 
management and fiscal operations.

    Minority science and engineering improvement.--Funds will support 
grants to predominantly minority institutions to help them make long-
range improvements in science and engineering education and to increase 
the participation of minorities in scientific and technological careers.

    Other aid for institutions.--

    Developing Hispanic-serving institutions.--Funds will support 
Hispanic-serving institutions to enable them to improve and expand their 
capacity to serve students.

    International education and foreign language studies programs.--
Funds will promote the development and improvement of international and 
foreign language programs.

    Fund for the improvement of postsecondary education.--Funds will 
support a broad range of postsecondary reform and improvement projects, 
as well as international consortia programs.

    Interest subsidy grants.--Funds will meet mandatory interest subsidy 
costs of construction loan commitments made prior to 1974.

    Assistance for students.--

    Federal TRIO programs.--Funds will support postsecondary education 
outreach and student support services through 5 major programs designed 
to help individuals from disadvantaged backgrounds enter and complete 
college and graduate studies.

    Gaining early awareness and readiness for undergraduate programs.--
Funds will support early college preparation and awareness activities at 
the State and local levels to ensure that low-income elementary and 
secondary school students are prepared for and pursue postsecondary 
education.

    Byrd honors scholarships.--Funds will support merit-based 
scholarships to students who have demonstrated outstanding academic 
achievement and who show promise of continued academic excellence for 
study at an institution of higher education.

    Javits fellowships.--Funds will support fellowships to students of 
superior ability who have financial need and who are pursuing doctoral 
degrees in the arts, humanities, and social sciences.

    Graduate assistance in areas of national need.--Funds will support 
fellowships to graduate students of superior ability who have financial 
need and who are from traditionally under-Prepresented backgrounds for 
study in areas of national need.

    Child care access means parents in school.--Funds will support a 
program designed to bolster the participation of low-income parents in 
postsecondary education through the provision of campus-based child care 
services.

    Other aid.--

    Teacher quality enhancement.--Funds will support programs that seek 
to make lasting changes in the ways our Nation recruits, prepares, 
licenses, and supports teachers.

    GPRA data/HEA program evaluation.--Funds will support data 
collection and evaluation activities for programs under the Higher 
Education Act of 1965, including such activities needed to comply with 
the Government Performance and Results Act of 1993.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

25.1    Advisory and assistance services           4           4           4
25.2    Other services..................           6           6           5
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           2           2           2
41.0    Grants, subsidies, and 
          contributions.................       1,898       2,023       1,872
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,910       2,035       1,883
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,911       2,035       1,883
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0201-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......           1
---------------------------------------------------------------------------

                                

                            Howard University

    For partial support of Howard University (20 U.S.C. 121 et seq.), 
$237,474,000, of which not less than $3,600,000 shall be for a matching 
endowment grant pursuant to the Howard University Endowment Act (Public 
Law 98-480) and shall remain available until expended. (Department of 
Education Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0603-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 General support...................         199         211         207

[[Page 360]]

00.02 Howard University Hospital........          30          30          30
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         229         241         237
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       4
22.00 New budget authority (gross)......         232         237         237
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         232         241         237
23.95 Total new obligations.............        -229        -241        -237
24.40 Unobligated balance carried 
        forward, end of year............           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         232         237         237
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          14                      14
73.10 Total new obligations.............         229         241         237
73.20 Total outlays (gross).............        -243        -227        -237
74.40 Obligated balance, end of year....                      14          14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         229         223         223
86.93 Outlays from discretionary 
        balances........................          14           4          14
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         243         227         237
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         232         237         237
90.00 Outlays...........................         243         227         237
---------------------------------------------------------------------------

    Howard University is a private, nonprofit educational institution 
consisting of 12 schools and colleges. Federal funds are used to provide 
partial support for university programs as well as for the teaching 
hospital facilities. In 2001, direct Federal appropriations for general 
support represented approximately 58 percent of the university's 
revenue.

                                

          College Housing and Academic Facilities Loans Program

    For Federal administrative expenses authorized under section 121 of 
the Higher Education Act of 1965, [$762,000] $787,000 to carry out 
activities related to existing facility loans entered into under the 
Higher Education Act of 1965. (Department of Education Appropriations 
Act, 2002; additional authorizing legislation required.)

  Historically Black College and University Capital Financing Program 
                                 Account

    The [total amount of] aggregate principal amount of outstanding 
bonds insured pursuant to section 344 of title III, part D of the Higher 
Education Act of 1965 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 III, part D of the Higher Education Act of 1965, as amended, 
[$208,000] $211,000. (Department of Education Appropriations Act, 2002; 
additional authorizing legislation required.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Federal administration............                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 99.5)...................           1           1           1
----------------------------------------------------------------------------

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

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation (Federal 
          administration)...............           1           1           1
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           1
73.10 Total new obligations.............           1           1           1
73.20 Total outlays (gross).............          -1          -1          -1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1           1
86.93 Outlays from discretionary 
        balances........................                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           1           1
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Direct loan downward reestimate subsidy budget 
                authority:
137001Downward reestimates subsidy 
        budget authority................          -2
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................          -2
    Direct loan downward reestimate subsidy 
                outlays:
138001Downward reestimates subsidy 
        outlays.........................          -2
                                           ---------   ---------  ----------
138901Total downward reestimate subsidy 
        outlays.........................          -2
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................           1           1           1
358001Outlays from balances.............           1
359001Outlays from new authority........
---------------------------------------------------------------------------

    The College Housing and Academic Facilities Loans Program and the 
Historically Black College and University Capital Financing Program are 
administered separately, but are consolidated for presentation purposes.

    College Housing and Academic Facilities Loans Program.--Funds for 
this activity pay the Federal costs for administering the College 
Housing and Academic Facilities Loans (CHAFL), College Housing Loans 
(CHL), and Higher Education Facilities Loans (HEFL) programs. Prior to 
1994, these programs provided financing for the construction, 
reconstruction, and renovation of housing, academic, and other 
educational facilities. Although no new loans have been awarded since 
fiscal year 1993, costs for administering the outstanding loans will 
remain for at least 30 more years. Agreements exist with the Department 
of Health and Human Services to provide architectural and engineering 
services and with the Federal Reserve Bank to provide loan servicing. 
The 2003 budget request provides funding for personnel compensation and 
other administrative costs. In accordance with the Federal Credit Reform 
Act, loan servicing costs for CHL and HEFL are paid from their 
respective collections.

    Historically Black College and University Capital Financing 
Program.--The Historically Black College and University (HBCU) Capital 
Financing Program provides HBCUs with access to capital financing for 
the repair, renovation, and construction of classrooms, libraries, 
laboratories, dormitories, instructional equipment, and research 
instrumentation. The Higher Education Amendments of 1992 granted the 
Department authority to enter into insurance agreements with a private 
for-profit Designated Bonding Authority to guarantee no more than 
$375,000,000 in outstanding principal and unpaid accrued interest 
combined. The bonding authority issues the loans and maintains an escrow 
account in which 5 percent of each institution's principal is deposited. 
This amount is estimated to be sufficient to cover all potential 
delinquencies and defaults. No subsidy appropriations are required. The 
2003 budget provides funds for continuing Federal administrative 
activities only.

[[Page 361]]

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0241-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......           7           7           7
---------------------------------------------------------------------------

                                

     College Housing and Academic Facilities Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest paid to Treasury.........           1           1           1
08.02 Payment of downward reestimate to 
        receipt account.................           1
08.04 Payment of interest on downward 
        reestimates to receipt account..           1
                                           ---------   ---------  ----------
08.91   Subtotal, Downward reestimate 
          payments......................           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........           3           1           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           4           2           2
22.60 Portion applied to repay debt.....          -1          -1          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3           1           1
23.95 Total new obligations.............          -3          -1          -1
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............           2
69.00 Offsetting collections (cash).....           2           2           2
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4           2           2
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............           3           1           1
73.20 Total financing disbursements 
        (gross).........................          -3          -1          -1
87.00 Total financing disbursements 
        (gross).........................           3           1           1
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Interest repayments.........          -1          -1          -1
88.40       Principal repayments........          -1          -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -2          -2          -2
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           2
90.00 Financing disbursements...........           1          -1          -1
---------------------------------------------------------------------------

    The College Housing and Academic Facilities Loans Financing Account 
records all cash flows to and from the Government resulting from direct 
loans made in fiscal years 1992 and 1993.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4252-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          26          25          25
1251  Repayments: Repayments and 
        prepayments.....................          -1                      -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          25          25          24
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4252-0-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          26             25            25             24
1405    Allowance for subsidy cost (-)..          -2             -2            -2             -2
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          24             23            23             22
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          24             23            23             22
    LIABILITIES:
2103  Federal liabilities: Debt.........          24             23            23             22
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          24             23            23             22
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          24             23            23             22
-----------------------------------------------------------------------------------------------

                                

    College Housing and Academic Facilities Loans Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Interest paid to Treasury.........          16          15          14
00.02 Loan Servicing....................           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          17          15          14
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          73           2
22.00 New budget authority (gross)......          57          53          46
22.60 Portion applied to repay debt.....        -111         -40         -32
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          19          15          14
23.95 Total new obligations.............         -17         -15         -14
24.40 Unobligated balance carried 
        forward, end of year............           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           7           5           4
69.00 Offsetting collections (cash).....          52          49          43
69.27 Capital transfer to general fund..          -2          -1          -1
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................          50          48          42
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          57          53          46
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          21          21          28
73.10 Total new obligations.............          17          15          14
73.20 Total outlays (gross).............         -17          -8         -15
74.40 Obligated balance, end of year....          21          28          27
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from mandatory balances...          17           8          15
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Repayments of principal.....         -34         -34         -29
88.40       Interest received on loans..         -18         -15         -14
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -52         -49         -43
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           5           4           3
90.00 Outlays...........................         -35         -41         -28
---------------------------------------------------------------------------

    The College Housing and Academic Facilities Loans Liquidating 
Account records all cash flows to and from the Government resulting from 
direct loans made prior to 1992. This account includes loans made under 
the College Housing and Academic Facilities Loans, College Housing 
Loans, and Higher Education Facilities Loans programs, which continue to 
be administered separately. 

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
          CHAFL LIQUIDATING
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         118         116         111
1231  Disbursements: Direct loan 
        disbursements...................           1

[[Page 362]]

1251  Repayments: Repayments and 
        prepayments.....................          -3          -5          -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         116         111         108
----------------------------------------------------------------------------

          HIGHER EDUCATION FACILITIES 
              LOANS
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          27          24          22
1251  Repayments: Repayments and 
        prepayments.....................          -3          -2          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          24          22          21
----------------------------------------------------------------------------

          COLLEGE HOUSING LOANS
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         313         284         257
1251  Repayments: Repayments and 
        prepayments.....................         -29         -27         -25
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         284         257         232
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0242-0-1-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    CHAFL LIQUIDATING:
0111  Revenue...........................                          9            12              9
0112  Expense...........................                        -35           -16            -13
                                        ------------ --------------  ------------  -------------
0115    Net income or loss (-)..........                        -26            -4             -4
    HIGHER EDUCATION FACILITIES LOANS:
0121  Revenue...........................                          3             2              2
0122  Expense...........................                         -2            -1             -1
                                        ------------ --------------  ------------  -------------
0125    Net income or loss (-)..........                          1             1              1
    COLLEGE HOUSING LOANS:
0131  Revenue...........................                         40            35             31
0132  Expense...........................                        -91           -35            -31
                                        ------------ --------------  ------------  -------------
0135    Net income or loss (-)..........                        -51
                                        ------------ --------------  ------------  -------------
0191  Total revenues....................                         52            49             42
                                        ------------ --------------  ------------  -------------
0192  Total expenses....................                       -128           -52            -45
                                        ------------ --------------  ------------  -------------
0195  Total income or loss (-)..........                        -76            -3             -3
                                        ------------ --------------  ------------  -------------
0199  Total comprehensive income........                        -76            -3             -3
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0242-0-1-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............                        425           390            362
1602    Interest receivable.............                          6             6              5
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................                        431           396            367
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                        431           396            367
    LIABILITIES:
      Federal liabilities:

2103    Debt............................                        236           196            164
2104    Resources payable to Treasury...                        195           200            203
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                        431           396            367
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                        431           396            367
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0242-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           1
43.0  Interest and dividends............          16          15          14
                                           ---------   ---------  ----------
99.9    Total new obligations...........          17          15          14
---------------------------------------------------------------------------

                                

Historically Black College and University Capital Financing Direct Loan 
                            Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4255-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Loan Awards................          16          42          40
00.02 Interest paid to Treasury.........           1           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          17          44          42
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...          38          44          43
22.60 Portion applied to repay debt.....                                  -1
22.70 Balance of authority to borrow 
        withdrawn.......................         -21
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          17          44          42
23.95 Total new obligations.............         -17         -44         -42
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          37          42          40
69.00 Offsetting collections (cash).....           1           2           3
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          38          44          43
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          25          30          34
73.10 Total new obligations.............          17          44          42
73.20 Total financing disbursements 
        (gross).........................         -12         -40         -37
74.40 Obligated balance, end of year....          30          34          39
87.00 Total financing disbursements 
        (gross).........................          12          40          37
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Interest repayments.........          -1          -1          -2
88.40       Principal repayments........                      -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -1          -2          -3
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          37          42          40
90.00 Financing disbursements...........          11          38          34
---------------------------------------------------------------------------

    The Federal Financing Bank (FFB) purchases bonds issued by the HBCU 
Designated Bonding Authority. Under the policies governing Federal 
credit programs, bonds purchased by the FFB and supported by the 
Department of Education with a letter of credit create the equivalent of 
a Federal direct loan. HBCU bonds are also available for purchase by the 
private sector, and these will be treated as loan guarantees. However, 
the Department anticipates that all HBCU loans will be financed by the 
FFB.

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4255-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         311         295         254
1142  Unobligated direct loan limitation 
        (-).............................        -295        -253        -214
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          16          42          40
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          21          31          70
1231  Disbursements: Direct loan 
        disbursements...................          11          39          35
1251  Repayments: Repayments and 
        prepayments.....................          -1                      -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          31          70         104
---------------------------------------------------------------------------

[[Page 363]]



                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4255-0-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          25             30            33             38
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          21             31            70            104
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          21             31            70            104
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          46             61           103            143
    LIABILITIES:
2103  Federal liabilities: Debt.........          46             61           103            143
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          46             61           103            143
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          46             61           103            143
-----------------------------------------------------------------------------------------------

                                


 
                 OFFICE OF STUDENT FINANCIAL ASSISTANCE

                              Federal Funds

General and special funds:

                      Student Financial Assistance

    For carrying out subparts 1[,], and 3 [and 4] of part A, section 
428K, part C and part E of title IV of the Higher Education Act of 1965, 
as amended, [$12,285,500,000] $12,767,500,000, which shall remain 
available through September 30, [2003.]
    [The maximum Pell Grant for which a student shall be eligible during 
award year 2002-2003 shall be $4,000.] 2004: Provided, That 
notwithstanding section 401(b)(2)(A) and 401(g) of the Act, the 
Secretary shall, prior to the publication of the Pell Grant payment 
schedule, establish the maximum Pell Grant award using the latest data 
satisfactory to the Secretary to determine the maximum award supportable 
by amounts available under this heading in this and prior appropriations 
Acts. (Department of Education Appropriations Act. 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Federal Pell grants:

01.01   Federal Pell grants.............       8,978       9,648      10,134
      Campus-based aid:

02.01   Federal supplemental educational 
          opportunity grants (SEOG).....         692         727         725
02.02   Federal work-study..............       1,017       1,017       1,011
02.03   Federal Perkins loans: Federal 
          capital contributions.........         101         100         100
02.05   Federal Perkins loans: Loan 
          cancellations.................          60          68          68
                                           ---------   ---------  ----------
02.91     Subtotal, Campus-based 
            activities..................       1,870       1,912       1,904
03.01 Leveraging educational assistance 
        partnership.....................          55          67
04.01 Loan forgiveness for child care 
        providers.......................                       2           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................      10,903      11,629      12,039
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,492       1,288       1,945
22.00 New budget authority (gross)......      10,674      12,286      12,768
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          25
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      12,191      13,574      14,713
23.95 Total new obligations.............     -10,903     -11,629     -12,039
24.40 Unobligated balance carried 
        forward, end of year............       1,288       1,945       2,674
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................      10,674      12,286      12,768
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       6,476       7,153       6,789
73.10 Total new obligations.............      10,903      11,629      12,039
73.20 Total outlays (gross).............     -10,161     -11,993     -11,420
73.40 Adjustments in expired accounts 
        (net)...........................         -40
73.45 Recoveries of prior year 
        obligations.....................         -25
74.40 Obligated balance, end of year....       7,153       6,789       7,408
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       2,650       3,805       2,958
86.93 Outlays from discretionary 
        balances........................       7,511       8,188       8,463
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      10,161      11,993      11,420
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      10,674      12,286      12,768
90.00 Outlays...........................      10,161      11,993      11,420
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2001 actual  2002 est.   2003 est.
Enacted/requested:
  Budget Authority..................      10,674      12,286      12,768
  Outlays...........................      10,161      11,993      11,421
Supplemental proposal:
  Budget Authority..................                   1,276
  Outlays...........................                               1,276
                                    ------------------------------------
Total:
  Budget Authority..................      10,674      13,562      12,768
  Outlays...........................      10,161      11,993      12,697
                                    ====================================

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0200-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:\1\
1210  Outstanding, start of year........         615         606         596
1251  Repayments: Repayments and 
        prepayments.....................         -28         -27         -27
      Write-offs for default:

1263    Direct loans....................          -9          -9          -9
1264    Other adjustments, net..........          27          27          18
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         606         596         578
---------------------------------------------------------------------------
    \1\ Includes in all years institutional matching share of defaulted 
notes assigned from institutions to the Education Department.

    The Administration's 2003 budget for the SFA account is $12.768 
billion, an increase of $482 million, or 4 percent, over the 2002 
appropriation, which together with matching funds (less allowable 
administrative costs) would provide nearly 7.5 million awards totalling 
more than $14.2 billion in available aid.

    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 appropriations act.

    The Administration proposes $10.863 billion, an increase of $549 
million over the 2002 appropriation level. The budget also proposes a 
2002 supplemental appropriation of $1.276 billion to fully fund the 
$4,000 maximum award in academic year 2002-2003. (For more information, 
please see the Supplemental Proposals chapter of this document.)

    Pell Grant costs are highly dependent on volatile and economic 
trends, making it difficult to project the required funding level for a 
given maximum award at the time of the appropriation, which may be nine 
or more months prior to the affected academic year. Accordingly, the 
Administration is proposing that the Secretary of Education use the most 
recent program cost projections to set the maximum award for each 
upcoming academic year immediately prior to the publication of the Pell 
Grant payment schedule, which must occur by February 1 each year. Under 
current estimates, the Administration's request for 2003 would maintain 
the Pell Grant maximum award at $4,000 for academic year 2003-2004, the 
highest level ever and a full $700, or 21 percent, above the level only 
three years earlier. Nearly 4.5 million students would receive awards 
under this request, an increase of 55,000 over 2002.

    Campus-based programs.--The Federal Supplemental Educational 
Opportunity Grants, Federal Work-Study, and Federal Perkins Loan 
programs are called the ``campus-based''

[[Page 364]]

programs because participating institutions are responsible for 
administering the programs on their own campuses. These programs provide 
aid administrators with considerable flexibility in the packaging of 
financial aid awards to best meet the needs of students.

    Federal Supplemental Educational Opportunity Grants (SEOG).--Federal 
funds are awarded by formula to qualifying institutions, which use these 
funds to award grants to undergraduate students. While institutions have 
discretion in awarding these funds, they are required to give priority 
to Pell Grant recipients and other students with exceptional need. The 
Federal share of such grants may not exceed 75 percent of the total 
grant. The Administration proposes $725 million for the SEOG program in 
2003, the same as the 2002 level. This level of funding would provide 
approximately $918 million in available aid to an estimated 1.2 million 
needy students.

    Federal Work-Study.--Federal funds are awarded by formula to 
qualifying institutions, which develop and provide part-time jobs for 
eligible undergraduate and graduate students with demonstrated need. 
Hourly earnings under the program must be at least equal to the Federal 
minimum wage. Federal funding in most cases pays 75 percent of a 
student's hourly wages, with the remaining 25 percent paid by the 
employer. The Administration proposes $1.011 billion, the same as the 
2002 appropriation, for the Work-Study program, which will provide $1.2 
billion in aid to nearly 1 million students.

    Perkins Loan Program.--Institutions award low-interest loans from 
institutional revolving funds, which are comprised of Federal Capital 
Contributions, institutional matching funds, and student repayments on 
outstanding loans. The Administration proposes $100 million in new 
budget authority for the Perkins loan program, the same as the 2002 
level. This level of funding would provide $1.2 billion in available aid 
to some 715,000 needy undergraduate and graduate students in the 2003-
2004 award year.

    Perkins Loan Program--Cancellations.--Under the Perkins Loan 
cancellation program, institutional revolving funds are reimbursed for 
indebtedness canceled as a result of a borrower engaging in certain 
public service activities, as specified in the Higher Education Act. 
Amendments to the Higher Education Act in 1992 and 1998 greatly expanded 
the number of borrowers with loans eligible for cancellation. The 
Administration's budget proposal for Perkins Loan cancellations is $67.5 
million, the same as the 2002 level.

    Loan Forgiveness for Child Care Providers.--Under this demonstration 
program, student loan borrowers who have earned degrees in early 
childhood education and worked for two full years as child care 
providers in low-income communities may have a portion of their loan 
obligation forgiven. Additional forgiveness is awarded for each 
additional consecutive year of service, up to a total of 100 percent of 
the borrower's outstanding balance after five full years. Awards are 
made on a first-come, first-served basis. The Administration proposes $1 
million for Loan Forgiveness for Child Care Providers in 2003, the same 
as the 2002 level. Fewer than 100 recipients are expected in either 2002 
or 2003.

    Funding Tables.--The following tables display student aid funds 
available, the number of aid awards, average awards, and the 
unduplicated count of recipients from any Federal student aid program. 
The tables include the aid from programs in the Student Financial 
Assistance account, as well as aid from the Federal Family Education 
Loan (FFEL) program, and the William D. Ford Federal Direct Loan 
program. Loan amounts reflect the capital actually loaned, not the 
Federal cost of those loans. The data in these tables include the 
effects of matching funds wherever applicable.

      AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

                             [in thousands]

                                     2001 actual  2002 est.   2003 est.
Pell grants.........................   9,850,580  10,707,780  10,840,290
Student loans:
  Guaranteed student loans:
    Stafford loans..................  11,882,308  12,703,968  13,585,032
    Unsubsidized Stafford loans.....  10,144,360  10,893,200  11,697,856
    PLUS............................   2,667,148   2,934,287   3,230,084
  Direct student loans:
    Stafford loans..................   5,388,042   5,748,126   6,133,202
    Unsubsidized Stafford loans.....   3,985,785   4,277,414   4,590,536
    PLUS............................   1,260,807   1,378,308   1,507,071
  Consolidation:
    FFEL............................   9,255,251   8,334,685   6,877,114
    Direct Loans....................   7,760,000   8,643,078   5,307,205
                                    ------------------------------------
        Student loans, subtotal.....  52,343,700  54,913,066  52,928,100
Work-study..........................   1,214,643   1,214,643   1,214,643
Supplemental educational opportunity 
grants..............................     874,684     917,722     917,722
Perkins loans.......................   1,194,989   1,202,200   1,202,200
Leveraging educational assistance 
partnership.........................     135,000     171,000           0
Loan forgiveness for child care 
providers...........................       1,000       1,000       1,000
                                    ------------------------------------
        Total aid available.........  65,614,595  69,127,410  67,103,955
                                    ====================================
    Note: Detail may not add to totals due to rounding.

                          NUMBER OF AID AWARDS

                             [In thousands]

                                     2001 actual  2002 est.   2003 est.
Pell grants.........................       4,284       4,444       4,499
Guaranteed student loans:
  Stafford loans....................       2,890       3,084       3,269
  Unsubsidized Stafford loans.......       2,041       2,199       2,330
  PLUS..............................         310         334         353
  Consolidation.....................         309         308         222
Direct student loans:
  Stafford loans....................       1,273       1,324       1,399
  Unsubsidized Stafford loans.......         866         878         929
  PLUS..............................         152         153         161
  Consolidation.....................         367         357         256
Work-study..........................         970         970         970
Supplemental educational opportunity 
grants..............................       1,169       1,227       1,227
Perkins loans.......................         711         715         715
Leveraging Educational Assistance 
Partnership.........................         135         171           0
Loan forgiveness for child care 
providers...........................                       *           *
                                    ------------------------------------
      Total awards..................      15,477      16,164      16,329
                                    ====================================
    Note: Detail may not add to totals due to rounding.
    *Fewer than 500 recipients

                           AVERAGE AID AWARDS

                           [In whole dollars]

                                     2001 actual  2002 est.   2003 est.
Pell grants.........................       2,299       2,409       2,409
Guaranteed student loans:
  Stafford loans....................       3,390       3,397       3,427
  Unsubsidized Stafford loans.......       4,077       4,065       4,120
  PLUS..............................       7,359       7,504       7,817
  SLS...............................           0           0           0
  Consolidation.....................      29,378      26,504      30,420
Direct student loans:
  Stafford loans....................       3,491       3,582       3,615
  Unsubsidized Stafford loans.......       3,824       4,043       4,103
  PLUS..............................       7,097       7,708       8,010
  Consolidation.....................      20,976      24,033      20,634
Work-study..........................       1,252       1,252       1,252
Supplemental educational opportunity 
grants..............................         748         748         748
Perkins loans.......................       1,681       1,681       1,681
Leveraging Educational Assistance 
Partnership.........................       1,000       1,000           0
Loan forgiveness for child care 
providers...........................      13,333      13,333      13,333
                                    ====================================
Unduplicated student count..........       7,611       8,064       8,403

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

                 ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

                        [In millions of dollars]

                                     2001 actual  2002 est.   2003 est.
Pell grants.........................      21,420      22,220      22,495

[[Page 365]]

Work-study..........................      75,897      75,897      75,897
Supplemental educational opportunity 
grants..............................      34,987      36,709      36,709
Perkins loans.......................      47,800      48,088      48,088

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

                         DEFAULTED PERKINS LOANS

                        (In millions of dollars)

                                     2001 actual  2002 est.   2003 est.
Outstanding defaulted loans, 
    beginning of year:
  Assigned defaulted loans \1\......         615         606         596
  Unassigned defaulted loans \2\....         952         956         960
New defaulted loans.................         155         164         167
Collections on assigned loans.......         -28         -27         -27
Collections on unassigned loans.....        -114        -125        -136
Write-offs for assigned loans.......          -9          -9          -9
Write-offs for unassigned loans.....          -9          -9          -9
                                    ------------------------------------
Outstanding defaulted loans, end of 
year................................       1,562       1,556       1,542
                                    ====================================
    \1\ Permanently assigned to the Federal Government for collection.
    \2\ Unassigned loans at institutions.

                                

                       Student Aid Administration

    For Federal administrative expenses to carry out part D of title I; 
subparts 1, 3, and 4 of part A; and parts B, C, D, and E of title IV of 
the Higher Education Act of 1965, as amended, $936,386,000, which shall 
remain available through September 30, 2004, of which not more than 
$195,000,000 shall be for account maintenance fees for fiscal year 2003 
that are payable to guaranty agencies under part B and are calculated in 
accordance with section 458 of the Act.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Student aid administration........           3           2         936
                                           ---------   ---------  ----------
10.00   Total new obligations...........           3           2         936
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           3           2         936
23.95 Total new obligations.............          -3          -2        -936
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           3           2         936
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............           3           2         936
73.20 Total outlays (gross).............          -3          -2        -603
74.40 Obligated balance, end of year....                                 333
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3           2         603
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           3           2         936
90.00 Outlays...........................           3           2         603
---------------------------------------------------------------------------

  Budget Authority and Outlays Excluding Full Funding for Federal Retiree 
                       Costs (in millions of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 934
90.00 Outlays...........................                                 601
---------------------------------------------------------------------------

    The Department of Education manages Federal student aid programs 
that will provide over $67 billion in Federal student aid grants and 
loans to over 8 million students and parents in 2003. Primary 
responsibility for administering these programs lies with the Office of 
Postsecondary Education and the performance-based Office of Student 
Financial Assistance (SFA). SFA was created by Congress in 1998 with a 
mandate to improve service to students and other student aid program 
participants, reduce the cost of student aid administration, and improve 
accountability and program integrity.

    The Department's student aid administrative activities are funded 
from four main sources: (1) funds appropriated on a permanent basis 
under section 458 of the Higher Education Act; (2) a portion of the 
Department's general Program Administration funds; (3) a discretionary 
appropriation partially supporting administrative activities associated 
with the Federal Family Education Loan (FFEL) program; and (4) permanent 
funds from the Direct Loan program subsidy account supporting the 
origination of Direct Consolidation Loans. Student aid administrative 
funds totaled $887 million in 2002, $180 million of which supported the 
payment of account maintenance fees to FFEL guaranty agencies.

    The budget for 2003 includes $936 million for student aid 
administration. In order to improve accountability and simplify program 
oversight and operations, the Administration is proposing to consolidate 
funding for student aid administrative activities into a single 
discretionary account. Funding levels for this account will be based on 
a workload-based methodology consistent with the goals of the 
performance-based organization.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............                                  81
11.5    Other personnel compensation....                                   5
                                           ---------   ---------  ----------
11.9      Total personnel compensation..                                  86
12.1  Civilian personnel benefits.......           3           2          23
21.0  Travel and transportation of 
        persons.........................                                   6
23.1  Rental payments to GSA............                                  12
23.3  Communications, utilities, and 
        miscellaneous charges...........                                  53
24.0  Printing and reproduction.........                                   9
25.1  Advisory and assistance services..                                   4
25.2  Other services....................                                  45
25.3  Other purchases of goods and 
        services from Government 
        accounts........................                                   8
25.7  Operation and maintenance of 
        equipment.......................                                 491
26.0  Supplies and materials............                                   1
31.0  Equipment.........................                                   3
41.0  Grants, subsidies, and 
        contributions...................                                 195
                                           ---------   ---------  ----------
99.9    Total new obligations...........           3           2         936
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0202-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......                               1,118
---------------------------------------------------------------------------

                                

                    Federal Student Loan Reserve Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4257-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.02 Obligations, non-federal..........       3,595       4,060       4,613
                                           ---------   ---------  ----------
10.00   Total new obligations...........       3,595       4,060       4,613
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       2,232       2,463       1,409
22.00 New budget authority (gross)......       3,826       4,091       4,590
22.40 Capital transfer to general fund..                  -1,085
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       6,058       5,469       5,999
23.95 Total new obligations.............      -3,595      -4,060      -4,613
24.40 Unobligated balance carried 
        forward, end of year............       2,463       1,409       1,386
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...       3,826       4,091       4,590
----------------------------------------------------------------------------

[[Page 366]]



    Change in obligated balances:
73.10 Total new obligations.............       3,595       4,060       4,613
73.20 Total outlays (gross).............      -3,595      -4,060      -4,613
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       3,595       4,060       4,590
86.98 Outlays from mandatory balances...                                  23
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,595       4,060       4,613
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............      -3,417      -3,687      -4,207
88.40     Non-Federal sources...........        -409        -404        -383
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -3,826      -4,091      -4,590
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -231         -31          23
---------------------------------------------------------------------------

    The Higher Education Amendments of 1998 clarified that reserve funds 
held by public and non-profit guaranty agencies participating in the 
Federal Family Education Loan (FFEL) program are Federal property. These 
reserves are used to pay default claims from FFEL lenders and fees to 
support agency efforts to successfully avert defaults. The Federal 
Government reimburses these reserves for default claim payments. In 
addition, optional borrower guarantee fees are deposited into the 
reserves (agencies may charge borrowers up to 1 percent of loan 
principal as a guarantee fee). The following schedules reflect the 
balances in these guaranty agency funds.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4257-0-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................       2,092          3,826         4,091          4,590
0102  Expense...........................      -1,953         -3,595        -4,060         -4,613
                                        ------------ --------------  ------------  -------------
0105  Net income or loss (-)............         139            231            31            -23
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4257-0-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       2,232          2,462         1,408          1,386
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,232          2,462         1,408          1,386
    NET POSITION:
3300  Cumulative results of operations..       2,232          2,462         1,408          1,386
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       2,232          2,462         1,408          1,386
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,232          2,462         1,408          1,386
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4257-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
41.0  Grants, subsidies, and 
        contributions...................         246         264         258
42.0  Insurance claims and indemnities..       3,349       3,796       4,355
                                           ---------   ---------  ----------
99.9    Total new obligations...........       3,595       4,060       4,613
---------------------------------------------------------------------------

                                

    For Budget Enforcement Act purposes, the Administration will use the 
Congressional Budget Office's estimates of the costs of legislative 
proposals rather than calculating costs against baselines contained in 
the Appendix. The Administration is developing, and will implement, a 
new method of calculating student loan credit cost estimates for the 
2003 Mid-Session Review.

Credit accounts:

          Federal Direct Student Loan Program, Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.05 Upward Subsidy Reestimate.........       1,085
00.06 Interest on Subsidy Reestimate....          74
00.09 Student Loan Administrative 
        Expenses........................         787         783           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,946         783           2
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          10          15
22.00 New budget authority (gross)......       1,931         783
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          20
22.40 Capital transfer to general fund..                     -15
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,961         783
23.95 Total new obligations.............      -1,946        -783          -2
24.40 Unobligated balance carried 
        forward, end of year............          15                      -2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                -797
      Mandatory:

60.00   Appropriation...................       1,931         783         797
      Offsetting collections (cash):

69.00   Offsetting collections (cash)...       1,039         731         617
69.00   Offsetting collections (cash)--
          Downward Reestimate...........         531
69.00   Offsetting collections (cash)--
          Interest on downward 
          reestimate....................         147
69.27 Capital transfer to general fund..      -1,717        -731        -617
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,931         783
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         347         299         373
73.10 Total new obligations.............       1,946         783           2
73.20 Total outlays (gross).............      -1,974        -708        -319
73.45 Recoveries of prior year 
        obligations.....................         -20
74.40 Obligated balance, end of year....         299         373          56
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                -512
86.97 Outlays from new mandatory 
        authority.......................       1,775         498         512
86.98 Outlays from mandatory balances...         199         210         319
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,974         708         319
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........      -1,717        -731        -617
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         214          52        -617
90.00 Outlays...........................         257         -23        -298
---------------------------------------------------------------------------

  Budget Authority and Outlays Excluding Full Funding for Federal Retiree 
                       Costs (in millions of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         212          49        -619
90.00 Outlays...........................         255         -26        -300
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2001 actual  2002 est.   2003 est.
Enacted/requested:
  Budget Authority..................         214          52        -617
  Outlays...........................         257         -23        -298

[[Page 367]]

Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                   3
  Outlays...........................                                  15
                                    ------------------------------------
Total:
  Budget Authority..................         214          52        -614
  Outlays...........................         257         -23        -283
                                    ====================================

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

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Stafford..........................       5,522       6,234       6,651
115002Unsubsidized Stafford.............       4,314       4,793       5,145
115003PLUS..............................       1,396       1,535       1,679
115004Consolidated......................       8,682       8,704       5,368
                                           ---------   ---------  ----------
115901Total direct loan levels..........      19,914      21,266      18,843
    Direct loan subsidy (in percent):
132001Stafford..........................        7.16        3.63        4.97
132002Unsubsidized Stafford.............      -12.61      -12.40      -12.25
132003PLUS..............................       -9.49       -8.95       -9.80
132004Consolidated......................       -7.03       -4.02       -3.75
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       -4.47       -4.02       -3.52
    Direct loan subsidy budget authority:
133001Stafford..........................         396         226         331
133002Unsubsidized Stafford.............        -544        -594        -630
133003PLUS..............................        -133        -137        -165
133004Consolidated......................        -610        -350        -201
                                           ---------   ---------  ----------
133901Total subsidy budget authority....        -891        -855        -665
    Direct loan subsidy outlays:
134001Stafford..........................         295         257         275
134002Unsubsidized Stafford.............        -584        -519        -553
134003PLUS..............................        -140        -122        -140
134004Consolidated......................        -610        -347        -199
                                           ---------   ---------  ----------
134901Total subsidy outlays.............      -1,039        -731        -617
    Direct loan upward reestimate subsidy budget 
                authority:
135005Upward reestimate subsidy budget 
        authority.......................       1,159
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................       1,159
    Direct loan upward reestimate subsidy outlays:
136005Upward reestimates subsidy outlays       1,159
                                           ---------   ---------  ----------
136901Total upward reestimate outlays...       1,159
    Direct loan downward reestimate subsidy budget 
                authority:
137005Downward reestimates offsetting 
        collection......................        -678
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................        -678
    Direct loan downward reestimate subsidy 
                outlays:
138005Downward reestimates offsetting 
        collection......................        -678
                                           ---------   ---------  ----------
138901Total downward reestimate subsidy 
        outlays.........................        -678
----------------------------------------------------------------------------

    Student loan administrative expense data:
351001Budget authority..................         772         783
359001Outlays...........................         815         708         319
---------------------------------------------------------------------------

    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 Federal Direct Loan 
(Direct Loan) program. For 2003, the President is committed to improving 
the efficiency of both programs and 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 2003 
budget, the President is proposing a change to the loan forgiveness 
provisions of the Direct Loan and FFEL programs. This proposal is 
discussed as part of this program description.

    From its inception in 1965 through 2000, the FFEL program has 
provided over $347 billion in loans to postsecondary students and their 
parents. Since July 1, 1994, the Direct Loan program has provided $92 
billion in new and consolidation loans to students and parents. Taken 
together, the FFEL and Direct Loan programs will make almost $38 billion 
in new loans available in 2002. 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.

    Loan capital in the FFEL program is provided by private lenders. 
State and private nonprofit guaranty agencies act as agents of the 
Federal Government, providing a variety of services including collection 
of some defaulted loans, default avoidance activities, and counseling to 
schools, students, and lenders. The Government provides substantial 
payments 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 Direct Loan program was created by the Student Loan Reform Act 
of 1993. Under this program, the Federal Government provides loan funds 
to postsecondary institutions directly or through an alternative 
originator. The Direct Loan program began operation in academic year 
1994-1995 with 7 percent of overall loan volume and is expected to 
account for 30 percent in academic year 2001-2002. All eligible 
institutions are free to participate in either the Direct Loan or FFEL 
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.

    The borrower interest rate for new Stafford Loans equals the 91-day 
Treasury bill rate plus 1.7 percent during in-school, grace, and 
deferment periods, and the 91-day Treasury bill plus 2.3 percent at all 
other times, with a cap of 8.25 percent, adjusted annually. 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 borrower interest rate as 
Stafford loans, but have no interest subsidy. For new PLUS loans, the 
borrower interest rate equals the 91-day Treasury bill rate plus 3.1 
percent, with a cap of 9 percent and no interest subsidy.

    In the FFEL program, lenders may receive an 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 new Stafford and Unsubsidized Stafford 
loans, for example, the Federal Government must pay lenders a special 
allowance if the average 3-month commercial paper rate for a given 
quarter plus 2.34 percent--or 1.74 percent during in-school, grace, or 
deferment periods--is higher than the current interest rate charged 
borrowers.

    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. 
The interest rate for new FFEL and Direct Consolidation loans equals the 
weighted average of the interest rate on the loans consolidated, rounded 
up to the nearest one-eighth of one percent. Lenders may choose to offer 
a lower rate. Interest rates for all new FFEL and Direct Consolidation 
Loans are capped at 8.25 percent.

    FFEL borrowers pay an origination fee to the Government equal to 3 
percent of principal, and are also liable for a

[[Page 368]]

guaranty agency insurance premium of up to 1 percent of principal. 
Guaranty agencies have the option of waiving this premium and FFEL 
lenders have the option of paying some or all of a borrower's 
origination fee for Stafford Loan borrowers. Direct Loan borrowers are 
charged an origination fee equal to 3 percent of principal, which 
partially offsets Federal program operation costs. Borrowers in both 
programs may be offered financial incentives to encourage prompt 
repayment.

    Loan limits are also identical across the two programs. In addition, 
loans made under both programs are discharged when borrowers die, are 
totally and permanently disabled, or, under some circumstances, declare 
bankruptcy.

    Under both programs, new borrowers after October 1, 1998, who are 
employed as teachers in schools serving low-income populations for five 
consecutive, complete school years, qualify for up to $5,000 in loan 
forgiveness. The Administration is proposing to increase this benefit to 
a maximum of $17,500 for mathematics, science, and special education 
teachers considered highly qualified under criteria established in the 
No Child Left Behind Act of 2001.

    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 25 years. 
Borrowers may switch between repayment plans at any time. (Income-
contingent repayment is not available to Direct PLUS borrowers).

    FFEL borrowers may choose from among four repayment plans. Repayment 
periods under standard, graduated, and income-sensitive repayment may 
not exceed 10 years. An extended repayment plan of up to 25 years is 
available for new borrowers with outstanding loans totalling more than 
$30,000. FFEL borrowers may change repayment plans annually.

    Student loan program administration activities are supported from a 
variety of sources, including a permanent appropriation authorized under 
Section 458 of the Higher Education Act, a small discretionary 
appropriation partially supporting FFEL program administration, a 
portion of funds appropriated under the Department's discretionary 
Program Administration account, and subsidy funds associated with the 
origination of Direct Consolidation Loans. In order to improve 
accountability and simplify the funding process for these administrative 
activities, the President is proposing to create a unified, 
discretionary Student Aid Administration account.

    The following tables display performance indicators and program 
data; including 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 dollars)

----------------------------------------------------------------------------
                                        2001 actual    2002 est.   2003 est.
----------------------------------------------------------------------------
Program Cost:
FFEL:
  Liquidating \1\.......................(1,063,810)    (744,810)   (625,162)
  Program:
    Regular.............................  2,930,652    3,302,001   3,397,928
    Consolidation.......................    137,638      479,229     702,793
    Reestimate of Prior Year Costs......(4,727,793)            0           0
    Non-Contractual Modifications \2\...          0            0      23,540
                                        -----------  -----------  ----------
      Subtotal, Program.................(1,659,503)    3,781,230   4,124,260
      Total FFEL:.......................(2,723,314)    3,036,420   3,499,098
Direct Loans:
  Program:
    Regular.............................  (428,683)    (383,848)   (414,192)
    Consolidation.......................  (610,326)    (347,452)   (199,020)
    Reestimate of Prior Year Costs......    481,223            0           0
    Non-Contractual Modification \2\....          0            0      12,127
      Total, Direct Loans...............  (557,786)    (731,300)   (601,085)
Administration:\3\
  FFEL :\4\.............................     48,000       48,836           0
  Student Aid \5\.......................    784,755      780,000           0
                                        -----------  -----------  ----------
    Subtotal, Administration............    832,955      828,836           0
    Total, FFEL and Direct Loans........(2,448,344)    3,133,956   2,898,013
Program Cost Outlays:
FFEL:
  Liquidating \1\.......................  (852,539)    (680,208)   (625,162)
  Program:
    Regular.............................  2,982,980    2,787,487   2,953,599
    Consolidation.......................    136,876      477,577     700,778
    Reestimate of Prior Year Costs......(4,727,793)            0           0
    Non-Contractual Modification \2\....          0            0      23,540
      Subtotal, Program.................(1,607,937)    3,265,064   3,677,917
      Total, FFEL.......................(2,460,476)    2,584,856   3,052,754
Direct Loans:
  Program:
    Regular.............................  (428,683)    (383,848)   (414,192)
    Consolidation.......................  (610,326)    (347,452)   (199,020)
    Reestimate of Prior Year Costs......    481,223            0           0
    Non-Contractual Modifications \2\...          0            0      12,127
      Total, Direct Loans...............  (557,786)    (731,300)   (601,085)
Administration:\3\
  FFEL \4\..............................     55,652       66,761      11,328
  Student Aid \5\.......................    812,948      705,229     318,743
                                        -----------  -----------  ----------
    Subtotal, Administration............    868,600      771,990     330,071
    Total, FFEL and Direct Loans........(2,149,662)    2,625,546   2,781,740
    \1\ Liquidating account reflects loans made prior to 1992.
    \2\ Reflects the costs or savings associated with policy changes that 
would affect the terms of existing loans.
    \3\ For 2003, no funds are requested for loan administration, as these 
costs would be part of the proposed discretionary Student Aid Administration 
account. Outlays in 2003 reflect outlays from prior year balances.
    \4\ Reflects annual discretionary appropriation.
    \5\ Supports account maintenance fee payments to FFEL guaranty agencies, 
Direct Loan origination and servicing, and 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\

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................      11,882      12,704      13,585
  Unsubsidized Stafford.................      10,144      10,893      11,698
  PLUS..................................       2,667       2,934       3,230
                                           ---------   ---------  ----------
    Subtotal............................      24,694      26,531      28,513
  Consolidation.........................       9,255       8,335       6,877
                                           ---------   ---------  ----------
    Total, FFEL.........................      33,949      34,866      35,390
Direct Loans:
  Stafford..............................       5,388       5,748       6,133
  Unsubsidized Stafford.................       3,986       4,277       4,591
  PLUS..................................       1,261       1,378       1,507
                                           ---------   ---------  ----------
    Subtotal............................      10,635      11,404      12,231
    Consolidation.......................       7,760       8,643       5,307
                                           ---------   ---------  ----------
    Total, Direct Loans.................      18,395      20,047      17,538
    Total, All Loans....................      52,344      54,913      52,928
---------------------------------------------------------------------------
    \1\ Net commitments equal gross commitments minus loan cancellations.

                       Number of Loans (In thousands)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................       3,505       3,740       3,964
  Unsubsidized Stafford.................       2,488       2,680       2,839
  PLUS..................................         362         391         413
                                           ---------   ---------  ----------
    Subtotal............................       6,355       6,811       7,216
  Consolidation.........................         315         314         226
                                           ---------   ---------  ----------
    Total, FFEL.........................       6,670       7,125       7,442
Direct Loans:
  Stafford..............................       1,543       1,605       1,696
  Unsubsidized Stafford.................       1,042       1,058       1,119
  PLUS..................................         178         179         188
                                           ---------   ---------  ----------
    Subtotal............................       2,763       2,842       3,003
  Consolidation.........................         370         360         257
                                           ---------   ---------  ----------
    Total, Direct Loans.................       3,133       3,201       3,261

[[Page 369]]

    Total, All Loans....................       9,803      10,326      10,703
---------------------------------------------------------------------------

                    Average Loan Size (in whole dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
FFEL:
  Stafford..............................       3,390       3,397       3,427
  Unsubsidized Stafford.................       4,077       4,065       4,120
  PLUS..................................       7,359       7,504       7,817
                                           ---------   ---------  ----------
    Weighted Average, without 
      Consolidations....................       3,886       3,896       3,951
                                           ---------   ---------  ----------
  Consolidation.........................      29,378      26,505      30,420
                                           ---------   ---------  ----------
    Weighted Average, FFEL..............       5,090       4,893       4,755
Direct Loans:
  Stafford..............................       3,491       3,582       3,615
  Unsubsidized Stafford.................       3,824       4,043       4,103
  PLUS..................................       7,097       7,708       8,010
                                           ---------   ---------  ----------
    Weighted Average, Without 
      Consolidations....................       3,849       4,013       4,073
                                           ---------   ---------  ----------
  Consolidation.........................      20,976      24,033      20,614
                                           ---------   ---------  ----------
    Weighted Average, Direct Loans......       5,871       6,262       5,379
    Weighted Average, All Loans.........       5,339       5,318       4,945
---------------------------------------------------------------------------

            Summary of Subsidy Rates, Default and Interest Rates

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
Subsidy Rates (in percent) \1\
FFEL:
  Stafford..............................      18.15%      16.40%      16.85%
  Unsubsidized Stafford.................       4.98%       6.18%       4.64%
  PLUS..................................       2.98%       4.74%       4.67%
  Consolidation.........................       1.72%       5.73%      10.19%
    Weighted Average, FFEL..............       8.84%       9.76%      10.37%
Direct Loans:
  Stafford..............................       7.16%       3.63%       5.02%
  Unsubsidized Stafford.................     -12.61%     -12.40%     -12.21%
  PLUS..................................      -9.49%      -8.95%      -9.80%
    Consolidation.......................      -7.03%      -4.02%      -3.75%
    Weighted Average, Direct Loans......      -4.47%      -4.02%      -3.50%
Default Rates (in percent) \2\
FFEL:
  Stafford..............................       16.22       16.24       16.27
  Unsubsidized Stafford.................       14.29       14.31       14.34
  PLUS..................................        9.61        9.66        9.70
  Consolidated..........................       20.53       20.53       20.52
    Weighted Average, FFEL..............       16.30       16.11       15.86
Direct Loans:
  Stafford..............................       14.65       14.64       14.64
  Unsubsidized Stafford.................       13.31       13.32       13.34
  PLUS..................................        9.04        9.06        9.07
  Consolidation.........................       14.27       14.11       14.29
    Weighted Average, Direct Loans......       13.81       13.75       13.72
Borrower Interest Rates (in percent) \3\
FFEL:
  Stafford..............................        6.66        6.69        6.53
  Unsubsidized Stafford.................        6.66        6.69        6.54
  PLUS..................................        7.16        6.87        7.25
  Consolidation (reflects Sub and Unsub 
    Stafford Only)......................        8.00        5.88        5.34
Direct Loans:
  Stafford..............................        6.66        6.69        6.50
  Unsubsidized Stafford.................        6.66        6.69        6.50
  PLUS..................................        7.16        6.87        7.27
  Consolidation (reflects Sub and Unsub 
    Stafford only)......................        7.88        5.75        5.63
---------------------------------------------------------------------------
    \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 to determine institutional eligibility to 
participate in Federal loan programs. These three-year rates tend to be 
lower than those included in this table.
    \3\ These represent average borrower interest rates during repayment for 
a typical borrower under standard repayment over the life of the loan.

          Composition of Loan Collections (In thousands of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
FFEL:
  Collections by Guaranty Agencies \1\..   2,699,372   1,487,641   1,609,925
  Collections by Department of Education 
    \2\.................................     683,106     509,439     524,292
  Internal Revenue Service Tax Refund 
    Offsets.............................     950,627     713,183     737,462
      Total, FFEL.......................   4,333,104   2,710,262   2,871,678
Direct Loans:
  Collections by Department of Education 
    \2\.................................     277,985     479,274     649,803
  Internal Revenue Service Tax Refund 
    Offsets.............................      92,297      89,232     124,539
      Total, Direct Loans...............     370,282     568,506     774,343
    Total, FFEL and Direct Loan.........   4,703,387   3,278,768   3,646,020
---------------------------------------------------------------------------
    \1\ These figures show collections net of the amount agencies are 
allowed to retain under the provisions of the Higher Education Act of 1965. 
Agencies may retain 24 percent of most collections, and 18.5 percent of 
amounts collected through the consolidation of existing defaulted loans.
    \2\ These figures include amounts subsequently paid to Department 
contract collections agencies; contract collection costs total $157 million 
for 2001 ($87 million for FFEL and $71 million for Direct Loans); $174 
million for 2002 ($90 million for FFEL and $84 million for Direct Loans); 
and $206 million for 2003 ($92 million for FFEL and $114 million for Direct 
Loans).

         Projected Participation in Repayment Plans \1\ (in percent)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
Direct Loans \1\
Standard
    Percent of Loan Volume: \2\
      Stafford..........................       72.84       72.84       72.84
      Unsubsidized Stafford.............       68.66       68.66       68.66
      PLUS..............................       75.43       75.43       75.43
      Consolidation.....................       21.96       24.04       21.39
  Subsidy Rate (in percent):
      Stafford..........................        8.98        4.21        5.45
      Unsubsidized Stafford.............      -10.44      -11.89      -11.92
      PLUS..............................       -7.13       -7.31       -8.19
      Consolidation.....................       -0.09        0.25        1.83
Graduated: \3\
    Percent of Loan Volume \2\
      Stafford..........................       18.77       18.77       18.77
      Unsubsidized Stafford.............       20.72       20.72       20.72
      PLUS..............................       18.11       18.11       18.11
      Consolidation.....................       18.18       20.39       17.56
    Subsidy Rate (in percent):
      Stafford..........................        2.82        2.08        3.94
      Unsubsidized Stafford.............      -17.90      -14.40      -13.73
      PLUS..............................      -18.22      -14.37      -15.12
      Consolidation.....................      -12.96        1.83        4.25
Extended: \3\
    Percent of Loan Volume: \2\
      Stafford..........................        6.77        6.77        6.77
      Unsubsidized Stafford.............        8.80        8.80        8.80
      PLUS..............................        6.46        6.46        6.46
      Consolidation.....................       15.55       18.12       14.84
  Subsidy Rate (in percent):
      Stafford..........................        3.45        2.53        4.29
      Unsubsidized Stafford.............      -17.17      -13.87      -13.30
      PLUS..............................      -16.61      -12.84      -13.68
      Consolidation.....................      -11.65        1.65        3.71
Income-Contingent:
    Percent of Loan Volume: \2\
      Stafford..........................        1.63        1.63        1.63
      Unsubsidized Stafford.............        1.83        1.83        1.83
      Consolidation.....................       44.31       37.44       46.21
    Subsidy Rate (in percent):
      Stafford..........................        0.60        0.19        1.12
      Unsubsidized Stafford.............        0.49       -1.59       -0.64
      Consolidation.....................       -9.32      -12.09      -11.13
    \1\ For modeling purposes, all FFEL borrowers are assumed to have chosen 
Standard repayment. For Direct Loans, no data is included for the 
Alternative repayment plan, since borrowers are not expected to participate 
in this plan due to the flexibility available under the other options. 
Income-contingent repayment is not available for Direct PLUS borrowers.
    \2\ Percent of Loan Volume represents aggregate data. Individual 
borrowers may move between plans over time.
    \3\ Maximum terms under the Extended and Graduated repayment plans 
reflect the following ``classes'' based on borrower debt levels.

------------------------------------------------------------------------
                                                      Percent of Volume
                                                        Within Direct
         Debt Level             Maximum Term (in        Extended and
                                     years)            Graduated Plans
                                                      (Stafford) FY 02
------------------------------------------------------------------------
Below $10,000...............                    12                 12.59
$10,000-$20,000.............                    15                 35.21
$20,000-$40,000.............                    20                 36.41
$40,000-$60,000.............                    25                 11.07
Above $60,000...............                    30                  4.72
------------------------------------------------------------------------

    The Higher Education Amendments of 1998 broadened the availability 
of alternative repayment plans in the FFEL program. As noted in the 
table above, data on the extent to which FFEL borrowers will take 
advantage of these plans is not yet available.

    Consistent with the Federal Credit Reform Act of 1990, the Office of 
Management and Budget establishes procedures for the estimation of 
subsidy rates for the Federal student loan programs. Subsidy costs for 
each loan type are estimated separately and, because costs can vary 
widely within a pro

[[Page 370]]

gram depending on the characteristics of the individual borrower, cost 
estimates are aggregated from data for homogeneous groups within risk 
categories.

    Risk categories for Stafford and Unsubsidized Stafford Loans are 
based on the type of school attended by the borrower. Since PLUS loan 
borrowers are all parents, they are assumed to share similar risk 
profiles and are grouped together in a single category. For 
Consolidation Loans, risk categories distinguish between standard 
Consolidation Loans--in which borrowers in repayment consolidate a 
number of outstanding loans--and loans consolidated out of default.

    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. 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.

                  FFEL RISK CATEGORIES: STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       22.19       20.07       20.59
  Category 2: 4 year college, 3rd 
    and 4th year students...........       16.38       14.86       15.33
  Category 3: 2 year college, all 
    students........................       20.26       17.80       18.13
  Category 4: Proprietary school, 
    all students....................       14.30       12.78       13.00
  Category 5: Graduate students.....       17.48       15.90       16.39

                    Gross Default Rates (in percent)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       20.40       20.40       20.40
  Category 2: 4 year college, 3rd 
    and 4th year students...........       12.69       12.66       12.65
  Category 3: 2 year college, all 
    students........................       31.52       31.48       31.45
  Category 4: Proprietary school, 
    all students....................       45.67       45.52       45.38
  Category 5: Graduate students.....        8.15        8.13        8.13

                       UNSUBSIDIZED STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........        5.55        7.65        5.97
  Category 2: 4 year college, 3rd 
    and 4th year students...........        4.54        5.58        4.10
  Category 3: 2 year college, all 
    students........................        8.93       10.78        9.22
  Category 4: Proprietary school, 
    all students....................        7.31       10.48        9.12
  Category 5: Graduate students.....        4.13        4.63        3.06

                    Gross Default Rates (in percent)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       20.31       20.31       20.31
  Category 2: 4 year college, 3rd 
    and 4th year students...........       11.70       11.71       11.70
  Category 3: 2 year college, all 
    students........................       27.74       27.71       27.68
  Category 4: Proprietary school, 
    all students....................       35.67       35.55       35.44
  Category 5: Graduate students.....        8.23        8.21        8.21

                               PLUS LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     2001 actual  2002 est.   2003 est.
  All PLUS Loans....................        2.98        4.74        4.67

                    Gross Default Rates (in percent)

                                     2001 actual  2002 est.   2003 est.
  All PLUS Loans....................        9.61        9.66        9.70

               DIRECT LOAN RISK CATEGORIES: STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       11.19        6.91        8.36
  Category 2: 4 year college, 3rd 
    and 4th year students...........        5.45        2.08        3.53
  Category 3: 2 year college, all 
    students........................       11.28        5.65        6.69
  Category 4: Proprietary school, 
    all students....................        7.93        2.97        3.54
  Category 5: Graduate students.....        5.78        3.15        4.57

                    Gross Default Rates (in percent)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       19.97       19.96       19.96
  Category 2: 4 year college, 3rd 
    and 4th year students...........       12.41       12.39       12.38
  Category 3: 2 year college, all 
    students........................       31.34       31.29       31.26
  Category 4: Proprietary school, 
    all students....................       45.07       44.92       44.77
  Category 5: Graduate students.....        8.00        7.98        7.98

                       UNSUBSIDIZED STAFFORD LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........      -12.18      -11.00      -10.48
  Category 2: 4 year college, 3rd 
    and 4th year students...........      -12.84      -12.87      -12.81
  Category 3: 2 year college, all 
    students........................       -6.75       -5.85       -6.31
  Category 4: Proprietary school, 
    all students....................       -5.98       -3.52       -4.80
  Category 5: Graduate students.....      -13.88      -14.28      -13.95

                    Gross Default Rates (in percent)

                                     2001 actual  2002 est.   2003 est.
Risk Categories:
  Category 1: 4 year college, 1st 
    and 2nd year students...........       19.64       19.63       19.63
  Category 2: 4 year college, 3rd 
    and 4th year students...........       11.47       11.44       11.44
  Category 3: 2 year college, all 
    students........................       27.35       27.32       27.28
  Category 4: Proprietary school, 
    all students....................       34.98       34.86       34.75
  Category 5: Graduate students.....        8.07        8.05        8.05

                               PLUS LOANS

           Subsidy Rate (as a percentage of loan commitments)

                                     2001 actual  2002 est.   2003 est.
  All PLUS Loans....................       -9.49       -8.95       -9.80

                    Gross Default Rates (in percent)

                                     2001 actual  2002 est.   2003 est.
  All PLUS Loans....................        9.04        9.06       -9.07

      Selected Program Costs and Offsets \1\ (in thousands of dollars)

----------------------------------------------------------------------------
                                        2001 actual    2002 est.   2003 est.
----------------------------------------------------------------------------
FFEL:
Interest costs:
Interest benefits:
  FFEL Liquidating......................     19,583       15,176      13,656
  FFEL Program..........................  1,926,586    2,177,225   2,121,050
                                        -----------  -----------  ----------
    Total...............................  1,946,169    2,192,401   2,134,705
Special allowance:
  FFEL Liquidating......................     44,675        5,414      12,268
  FFEL Program..........................    900,126      782,745     908,788
                                        -----------  -----------  ----------
    Total...............................    944,801      788,159     921,056
Default costs and offsets:
Default claims:
  FFEL Liquidating......................    185,476       32,326      13,772
  FFEL Program..........................  1,560,662    3,224,912   3,580,502
                                        -----------  -----------  ----------
    Total...............................  1,746,138    3,257,238   3,594,274
Net default collections:
  FFEL Liquidating......................  1,018,996      888,787     740,109
  FFEL Program..........................  2,149,336    2,203,638   2,485,062
                                        -----------  -----------  ----------
    Total...............................  3,168,332    3,092,425   3,225,172
    Contract collection costs:..........
    FFEL Liquidating....................     45,454       57,493      50,217
  FFEL Program..........................    (2,753)            0       (640)
                                        -----------  -----------  ----------
    Total...............................     42,700       57,493      49,577
  Death, disability, and bankruptcy 
      costs:
    FFEL Liquidating....................     48,570       36,531      27,729
    FFEL Program........................    274,703      371,638     421,800
                                        -----------  -----------  ----------
    Total...............................    323,273      408,169     449,529
Fees:
  Borrower origination fees:............    750,082      706,622     739,777
  Lender origination fee................    125,014      117,770     123,296
  Sallie Mae offset fee:................     44,723       51,368      47,374
  Consolidation loan holder fees:.......    209,817      278,037     318,984
Direct Loans:
  Borrower repayments:..................  5,820,065    6,636,713   8,335,706
      Borrower origination fees:........    358,336      286,635     183,226
      Net default Collections:..........    168,652      601,172     828,396
      Contact Collection Costs..........     86,606       89,663      91,637

[[Page 371]]

Administrative Costs:
  Federal administration:
      FFEL..............................     48,000       48,000
      Student Aid Management (SAM) \2\..    635,000      770,000
  Guaranty agency administrative 
      payments:
      Account Maintenance Fee (included 
        in SAM).........................    180,000      170,000     180,000
      Loan Issuance and Processing Fee..    149,799      176,814     185,782
----------------------------------------------------------------------------
    Details may not sum to totals due to rounding.
    \1\ This table represents explicit cash flows in the FFEL and Direct 
Loan financing accounts. Examples of these flows would include payments of 
FFEL interest benefits, default claims, and discharge claims, or collections 
on FFEL or Direct Loan defaults all of which involve explicit events that 
are reflected in the Department's financial systems as they occur. Non-
events, such as Direct Loan interest benefits, defaults, or discharges, 
involve payments that are not received, and hence not recorded in the 
Department's financial systems in the same way. For that reason, these non-
events are not included in this table.
    \2\ For 2003, no funds are requested for loan administration, as these 
costs would be part of the proposed discretionary Student Aid Administration 
account.
    \3\ A number of expenses related to the administration of the student 
assistance programs are paid out of Student Aid Management funds. One of 
these expenses, account maintenance fee payments to guaranty agencies, is 
shown as a separate line.


                                                                

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          40          44
11.3    Other than full-time permanent..           2
11.5    Other personnel compensation....           2           2

                                           ---------   ---------  ----------
11.9      Total personnel compensation..          44          46
12.1  Civilian personnel benefits.......          11          13           2
21.0  Travel and transportation of 
        persons.........................           5           4
23.1  Rental payments to GSA............           5           7
23.3  Communications, utilities, and 
        miscellaneous charges...........          51          48
24.0  Printing and reproduction.........          12           9
25.1  Advisory and assistance services..           2           4
25.2  Other services....................          50          41
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           4           7
25.7  Operation and maintenance of 
        equipment.......................         421         419
26.0  Supplies and materials............           1
31.0  Equipment.........................           6           2
32.0  Land and structures...............           5           3
41.0  Grants, subsidies, and 
        contributions...................       1,329         180

                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,946         783           2
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0243-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         630         631
---------------------------------------------------------------------------

                                                                


                                

                   Federal Direct Student Loan Program

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0243-4-1-502      2001 actual   2002 est.   2003 est.

----------------------------------------------------------------------------

    Obligations by program activity:
00.03 Non-Contractual Modifications.....                                  12
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  12

----------------------------------------------------------------------------

    Budgetary resources available for obligation:
23.95 Total new obligations.............                                 -12
24.40 Unobligated balance carried 
        forward, end of year............                                 -12

----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...                                  -3
69.27   Capital transfer to general fund                                   3
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........

----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                  12
73.20 Total outlays (gross).............                                 -12

----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                  12

----------------------------------------------------------------------------

    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..................                                   3
90.00 Outlays...........................                                  15
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 91-0243-4-1-502      2001 actual   2002 est.   2003 est.

----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Stafford..........................
115002Unsubsidized Stafford.............
115003PLUS..............................
115004Consolidated......................
                                           ---------   ---------  ----------
115901Total direct loan levels..........
    Direct loan subsidy (in percent):
132001Stafford..........................                                0.05
132002Unsubsidized Stafford.............                                0.04
132003PLUS..............................                                0.00
132004Consolidated......................                                0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....                                0.03
    Direct loan subsidy budget authority:
133001Stafford..........................                                   3
133002Unsubsidized Stafford.............                                   2
133003PLUS..............................
133004Consolidated......................
133006Non-contractual modifcations......                                  12
                                           ---------   ---------  ----------
133901Total subsidy budget authority....                                  17
    Direct loan subsidy outlays:
134001Stafford..........................                                   2
134002Unsubsidized Stafford.............                                   1
134003PLUS..............................
134004Consolidated......................
134006Non-contractual modifications.....                                  12
                                           ---------   ---------  ----------
134901Total subsidy outlays.............                                  15
    Direct loan upward reestimate subsidy budget 
                authority:
135005Upward reestimate subsidy budget 
        authority.......................
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................
    Direct loan upward reestimate subsidy outlays:
136005Upward reestimates subsidy outlays
                                           ---------   ---------  ----------
136901Total upward reestimate outlays...
    Direct loan downward reestimate subsidy budget 
                authority:
137005Downward reestimates offsetting 
        collection......................
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................
    Direct loan downward reestimate subsidy 
                outlays:
138005Downward reestimates offsetting 
        collection......................
                                           ---------   ---------  ----------
138901Total downward reestimate subsidy 
        outlays.........................
----------------------------------------------------------------------------

    Student loan administrative expense data:
351001Budget authority..................
359001Outlays...........................
---------------------------------------------------------------------------


    These schedules represent the Administration's proposal to expand 
teacher loan forgiveness. This proposal is described above in the main 
account narrative.

[[Page 372]]

                                

         Federal Direct Student Loan Program, Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct loans:

01.01   Stafford........................       5,523       6,234       6,652
01.02   Unsubsidized Stafford...........       4,314       4,793       5,145
01.03   PLUS............................       1,396       1,535       1,679
01.04   Consolidated....................       7,987       8,704       5,368
01.05   Upward adjustment in prior 
          obligations...................         350
                                           ---------   ---------  ----------
01.91     Subtotal, direct loans 
            obligations.................      19,570      21,266      18,844
      Payment for consolidations:

02.04   Consolidated--Payment of Orig. 
          Services......................          43          40          29
03.01 Payment of contract collections...          71          84         114
04.01 Interest payment to Treasury......       5,101       4,800       5,623
      Other obligations:

08.01   Payment of negative subsidy to 
          program account...............         852         793         604
08.02   Payment of downward reestimate 
          to program account............         531
08.04 Payment of interest on downward 
        reestimate to program account...         147
                                           ---------   ---------  ----------
08.91   Subtotal, other obligations.....       1,530         793         604
                                           ---------   ---------  ----------
10.00   Total new obligations...........      26,315      26,983      25,214
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       4
22.00 New financing authority (gross)...      26,319      26,980      25,213
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................       4,555
22.60 Portion applied to repay debt.....      -2,236
22.70 Balance of authority to borrow 
        withdrawn.......................      -2,319
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      26,319      26,984      25,213
23.95 Total new obligations.............     -26,315     -26,983     -25,214
24.40 Unobligated balance carried 
        forward, end of year............           4
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............      21,795      22,055      19,447
69.00 Offsetting collections (cash).....      11,220      10,129      12,350
69.10 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -71
69.47 Portion applied to repay debt.....      -6,625      -5,204      -6,584
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................       4,524       4,925       5,766
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................      26,319      26,980      25,213
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       7,052       4,239       3,945
73.10 Total new obligations.............      26,315      26,983      25,214
73.20 Total financing disbursements 
        (gross).........................     -24,644     -27,278     -24,930
73.45 Recoveries of prior year 
        obligations.....................      -4,555
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          71
74.40 Obligated balance, end of year....       4,239       3,945       4,229
87.00 Total financing disbursements 
        (gross).........................      24,644      27,278      24,930
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

88.00         Upward reestimate.........      -1,085
88.00         Interest on upward 
                reestimate..............         -74
88.25     Interest on uninvested funds..      -1,058
          Non-Federal sources:
            Stafford loans:

88.40         Repayment of principal, 
                Stafford................      -2,466      -2,113      -2,743
88.40         Interest received on 
                loans, Stafford.........        -762      -1,287      -1,339
88.40         Origination Fees, Stafford        -139        -169        -180
88.40         Other Fees, Stafford......         -28
88.40         Repayment of principal, 
                Unsubsidized Stafford...      -1,697      -1,353      -1,808
88.40         Interest received on 
                loans, Unsubsidized 
                Stafford................        -516        -887        -948
88.40         Origination Fees, 
                Unsubsidized Stafford...        -109        -126        -135
88.40         Repayment of principal, 
                PLUS....................        -863        -510        -649
88.40         Interest received on 
                loans, PLUS.............        -256        -352        -385
88.40         Origination Fees, PLUS....         -35         -54         -59
88.40         Payment of principal, 
                Consolidated............      -1,638      -1,377      -1,859
88.40         Interest received on 
                loans, Consolidated.....        -494      -1,901      -2,245
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -11,220     -10,129     -12,350
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          71
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............      15,170      16,851      12,863
90.00 Financing disbursements...........      13,408      17,149      12,580
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
          STAFFORD
    Position with respect to appropriations act 
                limitation on obligations:
1131  Direct loan obligations exempt 
        from limitation.................       5,522       6,234       6,652
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       5,522       6,234       6,652
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      23,362      26,564      30,041
1231  Disbursements: Direct loan 
        disbursements...................       5,467       5,636       6,014
1251  Repayments: Repayments and 
        prepayments.....................      -2,466      -2,113      -2,743
1261  Adjustments: Capitalized interest.         248
1264  Write-offs for default: Other 
        adjustments, net................         -47         -46         -52
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      26,564      30,041      33,260
----------------------------------------------------------------------------

          UNSUBSIDIZED STAFFORD
    Position with respect to appropriations act 
                limitation on obligations:
1131  Direct loan obligations exempt 
        from limitation.................       4,314       4,793       5,145
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       4,314       4,793       5,145
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      15,048      17,519      20,903
1231  Disbursements: Direct loan 
        disbursements...................       4,039       4,186       4,492
1251  Repayments: Repayments and 
        prepayments.....................      -1,697      -1,353      -1,808
1261  Adjustments: Capitalized interest.         167         580         479
1264  Write-offs for default: Other 
        adjustments, net................         -38         -29         -34
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      17,519      20,903      24,032
----------------------------------------------------------------------------

          PLUS
    Position with respect to appropriations act 
                limitation on obligations:
1131  Direct loan obligations exempt 
        from limitation.................       1,396       1,535       1,679
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,396       1,535       1,679
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       3,502       3,875       4,677
1231  Disbursements: Direct loan 
        disbursements...................       1,258       1,340       1,466
1251  Repayments: Repayments and 
        prepayments.....................        -863        -510        -649
1261  Adjustments: Capitalized interest.           6
1264  Write-offs for default: Other 
        adjustments, net................         -28         -28         -33
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       3,875       4,677       5,461
----------------------------------------------------------------------------

          CONSOLIDATED
    Position with respect to appropriations act 
                limitation on obligations:
1131  Direct loan obligations exempt 
        from limitation.................       7,987       8,704       5,647
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       7,987       8,704       5,647
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      16,610      22,526      29,711
1231  Disbursements: Direct loan 
        disbursements...................       7,402       8,643       5,307
1251  Repayments: Repayments and 
        prepayments.....................      -1,638      -1,377      -1,859
1261  Adjustments: Capitalized interest.         231
1264  Write-offs for default: Other 
        adjustments, net................         -79         -81        -101
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      22,526      29,711      33,058
---------------------------------------------------------------------------

[[Page 373]]



                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4253-0-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       2,299            603         3,945          4,229
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..      58,351         70,313        85,332         95,810
1402    Interest receivable.............       1,779          2,616         5,481          6,298
1405    Allowance for subsidy cost (-)..       2,756          1,739         3,468          3,073
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....      62,886         74,668        94,281        105,181
1901  Other Federal assets: Other assets         258          2,497
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      65,443         77,768        98,226        109,410
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          96            579         2,406          4,086
2103    Debt............................      65,347         77,189        95,820        105,324
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      65,443         77,768        98,226        109,410
    NET POSITION:
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      65,443         77,768        98,226        109,410
-----------------------------------------------------------------  ----------------------------

    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 Financing Account

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4253-4-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Other obligations:

08.01   Payment of negative subsidy to 
          program account...............                                  -5
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  -5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                  -5
23.95 Total new obligations.............                                   5
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............                                  -5
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                  -5
73.20 Total financing disbursements 
        (gross).........................                                   5
87.00 Total financing disbursements 
        (gross).........................                                  -5
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                                  -5
90.00 Financing disbursements...........                                  -5
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4253-4-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................                                                      -5
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                                      -5
    NET POSITION:
3100  Appropriated capital..............                                                       5
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                                                       5
-----------------------------------------------------------------  ----------------------------

    These schedules represent the Administration's proposal to expand 
teacher loan forgiveness. This proposal is decribed above in the main 
account narrative.

                                

              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 of 
1965, as amended, $49,636,000.] (Department of Education Appropriations 
Act, 2002; additional authorizing legislation required.)

      

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed Loan Net Subsidy.......       2,726       3,373       3,675
      Administrative expenses:

00.09   Administrative expenses due to 
          limitations...................          48          49
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,774       3,422       3,675
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           3
22.00 New budget authority (gross)......       3,116       3,830       4,090
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
22.40 Capital transfer to general fund..        -342        -411        -415
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,777       3,422       3,675
23.95 Total new obligations.............      -2,774      -3,422      -3,675
24.40 Unobligated balance carried 
        forward, end of year............           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation (Federal 
          administration)...............          48          50
40.71   Reduction pursuant to P.L. 107-
          116...........................                      -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          48          49
      Mandatory:

60.00   Appropriation...................       3,068       3,781       4,090
      Offsetting collections (cash):

69.00   Offsetting collections (cash)--
          downward reestimate...........       3,526
69.00   Offsetting collections (cash)--
          interest on downward 
          reestimate....................       1,202
69.27 Capital transfer to general fund..      -4,728
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,116       3,830       4,090
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,265         862         952
73.10 Total new obligations.............       2,774       3,422       3,675
73.20 Total outlays (gross).............      -3,176      -3,332      -3,660
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....         862         952         967
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          37          37
86.93 Outlays from discretionary 
        balances........................          19          29          11
86.97 Outlays from new mandatory 
        authority.......................       1,871       2,409       2,685
86.98 Outlays from mandatory balances...       1,249         855         963
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       3,176       3,332       3,660
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........      -4,728
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      -1,612       3,830       4,090
90.00 Outlays...........................      -1,552       3,332       3,660
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2001 actual  2002 est.   2003 est.
Enacted/requested:
  Budget Authority..................      -1,612       3,830       4,090
  Outlays...........................      -1,552       3,330       3,659
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                                  34
  Outlays...........................                                  30
                                    ------------------------------------
Total:
  Budget Authority..................      -1,612       3,830       4,124
  Outlays...........................      -1,552       3,330       3,689
                                    ====================================

                                                            

[[Page 374]]



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

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Stafford..........................      12,601      14,407      15,408
215002Unsubsidized Stafford.............      11,117      12,633      13,569
215003PLUS..............................       2,985       3,346       3,685
215004Consolidated......................       8,002       8,364       6,897
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......      34,705      38,750      39,559
    Guaranteed loan subsidy (in percent):
232001Stafford..........................       18.15       16.40       16.81
232002Unsubsidized Stafford.............        4.98        6.18        4.61
232003PLUS..............................        2.98        4.74        4.67
232004Consolidated......................        1.72        5.73       10.19
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        8.84        9.76       10.34
    Guaranteed loan subsidy budget authority:
233001Stafford..........................       2,288       2,363       2,590
233002Unsubsidized Stafford.............         554         781         626
233003PLUS..............................          89         159         172
233004Consolidated......................         138         479         703
                                           ---------   ---------  ----------
233901Total subsidy budget authority....       3,069       3,782       4,091
    Guaranteed loan subsidy outlays:
234001Stafford..........................       2,298       2,060       2,218
234002Unsubsidized Stafford.............         577         611         583
234003PLUS..............................          97         117         147
234004Consolidated......................         137         478         701
                                           ---------   ---------  ----------
234901Total subsidy outlays.............       3,109       3,266       3,649
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237005Downward reestimate...............      -4,728
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................      -4,728
    Guaranteed loan downward reestimate subsidy 
                outlays:
238005Downward reestimate subsidy 
        outlays.........................      -4,728
                                           ---------   ---------  ----------
238901Total downward reestimate subsidy 
        outlays.........................      -4,728
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................          48          49
359001Outlays...........................          56          67          11
---------------------------------------------------------------------------

                                                                


                                                                


    As required by the Federal Credit Reform Act of 1990, this program 
account records 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. Consistent with the Administration's proposal to consolidate 
student aid administrative activities in a single discretionary account, 
these expenses are not reflected for 2003. For a discussion of this 
proposal, see the narrative description above in the Student Aid 
Administration account. Beginning with the 1993 cohort, mandatory 
administrative costs, specifically contract collection costs, are 
included in the FFEL subsidy estimates of each year's cohort. 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      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          21          23
11.3    Other than full-time permanent..           1
11.5    Other personnel compensation....           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          23          24
12.1  Civilian personnel benefits.......           5           5
23.1  Rental payments to GSA............           3           3
23.3  Communications, utilities, and 
        miscellaneous charges...........           3           2
25.2  Other services....................           1           1
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           1           1
25.7  Operation and maintenance of 
        equipment.......................          11          12
31.0  Equipment.........................           1           1
41.0  Grants, subsidies, and 
        contributions...................       2,726       3,373       3,675
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,774       3,422       3,675
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0231-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         345         326
---------------------------------------------------------------------------

                                

              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      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed Loan Net Subsidy.......                                  32
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  32
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  34
23.95 Total new obligations.............                                 -32
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                  34
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                  32
73.20 Total outlays (gross).............                                 -30
74.40 Obligated balance, end of year....                                   2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                  30
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  34
90.00 Outlays...........................                                  30
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 91-0231-4-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Stafford..........................
215002Unsubsidized Stafford.............
215003PLUS..............................
215004Consolidated......................
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......
    Guaranteed loan subsidy (in percent):
232001Stafford..........................                                0.04
232002Unsubsidized Stafford.............                                0.03
232003PLUS..............................                                0.00
232004Consolidated......................                                0.00
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....                                0.03
    Guaranteed loan subsidy budget authority:
233001Stafford..........................                                   6
233002Unsubsidized Stafford.............                                   4
233003PLUS..............................
233004Consolidated......................
                                           ---------   ---------  ----------
233901Total subsidy budget authority....                                  10
    Guaranteed loan subsidy outlays:
234001Stafford..........................                                   4
234002Unsubsidized Stafford.............                                   2
234003PLUS..............................

[[Page 375]]

234004Consolidated......................
                                           ---------   ---------  ----------
234901Total subsidy outlays.............                                   6
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237005Downward reestimate...............
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................
    Guaranteed loan downward reestimate subsidy 
                outlays:
238005Downward reestimate subsidy 
        outlays.........................
                                           ---------   ---------  ----------
238901Total downward reestimate subsidy 
        outlays.........................
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................
359001Outlays...........................
---------------------------------------------------------------------------


                                                                


                                                                

    These schedules represent the Administration's proposal to expand 
teacher loan forgiveness. This proposal is described above in the main 
account narrative.

      

      

                                

        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      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.01   Interest benefits...............       2,557       1,443       1,359
01.02   Special allowance...............         421         189         408
01.03   Default claims..................       1,278       1,377       1,531
01.04   Death, disability, and 
          bankruptcy claims.............         142         138         148
01.07   Contract collection costs.......          26          19          25
01.08   Loan Processing Fee.............          29          94         100
01.09   Voluntary flexible Agreement 
          Performance Fee...............          48
                                           ---------   ---------  ----------
01.91     Subtotal, Stafford loans......       4,501       3,260       3,571
      Unsubsidized Stafford loans:

02.02   Special allowance...............         275         144         291
02.03   Default claims..................         644         725         905
02.04   Death, disability, and 
          bankruptcy claims.............          81          77          89
02.07   Contract collection costs.......          11           4           6
02.08   Loan Processing Fee.............          24          82          87
02.09   Voluntary flexible agreement 
          performance fee...............          21
                                           ---------   ---------  ----------
02.91     Subtotal, Unsubsidized 
            Stafford loans..............       1,056       1,032       1,378
      PLUS loans:

03.02   Special allowance...............          18          19          24
03.03   Default claims..................          71         176         199
03.04   Death, disability, and 
          bankruptcy claims.............          46          66          76
03.07   Contract Collection Costs.......           1           1           1
03.08   Loan Processing Fee.............           6          22          24
03.09   Voluntary flexible agreement 
          performance fee...............           7
                                           ---------   ---------  ----------
03.91     Subtotal, PLUS loans..........         149         284         324
      SLS loans:

04.02   Special allowance...............                       1           1
04.03   Default claims..................          75          40          15
04.04   Death, disability and bankruptcy 
          claims........................          12           7           6
04.07   Contract collection costs.......           3           5           5
04.09   Voluntary flexible agreement 
          performance fee...............           2
                                           ---------   ---------  ----------
04.91     Subtotal, SLS loans...........          92          53          27
      Consolidation loans:

05.02   Special allowance...............         129          58         168
05.03   Default claims..................         453         861       1,016
05.04   Death, disability, and 
          bankruptcy claims.............         105         151         182
05.07   Contract collection costs.......           3           4           5
05.09   Voluntary flexible agreement 
          performance fee...............          23
                                           ---------   ---------  ----------
05.91     Subtotal, Consolidations loans         713       1,074       1,371
08.02 Downward reestimate...............       3,526
08.03 Adjusting payments to liquidating 
        accounts........................         476
08.04 Interest on downward reestimate...       1,202
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............       5,204
                                           ---------   ---------  ----------
10.00   Total new obligations...........      11,715       5,703       6,671
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       7,652       4,952       6,117
22.00 New financing authority (gross)...       8,271       6,867       7,712
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         744
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      16,667      11,819      13,829
23.95 Total new obligations.............     -11,715      -5,703      -6,671
24.40 Unobligated balance carried 
        forward, end of year............       4,952       6,117       7,158
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...       8,271       6,867       7,712
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..       1,868       1,392         677
73.10 Total new obligations.............      11,715       5,703       6,671
73.20 Total financing disbursements 
        (gross).........................     -11,448      -6,417      -6,555
73.45 Recoveries of prior year 
        obligations.....................        -744
74.40 Obligated balance, end of year....       1,392         677         792
87.00 Total financing disbursements 
        (gross).........................      11,448       6,417       6,555
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

88.00         Stafford loans............      -2,298      -2,060      -2,218
88.00         Unsubsidized Stafford.....        -577        -611        -583
88.00         PLUS loans................         -97        -117        -147
88.00         Consolidated loans........        -137        -478        -701
88.25     Interest on uninvested funds..        -461        -395        -447
          Non-Federal sources:
            Student Loans: Stafford, 
              Unsubsidized Stafford, 
              PLUS, SLS & Consolidation:

88.40         Stafford recoveries on 
                defaults................      -1,998      -1,071      -1,192
88.40         Stafford origination fees.        -404        -435        -466
88.40         Stafford Sallie Mae offset 
                fees....................         -27         -27         -24
88.40         Other fees................        -188
88.40         Unsubsidized Stafford 
                recoveries on defaults..        -803        -289        -363
88.40         Unsubsidized Stafford 
                origination fees........        -332        -373        -400
88.40         Unsubsidized Stafford 
                Sallie Mae offset fees..         -17         -18         -18
88.40         PLUS recoveries on 
                defaults................         -65         -60         -73
88.40         PLUS origination fees.....         -96         -99        -109
88.40         PLUS Sallie Mae offset 
                fees....................          -6          -6          -6
88.40         SLS recoveries on defaults        -207         -94         -93
88.40         SLS Sallie Mae offset fees          -1
88.40         Other fees................          -2
88.40         Consolidation recoveries 
                on defaults.............        -240        -307        -411
88.40         Consolidation origination 
                fees....................         -28         -41         -34
88.40         Consolidated loan holders 
                fee.....................        -287        -386        -427
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -8,271      -6,867      -7,712
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........       3,177        -450      -1,157
---------------------------------------------------------------------------


                                                                

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-4251-0-3-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
          STAFFORD
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................      12,601      14,407      15,408
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      12,601      14,407      15,408
2199  Guaranteed amount of guaranteed 
        loan commitments................      12,601      14,407      15,408
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      63,723      69,103      70,587
2231  Disbursements of new guaranteed 
        loans...........................      11,337      12,435      13,297
2251  Repayments and prepayments........      -4,450      -9,428     -10,560
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....      -1,365      -1,385      -1,534
2263    Terminations for default that 
          result in claim payments......        -142        -138        -148
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      69,103      70,587      71,642
----------------------------------------------------------------------------

[[Page 376]]


    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      69,103      70,587      71,642
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       2,649       2,498       2,782
2331    Disbursements for guaranteed 
          loan claims...................       1,365       1,385       1,534
2351    Repayments of loans receivable..      -1,241      -1,071      -1,192
2361    Write-offs of loans receivable..         -30         -30         -34
2364    Other adjustments, net..........        -245
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       2,498       2,782       3,090
----------------------------------------------------------------------------

          UNSUBSIDIZED STAFFORD
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................      11,117      12,633      13,569
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      11,117      12,633      13,569
2199  Guaranteed amount of guaranteed 
        loan commitments................      11,117      12,633      13,569
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      36,718      41,838      46,790
2231  Disbursements of new guaranteed 
        loans...........................       9,624      10,651      11,438
2251  Repayments and prepayments........      -3,736      -4,897      -6,196
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -687        -725        -893
2263    Terminations for default that 
          result in claim payments......         -81         -77         -89
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      41,838      46,790      51,050
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      41,838      46,790      51,050
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         901         922       1,337
2331    Disbursements for guaranteed 
          loan claims...................         687         725         893
2351    Repayments of loans receivable..        -490        -289        -363
2361    Write-offs of loans receivable..         -17         -21         -29
2364    Other adjustments, net..........        -159
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         922       1,337       1,838
----------------------------------------------------------------------------

          PLUS
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................       2,985       3,346       3,685
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       2,985       3,346       3,685
2199  Guaranteed amount of guaranteed 
        loan commitments................       2,985       3,346       3,685
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       8,131       9,626      10,519
2231  Disbursements of new guaranteed 
        loans...........................       2,621       2,834       3,120
2251  Repayments and prepayments........      -1,004      -1,712      -1,912
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -76        -163        -199
2263    Terminations for default that 
          result in claim payments......         -46         -66         -76
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       9,626      10,519      11,452
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       9,626      10,519      11,452
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         196         189         280
2331    Disbursements for guaranteed 
          loan claims...................          76         163         199
2351    Repayments of loans receivable..         -39         -60         -73
2361    Write-offs of loans receivable..         -10         -12         -17
2364    Other adjustments, net..........         -34
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         189         280         389
----------------------------------------------------------------------------

          SLS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       2,200       1,856       1,576
2251  Repayments and prepayments........        -252        -227        -204
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -80         -46         -19
2263    Terminations for default that 
          result in claim payments......         -12          -7          -6
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       1,856       1,576       1,347
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       1,856       1,576       1,347
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         674         614         564
2331    Disbursements for guaranteed 
          loan claims...................          80          46          19
2351    Repayments of loans receivable..        -131         -94         -93
2361    Write-offs of loans receivable..          -2          -2          -2
2364    Other adjustments, net..........          -7
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         614         564         488
----------------------------------------------------------------------------

          CONSOLIDATED
    Position with respect to appropriations act 
                limitation on commitments:
2131  Guaranteed loan commitments exempt 
        from limitation.................       8,002       8,364       6,897
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       8,002       8,364       6,897
2199  Guaranteed amount of guaranteed 
        loan commitments................       8,002       8,364       6,897
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      28,162      32,384      37,316
2231  Disbursements of new guaranteed 
        loans...........................       6,955       8,335       6,877
2251  Repayments and prepayments........      -2,144      -2,438      -3,053
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -484        -814      -1,010
2263    Terminations for default that 
          result in claim payments......        -105        -151        -182
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      32,384      37,316      39,948
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      32,384      37,316      39,948
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         922       1,116       1,855
2331    Disbursements for guaranteed 
          loan claims...................         484         814       1,010
2351    Repayments of loans receivable..        -139         -42        -411
2361    Write-offs of loans receivable..         -22         -33         -43
2364    Other adjustments, net..........        -129
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       1,116       1,855       2,411
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4251-0-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       9,741          6,531         6,117          7,158
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............       5,342          5,339         6,816          8,215
1502    Interest receivable.............       1,189          1,287         1,390          1,501
1505    Allowance for subsidy cost (-)..       1,503          1,830         2,233          2,724
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............       8,034          8,456        10,439         12,440
1901  Other Federal assets: Other assets           2            336
                                        ------------ --------------  ------------  -------------

[[Page 377]]


1999    Total assets....................      17,777         15,323        16,556         19,598
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................       4,553          2,827         4,685          8,321
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.      13,224         12,496        11,871         11,277
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      17,777         15,323        16,556         19,598
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      17,777         15,323        16,556         19,598
-----------------------------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this 
nonbudgetary account records all cash flows to and from the Government 
resulting from Federal Family Education Loans (FFEL), formerly 
guaranteed student loans (GSL), 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      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                   6
24.40 Unobligated balance carried 
        forward, end of year............                                   6
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...                                   6
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

88.00         Stafford loans............                                  -4
88.00         Unsubsidized Stafford.....                                  -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                  -6
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                                  -6
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-4251-4-3-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                                                       6
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                                       6
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................                                                       6
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                                       6
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                                       6
-----------------------------------------------------------------------------------------------

    These schedules represent the Administration's proposal to increase 
teacher loan forgiveness. This proposal is described above in the main 
account narrative.

                                

            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      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Stafford loans:

01.01   Interest benefits, net of 
          origination fees..............          19          15          14
01.02   Special allowance net of 
          origination fees..............          45           5          12
01.03   Default claims..................         156          29          12
01.04   Death, disability, and 
          bankruptcy claims.............          41          27          20
01.07   Contract collection costs.......          35          45          40
                                           ---------   ---------  ----------
01.91     Subtotal, Stafford loans......         296         121          98
      PLUS/SLS loans:

02.01   Default claims..................          30           4           2
02.02   Death, disability, and 
          bankruptcy claims.............           7          10           8
02.05   Contract collection costs.......           8          12           9
                                           ---------   ---------  ----------
02.91     Subtotal, PLUS/SLS loans......          45          26          19
                                           ---------   ---------  ----------
10.00   Total new obligations...........         341         147         117
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         521         146
22.00 New budget authority (gross)......         437         147         117
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          49
22.40 Capital transfer to general fund..        -521        -146
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         486         147         117
23.95 Total new obligations.............        -341        -147        -117
24.40 Unobligated balance carried 
        forward, end of year............         146
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...       1,501         892         742
69.27   Capital transfer to general fund      -1,064        -745        -625
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         437         147         117
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         422          65
73.10 Total new obligations.............         341         147         117
73.20 Total outlays (gross).............        -649        -212        -117
73.45 Recoveries of prior year 
        obligations.....................         -49
74.40 Obligated balance, end of year....          65
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         227         147         117
86.98 Outlays from mandatory balances...         422          65
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         649         212         117
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -476
          Federal student loans:
            Non-Federal sources:

88.40         Fed collections on 
                defaulted loans, 
                Stafford................        -356        -260        -229
88.40         Federal collections on 
                bankruptcies, Stafford..          -4          -2          -2
88.40         Offsets against Federal 
                tax refunds,Stafford....        -173        -241        -204
88.40         Reimbursements from 
                guaranty agencies, 
                Stafford................        -335        -230        -179
88.40         Sallie Mae Offset Fee.....          -1
88.40         Federal collections on 
                defaulted loans, PLUS/
                SLS.....................         -80         -67         -56
88.40         Federal collections on 
                bankruptcies, PLUS/SLS..          -1          -1
88.40         Offsets against Federal 
                tax refunds, PLUS/SLS...         -21         -56         -45
88.40         Reimbursements from 
                guaranty agencies, PLUS/
                SLS.....................         -54         -35         -27
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,501        -892        -742
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      -1,064        -745        -625
90.00 Outlays...........................        -852        -680        -625
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
          STAFFORD LOANS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       5,481       3,612       1,812
2251  Repayments and prepayments........      -1,512      -1,713        -979
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....        -316         -50         -15

[[Page 378]]

2263    Terminations for default that 
          result in claim payments......         -41         -37         -28
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       3,612       1,812         790
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       3,612       1,812         790
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......      12,835      12,094      11,493
2331    Disbursements for guaranteed 
          loan claims...................         316          50          15
2351    Repayments of loans receivable..        -628        -419        -344
2361    Write-offs of loans receivable..        -183        -173        -164
2364    Other adjustments, net..........        -246         -59         -46
                                           ---------   ---------  ----------
2390      Outstanding, end of year......      12,094      11,493      10,954
----------------------------------------------------------------------------

          PLUS/SLS LOANS
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       1,042         881         760
2251  Repayments and prepayments........         -93        -103        -103
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -61          -8          -2
2263    Terminations for default that 
          result in claim payments......          -7         -10          -8
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         881         760         647
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         881         760         647
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       2,151       2,026       1,921
2331    Disbursements for guaranteed 
          loan claims...................          61           8           2
2351    Repayments of loans receivable..        -113         -75         -60
2361    Write-offs of loans receivable..         -32         -30         -29
2364    Other adjustments, net..........         -41          -8          -6
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       2,026       1,921       1,828
---------------------------------------------------------------------------

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0230-0-1-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    Stafford:
0111  Revenue...........................       1,711            868           733            613
0112  Expense...........................        -221           -296          -122            -98
                                        ------------ --------------  ------------  -------------
0115  Net income or loss (-)............       1,490            572           611            515
    PLUS/SLS:
0121  Revenue...........................         307            156           159            129
0122  Expense...........................         -30            -45           -25            -19
                                        ------------ --------------  ------------  -------------
0125  Net income or loss (-)............         277            111           134            110
                                        ------------ --------------  ------------  -------------
0191  Total revenues....................       2,018          1,024           892            742
                                        ------------ --------------  ------------  -------------
0192  Total expenses....................        -251           -341          -147           -117
                                        ------------ --------------  ------------  -------------
0195  Total income or loss (-)..........       1,767            683           745            625
                                        ------------ --------------  ------------  -------------
0199  Total comprehensive income........       1,767            683           745            625
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   91-0230-0-1-502    2000 actual    2001 actual     2002 est.      2003 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         889            191
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1701    Defaulted guaranteed loans, 
          gross.........................      15,026         14,160        13,310         12,511
1702    Interest receivable.............       2,007          1,740         1,514          1,317
1703    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................     -14,087        -14,533       -14,200        -13,600
                                        ------------ --------------  ------------  -------------
1704      Defaulted guaranteed loans and 
            interest receivable, net....       2,946          1,367           624            228
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............       2,946          1,367           624            228
1901  Other Federal assets: Other assets         754             62
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,589          1,620           624            228
    LIABILITIES:
      Non-Federal liabilities:

2201    Accounts payable................         246              8
2204    Liabilities for loan guarantees.       4,343          1,612           624            228
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       4,589          1,620           624            228
    NET POSITION:
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,589          1,620           624            228
-----------------------------------------------------------------------------------------------
    \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 for 1992 and beyond is recorded in 
corresponding program and financing accounts. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0230-0-1-502      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
25.2  Other services....................          43          57          49
33.0  Investments and loans.............         185          32          14
41.0  Grants, subsidies, and 
        contributions...................          64          21          26
42.0  Insurance claims and indemnities..          49          37          28
                                           ---------   ---------  ----------
99.9    Total new obligations...........         341         147         117
---------------------------------------------------------------------------

                                


 
             OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT

                              Federal Funds

General and special funds:

             Education Research, Statistics, and Assessment

    [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, including sections 411 
and 412; section 4 of the No Child Left Behind Act of 2001; and title 
VI, part A of the Elementary and Secondary Education Act, $443,870,000: 
Provided, That $58,000,000 of the amount available for the national 
education research institutes shall be allocated notwithstanding section 
912(m)(1)(B-F) and subparagraphs (B) and (C) of section 931(c)(2) of 
Public Law 103-227.] (Department of Education Appropriations Act, 2002.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Direct program:
      Obligations by program activity:

        Research, development and 
            dissemination:
00.01     Research and dissemination....         120         122
00.02     Regional educational 
            laboratories................          65          67
00.03     Statistics....................          80          85
00.04   Assessment......................          40         112
00.05   Eisenhower professional 
          development Federal activities          23
00.06   Fund for the Improvement of 
          Education.....................         340           1
00.07   Mulit-year grants and contracts.                      58

[[Page 379]]

00.08   Javits gifted and talented 
          education.....................           8
00.09   Eisenhower regional mathematics 
          and science education 
          consortia.....................          15
00.10   National writing project........          10
00.11   Civic education.................          12
00.12   International education exchange          10
                                           ---------   ---------  ----------
01.00 Total direct program..............         723         445
09.01 Reimbursable program..............           5           5
                                           ---------   ---------  ----------
10.00 Total new obligations.............         728         450
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           1
22.00 New budget authority (gross)......         727         449
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         729         450
23.95 Total new obligations.............        -728        -450
24.40 Unobligated balance carried 
        forward, end of year............           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         733         444
40.75   Reduction pursuant to P.L. 106-
          554 (Labor/HHS)...............          -1
41.00   Transferred to other accounts...         -10
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         722         444
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           5           5
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         727         449
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         720         876         502
73.10 Total new obligations.............         728         450
73.20 Total outlays (gross).............        -570        -824        -404
73.40 Adjustments in expired accounts 
        (net)...........................          -2
74.40 Obligated balance, end of year....         876         502          98
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         132         107
86.93 Outlays from discretionary 
        balances........................         438         717         404
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         570         824         404
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -5          -5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         722         444
90.00 Outlays...........................         565         819         404
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2001 actual  2002 est.   2003 est.
Enacted/requested:
  Budget Authority..................         722         444
  Outlays...........................         565         819         404
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 433
  Outlays...........................                                 107
                                    ------------------------------------
Total:
  Budget Authority..................         722         444         433
  Outlays...........................         565         819         511
                                    ====================================

    The Administration will propose legislation reauthorizing the 
research, statistics, and assessment activities carried out by the 
Office of Educational Research and Improvement. When new authorizing 
legislation is enacted, resources for these programs will be requested. 
See the ``Legislative proposal, not subject to PAYGO'' schedule for 
additional details.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........           1           1
11.3      Other than full-time permanent           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation           2           2
24.0    Printing and reproduction.......           2           2
25.1    Advisory and assistance services           2           2
25.2    Other services..................          81         123
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          36          36
25.5    Research and development 
          contracts.....................          98          98
25.7    Operation and maintenance of 
          equipment.....................           6           6
31.0    Equipment.......................           2           2
41.0    Grants, subsidies, and 
          contributions.................         494         174
                                           ---------   ---------  ----------
99.0      Direct obligations............         723         445
99.0  Reimbursable obligations..........           5           5
                                           ---------   ---------  ----------
99.9    Total new obligations...........         728         450
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-1100-0-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......          13          15
---------------------------------------------------------------------------

                                

             Education Research, Statistics, and Assessment

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-2-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
    Direct program:
      Obligations by program activity:

        Research, development and 
            dissemination:
00.01     Research and dissemination....                                 175
00.02     Regional educational 
            laboratories................                                  68
00.03     Statistics....................                                  95
00.04   Assessment......................                                  95
                                           ---------   ---------  ----------
01.00 Total direct program..............                                 433
09.01 Reimbursable program..............                                   5
                                           ---------   ---------  ----------
10.00 Total new obligations.............                                 438
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 438
23.95 Total new obligations.............                                -438
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                 433
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                                   5
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                                 438
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                 438
73.20 Total outlays (gross).............                                -112
74.40 Obligated balance, end of year....                                 326
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 112
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                                  -5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 433
90.00 Outlays...........................                                 107
---------------------------------------------------------------------------

    Research and dissemination.--The Administration's proposal will 
address needed improvements in the quality and relevance of the 
Department's research activities. Funds will support a diverse portfolio 
of directed research, field-initiated studies, research and development 
centers, and interagency initiatives. New research on reading 
comprehension, early childhood education, and learning and cognition 
will expand the understanding of how children learn. Funds also will 
support fellowships for doctoral students to increase the nation's 
educational research capacity and dissemination activities that provide 
parents, teachers, and schools with valid information on effective 
educational practice.

[[Page 380]]

    Regional educational laboratories.--Funds will be used to continue 
current contracts for the network of regional laboratories. The 
laboratories conduct applied research and development, dissemination, 
and technical assistance activities to address needs in their regions.

    Statistics.--Funds support the Department's statistical data 
collection activities, which are conducted by the National Center for 
Education Statistics (NCES). NCES collects, analyzes, and disseminates 
statistics on education at all levels, from preschool through 
postsecondary and adult education, including statistics on international 
education activities.

    Assessment.--Funds support the National Assessment of Educational 
Progress (NAEP). NAEP administers assessments to samples of students in 
order to gather reliable information about educational attainment in 
important academic areas. Funds support collection and reporting of 
national, State, and long-term trend information, including the conduct 
of biennial State NAEP in reading and mathematics at grades 4 and 8. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1100-2-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........                                   1
11.3      Other than full-time permanent                                   1
                                           ---------   ---------  ----------
11.9        Total personnel compensation                                   2
24.0    Printing and reproduction.......                                   2
25.1    Advisory and assistance services                                   2
25.2    Other services..................                                 167
25.3    Other purchases of goods and 
          services from Government 
          accounts......................                                  36
25.5    Research and development 
          contracts.....................                                  98
25.7    Operation and maintenance of 
          equipment.....................                                   6
31.0    Equipment.......................                                   2
41.0    Grants, subsidies, and 
          contributions.................                                 118
                                           ---------   ---------  ----------
99.0      Direct obligations............                                 433
99.0  Reimbursable obligations..........                                   5
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                 438
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-1100-2-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......                                  15
---------------------------------------------------------------------------

                                


 
                         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] three passenger 
motor vehicles, [$424,212,000] $423,291,000, of which $12,795,000, to 
remain available until expended, shall be for building alterations and 
related expenses for the modernization of the Mary E. Switzer Building 
in Washington, D.C. (Department of Education Appropriations Act, 2002; 
additional authorizing legislation required.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Program administration............         423         434         423
09.01 Reimbursable program..............           2           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........         425         436         425
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         425         436         425
23.95 Total new obligations.............        -425        -436        -425
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         424         435         423
40.71   Reduction pursuant to P.L. 107-
          116...........................                      -1
40.75   Reduction pursuant to P.L. 106-
          554 (Labor/HHS)...............          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         423         434         423
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         425         436         425
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         151         133         116
73.10 Total new obligations.............         425         436         425
73.20 Total outlays (gross).............        -449        -453        -410
73.40 Adjustments in expired accounts 
        (net)...........................           6
74.40 Obligated balance, end of year....         133         116         130
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         328         336         325
86.93 Outlays from discretionary 
        balances........................         120         117          85
86.98 Outlays from mandatory balances...           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         449         453         410
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

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

    Net budget authority and outlays:
89.00 Budget authority..................         423         434         423
90.00 Outlays...........................         447         451         408
---------------------------------------------------------------------------

  Budget Authority and Outlays Excluding Full Funding for Federal Retiree 
                       Costs (in millions of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         412         423         412
90.00 Outlays...........................         436         440         397
---------------------------------------------------------------------------

    The Program Administration account includes the direct Federal costs 
of providing grants and administering elementary and secondary 
education, bilingual education, Indian education, higher education, 
vocational and adult education, and special education programs, and 
programs for persons with disabilities. It also supports assessment, 
statistics, and research 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; telecommunications; contractual 
services; financial management and accounting, including payments to 
schools, education agencies and other grant recipients, and preparation 
of auditable financial statements; information technology services; 
personnel management; personnel security; budget formulation and 
execution; program evaluation; legal services; congressional and public 
relations; and intergovernmental affairs.

    Included in this account is the Department of Education's portion of 
costs to modernize the Mary E. Switzer building, including costs for 
building renovations, furniture, information technology equipment and 
services, and telecommunications, to remain available until expended. 
The additional funds required for the modernization will be provided by 
the General Services Administration. This account also provided funds 
for the renovation of the Department's main headquarters building which 
was completed in 1998.

[[Page 381]]

    Also included in this account are contributions from the public. 
Activities supported include Presidential Scholars, Satellite Town 
Meetings, School Recognition, and the Gifts and Bequests Miscellaneous 
Fund.

    Reimbursable program.--Reimbursements to this account are for 
providing administrative services to other agencies, recycling 
activities, and in-kind travel.

    Note.--Excludes $54 million in budget authority in 2003 for 
activities transferred to the Student Aid Administration account. 
Comparable amounts for 2001 ($58 million) and 2002 ($59 million) are 
included above.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         164         193         183
11.3      Other than full-time permanent          20          10          10
11.5      Other personnel compensation..           5           5           4
                                           ---------   ---------  ----------
11.9        Total personnel compensation         189         208         197
12.1    Civilian personnel benefits.....          50          56          55
21.0    Travel and transportation of 
          persons.......................           6           5           6
23.1    Rental payments to GSA..........          34          35          32
23.3    Communications, utilities, and 
          miscellaneous charges.........          12          14          15
24.0    Printing and reproduction.......           2           3           3
25.1    Advisory and assistance services           6           4           5
25.2    Other services..................          21          21          20
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          11           8           8
25.7    Operation and maintenance of 
          equipment.....................          76          66          60
26.0    Supplies and materials..........           2           3           3
31.0    Equipment.......................          11           9          16
32.0    Land and structures.............           2           2           3
                                           ---------   ---------  ----------
99.0      Direct obligations............         422         434         423
99.0  Reimbursable obligations..........           2           2           2
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         425         436         425
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0800-0-1-503      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       2,581       2,709       2,476
---------------------------------------------------------------------------

                                

                         Office for Civil Rights

    For expenses necessary for the Office for Civil Rights, as 
authorized by section 203 of the Department of Education Organization 
Act, [$79,934,000] $89,710,000. (Department of Education Appropriations 
Act, 2002; additional authorizing legislation required.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Civil rights......................          79          83          89
                                           ---------   ---------  ----------
10.00   Total new obligations...........          79          83          89
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          79          83          89
23.95 Total new obligations.............         -79         -83         -89
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          79          83          89
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          23          17          15
73.10 Total new obligations.............          79          83          89
73.20 Total outlays (gross).............         -83         -85         -86
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....          17          15          18
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          67          70          73
86.93 Outlays from discretionary 
        balances........................          16          15          12
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          83          85          86
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          79          83          89
90.00 Outlays...........................          83          85          86
---------------------------------------------------------------------------

  Budget Authority and Outlays Excluding Full Funding for Federal Retiree 
                       Costs (in millions of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          76          80          86
90.00 Outlays...........................          80          82          83
---------------------------------------------------------------------------

    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      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          44          48          49
11.3      Other than full-time permanent           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          46          50          51
12.1    Civilian personnel benefits.....          13          14          15
21.0    Travel and transportation of 
          persons.......................           1           1           1
23.1    Rental payments to GSA..........           6           6           6
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.2    Other services..................           2           1           1
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           2           1           1
25.7    Operation and maintenance of 
          equipment.....................                       5           8
31.0    Equipment.......................           6           2           3
                                           ---------   ---------  ----------
99.0      Direct obligations............          78          82          88
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          79          83          89
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-0700-0-1-751      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         696         718         714
---------------------------------------------------------------------------

                                

                     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, [$38,720,000] $42,361,000. (Department of Education Appropriations 
Act, 2002; additional authorizing legislation required.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Inspector General.................          37          40          42
                                           ---------   ---------  ----------
10.00   Total new obligations...........          37          40          42
----------------------------------------------------------------------------

[[Page 382]]



    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          37          40          42
23.95 Total new obligations.............         -37         -40         -42
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          37          40          42
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          10           9          10
73.10 Total new obligations.............          37          40          42
73.20 Total outlays (gross).............         -37         -39         -39
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....           9          10          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          31          33          34
86.93 Outlays from discretionary 
        balances........................           6           8           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          37          39          39
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          37          40          42
90.00 Outlays...........................          37          39          39
---------------------------------------------------------------------------

  Budget Authority and Outlays Excluding Full Funding for Federal Retiree 
                       Costs (in millions of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          36          39          41
90.00 Outlays...........................          36          38          38
---------------------------------------------------------------------------

    The Inspector General is responsible for the quality, coverage, and 
coordination of audit and investigation 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      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          17          20          21
11.3    Other than full-time permanent..           1           1           1
11.5    Other personnel compensation....           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          19          21          22
12.1  Civilian personnel benefits.......           6           6           6
21.0  Travel and transportation of 
        persons.........................           2           2           2
23.1  Rental payments to GSA............           2           3           3
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.1  Advisory and assistance services..           2           2           2
25.2  Other services....................           1           1           1
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           1           1           2
25.7  Operation and maintenance of 
        equipment.......................           2           2           2
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          37          40          42
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 91-1400-0-1-751      2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         275         285         285
---------------------------------------------------------------------------

                                

      


 
                      GENERAL FUND RECEIPT ACCOUNTS

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2001 actual   2002 est.   2003 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  91-274130  College housing and 
    academic facilities loan, downward 
    reestimates of subsidies............           2
  91-291500  Repayment of loans, capital 
    contributions, higher education 
    activities..........................          62          50          50
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................          64          50          50
---------------------------------------------------------------------------

                                

      


 
                           GENERAL PROVISIONS

    Sec. 301. 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. 302. 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. 303. No funds appropriated under this Act may be used to 
prevent the implementation of programs of voluntary prayer and 
meditation in the public schools.

                           (transfer of funds)

    Sec. 304. Not to exceed [1] 3 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended) which are appropriated for the Department of Education 
in this Act may be transferred between appropriations, but no such 
appropriation shall be increased by more than [3] 10 percent by any such 
transfer: Provided, That the Appropriations Committees of both Houses of 
Congress are notified at least 15 days in advance of any transfer.
    [Sec. 305. (a) Section 1543(a) of the Higher Education Amendments of 
1992 (20 U.S.C. 1070 note) is amended by striking paragraph (2) and 
inserting the following:
        ``(2) Award determination.--The amount of the financial 
    assistance provided to an athlete described in paragraph (1) shall 
    be determined in accordance with criteria, and in amounts, specified 
    in the application of the center under subsection (c). Such 
    assistance shall not exceed the athlete's cost of attendance as 
    determined under section 472 of the Higher Education Act of 1965 (20 
    U.S.C. 1087ll).
        ``(3) Information on distribution of assistance.--Each center 
    providing such assistance shall annually report to the Secretary 
    such information as the Secretary may reasonably require on the 
    distribution of such assistance among athletes and institutions of 
    higher education. The Secretary shall compile such reports and 
    submit them to the Committees on Education and the Workforce and 
    Appropriations of the House of Representatives and the Committees on 
    Health, Education, Labor, and Pensions and Appropriations of the 
    Senate.''.
    (b) The amendments made by subsection (a) shall apply with respect 
to any funds appropriated pursuant to section 1543(d) of the Higher 
Education Amendments of 1992, including funds appropriated pursuant to 
that section in fiscal years 2000 and 2001, that are

[[Page 383]]

available for financial assistance under section 1543 on or after the 
date of enactment of this Act.]
    [Sec. 306. (a) Notwithstanding sections 413D, 442, and 488 of the 
Higher Education Act of 1965, the Secretary of Education may reallocate, 
from funds made available under the heading ``Student Financial 
Assistance'' to carry out part C of title IV of that Act, excess 
allocations for fiscal year 2002 in an amount not to exceed $1,000,000 
in the aggregate to institutions of higher education described in 
subsection (b) for the purposes described in subsection (c). The 
reallocation to each such institution shall be made in accordance with 
subsection (d). Such excess allocations shall remain available for 
obligation until March 31, 2004.
    (b) An institution of higher education may receive a reallocation 
under subsection (a) if the institution--
        (1) is, on the date of enactment of this Act, participating in 
    the Federal Supplemental Educational Opportunity Grant and Federal 
    Work Study programs under subpart 3 of part A, and part C of title 
    IV of that Act, respectively;
        (2) initially began participating in both such programs during 
    or after 1989, but not later than 1999;
        (3) has a current enrollment of not less than 2,000 students;
        (4) provides educational programs for which the institution 
    awards baccalaureate and graduate degrees;
        (5) has experienced an actual enrollment increase of 75 percent 
    or more since the institution began participating in such programs; 
    and
        (6) charged, for academic year 2000-2001, in-State tuition and 
    fees for a full-time undergraduate student that were less than such 
    tuition and fees charged by the institution for academic year 1998-
    1999.
    (c) An institution of higher education that receives a reallocation 
under subsection (a) may use that reallocation for Federal Supplemental 
Educational Opportunity Grants or Federal Work Study awards.
    (d)(1) A reallocation made under subsection (a) to an institution 
described in subsection (b) shall be determined by calculating the 
difference between--
        (A) the amount (commonly referred to as the ``base guarantee'') 
    that the institution received under section 413D(a) or 442(a) of 
    that Act, as the case may be; and
        (B) the amount that the institution would receive pursuant to 
    section 413D(a)(2)(B)(ii) or 442(a)(2)(B)(ii) of that Act, as the 
    case may be, if the institution were beginning its program 
    participation in the 2002-2003 academic year.
    (2) If the amounts available for reallocation under subsection (a) 
are insufficient to fully fund the amounts determined under paragraph 
(1) of this subsection to each institution described in subsection (b), 
then the amount to be reallocated to each such institution shall be 
ratably reduced.
    (e) The Secretary may use such data as he determines appropriate in 
order to carry out this section.]
    [Sec. 307. If this Act is enacted before H.R. 1, the No Child Left 
Behind Act of 2001, is enacted, then references to the Elementary and 
Secondary Education Act of 1965 or to any other Acts that would be 
amended by H.R. 1 shall be read to be references to those Acts as they 
would be amended by H.R. 1 (including amendments made by H. Con. Res. 
289, as passed by the House and the Senate).]
    Sec. 305. (a) Discretionary Funding.--Section 458(a)(1) of the 
Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)), is amended--
        (1) in the matter preceding subparagraph (A), by striking 
    ``there shall be available to the Secretary, from funds not 
    otherwise appropriated, funds to be obligated for--'' and inserting 
    in lieu thereof, ``there are authorized to be appropriated to carry 
    out this section such sums as may be necessary, for--''; and
        (2) in the flush language at the end thereof,
            (A) by striking ``such'';
            (B) by inserting ``and'' after ``2001,'' and
            (C) by striking ``, and $795,000,000 in fiscal year 2003''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective beginning in fiscal year 2003.
    Sec. 306. Section 1202 of the Elementary and Secondary Education Act 
of 1965 is amended by inserting the following subsection at the end 
thereof:
    ``(g) Supplement, not Supplant.--State or local educational agency 
shall use funds received under this subpart only to supplement the level 
of non-Federal funds that, in the absence of funds under this subpart, 
would be expended for activities authorized under this subpart, and not 
to supplant those non-Federal funds.''. (Department of Education 
Appropriations Act, 2002.)
