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

                         THE BUDGET FOR FISCAL YEAR 2006

    [[Page 343]]

                             DEPARTMENT OF EDUCATION

                  OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

                                  Federal Funds

    General and special funds:

                         Education for the Disadvantaged

        For carrying out title I and part D of title V of the Elementary and
    Secondary Education Act of 1965 (``ESEA'') [and section 418A of the
    Higher Education Act of 1965, $14,963,683,000], $16,397,204,000, of
    which [$7,382,995,000] $8,677,136,000 shall become available on July 1,
    [2005] 2006, and shall remain available through September 30, [2006]
    2007, and of which $7,383,301,000 shall become available on October 1,
    [2005] 2006, and shall remain available through September 30, [2006]
    2007 for academic year [2005-2006, and of which $25,000,000 shall become
    available on October 1, 2004 and shall remain available until September
    30, 2006] 2006-2007: Provided, That [$7,037,592,000] $6,934,854,000
    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, [2004] 2005, to obtain annually
    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
    [$2,219,843,000] $2,822,581,000 shall be [available] for targeted grants
    under section 1125: Provided further, That $2,219,843,000 shall be
    [available] for education finance incentive grants under section 1125A:
    Provided further, That each State, as a condition of receiving funds
    under part A of title I of the ESEA for fiscal year 2006 or any fiscal
    year thereafter shall participate in biennial State academic assessments
    of 12th grade reading and mathematics under the National Assessment of
    Educational Progress carried out under section 303(b) of the National
    Assessment of Educational Progress Authorization Act, if the Secretary
    pays the costs of administering those assessments: Provided further,
    That [$25,000,000, available until September 30, 2006, shall be for a
    striving readers initiative authorized under section 1502 of the ESEA:
    Provided further, That $9,500,000] $9,424,000 shall be [available] to
    carry out part E of title I: [Provided further, That from the funds
    available to carry out part E of title I, up to $1,000,000 shall be
    available to the Secretary of Education to provide technical assistance
    to State and local educational agencies concerning part A of title I:]
    Provided further, That [$207,000,000 shall be available for
    comprehensive school reform grants under part F of the ESEA] $1,240,000
    shall be available under part D of title V, first for continuation
    awards for grants made under title IV, part A, subpart 2, chapter 2 and
    sections 402B and 402C of the Higher Education Act of 1965, and the
    remainder for formula grants to States to support competitive awards to
    local educational agencies to enable them to implement targeted
    interventions in high-need secondary schools: Provided further, That the
    Secretary may reserve a portion of such funds for research, evaluation,
    and technical assistance (Department of Education Appropriations Act,
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to local educational
            agencies........................      14,008      12,755      13,342
    00.02 Reading first State grants........       1,013       1,105       1,042
    00.03 Early reading first...............          94         104         104
    00.04 Striving readers..................                      25         200
    00.05 Even start........................         226         247
    00.06 Literacy through school libraries.          40          20          20
    00.07 High school intervention..........                               1,240
    00.08 State agency programs.............         447         447         440
    00.09 Comprehensive school reform.......         236         213
    00.10 Evaluation........................           9           9           9
    00.11 Migrant education projects........          35          34
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      16,108      14,959      16,397
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,376         115
    22.00 New budget authority (gross)......      13,846      14,844      16,397
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      16,223      14,959      16,397
    23.95 Total new obligations.............     -16,108     -14,959     -16,397
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         115
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       7,145       7,581       9,014
    40.35   Appropriation permanently
              reduced.......................         -82        -120
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       7,063       7,461       9,014
    55.00   Advance appropriation...........       9,027       7,383       7,383
    55.35   Advance appropriation
              permanently reduced...........      -2,244
                                               ---------   ---------  ----------
    55.90     Advance appropriation (total
                discretionary)..............       6,783       7,383       7,383
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      13,846      14,844      16,397
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       7,289      10,896      11,218
    73.10 Total new obligations.............      16,108      14,959      16,397
    73.20 Total outlays (gross).............     -12,486     -14,637     -14,822
    73.40 Adjustments in expired accounts
            (net)...........................         -14
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..      10,896      11,218      12,793
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       4,607       6,648       6,726
    86.93 Outlays from discretionary
            balances........................       7,879       7,989       8,096
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      12,486      14,637      14,822
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      13,846      14,844      16,397
    90.00 Outlays...........................      12,486      14,637      14,822
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................      13,846      14,844      16,397
      Outlays...........................      12,486      14,637      14,822
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  34
      Outlays...........................                                   2
                                        ------------------------------------
    Total:
      Budget Authority..................      13,846      14,844      16,431
      Outlays...........................      12,486      14,637      14,824
                                        ====================================

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         2004-2005
                                          academic
                                            year      2005-2006
                                                    academic year 2006-2007
                                                                academic year
    New Budget Authority................       7,063       7,461       9,048
    Advance appropriation...............       7,383       7,383       7,383
                                        ------------------------------------
          Total program level...........      14,446      14,844      16,431
                                        ====================================
    Change in advance appropriation from
    the previous year...................        +600

        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 schools or, in the case of schoolwide programs,
    help all stu

    [[Page 344]]

    dents in high-poverty schools to meet challenging State academic
    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 do not make adequate yearly progress toward helping all groups of
    students reach the proficient level on the State assessments. Districts
    must provide students attending such schools the choice of attending
    another public school that is not identified for improvement. After
    three or more years of a school not making adequate progress, students
    who remain in the school are permitted to obtain supplemental
    educational services from a public- or private-sector provider. Schools
    that do not improve are subject to progressively stronger corrective
    actions and, after six years of not making adequate yearly progress,
    reconstitution under a restructuring plan.

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

        Striving readers.--Funds support the development, implementation,
    and evaluation of scientifically based reading interventions for middle
    school or high school students reading significantly below grade level.
    The program complements the Reading First program, which improves
    reading in elementary schools.

        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 certified professional
    library media specialists.

        High School Interventions.--This new initiative would support
    formula grants to States that wold in turn award the funds competitively
    to local educational agencies to enable those entities to implement
    targeted interventions in high-need secondary schools in order to
    increase student achievement and narrow achievement gaps between
    students from different ethnic and racial groups and between
    disadvantaged students and their more advantaged peers.

        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.

        Evaluation.--Funds support a series of impact studies designed to
    identify effective reading interventions in Title I and studies of the
    implementation of key No Child Left Behind requirements including
    assessments, accountability systems, school improvement requirements,
    public school choice, and supplemental educational services.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    24.0  Printing and reproduction.........           1           1           1
    25.1  Advisory and assistance services..          13          11          13
    25.2  Other services....................          45          42          46
    25.3  Other purchases of goods and
            services from Government
            accounts........................           5           5           5
    41.0  Grants, subsidies, and
            contributions...................      16,044      14,900      16,332
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      16,108      14,959      16,397
    ---------------------------------------------------------------------------

                         Education for the Disadvantaged

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-2-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.11 Migrant education projects........                                  34
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  34
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                  34
    73.20 Total outlays (gross).............                                  -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  32
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                  34
    90.00 Outlays...........................                                   2
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize programs currently
    authorized under the Higher Education Act.

        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.

                                   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, [$1,253,893,000] $1,240,862,000, of
    which [$1,083,687,000] $1,075,018,000 shall be for basic support
    payments under section 8003(b), [$50,369,000] $49,966,000 shall be for
    payments for children with disabilities under section 8003(d),
    [$48,936,000] $45,544,000 shall be for construction under section 8007
    and shall remain available through September 30, [2006, $63,000,000]
    2007, $62,496,000 shall be for Federal property payments under section
    8002, and [$7,901,000] $7,838,000, 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: Provided
    further, That, notwithstanding any other provision of law, these funds
    shall remain available until expended: Provided further, That] for
    purposes of computing the amount of a payment for an eligible local
    educational agency under section 8003(a) of the Elementary and Secondary
    Education Act (20 U.S.C. 7703(a)) for school year [2004-2005] 2005-2006,
    children enrolled in a school of such agency that would other

    [[Page 345]]

    wise be eligible for payment under section 8003(a)(1)(B) of such Act,
    but due to the deployment of both parents or legal guardians, or a
    parent or legal guardian having sole custody of such children, or due to
    the death of a military parent or legal guardian while on active duty
    (so long as such children reside on Federal property as described in
    section 8003(a)(1)(B)), are no longer eligible under such section, shall
    be considered as eligible students under such section, provided such
    students remain in average daily attendance at a school in the same
    local educational agency they attended prior to their change in
    eligibility status. (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Payments for federally connected children:

    00.01   Basic support payments..........       1,063       1,075       1,075
    00.02   Supplemental payments for
              children with disabilities....          50          50          50
                                               ---------   ---------  ----------
    00.91   Subtotal, payments for federally
              connected children............       1,113       1,125       1,125
    01.01 Facilities maintenance............           7           8           8
    02.01 Construction......................          46          48          46
    03.01 Payments for Federal property.....          62          62          62
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,228       1,243       1,241
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          35          37          38
    22.00 New budget authority (gross)......       1,230       1,244       1,241
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,265       1,281       1,279
    23.95 Total new obligations.............      -1,228      -1,243      -1,241
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          37          38          38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,237       1,254       1,241
    40.35   Appropriation permanently
              reduced.......................          -7         -10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,230       1,244       1,241
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         293         281         194
    73.10 Total new obligations.............       1,228       1,243       1,241
    73.20 Total outlays (gross).............      -1,239      -1,330      -1,264
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         281         194         171
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,075       1,090       1,089
    86.93 Outlays from discretionary
            balances........................         164         240         175
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,239       1,330       1,264
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,230       1,244       1,241
    90.00 Outlays...........................       1,239       1,330       1,264
    ---------------------------------------------------------------------------

        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 and 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 1.0 million federally connected students enrolled in about
    1,250 local educational agencies to assist them in meeting their
    operation and maintenance costs. Average per-student payments will be
    approximately $1,036.

        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 57,000 federally connected
    students with disabilities in about 860 local educational agencies.
    Average per-student payments will be approximately $881.

        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
    180 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 will be made to
    approximately 200 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           2           2
    41.0  Grants, subsidies, and
            contributions...................       1,226       1,241       1,239
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,228       1,243       1,241
    ---------------------------------------------------------------------------

                           School Improvement Programs

        For carrying out school improvement activities authorized by
    [titles] section 1502 of part E of title I, title II, part B of title
    IV, part A [and subparts 6 and 9 of part D] of title V, parts A and B of
    title VI, and parts B and C of title VII of the Elementary and Secondary
    Education Act of 1965 (``ESEA''); the McKinney-Vento Homeless Assistance
    Act; section 203 of the Educational Technical Assistance Act of 2002;
    the Compact of Free Association Amendments Act of 2003; and the Civil
    Rights Act of 1964, [$5,664,977,000] $5,332,219,000, of which
    [$4,034,196,000] $3,736,482,000 shall become available on July 1, [2005]
    2006, and remain available through September 30, [2006] 2007, and of
    which $1,435,000,000 shall become available on October 1, [2005] 2006,
    and shall remain available through September 30, [2006] 2007, for
    academic year [2005-2006] 2006-2007: Provided, That [funds made
    available to carry out part B of title VII of the ESEA may be used for
    construction, renovation and modernization of any elementary school,
    secondary school, or structure related to an elementary school or
    secondary school, run by the Department of Education of the State of
    Hawaii, that serves a predominantly Native Hawaiian student body:
    Provided further, That from the funds referred to in the preceding
    proviso, not less than $1,000,000 shall be for a grant to the Department
    of Education of the State of Hawaii for the activities described in such
    proviso, and $600,000 shall be for a grant to the University of Hawaii
    School of Law for a Center of Excellence in Native Hawaiian law:
    Provided further, That funds made available to carry out part C of title
    VII of the ESEA may be used for construction: Provided further, That
    from the funds referred to in the preceding proviso, $2,000,000 shall be
    provided to the Yuut Elitnaurviut Vocational Learning Center in Bethel,
    Alaska for construction; $1,000,000 shall be provided to the University
    of Alaska Anchorage for high school enrichment programs of the UAA
    Native Science and Engineering program; and notwithstanding any other
    provision of law, of the funds available to the Alaska Native Heritage
    Center, up to $1,000,000 may be used for repair and renovation of
    buildings on its campus: Provided further, That $415,000,000]
    $411,680,000 shall be for State assessments and related activities
    authorized under sections 6111 and 6112 of the ESEA: Provided further,
    That [the amount made available in the Department of Education
    Appropriations Act, 2004, under the heading School Improvement Programs
    and including any funds transferred by the Secretary of Education
    pursuant to section 304 of that Act for State assessment grants
    authorized under section 6111 of the Elementary and Secondary Education
    Act of 1965, shall not be less than $390,000,000: Provided further,
    That, notwithstanding any

    [[Page 346]]

    other provision of law, including any across-the-board reduction that
    would otherwise apply, the funds made available for fiscal year 2005
    under the heading School Improvement Programs for State assessment
    grants under section 6111 of the Elementary and Secondary Education Act
    of 1965 shall not be less than $400,000,000: Provided further, That
    $57,283,000] $56,825,000 shall be available to carry out section 203 of
    the Educational Technical Assistance Act of 2002: Provided further, That
    [$29,111,000 shall be available to carry out part D of title V of the
    ESEA: Provided further, That no funds appropriated under this heading
    may be used to carry out section 5494 under the ESEA: Provided further,
    That $12,230,000] $18,183,000 shall be available to carry out the
    Supplemental Education Grants program for the Federated States of
    Micronesia[,] and [$6,100,000 shall be available to carry out the
    Supplemental Education Grants program] for the Republic of the Marshall
    Islands: Provided further, That up to 5 percent of these amounts may be
    reserved by the Federated States of Micronesia and the Republic of the
    Marshall Islands to administer the Supplemental Education Grants
    programs and to obtain technical assistance, oversight and consultancy
    services in the administration of these grants and to reimburse the
    United States Departments of Labor, Health and Human Services, and
    Education for such services: Provided further, That notwithstanding
    section 2202(a)(2) of the ESEA, $120,000,000 of the funds for part B of
    title II of the ESEA shall be for competitive grants that are designed
    to improve the achievement of secondary school students in mathematics,
    of which up to $1,000,000 may be used for technical assistance and
    evaluation: Provided further, That $250,000,000 shall be available under
    section 1502 of the ESEA for grants to States to develop additional
    reading/language arts and mathematics assessments for secondary school
    students: Provided further, That each State receiving assistance under
    part A of title I of the ESEA for the fiscal year 2006 or any fiscal
    year thereafter shall develop such assessments and shall incorporate
    them into the assessment system that it administers under section
    111(b)(3) of the ESEA, under such conditions as the Secretary may
    establish (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Improving teacher quality:

    00.01   Improving teacher quality State
              grants........................       2,655       2,935       2,916
    00.02   Early childhood educator
              professional development......          15          15          15
    00.03   Mathematics and science
              partnerships..................         150         180         269
    00.04 Educational technology State
            grants..........................         692         511
    00.05 21st Century community learning
            centers.........................       1,005       1,002         991
    00.06 State grants for innovative
            programs........................         582         199         100
    00.07 Javits gifted and talented
            education.......................          11          11
    00.08 Foreign language assistance.......          17          18
    00.09 State assessments.................         396         412         412
    00.10 High school assessments...........                                 250
    00.11 Education for homeless children
            and youth.......................          60          63          62
    00.12 Education for Native Hawaiians....          33          34          33
    00.13 Alaska Native education equity....          33          34          31
    00.14 Training and advisory services....           7           7           7
    00.15 Rural education...................         168         171         171
    00.16 Supplemental education grants.....                      18          18
    00.17 Comprehensive centers.............                      57          57
    00.18 Troops-to-teachers................          11
    00.19 Smaller learning communities......         135
    00.20 Comprehensive school reform.......           1
    00.21 Safe and drug-free schools and
            communities State grants........         336
    00.22 Safe and drug-free schools and
            communities national programs...                      14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       6,307       5,681       5,332
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         263          61
    22.00 New budget authority (gross)......       6,131       5,620       5,332
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       6,395       5,681       5,332
    23.95 Total new obligations.............      -6,307      -5,681      -5,332
    23.98 Unobligated balance expiring or
            withdrawn.......................         -27
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          61
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,399       4,230       3,897
    40.35   Appropriation permanently
              reduced.......................         -34         -45
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,366       4,185       3,897
    55.00   Advance appropriation...........       1,765       1,435       1,435
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       6,131       5,620       5,332
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       9,581       8,641       7,233
    73.10 Total new obligations.............       6,307       5,681       5,332
    73.20 Total outlays (gross).............      -7,283      -7,089      -5,952
    73.40 Adjustments in expired accounts
            (net)...........................         -27
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          63
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       8,641       7,233       6,613
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         913         973         968
    86.93 Outlays from discretionary
            balances........................       6,370       6,116       4,984
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,283       7,089       5,952
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -63          -3
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          63           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       6,131       5,620       5,332
    90.00 Outlays...........................       7,219       7,086       5,952
    ---------------------------------------------------------------------------

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         2004-2005
                                          Academic
                                            Year      2005-2006
                                                    Academic Year 2006-2007
                                                                Academic Year
    New Budget Authority................       4,365       4,185       3,897
    Advance Appropriation...............       1,435       1,435       1,435
                                        ------------------------------------
          Total program level...........       5,800       5,620       5,332
                                        ====================================
    Change in advance appropriation over
    previous year.......................           0           0           0

        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.
                Early childhood educator professional development.--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.

        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.

        State grants for innovative programs.--Funds support formula grants
    to States and local educational agencies to help

    [[Page 347]]

    implement innovative strategies for improving student achievement.

        State assessments.--Funds support formula grants to States to
    develop and implement the assessments, and related accountability
    efforts, that States use to test children in reading, mathematics, and
    science.

        High school assessments.--Funds would support formula grants to
    States for the development of reading/language arts and mathematics
    assessments for high school students.

        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 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.

        Rural education.--Funds support formula grants under two programs:
    Small, Rural Schools Achievement and Rural and Low-Income Schools. Funds
    under the Small, Rural Schools Achievement program, which provides rural
    local educational agencies with small enrollments with additional
    formula funds and flexibility in the use of other Federal formula funds,
    are allocated by formula directly from the Department to eligible local
    educational agencies. Funds under the Rural and Low-Income Schools
    program, which targets rural local educational agencies that serve
    concentrations of poor students, are allocated by formula to States, who
    in turn allocate funds to eligible local educational agencies within the
    States.

        Supplemental education grants.--Funds support grants to the
    Federated States of Micronesia and to the Republic of the Marshall
    Islands in place of grant programs discontinued by the Compact of Free
    Association Amendments Act of 2003.

        Comprehensive centers.--Funds support no fewer than 20 comprehensive
    centers, with at least one center in each of 10 geographic regions, to
    provide technical assistance, training, and professional development in
    reading, mathematics, science, and technology to States, districts, and
    schools.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           7           7           7
    25.2  Other services....................          27          27          27
    25.3  Other purchases of goods and
            services from Government
            accounts........................           7           7           7
    25.5  Research and development contracts           9           9           9
    41.0  Grants, subsidies, and
            contributions...................       6,257       5,631       5,282
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       6,307       5,681       5,332
    ---------------------------------------------------------------------------

                               Reading Excellence

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0011-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         226          67
    73.20 Total outlays (gross).............        -159         -67
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          67
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         159          67
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         159          67
    ---------------------------------------------------------------------------

        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.

                                Education Reform

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0500-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         226         120
    73.20 Total outlays (gross).............         -75        -120
    73.40 Adjustments in expired accounts
            (net)...........................         -31
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         120
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          75         120
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          75         120
    ---------------------------------------------------------------------------

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

                          Chicago Litigation Settlement

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0220-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

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

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

    [[Page 348]]

                           OFFICE OF INDIAN EDUCATION

                                  Federal Funds

    General and special funds:

                                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, [$120,856,000] $119,889,000. (Department of Education
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0101-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to local educational
            agencies........................          96          95          96
    00.02 Special programs for Indian
            children........................          20          20          20
    00.03 National activities...............           5           5           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         121         120         120
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         121         120         120
    23.95 Total new obligations.............        -121        -120        -120
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         122         121         120
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         121         120         120
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         147         151         141
    73.10 Total new obligations.............         121         120         120
    73.20 Total outlays (gross).............        -114        -130        -120
    73.40 Adjustments in expired accounts
            (net)...........................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         151         141         141
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           6           6
    86.93 Outlays from discretionary
            balances........................         112         124         114
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         114         130         120
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         121         120         120
    90.00 Outlays...........................         114         130         120
    ---------------------------------------------------------------------------

        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 2004, the Department made
    1,166 formula grants to local educational agencies and tribal schools
    serving more than 458,000 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           5           5           4
    41.0  Grants, subsidies, and
            contributions...................         116         115         116
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         121         120         120
    ---------------------------------------------------------------------------

                      OFFICE OF INNOVATION AND IMPROVEMENT

                                  Federal Funds

    General and special funds:

                           Innovation and Improvement

        For carrying out activities authorized by [parts] part G [and H] of
    title I, subpart 5 of part A and parts C and D of title II, and parts B,
    C, and D of title V[, and section 1504] of the Elementary and Secondary
    Education Act of 1965 (``ESEA''), [$1,101,454,000] $1,307,871,000:
    Provided, That [$17,000,000 shall be available to carry out section
    2151(c) of the ESEA, of which not less than $10,000,000 shall be
    provided to the National Board for Professional Teaching Standards, and
    not less than $7,000,000 shall be provided to the American Board for the
    Certification of Teacher Excellence] from funds for subpart 4, part C of
    title II, up to 3 percent shall be available to the Secretary for
    technical assistance and dissemination of information: Provided further,
    That [$37,279,000] $36,981,000 shall be for subpart 2 of part B of title
    V: Provided further, That [$417,418,000] $656,296,000 shall be available
    to carry out part D of title V of the ESEA[: Provided further, That
    $246,963,000 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], of which $500,000,000 of the funds for subpart 1 shall become
    available on July 1, 2006 and remain available through September 30,
    2007, and shall be for grants to States and local educational agencies
    to provide financial incentives for teachers and schools that raise
    student achievement, for teachers who teach in low-income schools, and
    to develop performance-based teacher compensation systems. (Department
    of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0204-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Recruiting and training high quality teachers
              and principals:

    00.01   Teacher incentive fund..........                                 500
    00.02   Troops-to-teachers..............          15          15          15
    00.03   Transition to teaching..........          45          45          45
    00.04   National writing project........          18          20
    00.05   Teaching American history.......         119         119         119
    00.06   School leadership...............          12          15
    00.07   Advanced credentialing..........          18          17           8
          School choice and flexibility:

    00.08   Charter schools grants..........         219         217         219
    00.09   Credit enhancement for charter
              school facilities.............          37          37          37
    00.10   Voluntary public school choice..          27          27          27
    00.11   Magnet schools assistance.......         109         108         108
    00.12   Choice incentive fund...........                                  50
    00.13 Advanced placement................          24          30          51
    00.14 School dropout prevention.........           5           5
    00.15 Close Up fellowships..............           1           1
    00.16 Ready to learn television.........          23          23          23
    00.17 FIE programs of national
            significance....................         281         257          29
    00.18 Adjunct teacher corps initiative..                                  40
    00.19 State scholars capacity building..                                  12
    00.20 Reading is fundamental/Inexpensive
            book distribution...............          25          25          25
    00.21 Star schools......................          20          21
    00.22 Ready to teach....................          14          14
    00.23 Exchanges with historic whaling
            and trading partners............           8           9
    00.24 Excellence in economic education..           1           1
    00.25 Mental health integration in
            schools.........................                       5
    00.26 Foundations for learning..........                       1
    00.27 Arts in education.................          35          36
    00.28 Parental information and resource
            centers.........................          42          42
    00.29 Womens educational equity.........           3           3
                                               ---------   ---------  ----------
    01.00   Total direct program............       1,101       1,093       1,308
    09.01 DC School Choice..................          14          14          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,115       1,107       1,322
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1

    [[Page 349]]

    22.00 New budget authority (gross)......       1,116       1,106       1,322
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,116       1,107       1,322
    23.95 Total new obligations.............      -1,115      -1,107      -1,322
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,110       1,101       1,308
    40.35   Appropriation permanently
              reduced.......................          -7          -9
    41.00   Transferred to other accounts...          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,102       1,092       1,308
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          14          14          14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,116       1,106       1,322
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                   1,041       1,380
    73.10 Total new obligations.............       1,115       1,107       1,322
    73.20 Total outlays (gross).............         -74        -768      -1,059
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,041       1,380       1,643
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          74          56          66
    86.93 Outlays from discretionary
            balances........................                     712         993
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          74         768       1,059
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       1,102       1,092       1,308
    90.00 Outlays...........................          60         754       1,045
    ---------------------------------------------------------------------------

        Recruiting and training high quality teachers and principals.--
            Teacher incentive fund.--Funds will reward teachers and schools
        that are raising student achievement and closing the achievement
        gap, provide incentives for effective teachers who choose to teach
        in low-income schools, and provide funds for the development of
        performance-based teacher compensation systems.
            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 American history.--Funds support competitive grants to
        school districts for activities to improve history instruction and
        provide professional development for teachers of American history.
            Advanced credentialing.--Funds support the development of an
        advanced credential based on the content expertise of master
        teachers. Funds also support related activities to encourage and
        support teachers seeking advanced certification or advanced
        credentials.

        School choice and flexibility.--
            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.
        Funds above $200 million are used for the Per-Pupil Facilities Aid
        program, which provides funds to States to assist charter schools in
        obtaining facilities.
            Voluntary public school choice.--Funds support competitive
        grants to State educational agencies and 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 incentive fund.--Funds will support grants to States,
        local educational agencies, and community-based nonprofit
        organizations with a proven record for securing educational
        opportunities for children. These grants will support efforts to
        increase the capacity of high-quality public and private schools to
        serve additional students.

        Advanced placement.--Funds support 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, and national nonprofit educational entities to
    expand access for low-income individuals to Advanced Placement classes.

        Ready-to-learn television.--Funds support the development,
    distribution, and production of educational video and accompanying
    materials and services for preschool children, elementary school
    children, and their parents to facilitate student academic achievement.

        FIE programs of national significance.--Funds support nationally
    significant projects to improve the quality of elementary and secondary
    education in order to help all children meet challenging State content
    and student achievement standards.

        Adjunct teacher corps.--Funds will support partnerships between
    school districts and appropriate public and/or private institutions to
    enable well-qualified professionals to teach specific high-school
    courses in the core academic subjects, particularly in mathematics and
    science.

        State scholars capacity building.--Funds will support business and
    education partnerships in every State to encourage high school students
    to complete a rigoroous curriculum in the core academic subjects.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0204-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           2           2           2
    25.2    Other services..................          32          32          38
    25.3    Other purchases of goods and
              services from Government
              accounts......................          16          16          19
    25.5    Research and development
              contracts.....................           5           1
    41.0    Grants, subsidies, and
              contributions.................       1,046       1,042       1,249
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,101       1,093       1,308
    99.0  Reimbursable obligations..........          14          14          14
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,115       1,107       1,322
    ---------------------------------------------------------------------------

                      OFFICE OF SAFE AND DRUG-FREE SCHOOLS

                                  Federal Funds

    General and special funds:

                     Safe Schools and Citizenship Education

        For carrying out activities authorized by [subpart 3 of part C of
    title II,] part A of title IV[,] and subparts [2,] 3 and 10 of part D of
    title V of the Elementary and Secondary Education Act of 1965
    (``ESEA''), [title VIII-D of the Higher Education Amendments

    [[Page 350]]

    of 1998, and Public Law 102-73, $867,713,000, of which $467,908,000,
    shall become available on July 1, 2005 and remain available through
    September 30, 2006: Provided, That of the amount available for subpart 2
    of part A of title IV of the ESEA, $850,000 shall be used to continue
    the National Recognition Awards program under the same guidelines
    outlined by section 120(f) of Public Law 105-244] $396,767,000: Provided
    [further], That [$440,908,000 shall be available for subpart 1 of part A
    of title IV and $236,472,000] $317,274,000 shall be available for
    subpart 2 of part A of title IV, of which $5,000,000, 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
    [$133,691,000] $79,493,000 shall be available to carry out part D of
    title V of the ESEA[: Provided further, That of the funds available to
    carry out subpart 3 of part C of title II, up to $12,292,000 may be used
    to carry out section 2345 and $3,050,000 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 $27,000,000 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
    enactment of Public Law 105-220: Provided further, That of the funds
    available to carry out subpart 10 of part D of title V, up to $2,000,000
    may be used to support the Special Olympics National Summer Games].
    (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0203-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Safe and drug-free schools and communities:

    00.01   State grants....................         437         441
            National programs:
    00.02     Alcohol abuse reduction.......          30          33
    00.03     Mentoring program.............          50          49          49
    00.04     Other national programs.......         154         153         269
                                               ---------   ---------  ----------
    00.91   Subtotal, Safe and drug-free
              schools and communities.......         671         676         318
    01.01 Character education...............          25          24          24
    02.01 Elementary and secondary school
            counseling......................          34          35
    03.01 Physical education program........          69          73          55
    04.01 Civic education...................          28          29
    05.01 State grants for incarcerated
            youth offenders.................          20          22
    06.01 Literacy program for prisoners....                      10
    09.00 Reimbursable program..............          68
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         916         869         397
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       8
    22.00 New budget authority (gross)......         924         861         397
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         924         869         397
    23.95 Total new obligations.............        -916        -869        -397
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         863         868         397
    40.35   Appropriation permanently
              reduced.......................          -7          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         856         861         397
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                      68
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          68         -68
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          68
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         924         861         397
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                     827       1,212
    73.10 Total new obligations.............         916         869         397
    73.20 Total outlays (gross).............         -21        -552        -784
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -68          68
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         827       1,212         825
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          21          17           8
    86.93 Outlays from discretionary
            balances........................                     535         776
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          21         552         784
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                     -68
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -68          68
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         856         861         397
    90.00 Outlays...........................          21         484         784
    ---------------------------------------------------------------------------

        Safe and drug-free schools and communities.--
            Mentoring program.--Funds provide grants to local educational
        agencies and community-based organizations for mentoring programs
        serving at-risk youth.
            Other national programs.--Funds support the drug testing
        initiative and other national activities to prevent violence and the
        illegal use of drugs among, and to promote safety and discipline
        for, students.

        Character education.--Funds provide grants to support the design and
    implementation of character education programs in the Nation's
    elementary and secondary schools.

        Physical education program.--Funds provide grants to local
    educational agencies and community-based organizations to initiate,
    expand, or improve physical education programs for students.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0203-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    24.0    Printing and reproduction.......                       1           1
    25.1    Advisory and assistance services           1           2           2
    25.2    Other services..................          13          14          15
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           2           2
    25.5    Research and development
              contracts.....................           2
    41.0    Grants, subsidies, and
              contributions.................         830         850         377
                                               ---------   ---------  ----------
    99.0      Direct obligations............         848         869         397
    99.0  Reimbursable obligations..........          68
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         916         869         397
    ---------------------------------------------------------------------------

                     OFFICE OF ENGLISH LANGUAGE ACQUISITION

                                  Federal Funds

    General and special funds:

                          English Language Acquisition

        For carrying out part A of title III of the ESEA, [$681,215,000, of
    which $595,715,000] $675,765,000, which shall become available on July
    1, [2005] 2006, and shall remain available through September 30, [2006:
    Provided, That funds reserved under section 3111(c)(1)(D) of the ESEA
    that are not used in accordance with section 3111(c)(2) may be added to
    the funds that are available July 1, 2005, through September 30, 2006,
    for State allotments under section 3111(c)(3)] 2007, except that 6.5
    percent of such amount shall be available on October 1, 2005 and shall
    remain available through September 30, 2007, to carry out activities
    under section 3111(c)(1)(C). (Department of Education Appropriations
    Act, 2005.)

    [[Page 351]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Language acquisition State grants.         685         683         676
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         685         683         676
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11           7
    22.00 New budget authority (gross)......         681         676         676
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         692         683         676
    23.95 Total new obligations.............        -685        -683        -676
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         685         681         676
    40.35   Appropriation permanently
              reduced.......................          -4          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         681         676         676
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         938         965         808
    73.10 Total new obligations.............         685         683         676
    73.20 Total outlays (gross).............        -645        -840        -624
    73.40 Adjustments in expired accounts
            (net)...........................         -14
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         965         808         860
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5          34          34
    86.93 Outlays from discretionary
            balances........................         640         806         590
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         645         840         624
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         681         676         676
    90.00 Outlays...........................         645         840         624
    ---------------------------------------------------------------------------

        Language acquisition State grants.--This program provides formula
    grants to States 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. The statute also
    authorizes national activities including professional development and
    evaluation, and requires funding for a national information
    clearinghouse on English language acquisition.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.5  Research and development contracts           2           2           2
    41.0  Grants, subsidies, and
            contributions...................         683         681         674
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         685         683         676
    ---------------------------------------------------------------------------

             OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

                                  Federal Funds

    General and special funds:

                                Special Education

        For carrying out [parts B, C, and D of] the Individuals with
    Disabilities Education Act, [$11,767,748,000] $12,126,130,000, of which
    [$6,145,270,000] $5,719,151,000 shall become available [for obligation]
    on July 1, [2005] 2006, and shall remain available through September 30,
    [2006] 2007, and of which [$5,413,000,000] $6,204,000,000 shall become
    available on October 1, [2005] 2006, and shall remain available through
    September 30, [2006] 2007, for academic year [2005-2006] 2006-2007:
    Provided, [That $11,400,000 shall be for Recording for the Blind and
    Dyslexic, Inc., 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 (as in effect prior to the enactment of
    the Individuals with Disabilities Education Improvement Act of 2004) to
    provide information on diagnosis, intervention, and teaching strategies
    for children with disabilities: Provided further,] That the amount for
    section [611(c)] 611(b)(2) of the Act shall be equal to the amount
    available for that [section] activity during fiscal year [2004] 2005,
    increased by the amount of inflation as specified in section
    [611(f)(1)(B)(ii)] 619(d)(2)(B) of the Act [(as in effect prior to the
    enactment of the Individuals with Disabilities Education Improvement Act
    of 2004)]. (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          State grants:

    00.01   Grants to States................      10,351      10,611      10,306
    00.02   Preschool grants................         391         384         385
    00.03   Grants for infants and families.         469         458         441
                                               ---------   ---------  ----------
    00.91     Subtotal, State grants........      11,211      11,453      11,132
          National activities:

    01.01   State personnel development.....          45         102
    01.02   Research and innovation.........          77
    01.03   Technical assistance and
              dissemination.................          53          52          49
    01.04   Personnel preparation...........          91          91          91
    01.05   Parent information centers......          26          26          26
    01.06   Technology and media services...          39          39          32
    01.07   Transition initiative...........                                   5
                                               ---------   ---------  ----------
    01.91     Subtotal, National activities.         331         310         203
                                               ---------   ---------  ----------
    02.00   Total Direct Program............      11,542      11,763      11,335
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      11,543      11,763      11,335
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         135          89
    22.00 New budget authority (gross)......      11,498      11,674      11,335
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      11,633      11,763      11,335
    23.95 Total new obligations.............     -11,543     -11,763     -11,335
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          89
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       5,894       6,355       5,922
    40.35   Appropriation permanently
              reduced.......................         -68         -94
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       5,826       6,261       5,922
    55.00   Advance appropriation...........       5,672       5,413       5,413
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      11,498      11,674      11,335
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       7,019       8,794      10,331
    73.10 Total new obligations.............      11,543      11,763      11,335
    73.20 Total outlays (gross).............      -9,750     -10,226     -11,345
    73.40 Adjustments in expired accounts
            (net)...........................         -18
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       8,794      10,331      10,321
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,598       3,751       3,761
    86.93 Outlays from discretionary
            balances........................       6,152       6,475       7,584
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       9,750      10,226      11,345
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      11,498      11,674      11,335

    [[Page 352]]

    90.00 Outlays...........................       9,749      10,226      11,345
    ---------------------------------------------------------------------------

                    SUMMARY OF GRANTS TO STATES PROGRAM LEVEL

                            [In millions of dollars]

                                         2004-2005
                                          academic
                                            year      2005-2006
                                                    academic year 2006-2007
                                                                academic year
    Current Budget Authority............      $4,655      $5,177      $4,894
    Advance appropriation...............       5,413       5,413       6,204
                                        ------------------------------------
        Total program level.............      10,068      10,590      11,098
                                        ====================================
    Change in advance appropriation from
    the previous year...................        -259                    +791

        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.
            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 personnel preparation, technical
        assistance, 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. The request
        includes funds for a new Transition Initiative to help States use
        data and research-based practices to improve post-school outcomes.
            Performance data related to program goals include:

                                        2000-2001 ac2001-2002 actual  2002-2003
                                                                          actual
        Status of Exiting Students
    Percent of students with disabilities
        aged 14-21 leaving school:
      Graduated with a diploma..............        47.6        51.1        51.9
      Graduated through certification.......         9.2         9.5        12.7
      Dropped out of school/not known to
        continue............................        41.1        37.6        33.6
      Reached maximum age for services/other         2.1         1.8         1.8

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.2    Other services..................          30          27          14
    41.0    Grants, subsidies, and
              contributions.................      11,512      11,736      11,321
                                               ---------   ---------  ----------
    99.0      Direct obligations............      11,542      11,763      11,335
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      11,543      11,763      11,335
    ---------------------------------------------------------------------------

                 Rehabilitation Services and Disability Research

        For carrying out, to the extent not otherwise provided, the
    Rehabilitation Act of 1973, section 4(b)(2)(D) of the Assistive
    Technology Act of 1998 (``the AT Act''), and the Helen Keller National
    Center Act, [$3,076,112,000] $3,059,298,000, of which [$1,000,000 shall
    be awarded to the American Academy of Orthotists and Prosthetists for
    activities that further the purposes of the grant received by the
    Academy for the period beginning October 1, 2003, including activities
    to meet the demand for orthotic and prosthetic provider services and
    improve patient care: Provided, That $30,000,000 shall be used for
    carrying out the AT Act, including $4,420,760 for State grants for
    protection and advocacy under section 5 of the AT Act and $4,055,000]
    $15,000,000 shall be for alternative financing programs under section
    4(b)(2)(D) of the AT Act: Provided further, That the Federal share of
    grants for alternative financing programs [under section 4(b)(2)(D) of
    the AT Act] shall not exceed 75 percent, and the requirements in section
    301(c)(2) and section 302 of the AT Act (as in effect on the day before
    the date of enactment of the Assistive Technology Act of 2004) shall not
    apply to such grants[: Provided further, That $7,030,000 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 of the conference report accompanying this Act]. (Department of
    Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0301-0-1-506      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Vocational rehabilitation State
              grants........................       2,584       2,636       2,720
    00.02   Client assistance State grants..          12          12          12
    00.03   Training........................          39          39          39
    00.04   Demonstration and training
              programs......................          24          26           6
    00.05   Migrant and seasonal farmworkers           2           2
    00.06   Recreational programs...........           2           2
    00.07   Protection and advocacy of
              individual rights.............          17          17          17
    00.08   Projects with industry..........          22          22
    00.09   Supported employment State
              grants........................          38          37
    00.10   Independent living..............         127         131         131
    00.11   Program improvement.............           1           1           1
    00.12   Evaluation......................           1           1           1
    00.13   Helen Keller National Center....           9          10           9
    00.14   National Institute on Disability
              and Rehabilitation Research...         107         108         108
    00.15   Assistive technology............          26          30          15
                                               ---------   ---------  ----------
    01.00   Total direct program............       3,011       3,074       3,059
    09.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,013       3,076       3,061
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       3,013       3,076       3,061
    23.95 Total new obligations.............      -3,013      -3,076      -3,061
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         430         442         339
    40.35   Appropriation permanently
              reduced.......................          -3          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         427         438         339
          Mandatory:

    60.00   Appropriation...................       2,584       2,636       2,720
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,013       3,076       3,061
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,193       1,302       1,027
    73.10 Total new obligations.............       3,013       3,076       3,061
    73.20 Total outlays (gross).............      -2,899      -3,351      -3,076
    73.40 Adjustments in expired accounts
            (net)...........................          -7
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
                                               ---------   ---------  ----------

    [[Page 353]]

    74.40   Obligated balance, end of year..       1,302       1,027       1,012
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          79         308         238
    86.93 Outlays from discretionary
            balances........................         367         460         154
    86.97 Outlays from new mandatory
            authority.......................       1,906       1,845       1,904
    86.98 Outlays from mandatory balances...         547         738         780
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,899       3,351       3,076
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -4          -2          -2
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -5          -2          -2
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,011       3,074       3,059
    90.00 Outlays...........................       2,894       3,349       3,074
    ---------------------------------------------------------------------------

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

        The program performance measures for this program are based on State
    VR agency performance indicators developed pursuant to Section 106 of
    the Rehabilitation Act. One of these indicators measures the percentage
    of general and combined State VR agencies that assist at least 55.8
    percent of individuals receiving services to achieve an employment
    outcome. In 2003, 66 percent of the agencies met this performance
    criterion. Another measures the percentage of general and combined State
    VR agencies that assist at least 85 percent of individuals with
    employment outcomes to achieve competitive employment. In 2003, 93
    percent of general and combined agencies met this performance criterion.
    The data are based on the approximately 372,250 individuals whose
    service records were closed in 2003 after receiving services.

        The 2006 Budget 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 eliminates funding for three programs (Supported Employment State
    Grants, Projects with Industry, and the Migrant and Seasonal Farmworkers
    program). The services provided by these programs can be provided by the
    larger Vocational Rehabilitation State Grants program.

        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 and
    development 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.--Grants are made to States to establish or
    expand alternative financing programs to increase access to assistive
    technology for individuals with disabilities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0301-0-1-506      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           9          11           9
    25.2    Other services..................           2           2           1
    41.0    Grants, subsidies, and
              contributions.................       3,000       3,061       3,049
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,011       3,074       3,059
    99.0  Reimbursable obligations..........           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,013       3,076       3,061
    ---------------------------------------------------------------------------

               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.), [$17,000,000] $16,864,000. (Department of Education
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0600-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          16          17          17
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          16          17          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          17          17          17
    23.95 Total new obligations.............         -16         -17         -17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          17          17          17
    ----------------------------------------------------------------------------

    [[Page 354]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           5           1
    73.10 Total new obligations.............          16          17          17
    73.20 Total outlays (gross).............         -18         -21         -17
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          16          16
    86.93 Outlays from discretionary
            balances........................           7           5           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          18          21          17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          17          17          17
    90.00 Outlays...........................          19          21          17
    ---------------------------------------------------------------------------

        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 2004, the portion of the Federal appropriation
    allocated to educational materials represented approximately 58.5
    percent of the Printing House's total sales. The full appropriation
    represented approximately 63.5 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.),
    [$55,790,000] $54,472,000, of which [$1,685,000] $800,000 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 for the endowment program as authorized under section 207.
    (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0601-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operations........................          53          54          54
    00.02 Construction......................                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          53          55          55
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          54          55          55
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          53          55          55
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           1           4
    73.10 Total new obligations.............          53          55          55
    73.20 Total outlays (gross).............         -54         -52         -54
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           4           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          53          51          51
    86.93 Outlays from discretionary
            balances........................           1           1           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          54          52          54
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          53          55          55
    90.00 Outlays...........................          54          52          54
    ---------------------------------------------------------------------------

        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 2004, 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 the cost of a new construction project to replace the
    roof on the Institute's main classroom and administration building.

                              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.), [$105,400,000] $104,557,000: Provided, That from
    the total amount available, the University may at its discretion use
    funds for the endowment program as authorized under section 207.
    (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0602-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operations........................         100         105         105
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         100         105         105
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         100         105         105
    23.95 Total new obligations.............        -100        -105        -105
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         101         106         105
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         100         105         105
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   6
    73.10 Total new obligations.............         100         105         105
    73.20 Total outlays (gross).............        -100         -99        -105
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         100          99          99
    86.93 Outlays from discretionary
            balances........................                                   6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         100          99         105
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         100         105         105
    90.00 Outlays...........................         100          99         105
    ---------------------------------------------------------------------------

        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.

    [[Page 355]]

        In 2004, the appropriation for Gallaudet represented 64.9 percent of
    the total revenue for university-level programs and 97.1 percent of the
    revenue related to the elementary and secondary schools. In addition,
    the University receives other Federal funds such as student financial
    aid, vocational rehabilitation, Endowment Grant program income, and
    competitive grants and contracts. 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 Technical Education Act of 1998,] the Adult
    Education and Family Literacy Act, [and subparts 4 and 11 of part D of
    title V of the Elementary and Secondary Education Act of 1965
    (``ESEA''), $2,027,166,000, of] $215,734,000, which [$1,226,404,000]
    shall become available on July 1, [2005] 2006 and shall remain available
    through September 30, [2006 and of which $791,000,000 shall become
    available on October 1, 2005 and shall remain available through
    September 30, 2006] 2007: Provided, That of the amount provided for
    Adult Education State Grants, $69,135,000 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,
    [$9,169,000] $9,096,000 shall be for national leadership activities
    under section 243 and [$6,692,000] $6,638,000 shall be for the National
    Institute for Literacy under section 242[: Provided further, That
    $100,238,000 shall be available to carry out part D of title V of the
    ESEA: Provided further, That $95,238,000 shall be available to support
    the activities authorized under subpart 4 of part D of title V of the
    Elementary and Secondary Education Act of 1965, of which up to 5 percent
    shall become available October 1, 2004 and shall remain available
    through September 30, 2006, 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, 2005, and remain available through September 30, 2006, for
    grants to local educational agencies: Provided further, That funds made
    available to local education agencies under this subpart shall be used
    only for activities related to establishing smaller learning communities
    in high schools]. (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Vocational education:

            Annual appropriations:
              Vocational education:
    00.01       State grants................       1,203       1,196         791
    00.02       National programs...........          13          12          11
    00.03       Occupational and employment
                  information...............           9          11
    00.04       Tribally controlled
                  postsecondary vocational
                  institutions..............           7
    00.05       Tech-prep education State
                  grants....................         109         106
    00.06     Tech-prep demonstration.......                       5           5
                                               ---------   ---------  ----------
    00.91       Total, Vocational education.       1,341       1,330         807
              Adult education:
    01.01       State grants................         602         569         207
    01.02       National Institute for
                  Literacy..................           7           7           7
    01.03       National leadership
                  activities................          12           9           9
                                               ---------   ---------  ----------
    01.91       Total, adult education......         621         585         223
    02.01     Literacy programs for
                prisoners...................           5
    03.01     Smaller learning communities..           1         173          94
    04.01   Community technology centers....          10           5
    09.01 Reimbursable program..............           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,980       2,093       1,124
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          78         216         134
    22.00 New budget authority (gross)......       2,111       2,011       1,007
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,196       2,227       1,141
    23.95 Total new obligations.............      -1,980      -2,093      -1,124
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         216         134          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,331       1,236         216
    40.35   Appropriation permanently
              reduced.......................         -13         -16
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,318       1,220         216
    55.00   Advance appropriation from prior
              year..........................         791         791         791
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,111       2,011       1,007
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,618       1,637       1,700
    73.10 Total new obligations.............       1,980       2,093       1,124
    73.20 Total outlays (gross).............      -1,947      -2,030      -1,928
    73.40 Adjustments in expired accounts
            (net)...........................          -7
    73.45 Recoveries of prior year
            obligations.....................          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,637       1,700         896
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         600         656         566
    86.93 Outlays from discretionary
            balances........................       1,347       1,374       1,362
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,947       2,030       1,928
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       2,109       2,011       1,007
    90.00 Outlays...........................       1,945       2,030       1,928
    ---------------------------------------------------------------------------

        Vocational education.--
            State grants.--A 2006 advance appropriation from 2005 supports
        formula grants 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. No new funds are requested for 2006.
            National programs.--2005 appropriated funds are used in 2006 to
        support discretionary activities that contribute to knowledge of how
        to improve vocational education nationally. Activities include
        national centers for research and dissemination in career and
        technical education and a program of discretionary research and
        development projects. No new funds are requested for 2006.
            Tech-prep demonstration.--2005 appropriated funds are used in
        2006 to support competitive grants to consortia to establish tech-
        prep programs in secondary schools located on the sites of community
        colleges. No new funds are requested for 2006.

        Adult education--
            State programs.--Funds support formula grants to States to help
        eliminate functional illiteracy among the Nation's adults, to assist
        adults in obtaining a high school diploma

    [[Page 356]]

        or  its equivalent, and to promote family literacy. A portion of the
        funds is 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........           1           1
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation           2           2           1
    24.0    Printing and reproduction.......                                   1
    25.1    Advisory and assistance services           6
    25.2    Other services..................           3           3           2
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           1           1
    25.5    Research and development
              contracts.....................           9           9           5
    41.0    Grants, subsidies, and
              contributions.................       1,955       2,077       1,113
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,978       2,092       1,123
    99.0  Reimbursable obligations..........           2
    99.5  Below reporting threshold.........                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,980       2,093       1,124
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          16          20          20
    ---------------------------------------------------------------------------

                        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 (``HEA''), as amended, section 1543 of the Higher Education
    Amendments of 1992,] the Mutual Educational and Cultural Exchange Act of
    1961, [title VIII of the Higher Education Amendments of 1998, and
    section 117 of the Carl D. Perkins Vocational and Technical Education
    Act, $2,134,269,000, of which $1,500,000 for interest subsidies
    authorized by section 121 of the HEA shall remain available until
    expended: Provided, That $9,876,000, to remain available through
    September 30, 2006, shall be available to fund fellowships for academic
    year 2006-2007 under part A, subpart 1 of title VII of said Act, under
    the terms and conditions of part A, subpart 1: 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 Technical Education Act of 1998: Provided
    further, That $988,000 is for data collection and evaluation activities
    for programs under the HEA, including such activities needed to comply
    with the Government Performance and Results Act of 1993] $12,737,000:
    Provided further, That notwithstanding any other provision of law, funds
    made available in this Act to carry out [title VI of the 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 of the
    funds referred to in the preceding proviso up to 1 percent may be used
    for program evaluation, national outreach, and information dissemination
    activities [and $1,500,000 shall be used for a contract with the
    National Research Council to carry out an independent review of title VI
    international education and foreign language studies and the section
    102(b)(6) Fulbright-Hays programs: Provided further, That the funds
    provided for title II of the HEA shall be allocated notwithstanding
    section 210 of such Act: Provided further, That $146,360,000 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 of the conference report accompanying this
    Act]. (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Aid for institutional development:

    00.01   Strengthening institutions......          81          80
    00.02   Strengthening tribally
              controlled colleges and
              universities..................          23          24
    00.03   Strengthening Alaska Native and
              Native Hawaiian-serving
              institutions..................          11          12
    00.04   Strengthening historically black
              colleges and universities.....         223         239
    00.05   Strengthening historically black
              graduate institutions.........          53          58
    00.06   Minority science and engineering
              improvement...................           9           9
                                               ---------   ---------  ----------
    00.91     Subtotal, aid for
                institutional development...         400         422
          Other aid for institutions:

    01.01   Developing Hispanic-serving
              institutions..................          94          95
    01.02   International education and
              foreign language studies......         104         107          13
    01.03   Fund for the Improvement of
              Postsecondary Education.......         157         163
    01.05   Demonstration projects to ensure
              quality higher education for
              students with disabilities....           7           7
    01.06   Interest subsidy grants.........           2           1           1
    01.07   Tribally controlled
              postsecondary vocational and
              technical institutions........                       7
                                               ---------   ---------  ----------
    01.91     Subtotal, other aid for
                institutions................         364         380          14
          Assistance for students:

    02.01   Federal TRIO programs...........         832         837
    02.02   Gaining early awareness and
              readiness for undergraduate
              programs (GEAR UP)............         298         306
    02.03   Byrd honors scholarships........          41          41
    02.04   Javits fellowships..............          10          10          10
    02.05   Graduate assistance in areas of
              national need.................          30          30
    02.06   Thurgood Marshall legal
              educational opportunity.......                       3
    02.07   B.J. Stupak Olympic scholarships           1           1
    02.08   Child care access means parents
              in school.....................          16          16
                                               ---------   ---------  ----------
    02.91     Subtotal, assistance for
                students....................       1,228       1,244          10
    04.01 Teacher quality enhancement.......          89          68
    05.01 GPRA data/HEA program evaluation..           1           1
    06.01 Underground railroad program......           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,084       2,117          24
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          18          18          18
    22.00 New budget authority (gross)......       2,085       2,117          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,103       2,135          31
    23.95 Total new obligations.............      -2,084      -2,117         -24
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          18          18           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,098       2,134          13
    40.35   Appropriation permanently
              reduced.......................         -13         -17
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,085       2,117          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,833       2,864       2,776

    [[Page 357]]

    73.10 Total new obligations.............       2,084       2,117          24
    73.20 Total outlays (gross).............      -2,041      -2,205      -2,034
    73.40 Adjustments in expired accounts
            (net)...........................         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,864       2,776         766
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          73         107           1
    86.93 Outlays from discretionary
            balances........................       1,968       2,098       2,033
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,041       2,205       2,034
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,085       2,117          13
    90.00 Outlays...........................       2,041       2,205       2,034
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................       2,085       2,117          13
      Outlays...........................       2,041       2,205       2,034
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                               1,189
      Outlays...........................                                  59
                                        ------------------------------------
    Total:
      Budget Authority..................       2,085       2,117       1,202
      Outlays...........................       2,041       2,205       2,093
                                        ====================================

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

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..           2           2
    25.2  Other services....................           5           7           1
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           2           2
    41.0  Grants, subsidies, and
            contributions...................       2,075       2,106          21
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,084       2,117          24
    ---------------------------------------------------------------------------

                                Higher Education

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Aid for institutional development:

    00.01   Strengthening institutions......                                  80
    00.02   Strengthening tribally
              controlled colleges and
              universities..................                                  24
    00.03   Strengthening Alaska Native and
              Native Hawaiian-serving
              institutions..................                                   7
    00.04   Strengthening historically black
              colleges and universities.....                                 241
    00.05   Strengthening historically black
              graduate institutions.........                                  58
    00.06   Minority science and engineering
              improvement...................                                   9
                                               ---------   ---------  ----------
    00.91     Subtotal, aid for
                institutional development...                                 419
          Other aid for institutions:

    01.01   Developing Hispanic-serving
              institutions..................                                  96
    01.02   International education and
              foreign language studies......                                  94
    01.03   Fund for the Improvement of
              Postsecondary Education.......                                  22
    01.07   Tribally controlled
              postsecondary vocational and
              technical institutions........                                   7
                                               ---------   ---------  ----------
    01.91     Subtotal, other aid for
                institutions................                                 219
          Assistance for students:

    02.01   Federal TRIO programs...........                                 369
    02.05   Graduate assistance in areas of
              national need.................                                  30
    02.08   Child care access means parents
              in school.....................                                  16
                                               ---------   ---------  ----------
    02.91     Subtotal, assistance for
                students....................                                 415
    03.01 Community college access..........                                 125
    05.01 GPRA data/HEA program evaluation..                                   1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                               1,179
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                               1,189
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                               1,189
    23.95 Total new obligations.............                              -1,179
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                  10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                               1,189
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                               1,179
    73.20 Total outlays (gross).............                                 -59
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                               1,120
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  59
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               1,189
    90.00 Outlays...........................                                  59
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..                                   1
    25.2  Other services....................                                   3
    41.0  Grants, subsidies, and
            contributions...................                               1,175
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                               1,179
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to revise and reauthorize programs currently
    under the Higher Education Act of 1965.

        Aid for institutional development.--
            Strengthening institutions.--Funds support planning and
        development grants for improving academic programs and financial
        management at schools that enroll high proportions of disadvantaged
        students and have low per-student expenditures.
            Strengthening tribally controlled colleges and universities.--
        Funds 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 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 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
        support grants to help historically black graduate institutions to
        improve and expand their capacity to serve students, and to
        strengthen management and fiscal operations.

    [[Page 358]]

            Minority science and engineering improvement.--Funds 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 support
        Hispanic-serving institutions to enable them to improve and expand
        their capacity to serve students.
            International education and foreign language studies programs.--
        Funds promote the development and improvement of international and
        foreign language programs.
            Fund for the improvement of postsecondary education.--Funds
        support a broad range of postsecondary reform and improvement
        projects, as well as international consortia programs.
            Tribally controlled postsecondary vocational and technical
        institutions.--Funds support the operation and improvement of
        tribally controlled postsecondary vocational institutions, to ensure
        continued and expanded educational opportunities for Indian
        students.

        Assistance for students.--
            Federal TRIO programs.--Funds support postsecondary education
        outreach and student support services to help individuals from
        disadvantaged backgrounds complete college and graduate studies.
            Javits fellowships.--Funds requested will be used in 2007 to
        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 support
        fellowships to graduate students of superior ability who have
        financial need and who are from traditionally under-represented
        backgrounds for study in areas of national need.
            Child care access means parents in school.--Funds 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.--
            Community college access grants.--Funds would support
        competitive grants to encourage States, local educational agencies,
        and community colleges to establish ``dual enrollment'' programs to
        enable high school students, particularly disadvantaged students, to
        take college-level courses and receive both high school and
        postsecondary credit.
            GPRA data/HEA program evaluation.--Funds 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.

                                Howard University

        For partial support of Howard University (20 U.S.C. 121 et seq.),
    [$240,715,000] $238,789,000, of which not less than [$3,552,000]
    $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,
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0603-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 General support...................         212         209         209
    00.02 Howard University Hospital........          30          30          30
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         242         239         239
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7           4           4
    22.00 New budget authority (gross)......         239         239         239
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         246         243         243
    23.95 Total new obligations.............        -242        -239        -239
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         240         241         239
    40.35   Appropriation permanently
              reduced.......................          -1          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         239         239         239
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  11
    73.10 Total new obligations.............         242         239         239
    73.20 Total outlays (gross).............        -242        -228        -239
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                      11          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         235         225         225
    86.93 Outlays from discretionary
            balances........................           7           3          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         242         228         239
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         239         239         239
    90.00 Outlays...........................         242         228         239
    ---------------------------------------------------------------------------

        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 2004, Federal funding represented approximately
    53 percent of the university's revenue.

          College Housing and Academic Facilities Loans Program Account

        For Federal administrative expenses [authorized under section 121 of
    the Higher Education Act of 1965, $578,000] to carry out activities
    related to existing facility loans [entered into under] pursuant to
    section 121 of the Higher Education Act of 1965, as amended, $573,000.

      Historically Black College and University Capital Financing Program
                                     Account

        The 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,
    [$212,000] $210,000. (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

    [[Page 359]]

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

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Historically Black Colleges and
            Universities....................          55          70          50
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          55          70          50
        Direct loan subsidy (in percent):
    132001Historically Black Colleges and
            Universities....................        0.00        0.00        0.00
        Direct loan subsidy budget authority:
    133001Historically Black Colleges and
            Universities....................
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....
        Direct loan subsidy outlays:
    134001Historically Black Colleges and
            Universities....................
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
    ----------------------------------------------------------------------------

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

        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 through 2030.

        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
    2006 Budget provides funds for continuing Federal administrative
    activities only.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           5           5           5
    ---------------------------------------------------------------------------

         College Housing and Academic Facilities Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest paid to Treasury.........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New financing authority (gross)...           1           1           1
    22.60 Portion applied to repay debt.....          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           1           1
    23.95 Total new obligations.............          -1          -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           3           3           2
    69.47   Portion applied to repay debt...          -2          -2          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           1           1           1
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

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

        Consistent with the Federal Credit Reform Act of 1990, 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. The amounts in this account are a means of
    financing, and are not incuded in the budget totals.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          22          20          18
    1251  Repayments: Repayments and
            prepayments.....................          -2          -2          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          20          18          17
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4252-0-3-502

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    22

    20

    1402

    Interest receivable

    1

    1405

    Allowance for subsidy cost (-)

    -3

    -3

    1499

    Net present value of assets related to direct loans

    20

    17

    1999

    Total assets

    20

    17

        LIABILITIES:
    2103

    Federal liabilities: Debt

    20

    17

    2999

    Total liabilities

    20

    17

    [[Page 360]]

    4999

    Total liabilities and net position

    20

    17

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

        College Housing and Academic Facilities Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0242-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest paid to Treasury.........           9           9           9
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................           9           9           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......           9           9           9
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.60 Portion applied to repay debt.....          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           9           9           9
    23.95 Total new obligations.............          -9          -9          -9
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           1           2           3
    69.00 Offsetting collections (cash).....          46          35          34
    69.27 Capital transfer to general fund..          -4         -26         -25
    69.47 Portion applied to repay debt.....         -34          -2          -3
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................           8           7           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           9           9           9
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           1           1
    73.10 Total new obligations.............           9           9           9
    73.20 Total outlays (gross).............          -9          -9          -9
    73.45 Recoveries of prior year
            obligations.....................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           9           9           9
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Repayments of principal.......         -34         -24         -23
    88.40     Interest received on loans....         -12         -11         -11
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -46         -35         -34
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -37         -26         -25
    90.00 Outlays...........................         -37         -26         -25
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         100          93          90
    1251  Repayments: Repayments and
            prepayments.....................          -7          -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          93          90          87
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          20          18          17
    1251  Repayments: Repayments and
            prepayments.....................          -2          -1          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          18          17          15
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         228         203         184
    1251  Repayments: Repayments and
            prepayments.....................         -25         -19         -18
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         203         184         166
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-0242-0-1-502

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601

    Direct loans, gross

    348

    314

    1602

    Interest receivable

    5

    6

    1699

    Value of assets related to direct loans

    353

    320

    1999

    Total assets

    353

    320

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    130

    92

    2104

    Resources payable to Treasury

    223

    228

    2999

    Total liabilities

    353

    320

    4999

    Total liabilities and net position

    353

    320

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

    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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Awards................          55          70          50
    00.02 Interest paid to Treasury.........           6           7           8
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................          61          77          58
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         106          77          58
    22.70 Balance of authority to borrow
            withdrawn.......................         -45
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          61          77          58
    23.95 Total new obligations.............         -61         -77         -58
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         100          70          50
    69.00 Offsetting collections (cash).....          21          10          12
    69.47 Portion applied to repay debt.....         -15          -3          -4
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................           6           7           8
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         106          77          58
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9          10          49
    73.10 Total new obligations.............          61          77          58
    73.20 Total financing disbursements
            (gross).........................         -60         -38         -54
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10          49          53
    87.00 Total financing disbursements
            (gross).........................          60          38          54
    ----------------------------------------------------------------------------

    [[Page 361]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.40     Interest repayments...........          -6          -7          -8
    88.40     Principal repayments..........         -15          -3          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -21         -10         -12
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          85          67          46
    90.00 Financing disbursements...........          39          28          42
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         229         229         162
    1142  Unobligated direct loan limitation
            (-).............................        -174        -159        -112
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          55          70          50
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          79         118         146
    1231  Disbursements: Direct loan
            disbursements...................          54          31          46
    1251  Repayments: Repayments and
            prepayments.....................         -15          -3          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         118         146         188
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4255-0-3-502

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    9

    10

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    79

    118

    1402

    Interest receivable

    3

    3

    1499

    Net present value of assets related to direct loans

    82

    121

    1999

    Total assets

    91

    131

        LIABILITIES:
          Federal liabilities:

    2102

    Interest payable

    3

    3

    2103

    Debt

    79

    118

    2201

    Non-Federal liabilities: Undisbursed direct loans

    9

    10

    2999

    Total liabilities

    91

    131

    4999

    Total liabilities and net position

    91

    131

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

                     OFFICE OF STUDENT FINANCIAL ASSISTANCE

                                  Federal Funds

    General and special funds:

                          Student Financial Assistance

        [For carrying out subparts 1, 3 and 4 of part A, part C and part E
    of title IV of the Higher Education Act of 1965, as amended,
    $14,380,795,000, which shall remain available through September 30,
    2006.]
        [The maximum Pell Grant for which a student shall be eligible during
    award year 2005-2006 shall be $4,050.] (Department of Education
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Federal Pell grants...............      12,256       9,589
    02.01 Federal supplemental educational
            opportunity grants (SEOG).......         771         780
    02.02 Federal work-study................       1,003         991
    02.03 Federal Perkins loans: Federal
            capital contributions...........         102
    02.04 Federal Perkins loans: Loan
            cancellations...................          66          66
                                               ---------   ---------  ----------
    02.91   Direct Program by Activities--
              Subtotal (1 level)............       1,942       1,837
    03.01 Leveraging educational assistance
            partnership.....................          68          66
    04.01 Loan forgiveness for child care
            providers.......................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................      14,267      11,492
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          33          25       2,799
    22.00 New budget authority (gross)......      14,007      14,266
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         252
    22.30 Expired unobligated balance
            transfer to unexpired account...           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      14,293      14,291       2,799
    23.95 Total new obligations.............     -14,267     -11,492
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          25       2,799       2,799
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      14,090      14,381
    40.35   Appropriation permanently
              reduced.......................         -83        -115
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      14,007      14,266
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       8,479       7,707       4,636
    73.10 Total new obligations.............      14,267      11,492
    73.20 Total outlays (gross).............     -14,854     -14,563      -7,171
    73.40 Adjustments in expired accounts
            (net)...........................          67
    73.45 Recoveries of prior year
            obligations.....................        -252
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       7,707       4,636      -2,535
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       6,501       7,100
    86.93 Outlays from discretionary
            balances........................       8,353       7,463       7,171
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      14,854      14,563       7,171
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      14,007      14,266
    90.00 Outlays...........................      14,854      14,563       7,171
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................      14,007      14,266
      Outlays...........................      14,854      14,563       7,171
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                              15,051
      Outlays...........................                               7,669
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                               4,721
      Outlays...........................                                 101
                                        ------------------------------------
    Total:
      Budget Authority..................      14,007      14,266      19,772
      Outlays...........................      14,854      14,563      14,941
                                        ====================================

        Note: Includes in all years institutional matching share of
    defaulted notes assigned from institutions to the Education Department.

        The Administration is working with Congress to develop legislation
    reauthorizing programs included in the Higher Education Act. When new
    authorizing legislation is enacted, resources for the affected programs
    will be requested.

        Funding Tables.--The following tables display student aid funds
    available, the number of aid awards, average awards,

    [[Page 362]]

    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. The 2006 data in these
    tables reflect the Administration's legislative proposals.

          AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

                                 [in thousands]

                                            2004         2005        2006
    Pell grants.........................  13,090,868  12,901,175  13,591,660
    Enhanced Pell Grants for State
    Scholars............................           0           0      33,000
    Student loans:
      Guaranteed student loans:
        Stafford loans..................  17,591,540  18,847,048  20,362,970
        Unsubsidized Stafford loans.....  16,531,099  18,207,705  20,056,662
        PLUS............................   5,143,106   5,898,107   6,577,527
      Direct student loans:
        Stafford loans..................   5,971,842   6,294,928   6,792,725
        Unsubsidized Stafford loans.....   4,761,479   5,140,520   5,710,007
        PLUS............................   2,106,810   2,424,624   2,685,374
      Consolidation:
        FFEL............................  35,946,562  34,736,700  25,326,020
        Direct Loans....................   7,782,000   9,036,135   7,620,207
      Loans for short-term training.....           0           0     283,558
      Perkins loans.....................   1,262,882   1,135,368           0
          Student loans, subtotal.......  97,097,319 101,721,134  95,415,052
    Work study..........................   1,194,390   1,184,229   1,184,229
    Supplemental educational opportunity
    grants..............................     975,260     985,722     985,722
    Leveraging educational assistance
    partnerships........................     168,517     166,928           0
    Presidential math and science
    scholars............................           0           0     100,000
                                        ------------------------------------
          Total aid available........... 112,526,354 116,959,188 111,309,662

                              NUMBER OF AID AWARDS

                                 [in thousands]

                                            2004         2005        2006
        Pell grants.....................       5,302       5,330       5,468
        Enhanced Pell grants for state
          scholars......................           0           0          36
        Guaranteed student loans--
          Stafford loans................       5,098       5,439       5,645
        Guaranteed student loans--
          Unsubsidized Stafford loans...       3,887       4,224       4,436
        Guaranteed student loans--PLUS..         565         617         656
        Guaranteed student loans--
          Consolidation.................       1,243       1,185         826
        Direct student loans--Stafford
          loans.........................       1,625       1,679       1,741
        Direct student loans--
          Unsubsidized Stafford loans...       1,132       1,184       1,245
        Direct student loans--PLUS......         244         265         281
        Direct student loans--
          Consolidation.................         331         374         316
        Loans for short-term training...           0           0         377
        Perkins loans...................         630         567           0
        Work-study......................         826         819         819
        Supplemental educational
          opportunity grants............       1,278       1,292       1,292
        Leveraging eduational assistance
          partnerships..................         169         167           0
        Presidential math and science
          scholars......................           0           0          20
                                        ------------------------------------
          Total awards..................      22,330      23,140      23,138

                               AVERAGE AID AWARDS

                               [in whole dollars]

                                            2004         2005        2006
        Pell grants.....................       2,469       2,420       2,486
        Enhanced Pell grants for state
          scholars......................           0           0         911
        Guaranteed student loans--
          Stafford loans................       3,450       3,465       3,607
        Guaranteed student loans--
          Unsubsidized Stafford loans...       4,253       4,311       4,521
        Guaranteed student loans--PLUS..       9,103       9,565      10,024
        Guaranteed student loans--SLS...           0           0           0
        Guaranteed student loans--
          Consolidation.................      28,925      29,323      30,662
        Direct student loans--Stafford
          loans.........................       3,675       3,750       3,901
        Direct student loans--
          Unsubsidized Stafford loans...       4,205       4,341       4,586
        Direct student loans--PLUS......       8,651       9,157       9,573
        Direct student loans--
          Consolidation.................      23,543      24,161      24,138
        Loans for short-term training...           0           0         752
        Perkins loans...................       2,003       2,003           0
        Work-study......................       1,446       1,446       1,446
        Supplemental educational
          opportunity grants............         763         763         763
        Leveraging educational
          assistance partnerships.......       1,000       1,000           0
        Presidential math and science
          scholars......................           0           0       5,000

                            NUMBER OF STUDENTS AIDED

                                 [in thousands]

    Unduplicated student count..........       9,432       9,879      10,216

                     ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

                            [in thousands of dollars]

                                            2004         2005        2006
    Pell grants.........................      26,510      26,650      27,340
    Work-study..........................      74,697      74,065      74,065
    Supplemental educational opportunity
    grants..............................      39,010      39,429      39,429
    Perkins loans.......................      50,515      45,415           0

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         325         324         324
    1251  Repayments: Repayments and
            prepayments.....................         -24         -24         -25
          Write-offs for default:

    1263    Direct loans....................          -6          -7          -7
    1264    Other adjustments, net..........          29          31          32
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         324         324         324
    ---------------------------------------------------------------------------

                          Student Financial Assistance

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Federal Pell grants...............                              12,543
    01.02 Enhanced Pell grants for State
            scholars........................                                  24
                                               ---------   ---------  ----------
    01.91   Direct Program by Activities--
              Subtotal (1 level)............                              12,567
    02.01 Federal supplemental educational
            opportunity grants (SEOG).......                                 779
    02.02 Federal work-study................                                 990
                                               ---------   ---------  ----------
    02.91   Direct Program by Activities--
              Subtotal (1 level)............                               1,769
    05.01 Presidential math and science
            scholars........................                                  50
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                              14,386
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                              15,051
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                              15,051
    23.95 Total new obligations.............                             -14,386
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 665
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                              15,051
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                              14,386
    73.20 Total outlays (gross).............                              -7,669
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                               6,717
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                               7,669
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                              15,051
    90.00 Outlays...........................                               7,669
    ---------------------------------------------------------------------------

        The resources in this schedule are proposed for later transmittal
    under proposed legislation to reauthorize the Higher Education Act. The
    Administration's Higher Education Act reauthorization proposals,
    including 2006 funding levels for programs in the Student Financial
    Assistance Account, are discussed under the Federal Direct Student Loan
    Program Account. Together with matching funds, this funding would
    provide nearly 7.6 million awards totaling almost $16 billion in
    available aid.

    [[Page 363]]

        Federal Pell Grants.--Pell Grants are the single largest source of
    grant aid for postsecondary education. In 2005, more than five million
    undergraduates will receive up to $4,050 to help pay for postsecondary
    education. Undergraduate students establish eligibility for these grants
    under award and need determination rules set out in the authorizing
    statute and the annual appropriations act.

        Campus-based programs.--The Federal Supplemental Educational
    Opportunity Grants, Federal Work-Study, and Federal Perkins Loan
    programs are called the ``campus-based'' programs because participating
    institutions are responsible for administering the programs on their own
    campuses. These programs provide aid administrators with considerable
    flexibility in packaging financial aid awards to best meet student
    needs.

        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.

        Federal Work Study.--Federal funds are awarded by formula to
    qualifying institutions, which provide part-time jobs to eligible
    undergraduate and graduate students. Hourly earnings under this 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 Federal Work Study
    program also requires participating institutions to use at least 7
    percent of the total funds granted to compensate students employed in
    community service jobs.

        Perkins Loan Program.--Institutions award low-interest loans from
    Federal revolving funds held at institutions, which are comprised of
    Federal Capital Contributions, institutional matching funds, and student
    repayments on outstanding loans.

        Perkins Loan Program--Cancellations.--The Department of Education
    reimburses Federal revolving funds held at institutions for cancelled
    Perkins loans. Under the Higher Education Act, borrowers are eligible to
    have some or all of their Perkins loan repayment obligation cancelled if
    they enter certain fields of public service after graduation. Perkins
    loan balances are also cancelled in the event of a borrower's death, or
    total and permanent disability. In general, the revolving funds are
    reimbursed for 100 percent of the principal and accrued interest of the
    loan cancelled.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1251  Repayments: Repayments and
            prepayments.....................
          Write-offs for default:

    1263    Direct loans....................
    1264    Other adjustments, net..........                                -324
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                -324
    ---------------------------------------------------------------------------

                          Student Financial Assistance

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-4-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Federal Pell Grants...............                               4,612
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                               4,612
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                               4,721
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                               4,721
    23.95 Total new obligations.............                              -4,612
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 109
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                 420
    60.00   Appropriation...................                               4,301
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................                               4,721
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                               4,612
    73.20 Total outlays (gross).............                                -101
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                               4,511
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 101
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               4,721
    90.00 Outlays...........................                                 101
    ---------------------------------------------------------------------------

                               Perkins Loan Assets

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0219-4-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Institutional Share of Perkins
            Collections.....................                                 146
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 146
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                 146
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                 146
    23.95 Total new obligations.............                                -146
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                 726
    69.27   Capital transfer to general fund                                -580
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                                 146
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                 146
    73.20 Total outlays (gross).............                                -146
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 146
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                -726
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -580
    90.00 Outlays...........................                                -580
    ---------------------------------------------------------------------------

        The 2006 Budget proposes to eliminate the Perkins Loan program and
    recall the Federal portion of revolving funds held by participating
    institutions. (This proposal is discussed, as part of a broader review
    of Higher Education Act reauthor

    [[Page 364]]

    ization proposals, under the Federal Direct Student Loan Program
    Account). This account records amounts recalled from Perkins Loan
    institutions and subsequent loan repayments on outstanding Perkins
    Loans, as well as reimbursements of institutional funds to participating
    schools.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0219-4-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1251  Repayments: Repayments and
            prepayments.....................                                -726
          Write-offs for default:

    1263    Direct loans....................                                 -51
    1264    Other adjustments, net..........                               8,000
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                               7,223
    ---------------------------------------------------------------------------

                           Student Aid Administration

        [For Federal administrative expenses (in addition to funds made
    available under section 458), to carry out part D of title I, and
    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, $120,247,000.] (Department
    of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0202-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Student aid administration........         117         119
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         117         119
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         117         119
    23.95 Total new obligations.............        -117        -119
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         118         120
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         117         119
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          35          36          51
    73.10 Total new obligations.............         117         119
    73.20 Total outlays (gross).............        -115        -104         -34
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          36          51          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          83          85
    86.93 Outlays from discretionary
            balances........................          32          19          34
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         115         104          34
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         117         119
    90.00 Outlays...........................         115         104          34
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................         117         119
      Outlays...........................         115         104          34
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 939
      Outlays...........................                                 615
                                        ------------------------------------
    Total:
      Budget Authority..................         117         119         939
      Outlays...........................         115         104         649
                                        ====================================

        The Department of Education manages Federal student aid programs
    that will provide over $110 billion in Federal student aid grants and
    loans to 10.2 million students and parents in 2006. Primary
    responsibility for administering these programs lies with the Office of
    Postsecondary Education and the performance-based Office of Federal
    Student Aid (FSA). FSA was created by Congress in 1998 with a mandate to
    improve service to students and other student aid program participants,
    reduce student aid administration costs, and improve accountability and
    program integrity.

        The Department's student aid administrative activities are funded
    from two main sources: (1) funds appropriated on a permanent basis under
    section 458 of the Higher Education Act; and (2) a discretionary
    appropriation partially supporting student aid administrative
    activities. Student aid administrative funds for 2005 totaled $914
    million, $195 million of which supported the payment of account
    maintenance fees to FFEL guaranty agencies.

        The Budget for 2006 includes $939 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          42          45
    11.3      Other than full-time permanent           1
    11.5      Other personnel compensation..           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          44          46
    12.1    Civilian personnel benefits.....          11          11
    23.1    Rental payments to GSA..........           7           7
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           8
    24.0    Printing and reproduction.......           3           2
    25.2    Other services..................           1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           5           3
    25.7    Operation and maintenance of
              equipment.....................          40          39
    31.0    Equipment.......................           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         117         118
    99.5  Below reporting threshold.........                       1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         117         119
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0202-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         534         533
    ---------------------------------------------------------------------------

                           Student Aid Administration

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0202-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Student aid administration........                                 939
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 939
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 939
    23.95 Total new obligations.............                                -939
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 939
    ----------------------------------------------------------------------------

    [[Page 365]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                 939
    73.20 Total outlays (gross).............                                -615
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                 324
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 615
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 939
    90.00 Outlays...........................                                 615
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0202-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                                 103
    11.5    Other personnel compensation....                                   3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                                 106
    12.1  Civilian personnel benefits.......                                  26
    21.0  Travel and transportation of
            persons.........................                                   4
    23.1  Rental payments to GSA............                                  16
    23.3  Communications, utilities, and
            miscellaneous charges...........                                  16
    24.0  Printing and reproduction.........                                   2
    25.2  Other services....................                                  17
    25.3  Other purchases of goods and
            services from Government
            accounts........................                                  12
    25.7  Operation and maintenance of
            equipment.......................                                 541
    26.0  Supplies and materials............                                   1
    31.0  Equipment.........................                                   3
    41.0  Grants, subsidies, and
            contributions...................                                 195
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 939
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0202-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                               1,186
    ---------------------------------------------------------------------------

                        Federal Student Loan Reserve Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4257-0-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.02 Obligations, non-federal..........       2,937       3,409       3,615
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................       2,937       3,409       3,615
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,107       1,039       1,022
    22.00 New budget authority (gross)......       3,074       3,392       3,596
    22.40 Capital transfer to general fund..        -205                     -82
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,976       4,431       4,536
    23.95 Total new obligations.............      -2,937      -3,409      -3,615
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,039       1,022         921
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       3,074       3,392       3,596
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............       2,937       3,409       3,615
    73.20 Total outlays (gross).............      -2,937      -3,409      -3,615
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       3,074       3,392       3,596
    86.98 Outlays from mandatory balances...        -137          17          19
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,937       3,409       3,615
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -2,885      -3,101      -3,296
    88.40     Non-Federal sources...........        -189        -291        -300
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,074      -3,392      -3,596
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -137          17          19
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................
      Outlays...........................        -137          17          19
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................                                -156
                                        ------------------------------------
    Total:
      Budget Authority..................
      Outlays...........................        -137          17        -137
                                        ====================================

        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 avert defaults. The Federal Government
    reimburses these reserves for default claim payments.

        As discussed under the Federal Direct Student Loan Program Account,
    the Administration is proposing to require guaranty agencies to collect
    a currently optional 1 percent insurance premium paid by borrowers into
    the Federal Student Loan Reserve Fund.

        The following schedule reflects the balances in these guaranty
    agency funds.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4257-0-3-502

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    1,107

    1,039

    1999

    Total assets

    1,107

    1,039

        NET POSITION:
    3300

    Cumulative results of operations

    1,107

    1,039

    3999

    Total net position

    1,107

    1,039

    4999

    Total liabilities and net position

    1,107

    1,039

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

                        Federal Student Loan Reserve Fund

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4257-4-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.02 Obligations, non-federal..........
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                 156
    22.40 Capital transfer to general fund..
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                 156
    23.95 Total new obligations.............
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 156
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                 156
    ----------------------------------------------------------------------------

    [[Page 366]]

        Change in obligated balances:
    73.10 Total new obligations.............
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............
    88.40     Non-Federal sources...........                                -156
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                -156
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                                -156
    ---------------------------------------------------------------------------

    Credit accounts:

               Federal Direct Student Loan Program Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Subsidy modification..............                      49
    00.05 Upward Restimate Principal........       2,102       1,262
    00.06 Interest on Upward Reestimate.....         627         374
    00.09 Administrative expenses...........         799         795
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,528       2,480
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26          27
    22.00 New budget authority (gross)......       3,525       2,480
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.40 Capital transfer to general fund..                     -27
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,555       2,480
    23.95 Total new obligations.............      -3,528      -2,480
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                -795
          Mandatory:

    60.00   Appropriation...................         795         795         795
    60.00   Appropriation (indefinite)--
              Upward reestimate.............       2,729       1,636
    60.00   Appropriation (indefinite)--
              Upward reestimate.............                      49
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       3,524       2,480         795
    69.00 Offsetting collections (cash)--
            negative subsidy................         169          89         616
    69.00 Offsetting collections (cash)--
            downward reestimate, principal..          97         593
    69.00 Offsetting collections (cash)--
            downward reestimate,interest....           6          31
    69.00 Offsetting collections (cash)--
            admin...........................           1
    69.27 Capital transfer to general fund..        -272        -713        -616
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,525       2,480
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         255         260         357
    73.10 Total new obligations.............       3,528       2,480
    73.20 Total outlays (gross).............      -3,519      -2,383        -241
    73.45 Recoveries of prior year
            obligations.....................          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         260         357         116
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                -467
    86.97 Outlays from new mandatory
            authority.......................       3,303       2,152         466
    86.98 Outlays from mandatory balances...         216         231         242
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,519       2,383         241
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -273        -713        -616
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,252       1,767        -616
    90.00 Outlays...........................       3,246       1,670        -375
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................       3,252       1,767        -616
      Outlays...........................       3,246       1,670        -375
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                    -335         -53
      Outlays...........................                    -335         -53
                                        ------------------------------------
    Total:
      Budget Authority..................       3,252       1,432        -669
      Outlays...........................       3,246       1,335        -428
                                        ====================================

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

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Stafford..........................       6,631       6,948       7,235
    115002Unsubsidized Stafford.............       5,401       5,841       6,229
    115003PLUS..............................       2,102       2,535       2,806
    115004Consolidation.....................       7,845       9,156       7,611
                                               ---------   ---------  ----------
    115901Total direct loan levels..........      21,979      24,480      23,881
        Direct loan subsidy (in percent):
    132001Stafford..........................        4.55        5.15        4.33
    132002Unsubsidized Stafford.............       -5.00       -6.64      -10.77
    132003PLUS..............................       -4.91       -5.08       -7.75
    132004Consolidation.....................       -0.81        0.31       -2.99
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       -0.61       -0.53       -3.36
        Direct loan subsidy budget authority:
    133001Stafford..........................         302         358         313
    133002Unsubsidized Stafford.............        -270        -388        -671
    133003PLUS..............................        -103        -129        -217
    133004Consolidation.....................         -64          28        -228
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....        -135        -131        -803
        Direct loan subsidy outlays:
    134001Stafford..........................         256         309         297
    134002Unsubsidized Stafford.............        -261        -309        -510
    134003PLUS..............................        -101        -116        -179
    134004Consolidation.....................         -64          27        -224
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............        -170         -89        -616
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Stafford..........................       1,180         158
    135002Unsubsidized Stafford.............       1,305         113
    135003PLUS..............................         241         140
    135004Consolidation.....................         619       1,382
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................       3,345       1,793
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Stafford..........................         -88        -359
    137002Unsubsidized Stafford.............                    -294
    137003PLUS..............................         -17         -53
    137004Consolidation.....................        -613         -75
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -718        -781
    ----------------------------------------------------------------------------

        Student loan administrative expense data:
    351001Budget authority..................         795         795
    359001Outlays...........................         790         696         239
    ---------------------------------------------------------------------------

        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 2006, 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.

    [[Page 367]]

        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 2006
    Budget, the President is proposing a comprehensive package of student
    aid policy proposals related to the reauthorization of the Higher
    Education Act (HEA). These proposals, which will expand student benefits
    and improve program efficiency, are discussed at the conclusion of this
    program description.

        From its inception in 1965 through 2004, the FFEL program has
    provided over $547 billion in loans to postsecondary students and their
    parents. Since July 1, 1994, the Direct Loan program has provided $150
    billion in new and consolidation loans to students and parents. Taken
    together, the FFEL and Direct Loan programs will make more than $56
    billion in new loans available in 2005. 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, 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 24 percent in academic year 2005-2006. 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.

        Loans funded with the proceeds of tax-exempt securities originally
    issued before October 1, 1993, receive substantially higher special
    allowance payments than are currently paid on other types of loans. The
    Taxpayer-Teacher Protection Act of 2004 temporarily limited the ability
    of loan holders to retain these higher benefits indefinitely by
    refinancing the underlying securities. These temporary provisions are in
    effect through December 31, 2005.

        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 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 Taxpayer-Teacher Protection Act of 2004 temporarily
    extended this benefit to $17,500 for mathematics, science, and special
    education teachers considered highly qualified under criteria
    established in the No Child Left Behind Act of 2001. These temporary
    provisions affect new borrowers who take out loans between October 1,
    1998, and September 30, 2005; they do not affect borrowers who have
    already received forgiveness benefits.

        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.

        Reauthorization Proposals. In 2005, the Federal government will
    provide over $70 billion in new grants, loans, and work-study assistance
    to help students pay for postsecondary education, including $57 billion
    in guaranteed and direct student loans and $13 billion in Pell Grants.
    Although the Federal government continues to provide extraordinary
    levels of aid for students, more funds are needed to increase the level
    of Pell Grant aid to low-income students.

        The President proposes a package of reforms to address this problem
    while improving the effectiveness of the Pell

    [[Page 368]]

    Grant and student loan programs. These reforms will increase the Pell
    Grant maximum award from $4,050 to $4,550 over 5 years and invest
    substantial new funds in student loan borrowers. These proposals would
    also reduce subsidies to various FFEL program participants, who would
    also be required to bear a greater share of overall program risk.

        Federal Pell Grants. The centerpiece of the Administration's budget
    and reauthorization proposal is designed to address the financial need
    of low-income students pursuing a postsecondary education. The
    Administration proposes to assist these students by investing more than
    $19 billion in new mandatory funding for the Pell Grant program from
    2006-2015. These funds would be used to increase the maximum grant award
    by $100 a year each of the next five years, and retire the current $4.3
    billion funding shortfall, putting the program on a firm financial
    footing. The Administration proposes to fund this proposal through
    mandatory savings generated by other reauthorization proposals. The cost
    of operating the Pell Grant program at the current maximum award level
    of $4,050, together with program changes discussed below, would continue
    to be funded through discretionary appropriations. This package of
    programmatic changes also includes a new budget scoring rule that would
    ensure the program is fully funded and shortfalls would not materialize
    in future years.

        While Pell Grants have been very successful in ensuring access to
    postsecondary education for low-income students, the Administration is
    proposing several changes to increase the program's effectiveness and
    improve its overall operation. Pell Grants would be made available year-
    round at eligible two- and four-year degree granting institutions,
    giving students a more convenient option for accelerating their studies
    and promptly completing their educations. As a further incentive for
    timely completion, Pell Grant eligibility would be limited to the
    equivalent of 16 semesters. To better target aid to students with the
    greatest financial need, the Administration proposes to index the
    minimum Pell Grant award to the maximum award beginning in 2007.
    Currently, students who qualify for an award between $200 and $400
    receive $400. Indexing would raise the $200 minimum award dollar-for-
    dollar with increases in the maximum, without adjusting the $400 actual
    payment; for example, the $100 increase proposed for 2007 would increase
    the minimum award to $300 with a $400 actual payment. With the next $100
    increase, proposed for 2008, the minimum award and actual payment would
    be $400, which would continue to go up in future years as the maximum
    award increases. Lastly, the Administration proposes to eliminate the
    Pell Grant award rule related to tuition sensitivity. This rule limits
    the amount of support that students with greatest need receive while
    attending low-cost institutions.

        The Administration also proposes $33 million for Enhanced Pell
    Grants for State Scholars to encourage students and States to
    participate in the State Scholars program. This program would provide up
    to an additional $1,000 to students completing the rigorous State
    Scholars curriculum in high school. The State Scholars curriculum
    consists of at least three years of mathematics and science, four years
    of English, three and a half years of social studies, and foreign
    language coursework. Currently, thirteen states participate in the
    States Scholars program. Although this new program will operate within
    the larger Pell Grant program, total funding would be capped at $33
    million in 2006. If recipients qualify for more than this amount, a
    process would be developed to allocate awards within the available
    funding level.

        To support these policies the 2006 Budget includes a total of $18.0
    billion for Pell Grants in 2006: $13.2 billion in discretionary funding,
    $4.3 billion in mandatory funding to eliminate the prior year shortfall,
    and an additional $420 million in mandatory funding to fund a $100
    increase in the maximum award to $4,150. Nearly 5.5 million students
    will receive Pell Grants under this proposal.

        Campus-Based Programs. To help fund the higher Pell maximum awards
    and make more funds available to all eligible students, the
    Administration proposes eliminating the Perkins Loan program and
    recalling the federal portion of revolving funds held by participating
    institutions. With the number of Perkins Loan institutions declining
    from 3,338 in academic year 1983-1984 to 1,796 in 2003-2004--and with
    only 3 percent of students enrolled in postsecondary education receiving
    Perkins Loans each year, the Administration believes the federal share
    of funds held by this small group of institutions would better serve
    students if invested in Pell Grants, which serve all eligible students
    regardless of institution. Last year, the PART found the Perkins Loan
    program to be duplicative of the larger guaranteed and direct student
    loan programs. Proposed increases to student loan limits in these
    programs and the continuation of very low interest rates would
    significantly offset the impact of eliminating the Perkins Loan program.
    Under the Administration's proposal, institutions would retain their own
    contributions into Perkins Loan revolving funds. Recalling the federal
    portion of the Perkins Loan funds, less amounts needed to support
    statutory loan forgiveness benefits, will provide $6.0 billion, to help
    offset the costs of the proposed new benefits for all eligible students.

        The Administration is also proposing to phase in revised allocation
    formulae for the SEOG and Work-Study programs under which funding
    distributions are based more directly on institutional need. The current
    allocation formulae have historically distributed a disproportionate
    share of funding to institutions with a long history of program
    participation rather than on the number of low-income students enrolled.
    Since these institutions do not have a higher proportion of low-income
    students, the PART review identified the current formulae as
    problematic.

        Lastly, the Administration proposes to replace the 7 percent
    community service requirements in the Work Study program with a separate
    set-aside equal to 20 percent of the Work-Study appropriation.
    Institutions would apply for these community service funds separate from
    their regular allocation. Program-wide, institutions place 15 percent of
    their students in community service jobs, however, the PART process
    found many individual institutions fail to meet the 7 percent
    requirement. Under the proposed approach, institutions that do not wish
    to participate in community service activities will no longer be
    required to do so and those that do wish to participate will be awarded
    additional funds. Overall, this proposal would double the amount of Work
    Study funds used for community service activities.

        Consistent with these proposals, the 2006 Budget includes $778
    million for SEOG and $990 million for Work-Study, which would generate
    $986 million and $1.2 billion, respectively, in new aid to students. No
    funds are included for the Leveraging Educational Partnerships program.

        Student Loans. The 2006 Budget includes a comprehensive package of
    proposals to make the student loan programs more efficient, cost-
    effective vehicles for helping students finance their postsecondary
    educations. Strategic reductions in loan subsidies to financial
    participants in the FFEL Program are specifically tied to operational
    efficiencies and program management improvements that have been realized
    in the last several years. Savings generated from these proposals would
    in large part be reinvested in benefits for students in the Pell Grant
    and the student loan programs.

    [[Page 369]]

        To help students meet rising higher education costs, the
    Administration is proposing to increase annual subsidized loan limits to
    $3,500 for first-year students, $4,500 for second year students, and
    annual unsubsidized loan limits to $12,000 for graduate and professional
    students. (The Administration also proposes corresponding increases in
    aggregate loan limits.) The Administration also is proposing to help
    borrowers manage their debt with more flexible extended repayment plans
    for all student loans based on the current Direct Loan model. Lastly,
    the Administration intends to make permanent the teacher loan
    forgiveness provisions of the Taxpayer-Teacher Protection Act of 2004.

        In addition, the Administration is proposing to maintain the current
    variable interest rate formula. The borrower rate on Stafford and
    Unsubsidized Stafford Loans is scheduled to be fixed at 6.8 percent for
    new loans beginning July 1, 2006. Under current interest rate
    projections, this would substantially increase interest rates for most
    borrowers. Rather than increase interest rates for students, the
    Administration proposes spending $4.4 billion to keep interest rates low
    for students and families.

        To encourage lenders to continue to strengthen default prevention
    efforts and in recognition of the strong repayment record associated
    with student loans today, the Administration proposes to reduce the
    amount of loan principal insured against default from 98 to 95 percent
    and better target insurance for lenders identified as exceptional
    performers. The Administration also proposes creating a .25 percent
    annual loan holder fee on the outstanding balance of non-consolidation
    loans in order to recover excess earnings that result from the basic
    program structure. Lastly, the Taxpayer-Teacher Protection Act of 2004's
    provisions related to tax-exempt securities will be made permanent. New
    proposals affecting lenders will reduce federal costs by $8.7 billion
    over 2006-2015.

        To strengthen the financial stability of the guaranty agencies'
    Federal Reserve fund, the Administration is proposing that agencies be
    required to collect the 1 percent insurance premium on all loans
    guaranteed or disbursed after July 1, 2006. The Administration expects
    guaranty agencies to operate more efficiently in the future and proposes
    to reduce incrementally the amount guaranty agencies may retain from
    collections on defaulted loans from 23 percent to roughly 16 percent--
    the average paid by the Department of Education to private collection
    agents. Finally, the Administration would provide reduced reinsurance to
    guaranty agencies to correspond to the reduced insurance rate paid to
    lenders in the program. For many guaranty agencies, reinsurance would be
    reduced from the current 95 percent to 92 percent. These changes are
    intended to foster increased guaranty agency default prevention
    activities and improve overall financial management. The latter two
    changes to the guaranty agency system will increase the Federal Student
    Loan Reserve Fund and reduce FFEL program costs by a combined $1.7
    billion over 2006-2015.

        The Administration is also proposing to significantly restructure
    the current Loan Consolidation program to help address the needs of both
    current and former students. Accordingly, the 2006 Budget includes the
    following proposals: replace the current fixed-rate interest formula for
    consolidation loans with the variable rate formula used for student
    loans, placing current and former students on equal terms; allow
    borrowers to reconsolidate on multiple occasions subject to a 1 percent
    borrower origination fee on reconsolidation; eliminate the statutory
    provision limiting borrower ability to choose their consolidation
    lender; and increase the current one-time lender fee on new
    consolidation loans by 50 basis points to 1 percent. Restructuring the
    Loan Consolidation program will reduce program costs by $3.7 billion
    over 2006-2015.

        Taken together, the Administration's proposed student benefits would
    increase student loan program costs by $7.7 billion over 2006-2015.
    Total proposed changes to the FFEL and Direct Loan programs would
    produce net savings of $19 billion over the same period.

        Presidential Math-Science Scholars. The 2006 Budget includes $50
    million for this new program, under which the Department of Education
    would enter into a public-private partnership to award $100 million
    annually in grants to low-income students who pursue studies in math and
    science. The program would provide approximately 20,000 low-income
    students who receive Pell Grants with separate additional awards of up
    to $5,000 each.

        Loans for Short-Term Training. The Administration proposes a new
    loan program, jointly administered by the Department of Education and
    Labor, to help dislocated, unemployed, transitioning, or older workers
    and students. This market-oriented program will allow participants to
    acquire or upgrade specific job-related skills through short-term
    training programs, usually shorter than 10 weeks and not currently
    eligible for Federal student aid. These programs must lead to an
    industry credential, certificate, or employer endorsed technical/
    occupational skills.

        Other provisions. The Administration also proposes to reinstate two
    expired provisions affecting institutions with cohort default rates of
    less than 10 percent for the three most recent fiscal years. These
    provisions exempt institutions from the requirements that loans to
    first-year students not be disbursed until 30 days after enrollment and
    all loans be issued in at least two separate disbursements.

        Two provisions restricting schools' eligibility to participate in
    the federal student assistance program are also proposed for
    elimination. The first, which requires 50 percent of a program's courses
    be offered on campus, restricts the availability of distance education.
    The second, requiring at least 10 percent of a school's revenue come
    from non-federal sources, has not been shown to be a reliable indicator
    of institutional quality.

        The Administration proposes to clarify a current provision under
    which student aid applicants who have been convicted of a drug-related
    offense are ineligible for Federal student aid. Under this proposal, the
    current provision would only affect students who commit a drug-related
    offense while enrolled in higher education; incoming students, who are
    currently subject to the provision, would be exempted.

        Lastly, the Administration proposes that military personnel on
    active duty automatically be considered as independent for the purpose
    of determining eligibility for federal student aid.

        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)

    ----------------------------------------------------------------------------
                                             2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    Program Cost:
    FFEL:
      Liquidating \1\.......................   (179,625)   (834,864)   (712,601)
      Program:
        Regular.............................   3,943,225   4,463,212   4,241,830
        Consolidation.......................   5,658,390   5,648,276   2,314,494
        Reestimate of Prior Year Costs...... (3,620,994)     592,658           0
        Non-Contractual Modifications \2\...           0   1,039,778           0
                                               ---------   ---------  ----------
          Subtotal, Program.................   5,980,621  11,743,924   6,556,324
                                               ---------   ---------  ----------
            Total FFEL......................   5,800,996  10,909,060   5,843,723
    Direct Loans:
      Program:
        Regular.............................   (105,725)   (116,253)   (400,914)
        Consolidation.......................    (63,649)      27,614   (268,512)

    [[Page 370]]

        Reestimate of Prior Year Costs......   2,626,596   1,011,844           0
        Non-Contractual Modifications \2\...           0   (286,212)           0
            Total, Direct Loans.............   2,457,222     636,994   (669,425)
            Total, FFEL and Direct Loans....   8,258,218  11,546,054   5,174,298
              Program Cost Outlays:

    FFEL:
      Liquidating \1\.......................   (476,011)   (784,247)   (712,601)
      Program:
        Regular.............................   3,280,069   3,739,398   3,760,575
        Consolidation.......................   5,615,746   5,605,227   2,298,306
        Reestimate of Prior Year Costs...... (3,620,994)     592,658           0
        Non-Contractual Modifications \2\...           0   1,039,778           0
                                               ---------   ---------  ----------
          Subtotal, Program.................   5,274,822  10,977,062   6,058,881
                                               ---------   ---------  ----------
            Total, FFEL.....................   4,798,810  10,192,814   5,346,280
    Direct Loans:
      Program:
        Regular.............................   (105,725)   (116,253)   (400,914)
        Consolidation.......................    (63,649)      27,614   (268,512)
        Reestimate of Prior Year Costs......   2,626,596   1,011,844           0
        Non-Contractual Modifications \2\...           0   (286,212)           0
                                               ---------   ---------  ----------
            Total, Direct Loans.............   2,457,222     636,994   (669,425)
            Total, FFEL and Direct Loans....   7,256,032  10,829,808   4,676,854
    ---------------------------------------------------------------------------
        \1\ Liquidating account reflects loans made prior to 1992.
        \2\ Reflects the cost or savings associated with policy changes that
    would affect the terms of existing loans.

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

    ----------------------------------------------------------------------------
                                               2004 est.   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................      17,592      18,847      20,363
      Unsubsidized Stafford.................      16,531      18,208      20,057
      PLUS..................................       5,143       5,898       6,578
                                               ---------   ---------  ----------
        Subtotal............................      39,266      42,953      46,997
      Consolidation.........................      35,947      34,737      25,326
                                               ---------   ---------  ----------
        Total, FFEL.........................      75,212      77,690      72,323
    Direct Loans:
      Stafford..............................       5,972       6,295       6,793
      Unsubsidized Stafford.................       4,761       5,141       5,710
      PLUS..................................       2,107       2,425       2,685
                                               ---------   ---------  ----------
        Subtotal............................      12,840      13,860      15,188
      Consolidation.........................       7,782       9,036       7,620
                                               ---------   ---------  ----------
        Total, Direct Loans.................      20,622      22,896      22,808
        Total, All Loans....................      95,834     100,586      95,131
    ---------------------------------------------------------------------------
        \1\ Net commitments equal gross commitments minus loan cancellations.

                           Number of Loans (in thousands)

    ----------------------------------------------------------------------------
                                               2004 est.   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................       5,098       5,439       5,645
      Unsubsidized Stafford.................       3,887       4,224       4,436
      PLUS..................................         565         617         656
                                               ---------   ---------  ----------
        Subtotal............................       9,550      10,279      10,738
      Consolidation.........................       1,243       1,185         826
                                               ---------   ---------  ----------
        Total, FFEL.........................      10,793      11,464      11,564
    Direct Loans:
      Stafford..............................       1,625       1,679       1,741
      Unsubsidized Stafford.................       1,132       1,184       1,245
      PLUS..................................         244         265         281
                                               ---------   ---------  ----------
        Subtotal............................       3,001       3,128       3,267
      Consolidation.........................         331         374         316
                                               ---------   ---------  ----------
        Total, Direct Loans.................       3,331       3,502       3,582
        Total, All Loans....................      14,125      14,966      15,146
    ---------------------------------------------------------------------------

                        Average Loan Size (in whole dollars)

    ----------------------------------------------------------------------------
                                               2004 est.   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    FFEL:
      Stafford..............................       3,450       3,465       3,607
      Unsubsidized Stafford.................       4,253       4,311       4,521
      PLUS..................................       9,103       9,565      10,024
                                               ---------   ---------  ----------
        Weighted Average, without
          Consolidations....................       4,111       4,179       4,377
                                               ---------   ---------  ----------
      Consolidation.........................      28,925      29,323      30,662
                                               ---------   ---------  ----------
        Weighted Average, FFEL..............       6,968       6,777       6,254
    Direct Loans:
      Stafford..............................       3,675       3,750       3,901
      Unsubsidized Stafford.................       4,205       4,341       4,586
      PLUS..................................       8,651       9,157       9,573
                                               ---------   ---------  ----------
        Weighted Average, without
          Consolidations....................       4,279       4,431       4,649
                                               ---------   ---------  ----------
      Consolidation.........................      23,543      24,161      24,138
                                               ---------   ---------  ----------
        Weighted Average, Direct Loans......       6,190       6,538       6,367
        Weighted Average, All Loans.........       6,785       6,721       6,281
    ---------------------------------------------------------------------------

                   Summary of Subsidy, Default and Interest Rates

    ----------------------------------------------------------------------------
                                               2004 est.   2005 est.   2006 est.
    ----------------------------------------------------------------------------

         Subsidy Rates (in percent) \1\

    FFEL:
      Stafford..............................       15.41       16.82       16.26
      Unsubsidized Stafford.................        3.91        3.44        1.67
      PLUS..................................        1.62        1.53        0.74
      Consolidation.........................       14.42       16.12        9.06
        Weighted Average, FFEL..............       11.40       11.96        8.22
    Direct Loans:
      Stafford..............................        4.55        5.15        3.65
      Unsubsidized Stafford.................       -5.00       -6.64       -9.88
      PLUS..................................       -4.91       -5.08       -7.85
      Consolidation.........................       -0.81        0.31       -3.54
        Weighted Average, Direct Loans......       -0.61       -0.53       -3.51
         Default Rates (in percent) \2\

    FFEL:
      Stafford..............................       13.02       13.00       13.25
      Unsubsidized Stafford.................       12.38       12.40       12.38
      PLUS..................................        6.39        6.40        6.39
      Consolidation.........................       14.53       14.48       14.70
        Weighted Average, FFEL..............       13.15       13.02       12.89
    Direct Loans:
      Stafford..............................       11.58       11.67       11.85
      Unsubsidized Stafford.................       11.52       11.62       11.56
      PLUS..................................        5.49        5.54        5.54
      Consolidation.........................       27.98       26.85       31.19
        Weighted Average, Direct Loans......       17.13       17.00       17.50
    Borrower Interest Rates (in percent) \3\

    FFEL:
      Stafford..............................        6.55        6.63        6.68
      Unsubsidized Stafford.................        6.55        6.63        6.68
      PLUS..................................        5.89        6.40        6.93
      Consolidation (reflects Sub and Unsub
        Stafford only)......................        3.77        4.03        5.55
    Direct Loans:
      Stafford..............................        6.50        6.72        6.79
      Unsubsidized Stafford.................        6.50        6.72        6.79
      PLUS..................................        5.54        5.88        6.39
      Consolidation (reflects Sub and Unsub
        Stafford only)......................        4.20        4.64        5.80
    ---------------------------------------------------------------------------
        \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 two years of repayment to determine institutional eligibility to
    participate in Federal loan programs. These two-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.

        FFEL program payments are made to lenders (interest subsidies, loan
    defaults and discharges) and guaranty agencies (default collection
    costs, administrative services). These payments are partially offset by
    borrower origination fees and lender fees for originations and an annual
    consolidation loan holder fee. In Direct Loans, cash outflows are
    primarily payments to Treasury. Cash inflows include principal and
    interest payments on outstanding Direct Loans.

    [[Page 371]]

        The following table shows government payments to and from lenders,
    guaranty agencies, and borrowers for specific years, regardless of when
    loans were originated. These flows do not reflect long-term costs to the
    government, nor the value of outstanding loan assets: these are
    reflected in credit reform subsidy estimates. For example, collections
    on defaulted FFEL loans due to Consolidation produce a current-year cash
    inflow and a long-term cost associated with re-default risk and future
    lender interest subsidy payments.

        The Federal Credit Reform Act of 1990 accounts for differences in
    the amount and timing of cash flows among direct and guaranteed loan
    programs to make cost estimates for these programs comparable with each
    other and other federal programs.

            Selected Program Costs and Offsets (in thousands of dollars)

    ----------------------------------------------------------------------------
                                            2004 actual    2005 est.   2006 est.
    ----------------------------------------------------------------------------
    FFEL:
    Payments to lenders
      Interest benefits.....................  1,494,541    1,688,024   2,532,291
      Special allowance payments............  1,205,198    3,094,827   3,836,276
      Default claims........................  2,943,297    4,185,304   4,741,575
      Loan discharges.......................    736,013      920,881   1,077,049
      Teacher loan forgiveness..............     10,181       12,977      20,591
    Payments to guaranty agencies
      Loan processing and issuance fees.....    175,950      150,592     161,426
      Account maintenance fees..............    195,000      195,000     195,000
      Other administrative payments.........    241,683      304,947     356,051
    Fees paid to the Department of Education
      Borrower origination fees.............(1,060,400)  (1,258,028) (1,360,839)
      Lender origination fees...............  (361,786)    (383,597)   (384,964)
      Sallie Mae offset fees................   (24,683)
      Loan holder fees......................(1,015,647)  (1,369,786) (1,551,806)
    Other Major Transactions
      Net default collections...............(4,001,348)  (3,829,167) (4,182,454)
      Contract collection costs.............    126,260      118,557     118,874
      Federal administrative costs..........    231,597      229,463     238,147
    Net Cash Flow, FFEL                         895,857    4,057,994   5,797,217

    Direct Loans
      Loan disbursements to borrowers....... 20,341,765   22,865,881  22,516,080
      Borrower interest payments............(1,643,021)  (2,812,403) (3,352,109)
      Borrower principal payments...........(15,765,785)
                                                         (15,070,843)
                                                                    (11,953,989)
      Borrower origination fees.............  (391,678)    (431,390)   (466,415)
      Net default collections...............  (667,758)  (1,498,086) (1,828,952)
      Contract collection costs.............     81,373      121,598     145,254
      Federal administrative costs..........    388,528      396,336     407,292

      Net Operating Cash Flows..............  2,343,423    3,571,094   5,467,161

      Loan capital borrowings from Teasury..(20,341,765)
                                                         (22,865,881)
                                                                    (22,516,080)
      Net interest payments to Treasury.....  4,763,027    5,490,828   6,035,175
      Principal payments to Treasury........ 12,592,340   14,049,306  11,182,230
      Subtotal Treasury activity............(2,986,398)  (3,325,748) (5,298,676)
    Net Cash Flow, Direct Loans               (642,975)      245,346     168,485
        Details may not sum to total due to rounding.

        The following chart compares total FFEL and Direct Loan costs on a
    subsidy rate basis: program costs calculated under the Federal Credit
    Reform Act of 1990 and comparably projected estimates of Federal
    administrative costs, including expenses related to FFEL program
    oversight and servicing the Direct Loan portfolio. As with any long-term
    projection, the comparison is based on assumed future interest rates,
    borrower characteristics, administrative costs, and other factors over
    the life of the loan cohort. To the degree actual conditions differ from
    projections, estimated subsidy rates will change.

       Student Loan Program Costs: Comparative Analysis Including Program and
                 Administrative Activities (in thousands of dollars)

    ----------------------------------------------------------------------------
                                             2004 actual   2005 est.   2006 est.
                      FFEL

        Program costs: \1\
            Interest subsidies..............       13.01       13.48       10.28
            Interest income.................        0.00        0.00        0.00
            Net defaults....................        1.06        0.91        0.83
            Fees............................       -5.42       -5.15       -5.53
            Other...........................        2.74        2.72        2.64
                                               ---------   ---------  ----------
              Total.........................       11.40       11.96        8.22
          Federal administrative costs......        0.69        0.69        0.69
                                               ---------   ---------  ----------
              Total.........................       12.09       12.65        8.91
        Total adjusted cost:
                  Direct Loans

        Program costs: \1\
            Interest subsidies and income,
              net...........................       -5.62       -5.52       -8.12
            Net Defaults....................        1.70        1.48        1.71
            Fees............................       -2.02       -1.98       -2.17
            Other...........................        5.33        5.49        5.06
                                               ---------   ---------  ----------
              Total.........................       -0.61       -0.53       -3.51
          Federal administrative costs......        1.45        1.45        1.45
                                               ---------   ---------  ----------
              Total adjusted cost...........        0.84        0.92       -2.06
    ---------------------------------------------------------------------------
        \1\ Fees primarily reflect borrower origination fees and, in FFEL,
    lender origination and consolidation loan holder fees. Other primarily
    reflects loan discharges due to death, disability, or bankruptcy.

        The Federal Credit Reform Act of 1990 requires the cost of existing
    loan cohorts to be reestimated to reflect changes in actual and assumed
    borrower behavior, interest rates, and other factors. The following
    table shows the impact of these reestimates in FFEL and Direct Loans.

                       Loan Disbursement and Subsidy Costs

                         Total Subsidy Costs--1992-2004

                                            FFEL     Direct Loans
    Original Subsidy Costs..............+$46 billion -$2 billion
    Cumulative Reestimates.............. -$7 billion +$5 billion
    1992-2004 Subsidy Costs.............+$39 billion +$3 billion
        Total Disbursements.............$413 billion$146 billion

        Changes in interest rate projections are a significant factor in
    FFEL and Direct Loan reestimates; recent declines in interest rates
    below historical averages have accordingly been a major driver in
    changes to program costs. Changes in borrower behavior (notably,
    prepayment of loans through consolidation and reduction in defaults)
    have also contributed to these reestimates. The average lifetime subsidy
    rate for all outstanding FFEL loans after the most recent reestimate is
    9.40; the comparable Direct Loan rate is 1.76. For the oldest loan
    cohorts, many of the subsidy costs have been expended (e.g., in-school
    interest subsidies).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          48          51
    11.3    Other than full-time permanent..           2
    11.5    Other personnel compensation....           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          51          52
    12.1  Civilian personnel benefits.......          12          13
    21.0  Travel and transportation of
            persons.........................           3           4
    23.1  Rental payments to GSA............           7           7
    23.3  Communications, utilities, and
            miscellaneous charges...........          17           8
    24.0  Printing and reproduction.........           4           4
    25.1  Advisory and assistance services..           4           2
    25.2  Other services....................          22          32
    25.3  Other purchases of goods and
            services from Government
            accounts........................          11           4
    25.6  Training..........................           2          11
    25.7  Operation and maintenance of
            equipment.......................         467         459
    26.0  Supplies and materials............           1           1
    31.0  Equipment.........................           3           2
    32.0  Land and structures...............                       1
    41.0  Grants, subsidies, and
            contributions...................       2,924       1,880
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,528       2,480
    ---------------------------------------------------------------------------

    [[Page 372]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         607         607
    ---------------------------------------------------------------------------

                   Federal Direct Student Loan Program Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-4-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)--
              negative subsidy..............                     335          53
    69.00   Offsetting collections (cash)--
              downward reestimate, principal
    69.00   Offsetting collections (cash)--
              downward reestimate,interest..
    69.00   Offsetting collections (cash)--
              admin.........................
    69.27   Capital transfer to general fund                    -335         -53
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                    -335         -53
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                    -335         -53
    90.00 Outlays...........................                    -335         -53
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 91-0243-4-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Stafford..........................                                 274
    115002Unsubsidized Stafford.............                                 262
    115003PLUS..............................                                   2
    115004Consolidation.....................                                 111
                                               ---------   ---------  ----------
    115901Total direct loan levels..........                                 649
        Direct loan subsidy (in percent):
    132001Stafford..........................                               -0.68
    132002Unsubsidized Stafford.............                                0.89
    132003PLUS..............................                               -0.10
    132004Consolidation.....................                               -0.55
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....                               -0.15
        Direct loan subsidy budget authority:
    133001Stafford..........................                                 -39
    133002Unsubsidized Stafford.............                                  30
    133003PLUS..............................                                  -3
    133004Consolidation.....................                                 -46
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....                                 -58
        Direct loan subsidy outlays:
    134001Stafford..........................                                 -24
    134002Unsubsidized Stafford.............                                  18
    134003PLUS..............................                                  -2
    134004Consolidation.....................                                 -45
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............                                 -53
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Stafford..........................
    135002Unsubsidized Stafford.............
    135003PLUS..............................
    135004Consolidation.....................
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Stafford..........................
    137002Unsubsidized Stafford.............
    137003PLUS..............................
    137004Consolidation.....................
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................
    ----------------------------------------------------------------------------

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

              Federal Direct Student Loan Program Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Obligations...........      21,936      24,480      23,881
    02.01 Interest rate rebate, Stafford....          87          93          97
    02.02 Interest rate rebate, Unsubsidized
            Stafford........................          69          76          81
    02.03 Interest rate rebate, PLUS........          31          35          39
                                               ---------   ---------  ----------
    02.91   Direct Program by Activities--
              Subtotal (1 level)............         187         204         217
    03.01 Consolidation loans-Payment of
            Orig. Services..................          18          21          19
    04.01 Payment of contract collections...          81         122         145
    05.01 Interest payment to Treasury......       5,761       5,491       6,025
    08.01 Obligation of negative subsidy....         135         130         803
    08.02 Payment of downward reestimate to
            program account.................         103         624
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         238         754         803
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      28,221      31,072      31,090
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         503         938
    22.00 New financing authority (gross)...      29,258      31,072      31,090
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       2,899       2,456       1,827
    22.60 Portion applied to repay debt.....      -1,237        -938
    22.70 Balance of authority to borrow
            withdrawn.......................      -2,264      -2,456      -1,827
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      29,159      31,072      31,090
    23.95 Total new obligations.............     -28,221     -31,072     -31,090
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         938
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............      22,383      25,234      24,684
    69.00 Offsetting collections (cash).....      22,195      21,498      17,593
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
    69.27 Capital transfer to general fund
            (for modification adj transfer).                      -1
    69.47 Portion applied to repay debt.....     -15,322     -15,659     -11,187
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       6,875       5,838       6,406
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      29,258      31,072      31,090
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       7,459       6,631       6,035
    73.10 Total new obligations.............      28,221      31,072      31,090
    73.20 Total financing disbursements
            (gross).........................     -26,148     -29,212     -28,970
    73.45 Recoveries of prior year
            obligations.....................      -2,899      -2,456      -1,827
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       6,631       6,035       6,328
    87.00 Total financing disbursements
            (gross).........................      26,148      29,212      28,970
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Upward reestimate.............      -2,102      -1,262
    88.00     Upward reestimate, interest...        -627        -374
    88.00     Modification..................                     -49
    88.25     Interest on uninvested funds..        -998
    88.40     Repayment of principal,
                Stafford....................      -5,839      -5,672      -4,280
    88.40     Interest received on loans,
                Stafford....................        -348        -521        -699
    88.40     Origination Fees, Stafford....        -183        -186        -194
    88.40     Other fees, Stafford..........         -20

    [[Page 373]]

    88.40     Repayment of principal,
                Unsubsidized Stafford.......      -4,451      -4,547      -3,482
    88.40     Interest received on loans,
                Unsubsidized Stafford.......        -395        -364        -508
    88.40     Origination Fees, Unsubsidized
                Stafford....................        -145        -151        -161
    88.40     Other fees, Unsubsidized
                Stafford....................         -11
    88.40     Repayment of principal, PLUS..      -1,466      -1,572      -1,404
    88.40     Interest received on loans,
                PLUS........................        -178        -213        -324
    88.40     Origination Fees, PLUS........         -64         -94        -104
    88.40     Other fees, PLUS..............          -3
    88.40     Payment of principal,
                Consolidation...............      -4,386      -4,428      -4,167
    88.40     Interest received on loans,
                Consolidation...............        -955      -2,065      -2,270
    88.40     Other fees, Consolidation.....         -24
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -22,195     -21,498     -17,593
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       7,061       9,574      13,497
    90.00 Financing disbursements...........       3,953       7,714      11,377
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        STAFFORD
          Position with respect to appropriations act
              limitation on obligations:

    1111    Limitation on direct loans......
    1131    Direct loan obligations exempt
              from limitation...............       6,615       6,948       7,235
                                               ---------   ---------  ----------
    1150      Total direct loan obligations.       6,615       6,948       7,235
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......      27,420      27,458      27,934
    1231    Disbursements: Direct loan
              disbursements.................       5,852       6,213       6,471
    1251    Repayments: Repayments and
              prepayments...................      -5,839      -5,672      -4,281
    1261    Adjustments: Capitalized
              interest......................         108
    1264    Write-offs for default: Other
              adjustments, net..............         -83         -65         -71
                                               ---------   ---------  ----------
    1290      Outstanding, end of year......      27,458      27,934      30,053
    ----------------------------------------------------------------------------

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

    1111    Limitation on direct loans......
    1131    Direct loan obligations exempt
              from limitation...............       5,217       5,841       6,229
                                               ---------   ---------  ----------
    1150      Total direct loan obligations.       5,217       5,841       6,229
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......      19,098      19,554      20,352
    1231    Disbursements: Direct loan
              disbursements.................       4,616       5,039       5,375
    1251    Repayments: Repayments and
              prepayments...................      -4,451      -4,547      -3,482
    1261    Adjustments: Capitalized
              interest......................         350         362         422
    1264    Write-offs for default: Other
              adjustments, net..............         -59         -56         -63
                                               ---------   ---------  ----------
    1290      Outstanding, end of year......      19,554      20,352      22,604
    ----------------------------------------------------------------------------

        PLUS
          Position with respect to appropriations act
              limitation on obligations:

    1111    Limitation on direct loans......
    1131    Direct loan obligations exempt
              from limitation...............       2,302       2,535       2,806
                                               ---------   ---------  ----------
    1150      Total direct loan obligations.       2,302       2,535       2,806
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......       4,495       5,078       5,805
    1231    Disbursements: Direct loan
              disbursements.................       2,038       2,346       2,596
    1251    Repayments: Repayments and
              prepayments...................      -1,467      -1,572      -1,404
    1261    Adjustments: Capitalized
              interest......................          24
    1264    Write-offs for default: Other
              adjustments, net..............         -12         -47         -55
                                               ---------   ---------  ----------
    1290      Outstanding, end of year......       5,078       5,805       6,942
    ----------------------------------------------------------------------------

        CONSOLIDATION
          Position with respect to appropriations act
              limitation on obligations:

    1111    Limitation on direct loans......
    1131    Direct loan obligations exempt
              from limitation...............       7,802       9,156       7,611
                                               ---------   ---------  ----------
    1150      Total direct loan obligations.       7,802       9,156       7,611
    ----------------------------------------------------------------------------

          Cumulative balance of direct loans
              outstanding:

    1210    Outstanding, start of year......      33,507      37,155      41,609
    1231    Disbursements: Direct loan
              disbursements.................       7,649       9,064       7,506
    1251    Repayments: Repayments and
              prepayments...................      -4,386      -4,428      -4,167
    1261    Adjustments: Capitalized
              interest......................         487
    1264    Write-offs for default: Other
              adjustments, net..............        -102        -182        -207
                                               ---------   ---------  ----------
    1290      Outstanding, end of year......      37,155      41,609      44,741
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4253-0-3-502

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    992

    1,672

            Investments in US securities:
    1106

    Receivables, net

    4,223

    1,218

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    84,520

    89,245

    1402

    Interest receivable

    2,771

    2,858

    1405

    Allowance for subsidy cost (-)

    -657

    1,644

    1499

    Net present value of assets related to direct loans

    86,634

    93,747

    1999

    Total assets

    91,849

    96,637

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    62

    217

    2103

    Debt

    91,787

    96,420

    2999

    Total liabilities

    91,849

    96,637

    4999

    Total liabilities and net position

    91,849

    96,637

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

        The Balance Sheet, above, provides information on program assets,
    liabilities, and net position consistent with the audited financial
    statements.

        Receivables, line 1106, are primarily upward reestimates prepared
    for financial statements; an identical offsetting amount is recorded in
    the Allowance for Subsidy, line 1405. The value of total Department
    assets is unchanged but will be reduced when reestimates developed for
    this budget are executed. Differences between reestimates prepared for
    financial statements and for this budget result from updated economic
    (interest rates) and technical assumptions. Revised assumptions may
    significantly change reestimate amounts; differences will be reflected
    in subsequent financial statements.

        Direct Loans receivable, line 1401 reflects the nominal unpaid
    principal balance, including capitalized interest. Interest Receivable,
    line 1402, includes only non-capitalized interest. A positive Allowance
    for Subsidy, line 1405, indicates the outstanding portfolio (including
    the Financial Statements' reestimates) has a negative subsidy,
    increasing the portfolio's net present value; the 2003 negative value
    represents the reverse.

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

              Federal Direct Student Loan Program Financing Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-4-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Obligations...........                                 649
    02.01 Interest rate rebate, Stafford....                                   2
    02.02 Interest rate rebate, Unsubsidized
            Stafford........................                                   2
    05.01 Interest payment to Treasury......                                  10
    08.01 Obligation of negative subsidy....                                  58
    08.05 Obligation of modification,
            negative........................                     335
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                     335         721
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                     335         721

    [[Page 374]]

    23.95 Total new obligations.............                    -335        -721
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                      26
    67.10   Authority to borrow.............                     335         708
    69.00 Offsetting collections (cash).....                                   9
    69.47 Portion applied to repay debt.....                     -26           4
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................                     -26          13
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                     335         721
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                 335
    73.10 Total new obligations.............                     335         721
    73.20 Total financing disbursements
            (gross).........................                                -415
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                     335         641
    87.00 Total financing disbursements
            (gross).........................                                 415
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.40     Repayment of principal,
                Stafford....................
    88.40     Interest received on loans,
                Stafford....................
    88.40     Origination Fees, Stafford....                                  -4
    88.40     Other fees, Stafford..........
    88.40     Repayment of principal,
                Unsubsidized Stafford.......
    88.40     Interest received on loans,
                Unsubsidized Stafford.......
    88.40     Origination Fees, Unsubsidized
                Stafford....................                                  -4
    88.40     Other fees, Unsubsidized
                Stafford....................
    88.40     Repayment of principal, PLUS..
    88.40     Interest received on loans,
                PLUS........................
    88.40     Origination Fees, PLUS........
    88.40     Other fees, PLUS..............
    88.40     Payment of principal,
                Consolidation...............                                  -2
    88.40     Interest received on loans,
                Consolidation...............                                   1
    88.40     Other fees, Consolidation.....
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                  -9
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     335         712
    90.00 Financing disbursements...........                                 406
    ---------------------------------------------------------------------------

                  Federal Family Education Loan Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........       9,602      10,111       7,241
    00.04 Modification subsidy..............                     148
    00.07 Upward reestimate, principal......         216       1,948
    00.08 Upward reestimate, interest.......         129          85
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       9,947      12,292       7,241
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       9,947      12,292       7,241
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         465         557         540
    22.40 Capital transfer to general fund..        -465        -557        -540
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       9,947      12,292       7,241
    23.95 Total new obligations.............      -9,947     -12,292      -7,241
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       9,947      12,292       7,241
    69.00 Offsetting collections (cash)--
            downward reestimate.............       3,966       1,440
    69.27 Capital transfer to general fund..      -3,966      -1,440
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       9,947      12,292       7,241
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,506       1,745       1,955
    73.10 Total new obligations.............       9,947      12,292       7,241
    73.20 Total outlays (gross).............      -9,242     -11,525      -6,543
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................        -465        -557        -540
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,745       1,955       2,113
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1
    86.97 Outlays from new mandatory
            authority.......................       8,204      10,339       5,215
    86.98 Outlays from mandatory balances...       1,037       1,186       1,328
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       9,242      11,525       6,543
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........      -3,966      -1,440
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,981      10,852       7,241
    90.00 Outlays...........................       5,275      10,085       6,543
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................       5,981      10,852       7,241
      Outlays...........................       5,276      10,085       6,543
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                     892        -685
      Outlays...........................                     892        -484
                                        ------------------------------------
    Total:
      Budget Authority..................       5,981      11,744       6,556
      Outlays...........................       5,276      10,977       6,059
                                        ====================================

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

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Stafford..........................      20,124      21,573      22,460
    215002Unsubsidized Stafford.............      19,191      21,316      22,770
    215003PLUS..............................       5,664       6,620       7,379
    215004Consolidation.....................      39,240      35,039      25,527
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......      84,219      84,548      78,136
        Guaranteed loan subsidy (in percent):
    232001Stafford..........................       15.41       16.82       18.34
    232002Unsubsidized Stafford.............        3.91        3.44        2.14
    232003PLUS..............................        1.62        1.53        1.46
    232004Consolidation.....................       14.42       16.12        9.90
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       11.40       11.96        9.27
        Guaranteed loan subsidy budget authority:
    233001Stafford..........................       3,101       3,629       4,119
    233002Unsubsidized Stafford.............         751         733         487
    233003PLUS..............................          92         101         108
    233004Consolidation.....................       5,658       5,648       2,527
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....       9,602      10,111       7,241
        Guaranteed loan subsidy outlays:
    234001Stafford..........................       2,490       3,020       3,454
    234002Unsubsidized Stafford.............         689         632         486
    234003PLUS..............................         101          88          94
    234004Consolidation.....................       5,616       5,605       2,509
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............       8,896       9,345       6,543
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Stafford..........................       1,464          60
    235002Unsubsidized Stafford.............
    235003PLUS..............................           2           1
    235004Consolidation.....................         634       2,074
    235005SLS...............................                       2
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................       2,100       2,137

    [[Page 375]]

        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Stafford..........................        -364        -384
    237002Unsubsidized Stafford.............      -2,691        -334
    237003PLUS..............................        -625         -32
    237004Consolidation.....................      -1,542        -793
    237005SLS...............................        -499          -1
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................      -5,721      -1,544
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................
    359001Outlays...........................           1
    ---------------------------------------------------------------------------

        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. 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.

                  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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........                                -685
    00.04 Modification subsidy..............                     892
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                     892        -685
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     892        -685
    23.95 Total new obligations.............                    -892         685
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                     892        -685
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                     892        -685
    73.20 Total outlays (gross).............                    -892         484
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                -201
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     892        -484
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     892        -685
    90.00 Outlays...........................                     892        -484
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 91-0231-4-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Stafford..........................                                 880
    215002Unsubsidized Stafford.............                                 712
    215003PLUS..............................                                   6
    215004Consolidation.....................                                  20
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                               1,618
        Guaranteed loan subsidy (in percent):
    232001Stafford..........................                               -2.08
    232002Unsubsidized Stafford.............                               -0.47
    232003PLUS..............................                               -0.72
    232004Consolidation.....................                               -0.84
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....                               -1.05
        Guaranteed loan subsidy budget authority:
    233001Stafford..........................                                -324
    233002Unsubsidized Stafford.............                                 -95
    233003PLUS..............................                                 -53
    233004Consolidation.....................                                -213
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                                -685
        Guaranteed loan subsidy outlays:
    234001Stafford..........................                                -190
    234002Unsubsidized Stafford.............                                 -54
    234003PLUS..............................                                 -30
    234004Consolidation.....................                                -210
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                                -484
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Stafford..........................
    235002Unsubsidized Stafford.............
    235003PLUS..............................
    235004Consolidation.....................
    235005SLS...............................
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Stafford..........................
    237002Unsubsidized Stafford.............
    237003PLUS..............................
    237004Consolidation.....................
    237005SLS...............................
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................
    ----------------------------------------------------------------------------

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

             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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.01   Interest benefits...............       1,187       1,435       2,274
    01.02   Special allowance...............         500         965         751
    01.03   Default claims..................       1,325       1,424       1,487
    01.04   Death, disability, and
              bankruptcy claims.............         175         157         170
    01.05   Teacher loan forgiveness, other
              write-offs....................           5           7          12
    01.07   Contract collection costs.......          24          34          37
    01.08   Loan Processing Fee.............          80          66          68
    01.09   Voluntary flexible agreement
              performance fee...............          94         164         192
                                               ---------   ---------  ----------
    01.91     Subtotal, Stafford loans......       3,390       4,252       4,991
          Unsubsidized Stafford loans:

    02.02   Special allowance...............         361         781         633
    02.03   Default claims..................         837       1,061       1,199
    02.04   Death, disability, and
              bankruptcy claims.............         132         146         169
    02.05   Teacher loan forgiveness, other
              write-offs....................           5           6           9
    02.07   Contract collection costs.......          14          11          15
    02.08   Loan Processing Fee.............          74          64          68
    02.09   Voluntary flexible agreement
              performance fee...............          57          52          60
                                               ---------   ---------  ----------
    02.91     Subtotal, Unsubsidized
                Stafford loans..............       1,480       2,121       2,153
          PLUS loans:

    03.02   Special allowance...............          20          17          15
    03.03   Default claims..................          70         146         172
    03.04   Death, disability, and
              bankruptcy claims.............          62         108         127
    03.07   Contract Collection Costs.......           2           1           1
    03.08   Loan Processing Fee.............          22          21          23
    03.09   Voluntary flexible agreement
              performance fee...............           7           8           9
                                               ---------   ---------  ----------
    03.91     Subtotal, PLUS loans..........         183         301         347
          SLS loans:

    04.02   Special allowance...............           2
    04.03   Default claims..................          28           1           3
    04.04   Death, disability and bankruptcy
              claims........................           8           3           2
    04.07   Contract collection costs.......           8           4           4
    04.08   Voluntary flexible agreement
              performance fee...............           4           4           5
                                               ---------   ---------  ----------

    [[Page 376]]

    04.91   Subtotal, SLS loans.............          50          12          14
          Consolidation loans:

    05.01   Interest benefit................         291         240         265
    05.02   Special allowance...............         319       1,325       2,444
    05.03   Default claims..................         617       1,503       1,856
    05.04   Death, disability, and
              bankruptcy claims.............         335         490         596
    05.07   Contract collection costs.......           6          12          15
    05.08   Voluntary flexible agreement
              performance fee...............          67          49          57
                                               ---------   ---------  ----------
    05.91     Subtotal, Consolidations loans       1,635       3,619       5,233
    08.02 Payment of downward reestimate to
            Program accnt...................       3,494       1,046
    08.04 Interest on downward reestimate...         472         394
                                               ---------   ---------  ----------
    08.91   Downward Reestimate- Subtotal (1
              level)........................       3,966       1,440
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      10,704      11,745      12,738
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       9,262      14,190      20,846
    22.00 New financing authority (gross)...      15,484      18,401      14,356
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         148
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      24,894      32,591      35,202
    23.95 Total new obligations.............     -10,704     -11,745     -12,738
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........      14,190      20,846      22,464
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...      15,484      18,404      14,356
    69.27   Capital transfer to general fund                      -3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      15,484      18,401      14,356
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         931       1,147       1,259
    73.10 Total new obligations.............      10,704      11,745      12,738
    73.20 Total financing disbursements
            (gross).........................     -10,340     -11,633     -12,632
    73.45 Recoveries of prior year
            obligations.....................        -148
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,147       1,259       1,365
    87.00 Total financing disbursements
            (gross).........................      10,340      11,633      12,632
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Payments from program account:
    88.00       Stafford loans..............      -2,490      -3,020      -3,454
    88.00       Unsubsidized Stafford.......        -689        -632        -486
    88.00       PLUS loans..................        -101         -87         -94
    88.00       Consolidated loans..........      -5,616      -5,605      -2,509
    88.00       Upward reestimate...........        -345      -2,033
    88.00       Modification................                    -148
    88.25     Interest on uninvested funds..        -436      -1,043      -1,265
              Student Loans: Stafford,
                  Unsubsidized Stafford,
                  PLUS, SLS & Consolidation:
    88.40       Stafford recoveries on
                  defaults..................      -1,453      -1,335      -1,476
    88.40       Stafford origination fees...        -561        -648        -678
    88.40       Stafford other fees.........         -39
    88.40       Stafford Sallie Mae offset
                  fees......................         -13
    88.40       Unsubsidized Stafford
                  recoveries on default.....        -738        -650        -788
    88.40       Unsubsidized Stafford
                  origination fees..........        -522        -621        -666
    88.40       Unsubsidized Stafford other
                  fees......................         -15
    88.40       Unsubsidized Stafford Sallie
                  Mae offset fees...........          -8
    88.40       PLUS recoveries on defaults.        -115        -101        -117
    88.40       PLUS origination fees.......        -155        -198        -221
    88.40       PLUS other fees.............          -4
    88.40       PLUS Sallie Mae offset fees.          -3
    88.40       SLS recoveries on defaults..        -120        -105         -95
    88.40       SLS other fees..............          -3
    88.40       Consolidation recoveries on
                  defaults..................        -299        -634        -864
    88.40       Consolidation origination
                  fees......................        -184        -174        -127
    88.40       Consolidation loan holders
                  fee.......................      -1,016      -1,370      -1,516
    88.40       Consolidation other fees....         -16
    88.40       Splitter adjustment from
                  Liquidating account.......        -543
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -15,484     -18,404     -14,356
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      -3
    90.00 Financing disbursements...........      -5,144      -6,771      -1,724
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-0-3-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        STAFFORD
          Position with respect to appropriations act
              limitation on commitments:

    2111    Limitation on guaranteed loans
              made by private lenders.......
    2131    Guaranteed loan commitments
              exempt from limitation........      20,124      21,573      22,460
                                               ---------   ---------  ----------
    2150      Total guaranteed loan
                commitments.................      20,124      21,573      22,460
    2199  Guaranteed amount of guaranteed
            loan commitments................      20,124      21,573      22,460
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......      69,011      72,302      75,919
    2231    Disbursements of new guaranteed
              loans.........................      17,024      18,525      19,361
    2251    Repayments and prepayments......     -12,229     -13,310      -9,853
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..      -1,325      -1,434      -1,503
    2263      Terminations for default that
                result in claim payments....        -175        -157        -170
    2264      Other adjustments, net........          -4          -7         -12
                                               ---------   ---------  ----------
    2290      Outstanding, end of year......      72,302      75,919      83,742
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year      72,302      75,919      83,742
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....       2,715       2,657       2,750
    2331      Disbursements for guaranteed
                loan claims.................       1,325       1,434       1,503
    2351      Repayments of loans receivable      -1,264      -1,335      -1,476
    2361      Write-offs of loans receivable          -6          -6          -6
    2364      Other adjustments, net........        -113
                                               ---------   ---------  ----------
    2390        Outstanding, end of year....       2,657       2,750       2,771
    ----------------------------------------------------------------------------

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

    2111    Limitation on guaranteed loans
              made by private lenders.......
    2131    Guaranteed loan commitments
              exempt from limitation........      19,191      21,316      22,770
                                               ---------   ---------  ----------
    2150      Total guaranteed loan
                commitments.................      19,191      21,316      22,770
    2199  Guaranteed amount of guaranteed
            loan commitments................      19,191      21,316      22,770
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......      50,194      56,221      60,335
    2231    Disbursements of new guaranteed
              loans.........................      15,893      17,750      19,039
    2251    Repayments and prepayments......      -8,892     -12,439      -9,702
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..        -837      -1,045      -1,199
    2263      Terminations for default that
                result in claim payments....        -132        -146        -169
    2264      Other adjustments, net........          -5          -6          -9
                                               ---------   ---------  ----------
    2290      Outstanding, end of year......      56,221      60,335      68,295
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year      56,221      60,335      68,295
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....       1,608       1,695       2,074
    2331      Disbursements for guaranteed
                loan claims.................         837       1,045       1,199
    2351      Repayments of loans receivable        -665        -651        -788
    2361      Write-offs of loans receivable         -13         -15         -18
    2364      Other adjustments, net........         -72
                                               ---------   ---------  ----------

    [[Page 377]]

    2390        Outstanding, end of year....       1,695       2,074       2,467
    ----------------------------------------------------------------------------

        PLUS
          Position with respect to appropriations act
              limitation on commitments:

    2111    Limitation on guaranteed loans
              made by private lenders.......
    2131    Guaranteed loan commitments
              exempt from limitation........       5,664       6,620       7,379
                                               ---------   ---------  ----------
    2150      Total guaranteed loan
                commitments.................       5,664       6,620       7,379
    2199  Guaranteed amount of guaranteed
            loan commitments................       5,664       6,620       7,379
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......      10,739      13,498      15,264
    2231    Disbursements of new guaranteed
              loans.........................       4,794       5,659       6,328
    2251    Repayments and prepayments......      -1,903      -3,648      -3,345
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..         -70        -137        -171
    2263      Terminations for default that
                result in claim payments....         -62        -108        -127
    2264      Other adjustments, net........
                                               ---------   ---------  ----------
    2290      Outstanding, end of year......      13,498      15,264      17,949
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year      13,498      15,264      17,949
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....         389         334         363
    2331      Disbursements for guaranteed
                loan claims.................          70         137         171
    2351      Repayments of loans receivable        -104        -101        -117
    2361      Write-offs of loans receivable          -7          -7          -8
    2364      Other adjustments, net........         -14
                                               ---------   ---------  ----------
    2390        Outstanding, end of year....         334         363         409
    ----------------------------------------------------------------------------

        SLS
          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......         511         384         202
    2251    Repayments and prepayments......         -91        -174         -73
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..         -28          -5          -2
    2263      Terminations for default that
                result in claim payments....          -8          -3          -2
    2264      Other adjustments, net........
                                               ---------   ---------  ----------
    2290      Outstanding, end of year......         384         202         125
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year         384         202         125
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....         537         414         287
    2331      Disbursements for guaranteed
                loan claims.................          28           5           2
    2351      Repayments of loans receivable         -92        -105         -95
    2361      Write-offs of loans receivable         -41         -27         -17
    2364      Other adjustments, net........         -18
                                               ---------   ---------  ----------
    2390        Outstanding, end of year....         414         287         177
    ----------------------------------------------------------------------------

        CONSOLIDATION
          Position with respect to appropriations act
              limitation on commitments:

    2111    Limitation on guaranteed loans
              made by private lenders.......
    2131    Guaranteed loan commitments
              exempt from limitation........      39,240      35,039      25,527
                                               ---------   ---------  ----------
    2150      Total guaranteed loan
                commitments.................      39,240      35,039      25,527
    2199  Guaranteed amount of guaranteed
            loan commitments................      39,240      35,039      25,227
    ----------------------------------------------------------------------------

          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......      79,017     100,176     124,341
    2231    Disbursements of new guaranteed
              loans.........................      36,119      34,785      25,299
    2251    Repayments and prepayments......     -14,008      -8,736      -9,020
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..        -617      -1,394      -1,834
    2263      Terminations for default that
                result in claim payments....        -335        -490        -596
                                               ---------   ---------  ----------
    2290      Outstanding, end of year......     100,176     124,341     138,190
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year     100,176     124,341     138,190
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....       1,870       2,148       2,887
    2331      Disbursements for guaranteed
                loan claims.................         617       1,394       1,834
    2351      Repayments of loans receivable        -231        -634        -864
    2361      Write-offs of loans receivable         -16         -21         -28
    2364      Other adjustments, net........         -92
                                               ---------   ---------  ----------
    2390        Outstanding, end of year....       2,148       2,887       3,829
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-4251-0-3-502

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    10,193

    15,337

            Investments in US securities:
    1106

    Receivables, net

    1,034

    1,972

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Defaulted guaranteed loans receivable, gross

    7,119

    7,247

    1502

    Interest receivable

    1,553

    1,580

    1505

    Allowance for subsidy cost (-)

    -1,312

    -1,416

    1599

    Net present value of assets related to defaulted guaranteed loans

    7,360

    7,411

    1999

    Total assets

    18,587

    24,720

        LIABILITIES:
    2101

    Federal liabilities: Accounts payable

    3,277

    1,506

    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    15,310

    23,214

    2999

    Total liabilities

    18,587

    24,720

    4999

    Total liabilities and net position

    18,587

    24,720

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

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Stafford loans:

    01.01   Interest benefits...............                                 -13
    01.02   Special allowance...............                                 -11
    01.08   Loan Processing Fee.............                                   1
                                               ---------   ---------  ----------
    01.91     Subtotal, Stafford loans......                                 -23
          Unsubsidized Stafford loans:

    02.02   Special allowance...............                                 -10
    02.08   Loan Processing Fee.............                                   1
                                               ---------   ---------  ----------
    02.91     Subtotal, Unsubsidized
                Stafford loans..............                                  -9
          PLUS loans:

    03.02   Special allowance...............                                  -1
          Consolidation loans:

    05.01   Interest benefit................                                  -2
    05.02   Special allowance...............                                  11
                                               ---------   ---------  ----------
    05.91     Subtotal, Consolidations loans                                   9
                                               ---------   ---------  ----------

    [[Page 378]]

    10.00   Total new obligations...........                                 -24
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                 940
    22.00 New financing authority (gross)...                     940        -356
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                     940         584
    23.95 Total new obligations.............                                  24
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                     940         608
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                      22
    69.00 Offsetting collections (cash).....                     915        -356
    69.27 Capital transfer to general fund..                       3
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................                     918        -356
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                     940        -356
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                 -24
    73.20 Total financing disbursements
            (gross).........................                                  21
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  -3
    87.00 Total financing disbursements
            (gross).........................                                 -21
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Payments from program account:
    88.00       Stafford loans..............                                 190
    88.00       Unsubsidized Stafford.......                                  54
    88.00       PLUS loans..................                                  30
    88.00       Consolidated loans..........                                 210
    88.00       Upward reestimate...........
    88.00       Modification................                    -892
    88.25     Interest on uninvested funds..                     -23         -37
              Student Loans: Stafford,
                  Unsubsidized Stafford,
                  PLUS, SLS & Consolidation:
    88.40       Stafford recoveries on
                  defaults..................
    88.40       Stafford origination fees...                                 -12
    88.40       Stafford other fees.........
    88.40       Stafford Sallie Mae offset
                  fees......................
    88.40       Stafford loanholder fee
                  (proposed)................                                 -17
    88.40       Unsubsidized Stafford
                  recoveries on default.....
    88.40       Unsubsidized Stafford
                  origination fees..........                                 -10
    88.40       Unsubsidized Stafford other
                  fees......................
    88.40       Unsubsidized Stafford Sallie
                  Mae offset fees...........
    88.40       Unsubsidized Stafford
                  loanholder fee (proposed).                                 -16
    88.40       PLUS recoveries on defaults.
    88.40       PLUS origination fees.......
    88.40       PLUS other fees.............
    88.40       PLUS Sallie Mae offset fees.
    88.40       PLUS loanholder fee
                  (proposed)................                                  -4
    88.40       SLS recoveries on defaults..
    88.40       SLS other fees..............
    88.40       Consolidation recoveries on
                  defaults..................
    88.40       Consolidation origination
                  fees......................                                 -32
    88.40       Consolidation loan holders
                  fee.......................
    88.40       Consolidation other fees....
    88.40       Splitter adjustment from
                  Liquidating account.......
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                    -915         356
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      25
    90.00 Financing disbursements...........                    -915         335
    ---------------------------------------------------------------------------

                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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Interest benefits, net of
            origination fees................          16          11           9
    01.02 Special allowance net of
            origination fees................           3           7           3
    01.03 Default claims....................          62          44          22
    01.04 Death, disability, and bankruptcy
            claims..........................          17          13           9
    01.05 Contract collection costs.........          62          47          40
    01.06 Voluntary flexible agreements.....          11          22          25
                                               ---------   ---------  ----------
    01.91   Subtotal, Stafford loans........         171         144         108
    02.01 Default claims....................           5           6           3
    02.02 Death, disability, and bankruptcy
            claims..........................           7           5           3
    02.05 Contract collection costs.........          12           9           8
    02.06 Voluntary flexible agreements.....           1           5           7
                                               ---------   ---------  ----------
    02.91   Subtotal, PLUS/SLS loans........          25          25          21
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         196         169         129
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         887         302
    22.00 New budget authority (gross)......         478         169         129
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          20
    22.40 Capital transfer to general fund..        -887        -302
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         498         169         129
    23.95 Total new obligations.............        -196        -169        -129
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         302
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          50
    69.00 Offsetting collections (cash).....         657       1,004         842
    69.27 Capital transfer to general fund..        -229        -835        -713
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         428         169         129
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         478         169         129
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          57          51
    73.10 Total new obligations.............         196         169         129
    73.20 Total outlays (gross).............        -182        -220        -129
    73.45 Recoveries of prior year
            obligations.....................         -20
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          51
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         125         169         129
    86.98 Outlays from mandatory balances...          57          51
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         182         220         129
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Fed collections on defaulted
                loans, Stafford.............        -214        -315        -264
    88.40     Federal collections on
                bankruptcies, Stafford......          -4          -3          -2
    88.40     Offsets against Federal tax
                refunds,Stafford............        -311        -238        -199
    88.40     Reimbursements from guaranty
                agencies, Stafford..........        -419        -261        -220
    88.40     Other collections/ fees,
                Stafford....................         -70         -29         -25
    88.40     Splitter adjustment...........         543
    88.40     Sallie Mae offset fee.........          -1
    88.40     Federal collections on
                defaulted loans, PLUS/SLS...         -65         -74         -62
    88.40     Federal collections on
                bankruptcies, PLUS/SLS......          -1          -1          -1
              PLUS/SLS loans:
    88.40       Offsets against Federal tax
                  refunds, PLUS/SLS.........         -24         -17         -15
    88.40       Reimbursements from guaranty
                  agencies, PLUS/SLS........         -91         -66         -54
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -657      -1,004        -842
    ----------------------------------------------------------------------------

    [[Page 379]]

        Net budget authority and outlays:
    89.00 Budget authority..................        -179        -835        -713
    90.00 Outlays...........................        -476        -784        -713
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        STAFFORD LOANS
          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......       2,431       1,745       1,505
    2251    Repayments and prepayments......        -607        -178         -74
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..         -62         -49         -45
    2263      Terminations for default that
                result in claim payments....         -17         -13          -9
    2264      Other adjustments, net........
                                               ---------   ---------  ----------
    2290      Outstanding, end of year......       1,745       1,505       1,377
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year       1,745       1,505       1,377
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....       8,864       8,822       8,344
    2331      Disbursements for guaranteed
                loan claims.................          62          49          45
    2351      Repayments of loans receivable        -514        -447        -375
    2361      Write-offs of loans receivable         -28         -28         -26
    2364      Other adjustments, net........         438         -52         -44
                                               ---------   ---------  ----------
    2390        Outstanding, end of year....       8,822       8,344       7,944
    ----------------------------------------------------------------------------

        PLUS/SLS LOANS
          Cumulative balance of guaranteed loans
              outstanding:

    2210    Outstanding, start of year......       1,252         928         813
    2251    Repayments and prepayments......        -313        -104         -88
            Adjustments:
    2261      Terminations for default that
                result in loans receivable..          -4          -6          -7
    2263      Terminations for default that
                result in claim payments....          -7          -5          -3
    2264      Other adjustments, net........
                                               ---------   ---------  ----------
    2290      Outstanding, end of year......         928         813         715
    ----------------------------------------------------------------------------

          Memorandum:

    2299    Guaranteed amount of guaranteed
              loans outstanding, end of year         928         813         715
    ----------------------------------------------------------------------------

          Addendum:

            Cumulative balance of defaulted
                guaranteed loans that result
                in loans receivable:
    2310      Outstanding, start of year....       1,692       1,502       1,257
    2331      Disbursements for guaranteed
                loan claims.................           4           6           7
    2351      Repayments of loans receivable         -94         -84         -70
    2361      Write-offs of loans receivable        -175        -155        -130
    2364      Other adjustments, net........          75         -12         -12
                                               ---------   ---------  ----------
    2390        Outstanding, end of year....       1,502       1,257       1,052
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   91-0230-0-1-502

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    944

    353

            Investments in US securities:
    1106

    Receivables, net

    56

    11

          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1701

    Defaulted guaranteed loans, gross

    10,555

    10,323

    1702

    Interest receivable

    1,144

    857

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -8,273

    -7,921

    1704

    Defaulted guaranteed loans and interest receivable, net

    3,426

    3,259

    1799

    Value of assets related to loan guarantees

    3,426

    3,259

    1999

    Total assets

    4,426

    3,623

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    3,761

    3,498

          Non-Federal liabilities:

    2201

    Accounts payable

    543

    10

    2204

    Liabilities for loan guarantees

    122

    115

    2999

    Total liabilities

    4,426

    3,623

    4999

    Total liabilities and net position

    4,426

    3,623

    -----------------------------------------------------------------------------------------------
        \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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          74          56          47
    33.0  Investments and loans.............          66          51          25
    41.0  Grants, subsidies, and
            contributions...................          32          45          44
    42.0  Insurance claims and indemnities..          24          17          13
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         196         169         129
    ---------------------------------------------------------------------------

                  Loans for Short Term Training Program Account

                  (Legislative Proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0217-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Loan Subsidy:

    00.02   Loan Subsidy....................                                  11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                  11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  11
    23.95 Total new obligations.............                                 -11
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  11
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  11
    ----------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 91-0217-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct loan levels................                                  85
                                               ---------   ---------  ----------
    115901Total direct loan levels..........                                  85

    [[Page 380]]

        Direct loan subsidy (in percent):
    132001Subsidy rate......................                               -1.56
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....                               -1.56
        Direct loan subsidy budget authority:
    133001Subsidy budget authority..........                                  -1
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....                                  -1
        Direct loan subsidy outlays:
    134001Subsidy outlays...................                                  -1
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............                                  -1
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Loan guarantee levels.............                                 198
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                                 198
        Guaranteed loan subsidy (in percent):
    232001Subsidy rate......................                                5.71
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....                                5.71
        Guaranteed loan subsidy budget authority:
    233001Subsidy budget authority..........                                  11
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                                  11
        Guaranteed loan subsidy outlays:
    234001Subsidy outlays...................                                  11
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                                  11
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0217-2-1-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................
    41.0  Grants, subsidies, and
            contributions...................                                  11
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  11
    ---------------------------------------------------------------------------

        Loans for Short Term Training--The Administration proposes a new
    loan program, jointly administered by the Departments of Education and
    Labor, to help dislocated, unemployed, transitioning, or older workers
    and students. This market-oriented program will allow participants to
    acquire or upgrade specific job-related skills through short-term
    training programs. These programs are usually shorter than 10 weeks and
    are not currently eligible for Federal student aid. These programs must
    lead to an industry credential, certificate, or employer endorsed
    technical/occupational skills.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including modifications of direct loans or loan guarantees that
    resulted from obligations or commitments in any year). The subsidy
    amounts are estimated on a present value basis.

         Loans for Short Term Training Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4573-2-4-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Special Allowance.................                                   1
    00.02 Default Claims....................
    00.03 Death, disability, and bankruptcy
            claims..........................
    00.04 Contract Collection Costs.........
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                   1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                  11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  11
    23.95 Total new obligations.............                                  -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                  10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                                  11
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                   1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                                 -11
    88.25     Interest on uninvested funds..
    88.40     Recoveries on Defaults........
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                 -11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                                 -10
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4573-2-4-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                                 198
    2131  Guaranteed loan commitments exempt
            from limitation.................
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                                 198
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........
    2231  Disbursements of new guaranteed
            loans...........................                                 198
    2251  Repayments and prepayments........                                 -11
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....
    2263    Terminations for default that
              result in claim payments......
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                                 187
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                                 187
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......
    2331    Disbursements for guaranteed
              loan claims...................
    2351    Repayments of loans receivable..
    2361    Write-offs of loans receivable..
    2364    Other adjustments, net..........
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......
    ---------------------------------------------------------------------------

        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 loan guarantees committed in 1992 and beyond (including
    modifications of loan guarantees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

    [[Page 381]]

           Loans for Short Term Training Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4574-2-4-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Loan obligations..................                                  85
    00.02 Interest payments to Treasury.....                                   2
    00.03 Contract Collection Costs.........
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............                                  87
    08.01 Obligation of Negative subsidy....                                   1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  88
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                  88
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  88
    23.95 Total new obligations.............                                 -88
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                                  86
    69.00 Offsetting collections (cash).....                                   7
    69.47 Portion applied to repay debt.....                                  -5
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................                                   2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                  88
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                  88
    73.20 Total outlays (gross).............                                 -88
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                  88
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............
    88.25     Interest on uninvested funds..
    88.40     Payment of Principal..........                                  -5
    88.40     Interest received on loans....                                  -2
    88.40     Recoveries of defaulted loans.
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                  -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  81
    90.00 Outlays...........................                                  81
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4574-2-4-502      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                                  85
    1131  Direct loan obligations exempt
            from limitation.................
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                                  85
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................                                  85
    1251  Repayments: Repayments and
            prepayments.....................                                  -5
    1264  Write-offs for default: Other
            adjustments, net................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                  80
    ---------------------------------------------------------------------------

        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 obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in budget totals.

                         INSTITUTE OF EDUCATION SCIENCES

                                  Federal Funds

    General and special funds:

                         Institute of Education Sciences

        For carrying out activities authorized by the Education Sciences
    Reform Act of 2002, as amended, [The] the National Assessment of
    Educational Progress Authorization Act, [and] section 208 of the
    Educational Technical Assistance Act of 2002, [$527,453,000: Provided,
    That, of the amount appropriated, $190,518,000] and section 664 of the
    Individuals with Disabilities Education Act, $479,064,000, of which
    $271,560,000 shall be available [for obligation] until September 30,
    [2006: Provided further, That $83,774,000 shall be for research and
    innovation in special education authorized under section 177 of the
    Education Science Reform Act, as amended: Provided further, That
    $10,623,000 of the funds for section 177 of the Act shall be available
    for the projects and in the amounts specified in the statement of the
    managers of the conference report accompanying this Act] 2007.
    (Department of Education Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Research and statistics:

    00.01   Research, development, and
              dissemination.................         165         166         164
    00.02   Statistics......................          92          91          91
    00.03 Regional educational laboratories.          67          66
    00.04 Assessment........................          95          94         116
          Technical assistance providers:

    00.05   Regional technology in education
              consortia.....................          10
    00.06   Comprehensive regional
              assistance centers............          28
    00.07   Eisenhower regional mathematics
              and science education
              consortia.....................          14
    00.08   Eisenhower National
              Clearinghouse for Mathematics
              and Science Education.........           5
    00.09 Research in special education.....                      83          73
    00.10 Statewide data systems............                      25          25
    00.11 Special education studies and
            evaluations.....................                                  10
                                               ---------   ---------  ----------
    01.00   Total direct program............         476         525         479
    09.01 Reimbursable program..............           4           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         480         529         483
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2
    22.00 New budget authority (gross)......         480         527         483
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         481         529         483
    23.95 Total new obligations.............        -480        -529        -483
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         479         527         479
    40.35   Appropriation permanently
              reduced.......................          -3          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         476         523         479
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           3           4           4
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           4           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         480         527         483
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         575         602         495

    [[Page 382]]

    73.10 Total new obligations.............         480         529         483
    73.20 Total outlays (gross).............        -443        -636        -512
    73.40 Adjustments in expired accounts
            (net)...........................         -12
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         602         495         466
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          90         134         123
    86.93 Outlays from discretionary
            balances........................         353         502         389
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         443         636         512
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7          -4          -4
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         476         523         479
    90.00 Outlays...........................         435         632         508
    ---------------------------------------------------------------------------

        Research and Statistics.--
            Research, development, and dissemination.--Funds support the
        National Center for Education Research, which oversees a diverse
        portfolio of directed research, field-initiated studies, research
        and development centers, and interagency initiatives. Funds also
        support dissemination activities that provide parents, teachers, and
        schools with valid information on effective educational practice.
            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. In
    2006, funds will also support costs of expanding State NAEP to grade 12.

        Research in special education.--Funds support research to address
    gaps in scientific knowledge in order to improve special education and
    early intervention services and results for infants, toddlers, and
    children with disabilities.

        Statewide data systems.--Funds support competitive awards to State
    educational agencies to foster the design, development, and
    implementation of longitudinal data systems.

        Special education studies and evaluations.--Funds support objective
    studies, evaluations, and assessments related to the implementation of
    the Individuals with Disabilities Education Act in order to improve
    special education and early intervention services and results for
    infants, toddlers, and children with disabilities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........           1           1           1
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation           2           2           2
    24.0    Printing and reproduction.......           1
    25.1    Advisory and assistance services           4           3           2
    25.2    Other services..................         181         179         211
    25.3    Other purchases of goods and
              services from Government
              accounts......................          19          18          18
    25.5    Research and development
              contracts.....................          77          76          10
    41.0    Grants, subsidies, and
              contributions.................         191         244         233
                                               ---------   ---------  ----------
    99.0      Direct obligations............         475         522         476
    99.0  Reimbursable obligations..........           4           4           4
    99.5  Below reporting threshold.........           1           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         480         529         483
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          11          16          16
    ---------------------------------------------------------------------------

                             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 three passenger motor
    vehicles, [$423,379,000] $418,992,000. (Department of Education
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Program administration............         418         425         419
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         420         426         420
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           6
    22.00 New budget authority (gross)......         421         420         420
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         426         426         420
    23.95 Total new obligations.............        -420        -426        -420
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         425         423         419
    40.35   Appropriation permanently
              reduced.......................          -5          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         420         419         419
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         421         420         420
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         113         121         159
    73.10 Total new obligations.............         420         426         420
    73.20 Total outlays (gross).............        -406        -388        -430
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         121         159         149
    ----------------------------------------------------------------------------

    [[Page 383]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         327         324         323
    86.93 Outlays from discretionary
            balances........................          79          64         107
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         406         388         430
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3          -1          -1
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -4          -1          -1
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         420         419         419
    90.00 Outlays...........................         402         387         429
    ---------------------------------------------------------------------------

        The Program Administration account includes the direct Federal costs
    of providing grants and administering elementary and secondary
    education, Indian education, English language acquisition, higher
    education, technical and adult education, 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.

        Also included in this account are contributions from the public.
    Activities supported include receptions for Blue Ribbon Schools,
    Historically Black Colleges and Universities, and School Recognition.
    Contributions not designated for a specific purpose are in the account's
    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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         166         198         197
    11.3      Other than full-time permanent          29           7           7
    11.5      Other personnel compensation..           4           4           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         199         209         207
    12.1    Civilian personnel benefits.....          46          47          47
    21.0    Travel and transportation of
              persons.......................           5           5           5
    23.1    Rental payments to GSA..........          32          35          36
    23.3    Communications, utilities, and
              miscellaneous charges.........          12          13          13
    24.0    Printing and reproduction.......           4           5           4
    25.1    Advisory and assistance services           4           3           2
    25.2    Other services..................          30          22          20
    25.3    Other purchases of goods and
              services from Government
              accounts......................          23          13          14
    25.7    Operation and maintenance of
              equipment.....................          47          56          58
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................          14          14          10
    32.0    Land and structures.............           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         419         425         419
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         420         426         420
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,263       2,315       2,244
    ---------------------------------------------------------------------------

                             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, [$90,248,000] $91,526,000. (Department of Education Appropriations
    Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Civil rights......................          88          89          92
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          88          89          92
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          88          89          92
    23.95 Total new obligations.............         -88         -89         -92
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          89          90          92
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          88          89          92
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          20          21
    73.10 Total new obligations.............          88          89          92
    73.20 Total outlays (gross).............         -83         -88         -91
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          20          21          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          73          73          76
    86.93 Outlays from discretionary
            balances........................          10          15          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          83          88          91
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          88          89          92
    90.00 Outlays...........................          83          88          91
    ---------------------------------------------------------------------------

        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, the Americans with Disabilities Act of 1990
    and the Boy Scouts of America Equal Access Act of 2002.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          49          52          51
    11.3      Other than full-time permanent           2           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          51          54          53
    12.1    Civilian personnel benefits.....          13          13          13

    [[Page 384]]

    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.1    Rental payments to GSA..........           7           9          10
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    25.2    Other services..................           1           1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           5           3           3
    25.7    Operation and maintenance of
              equipment.....................           8           4           6
    31.0    Equipment.......................                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          88          88          90
    99.5  Below reporting threshold.........                       1           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          88          89          92
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         655         656         638
    ---------------------------------------------------------------------------

                         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, [$47,790,000] $49,408,000. (Department of Education Appropriations
    Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Inspector General.................          47          47          49
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          47          47          49
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          46          47          49
    23.95 Total new obligations.............         -47         -47         -49
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          47          48          49
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          46          47          49
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7          14          11
    73.10 Total new obligations.............          47          47          49
    73.20 Total outlays (gross).............         -40         -50         -49
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          14          11          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          35          40          40
    86.93 Outlays from discretionary
            balances........................           5          10           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          40          50          49
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          46          47          49
    90.00 Outlays...........................          40          50          49
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          21          25          25
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           2                       1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          24          26          27
    12.1    Civilian personnel benefits.....           6           8           7
    21.0    Travel and transportation of
              persons.......................           1           2           1
    23.1    Rental payments to GSA..........           3           4           5
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.1    Advisory and assistance services           4           2           3
    25.2    Other services..................                       1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           1           1
    25.7    Operation and maintenance of
              equipment.....................           4           1           3
    31.0    Equipment.......................           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          46          47          49
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          47          47          49
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         268         302         285
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      91-291500  Repayment of loans, capital
        contributions, higher education
        activities..........................          51          50          50
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................          51          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 percent of any discretionary funds
    (pursuant to the Balanced Budget and Emergency Deficit Control Act of

    [[Page 385]]

    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 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. Section 8002(m) of the Elementary and Secondary Education
    Act of 1965 (20 U.S.C. 7702(m)) is amended by striking ``5 years'' each
    place it appears and inserting ``7 years''.]
        [Sec. 306. (a) Section 167 of division H of the Consolidated
    Appropriations Act, 2004 (Public Law 108-199; 118 Stat. 3) is amended by
    striking ``$200,000, for Western Maine Technical College, South Paris,
    Maine, for education programs and marketing activities'' and inserting
    ``$200,000, for Central Maine Community College, Auburn, Maine, for
    education programs, student recruitment and marketing activities at the
    Central Maine Community College-Western Maine University and Community
    College Center in South Paris, Maine''.]
        [(b) In the statement of the managers of the committee of conference
    accompanying H.R. 2673 (Public Law 108-199; House Report 108-401), in
    the matter in title III of division E, relating to the Fund for the
    Improvement of Education under the heading ``Innovation and
    Improvement'' the provision specifying $300,000 for the Provo City
    Public Schools, Provo, Utah, to develop, purchase and implement an
    English language instructional program for training and certifying ESL
    teachers shall be deemed to read as follows: ``Provo City Public
    Schools, Provo, Utah, for an English language instructional program,
    $300,000''.]
        [Sec. 307. Notwithstanding any other provision of law, students from
    the Republic of the Marshall Islands and the Federated States of
    Micronesia enrolled in institutions in the Republic of Palau shall be
    eligible for grants under subpart 1 of part A of title IV of the Higher
    Education Act of 1965 to the extent such grants continue to be available
    to students from the Republic of the Marshall Islands and the Federated
    States of Micronesia who are attending institutions in the United
    States.] (Department of Education Appropriations Act, 2005.)