Education in the United States is primarily the responsibility of states and localities. However, the federal government annually provides about 10 percent of the funding for K–12 schooling and helps students finance higher education through two major programs—one that makes loans to borrowers and one that provides grants to low-income students. Between 2000 and 2009, the volume of outstanding federal student loans more than quadrupled to reach $630 billion and annual spending for grants more than tripled to stand at $27 billion. The federal tax code also offers favorable taxation treatment to educational institutions. CBO has analyzed the costs and economic impact of these and other policies that affect education.
Education
featured work
The Pell Grant Program: Recent Growth and Policy OptionsSep 2013 - In the 2011–2012 academic year, 9.4 million students received $34 billion in Pell grants. How would tightening eligibility or changing grant amounts affect the program’s costs or the number of recipients?
Options to Change Interest Rates and Other Terms on Student LoansJun 2013 - The interest rate for subsidized student loans is currently scheduled to double from 3.4 percent to 6.8 percent on July 1, 2013. What would be the budgetary impact of changing interest rates for student loans?
Federal Grants to State and Local GovernmentsMar 2013 - In 2011, the federal government provided $607 billion in grants to state and local governments, accounting for 17 percent of federal outlays and a quarter of spending by states and localities. Nearly half of that amount was for Medicaid.
Growth in Means-Tested Programs and Tax Credits for Low-Income HouseholdsFeb 2013 - During the past 40 years, federal spending for major means-tested programs and tax credits for low-income households more than tripled as a share of gross domestic product. In 2012, such spending totaled $588 billion.
latest work
S. 1094, Strengthening America’s Schools Act of 2013
cost estimateSeptember 13, 2013The Pell Grant Program: Recent Growth and Policy Options
reportSeptember 5, 2013Subsidy Rates for Student Loans Under the May 2013 Baseline and as Adjusted for Enactment of Public Law 113-28, the Bipartisan Student Loan Certainty Act of 2013
data or technical informationAugust 12, 2013H.R. 1911, Bipartisan Student Loan Certainty Act of 2013
cost estimateJuly 22, 2013H.R. 2637, Supporting Academic Freedom through Regulatory Relief Act
cost estimateJuly 30, 2013H.R. 2094, School Access to Emergency Epinephrine Act
cost estimateJuly 22, 2013H.R. 5, Student Success Act
cost estimateJuly 10, 2013Testimony on Means-Tested Programs and Tax Credits for Low-Income Households
reportJune 18, 2013
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