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

                         THE BUDGET FOR FISCAL YEAR 2008

    [[Page 313]]

                             DEPARTMENT OF EDUCATION

                  OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

                                  Federal Funds

                         Education for the Disadvantaged

         For carrying out title I of the Elementary and Secondary Education
    Act of 1965 (``ESEA'') and section 418A of the Higher Education Act of
    1965, $16,139,090,000, of which $8,571,383,000 shall become available on
    July 1, 2008, and shall remain available through September 30, 2009, and
    of which $7,383,301,000 shall become available on October 1, 2008, and
    shall remain available through September 30, 2009 for academic year
    2008-2009: Provided, That $6,808,408,000 shall be for basic grants under
    section 1124: Provided further, That up to $4,000,000 of these funds
    shall be available to the Secretary of Education on October 1, 2007, 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 for concentration grants under section 1124A: Provided further,
    That $3,466,618,000 shall be for targeted grants under section 1125:
    Provided further, That $2,269,843,000 shall be for education finance
    incentive grants under section 1125A: Provided further, That
    $500,000,000 shall be for school improvement grants under section
    1003(g): Provided further, That $9,327,000 shall be to carry out part E
    of title I.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Grants to local educational
            agencies........................      12,519      12,731      13,910
    00.02 School improvement grants.........                                 500
    00.03 Reading first State grants........       1,213       1,084       1,019
    00.04 Early reading first...............         103         103         118
    00.05 Striving readers..................          32          54         100
    00.06 Even start........................         112         119
    00.07 Literacy through school libraries.          19          19          19
    00.08 State agency programs.............         431         447         430
    00.09 Comprehensive school reform.......          10          10
    00.10 Evaluation........................           9           9           9
    00.11 Migrant education projects........          34          34          34
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      14,482      14,610      16,139
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         130         129
    22.00 New budget authority (gross)......      14,481      14,481      16,139
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      14,612      14,610      16,139
    23.95 Total new obligations.............     -14,482     -14,610     -16,139
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         129
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       7,244       7,098       8,756
    40.35   Appropriation permanently
              reduced.......................        -146
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       7,098       7,098       8,756
    55.00   Advance appropriation...........       7,383       7,383       7,383
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      14,481      14,481      16,139
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      11,043      10,803      10,575
    73.10 Total new obligations.............      14,482      14,610      16,139
    73.20 Total outlays (gross).............     -14,696     -14,838     -14,523
    73.40 Adjustments in expired accounts
            (net)...........................         -25
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..      10,803      10,575      12,191
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       5,383       6,049       6,082
    86.93 Outlays from discretionary
            balances........................       9,313       8,789       8,441
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      14,696      14,838      14,523
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      14,481      14,481      16,139
    90.00 Outlays...........................      14,696      14,838      14,523
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............         14,481         14,481          16,139
      Outlays.....................         14,696         14,838          14,523
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority............                                           550
      Outlays.....................                                            11

    Total:
      Budget Authority............         14,481         14,481          16,689
      Outlays.....................         14,696         14,838          14,534

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         2006-2007
                                          Academic
                                            Year      2007-2008
                                                    Academic Year 2008-2009
                                                                Academic Year
    New Budget Authority..........          7,098          7,098           8,756
    Advance appropriation.........          7,383          7,383           7,383
                                        ------------------------------------
          Total program level.....         14,481         14,481          16,139
                                        ====================================
    Change in advance
    appropriation from the
    previous year.................              0              0               0

        Note: Additional authorizing language is sought for $16,105,163,000
    in this account.

        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 students in high-poverty schools to meet challenging State
    academic standards. States must annually assess participating students
    in at least reading, mathematics, and science, 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 in reading and mathematics. 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. 2008 funds would be expended under a reauthorization proposal to
    expand the benefits of the program to more high school students, refine
    accountability systems, include science in accountability
    determinations, and give students in low-performing schools more
    options.

        School improvement grants.--Funds would support grants to States to
    assist schools and districts identified as in need

    [[Page 314]]

    of improvement because they have not met their student achievement goals
    for at least two consecutive years. Activities may include the
    development and implementation of school improvement plans, professional
    development for teachers and staff, corrective actions such as
    instituting a new curriculum, and the provision of public school choice
    and supplemental educational services.

        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. For the reauthorization of ESEA, the
    Department is proposing to strengthen partnerships between preschool
    providers and institutions of higher education that provide professional
    development to early childhood educators.

        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.

        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 Act requirements including
    assessments, accountability systems, school improvement requirements,
    public school choice, and supplemental educational services.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    24.0  Printing and reproduction.........           2           2           2
    25.1  Advisory and assistance services..           5           7           7
    25.2  Other services....................          58          46          41
    25.3  Other purchases of goods and
            services from Government
            accounts........................           3           4           5
    25.7  Operation and maintenance of
            equipment.......................           6
    41.0  Grants, subsidies, and
            contributions...................      14,408      14,551      16,084
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      14,482      14,610      16,139
    ---------------------------------------------------------------------------

                         Education for the Disadvantaged

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-2-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Math now for elementary school
            students........................                                 125
    00.02 Math now for middle school
            students........................                                 125
    00.03 Promise scholarships..............                                 250
    00.04 Opportunity scholarships..........                                  50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 550
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 550
    23.95 Total new obligations.............                                -550
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 550
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 550
    73.20 Total outlays (gross).............                                 -11
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                 539
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                 550
    90.00 Outlays...........................                                  11
    ---------------------------------------------------------------------------

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

        Math now for elementary school students.--Funds would support
    competitive grants to improve instruction in mathematics for students in
    kindergarten through 6th grade through such activities as professional
    development, diagnostic assessments, and curriculum implementation.

        Math now for middle school students.--Funds would support
    competitive grants to improve mathematics instruction for middle school
    students whose achievement is significantly below grade level.

        Promise scholarships.--Funds would support formula grants to States
    for scholarships to enable low-income students enrolled in persistently
    low-performing schools to attend a private or out-of-district public
    school or to receive intensive, sustained tutoring assistance.

        Opportunity scholarships.--Funds would support competitive grants to
    support local efforts to enable low-income students enrolled in
    persistently low-performing schools to attend a private or out-of-
    district public school or to receive intensive, sustained tutoring
    assistance.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0900-2-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.1  Advisory and assistance services..                                   3
    25.2  Other services....................                                   1
    41.0  Grants, subsidies, and
            contributions...................                                 546
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 550
    ---------------------------------------------------------------------------

                                    Impact Aid

         For carrying out programs of financial assistance to federally
    affected schools authorized by title VIII of the Elementary and Sec

    [[Page 315]]

    ondary Education Act of 1965, $1,228,100,000, of which $1,091,867,000
    shall be for basic support payments under section 8003(b), $49,466,000
    shall be for payments for children with disabilities under section
    8003(d), $17,820,000 shall be for construction under section 8007(b) and
    shall remain available through September 30, 2009, $64,350,000 shall be
    for Federal property payments under section 8002, and $4,597,000, to
    remain available until expended, shall be for facilities maintenance
    under section 8008: Provided, That for purposes of computing the amount
    of a payment for an eligible local educational agency under section
    8003(a) for school year 2007-2008, children enrolled in a school of such
    agency that would otherwise 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0102-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Basic support payments............       1,092       1,092       1,092
    00.02 Supplemental payments for children
            with disabilities...............          49          49          49
                                               ---------   ---------  ----------
    00.91   Subtotal, payments for federally
              connected children............       1,141       1,141       1,141
    01.01 Facilities maintenance............           5           5           5
    02.01 Construction......................          47          47          18
    03.01 Payments for Federal property.....          64          64          64
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,257       1,257       1,228
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          35           7           7
    22.00 New budget authority (gross)......       1,229       1,257       1,228
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,264       1,264       1,235
    23.95 Total new obligations.............      -1,257      -1,257      -1,228
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7           7           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,241       1,257       1,228
    40.35   Appropriation permanently
              reduced.......................         -12
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,229       1,257       1,228
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         264         379         164
    73.10 Total new obligations.............       1,257       1,257       1,228
    73.20 Total outlays (gross).............      -1,141      -1,472      -1,227
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         379         164         165
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,069       1,128       1,087
    86.93 Outlays from discretionary
            balances........................          72         344         140
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,141       1,472       1,227
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,229       1,257       1,228
    90.00 Outlays...........................       1,141       1,472       1,227
    ---------------------------------------------------------------------------

        Note: Additional authorizing language is sought for all of the
    resources requested in this account.

        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
    1,260 local educational agencies to assist them in meeting their
    operation and maintenance costs. Average per-student payments will be
    approximately $1,100.

        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 58,000 federally connected
    students with disabilities in about 900 local educational agencies.
    Average per-student payments will be approximately $850.

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

        Construction.--Approximately 20 construction grants will be awarded
    competitively to the highest need impact aid districts for emergency
    repairs and modernization of school facilities.

        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.

                           School Improvement Programs

         For carrying out school improvement activities authorized by title
    II, part B of title IV, subpart 9 of part D of title V, and parts A and
    B of title VI 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,
    $4,698,276,000, of which $3,158,151,000 shall become available on July
    1, 2008, and remain available through September 30, 2009, and of which
    $1,435,000,000 shall become available on October 1, 2008, and shall
    remain available through September 30, 2009, for academic year 2008-
    2009: Provided, That $411,630,000 shall be for State assessments and
    related activities authorized under sections 6111 and 6112 of the ESEA:
    Provided further, That $56,256,000 shall be available to carry out
    section 203 of the Educational Technical Assistance Act of 2002:
    Provided further, That $23,755,000 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 $18,001,000 shall be available to carry out the
    Supplemental Education Grants program for the Federated States of
    Micronesia and 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Improving teacher quality State
            grants..........................       2,887       2,907       2,787
    00.02 Early childhood educator
            professional development........          15          15
    00.03 Mathematics and science
            partnerships....................         182         184         182
    00.04 Educational technology State
            grants..........................         273         279
    00.05 21st Century community learning
            centers.........................         981         991         981
    00.06 State grants for innovative
            programs........................          99          99

    [[Page 316]]

    00.07 Javits gifted and talented
            education.......................          10          10
    00.08 Foreign language assistance.......          22          22          24
    00.09 State assessments.................         412         420         412
    00.10 Education for homeless children
            and youth.......................          62          62          62
    00.11 Education for Native Hawaiians....          34          34
    00.12 Alaska Native education equity....          34          34
    00.13 Training and advisory services....           7           7           7
    00.14 Rural education...................         169         169         169
    00.15 Supplemental education grants.....          18          18          18
    00.16 Comprehensive centers.............          56          56          56
    00.17 Safe and drug-free schools and
            communities national programs...           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       5,266       5,312       4,698
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          56          47
    22.00 New budget authority (gross)......       5,256       5,265       4,698
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,313       5,312       4,698
    23.95 Total new obligations.............      -5,266      -5,312      -4,698
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          47
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,874       3,830       3,263
    40.35   Appropriation permanently
              reduced.......................         -53
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,821       3,830       3,263
    55.00   Advance appropriation...........       1,435       1,435       1,435
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       5,256       5,265       4,698
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       7,286       6,712       6,394
    73.10 Total new obligations.............       5,266       5,312       4,698
    73.20 Total outlays (gross).............      -5,797      -5,630      -5,253
    73.40 Adjustments in expired accounts
            (net)...........................         -42
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       6,712       6,394       5,839
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         760         966         955
    86.93 Outlays from discretionary
            balances........................       5,037       4,664       4,298
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       5,797       5,630       5,253
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,256       5,265       4,698
    90.00 Outlays...........................       5,797       5,630       5,253
    ---------------------------------------------------------------------------

                            SUMMARY OF PROGRAM LEVEL

                            (in millions of dollars)

                                         2006-2007
                                          Academic
                                            Year      2007-2008
                                                    Academic Year 2008-2009
                                                                Academic Year
    New Budget Authority..........          3,820          3,825           3,263
    Advance Appropriation.........          1,435          1,435           1,435
                                        ------------------------------------
          Total program level.....          5,255          5,260           4,698
                                        ====================================
    Change in advance
    appropriation over previous
    year..........................              0              0               0

        Note: Additional authorizing language is sought for $4,614,906,000
    in this account.

        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.

        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. These efforts may include the integration of teaching
    methods based on scientifically-based research and technology into the
    curriculum.

        Other Activities:

        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.

        Foreign language assistance.--Funds support competitive grants to
    States and school districts to create innovative model programs
    providing for the establishment, improvement, or expansion of critical
    foreign language study for elementary and secondary school students.

        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.

        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.

        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. The
    Small, Rural Schools Achievement program provides rural local
    educational agencies with small enrollments with additional formula
    funds and flexibility in the use of other Federal formula funds. 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, which 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 21 comprehensive centers that
    focus on building State capacity to help school districts and schools
    meet the requirements of the No Child Left Behind Act.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1000-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.1  Advisory and assistance services..          13          14          12
    25.2  Other services....................          22          23          21
    41.0  Grants, subsidies, and
            contributions...................       5,231       5,275       4,665
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       5,266       5,312       4,698
    ---------------------------------------------------------------------------

                                 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, $118,683,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0101-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Grants to local educational
            agencies........................          96          96          96

    [[Page 317]]

    00.02 Special programs for Indian
            children........................          19          19          19
    00.03 National activities...............           4           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         119         119         119
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..         146         140         138
    73.10 Total new obligations.............         119         119         119
    73.20 Total outlays (gross).............        -120        -121        -117
    73.40 Adjustments in expired accounts
            (net)...........................          -5
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         140         138         140
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           6           6
    86.93 Outlays from discretionary
            balances........................         114         115         111
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         120         121         117
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         119         119         119
    90.00 Outlays...........................         120         121         117
    ---------------------------------------------------------------------------

        Note: Additional authorizing language is sought for all of the
    resources requested in this account.

        The Indian Education programs support 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 2006, the Department made
    1,196 formula grants to local educational agencies and tribal schools
    serving more than 469,000 students.

        Special programs for Indian Children.--The Department makes
    competitive awards for demonstration projects in early childhood
    education and college preparation, as well as professional development
    grants for training Native American teachers and administrators for
    employment 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.1  Advisory and assistance services..           1           1           1
    25.2  Other services....................           2           2           2
    25.7  Operation and maintenance of
            equipment.......................           1           1           1
    41.0  Grants, subsidies, and
            contributions...................         115         115         115
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         119         119         119
    ---------------------------------------------------------------------------

                               Reading Excellence

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0011-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Change in obligated balances:
    72.40 Obligated balance, start of year..          20           6
    73.20 Total outlays (gross).............          -1          -6
    73.40 Adjustments in expired accounts
            (net)...........................         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           6
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Change in obligated balances:
    72.40 Obligated balance, start of year..          64           4
    73.20 Total outlays (gross).............         -17          -4
    73.40 Adjustments in expired accounts
            (net)...........................         -43
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          17           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          17           4
    ---------------------------------------------------------------------------

        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.

                      OFFICE OF INNOVATION AND IMPROVEMENT

                                  Federal Funds

                            Innovation and Improvement

         For carrying out activities authorized by part G of title I, parts
    C and D of title II, and parts B, C, and D of title V of the Elementary
    and Secondary Education Act of 1965, $897,018,000: Provided, That 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 $36,611,000 shall be for subpart 2
    of part B of title V: Provided further, That $257,108,000 shall be
    available to carry out part D of title V of the ESEA, of which
    $199,000,000 of the funds for subpart 1 shall be for competitive grants
    to local educational agencies, including charter schools that are local
    educational agencies, or States, or partnerships of (1) a local
    educational agency, a State, or both and (2) at least one non-profit
    organization to develop and implement performance-based teacher and
    principal compensation systems in high-need schools: Provided further,
    That such performance-based compensation systems must consider gains in
    student academic achievement as well as classroom evaluations conducted
    multiple times during each school year among other factors and provide
    educators with incentives to take on additional responsibilities and
    leadership roles: Provided further, That up to five percent of such
    funds for competitive grants shall be available for technical
    assistance, training, peer review of applications, program outreach and
    evaluation activities.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0204-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:

    [[Page 318]]

    00.01 Teacher incentive fund............           4          98         199
    00.02 Troops-to-teachers................          15          15          15
    00.03 Transition to teaching............          44          44          44
    00.04 National writing project..........          21          21
    00.05 Teaching American history.........         120         120          50
    00.06 School leadership.................          15          15
    00.07 Advanced credentialing............          17          17
          School choice and flexibility:

    00.08   Charter schools grants..........         215         215         215
    00.09   Credit enhancement for charter
              school facilities.............          37          37          37
    00.10   Voluntary public school choice..          26          26          26
    00.11   Magnet schools assistance.......         107         107         107
    00.12 Advanced placement................          32          32         122
    00.13 School dropout prevention.........           5           5
    00.14 Close Up fellowships..............           1           1
    00.15 Ready-to-learn-television.........          24          24          24
    00.16 Academies for American history and
            civics..........................           2           2
    00.17 FIE programs of national
            significance....................          12          12          33
    00.18 Reading is fundamental/Inexpensive
            book distribution...............          25          25          25
    00.19 Star schools......................          15          15
    00.20 Ready to teach....................          11          11
    00.21 Exchanges with historic whaling
            and trading partners............           9           9
    00.22 Excellence in economic education..           1           1
    00.23 Mental health integration in
            schools.........................           5           5
    00.24 Foundations for learning..........           1           1
    00.25 Arts in education.................          35          35
    00.26 Parental information and resource
            centers.........................          39          39
    00.27 Womens educational equity.........           3           3
                                               ---------   ---------  ----------
    01.00   Total direct program............         841         935         897
    09.01 DC School Choice..................          14          14          15
    09.02 Reimbursable program..............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         856         949         912
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      95           1
    22.00 New budget authority (gross)......         952         855         912
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         952         950         913
    23.95 Total new obligations.............        -856        -949        -912
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          95           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         946         841         897
    40.35   Appropriation permanently
              reduced.......................          -9
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         937         841         897
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          15          14          15
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         952         855         912
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,595       1,535       1,196
    73.10 Total new obligations.............         856         949         912
    73.20 Total outlays (gross).............        -915      -1,288        -937
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,535       1,196       1,171
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          26          43          46
    86.93 Outlays from discretionary
            balances........................         889       1,245         891
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         915       1,288         937
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1
    88.40     Non-Federal sources...........         -14         -14         -15
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -15         -14         -15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         937         841         897
    90.00 Outlays...........................         900       1,274         922
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............            937            841             897
      Outlays.....................            900          1,274             922
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority............                                            25
      Outlays.....................                                             1

    Total:
      Budget Authority............            937            841             922
      Outlays.....................            900          1,274             923

        Note: Additional authorizing language is sought for all of the
    resources requested in this account.

        Recruiting and training high quality teachers:

        Teacher incentive fund.--Funds support the development of
    performance-based teacher compensation systems that reward teachers and
    schools that are raising student achievement and closing the achievement
    gap.

        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 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.

        Other activities:

        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. A portion of the funding supports
    State efforts to assist charter schools in obtaining facilities.

        Credit enhancement for charter school facilities.--Funds support
    competitive grants to State and local governments, nonprofit entities,
    and public and nonprofit consortia, to assist charter schools in
    acquiring, leasing, and renovating school facilities.

        Voluntary public school choice.--Funds support competitive grants to
    State 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.

        Advanced placement.--Funds support competitive grants to State
    educational agencies, local educational agencies, and national nonprofit
    educational entities to expand access for low-income individuals to
    Advanced Placement (AP) or International Baccalaureate (IB) courses, and
    grants to States to pay test fees for low-income students who are
    enrolled in AP or IB courses.

        Ready-to-learn television.--Funds support the development,
    distribution, and production of educational video programming and
    accompanying materials and services for preschool and 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.

    [[Page 319]]

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    25.1    Advisory and assistance services           2           3           5
    25.2    Other services..................          53          52          53
    41.0    Grants, subsidies, and
              contributions.................         786         880         839
                                               ---------   ---------  ----------
    99.0      Direct obligations............         841         935         897
    99.0  Reimbursable obligations..........          15          14          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         856         949         912
    ---------------------------------------------------------------------------

                            Innovation and improvement

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0204-2-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Adjunct Teacher Corps.............                                  25
                                               ---------   ---------  ----------
    01.00   Total direct program............                                  25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  25
    23.95 Total new obligations.............                                 -25
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  25
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  25
    73.20 Total outlays (gross).............                                  -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  25
    90.00 Outlays...........................                                   1
    ---------------------------------------------------------------------------

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

        Adjunct teacher corps.--Funds would 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 mathematics and
    science.

                      OFFICE OF SAFE AND DRUG-FREE SCHOOLS

                                  Federal Funds

                      Safe Schools and Citizenship Education

         For carrying out activities authorized by part A of title IV of the
    Elementary and Secondary Education Act of 1965, $324,248,000, of which
    $100,000,000 shall become available on July 1, 2008 and remain available
    through September 30, 2009: Provided, That $224,248,000 shall be
    available for subpart 2 of part A of title IV, of which $10,000,000, to
    remain available until expended, shall be for the Project School
    Emergency Response to Violence program to provide education-related
    services to local educational agencies in which the learning environment
    has been disrupted due to a violent or traumatic crisis.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0203-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          Safe and drug-free schools and communities:

    00.01   State grants....................         346         355         100
            National programs:
    00.02     National activities...........         138         171         224
    00.03     Alcohol abuse reduction.......          32          32
    00.04     Mentoring program.............          49          19
                                               ---------   ---------  ----------
    00.91   Subtotal, Safe and drug-free
              schools and communities.......         565         577         324
    01.01 Character education...............          24          24
    02.01 Elementary and secondary school
            counseling......................          35          35
    03.01 Physical education program........          73          73
    04.01 Civic education...................          29          29
    05.01 Literacy program for prisoners....           5
    09.00 Reimbursable program..............          70          70          70
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         801         808         394
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7           6
    22.00 New budget authority (gross)......         800         802         394
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         807         808         394
    23.95 Total new obligations.............        -801        -808        -394
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         737         732         324
    40.35   Appropriation permanently
              reduced.......................          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         730         732         324
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          70          70          70
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         800         802         394
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,291       1,255       1,202
    73.10 Total new obligations.............         801         808         394
    73.20 Total outlays (gross).............        -836        -861        -810
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,255       1,202         786
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          24          16           7
    86.93 Outlays from discretionary
            balances........................         812         845         803
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         836         861         810
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -70         -70         -70
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         730         732         324
    90.00 Outlays...........................         766         791         740
    ---------------------------------------------------------------------------

        Note: Additional authorizing language is sought for all of the
    resources requested in this account.

        Safe and drug-free schools and communities:

        State grants.--Funds provide formula grants to State educational
    agencies to provide local educational agencies with training, technical
    assistance, and information regarding effective models for the creation
    of safe, healthy, drug-free, and secure schools.

        National programs.--Funds support programs and activities in the
    areas of (1) emergency management planning, (2) preventing violence and
    drug use, including student drug testing, (3) school culture and
    climate, including character education, and (4) other needs related to
    improving students' learning

    [[Page 320]]

    environment to enable those students to meet challenging academic
    standards.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0203-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    25.1    Advisory and assistance services           6           7           7
    25.2    Other services..................           9           9           9
    25.3    Other purchases of goods and
              services from Government
              accounts......................           4           4           4
    41.0    Grants, subsidies, and
              contributions.................         712         718         304
                                               ---------   ---------  ----------
    99.0      Direct obligations............         731         738         324
    99.0  Reimbursable obligations..........          70          70          70
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         801         808         394
    ---------------------------------------------------------------------------

                     OFFICE OF ENGLISH LANGUAGE ACQUISITION

                                  Federal Funds

                           English Language Acquisition

         For carrying out part A of title III of the ESEA, $670,819,000,
    which shall become available on July 1, 2008, and shall remain available
    through September 30, 2009, except that 6.5 percent of such amount shall
    be available on October 1, 2007 and shall remain available through
    September 30, 2009, to carry out activities under section 3111(c)(1)(C).

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1300-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Language acquisition State grants.         671         678         671
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         671         678         671
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           7
    22.00 New budget authority (gross)......         669         671         671
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         678         678         671
    23.95 Total new obligations.............        -671        -678        -671
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         676         671         671
    40.35   Appropriation permanently
              reduced.......................          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         669         671         671
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         937         983         805
    73.10 Total new obligations.............         671         678         671
    73.20 Total outlays (gross).............        -616        -856        -624
    73.40 Adjustments in expired accounts
            (net)...........................          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         983         805         852
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8          34          34
    86.93 Outlays from discretionary
            balances........................         608         822         590
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         616         856         624
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         669         671         671
    90.00 Outlays...........................         616         856         624
    ---------------------------------------------------------------------------

        Note: Additional authorizing language is sought for all of the
    resources requested in this account.

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.5  Research and development contracts           2           2           2
    41.0  Grants, subsidies, and
            contributions...................         669         676         669
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         671         678         671
    ---------------------------------------------------------------------------

             OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

                                  Federal Funds

                                Special Education

         For carrying out the Individuals with Disabilities Education Act,
    $11,485,147,000, of which $5,080,559,000 shall become available on July
    1, 2008, and shall remain available through September 30, 2009, and of
    which $6,215,200,000 shall become available on October 1, 2008, and
    shall remain available through September 30, 2009, for academic year
    2008-2009: Provided, That the amount for section 611(b)(2) of the Act
    shall be equal to the lesser of the amount available for that activity
    during fiscal year 2007, increased by the amount of inflation as
    specified in section 619(d)(2)(B) of the Act, or the percentage increase
    in the funds appropriated under section 611(i) of the Act.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          State grants:

    00.01   Grants to States................      10,481      10,598       9,699
    00.02   Preschool grants................         381         381         381
    00.03   Grants for infants and families.         423         438         423
                                               ---------   ---------  ----------
    00.91     Subtotal, State grants........      11,285      11,417      10,503
          National activities:

    01.01   State personnel development.....          50          50          50
    01.02   Technical assistance and
              dissemination.................          49          49          49
    01.03   Personnel preparation...........          90          90          90
    01.04   Parent information centers......          26          26          26
    01.05   Technology and media services...          38          38          25
                                               ---------   ---------  ----------
    01.91     Subtotal, National activities.         253         253         240
                                               ---------   ---------  ----------
    02.00   Total Direct Program............      11,538      11,670      10,743
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      11,538      11,670      10,743
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          67         170          49
    22.00 New budget authority (gross)......      11,641      11,549      10,694
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      11,708      11,719      10,743
    23.95 Total new obligations.............     -11,538     -11,670     -10,743
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         170          49
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       6,346       6,125       5,270
    40.35   Appropriation permanently
              reduced.......................        -118
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       6,228       6,125       5,270

    [[Page 321]]

    55.00   Advance appropriation...........       5,413       5,424       5,424
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      11,641      11,549      10,694
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       9,532       9,212       9,345
    73.10 Total new obligations.............      11,538      11,670      10,743
    73.20 Total outlays (gross).............     -11,836     -11,537     -10,771
    73.40 Adjustments in expired accounts
            (net)...........................         -22
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       9,212       9,345       9,317
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,032       4,136       4,135
    86.93 Outlays from discretionary
            balances........................       8,804       7,401       6,636
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      11,836      11,537      10,771
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      11,641      11,549      10,694
    90.00 Outlays...........................      11,836      11,537      10,771
    ---------------------------------------------------------------------------

                    SUMMARY OF GRANTS TO STATES PROGRAM LEVEL

                            [In millions of dollars]

                                          2006-2007   2007-2008   2008-2009
                                          academic
                                            year    academic yeaacademic year
    Current Budget Authority......         $5,159         $5,068           4,277
    Advance appropriation.........          5,424          5,424           6,215
                                        ------------------------------------
        Total program level.......         10,583         10,492          10,492
                                        ====================================

    Change in advance
    appropriation from the
    previous year.................            +11              0            +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.

        Performance data related to program goals include:

                                         2002-2003
                                           actual     2003-2004
                                                        actual    2004-2005
                                                                    actual
         Status of Exiting Students
    Percent of students with
        disabilities aged 14-21 leaving
        school:
      Graduated with a diploma....           51.9           54.2            54.4
      Graduated through
        certification.............           12.7           13.1            15.5
      Dropped out of school/not
        known to continue.........           33.6           30.9            28.3
      Reached maximum age for
        services/other............            1.8            1.8             1.8

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0300-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................           4           4           4
    41.0  Grants, subsidies, and
            contributions...................      11,534      11,666      10,739
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      11,538      11,670      10,743
    ---------------------------------------------------------------------------

                 Rehabilitation Services and Disability Research

         For carrying out, to the extent not otherwise provided, the
    Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and
    the Helen Keller National Center Act, $3,184,263,000, of which
    $2,837,160,000 shall be for grants for vocational rehabilitation
    services under Title I of the Rehabilitation Act.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0301-0-1-506      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Vocational rehabilitation State
            grants..........................       2,720       2,837       2,837
    00.02 Client assistance State grants....          12          12          12
    00.03 Training..........................          38          38          38
    00.04 Demonstration and training
            programs........................           8           7           7
    00.05 Migrant and seasonal farmworkers..           2           2
    00.06 Recreational programs.............           3           3
    00.07 Protection and advocacy of
            individual rights...............          16          16          16
    00.08 Projects with industry............          20          20
    00.09 Supported employment State grants.          30          30
    00.10 Independent living................         130         130         130
    00.11 Program improvement...............           1           1           1
    00.12 Evaluation........................           1           1           2
    00.13 Helen Keller National Center......           9           9           8
    00.14 National Institute on Disability
            and Rehabilitation Research.....         107         107         107
    00.15 Assistive technology..............          29          30          26
                                               ---------   ---------  ----------
    01.00   Total direct program............       3,126       3,243       3,184
    09.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,128       3,245       3,186
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       3,127       3,244       3,186
    23.95 Total new obligations.............      -3,128      -3,245      -3,186
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         409         405         310
    40.35   Appropriation permanently
              reduced.......................          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         405         405         310
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).                       2           2
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           2
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           2           2           2
          Mandatory:

    60.00   Appropriation...................       2,720       2,837       2,874
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,127       3,244       3,186
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,393       1,396       1,086
    73.10 Total new obligations.............       3,128       3,245       3,186
    73.20 Total outlays (gross).............      -3,116      -3,555      -3,218
    73.40 Adjustments in expired accounts
            (net)...........................          -7
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,396       1,086       1,054
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          81         285         218
    86.93 Outlays from discretionary
            balances........................         356         422         142
    86.97 Outlays from new mandatory
            authority.......................       1,920       1,986       2,012

    [[Page 322]]

    86.98 Outlays from mandatory balances...         759         862         846
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,116       3,555       3,218
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -2          -2
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,125       3,242       3,184
    90.00 Outlays...........................       3,116       3,553       3,216
    ---------------------------------------------------------------------------

        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 2005, 71 percent of the agencies met this performance
    criterion. Another indicator 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 2005, 95 percent of general and combined agencies met this
    performance criterion. This outcome data are based on the approximately
    356,229 individuals whose service records were closed in 2005 after
    receiving services.

        The 2008 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 continue to 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.--Formula grants are made to States to
    implement comprehensive Statewide programs designed to maximize the
    ability of individuals with disabilities of all ages to obtain assistive
    technology. States conduct activities that include alternative financing
    programs, device reutilization programs, device loan programs, and
    device demonstrations. Funds also support national technical assistance
    activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0301-0-1-506      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    25.1    Advisory and assistance services           9          10          11
    25.2    Other services..................           1           1           1
    41.0    Grants, subsidies, and
              contributions.................       3,115       3,231       3,172
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,125       3,242       3,184
    99.0  Reimbursable obligations..........           2           2           2
    99.5  Below reporting threshold.........           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,128       3,245       3,186
    ---------------------------------------------------------------------------

                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.), $17,573,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0600-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program activity...........          18          18          18
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          18          18          18
    ----------------------------------------------------------------------------

    [[Page 323]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          18          18          18
    23.95 Total new obligations.............         -18         -18         -18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          18          18          18
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           4           2
    73.10 Total new obligations.............          18          18          18
    73.20 Total outlays (gross).............         -19         -20         -18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          14          17          17
    86.93 Outlays from discretionary
            balances........................           5           3           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          19          20          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          18          18          18
    90.00 Outlays...........................          19          20          18
    ---------------------------------------------------------------------------

        The Federal appropriation supports the production and distribution
    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 2006, the portion of the Federal appropriation
    allocated to educational materials represented approximately 68.6
    percent of the Printing House's total sales. The full appropriation
    represented approximately 68.8 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.), $56,262,000, of which $913,000 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0601-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Operations........................          55          55          55
    00.02 Construction......................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          56          56          56
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          56          56          56
    23.95 Total new obligations.............         -56         -56         -56
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          57          56          56
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          56          56          56
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           1           3
    73.10 Total new obligations.............          56          56          56
    73.20 Total outlays (gross).............         -57         -54         -56
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          55          52          53
    86.93 Outlays from discretionary
            balances........................           2           2           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          57          54          56
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          56          56          56
    90.00 Outlays...........................          57          54          56
    ---------------------------------------------------------------------------

        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 2006, the Federal
    appropriation represented 80 percent of the Institute's operating
    budget. The request includes funds for a variety of construction
    projects. The request also includes funds for the Endowment Grant
    program.

                               Gallaudet University

         For the Kendall Demonstration Elementary School, the Model
    Secondary School for the Deaf, and the partial support of Gallaudet
    University and related activities under titles I and II of the Education
    of the Deaf Act of 1986 (20 U.S.C. 4301, et seq.), $106,998,000, of
    which $600,000 shall be for the Secretary of Education to carry out
    section 205 of the Act: Provided, That from the total amount available
    to the University, the University may at its discretion use funds for
    the endowment program as authorized under section 207.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0602-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Operations........................         107         107         106
    00.02 Evaluation........................                                   1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         107         107         107
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         107         107         107
    23.95 Total new obligations.............        -107        -107        -107
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         108         107         107
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         107         107         107
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   6
    73.10 Total new obligations.............         107         107         107
    73.20 Total outlays (gross).............        -107        -101        -107
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         107         101         101
    86.93 Outlays from discretionary
            balances........................                                   6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         107         101         107
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         107         107         107
    90.00 Outlays...........................         107         101         107
    ---------------------------------------------------------------------------

        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

    [[Page 324]]

    School for the Deaf serves high school age students who are deaf. Both
    schools also develop and disseminate information on effective
    educational techniques and strategies for teachers and professionals
    working with students who are deaf or hard of hearing.

        In 2006, the appropriation for Gallaudet represented 63.3 percent of
    the total revenue for university-level programs and 97.8 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 includes $600,000 for the
    Secretary of Education to conduct a study that is intended to assist
    Galluadet in improving its performance on key outcome measures. The
    request also includes funds for the Endowment Grant program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0602-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.1  Advisory and assistance services..                                   1
    41.0  Grants, subsidies, and
            contributions...................         107         107         106
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         107         107         107
    ---------------------------------------------------------------------------

                    OFFICE OF VOCATIONAL AND ADULT EDUCATION

                                  Federal Funds

                      Career, Technical, and Adult Education

         For carrying out, to the extent not otherwise provided, the Carl D.
    Perkins Career and Technical Education Act of 2006 and the Adult
    Education and Family Literacy Act, $1,197,174,000, of which
    $1,189,808,000 shall become available on July 1, 2008 and shall remain
    available through September 30, 2009: Provided, That of the amounts made
    available for the Carl D. Perkins Career and Technical Education Act of
    2006, $7,366,000 is for postsecondary career and technical institutions
    under section 117: Provided further, That of the amount provided for
    Adult Education State Grants, $67,896,000 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 United States Citizenship and Immigration Services
    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
    United States Citizenship and Immigration Services 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, $9,096,000 shall be for national leadership activities
    under section 243 and $6,638,000 shall be for the National Institute for
    Literacy under section 242.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          Career and technical education:

    00.01   State grants....................       1,183       1,182       1,391
    00.02   National programs...............          11           9          11
    00.03   Occupational and employment
              information...................           1           1
    00.04   Tech prep education State grants         105         105
    00.05   Tech prep demonstration.........           5           5
    00.06   Tribally controlled
              postsecondary career and
              technical institutions........                                   7
                                               ---------   ---------  ----------
    00.91   Total, Career and technical
              education.....................       1,305       1,302       1,409
          Adult education:

    01.01   State grants....................         564         565         564
    01.02   National leadership activities..           9           7           9
    01.03   National Institute for Literacy.           6           9           7
                                               ---------   ---------  ----------
    01.91   Total, adult education..........         579         581         580
    02.01 Smaller learning communities......          90          94          90
    03.01 State grants for incarcerated
            youth offenders.................          23          23
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,997       2,000       2,079
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         136         131         128
    22.00 New budget authority (gross)......       1,992       1,997       1,988
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,128       2,128       2,116
    23.95 Total new obligations.............      -1,997      -2,000      -2,079
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         131         128          37
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,221       1,206       1,197
    40.35   Appropriation permanently
              reduced.......................         -20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,201       1,206       1,197
    55.00   Advance appropriation from prior
              year..........................         791         791         791
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,992       1,997       1,988
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,755       1,762       1,670
    73.10 Total new obligations.............       1,997       2,000       2,079
    73.20 Total outlays (gross).............      -1,987      -2,092      -1,939
    73.40 Adjustments in expired accounts
            (net)...........................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,762       1,670       1,810
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         602         654         614
    86.93 Outlays from discretionary
            balances........................       1,385       1,438       1,325
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,987       2,092       1,939
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,992       1,997       1,988
    90.00 Outlays...........................       1,987       2,092       1,939
    ---------------------------------------------------------------------------

        Career and technical education:

        State grants.--Funds support formula grants to States and localities
    to expand and improve their programs of career and technical education
    and promote equal opportunity in career and technical education programs
    for historically underserved populations.

        National programs.--Funds appropriated in 2007 will be used in 2008
    to support discretionary activities that contribute to knowledge of how
    to improve career and technical education nationally. Activities include
    a national evaluation, a national center for research and dissemination
    in career and technical education, and a program of discretionary
    research and development projects.

        Tribally controlled postsecondary career and technical
    institutions.--Funds support the operation and improvement of tribally
    controlled postsecondary career and technical institutions to help
    ensure continued and expanded educational opportunities for Indian
    students.

        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 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.

    [[Page 325]]

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    11.3  Personnel compensation: Other than
            full-time permanent.............           1           1           1
    23.1  Rental payments to GSA............           1
    25.1  Advisory and assistance services..           2           6           7
    25.2  Other services....................           4          12           8
    25.3  Other purchases of goods and
            services from Government
            accounts........................          17          17           9
    25.5  Research and development contracts          13           1           2
    41.0  Grants, subsidies, and
            contributions...................       1,958       1,962       2,051
                                               ---------   ---------  ----------
    99.0    Direct obligations..............       1,996       1,999       2,078
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,997       2,000       2,079
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-0400-0-1-501      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          13          16          16
    ---------------------------------------------------------------------------

                        OFFICE OF POSTSECONDARY EDUCATION

                                  Federal Funds

                                 Higher Education

         For carrying out, to the extent not otherwise provided, titles III,
    IV, V, VI, and VII of the Higher Education Act of 1965 (``HEA''), as
    amended, the Mutual Educational and Cultural Exchange Act of 1961,
    $1,837,737,000: Provided, That $9,797,000, to remain available through
    September 30, 2009, shall be available to fund fellowships for academic
    year 2009-2010 under part A, subpart 1 of title VII of the HEA, under
    the terms and conditions of part A, subpart 1: Provided further, That
    $970,000 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: 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: Provided
    further, That $24,000,000 shall be for grants to institutions of higher
    education, in partnership with local educational agencies, to establish
    instructional programs at all educational levels in languages critical
    to U.S. national security.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Strengthening institutions........          79          79          79
    00.02 Strengthening tribally controlled
            colleges and universities.......          24          24          19
    00.03 Strengthening Alaska Native and
            Native Hawaiian-serving
            institutions....................          12          12
    00.04 Strengthening historically black
            colleges and universities.......         238         238         238
    00.05 Strengthening historically black
            graduate institutions...........          58          58          58
    00.06 Minority science and engineering
            improvement.....................           9           9           9
                                               ---------   ---------  ----------
    00.91   Subtotal, aid for institutional
              development...................         420         420         403
          Other aid for institutions:

    01.01   Developing Hispanic-serving
              institutions..................          95          95          95
    01.02   International education and
              foreign language studies......         106         106         106
    01.03   Fund for the Improvement of
              Postsecondary Education.......          22          22          22
    01.04   Demonstration projects to ensure
              quality higher education for
              students with disabilities....           7           7
    01.05   Interest subsidy grants.........           4           4
    01.06   Tribally controlled
              postsecondary vocational and
              technical institutions........           7           7
                                               ---------   ---------  ----------
    01.91     Subtotal, other aid for
                institutions................         241         241         223
          Assistance for students:

    02.01   Federal TRIO programs...........         828         828         828
    02.02   Gaining early awareness and
              readiness for undergraduate
              programs (GEAR UP)............         303         303         303
    02.03   Byrd honors scholarships........          40          40
    02.04   Javits fellowships..............          10          10          10
    02.05   Graduate assistance in areas of
              national need.................          30          30          30
    02.06   Thurgood Marshall legal
              educational opportunity.......           3           3
    02.07   B.J. Stupak Olympic scholarships           1           1
    02.08   Child care access means parents
              in school.....................          16          16          16
                                               ---------   ---------  ----------
    02.91     Subtotal, assistance for
                students....................       1,231       1,231       1,187
    03.01 Teacher quality enhancement.......          60          60
    04.01 Other higher education activities.           3           3           1
    05.01 Advancing America through foreign
            language partnerships...........                                  24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,955       1,955       1,838
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          19          15          15
    22.00 New budget authority (gross)......       1,951       1,955       1,837
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,970       1,970       1,852
    23.95 Total new obligations.............      -1,955      -1,955      -1,838
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          15          15          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,971       1,955       1,837
    40.35   Appropriation permanently
              reduced.......................         -20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,951       1,955       1,837
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,870       2,746       2,602
    73.10 Total new obligations.............       1,955       1,955       1,838
    73.20 Total outlays (gross).............      -2,059      -2,099      -2,003
    73.40 Adjustments in expired accounts
            (net)...........................         -20
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,746       2,602       2,437
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          54         101          92
    86.93 Outlays from discretionary
            balances........................       2,005       1,998       1,911
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,059       2,099       2,003
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,951       1,955       1,837
    90.00 Outlays...........................       2,059       2,099       2,003
    ---------------------------------------------------------------------------

        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.

    [[Page 326]]

        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.

        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.

        Interest subsidy grants.--Balances from prior year appropriations
    meet mandatory interest subsidy costs of construction loan commitments
    made prior to 1974.

        Assistance for students:

        Federal TRIO programs.--Funds support postsecondary education
    outreach and support services to help disadvantaged adults enter and
    complete college and graduate studies.

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

        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.

        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 activities:

        Other higher education activities.--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.

        Advancing America through foreign language partnerships.--Funds
    support an initiative to establish fully articulated language programs
    of study in languages critical to U.S. national security through grants
    to institutions of higher education for partnerships with school
    districts for language learning from kindergarten through high school
    and into advanced language learning at the postsecondary education
    level.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0201-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.1  Advisory and assistance services..           4           4           4
    25.2  Other services....................           4           3           5
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           2           2
    25.7  Operation and maintenance of
            equipment.......................           1           1           1
    41.0  Grants, subsidies, and
            contributions...................       1,944       1,945       1,826
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,955       1,955       1,838
    ---------------------------------------------------------------------------

                                Howard University

         For partial support of Howard University (20 U.S.C. 121 et seq.),
    $233,866,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0603-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 General support...................         205         212         209
    00.02 Howard University Hospital........          29          29          29
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         234         241         238
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7          11           4
    22.00 New budget authority (gross)......         238         234         234
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         245         245         238
    23.95 Total new obligations.............        -234        -241        -238
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          11           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         240         234         234
    40.35   Appropriation permanently
              reduced.......................          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         238         234         234
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  10
    73.10 Total new obligations.............         234         241         238
    73.20 Total outlays (gross).............        -234        -231        -234
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                      10          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         234         220         220
    86.93 Outlays from discretionary
            balances........................                      11          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         234         231         234
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         238         234         234
    90.00 Outlays...........................         234         231         234
    ---------------------------------------------------------------------------

        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 2006, Federal funding represented approximately
    51 percent of the university's revenue.

          College Housing and Academic Facilities Loans Program Account

         For Federal administrative expenses to carry out activities related
    to existing facility loans pursuant to section 121 of the Higher
    Education Act of 1965, as amended $481,000.

       Historically Black College and University Capital Financing Program
                                     Account

         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,
    $188,000.

    [[Page 327]]

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............                     179
    00.05 Reestimates of direct loan subsidy                      11
    00.06 Interest on reestimates of direct
            loan subsidy....................                       3
    00.09 Federal administration............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1         194           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1         194           1
    23.95 Total new obligations.............          -1        -194          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1         180           1
          Mandatory:

    60.00   Appropriation...................                      14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           1         194           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           1         194           1
    73.20 Total outlays (gross).............          -1        -194          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1         180           1
    86.97 Outlays from new mandatory
            authority.......................                      14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1         194           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1         194           1
    90.00 Outlays...........................           1         194           1
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115002Historically Black Colleges and
            Universities....................          15          75
    115003HBCU Hurricane Supplemental.......                     235
                                               ---------   ---------  ----------
    115999Total direct loan levels..........          15         310
        Direct loan subsidy (in percent):
    132002Historically Black Colleges and
            Universities....................        0.00        0.00        0.00
    132003HBCU Hurricane Supplemental.......        0.00       76.14        0.00
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        0.00       57.72        0.00
        Direct loan subsidy budget authority:
    133003HBCU Hurricane Supplemental.......                     179
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....                     179
        Direct loan subsidy outlays:
    134003HBCU Hurricane Supplemental.......                     179
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............                     179
        Direct loan upward reestimates:
    135002Historically Black Colleges and
            Universities....................                      14
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................                      14
    ----------------------------------------------------------------------------

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

        As required by the Federal Credit Reform Act of 1990, this account
    records the subsidy costs associated with the direct loans obligated and
    loan guarantees committed in 1992 and beyond, as well as any
    administrative expenses for the College Housing and Academic Facilities
    Loans Program and the Historically Black College and University Capital
    Financing Program. The subsidy amounts are estimated on a present value
    basis; the administrative expenses are estimated on a cash basis. These
    programs are administered separately but consolidated in the President's
    budget 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.
    In 2006 P.L. 109-234, an emergency supplemental appropriation act,
    provided authority issue loans with more favorable terms to HBCUs
    affected by Hurricane Katrina. The Department estimates that it will
    guarantee $235 million of these loans in 2007, at a cost of $179
    million. The Department anticipates that the program will surpass the
    statutory loan cap of $375 million in principal and accrued interest in
    fiscal year 2007, at which point the Department will not have authority
    to make additional loan guarantees. The 2008 Budget provides funds for
    continuing Federal administrative activities only.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....                     193
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           1         194           1
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-0241-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................           5           4           4
    ---------------------------------------------------------------------------

         College Housing and Academic Facilities Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Interest paid to Treasury.........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1           1           1
    ----------------------------------------------------------------------------

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

        New financing authority (gross), detail:
          Mandatory:

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

    [[Page 328]]

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

        Outlays (gross), detail:
    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..........          -1          -1          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................          -2          -2          -2
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4252-0-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          19          18          18
    1251  Repayments: Repayments and
            prepayments.....................          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          18          18          18
    ---------------------------------------------------------------------------

        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 fiscal years 1992 and 1993. The
    amounts in this account are a means of financing and are not incuded in
    the budget totals.

                                 Balance Sheet (in millions of dollars)

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

    2005 actual

    2006 actual

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

    1401

    Direct loans receivable, gross

    19

    19

    1402

    Interest receivable

    1

    1

    1405

    Allowance for subsidy cost (-)

    -3

    -3

    1499

    Net present value of assets related to direct loans

    17

    17

    1999

    Total assets

    17

    17

        LIABILITIES:
    2103

    Federal liabilities: Debt

    17

    17

    2999

    Total liabilities

    17

    17

    4999

    Total liabilities and net position

    17

    17

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

        College Housing and Academic Facilities Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0242-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Interest paid to Treasury.........           7           8           7
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................           7           8           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1
    22.00 New budget authority (gross)......           8           8           7
    22.40 Capital transfer to general fund..                      -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8           8           7
    23.95 Total new obligations.............          -7          -8          -7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           3           2           2
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          37          31          28
    69.27     Capital transfer to general
                fund........................         -25         -22         -20
    69.47     Portion applied to repay debt.          -7          -3          -3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           5           6           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           8           8           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1
    73.10 Total new obligations.............           7           8           7
    73.20 Total outlays (gross).............          -8          -8          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           8           8           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Repayments of principal.......         -27         -21         -19
    88.40     Interest received on loans....         -10         -10          -9
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -37         -31         -28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -29         -23         -21
    90.00 Outlays...........................         -29         -23         -21
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0242-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          83          76          73
    1251  Repayments: Repayments and
            prepayments.....................          -7          -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          76          73          70
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          17          16          14
    1251  Repayments: Repayments and
            prepayments.....................          -1          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          16          14          12
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         182         163         147
    1251  Repayments: Repayments and
            prepayments.....................         -19         -16         -15
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         163         147         132
    ---------------------------------------------------------------------------

        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
    obligated 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.

                                 Balance Sheet (in millions of dollars)

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

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1601

    Direct loans, gross

    282

    255

    1602

    Interest receivable

    6

    6

    1699

    Value of assets related to direct loans

    288

    261

    1999

    Total assets

    288

    261

    [[Page 329]]

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    83

    76

    2104

    Resources payable to Treasury

    205

    185

    2999

    Total liabilities

    288

    261

    4999

    Total liabilities and net position

    288

    261

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

     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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan awards................          15         310
    00.02 Interest paid to Treasury.........           7           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          22         317           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          22         317           7
    23.95 Total new obligations.............         -22        -317          -7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          15         310
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          20         205          12
    69.47     Portion applied to repay debt.         -13        -198          -5
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           7           7           7
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          22         317           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38          11         150
    73.10 Total new obligations.............          22         317           7
    73.20 Total financing disbursements
            (gross).........................         -49        -178        -256
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          11         150         -99
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          49         178         256
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                    -193
    88.40     Interest repayments...........          -7          -7          -7
    88.40     Principal repayments..........         -13          -5          -5
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -20        -205         -12
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           2         112          -5
    90.00 Financing disbursements...........          29         -27         244
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4255-0-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         208         216
    1142  Unobligated direct loan limitation
            (-).............................        -193          94
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          15         310
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         126         155         320
    1231  Disbursements: Direct loan
            disbursements...................          42         170         249
    1251  Repayments: Repayments and
            prepayments.....................         -13          -5          -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         155         320         564
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Federal
    Government resulting from direct loans obligated in fiscal year 1996 and
    beyond. 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. The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    10

    22

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

    1401

    Direct loans receivable, gross

    126

    155

    1402

    Interest receivable

    3

    3

    1499

    Net present value of assets related to direct loans

    129

    158

    1999

    Total assets

    139

    180

        LIABILITIES:
          Federal liabilities:

    2102

    Interest payable

    3

    3

    2103

    Debt

    126

    155

    2201

    Non-Federal liabilities: Undisbursed direct loans

    10

    22

    2999

    Total liabilities

    139

    180

    4999

    Total liabilities and net position

    139

    180

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

                          OFFICE OF FEDERAL STUDENT AID

                                  Federal Funds

                           Student Financial Assistance

         For carrying out subpart 1 of part A, and part C of title IV of the
    Higher Education Act of 1965, as amended, $14,203,492,000, which shall
    remain available through September 30, 2009.
         The maximum Pell Grant for which a student shall be eligible during
    award year 2008-2009 shall be $4,050.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Federal Pell grants...............      14,801      12,297      12,985
    02.01 Federal supplemental educational
            opportunity grants (SEOG).......         776         772
    02.02 Federal work-study................       1,005         981         980
    02.03 Federal Perkins loans: Fed.
            capital contributions...........           5
    02.04 Federal Perkins loans: Loan
            cancellations...................          65          65
                                               ---------   ---------  ----------
    02.91   Campus-based activities--
              Subtotal (1 level)............       1,851       1,818         980
    03.01 Leveraging educational assistance
            partnership.....................          65          65
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................      16,717      14,180      13,965
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          23       2,694       3,002
    22.00 New budget authority (gross)......      19,255      14,488      14,203
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         133
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      19,411      17,182      17,205
    23.95 Total new obligations.............     -16,717     -14,180     -13,965
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       2,694       3,002       3,240
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    [[Page 330]]

    40.00   Appropriation...................      15,078      14,488      14,203
    40.00   Appropriation...................
    40.35   Appropriation permanently
              reduced.......................        -151
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      14,927      14,488      14,203
          Mandatory:

    60.00   Appropriation...................       4,300
    63.00   Reappropriation.................          28
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      19,255      14,488      14,203
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       6,861       8,722       8,702
    73.10 Total new obligations.............      16,717      14,180      13,965
    73.20 Total outlays (gross).............     -14,710     -14,200     -14,244
    73.40 Adjustments in expired accounts
            (net)...........................         -13
    73.45 Recoveries of prior year
            obligations.....................        -133
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       8,722       8,702       8,423
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       8,011       3,216       2,997
    86.93 Outlays from discretionary
            balances........................       6,679      10,976      11,247
    86.97 Outlays from new mandatory
            authority.......................          20
    86.98 Outlays from mandatory balances...                       8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      14,710      14,200      14,244
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      19,255      14,488      14,203
    90.00 Outlays...........................      14,710      14,200      14,244
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............         19,254         14,488          14,203
      Outlays.....................         14,710         14,200          14,244
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                         2,216
      Outlays.....................                                           532

    Total:
      Budget Authority............         19,254         14,488          16,419
      Outlays.....................         14,710         14,200          14,776

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         323         322         321
    1251  Repayments: Repayments and
            prepayments.....................         -26         -26         -26
          Write-offs for default:

    1263    Direct loans....................         -14         -14         -14
    1264    Other adjustments, net..........          39          39          39
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         322         321         320
    ---------------------------------------------------------------------------

        Notes: Figures include, in all years, institutional matching share
    of defaulted notes assigned from institutions to the Education
    Department.

        The Administration's student aid policy proposals, including funding
    levels for programs in the Student Financial Assistance account, are
    discussed under the Federal Direct Student Loan Program account.
    Authorizing legislation to implement these policies, which will be
    proposed for later transmittal, will provide substantial mandatory
    funding resources that will allow the maximum Pell Grant level to be
    increased to $4,600, $550 above the level shown in the above
    appropriations language. When these mandatory funds are taken into
    account, funding from the Student Financial Assistance account and
    related matching funds would provide nearly 6.3 million awards totaling
    over $16.4 billion in available aid in award year 2008-2009.

        Federal Pell Grants.--Pell Grants are the single largest source of
    grant aid for postsecondary education. In 2007, more than 5 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.

        Federal Work Study.--This program provides aid administrators with
    considerable flexibility in packaging financial aid awards to best meet
    student needs. 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.

        Funding Tables.--The following tables display student aid funds
    available, the number of aid awards, average awards, and the
    unduplicated count of recipients from any Federal student aid program.
    The tables include aid from programs in the Student Financial Assistance
    account, as well as aid from the Academic Competitiveness/SMART Grant,
    Federal Family Education Loan, and William D. Ford Direct Student Loan
    programs. Loan amounts reflect the capital actually loaned, not the
    Federal cost of these loans. The data in these tables include matching
    funds wherever appropriate. The 2008 data in these tables reflect the
    Administration's legislative proposals.

          AID FUNDS AVAILABLE FOR POSTSECONDARY EDUCATION AND TRAINING

                                 [in thousands]

                                            2006         2007        2008
    Pell grants...................     12,880,787     12,954,395      15,175,820
    Academic Competitiveness
    Grants........................        340,000        420,000         830,000
    SMART grants..................        310,000        310,000         350,000
    Student loans:
      Guaranteed student loans:
        Stafford loans............     19,856,009     21,410,043      23,721,725
        Unsubsidized Stafford
          loans...................     20,067,865     21,784,501      23,912,997
        PLUS......................      7,382,849      9,207,694      10,210,395
      Direct student loans:
        Stafford loans............      5,604,411      5,943,987       6,637,369
        Unsubsidized Stafford
          loans...................      4,784,107      5,158,934       5,649,747
        PLUS......................      2,288,328      2,493,366       2,762,814
      Consolidation:
        FFEL......................     72,009,607     26,852,938      31,882,248
        Direct Loans..............     19,347,290      4,465,821       4,996,000
      Perkins loans...............      1,134,733      1,104,497               0
          Student loans, subtotal.    152,475,199     98,421,781     112,783,271
    Work study....................      1,174,800      1,174,970       1,174,970
    Supplemental educational
    opportunity grants............        975,864        975,432               0
    Leveraging educational
    assistance partnerships.......        164,960        164,960               0
                                        ------------------------------------
          Total aid available.....    168,321,610    114,421,538     127,304,154

                              NUMBER OF AID AWARDS

                                 [in thousands]

                                            2006         2007        2008
        Pell grants...............          5,165          5,274           5,478
        Academic competitiveness
          grants..................            400            497             662
        SMART grants..............             80             82              93
        Guaranteed student loans--
          Stafford loans..........          5,706          5,913           6,090
        Guaranteed student loans--
          Unsubsidized Stafford
          loans...................          4,585          4,786           4,976
        Guaranteed student loans--
          PLUS....................            691            797             840
        Guaranteed student loans--
          Consolidation...........          2,622            992           1,137
        Direct student loans--
          Stafford loans..........          1,153          1,503           1,547
        Direct student loans--
          Unsubsidized Stafford
          loans...................          1,091          1,094           1,133
        Direct student loans--PLUS            237            242             255
        Direct student loans--
          Consolidation...........            756            200             200
        Perkins loans.............            514            501               0
        Work-study................            880            880             880
        Supplemental educational
          opportunity grants......          1,291          1,290               0
        Leveraging eduational
          assistance partnerships.            165            165               0
                                        ------------------------------------
          Total awards............         25,696         24,216          23,291

    [[Page 331]]

                               AVERAGE AID AWARDS

                               [in whole dollars]

                                            2006         2007        2008
        Pell grants...............          2,494          2,456           2,770
        Academic competitiveness..            850            845           1,254
        SMART Grants..............          3,875          3,780           3,763
        Guaranteed student loans--
          Stafford loans..........          3,480          3,621           3,895
        Guaranteed student loans--
          Unsubsidized Stafford
          loans...................          4,377          4,552           4,806
        Guaranteed student loans--
          PLUS....................         10,678         11,557          12,152
        Guaranteed student loans--
          Consolidation...........         27,465         27,075          28,040
        Direct student loans--
          Stafford loans..........          3,704          3,954           4,290
        Direct student loans--
          Unsubsidized Stafford
          loans...................          4,386          4,715           4,987
        Direct student loans--PLUS          9,675         10,300          10,834
        Direct student loans--
          Consolidation...........         25,607         22,292          22,673
        Perkins loans.............          2,206          2,206               0
        Work-study................          1,335          1,335           1,335
        Supplemental educational
          opportunity grants......            756            756               0
        Leveraging educational
          assistance partnerships.          1,000          1,000               0

                            NUMBER OF STUDENTS AIDED

                                 [in thousands]

    Unduplicated student count....         10,409         10,766          11,076

                     ADMINISTRATIVE PAYMENTS TO INSTITUTIONS

                            [in thousands of dollars]

                                            2006         2007        2008
    Pell grants...................         25,827         26,372          27,389
    Work-study....................         73,445         73,456          73,445
    Supplemental educational
    opportunity grants............         39,035         39,017               0
    Perkins loans.................         45,389         44,180               0

                           Student financial assistance

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Federal Pell Grants...............                               1,640
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                               1,640
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                               2,216
    23.95 Total new obligations.............                              -1,640
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 576
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                               2,216
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                               1,640
    73.20 Total outlays (gross).............                                -532
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                               1,108
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 532
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               2,216
    90.00 Outlays...........................                                 532
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0200-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1251  Repayments: Repayments and
            prepayments.....................                                  26
          Write-offs for default:

    1263    Direct loans....................                                  14
    1264    Other adjustments, net..........                                -360
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                -320
    ---------------------------------------------------------------------------

                  Academic Competitiveness/SMART Grant Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0205-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program activity...........          47       1,187         850
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          47       1,187         850
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         790         850         920
    22.30 Expired unobligated balance
            transfer to unexpired account...                     743         406
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         790       1,593       1,326
    23.95 Total new obligations.............         -47      -1,187        -850
    23.98 Unobligated balance expiring or
            withdrawn.......................        -743        -406        -476
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         790         850         920
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       3         323
    73.10 Total new obligations.............          47       1,187         850
    73.20 Total outlays (gross).............         -44        -867        -771
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           3         323         402
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          44         140         211
    86.98 Outlays from mandatory balances...                     727         560
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          44         867         771
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         790         850         920
    90.00 Outlays...........................          44         867         771
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............            790            850             920
      Outlays.....................             44            867             771
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                           260
      Outlays.....................                                            72

    Total:
      Budget Authority............            790            850           1,180
      Outlays.....................             44            867             843

        These need-based programs provide grants to U.S citizens who attend
    school on a full-time basis. Students receiving grants must be eligible
    to receive a Pell Grant and, for second-, third-, and fourth-year
    students, must maintain at least a 3.0 grade point average.

        Academic Competitiveness Grants (ACG). These grants are awarded to
    first-year and second-year students who have completed a rigorous course
    of study in high school. Grant levels are $750 for first-year students
    and $1,300 for second-year students.

        Science and Mathematics Access to Retain Talent (SMART) Grants.
    These grants are awarded to third-year and fourth-year students pursuing
    a major in mathematics, science, or a foreign language deemed critical
    to national security. Grant levels are $4,000 for both third- and
    fourth-year students

         Taken together with other Federal student aid, grants cannot exceed
    a student's cost of attendance. Program funding in excess of the amount
    needed to fund grants in a given year can be carried over for use in
    subsequent years; if the mandatory funding level is insufficient to fund
    program grants, grant levels are reduced.

    [[Page 332]]

        The Administration's student aid policy proposals, including those
    related to the ACG/SMART Grants, are discussed under the Federal Direct
    Student Loan Program Account.

                  Academic Competitiveness/SMART Grant Program

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0205-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program activity...........                                 240
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 240
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 260
    23.95 Total new obligations.............                                -240
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                  20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                 260
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 240
    73.20 Total outlays (gross).............                                 -72
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                 168
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  72
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 260
    90.00 Outlays...........................                                  72
    ---------------------------------------------------------------------------

                               Perkins Loan Assets

        The 2008 Budget proposes to eliminate the Perkins Loan program and
    to recall the entire Federal portion of revolving funds held by
    participating institutions. This proposal is discussed, as part of a
    broader review of student aid policy proposals, under the Federal Direct
    Student Loan Program Account. The Perkins Loan account records amounts
    recalled from Perkins Loan institutions and subsequent repayments on
    outstanding Perkins Loans, as well as reimbursements of institutional
    funds to participating schools.

                               Perkins loan assets

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0219-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Institutional Share of Perkins
            Collections.....................                                  87
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  87
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  87
    23.95 Total new obligations.............                                 -87
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).                                 506
    69.27     Capital transfer to general
                fund........................                                -419
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                                  87
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  87
    73.20 Total outlays (gross).............                                 -87
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  87
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                -506
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -419
    90.00 Outlays...........................                                -419
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0219-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1251  Repayments: Repayments and
            prepayments.....................                                -506
          Write-offs for default:

    1263    Direct loans....................                                 -54
    1264    Other adjustments, net..........                               8,000
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                               7,440
    ---------------------------------------------------------------------------

                            Student Aid Administration

         For Federal administrative expenses 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, $708,216,000, which
    shall remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0202-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Student aid administration........         119         718         708
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         119         718         708
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         119         718         708
    23.95 Total new obligations.............        -119        -718        -708
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         120         718         708
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         119         718         708
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          36          45         324
    73.10 Total new obligations.............         119         718         708
    73.20 Total outlays (gross).............        -110        -439        -622
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          45         324         410
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          82         409         406
    86.93 Outlays from discretionary
            balances........................          28          30         216
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         110         439         622
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         119         718         708
    90.00 Outlays...........................         110         439         622
    ---------------------------------------------------------------------------

        The Department of Education manages Federal student aid programs
    that will provide $127.3 billion in Federal student aid grants and loans
    to 11.1 million students and parents in 2008. Primary responsibility for
    administering these programs lies with the Office of Postsecondary
    Education and

    [[Page 333]]

    the performance-based Federal Student Aid (FSA), which are both overseen
    by the Office of the Under Secretary. 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.

        Prior to 2007, student aid administrative activities were funded
    from two main sources: (1) funds appropriated on a permanent basis under
    section 458 of the Higher Education Act (which included an amount--$220
    million in 2006--for account maintenance fee payments to Federal Family
    Education Loan guaranty agencies); and (2) a discretionary appropriation
    partially supporting student aid administrative activities. Under the
    Higher Education Reconciliation Act of 2005, student aid administrative
    funds for 2007 and subsequent years are funded from a single
    discretionary account. (Account maintenance fees payments for these
    years are paid from the FFEL Program Account.)

        The Budget for 2008 includes $708 million for student aid
    administration. Most of these funds support systems maintained by
    private contractors to process student aid applications; provide and
    track aid awards to students, parents, and schools; and service the
    over-$100 billion portfolio of William D. Ford Direct Student Loans.

        Consistent with Section 484(q) of the Higher Education Act and
    Section 6103(c) of the Internal Revenue Code, the Department of
    Education and the Internal Revenue Service intend to implement a process
    to verify students' (and their parents') income, tax and certain
    household information appearing on their income tax return that they
    provided as part of their application for Federal student aid. This
    process is part of ongoing efforts to ensure students receive the
    correct amount of Federal student aid, and is a key component of the
    Administration's efforts to reduce erroneous payments government-wide.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0202-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          42         104         108
    11.3    Other than full-time permanent..           2
    11.5    Other personnel compensation....           1           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          45         106         110
    12.1  Civilian personnel benefits.......          12          27          29
    21.0  Travel and transportation of
            persons.........................                       4           4
    23.1  Rental payments to GSA............           5          15          14
    23.3  Communications, utilities, and
            miscellaneous charges...........           4           7           7
    24.0  Printing and reproduction.........           2           7           8
    25.1  Advisory and assistance services..                       3           3
    25.2  Other services....................           1          35          37
    25.3  Other purchases of goods and
            services from Government
            accounts........................           6          13          13
    25.7  Operation and maintenance of
            equipment.......................          43         496         480
    26.0  Supplies and materials............                       1           1
    31.0  Equipment.........................           1           2           1
    32.0  Land and structures...............                       2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         119         718         708
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-0202-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         505       1,132       1,132
    ---------------------------------------------------------------------------

                        Federal Student Loan Reserve Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4257-0-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.02 Obligations, non-federal..........       5,385       6,198       6,812
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................       5,385       6,198       6,812
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         888         579         747
    22.00 New budget authority (gross)......       5,356       6,461       7,099
    22.40 Capital transfer to general fund..        -280         -95
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,964       6,945       7,846
    23.95 Total new obligations.............      -5,385      -6,198      -6,812
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         579         747       1,034
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       5,356       6,461       7,099
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............       5,385       6,198       6,812
    73.20 Total outlays (gross).............      -5,386      -6,198      -6,812
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       5,210       5,854       6,419
    86.98 Outlays from mandatory balances...         176         344         393
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       5,386       6,198       6,812
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -5,210      -5,854      -6,419
    88.40     Non-Federal sources...........        -146        -607        -680
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -5,356      -6,461      -7,099
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          30        -263        -287
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............
      Outlays.....................             30           -263            -287
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............
      Outlays.....................                                            -5

    Total:
      Budget Authority............
      Outlays.....................             30           -263            -292

        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.

        The following schedule reflects the balances in these guaranty
    agency funds. During 2007, OMB, Treasury and the Department plan to
    review the budgetary and financial presentation of these funds in the
    context of relevant laws and guidance.

                                 Balance Sheet (in millions of dollars)

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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    1,040

    579

    1999

    Total assets

    1,040

    579

        NET POSITION:
    3300

    Cumulative results of operations

    1,040

    579

    3999

    Total net position

    1,040

    579

    4999

    Total liabilities and net position

    1,040

    579

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

    [[Page 334]]

                        Federal Student Loan Reserve Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4257-4-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.02 Obligations, non-federal..........                                -133
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................                                -133
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -128
    23.95 Total new obligations.............                                 133
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                   5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                -128
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                -133
    73.20 Total outlays (gross).............                                 133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                -128
    86.98 Outlays from mandatory balances...                                  -5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                -133
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                                 128
    ----------------------------------------------------------------------------

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

               Federal Direct Student Loan Program Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct Loan Subsidy...............       1,807         474         500
    00.03 Subsidy modification, upward......           7
    00.05 Upward Reestimate.................       3,327       3,614
    00.06 Interest on Upward Reestimate.....       1,573       1,088
    00.09 Administrative expenses...........         828
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       7,542       5,176         500
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          27          28          28
    22.00 New budget authority (gross)......       7,534       5,176         500
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       7,570       5,204         528
    23.95 Total new obligations.............      -7,542      -5,176        -500
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          28          28          28
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         600
          Mandatory:

    60.00   Appropriation -federal
              administration................         220
    60.00   Appropriation (indefinite)--loan
              subsidy.......................       1,807         474         500
    60.00   Appropriation--upward
              modification..................           7
    60.00   Appropriation (indefinite)--
              Upward reestimate.............       4,900       4,702
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       6,934       5,176         500
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections
                (cash)--negative subsidy....
    69.00     Offsetting collections
                (cash)--downward reestimate.         501
    69.00     Offsetting collections
                (cash)--downward reestimate,
                interest....................          22
    69.00     Offsetting collections
                (cash)--admin...............
    69.27     Capital transfer to general
                fund........................        -523
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       7,534       5,176         500
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         361         517         164
    73.10 Total new obligations.............       7,542       5,176         500
    73.20 Total outlays (gross).............      -7,365      -5,529        -525
    73.40 Adjustments in expired accounts
            (net)...........................         -12
    73.45 Recoveries of prior year
            obligations.....................          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         517         164         139
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         288
    86.93 Outlays from discretionary
            balances........................         296         234          65
    86.97 Outlays from new mandatory
            authority.......................       6,759       5,112         413
    86.98 Outlays from mandatory balances...          22         183          47
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,365       5,529         525
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -523
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,011       5,176         500
    90.00 Outlays...........................       6,842       5,529         525
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............          7,011          5,176             500
      Outlays.....................          6,842          5,529             525
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                             9
      Outlays.....................                                             6

    Total:
      Budget Authority............          7,011          5,176             509
      Outlays.....................          6,842          5,529             531

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

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Stafford..........................       6,174       6,557       6,975
    115002Unsubsidized Stafford.............       5,497       5,812       6,226
    115003PLUS..............................       2,416       2,606       2,888
    115004Consolidation.....................      22,218       4,528       5,014
                                               ---------   ---------  ----------
    115999Total direct loan levels..........      36,305      19,503      21,103
        Direct loan subsidy (in percent):
    132001Stafford..........................       10.65       11.06       11.56
    132002Unsubsidized Stafford.............       -7.56       -7.60       -7.12
    132003PLUS..............................       -6.05       -4.91       -4.90
    132004Consolidation.....................        7.70        7.04        5.56
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        4.98        2.43        2.37
        Direct loan subsidy budget authority:
    133001Stafford..........................         658         725         806
    133002Unsubsidized Stafford.............        -416        -442        -443
    133003PLUS..............................        -146        -128        -142
    133004Consolidation.....................       1,711         319         279
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....       1,807         474         500
        Direct loan subsidy outlays:
    134001Stafford..........................         553         630         710
    134002Unsubsidized Stafford.............        -343        -382        -394
    134003PLUS..............................        -118        -129        -130
    134004Consolidation.....................       1,695         321         275
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............       1,787         440         461
        Direct loan upward reestimates:
    135001Stafford..........................       1,785         382
    135002Unsubsidized Stafford.............         129         732
    135003PLUS..............................          33         166

    [[Page 335]]

    135004Consolidation.....................       3,124       3,571
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................       5,071       4,851
        Direct loan downward reestimates:
    137001Stafford..........................         -51        -157
    137002Unsubsidized Stafford.............        -245         -45
    137003PLUS..............................         -76         -61
    137004Consolidation.....................        -322        -870
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................        -694      -1,133
    ---------------------------------------------------------------------------

        The Federal Government operates two major student loan programs: the
    Federal Family Education Loan (FFEL) program and the William D. Ford
    Federal Direct Loan (Direct Loan) program. For 2008, the President is
    committed to improving the efficiency of both programs and allowing
    individual institutions to choose which of these two programs best meets
    their needs and the needs of their students.

        This summary section outlines the structure of these two programs,
    highlights their differences and similarities, and provides text tables
    displaying program cost data; loan volume, subsidy, default, and
    interest rates; and other descriptive information. This section also
    concludes with a comprehensive discussion of the Administration's policy
    proposals for the Federal student financial aid programs.

        From its inception in 1965 through 2006, the FFEL program has
    provided $636 billion in loans to postsecondary students and their
    parents. Since July 1, 1994, the Direct Loan program has provided $176
    billion in new and consolidation loans to students and parents. Taken
    together, the FFEL and Direct Loan programs will make nearly $67 billion
    in new loans available in 2007. 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 expand 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. The Direct Loan program began
    operation in academic year 1994-1995 with 7 percent of overall loan
    volume and is expected to account for 20 percent in academic year 2008-
    2009. 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, and Consolidation. Evidence of financial need is required for a
    student to receive a subsidized Stafford loan. The other three loan
    programs are available to borrowers at all income levels. Loans can be
    used only to meet qualified educational expenses.

        For Stafford Loans made on or after July 1, 2006, the borrower
    interest rate is fixed at 6.8 percent. For most loans made immediately
    prior to July 1, 2006, the borrower interest rate 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 most PLUS loans made
    prior to July 1, 2006, 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. The fixed borrower interest rate on PLUS loans made on
    or after July 1, 2006, is 7.9 percent for Direct Loans and 8.5 percent
    for FFEL.

        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. For periods when the borrower interest rate exceeds the
    special allowance rate on loans made on or after April 1, 2006, lenders
    remit the difference to the government.

        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. The Higher Education Reconciliation
    Act of 2005 eliminated the practice of in-school loan consolidation and
    revised the circumstances under which a FFEL borrower could obtain a
    Direct Consolidation Loan.

        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. The Higher Education Reconciliation Act of 2005
    includes phased reductions that eliminate FFEL origination fees by July
    1, 2010, and lowers Direct Loan fees to 1 percent by the same date; the
    Act also requires guaranty agencies to collect the insurance premium.
    Borrowers in both programs may be offered financial incentives to
    encourage prompt repayment.

        Loan limits are also identical across the two programs. 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; this benefit is increased 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.

        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 ex

    [[Page 336]]

    tended repayment plan of up to 25 years is available for new borrowers
    with outstanding loans totalling more than $30,000. FFEL borrowers may
    change repayment plans annually.

        Student Aid Policy Proposals. There is a broad national consensus,
    highlighted in the recent report of the Secretary of Education's
    Commission on the Future of Higher Education, that rapidly rising
    college costs are a growing barrier to higher education for many
    students and families. The President proposes a package of reforms to
    address this problem by substantially increasing need-based grant and
    loan assistance, streamlining Federal student aid programs to make them
    simpler for students and parents to negotiate and schools to administer,
    and restructuring the student loan programs to increase efficiency and
    eliminate excessive or unnecessary subsidies. These proposals will raise
    the maximum Pell Grant to $5,400 over five years, expand the Academic
    Competitiveness/SMART Grant program, and increase student loan limits.
    This comprehensive package of proposals is budget neutral.

        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 $19.8
    billion in new mandatory funding for the Pell Grant program from 2008-
    2017. These funds would be used to increase the maximum grant award by
    $550 in 2008 and $200 a year for the next four years, to $5,400 in award
    year 2012-13. The Administration proposes to fund this proposal through
    mandatory savings generated by other student aid policy 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. 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. 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.

        Academic Competitiveness/SMART Grants. Currently, needy students who
    have completed a rigorous program of study in high school and meet other
    eligibility criteria are eligible for Academic Competitiveness Grants
    (ACG) of up to $750 and $1,300 in their first and second years of
    college, respectively. The Administration proposes to increase these
    amounts by 50 percent, to $1,125 and $1,950, at a mandatory cost of $260
    million in 2008 and $1.0 billion over 2008-2012. Congress provided that
    ACG/SMART sunsets at the academic year 2010-11 (June 30, 2011). The
    Administration is dedicated to continue providing grants to students
    served by these programs. Program evaluations and PART assessments of
    these new programs, which only began operation on July 1, 2006, are
    needed to inform how best to serve these students going forward from
    2010-11.

        Campus-Based Programs. The Secretary of Education's Commission on
    the Future of Higher Education found that the Federal student aid
    programs were needlessly complex and duplicative. Accordingly, the
    Administration proposes eliminating the duplicative and poorly allocated
    Supplemental Educational Opportunity Grant (SEOG) and Perkins Loan
    programs. No funds are included for the Leveraging Educational
    Assistance Partnership program. The Administration believes it would be
    most effective to consolidate Federal grant efforts in the more
    equitably distributed and far larger Pell Grant program.

        The Federal portion of Perkins Loan revolving funds held by
    participating institutions would also be recalled. With the number of
    Perkins Loan institutions declining from 3,338 in academic year 1983-84
    to 1,315 in 2004-05 and with less than 3 percent of students enrolled in
    postsecondary education receiving Perkins Loans each year, the
    Administration also believes the federal share of funds held by this
    small group of institutions would better serve students if invested in
    Pell Grants. 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 $3.2 billion in savings. These
    savings would help offset the cost of increases in need-based aid and
    higher loan limits which are available to eligible students regardless
    of the institutions they attend.

        The 2008 Budget includes $980 million for Work-Study, which would
    generate $1.2 billion in new aid to over 880,000 students.

        Student Loans. The student loan programs currently provide subsidies
    that are higher than needed to ensure lender participation in the FFEL
    program, and that loans are available to all eligible students under the
    current structure, while exposing lenders and other intermediaries to
    minimal financial risk. Operational efficiencies that have benefited
    these participants have not been matched by comparable reductions in
    Federal subsidies. The 2008 Budget includes a comprehensive package of
    proposals to make student loan programs more efficient, cost-effective
    vehicles for helping students finance their postsecondary educations.
    Savings generated from these proposals would in large part be reinvested
    in benefits for students in the Pell Grant, ACG/SMART Grant, and student
    loan programs. To help students meet rising higher education costs, the
    Administration is proposing to increase annual subsidized loan limits by
    $2,000 for third- and fourth-year students, as well as increases in
    overall aggregate loan limits. The Administration also proposes to
    standardize PLUS Loan interest rates, which were inadvertantly set at
    different levels for FFEL and Direct Loans in the Higher Education
    Reconciliation Act of 2005, at a fixed rate of 8.3 percent.

        The Administration proposes to reduce lender interest subsidy
    payments by 50 basis points and increase the lender origination fee paid
    on new consolidation loans to 1 percent from .5 percent; both these
    changes would recapture excess earnings resulting from the basic program
    structure. 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 97
    percent to 95 percent, as well as reduce the amount insured for lenders
    identified as exceptional performers from 99 percent to 97 percent.
    Proposals affecting lenders will reduce Federal costs by $14.9 billion
    over 2008-2012.

        The Administration expects guaranty agencies to operate more
    efficiently in the future; to better capture the benefits of this
    increased efficiency, the basis for agency account maintenance fee
    payments would be shifted from the balance of loans guaranteed to a
    cost-per-unit formula. The Administration would also reduce the amount
    guaranty agencies may retain from collections on most defaulted loans
    from 23 percent to 16 percent, roughly the average paid by the
    Department of Education to private collection agents. Overall, changes
    to the guaranty agency system would reduce Federal costs by a combined
    $3.9 billion over 2008-2012.

    [[Page 337]]

        In total, the Administration proposes redirecting $18.8 billion from
    the loan programs to grant aid for needy students over the same period.

        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 assuming passage of the President's budget and
    legislative request.

                                 Funding Levels

                            (in thousands of dollars)

                                            2006         2007        2008
    Program Cost:
    FFEL:
      Liquidating\1\ .............      (553,562)      (747,495)       (690,939)
      Program:
        Regular...................      4,629,364      4,452,007       4,444,345
        Consolidation.............     12,644,425      1,408,255       (582,961)
        Net Reestimate of Prior
          Year Costs..............      9,084,333    (3,159,611)               0
        Net Modification\2\ ......      1,709,540              0       2,804,433
                                        ------------------------------------
          Subtotal, Program.......     28,067,662      2,700,651       1,056,951
                                        ------------------------------------
            Total FFEL.................27,514,100      1,953,156         366,012
    Direct Loans:
      Program:
        Regular...................         95,790        155,452         222,001
        Consolidation.............      1,710,786        318,770         287,248
        Net Reestimate of Prior
          Year Costs..............      4,377,453      3,717,563               0
        Net Modification\2\ ......          7,291              0               0
                                        ------------------------------------
          Total, Direct Loans.....      6,191,320      4,157,808         509,249
          Total, FFEL and Direct
            Loans.................     33,705,420      6,144,941         875,261
    Program Cost Outlays:
    FFEL:
      Liquidating\1\ .............      (825,314)      (747,495)       (690,939)
      Program:
        Regular...................      3,876,499      3,862,234       3,849,169
        Consolidation.............     12,461,466      1,444,229       (575,839)
        Net Reestimate of Prior
          Year Costs..............      9,084,333    (3,159,611)               0
        Net Modification\2\ ......      1,709,540              0     (2,804,433)
                                        ------------------------------------
          Subtotal, Program.......     27,131,838      2,146,852         468,897
                                        ------------------------------------
            Total, FFEL................26,306,524      1,399,357       (222,042)
    Direct Loans:
      Program:
        Regular...................         92,105        119,513         183,029
        Consolidation.............      1,695,374        320,732         283,359
        Net Reestimate of Prior
          Year Costs..............      4,377,453      3,717,563               0
        Net Modification\2\ ......          7,291              0               0
                                        ------------------------------------
          Total, Direct Loans.....      6,172,223      4,791,479         466,388
          Total, FFEL and Direct
            Loans.................     32,478,747      5,557,165         244,346
        \1\ Liquidating account reflects loans made prior to 1992.
        \2\ Reflects the cost or savings associated with policy changes,
    including those contained in the Higher Education Reconciliation Act of
    2006, that would affect the terms of existing loans.

                           Summary of Loans Available

                  (net commitments in millions of dollars)\1\

                                         2006 actual  2007 est.   2008 est.
    FFEL:
      Stafford....................         19,856         21,410          23,722
      Unsubsidized Stafford.......         20,068         21,785          23,913
      PLUS........................          7,383          9,208          10,210
                                        ------------------------------------
        Subtotal..................         47,307         52,402          57,845
      Consolidation...............         72,010         26,853          31,882
                                        ------------------------------------
        Total, FFEL...............        119,316         79,255          89,727
    Direct Loans:
      Stafford....................          5,604          5,944           6,637
      Unsubsidized Stafford.......          4,784          5,159           5,650
      PLUS........................          2,288          2,493           2,763
                                        ------------------------------------
        Subtotal..................         12,677         13,596          15,050
      Consolidation...............         19,347          4,466           4,996
                                        ------------------------------------
        Total, Direct Loans.......         32,024         18,062          20,046
        Total, All Loans..........        151,340         97,317         109,773
        \1\ Net commitments equal gross commitments minus loan cancellations.

                                 Number of Loans

                                 (in thousands)

                                         2006 actual  2007 est.   2008 est.
    FFEL:
      Stafford....................          5,706          5,913           6,090
      Unsubsidized Stafford.......          4,585          4,786           4,976
      PLUS........................            691            797             840
                                        ------------------------------------
        Subtotal..................         10,982         11,496          11,906
      Consolidation...............          2,622            992           1,137
                                        ------------------------------------
        Total, FFEL...............         13,604         12,487          13,043
    Direct Loans:
      Stafford....................          1,513          1,503           1,547
      Unsubsidized Stafford.......          1,091          1,094           1,133
      PLUS........................            237            242             255
                                        ------------------------------------
        Subtotal..................          2,841          2,839           2,935
      Consolidation...............            756            200             220
                                        ------------------------------------
        Total, Direct Loans.......          3,596          3,040           3,155
        Total, All Loans..........         17,200         15,527          16,198

                      Average Loan Size (in whole dollars)

                                         2006 actual  2007 est.   2008 est.
    FFEL:
      Stafford....................          3,480          3,621           3,895
      Unsubsidized Stafford.......          4.377          4,552           4,806
      PLUS........................         10,678         11,557          12,152
                                        ------------------------------------
        Weighted Average, without
          Consolidations..........          4,308          4,558           4,858
                                        ------------------------------------
      Consolidation...............         27,465         27,075          28,040
                                        ------------------------------------
        Weighted Average, FFEL....          8,771          6,347           6,879
    Direct Loans:
      Stafford....................          3,704          3,954           4,290
      Unsubsidized Stafford.......          4,386          4,715           4,987
      PLUS........................          9,675         10,300          10,834
                                        ------------------------------------
        Weighted Average, without
          Consolidations..........          4,463          4,788           5,128
                                        ------------------------------------
      Consolidation...............         25,607         22,292          22,673
                                        ------------------------------------
        Weighted Average, Direct
          Loans...................          8,905          5,942           6,353
        Weighted Average, All
          Loans...................          8,799          6,268           6,777

                      Summary of Subsidy and Default Rates

                                         2006 actual  2007 est.   2008 est.
    Subsidy Rates (in percent)\1\
    FFEL:
      Stafford....................          17.99          18.03           17.33
      Unsubsidized Stafford.......           0.90           0.01           -0.95
      PLUS........................           0.10          -0.28           -0.55
      Consolidation...............          17.07           5.22           -1.82
        Weighted Average, FFEL....          13.12           6.65            3.88
    Direct Loans:
      Stafford....................           8.80          11.06           11.46
      Unsubsidized Stafford.......          -9.07          -7.60           -7.13
      PLUS........................          -5.88          -4.91           -5.66
      Consolidation...............           4.45           7.04            5.67
        Weighted Average, Direct
          Loans...................           2.35           2.43            2.35
    Default Rates (in percent)\2\
    FFEL:
      Stafford....................          12.30          12.45           12.67
      Unsubsidized Stafford.......          11.13          11.02           10.92
      PLUS........................           5.20           5.22            5.22
      Consolidation...............          13.31          13.87           13.75
        Weighted Average, FFEL....          12.27          11.70           11.74
    Direct Loans:
      Stafford....................          12.35          12.73           12.84
      Unsubsidized Stafford.......          12.41          12.49           12.40
      PLUS........................           5.49           5.50            5.50
      Consolidation...............          13.57          32.90           32.55
        Weighted Average, Direct
          Loans...................          12.60          16.65           16.62
        \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.

        FFEL program payments are made to lenders (interest subsidies, loan
    defaults and discharges) and guaranty agencies (default collection
    costs, administrative services). These pay

    [[Page 338]]

    ments 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.

        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)

                                         2006 actual  2007 est.   2008 est.
    FFEL:
    Payments to lenders
      Interest benefits...........      2,654,526      3,381,876       3,988,301
      Special allowance payments..      7,343,620      7,271,748       6,653,173
      Default claims..............      4,624,153      5,556,555       6,045,496
      Loan discharges.............        989,333      1,450,053       1,592,778
      Teacher loan forgiveness....         31,179         24,044         139,734

    Administrative payments to
    guaranty agencies.............        708,192      1,008,592         846,131

    Fees paid to the Department of
        Education
      Borrower origination fees...    (1,301,986)    (1,091,978)       (870,819)
      Lender origination fees.....      (561,699)      (390,696)       (575,235)
      Loan holder fees............    (1,848,638)    (2,249,586)     (2,415,140)
    Other Major Transactions
      Net default collections.....    (3,896,378)    (4,653,022)     (5,300,446)
      Contract collection costs...        135,318         78,828          76,813
      Federal administrative costs        227,643        225,101         221,884
    Net Cash Flow, FFEL...........      9,105,262     10,611,516      10,402,670
    Direct Loans
      Loan disbursements to
        borrowers.................     32,219,339     17,842,953      19,750,927
      Borrower interest payments..    (2,302,134)    (2,821,412)     (2,932,800)
      Borrower principal payments.   (30,141,890)   (10,596,025)    (11,426,266)
      Borrower origination fees...      (392,799)      (409,917)       (408,546)
      Net default collections.....      (750,166)    (1,741,039)     (1,984,007)
      Contract collection costs...        127,402        150,821         160,004
      Federal administrative costs        375,284        355,565         353,161
      Net Operating Cash Flows....      (864,964)      2,810,946       3,512,474
      Loan capital borrowings from
        Teasury...................   (32,219,339)   (17,872,953)    (19,750,927)
      Net interest payments to
        Treasury..................      4,579,074      5,596,934       5,981,416
      Principal payments to
        Treasury..................     22,775,795      9,613,663      10,379,899
      Subtotal Treasury activity..    (4,864,471)    (2,662,356)     (3,389,612)
    Net Cash Flow, Direct Loans...    (5,729,434)        148,589         122,862
        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. In 2006, Federal
    administrative costs include account maintenance fees payable to
    guaranty agencies; under the Higher Education Reconciliation Act of
    2005, starting in 2007, these payments are part of FFEL program payments
    and will be reflected in the program subsidy rates. 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

                           (expressed as percentages)

                                         2006 actual  2007 est.   2008 est.
    FFEL
      Program costs:\1\
        Interest subsidies........          14.68           7.21            4.65
        Net defaults..............           0.90           0.60            0.27
        Fees......................          -5.83          -4.18           -4.10
        Other.....................           3.37           3.03            3.05
                                        ------------------------------------
          Total...................          13.12           6.65            3.88
      Federal administrative costs           0.69           0.37            0.37
                                        ------------------------------------
          Total...................          13.81           7.02            4.25
    Direct Loans
      Program costs:\1\
        Interest subsidies and
          income, net.............          -5.02          -5.67           -6.21
        Net defaults..............           2.68           3.46            3.46
        Fees......................          -1.31          -2.36           -2.04
        Other.....................           6.01           7.01            7.13
                                        ------------------------------------
          Total...................           2.35           2.43            2.35
      Federal administrative costs           1.50           1.50            1.50
                                        ------------------------------------
          Total adjusted cost.....           3.85           3.93            3.85
        \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.
        Totals may not add due to rounding.

        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--1992-2007

                                                  FFEL       Direct Loans
    Original Subsidy Costs..................    +$71.6 bil       +$0.4 bil
    Cumulative Reestimates..................     +$1.2 bil      +$10.7 bil
    Net Subsidy Costs.......................    +$72.8 bil      +$11.1 bil
     Total Disbursements....................    $627.0 bil      $205.6 bil

        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
    11.60; the comparable Direct Loan rate is 5.42. For the oldest loan
    cohorts, many of the subsidy costs have been expended (e.g., in-school
    interest subsidies).

        In 2006, the Administration implemented probabilistic scoring for
    the FFEL and Direct Loan programs. Before the 2007 Midsession Review,
    estimates for both the FFEL and Direct Loan programs were developed
    using point estimates of the Budget estimate of future interest rates.
    The updated method factors in the probability that interest rate
    scenarios may differ from current economic projections. In 2006, the
    FFEL program recognized a $1.8 billion upward reestimate to reflect the
    new methodology, while the Direct Loan program recognized a $0.2 billion
    upward reestimate. Changes to special allowance formulas in the Higher
    Education Reconciliation Act of 2005, and other changes to borrower
    interest rates, mitigated interest rate risk in future cohorts, negating
    the impact of the probabilistic method for those cohorts.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          49
    11.3    Other than full-time permanent..           3

    [[Page 339]]

    11.5    Other personnel compensation....           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          53
    12.1  Civilian personnel benefits.......          13
    21.0  Travel and transportation of
            persons.........................           3
    23.1  Rental payments to GSA............           7
    23.3  Communications, utilities, and
            miscellaneous charges...........           4
    24.0  Printing and reproduction.........           6
    25.1  Advisory and assistance services..           5
    25.2  Other services....................          18
    25.3  Other purchases of goods and
            services from Government
            accounts........................           9
    25.6  Training..........................           3
    25.7  Operation and maintenance of
            equipment.......................         476
    26.0  Supplies and materials............           1
    31.0  Equipment.........................           8
    32.0  Land and structures...............           2
    41.0  Grants, subsidies, and
            contributions...................       6,934       5,176         500
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       7,542       5,176         500
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-0243-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         578
    ---------------------------------------------------------------------------

               Federal direct student loan program program account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0243-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct Loan Subsidy...............                                   9
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                   9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   9
    23.95 Total new obligations.............                                  -9
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation -federal
              administration................
    60.00   Appropriation (indefinite)--loan
              subsidy.......................                                   9
    60.00   Appropriation--upward
              modification..................
    60.00   Appropriation (indefinite)--
              Upward reestimate.............
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................                                   9
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   9
    73.20 Total outlays (gross).............                                  -6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                   3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                   6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   9
    90.00 Outlays...........................                                   6
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 91-0243-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Stafford..........................                                 347
    115002Unsubsidized Stafford.............                                 134
    115004Consolidation.....................                                  52
                                               ---------   ---------  ----------
    115999Total direct loan levels..........                                 533
        Direct loan subsidy (in percent):
    132001Stafford..........................                               -0.10
    132002Unsubsidized Stafford.............                               -0.01
    132003PLUS..............................                               -0.76
    132004Consolidation.....................                                0.11
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....                               -0.02
        Direct loan subsidy budget authority:
    133001Stafford..........................                                  33
    133002Unsubsidized Stafford.............                                 -10
    133003PLUS..............................                                 -22
    133004Consolidation.....................                                   8
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....                                   9
        Direct loan subsidy outlays:
    134001Stafford..........................                                  15
    134002Unsubsidized Stafford.............                                  -5
    134003PLUS..............................                                 -13
    134004Consolidation.....................                                   9
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............                                   6
    ---------------------------------------------------------------------------

              Federal Direct Student Loan Program Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct Loan Obligations...........      36,305      19,503      21,103
    00.02 Interest payment to Treasury......       6,505       5,597       5,974
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............      42,810      25,100      27,077
    02.01 Interest rate rebate, Stafford....          82          86          94
    02.02 Interest rate rebate, Unsubsidized
            Stafford........................          70          75          81
    02.03 Interest rate rebate, PLUS........          33          36          40
                                               ---------   ---------  ----------
    02.91   Direct Program by Activities--
              Subtotal (1 level)............         185         197         215
    03.01 Consolidation loans-Payment of
            Orig. Services..................          26          10          12
    04.01 Payment of contract collections...         127         150         160
    08.02 Payment of downward reestimate to
            receipt account (fy07)..........         501         940
    08.04 Interest on downward reestimate...          22          45
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         523         985
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      43,671      26,442      27,464
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,697       6,479
    22.00 New financing authority (gross)...      49,593      26,442      27,464
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       3,396       4,015       5,029
    22.60 Portion applied to repay debt.....      -4,536      -5,926
    22.70 Balance of authority to borrow
            withdrawn.......................                  -4,568      -5,029
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      50,150      26,442      27,464
    23.95 Total new obligations.............     -43,671     -26,442     -27,464
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       6,479
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............      35,073      20,030      20,627
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).      42,208      20,711      17,205
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -4          17          15
    69.47     Portion applied to repay debt.     -27,684     -14,316     -10,383
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      14,520       6,412       6,837
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      49,593      26,442      27,464
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       8,658       9,379       7,174
    73.10 Total new obligations.............      43,671      26,442      27,464
    73.20 Total financing disbursements
            (gross).........................     -39,558     -24,615     -25,610
    73.45 Recoveries of prior year
            obligations.....................      -3,396      -4,015      -5,029
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           4         -17         -15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       9,379       7,174       3,984
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................      39,558      24,615      25,610
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    [[Page 340]]

            Offsetting collections (cash)
                from:
    88.00     Direct Loan Subsidy...........      -1,788        -440        -461
    88.00     Upward reestimate.............      -3,327      -3,614
    88.00     Upward reestimate, interest...      -1,573      -1,088
    88.00     Upward Modification...........          -7
    88.25     Interest on uninvested funds..      -1,926
    88.40     Repayment of principal,
                Stafford....................      -8,060      -3,495      -3,756
    88.40     Interest received on loans,
                Stafford....................        -481        -482        -502
    88.40     Origination Fees, Stafford....        -175        -168        -159
    88.40     Other fees, Stafford..........         -41
    88.40     Repayment of principal,
                Unsubsidized Stafford.......      -6,462      -2,843      -3,211
    88.40     Interest received on loans,
                Unsubsidized Stafford.......        -535        -381        -412
    88.40     Origination Fees, Unsubsidized
                Stafford....................        -149        -146        -138
    88.40     Other fees, Unsubsidized
                Stafford....................          -3
    88.40     Repayment of principal, PLUS..      -2,384      -1,401      -1,662
    88.40     Interest received on loans,
                PLUS........................        -265        -286        -340
    88.40     Origination Fees, PLUS........         -70         -96        -106
    88.40     Other fees, PLUS..............          -4
    88.40     Payment of principal,
                Consolidation...............     -13,638      -4,172      -4,289
    88.40     Interest received on loans,
                Consolidation...............      -1,289      -2,099      -2,169
    88.40     Other fees, Consolidation.....         -31
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................     -42,208     -20,711     -17,205
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           4         -17         -15
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       7,389       5,714      10,244
    90.00 Financing disbursements...........      -2,650       3,904       8,405
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4253-0-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        STAFFORD
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       6,174       6,557       6,975
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       6,174       6,557       6,975
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      24,928      22,524      24,724
    1231  Disbursements: Direct loan
            disbursements...................       5,509       5,767       6,234
    1251  Repayments: Repayments and
            prepayments.....................      -8,059      -3,495      -3,756
    1261  Adjustments: Capitalized interest.         122
    1264  Write-offs for default: Other
            adjustments, net................          24         -72         -94
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      22,524      24,724      27,108
    ----------------------------------------------------------------------------

        UNSUBSIDIZED STAFFORD
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       5,497       5,812       6,226
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       5,497       5,812       6,226
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      17,829      16,361      18,746
    1231  Disbursements: Direct loan
            disbursements...................       4,687       4,987       5,415
    1251  Repayments: Repayments and
            prepayments.....................      -6,461      -2,843      -3,211
    1261  Adjustments: Capitalized interest.         288         307         494
    1264  Write-offs for default: Other
            adjustments, net................          18         -66         -85
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      16,361      18,746      21,359
    ----------------------------------------------------------------------------

        PLUS
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       2,416       2,606       2,888
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       2,416       2,606       2,888
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,922       4,765       5,702
    1231  Disbursements: Direct loan
            disbursements...................       2,191       2,399       2,658
    1251  Repayments: Repayments and
            prepayments.....................      -2,384      -1,401      -1,662
    1261  Adjustments: Capitalized interest.          31           1           7
    1264  Write-offs for default: Other
            adjustments, net................           5         -62         -68
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,765       5,702       6,637
    ----------------------------------------------------------------------------

        CONSOLIDATION
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      22,218       4,528       5,014
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...      22,218       4,528       5,014
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      47,027      53,657      53,709
    1231  Disbursements: Direct loan
            disbursements...................      19,647       4,523       4,942
    1251  Repayments: Repayments and
            prepayments.....................     -13,638      -4,172      -4,289
    1261  Adjustments: Capitalized interest.         563
    1264  Write-offs for default: Other
            adjustments, net................          58        -299        -305
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      53,657      53,709      54,057
    ---------------------------------------------------------------------------

        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 2004 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.

                                 Balance Sheet (in millions of dollars)

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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    4,913

    8,621

            Investments in US securities:
    1106

    Receivables, net

    4,150

    4,631

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

    1401

    Direct loans receivable, gross

    94,707

    97,307

    1402

    Interest receivable

    3,121

    3,702

    1405

    Allowance for subsidy cost (-)

    -2,132

    -8,405

    1499

    Net present value of assets related to direct loans

    95,696

    92,604

    1999

    Total assets

    104,759

    105,856

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    388

    426

    2103

    Debt

    104,371

    105,430

    2999

    Total liabilities

    104,759

    105,856

    4999

    Total liabilities and net position

    104,759

    105,856

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

    [[Page 341]]

              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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct Loan Obligations...........                                 533
    00.02 Interest payment to Treasury......                                   7
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............                                 540
    02.01 Interest rate rebate, Stafford....                                   3
    02.02 Interest rate rebate, Unsubsidized
            Stafford........................                                   1
                                               ---------   ---------  ----------
    02.91   Direct Program by Activities--
              Subtotal (1 level)............                                   4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 544
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                 544
    23.95 Total new obligations.............                                -544
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                                 525
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).                                  13
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........                                   3
    69.47     Portion applied to repay debt.                                   3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                                  19
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                                 544
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 544
    73.20 Total financing disbursements
            (gross).........................                                -294
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                                  -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                 247
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................                                 294
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Direct Loan Subsidy...........                                  -6
    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....................                                  -1
    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...............                                  -1
    88.40     Interest received on loans,
                Consolidation...............                                  -1
    88.40     Other fees, Consolidation.....
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................                                 -13
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............                                  -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                 528
    90.00 Financing disbursements...........                                 281
    ---------------------------------------------------------------------------

                  Federal Family Education Loan Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........      17,274       5,860       5,078
    00.04 Modification subsidy, upward......       1,724
    00.07 Upward reestimate, principal......       6,998         183
    00.08 Upward reestimate, interest.......       2,375         372
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................      28,371       6,415       5,078
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      28,371       6,415       5,078
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         632         802         622
    22.40 Capital transfer to general fund..        -632        -802        -622
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      28,371       6,415       5,078
    23.95 Total new obligations.............     -28,371      -6,415      -5,078
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................      28,371       6,415       5,078
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections
                (cash)--downward reestimate.         303
    69.00     Offsetting collections (cash).
    69.27     Capital transfer to general
                fund........................        -303
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      28,371       6,415       5,078
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,944       2,247       1,999
    73.10 Total new obligations.............      28,371       6,415       5,078
    73.20 Total outlays (gross).............     -27,435      -5,861      -4,307
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................        -632        -802        -622
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,247       1,999       2,148
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      26,125       4,417       2,931
    86.98 Outlays from mandatory balances...       1,310       1,444       1,376
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      27,435       5,861       4,307
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -303
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      28,068       6,415       5,078
    90.00 Outlays...........................      27,132       5,861       4,307
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............         28,068          6,415           5,078
      Outlays.....................         27,132          5,861           4,307
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                        -1,208
      Outlays.....................                                        -1,025

    Total:
      Budget Authority............         28,068          6,415           3,870
      Outlays.....................         27,132          5,861           3,282

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

    ----------------------------------------------------------------------------
    Identification code 91-0231-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Stafford..........................      22,728      24,840      26,863
    215002Unsubsidized Stafford.............      23,702      25,819      28,031
    215003PLUS..............................       7,358      10,425      11,560
    215004Consolidation.....................      81,788      26,978      32,014
                                               ---------   ---------  ----------

    [[Page 342]]

    215999Total loan guarantee levels.......     135,576      88,062      98,468
        Guaranteed loan subsidy (in percent):
    232001Stafford..........................       18.55       18.03       18.14
    232002Unsubsidized Stafford.............        1.66        0.01       -0.01
    232003PLUS..............................        0.27       -0.28        0.00
    232004Consolidation.....................       15.46        5.22        0.65
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....       12.74        6.65        5.16
        Guaranteed loan subsidy budget authority:
    233001Stafford..........................       4,216       4,479       4,873
    233002Unsubsidized Stafford.............         393           2          -3
    233003PLUS..............................          20         -29
    233004Consolidation.....................      12,645       1,408         208
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....      17,274       5,860       5,078
        Guaranteed loan subsidy outlays:
    234001Stafford..........................       3,425       3,755       4,108
    234002Unsubsidized Stafford.............         410         116          -1
    234003PLUS..............................          41          -9         -10
    234004Consolidation.....................      12,461       1,444         210
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............      16,337       5,306       4,307
        Guaranteed loan upward reestimates:
    235001Stafford..........................       1,458         114
    235002Unsubsidized Stafford.............         945
    235003PLUS..............................         104
    235004Consolidation.....................       7,362       3,350
    235005SLS...............................          19          83
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................       9,888       3,547
        Guaranteed loan downward reestimates:
    237001Stafford..........................        -280      -3,669
    237002Unsubsidized Stafford.............         -94      -2,590
    237003PLUS..............................         -44        -252
    237004Consolidation.....................        -386        -192
    237005SLS...............................                      -4
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................        -804      -6,707
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........                              -1,217
    00.04 Modification, upward..............                                   9
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                              -1,208
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                              -1,208
    23.95 Total new obligations.............                               1,208
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                              -1,208
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                              -1,208
    73.20 Total outlays (gross).............                               1,025
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                -183
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                              -1,025
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                              -1,208
    90.00 Outlays...........................                              -1,025
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 91-0231-4-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Stafford..........................                                 702
    215002Unsubsidized Stafford.............                                 294
    215004Consolidation.....................                                  17
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......                               1,013
        Guaranteed loan subsidy (in percent):
    232001Stafford..........................                               -0.81
    232002Unsubsidized Stafford.............                               -0.94
    232003PLUS..............................                               -0.55
    232004Consolidation.....................                               -2.47
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....                               -1.28
        Guaranteed loan subsidy budget authority:
    233001Stafford..........................                                 -96
    233002Unsubsidized Stafford.............                                -266
    233003PLUS..............................                                 -64
    233004Consolidation.....................                                -791
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....                              -1,217
        Guaranteed loan subsidy outlays:
    234001Stafford..........................                                 -68
    234002Unsubsidized Stafford.............                                -146
    234003PLUS..............................                                 -34
    234004Consolidation.....................                                -786
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............                              -1,034
    ---------------------------------------------------------------------------

             Federal Family Education Loan Program Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-0-3-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Default claims....................       1,600       1,741       1,805
    01.02 Special allowance.................       1,094         315         267
    01.03 Interest benefits.................       2,014       2,908       3,455
    01.04 Death, disability, and bankruptcy
            claims..........................         177         183         197
    01.05 Teacher loan forgiveness, other
            write-offs......................          21          13          78
    01.07 Contract collection costs.........          36          12          15
    01.08 Guaranty Agency Administrative
            Fees............................          76         146         173
    01.09 Voluntary flexible agreement
            performance fee.................         105         128
                                               ---------   ---------  ----------
    01.91   Subtotal, Stafford loans........       5,123       5,446       5,990
    02.02 Default claims....................       1,142       1,368       1,462
    02.03 Special allowance.................         890         281         246
    02.04 Death, disability, and bankruptcy
            claims..........................         151         194         220
    02.05 Teacher loan forgiveness, other
            write-offs......................          10          10          61
    02.07 Contract collection costs.........          18           3           4
    02.08 Guaranty Agency Administrative
            Fees............................          76         137         165
    02.09 Voluntary flexible agreement
            performance fee.................          69          40
                                               ---------   ---------  ----------
    02.91   Subtotal, Unsubsidized Stafford
              loans.........................       2,356       2,033       2,158
    03.01 Default claims....................         144         157         200
    03.03 Special allowance.................          53           2         -35
    03.04 Death, disability, and bankruptcy
            claims..........................          63         149         173
    03.07 Contract Collection Costs.........           3           1           1
    03.08 Guaranty Agency Administrative Fee          23          54          66
    03.09 Voluntary flexible agreement
            performance fee.................          11           6
                                               ---------   ---------  ----------
    03.91   Subtotal, PLUS loans............         297         369         405
    04.03 Default claims....................          27          18          12
    04.04 Death, disability and bankruptcy
            claims..........................           6           1
    04.07 Contract collection costs.........           9           3           3
    04.08 Voluntary flexible agreement
            performance fee.................           3           3
                                               ---------   ---------  ----------
    04.91   Subtotal, SLS loans.............          45          25          15
    05.01 Default claims....................       1,619       2,205       2,611
    05.02 Special allowance.................       5,297       6,671       6,206
    05.03 Interest benefits.................         633         468         523

    [[Page 343]]

    05.04 Death, disability, and bankruptcy
            claims..........................         575         906         989
    05.05 Teacher loan forgiveness, other
            write-offs......................           9
    05.07 Contract collection costs.........           9           4           4
    05.08 Voluntary flexible agreement
            performance fee.................         150          38
    05.10 Guaranty Agency Administrative Fee                     262         286
                                               ---------   ---------  ----------
    05.91   Subtotal, Consolidations loans..       8,292      10,554      10,619
    08.02 Payment of downward reestimate to
            Prog / receipt account..........         162       3,582
    08.04 Interest on downward reestimate...         127         133
    08.05 Downward Modification.............          14
                                               ---------   ---------  ----------
    08.91   Downward Reestimate- Subtotal (1
              level)........................         303       3,715
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      16,416      22,142      19,187
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      21,120      40,011      33,356
    22.00 New financing authority (gross)...      35,253      15,487      14,254
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          54
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      56,427      55,498      47,610
    23.95 Total new obligations.............     -16,416     -22,142     -19,187
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........      40,011      33,356      28,423
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         105
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).      35,159      15,487      14,254
    69.27     Capital transfer to general
                fund........................         -11
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      35,148      15,487      14,254
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      35,253      15,487      14,254
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,071       3,531       4,763
    73.10 Total new obligations.............      16,416      22,142      19,187
    73.20 Total financing disbursements
            (gross).........................     -14,902     -20,910     -19,822
    73.45 Recoveries of prior year
            obligations.....................         -54
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       3,531       4,763       4,128
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................      14,902      20,910      19,822
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Stafford loans................      -3,425      -3,755      -4,108
    88.00     Unsubsidized Stafford.........        -410        -116           1
    88.00     PLUS loans....................         -41           9          10
    88.00     Consolidated loans............     -12,461      -1,444        -210
    88.00     Upward reestimate.............      -9,374        -555
    88.00     Modification..................      -1,724
    88.25     Interest on uninvested funds..      -1,110      -2,143      -1,873
    88.40     Stafford recoveries on
                defaults....................      -1,146      -1,575      -1,725
    88.40     Stafford origination fees.....        -661        -554        -445
    88.40     Stafford other fees...........         -38
    88.40     Unsubsidized Stafford
                recoveries on default.......        -647        -962      -1,125
    88.40     Unsubsidized Stafford
                origination fees............        -659        -562        -472
    88.40     Unsubsidized Stafford other
                fees........................         -19
    88.40     PLUS recoveries on defaults...         -93        -115        -132
    88.40     PLUS origination fees.........        -206        -231        -203
    88.40     PLUS other fees...............          -5
    88.40     SLS recoveries on defaults....         -64         -77         -70
    88.40     SLS other fees................          -2
    88.40     Consolidation recoveries on
                defaults....................        -866      -1,022      -1,328
    88.40     Consolidation origination fees        -337        -135        -159
    88.40     Consolidation loan holders fee      -1,849      -2,250      -2,415
    88.40     Consolidation other fees......         -22
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................     -35,159     -15,487     -14,254
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          94
    90.00 Financing disbursements...........     -20,257       5,423       5,568
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-4251-0-3-502      2006 actual   2007 est.   2008 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.................      22,728      24,840      26,863
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      22,728      24,840      26,863
    2199  Guaranteed amount of guaranteed
            loan commitments................      22,728      24,591      26,594
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      74,601      59,099      69,611
    2231  Disbursements of new guaranteed
            loans...........................      19,505      20,729      22,695
    2251  Repayments and prepayments........     -33,209      -8,272     -10,528
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....      -1,600      -1,749      -1,826
    2263    Terminations for default that
              result in claim payments......        -177        -183        -197
    2264    Other adjustments, net..........         -21         -13         -78
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      59,099      69,611      79,677
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      59,099      68,915      78,880
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       2,454       3,046       3,034
    2331    Disbursements for guaranteed
              loan claims...................       1,600       1,749       1,826
    2351    Repayments of loans receivable..      -1,004      -1,574      -1,725
    2361    Write-offs of loans receivable..        -177        -187        -182
    2364    Other adjustments, net..........         173
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       3,046       3,034       2,953
    ----------------------------------------------------------------------------

        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.................      23,702      25,819      28,031
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      23,702      25,819      28,031
    2199  Guaranteed amount of guaranteed
            loan commitments................      23,702      25,561      27,751
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      59,179      49,928      61,187
    2231  Disbursements of new guaranteed
            loans...........................      19,563      21,099      23,065
    2251  Repayments and prepayments........     -27,511      -8,278     -11,368
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....      -1,142      -1,357      -1,473
    2263    Terminations for default that
              result in claim payments......        -151        -194        -220
    2264    Other adjustments, net..........         -10         -11         -61
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      49,928      61,187      71,130
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      49,928      60,575      70,419
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,740       2,293       2,513
    2331    Disbursements for guaranteed
              loan claims...................       1,142       1,357       1,473
    2351    Repayments of loans receivable..        -569        -962      -1,125
    2361    Write-offs of loans receivable..        -151        -175        -187
    2364    Other adjustments, net..........         131
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       2,293       2,513       2,674
    ----------------------------------------------------------------------------

        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.................       7,358      10,425      11,560
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       7,358      10,425      11,560
    2199  Guaranteed amount of guaranteed
            loan commitments................       7,358      10,321      11,444
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      14,611      10,469      14,958

    [[Page 344]]

    2231  Disbursements of new guaranteed
            loans...........................       6,753       8,608       9,823
    2251  Repayments and prepayments........     -10,687      -3,812      -4,929
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -145        -158        -196
    2263    Terminations for default that
              result in claim payments......         -63        -149        -173
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      10,469      14,958      19,483
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      10,469      14,809      19,288
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         291         312         292
    2331    Disbursements for guaranteed
              loan claims...................         145         158         196
    2351    Repayments of loans receivable..         -79        -115        -132
    2361    Write-offs of loans receivable..         -63         -63         -63
    2364    Other adjustments, net..........          18
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         312         292         293
    ----------------------------------------------------------------------------

        SLS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         276         201         143
    2251  Repayments and prepayments........         -42         -37         -22
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -27         -20         -14
    2263    Terminations for default that
              result in claim payments......          -6          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         201         143         107
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         201         141         106
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         385         375         314
    2331    Disbursements for guaranteed
              loan claims...................          27          20          14
    2351    Repayments of loans receivable..         -53         -76         -70
    2361    Write-offs of loans receivable..          -6          -5          -5
    2364    Other adjustments, net..........          22
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         375         314         253
    ----------------------------------------------------------------------------

        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.................      81,788      26,978      32,014
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      81,788      26,978      32,014
    2199  Guaranteed amount of guaranteed
            loan commitments................      81,788      26,708      31,693
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     138,457     203,604     213,935
    2231  Disbursements of new guaranteed
            loans...........................      72,036      27,021      31,845
    2251  Repayments and prepayments........      -4,686     -13,630     -15,189
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....      -1,619      -2,154      -2,594
    2263    Terminations for default that
              result in claim payments......        -575        -906        -989
    2264    Other adjustments, net..........          -9
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     203,604     213,935     227,008
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     203,604     211,796     224,738
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       3,696       4,237       4,694
    2331    Disbursements for guaranteed
              loan claims...................       1,619       2,154       2,594
    2351    Repayments of loans receivable..        -746      -1,022      -1,329
    2361    Write-offs of loans receivable..        -575        -675        -750
    2364    Other adjustments, net..........         243
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       4,237       4,694       5,209
    ---------------------------------------------------------------------------

        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.

                                 Balance Sheet (in millions of dollars)

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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    23,191

    43,542

            Investments in US securities:
    1106

    Receivables, net

    524

    551

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

    1501

    Defaulted guaranteed loans receivable, gross

    8,566

    10,263

    1502

    Interest receivable

    1,691

    1,823

    1505

    Allowance for subsidy cost (-)

    -1,711

    -2,847

    1599

    Net present value of assets related to defaulted guaranteed loans

    8,546

    9,239

    1999

    Total assets

    32,261

    53,332

        LIABILITIES:
    2101

    Federal liabilities: Accounts payable

    1,761

    951

          Non-Federal liabilities:

    2201

    Accounts payable

    31

    2204

    Liabilities for loan guarantees

    30,500

    52,350

    2999

    Total liabilities

    32,261

    53,332

    4999

    Total liabilities and net position

    32,261

    53,332

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

             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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          Stafford loans:

    01.01   Default claims, Stafford........                                 -28
    01.02   Special allowance...............                                  -7
    01.03   Interest benefits...............                                   5
    01.08   Guaranty Agency Administrative
              Fees..........................                                 109
                                               ---------   ---------  ----------
    01.91     Subtotal, Stafford loans......                                  79
          Unsubsidized Stafford loans:

    02.02   Default claims, Unsubsidized
              Stafford......................                                 -23
    02.03   Special allowance...............                                  -7
    02.08   Guaranty Agency Administrative
              Fees..........................                                  62
                                               ---------   ---------  ----------
    02.91     Subtotal, Unsubsidized
                Stafford loans..............                                  32
    03.01 Default claims, PLUS..............                                  -3
          PLUS loans:

    03.09   Guaranty Agency Administrative
              Fees, PLUS....................                                  -7
                                               ---------   ---------  ----------
    03.91     Direct Program by Activities--
                Subtotal (1 level)..........                                 -10
          Consolidation loans:

    05.01   Default claims, Consolidation...                                 -41
    05.02   Special allowance...............                                 -19
    05.09   Guaranty Agency Administrative
              Fees..........................                                -203
                                               ---------   ---------  ----------
    05.91     Subtotal, Consolidations loans                                -263
    08.05 Downward Modification.............                               2,813
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                               2,651
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                -947

    [[Page 345]]

    23.95 Total new obligations.............                              -2,651
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                              -3,598
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                  12
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).                                -823
    69.27     Capital transfer to general
                fund........................                                -136
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                                -959
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                                -947
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                               2,651
    73.20 Total financing disbursements
            (gross).........................                              -2,081
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                 570
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................                               2,081
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Payments from program account:
    88.00     Stafford loans................                                  68
    88.00     Unsubsidized Stafford.........                                 146
    88.00     PLUS loans....................                                  34
    88.00     Consolidated loans............                                 786
    88.00     Upward reestimate.............
    88.00     Modification, Upward..........                                  -9
    88.25     Interest on uninvested funds..                                  72
              Student Loans: Stafford,
                  Unsubsidized Stafford,
                  PLUS, SLS & Consolidation:
    88.40     Stafford recoveries on
                defaults....................                                 -40
    88.40     Stafford origination fees.....                                  -6
    88.40     Unsubsidized Stafford
                recoveries on default.......                                 -27
    88.40     Unsubsidized Stafford
                origination fees............                                  -3
    88.40     PLUS recoveries on defaults...                                  -3
    88.40     SLS recoveries on defaults....                                  -1
    88.40     Consolidation recoveries on
                defaults....................                                 -35
    88.40     Consolidation origination fees                                -159
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................                                 823
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                -124
    90.00 Financing disbursements...........                               2,904
    ---------------------------------------------------------------------------

                Federal Family Education Loan Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Interest benefits, net of
            origination fees................           8           7           4
    01.02 Special allowance net of
            origination fees................           4           2           2
    01.03 Default claims....................          82          59          46
    01.04 Death, disability, and bankruptcy
            claims..........................          13          13          10
    01.05 Contract collection costs.........          53          47          43
    01.06 Voluntary flexible agreements.....           5           4
                                               ---------   ---------  ----------
    01.91   Subtotal, Stafford loans........         165         132         105
    02.01 Default claims....................           9           8           6
    02.02 Death, disability, and bankruptcy
            claims..........................           5           5           4
    02.05 Contract collection costs.........           9           9           8
    02.06 Special allowance net of
            origination fees................           5
    02.07 Voluntary flexible agreements.....           7           1
                                               ---------   ---------  ----------
    02.91   Subtotal, PLUS/SLS loans........          35          23          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         200         155         123
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         339         243
    22.00 New budget authority (gross)......         441         155         123
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.40 Capital transfer to general fund..        -339        -243
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         443         155         123
    23.95 Total new obligations.............        -200        -155        -123
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         243
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         995         902         814
    69.27     Capital transfer to general
                fund........................        -554        -747        -691
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         441         155         123
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          23          51          51
    73.10 Total new obligations.............         200         155         123
    73.20 Total outlays (gross).............        -170        -155        -123
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          51          51          51
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         170         155         123
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Fed collections on defaulted
                loans, Stafford.............        -255        -285        -257
    88.40     Federal collections on
                bankruptcies, Stafford......          -3          -3          -3
    88.40     Offsets against Federal tax
                refunds,Stafford............        -245        -215        -194
    88.40     Reimbursements from guaranty
                agencies, Stafford..........        -316        -231        -208
    88.40     Other collections/ fees,
                Stafford....................         -53         -27         -25
    88.40     Federal collections on
                defaulted loans, PLUS/SLS...         -55         -66         -60
    88.40     Federal collections on
                bankruptcies, PLUS/SLS......          -1          -1          -1
    88.40     Offsets against Federal tax
                refunds, PLUS/SLS...........         -19         -16         -14
    88.40     Reimbursements from guaranty
                agencies, PLUS/SLS..........         -48         -58         -52
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -995        -902        -814
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -554        -747        -691
    90.00 Outlays...........................        -825        -747        -691
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        STAFFORD LOANS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       1,276         978         800
    2251  Repayments and prepayments........        -203        -100         -41
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -82         -65         -50
    2263    Terminations for default that
              result in claim payments......         -13         -13         -10
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         978         800         699
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         978         800         699
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       8,005       7,511       7,113
    2331    Disbursements for guaranteed
              loan claims...................          82          65          50
    2351    Repayments of loans receivable..        -415        -404        -365
    2361    Write-offs of loans receivable..         -13         -12         -11
    2364    Other adjustments, net..........        -148         -47         -43
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       7,511       7,113       6,744
    ----------------------------------------------------------------------------

        PLUS/SLS LOANS
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         793         648         569
    2251  Repayments and prepayments........        -131         -66         -26
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -9          -8          -7

    [[Page 346]]

    2263    Terminations for default that
              result in claim payments......          -5          -5          -4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         648         569         532
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         648         569         532
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,301       1,220       1,137
    2331    Disbursements for guaranteed
              loan claims...................           9           8           7
    2351    Repayments of loans receivable..         -61         -76         -69
    2361    Write-offs of loans receivable..          -5          -4          -4
    2364    Other adjustments, net..........         -24         -11         -10
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,220       1,137       1,061
    ---------------------------------------------------------------------------

        \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.

                                 Balance Sheet (in millions of dollars)

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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    362

    295

    1701

    Defaulted guaranteed loans, gross

    9,306

    8,730

    1702

    Interest receivable

    595

    336

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -6,736

    -4,718

    1704

    Defaulted guaranteed loans and interest receivable, net

    3,165

    4,348

    1799

    Value of assets related to loan guarantees

    3,165

    4,348

    1999

    Total assets

    3,527

    4,643

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    3,412

    4,555

          Non-Federal liabilities:

    2201

    Accounts payable

    4

    -15

    2204

    Liabilities for loan guarantees

    111

    103

    2999

    Total liabilities

    3,527

    4,643

    4999

    Total liabilities and net position

    3,527

    4,643

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0230-0-1-502      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................          62          57          51
    33.0  Investments and loans.............          91          67          52
    41.0  Grants, subsidies, and
            contributions...................          29          14           6
    42.0  Insurance claims and indemnities..          18          17          14
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         200         155         123
    ---------------------------------------------------------------------------

                         INSTITUTE OF EDUCATION SCIENCES

                                  Federal Funds

                         Institute of Education Sciences

         For carrying out activities authorized by the Education Sciences
    Reform Act of 2002, as amended, the National Assessment of Educational
    Progress Authorization Act, section 208 of the Educational Technical
    Assistance Act of 2002, and section 664 of the Individuals with
    Disabilities Education Act, $594,262,000, of which $293,144,000 shall be
    available until September 30, 2009.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Research, development, and
            dissemination...................         162         163         163
    00.02 Statistics........................          90          90         119
    00.03 Regional educational laboratories.          65          65          65
    00.04 Assessment........................          93          93         116
    00.05 Research in special education.....          72          72          72
    00.06 Statewide data systems............          49          49          49
    00.07 Special education studies and
            evaluations.....................          10          10          10
                                               ---------   ---------  ----------
    01.00   Total direct program............         541         542         594
    09.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         543         544         596
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          25           2           2
    22.00 New budget authority (gross)......         520         544         596
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         545         546         598
    23.95 Total new obligations.............        -543        -544        -596
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         523         542         594
    40.35   Appropriation permanently
              reduced.......................          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         518         542         594
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         520         544         596
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         621         758         520
    73.10 Total new obligations.............         543         544         596
    73.20 Total outlays (gross).............        -393        -782        -564
    73.40 Adjustments in expired accounts
            (net)...........................         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         758         520         552
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          90         139         152
    86.93 Outlays from discretionary
            balances........................         303         643         412
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         393         782         564
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         518         542         594
    90.00 Outlays...........................         391         780         562
    ---------------------------------------------------------------------------

        Research and Statistics:

        Research, development, and dissemination.--Funds support the
    National Center for Education Research, which oversees a diverse
    portfolio of directed research, evaluation studies, research and
    development centers, and 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. In 2008, funds will also support a higher
    education unit record pilot. The pilot will modify several components of
    the Integrated

    [[Page 347]]

    Postsecondary Education Data System (IPEDS) to implement a privacy-
    protected system that would allow interested parties to follow students
    as they move from one institution to another, thus allowing better
    understanding of student attendance, graduation and transfer rates,
    academic outcomes, and the costs of higher education.

        Regional educational laboratories.--Funds support a network of 10
    regional laboratories that provide expert advice, including training and
    technical assistance, to help States and school districts apply proven
    research findings in their school improvement efforts. Funds would be
    used for the third year of 5-year contracts for the laboratories.

        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
    2008, funds will also support costs of expanding State NAEP to grade 12
    in 2009.

        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      2006 actual   2007 est.   2008 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           1           1
    25.1    Advisory and assistance services           4           3           4
    25.2    Other services..................         167         167         194
    25.3    Other purchases of goods and
              services from Government
              accounts......................          15          15          15
    25.5    Research and development
              contracts.....................          99          99          99
    41.0    Grants, subsidies, and
              contributions.................         253         253         277
                                               ---------   ---------  ----------
    99.0      Direct obligations............         541         540         592
    99.0  Reimbursable obligations..........           2           2           2
    99.5  Below reporting threshold.........                       2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         543         544         596
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-1100-0-1-503      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          13          14          14
    ---------------------------------------------------------------------------

                             DEPARTMENTAL MANAGEMENT

                                  Federal 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, $446,934,000, of which $17,303,000, to remain available until
    expended, shall be for building alterations and related expenses for the
    move of Department staff to the Mary E. Switzer building in Washington,
    D.C.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Program administration............         410         411         447
    00.02 Trust Fund........................          36          24
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         447         436         448
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      24
    22.00 New budget authority (gross)......         472         412         448
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         472         436         448
    23.95 Total new obligations.............        -447        -436        -448
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         415         411         447
    40.35   Appropriation permanently
              reduced.......................          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         411         411         447
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                       1           1
          Mandatory:

    60.00   Appropriation...................          61
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         472         412         448
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         125         144         127
    73.10 Total new obligations.............         447         436         448
    73.20 Total outlays (gross).............        -422        -453        -429
    73.40 Adjustments in expired accounts
            (net)...........................          -4
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         144         127         146
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         337         322         338
    86.93 Outlays from discretionary
            balances........................          85          71          91
    86.98 Outlays from mandatory balances...                      60
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         422         453         429
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -1          -1
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         472         411         447
    90.00 Outlays...........................         420         452         428
    ---------------------------------------------------------------------------

        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

    [[Page 348]]

    of auditable financial statements; information technology services;
    personnel management; personnel security; budget formulation and
    execution; program evaluation; legal services; congressional and public
    relations; and intergovernmental affairs.

        Included in this account is the Department of Education's cost to
    renovate and upgrade the Mary E. Switzer building in order to
    consolidate staff located in various buildings in Washington, D.C.

        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. In
    2006, this account received a transfer from the Department of State of
    $61 million. These funds came from foreign countries in support of the
    Department of Education's efforts to assist educational programs and
    entities affected by Hurricane Katrina. 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         167         193         201
    11.3      Other than full-time permanent          30           9          10
    11.5      Other personnel compensation..           4           3           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         201         205         215
    12.1    Civilian personnel benefits.....          49          51          54
    13.0    Benefits for former personnel...           1
    21.0    Travel and transportation of
              persons.......................           5           5           5
    23.1    Rental payments to GSA..........          36          36          38
    23.3    Communications, utilities, and
              miscellaneous charges.........          11           9          11
    24.0    Printing and reproduction.......           3           4           4
    25.1    Advisory and assistance services           5           3           2
    25.2    Other services..................          24          19          20
    25.3    Other purchases of goods and
              services from Government
              accounts......................          20          17          16
    25.7    Operation and maintenance of
              equipment.....................          44          48          51
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................           9          12          24
    32.0    Land and structures.............           1                       5
    41.0    Grants, subsidies, and
              contributions.................          35          24
                                               ---------   ---------  ----------
    99.0      Direct obligations............         446         435         447
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         447         436         448
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-0800-0-1-503      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       2,121       2,103       2,113
    ---------------------------------------------------------------------------

                             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, $93,771,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Civil rights......................          90          90          94
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          90          90          94
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          91          90          94
    23.95 Total new obligations.............         -90         -90         -94
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          92          90          94
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          91          90          94
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          22          20          16
    73.10 Total new obligations.............          90          90          94
    73.20 Total outlays (gross).............         -91         -94         -93
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          20          16          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          75          77          80
    86.93 Outlays from discretionary
            balances........................          16          17          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          91          94          93
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          91          90          94
    90.00 Outlays...........................          91          94          93
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          51          53          55
    11.3    Other than full-time permanent..           2           2           3
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          54          56          59
    12.1  Civilian personnel benefits.......          13          14          14
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           7           7           7
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           1           1
    25.2  Other services....................           4           2           2
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           3           3
    25.7  Operation and maintenance of
            equipment.......................           5           4           5
    31.0  Equipment.........................                       1           1
                                               ---------   ---------  ----------
    99.0    Direct obligations..............          88          89          93
    99.5  Below reporting threshold.........           2           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          90          90          94
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-0700-0-1-751      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         630         629         629
    ---------------------------------------------------------------------------

    [[Page 349]]

                         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, $53,239,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Inspector General.................          49          48          53
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          49          48          53
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          49          48          53
    23.95 Total new obligations.............         -49         -48         -53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          49          48          53
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          11          13          13
    73.10 Total new obligations.............          49          48          53
    73.20 Total outlays (gross).............         -47         -48         -52
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          13          13          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          41          40          44
    86.93 Outlays from discretionary
            balances........................           6           8           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          47          48          52
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          49          48          53
    90.00 Outlays...........................          47          48          52
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          23          25          27
    11.3    Other than full-time permanent..           1           1
    11.5    Other personnel compensation....           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          26          26          27
    12.1  Civilian personnel benefits.......           8           8           9
    21.0  Travel and transportation of
            persons.........................           2           2           2
    23.1  Rental payments to GSA............           4           4           5
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.1  Advisory and assistance services..           2           2           3
    25.2  Other services....................           1           1           1
    25.3  Other purchases of goods and
            services from Government
            accounts........................           1           1           1
    25.7  Operation and maintenance of
            equipment.......................           2           2           3
    31.0  Equipment.........................           1                       1
    32.0  Land and structures...............                       1
                                               ---------   ---------  ----------
    99.0    Direct obligations..............          48          48          53
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          49          48          53
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 91-1400-0-1-751      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         288         279         293
    ---------------------------------------------------------------------------

                          HURRICANE EDUCATION RECOVERY

                                  Federal Funds

                           Hurricane Education Recovery

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 91-0013-0-1-500      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Programs to restart school
            operations......................         750
    00.02 Assistance for homeless children
            and youth.......................           5
    00.03 Temporary emergency impact aid for
            displaced students..............         878
                                               ---------   ---------  ----------
    00.91   Subtotal, Aid for elementary and
              secondary education...........       1,633
    01.01 Aid for institutions of higher
            education.......................         200
    01.02 Aid for recovering institutions...          50
                                               ---------   ---------  ----------
    01.91   Subtotal, Postsecondary
              institutional assistance......         250
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,883
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,885
    23.95 Total new obligations.............      -1,883
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,885
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                     743
    73.10 Total new obligations.............       1,883
    73.20 Total outlays (gross).............      -1,140        -743
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         743
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,140
    86.93 Outlays from discretionary
            balances........................                     743
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,140         743
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,885
    90.00 Outlays...........................       1,140         743
    ---------------------------------------------------------------------------

        Amounts in this schedule reflect balances that are spending out from
    prior-year appropriations.

                         GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      91-143500  General fund proprietary
        interest receipts, not otherwise
        classified..........................          18          20          20
      91-271810  Federal family education
        loan program, negative subsidies....                               2,813
      91-271830  Federal family education
        loan program, Downward reestimates
        of subsidies........................                   3,715
      91-278130  Federal direct student loan
        program, downward reestimates of
        subsidies...........................                     985
      91-291500  Repayment of loans, capital
        contributions, higher education
        activities..........................          51          42          42
      91-322000  All other general fund
        proprietary receipts including
        budget clearing accounts............          68          47          47
    General Fund Offsetting receipts from
     the public.............................         137       4,809       2,922
    ----------------------------------------------------------------------------

    [[Page 350]]

    Intragovernmental payments:.............
      91-388500  Undistributed
        intragovernmental payments and
        receivables from cancelled accounts.           7           4           4
                                               ---------   ---------  ----------
    General Fund Intragovernmental payments.           7           4           4
    ---------------------------------------------------------------------------

                               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 in 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
    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.