text:
Page:United States Statutes at Large Volume 86.djvu/282

 240

PUBLIC LAW 92-318-JUNE 23, 1972

79 Stat. 1228. 20 USC 591 note. Ante, p. 239. 20 USC 1034. Effective date.

[86

STAT.

(D) Such part B is further amended by striking out section 225; and sections 223 and 224 of such part, and all references thereto (except those references thereto in section 221 of such part, as amended by subparagraph (A)), are redesignated as sections 222 and 223, respectively. (b) The amendments made by subsection (a) shall be effective after June 30, 1972, and only with respect to appropriations for the fiscal year ending June 30, 1973, and succeeding fiscal years. WAIVER OF M A I N T E N A N C E OF EFFORT REQUIREMENT

79 Stat. 1224. 20 USC 1022.

Ante,p.

239.

Effective date.

SEC. 112. (a) Section 202 of title II of the Higher Education Act of 1965 is amended by redesignating clauses (c) and (d), and all references thereto, as clauses (2) and (3), respectively, and by striking out clauses (a) and (b) and inserting in lieu thereof the following: "(1) provides satisfactory assurance that the applicant will expend during the fiscal year for which the basic grant is sought, from funds other than funds received under this part— " (A) for all library purposes (exclusive of construction), an amount not less than the average annual amount it expended for such purposes during the two fiscal years preceding the fiscal year for which assistance is sought under this part, and " (B) for library resources, an amount not less than the average amount it expended for such resources during the two fiscal years preceding the fiscal year for which assistance is sought under this part, except that, if the Commissioner determines, in accordance with regulations, that there are special and unusual circumstances which prevent the applicant from making the assurances required by this clause (1), he may waive that requirement for one or botli of such assurances;". (b)(1) The second sentence of such section 202 is amended by striking out "not exceed" and inserting in lieu thereof the following: ", for any fiscal year, be equal to the amount expended by the applicant for library resources during that year from funds other than funds received under this part, except that no basic grant shall exceed". (2) Clause (1) of section 203(a) of such title II is amended by striking out that part thereof which follows "section 202" and inserting in lieu thereof a semicolon. (c) The amendments made by this section shall be effective after, and only with respect to appropriations for fiscal years beginning after, June 30, 1971. INCREASE I N MAXIMUM A M O U N T OF SUPPLEMENTAL GRANTS

20 USC 1023. Effective date.

SEC. 113. (a) Section 203(a) of the Higher Education Act of 1965 is amended by striking out "$10" and inserting in lieu thereof "$20". (b) The amendment made by subsection (a) shall be effective after, and only with respect to appropriations for fiscal years beginning after, June 30, 1972. AUTHORIZATION OF APPROPRIATIONS FOR COLLEGE A N D RESEARCH LIBRARY RESOURCES

79 Stat. 1228; 82 Stat. 103 7. 20 USC 1041.

Effective date.

S E C 114. (a) Section 231 of the Higher Education Act of 1965 is amended by striking out "and the succeeding fiscal year" and inserting in lieu thereof "and $9,000,000 for the fiscal year ending June 30, 1972, $12,000,000 for the fiscal year ending June 30, 1973, $15,000,000 for the fiscal year ending June 30, 1974, and $9,000,000 for the fiscal year ending June 30, 1975". (b) The amendments made by subsection (a) shall be effective after June 30, 1971.

�


text:
Page:United States Statutes at Large Volume 86.djvu/283

 86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

241

EVALUATION A N D REPORT

SEC. 115. (a) Part C of title II of the Higher Education Act of 1965 is amended by adding a t the end thereof the following new section:

79 Stat. 1228. 20 USC 1041.

"EVALUATION AND REPORT

"SEC. 232. No later than March 31 of each calendar year the Librarian of the Congress shall transmit to the respective committees of the Congress having legislative jurisdiction over this part and to the respective Committees on Appropriations of the Congress a report evaluating the results and effectiveness of acquisition and cataloging work done under this part, based to the maximum extent practicable on objective measurements, including costs, together with recommendations as to proposed legislative action.". (b) The amendment made by subsection (a) shall be effective after June 30, 1972. PART C—DEVELOPING INSTITUTIONS; EMERGENCY ASSISTANCE TO INSTITUTIONS OF H I G H E R EDUCATION R E VI S I O N O F TITLE III (STRENGTHENING DEVELOPING

Report to congressional committees.

Effective date.

>

INSTITUTIONS)

SEC. 121. (a) Title III of the Higher Education Act of 1965 is amended to read as follows:

20 USC losi.

^TITLE III — S T K E N G THE N I N G D E V E L O P I N G INSTITUTIONS "AUTHORIZATION

"SEC. 301. (a) The Commissioner shall c any out a program of special assistance to strengthen the academic quality of developing institutions which have the desire and potential to make a substantial contribution to the higher education resources of the Nation but which are struggling for survival and are isolated from the main currents of academic life. " (b)(1) For the purpose of carrying out this title, there are authorized to be appropriated $120,000,000 for the fiscal year ending June 30, 1973, and for each of the succeeding fiscal years ending prior to July 1, 1975. "(2) Of the sums appropriated pursuant to this subsection for any fiscal year, 76 per centum shall be available only for carrying out the provisions of this title with respect to developing institutions which plan to award one or more bachelor's degrees during such year. "(3) The remainder of the sums so appropriated shall be available only for carrying out the provisions of this title with respect to developing institutions which do not plan to award such a degree during such year. "ELIGIBILITY

FOR

SPECIAL

Special a s s i s t -

Appropriation.

ASSISTANCE

"SEC. 302. (a)(1) For the purposes of this title, the term 'developing institution' means an institution of higher education in any State which— " (A) is legally authorized to provide, and provides within the State, an educational program for which it awards a bachelor's degree, or is a junior or community college; " (B) is accredited by a nationally recognized accrediting agency or association determined by the Commissioner to be

'•Developing institution."

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 86.djvu/284

 242

Waiver.

Application.

"Junior or community c o l l e g e. "

PUBLIC LAW 92-318-JUNE 23, 1972

STAT.

reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation; " (C) except as is proAdded in paragraph (2), has met the requirement of clauses (A) and (B) during the five academic years preceding the academic year for which it seeks assistance under this title; and " (D) meets such other requirements as the Commissioner shall prescribe by regulation, which requirements shall include at least a determination that the institution— "(i) is making a reasonable effort to improve the quality of its teaching and administrative staffs and of its student services; and "(ii) is, for financial or other reasons, struggling for survival and isolated from the main currents of academic life. "(2) The Commissioner is authorized to waive the requirements set forth in clause (C) of paragraph (1) in the case of applications for grants under this title by institutions located on or near an Indian reservation or a substantial population of Indians if the Commissioner determines such action will increase higher education for Indians, except that such grants may not involve an expenditure of funds in excess of 1.4 per centum of the sums appropriated pursuant to this title for any fiscal year. "(b) Any institution desiring special assistance under the provisions of this title shall submit an application for eligibility to the Commissioner at such time, in such form, and containing such information, as may be necessary to enable the Commissioner to evaluate the need of the applicant for such assistance and to determine its eligibility to be a developing institution for the purposes of this title. The Commissioner shall approve any application for eligibility under this subsection which indicates that the applicant is a developing institution meeting the requirements set forth in subsection (a). "(c) For the purposes of clause (A) of paragraph (1) of subsection (a) of this section, the term 'junior or community college' means an institution of higher education— " (1) which does not provide an educational program for which it awards a bachelor's degree (or an equivalent degree); "(2) which admits as regular students only persons having a certificate of graduation from a school providing secondary education (or the recognized equivalent of such a certificate); and "(3) which does— " (A) provide an educational program of not less than two years which is acceptable for full credit toward such a degree, or " (B) offer a two-year program in engineering, mathematics, or the physical or biological sciences, which program is designed to prepare a student to work as a technician and at the semiprofessional level in engineering, scientific, or other technological fields, which fields require the understanding and application of basic engineering, scientific, or mathematical principles of knowledge. ((ADVISORY

Establishment.

[86

C O U N C I L ON DEVELOPING INSTITUTIONS

"SEC. 303. (a) There is hereby established an Advisory Council on Developing Institutions (in this title referred to as the 'Council') consisting of nine members appointed by the Commissioner with the approval of the Secretary.

�


text:
Page:United States Statutes at Large Volume 86.djvu/285

 86

STAT.]

243

PUBLIC LAW 92-318-JUNE 23, 1972

"(b) The Council shall, with respect to the program authorized by this title, carry out the duties and functions specified by part C of the General Education Provisions Act and, in particular, it shall assist the Commissioner—• "(1) in identifying developing institutions through which the purposes of this title may be achieved; and "(2) in establishing the priorities and criteria to be used in making grants under section 304(a).

Post. p. 326.

'"USES OF FUNDS: COOPERATIVE ARRANGEMENTS, NATIONAL TEACHING FELLOWSHIPS, AND PROFESSORS EMERIli: S

"SEC. 304. (a) The Commissioner is authorized to make grants and awards, in accordance with the provisions of this title, for the purpose of strengthening developing institutions. Such grants and awards shall be used solely for the purposes set forth in subsection (b). "(b) Funds appropriated pursuant to section 301(b) shall be available for— " (1) grants to institutions of higher education to pay part of the cost of planning, developing, and carrying out cooperative arrangements between developing institutions and other institutions of higher education, and between dcA^eloping institutions and other organizations, agencies, and business entities, which show promise as effective measures for strengthening the academic program and the administrative capacity of developing institutions, including such projects and activities as— " (A) exchange of faculty or students, including arrangements for bringing visiting scholars to developing institutions, " (B) faculty and administration improvement programs, utilizing training, education (including fellowships leading to advanced degrees), internships, research participation, and other means, " (C) introduction of new curricula and curricular materials. " (D) development and operation of cooperative education programs involving alternate periods of academic study and business or public employment, and " (E) joint use of facilities such as libraries or laboratories, including necessary books, materials, and equipment; " (2) National Teaching Fellowships to be awarded by the Commissioner to highly qualified graduate students and junior faculty members of institutions of higher education for teaching at developing institutions; and "(3) Professors Emeritus Grants to be awarded by the Commissioner to professors retired from active service at institutions of higher education to encourage them to teach or to conduct lesearch at developing institutions. "(c)(1) An application for assistance for the purposes described in subsection (b)(1) shall be approved only if it— " (A) sets forth a program for carrying out one or more of the activities described in subsection (b)(1), and sets forth such policies and procedures for the administration of the program as will insure the proper and efficient operation of the jirogram and the accomplishment of the purposes of this title; " (B) sets forth such policies and procedures as will insure that Federal funds made available under this section for any fiscal year will be so used as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds be made available for the purposes of the activities described in subsection (b)(1), and m no case supplant such funds;

Grants and awards.

Ante, p. 241.

National Teaching Fellowships.

Professors Emeritus Grants.

Application approval conditions.

�


text:
Page:United States Statutes at Large Volume 86.djvu/286

 244

Stipend and dependent allowance.

Limitation.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

" (C) sets forth policies and procedures for the evaluation of the effectiveness of the project or activity in accomplishing its purpose; " (D) provides for such fiscal control and fund accounting procedures as may be necessary to insure proper disbursement of and accounting for funds made available under this title to the applicant; and " (E) provides for making such reports, in such form and containing such information, as the Commissioner may require to carry out his functions under this title, and for keeping such records and affording such access thereto, as he may find necessary to assure the correctness and verification of such reports. rhe Commissioner shall, after consultation with the Council, establisli by regulation criteria as to eligible expenditures for which funds from grants for cooperative arrangements under clause (1) of subsection (b) may be used, which criteria shall be so designed as to prevent the use of such funds for purposes not necessary to the achievement of the purposes for which the grant is made. "(2)(A) Applications for awards described in clauses (2) and (3) of subsection (b) may be approved only upon a finding by the Commissioner that the program of teaching or research set forth therein is reasonable in the light of the qualifications of the applicant and of the educational needs of the institution at which the applicant intends to teach. " (B) No application for a National Teaching Fellowship or a Professors Emeritus Grant shall be approved for an award of such a fellowship or grant for a period exceeding two academic years, except that the award of a Professors Emeritus Grant may be for such period, in addition to such two-year period of award, as the Commissioner, upon the advice of the Council, may determine in accordance with policies of the Commissioner set forth in regulations. " (C) Each person awarded a National Teaching Fellowship or a Professors Emeritus Grant shall receive a stipend for each academic year of teaching (or, in the case of a recipient of a Professors Emeritus Grant, research) as determined by the Commissioner upon the advice of the Council, plus an additional allowance for ea,ch such year for each dependent of such person. I n the case of National Teaching Fellowships, such allowance may not exceed $7,500, plus $400 for each dependent. " A S S I S T A N C E TO DEVPXOPING I N S T r r U T I O N S UNDER OTHER PRtKJRAMS

Waivers, eligibility.

Ante, p. 238; Post, p p. 247, 288. Non-Federal share requirement.

"SEC. 305. (a) Each institution which the Commissioner determines meets the criteria set forth in section 302(a) shall be eligible for waivers in accordance with subsection (b). " (b)(1) Subject to, and in accordance with, regulations promulgated for the purpose of this section, in the case of any application by A developing institution for assistance under any program specified in paragraph (2), the Commissioner is authorized, if such application is otherwise approvable, to waive any requirement for a non-Federal share of the cost of the program or project, or, to the extent not inconsistent with other law, to give, or require to be given, priority consideration of the application in relation to applications from institutions which are not developing institutions. "(2) The provisions of this section shall apply to any program authorized by title II, IV, VI, or VII of this Act. "(c) The Commissioner shall not waive, under subsection (b), the non-Federal share requirement for any program for applications which, if approved, would require the expenditure of more than 1(> per centum of the appropriations for that program for any fiscal year.

�


text:
Page:United States Statutes at Large Volume 86.djvu/287

 86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

245

"LIMITATION

"SEC. 306. None of the funds appropriated pursuant to section 301 (b)(1) shall be used for a school or department of divinity or for any religious worship or sectarian activity.". (b) The amendment made by subsection (a) shall be effective after, and only with respect to appropriations made for fiscal years beginning after, June 30, 1972. E M E R G E N C Y ASSISTANCE FOR INSTITUTIONS

OF H I G H E R

Effective date.

EDUCATION

SEC. 122. (a)(1) The Congress hereby finds and declares that—• (A) the Nation's institutions of higher education constitute a national resource which significantly contributes to the security, general welfare, and economy of the United States; (B) considerable evidence has been advanced which indicates that many institutions of higher education are in financial distress resulting from many causes, including, among others, efforts on the part of such institutions to increase enrollments, to improve the quality of education and training, and to enlarge educational opportunities; and (C) various proposals have been presented to the Congress, in response to such condition of financial distress, for providing financial assistance to the Nation's institutions of higher education but, except for that necessary to justify payments provided for reimbursement for part of the cost of instruction as provided in title X of this Act, insufficient information is available on the Post, p. 375. basis of which the Congress can determine, with any degree of certainty, the nature and causes of such financial distress or the most appropriate means with which present and future conditions of financial distress may be dealt. (2) I t is the purpose of this section to provide to institutions of higher education, which are determined in accordance with this section to be in serious financial distress, interim emergency assistance to enable them to determine the nature and causes of such distress and the means by which such distress may be alleviated, and to improve their capabilities for dealing with financial problems using, to the extent appropriate, assistance authorized under the Higher Education Act of 1965 and all other sources of financial assistance. 79 Stat. 1219. (b)(1) There is authorized to be appropriated for the period 20 USC 1001 beginning with the date of enactment of this Act, and ending June 30, ""Appropriation. 1974, $40,000,000 for the purpose of making grants under this section. Sums so appropriated shall remain available for obligation and expenditure until expended. (2)(A) The Commissioner is authorized to make grants to institu- Grants, tions of higher education which are in serious financial distress, as such term is defined in regulations of the Commissioner, in accordance with the provisions of this section. (B) A grant under this subsection may be made only upon applica- Applications, tion therefor to the Commissioner. Such applications shall be submitted at such time, in such form, and containing such information, assurances, policies, and procedures as the Commissioner may require in order to enable him to carry out his functions under this section. The Approval condiCommissioner shall not approve any such application unless he finds "ons. that— (i) in the case of a public institution of higher education, the institution has submitted its application for emergency assistance under this subsection to the appropriate State agency, as provided by the law of the State in which it is located and in accordance with regulations of the Commissioner, if any such agency exists

�


text:
Page:United States Statutes at Large Volume 86.djvu/288

 246

Definitions.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

with respect to such State, and such State agency has made a finding, m accordance with criteria established by the Commissioner, that such institution is in serious financial distress and (I) is in need of financial assistance under this section to continue its operation, or ( II) will have to discontinue or substantially curtail its academic programs to the detriment of the quality of education available to its students; (ii) in the case of a nonpublic institution of higher education, the institution either has complied with the procedure set forth in clause (i) for public institutions, or has submitted an application directly to the Commissioner and the Commissioner has determined that the institution meets the condition set forth in either clause (i)(I) or (i) ( II), and has submitted a copy to the appropriate State agency, as determined under the law of the State in which it is located and in accordance with regulations of the Commissioner, for comment; (iii) such institution has developed, adopted, and submitted a plan which the Commissioner determines provides reasonable assurance that, if the institution receives the grant for which it is applying, such institution will be able, during and after the period covered by such grant, to continue the educational services, programs, and activities with respect to which such grant is sought; (iv) such institution is making a major contribution to the overall higher educational system of the area of the State in which it is located, or of the Nation; and (v) -such institution has included in such application such policies and procedures for the use of funds received under the grant as will insure that such funds will not be used for a school or department of divinity or for any religious worship or sectarian activity, and as will insure that such funds will be solely used for the purposes for which the grant is made. (C) An application shall be approved under this subsection only if it includes such information, terms, and conditions as the Commissioner finds necessary and reasonable to enable him to carry out his functions under this section, and as he determines will be in the financial interest of the United States, and the applicant agrees— (i) to disclose such financial information as the Commissioner determines to be necessary to determine the sources or causes of its financial distress and other information relating to its use of its financial resources; (ii) to conduct a comprehensive cost analysis study of its operation, including income-cost comparisons and cost per credit hour of instruction for each department, in accordance with uniform standards prescribed by the Commissioner; and (iii) to consider, and either implement or give adequate reasons in writing for not doing so, any financial or operational reform recommended by the Commissioner for the improvement of its financial condition. (D) The Commissioner shall not approve an application for a grant under this section without first obtaining the advice and recommendations of a panel of specialists who are not regular, full-time employees of the Federal Government and who are competent to evaluate the applications as to the relative degree of financial distress of the applying institutions. (c) As used in this section— (1) the term "institution of higher education'" means an educational institution in any State which (A) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, (B) is legally authorized within such

�


text:
Page:United States Statutes at Large Volume 86.djvu/289

 86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

State to provide a program of education beyond secondary education, (C) has been in existence for at least five years prior to the date upon which it makes application under this section, (D) provides an educational program for which it awards a bachelor's degree or provides not less than a two-year program which is acceptable for full credit towards such a degree, (E) is a public or other nonprofit institution, and (F) is accredited by a nationally recognized accrediting agency or association or, if not so accredited, (i) is an institution with respect to wiich the Commissioner has determined that there is satisfactory assurance, considering the resources available to the institution, the period of time, if any, during which it has operated, the effort it is making to meet accreditation standards, and the purpose for which this determination is being made, that the institution will meet the accreditation standards of such an agency or association within a reasonable time, or (ii) is an institution wiose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution which is accredited, and, for the purpose of this clause, the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of training offered; (2) the term "State''includes the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the Virgin Islands; and (3) the term "school or department of divinity" means an institution or a department or a branch of an institution the program of instruction of which is designed for the education of students (A) to prepare them to become ministers of religion or to enter upon some other religious vocation (or to provide continuing training for any such vocation), or (B) to prepare them to teach theological subjects.

247

•

PART D — S T U D E N T ASSISTANCE REVISION OF PART A OF TITLE IV (EDUCATIONAL OPPORTUNITY GRANTS)

SEC. 131. (a)(1)(A) The first sentence of section 401(b) of the Higher Education Act of 1965 is amended by striking out that part 83^statf*i43^^^' which precedes "to enable the Commissioner" and inserting in lieu 20 USC loei. thereof: "There are hereby authorized to be appropriated $170,000,000 Appropriation, for the fiscal year ending June 30, 1972, and $200,000,000 for each of the succeeding fiscal years ending prior to July 1, 1975,". (B) Section 408 of such Act is amended by striking out "for the 82 Stat. 10is. fiscal year ending June 30, 1971" and inserting in lieu thereof "for ^° "^^ ^^^*' each of the succeeding fiscal years ending prior to June 30, 1975". (2) The amendments made by paragraph (1) shall be effective after Effective date. June 30, 1971. (b)(1) Part A of title IV of such Act is amended to read as follows: 79 stat, 1232. 20 USC 1061. " P A R T A—GRANTS TO STUDENTS I N ATTENDANCE AT INSTITUTIONS OF HIGHER EDUCATION "STATEMENT OF PURPOSE; PROGRAM AUTHORIZATION

"SEC. 401. (a) I t is the purpose of this part, to assist in making available the benefits of postsecondary education to qualified students in institutions of higher education by— "(1) providing basic educational opportunity grants (hereinafter referred to as 'basic grants') to all eligible students;

-081 O - 73 - 19

�


text:
Page:United States Statutes at Large Volume 86.djvu/290

 248

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

"(2) providing supplemental educational opportunity grants (hereinafter referred to as 'supplemental grants) to those students of exceptional need who, for lack of such a grant, would be unable to obtain the benefits of a postsecondary education; "(3) providing for payments to the States to assist them in making financial aid available to such students; and "(4) providing for special programs and projects designed (A) to identify and encourage qualified youths with financial or cultural need with a potential for postsecondary education, (B) to prepare students from low-income families for postsecondary education, and (C) to provide remedial (including remedial language study) and other services to students. " (b) The Commissioner shall, in accordance with subparts 1, 2, 3, and 4, carry out programs to achieve the purposes of this part. "Subpart 1—Basic Educational Opportunity Grants " B A S I C E D U C A T I O N A L O P P O R T U N I T Y G R A N T S: AMOUNT

AND

DETERMINATIONS; APPLICATIONS

Basic grant formula.

Reductions, schedule.

Publication in Federal Register. Limitations.

"SEC. 411. (a)(1) The Commissioner shall, during the period beginning July 1, 1972, and ending June 30, 1975, pay to each student who has been accepted for enrollment in, or is in good standing at, an institution of higher education (according to the prescribed standards, regulations, and practices of that institution) for each academic year during which that student is in attendance at that institution, as an undergraduate, a basic grant in the amount for which that student is eligible, as determined pursuant to paragraph (2). " (2)(A)(i) The amount of the basic grant for a student eligible under this subpart for any academic year shall be $1,400, less an amount equal to the amount determined under paragraph (3) to be the expected family contribution with respect to that student for that year. "(ii) In any case where a student attends an institution of higher education on less than a full-time basis during any academic year, the amount of the basic grant to which that student is entitled shall be reduced in proportion to the degree to which that student is not so attending on a full-time basis, in accordance with a schedule of reductions established by the Commissioner for the purposes of this division. Such schedule of reductions shall be established by regulation and published in the Federal Eegister not later than February 1 of each year. " (B)(i) The amount of a basic grant to which a student is entitled under this subpart for any academic year shall not exceed 50 per centum of the actual cost of attendance at the institution at which the student is in attendance for that year. "(ii) No basic grant under this subpart shall exceed the difference between the expected family contribution for a student and the actual cost of attendance at the institution at which that student is in attendance. If with respect to any student, it is determined that the amount of a basic grant plus the amount of the expected family contribution for that student exceeds the actual cost of attendance for that year, the amount of the basic grant shall be reduced until the combination of expected family contribution and the amount of the basic grant does not exceed the actual cost of attendance at such institution. "(iii) No basic grant shall be awarded to a student under this subpart if the amount of that grant for that student as determined under this paragraph for any academic year is less than $200. Pursuant to criteria established by the Commissioner by regulation, the institution of higher education at which a student is in attendance may award a

�


text:
Page:United States Statutes at Large Volume 86.djvu/291

 86 STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

basic grant of less than $200 upon a determination that the amount of the basic grant for that student is less than $200 because of the requirement of division (i) and that, due to exceptional circumstances, this reduced grant should be made in order to enable the student to benefit from postsecondary education. "(iv) For the purpose of this subparagraph and subsection (b) the term 'actual cost of attendance' means, subject to regulations of the Commissioner, the actual per-student charges for tuition, fees, room and board (or expenses related to reasonable commuting), books, and an allowance for such other expenses as the Commissioner determines by regulation to be reasonably related to attendance at the institution at which the student is in attendance. "(3)(A)(i) Not later than February 1 of each year the Commissioner shall publish in the Federal Register a schedule of expected family contributions for the succeeding academic year for various levels of family income, which, except as is otherwise provided in division (ii), together with any amendments thereto, shall become effective July 1 of that year. During the thirty-day period following such publication the Commissioner shall provide interested parties with an opportunity to present their views and make recommendations with respect to such schedule. "(ii) The schedule of expected family contributions required by division (i) for each academic year shall be submitted to the President of the Senate and the Speaker of the House of Representatives not later than February 1 of that year. If either the Senate or the House of Representatives adopts, prior to May 1 of such year, a resolution of disapproval of such schedule, the Commissioner shall publish a new schedule of expected family contributions in the Federal Register not later than fifteen days after the adoption of such resolution of disapproval. Such new schedule shall take into consideration such recommendations as may be made in connection with such resolution and shall become effective, together with any amendments thereto, on July 1 of that year. " (B)(i) For the purposes of this paragraph and subsection (b), the term 'family contribution' with respect to any student means the amount which the family of that student may be reasonably expected to contribute toward his postsecondary education for the academic year for which the determination under subparagraph (A) of paragraph (2) is made, as determined in accordance with regulations. I n promulgating such r e f l a t i o n s, the Commissioner shall follow the basic criteria set forth m division (ii) of this subparagraph. "(ii) The basic criteria to be followed in promulgating regulations with respect to expected family contribution are as follows: " (I) The amount of the effective income of the student or the effective family income of the student's family. " ( II) The number of dependents of the family of the student, " ( III) The number of dependents of the student's family who are in attendance in a program of postsecondary education and for whom the family may be reasonably expected to contribute for their postsecondary education. " (IV) The amount of the assets of the student and those of the student's family. " (V) Any unusual expenses of the student or his family, such as unusual medical expenses, and those which may arise irom a catastrophe. "(iii) For the purposes of clause (I) of division (ii), the term 'effective family income' with respect to a student means the annual adjusted family income, as determined in accordance with regulations prescribed by the Commissioner, received by the parents or guardian

249

"Actual cost of attendance."

Schedule, publication In Federal Register.

Submittal to Congress. Publication in Federal Register.

"Family contribution."

Regulations, criteria.

"Effective family i n c o m e. "

�


text:
Page:United States Statutes at Large Volume 86.djvu/292

 250

49 Stat. 620. 42 USC 1305. 80 Stat. 12; 82 Stat. 1331. 38 USC 1651, 1700. Regulations.

"Noncredlt remedial course of study."

Payments.

Insufficient funds, percentage of entitlement due.

Excess funds.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

of that student (or the person or persons having an equivalent relationship to such student) minus Federal income tax paid or payable with respect to such income. "(iv) I n determining the expected family contribution with respect to any student, any amount paid under the Social Security Act to, or on account of, the student which would not be paid if he were not a student, and one-half any amount paid the student under chapters 34 and 35 of title 38, United States Code, shall be considered as effective income for such student. " (C) The Commissioner shall promulgate special regulations for determining the expected family contribution and effective family income of a student who is determined (pursuant to regulations of the Commissioner) to be independent of his parents or guardians (or the person or persons having an equivalent relationship to such student). Such special regulations shall be consistent with the basic criteria set forth in division (ii) of subparagraph (B). " (4)(A) The period during which a student may receive basic grants shall be the period required for the completion of the undergraduate course of study being pursued by that student at the institution at which the student is in attendance, except that such period may not exceed four academic years unless— " (i) the student is pursuing a course of study leading to a first degree in a program of study which is designed by the institution offering it to extend over five academic years; or "(ii) the student is, or will be, unable to complete a course of study within four academic years because of a requirement of the institution of such course of study that the student enroll in a noncredit remedial course of study; in either which case such period may be extended for not more than one additional academic year. " (B) For the purposes of clause (ii) of subparagraph (A), a 'noncredit remedial course of study' is a coiirse of study for which no credit is given toward an academic degree, and which is designed to increase the ability of the student to engage in an undergraduate course of study leading to such a degree. " (b)(1) The Commissioner shall from time to time set dates by which students must file applications for basic grants under this subpart. "(2) Each student desiring a basic grant for any year must file an application therefor containing such information and assurances as the Commissioner may deem necessary to enable him to carry out his functions and responsibilities under this subpart. "(3)(A) Payments under this section shall be made in accordance with regulations promulgated by the Commissioner for such purpose, in such manner as will best accomplish the purposes of this section. " (B)(i) If, during any period of any fiscal year, the funds available for payments under this subpart are insufficient to satisfy fully all entitlements under this subpart, the amount paid with respect to each such entitlement shall be— " (I) in the case of any entitlement which exceeds $1,000,75 per centum thereof; " ( II) in the case of any entitlement which exceeds $800 but does not exceed $1,000,70 per centum thereof; " ( III) in the case of any entitlement which exceeds $600 but does not exceed $800,65 per centum thereof; and " ( IV) in the case of any entitlement which does not exceed $600, 50 per centum thereof, "(ii) If, during any period of any fiscal year, funds available for making payments under this subpart exceed the amount necessary to

�


text:
Page:United States Statutes at Large Volume 86.djvu/293

 86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

make the payments prescribed in division (i), such excess shall be paid with respect to each entitlement under this subpart in proportion to the degree to which that entitlement is unsatisfied, after payments are made pursuant to division (i). " (iii) I n the event that, at the time when payments are to be made pursuant to this subparagraph (B), funds available therefor are insufficient to pay the amounts set forth in division (i), the Comrnissioner shall pay with respect to each entitlement an amount which bears the same ratio to the appropriate amount set forth in division (i) as the total amount of funds so available at such time for such payments bears to the amount necessary to pay the amounts indicated in division (i) in full. "(iv) No method of computing or manner of distribution of payments under this subpart shall be used which is not consistent with this subparagraph. " (v) I n no case shall a payment under this subparagraph be made if the amount of such payment after application of the provisions of this subparagraph is less than $50. " (C)(i) During any fiscal year in which the provisions of subparagraph (B) apply, a basic grant to any student shall not exceed .50 per centum of the difference between the expected family contribution for that student and the actual cost of attendance at the institution in which the student is enrolled, unless sums available for making payments under this subsection for any fiscal year equal more than 75 per centum of the total amount to which all students are entitled under this subpart for that fiscal year, in which case no basic grant shall exceed 60 per centum of such difference. "(ii) The limitation set forth in division (i) shall, when applicable, be in lieu of the limitation set forth in subparagraph (B)(i) of subsection (a)(2). "'(4) No payments may be made on the basis of entitlements established under this subpart during any fiscal year ending prior to July 1, 1975, in which— " (A) the appropriation for making grants under subpart 2 of this part does not at least equal $130,093,000; and " (B) the appropriation for work-study payments under section 441 of this title does not at least equal $237,400,000; and " (C) the appropriation for capital contributions to student loan funds under part p] of this title does not at Irast equal $286,000,000.

251

Limitations.

.,

^°®'' P- 2^3-

"Subpart 2—Suppleniental Educational Opportunity Grants "PURPOSE; APPROPRIATIONS AUTHORIZED

"SEC. 413A. (a) I t is the purpose of this subpart to provide, through institutions of higher education, supplemental grants to assist in making available the benefits of postsecondar-y education to qualified students who, for lack of financial means, would be unable to obtain such benefits without such a grant. " (b)(1) For the purpose of enabling the Commissioner to make payments to institutions of higher education which have made agreements with the Commissioner in accordance with section 413C(b), for use by such institutions for payments to undergraduate students for the initial academic year of a supplemental grant awarded to them under this subpart, there are authorized to be appropriated $200,000,000 for the fiscal year ending June 30, 1973, and for each of the succeeding fiscal years ending prior to July 1, 1975. Funds appropriated pursuant to this paragraph shall be appropriated separate from any funds appropriated pursuant to paragraph (2).

/

�


text:
Page:United States Statutes at Large Volume 86.djvu/294

 252

Initial year payment provisions.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

"(2) I n addition to the sums authorized to be appropriated by paragraph (1), there are authorized to be appropriated such sums as may be necessary for payment to institutions of higher education for use by such institutions for making continuing supplemental grants under this subpart, except that no appropriation may be made pursuant to this paragraph for any fiscal year beginning more than three years after the last fiscal year for which an appropriation is authorized under paragraph (1). Funds appropriated pursuant to this paragraph shall be appropriated separate from any funds appropriated pursuant to paragraph (1). "(3) Sums appropriated pursuant to this subsection for any fiscal year shall be available for payments to institutions until the end of the fiscal year succeeding the fiscal year for which they were appropriated. "(4) For the purposes of this subsection, payment for the first year of a supplemental grant shall not be considered as an initial year payment if the grant was awarded for the continuing education of a student who— " (A) had been previously awarded a supplemental grant under this subpart (whether by another institution or otherwise), and " (B) had received payment for any year of that supplemental irrant. ''AMOUNT AND DURATION OF GRANTS

Limitation.

"Student financial aid." Ante, p. 248; Post, pp. 271, 273.

Basic criteria and schedules.

"SEC. 413B. (a)(1) From the funds received by it for such purpose under this subpart, an institution which awards a supplemental grant to a student for an academic year under this subpart shall, for such year, pay to that student an amount determined pursuant to paragraph (2). "(2)(A)(i) The amount of the payment to any student pursuant to paragraph (1) shall be equal to the amount determined by the institution to be needed by that student to enable him to pursue a course of study at the institution, except that such amount shall not exceed—• " (I) $1,500, or " ( II) one-half the sum of the total amount of student financial aid provided to such student by such institution, whichever is the lesser. "(ii) No student shall be paid during all the academic years he is pursuing his undergraduate course of study at one or more institutions of higher education in excess of $4,000 or in the case of any student to whom the provisions of subsection (b)(1)(B) apply, $5,000. "(iii) For the purposes of clause ( II) of division (i), the term 'student financial aid' includes assistance payments to the student under subpart 1 of this part and parts C and E of this title, and any assistance provided to a student under any scholarship program established by a State or a private institution or organization, as determined in accordance with regulations, shall be deemed to be aid provided such student by the institution. " (B) If the amount determined under division (i) of subparagraph (A) with respect to a student for any academic year is less than $200, no payment shall be made to that student for that year. " (C) Subject to subparagraphs (A) and (B), the Commissioner shall prescribe, for the guidance of institutions, basic criteria and schedules for the determination of the amount of need to be determined under division (i) of subparagraph (A). Such criteria and schedules shall take into consideration the objective of limiting assistance under this subpart to students of financial need, and such other factors related to determining the need of students for financial assistance as the Commissioner deems relevant but such criteria or schedules shall not disqualify an applicant on account of his earned income if income from other sources in the amount of such earned income would not disqualify him.

�


text:
Page:United States Statutes at Large Volume 86.djvu/295

 86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

253

' ' (b)(1)(A) A student eligible for a supplemental grant may be awarded such a grant under this subpart for each academic year of the period required for completion by the recipient of his undergraduate course of study in the institution of higher education from which he received such grant. Five-year " (B) A student may not receive supplemental grants under this programs. subpart for a period of more than four academic years, except that in the case of a student— " (i) who is pursuing a course of study leading to a hrst degree in a program of study which is designed by the institution offering it to extend over five academic years, or "(ii) who is because of his particular circumstances determined by the institution to need an additional year to complete a course of study normally requiring four academic years, such period may be extended for not more than one additional academic year. and "(2) A supplemental grant awarded under this subpart shall entitle a t tAcademic standendance the student to whom it is awarded to payments pursuant to such grant ards" only if— " (A) that student is maintaining satisfactory progress in the course of study he is pursuing, according to the standards and practices of the institution awarding the grant, and " (B) that student is devoting at least half-time to that course of study, during the academic year, in attendance at that institution. Failure to be in attendance at the institution during vacation periods Nonattendance. or periods of military service, or during other periods during which the Commissioner determines, in accordance with regulations, that there is good cause for his nonattendance, shall not render a student ineligible for a supplemental grant; but no payments may be made to a student during any such period of failure to be in attendance or period of nonattendance. "SELECTION or RECIPIENTS; AGREEMENTS WITH INSTITUTIONS

"SEC. 413C. (a)(1) An individual shall be eligible for the award of a supplemental grant under this subpart by an institution of higheieducation which has made an agreement with the Commissioner pursuant to subsection (b), if the individual makes application at the time and in the manner prescribed by that institution, in accordance with regulations of the Commissioner. "(2) From among those who are eligible for supplemental grants through an institution which has an agreement with the Commissioner under subsection (b) for each fiscal year, the institution shall, in accordance with such agreement under subsection (b), and within the amount allocated to the institution for that purpose for that year under section 413D(b) select individuals who are to be awarded such grants and determine, in accordance with section 413B, the amounts to be paid to them. An institution shall not award a supplemental grant to an individual unless it determines that— " (A) he has been accepted for enrollment as an undergraduate student at such institution or, in the case of a student already attending such institution, is in good standing there as an undergraduate; " (B) he shows evidence of academic or creative promise and capability of maintaining good standing in this course of study; " (C) he is of exceptional financial need; and " (D) he would not, but for a supplemental grant, be financially able to pursue a course of study at such institution.

Eligibility requirements.

�


text:
Page:United States Statutes at Large Volume 86.djvu/296

 254

agreeme"ntTrovisions.

Post, p. 274.

Post, p. 275.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

For the purposes of clause (C) of this paragraph, in determining financial need, the expected family contribution shall be considered to be the contribution expected in the specific circumstances of the student as determined by the student financial aid officer at the institution in accordance with criteria promulgated by the Commissioner. Any calculation of the ability of a family to contribute shall include consideration of (i) family assets which should reasonably be available for such purpose, (ii) the number of children in the family, (iii) the number of children attending institutions of higher education, (iv) any catastrophic illness in the family, (v) any educational expenses of other dependent children in the family, and (vi) other circumstances affecting the student's financial need. "(b) Au Institution of higher education which desires to obtain funds for supplemental grants under this subpart shall enter into an agreement with the Commissioner. Such agreement shall— "(1) provide that funds received by the institution under this subpart will be used by it solely for the purposes specified in, and in accordance with, the provisions of this subpart and of section 463; "(2) provide that, in determining whether an individual meets the requirements of clause (C) of paragraph (2) of subsection (a), the institution will—• " (A) consider the source of such individual's income and that of any individual or individuals upon Avhom he relies primarily for support, and " (B) make appropriate review of the assets of the student and of such individuals; " (3) provide that the institution, in cooperation with other eligible institutions where appropriate, will make vigorous efforts to identify qualified youths of exceptional financial need, and to encourage them to continue their education beyond secondary school through such programs and activities as— " (A) establishing or strengthening close working relationships with secondary school principals and guidance and counseling personnel, with a view toward motivating students to complete secondary school and to pursue postsecondary school educational opportunities, and " (B) making, to the extent feasible, conditional commitments for student financial aid by such institution to qualified secondary school students, who but for such grants would be unable to obtain the benefits of higher education, with special emphasis on students enrolled in grade 11 or lower grades who show evidences of academic or creative promise; "(4) provide that the institution will meet the requirements of section 464; " (5) include provisions designed to make grants under this subpart reasonably available, to the extent of available funds, to all eligible students in attendance at the institution; " (6) include such other provisions as may be necessary to protect the financial interest of the United States and promote the purposes of this subpart. " A P P O R T I O N M E N T AND ALLOCATION o r FUNDS

"SEC. 413D. (a) (1^ (A) From 90 per centum of the sums appropriated pursuant to section 413A(b)(1) for any fiscal year, the Commissioner shall apportion to each State an amount which bears the same ratio to such sums as the number of persons enrolled full-time and the full-time equivalent of the number of persons enrolled part time in institutions of higher education in such State bears to the total number

�


text:
Page:Aesthetic Papers.djvu/217

Rh If others pay the tax which is demanded of me, from a sympathy with the State, they do but what they have already done in their own case, or rather they abet injustice to a greater extent than the State requires. If they pay the tax from a mistaken interest in the individual taxed, to save his property or prevent his going to jail, it is because they have not considered wisely how far they let their private feelings interfere with the public good.

This, then, is my position at present. But one cannot be too much on his guard in such a case, lest his action be biassed by obstinacy, or an undue regard for the opinions of men. Let him see that he does only what belongs to himself and to the hour.

I think sometimes, Why, this people mean well; they are only ignorant; they would do better if they knew how: why give your neighbors this pain to treat you as they are not inclined to? But I think, again, this is no reason why I should do as they do, or permit others to suffer much greater pain of a different kind. Again, I sometimes say to myself, When many millions of men, without heat, without ill-will, without personal feeling of any kind, demand of you a few shillings only, without the possibility, such is their constitution, of retracting or altering their present demand, and without the possibility, on your side, of appeal to any other millions, why expose yourself to this overwhelming brute force? You do not resist cold and hunger, the winds and the waves, thus obstinately; you quietly submit to a thousand similar necessities. You do not put your head into the fire. But just in proportion as I regard this as not wholly a brute force, but partly a human force, and consider that I have relations to those millions as to so many millions of men, and not of mere brute or inanimate things, I see that appeal is possible, first and instantaneously, from them to the Maker of them, and, secondly, from them to themselves. But, if I put my head deliberately into the fire, there is no appeal to fire or to the Maker of fire, and I have only myself to blame. If I could convince myself that I have any right to be satisfied with men as they are, and to treat them accordingly, and not according, in some respects, to my requisitions and

title: Page:Aesthetic Papers.djvu/217


text:
Page:United States Statutes at Large Volume 86.djvu/297

 86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

255

of such persons in all the States. The remainder of the sums so appropriated shall be apportioned among the States by the Commissioner in accordance with equitable criteria which he shall establish and which shall be designed to achieve a distribution of the sums so appropriated among the States which will most effectively carry out the purpose of this subpart, except that where any State's apportionment under the first sentence for a fiscal year is less than its allotment under the first sentence of section 401(b) of this Act for the fiscal ^"'®' P* '^'^'^• year ending June 30, 1972, before he makes any other apportionments under this sentence, the Commissionei" shall apportion sufficient additional sums to such State under this sentence to make the State's apportionment for that year under this paragraph equal to its allotment for the fiscal year ending June 30, 1972, under such first sentence. Sums apportioned to a State under the preceding sentence shall be consolidation, consolidated with, and become a part of, its apportionment from the same appropriation under the first sentence of this paragraph. " (B) If the Commissioner determines that the sums apportioned to Excess, reany State under subparagraph (A) for any fiscal year exceed the ^ppo'^onmem. aggregate of the amounts that he determines to be required under subsection (b) for that fiscal year for institutions of higher education in that State, the Commissioner shall reapportion such excess, from time to time, on such date or dates as he shall fix, to other States in such manner as the Commissioner determines will best assist in achieving the purposes of this subpart. "(2) Sums appropriated pursuant to section 413A(b)(2) for any fiscal year shall be apportioned among the States in such manner as the Commissioner determines will best achieve the purposes for which such sums were appropriated. "(b)(1)(A) The Commissioner shall, from time to time, set dates before which institutions in any State must file applications for allocation, to such institutions, of supplemental grant funds from the apportionment to that State (including any reapportionment thereto) for any fiscal year pursuant to subsection (a)(1). " (B)(i) From the sums apportioned (or reapportioned) to any State, the Commissioner shall allocate amounts to institutions which have submitted applications pursuant to subparagraph (A). "(ii) Allocations under division (i) by the Commissioner to such institutions shall be made in accordance with equitable criteria established by the Commissioner by regulation. Such criteria shall be designed to achieve such distribution of supplemental grant funds among such institutions within a State as will most effectively carry out the purposes of this subpart. "(2) The Commissioner shall, in accordance with regulations, allocate to such institutions in any State, from funds apportioned or reapportioned pursuant to subsection (a)(2), funds to be used as the supplemental grants specified in section 413A(b)(2). " (3) Payments shall be made from allocations under this subsection as needed. "Subpart 3—Grants to States for State Student Incentives "PURPOSE; APPROPRTATIOXS AUTHORIZED

"SEC. 415A. (a) I t is the purpose of this subpart to make incentive grants available to the States to assist them in providing grants to eligible students in attendance at institutions of higher education. " (b)(1) There are hereby authorized to be appropriated $50,000,000 for the fiscal year ending June 30, 1973, and for each of the succeeding fiscal years ending prior to July 1, 1975, for payments to the States for giants to students who have not pieviously been awarded such grants.

�


text:
Page:United States Statutes at Large Volume 86.djvu/298

 256

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"(2) I n addition to the sums authorized to be appropriated pursuant to paragraph (1), there is authorized to be appropriated such sums as may be necessary for making payments to States to continue their grants to students made with incentive grants received by such States for previous years pursuant to paragraph (1). "(3) Sums appropriated pursuant to paragraph (1) for any fiscal 3'ear shall remain available for payments to States for the award of student grants under this subpart until the end of the fiscal year succeeding the fiscal year for which such sums were appropriated. "(4) For the purposes of this subsection, a payment on the first year of a student grant with respect to any student who has not been awarded a grant from appropriations pursuant to paragraph (1) during any previous year shall be considered, subject to regulations of the Commissioner, an initial award to be paid from appropriations pursuant to paragraph (1). "ALLOTMENT AMONG STATES

(a)(1)(A) From the sums appropriated pursuant to section 415A(b)(1) for any fiscal year, the Commissioner shall allot to each State an amount which bears the same ratio to such sums as the number of students in attendance at institutions of higher education in such State bears to the total number of such students in such attendance in all the States. " (B) For the purposes of this paragraph, the number of students in attendance at institutions of higher education in a State and in all the States shall be determined by the Commissioner for the most recent year for which satisfactory data are available to him. "(2) The amount of any State's allotment under paragraph (1) for any fiscal year which the Commissioner determines will not be required for such fiscal year for the State student grant incentive program of that State shall be available for reallotment from time to time, on such dates during such year as the Commissioner may fix, to other States in proportion to the original allotments to such States under such part for such year, but with such proportionate amount for any of such States being reduced to the extent it exceeds the sum the Commissioneiestimates such State needs and will be able to use for such year for carrying out the State plan; and the total of such reductions shall be similarly reallotted among the States whose proportionate amounts were not so reduced. Any amount reallotted to a State under this part during a year from funds appropriated pursuant to section 415A(b) (1) shall be deemed part of its allotment under paragraph (1) for such year. " (b) Sums appropriated pursuant to section 415A(b)(2) for any fiscal year shall be allotted among the States in such manner as the Commissioner determines will best achieve the purposes for which such sums were appropriated. "(c) The Commissioner shall make payments for continuing incentive grants only to those States which continue to meet the requirements of section 415C(b)(1), (2), (3), and (5). " SEC. 4:15B.

((APPLICATIONS

FOR STATE STUDENT I N C E N T IV E GRANT PROGRAMS

"SEC. 416C. (a) A State which desires to obtain a payment under this subpart for any fiscal year shall submit an application therefor through the State agency administering its program of student grants, at such time or times, and containing such information as may be required by, or pursuant to, regulation for the purpose of enabling the Commissioner to make the determinations required under this subpart.

�


text:
Page:United States Statutes at Large Volume 86.djvu/299

 86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

"(b) From a State's allotment under this subpart for any fiscal year the Commissioner is authorized to make payments to such State for paying 50 per centum of the amount of student grants pursuant to a State program which— "(1) is administered by a single State agency; "(2) provides that such grants will be in amounts not in excess of $1,500 per academic year for attendance on a full-time basis as an undergraduate at an institution of higher education; "(3) provides for the selection of recipients of such grants on the basis of substantial financial need determined annually on the basis of criteria established by the State and approved by the Commissioner; "(4) provides for the payment of the non-Federal portion of such grants from funds supplied by such State which represent an additional expenditure for such year by such State for grants for students attending institutions of higher education over the amount expended by such State for such grants, if any, during the second fiscal year preceding the fiscal year in which such State initially received funds under this subpart; and "(5) provides (A) for such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State agency under this subpart, and (B) for the making of such reports, in such form and containing such information, as may be reasonably necessary to enable the Commissioner to perform his functions under this subpart. "(c) Upon his ai:)proval of any application for a payment under this subpart, the Commissioner shall reserve from the applicable allotment (including any applicable reallotment) available therefor, the amount of such payment, which (subject to the limits of such jillotment or reallotment) shall be equal to the Federal share of the cost of the student incentive grants covered by such application. The Commissioner shall pay such reserved amount, in advance or by way of reimbursement, and in such installments as he may determine. The Commissioner's reservation of any amount under this section may be amended by him, either upon approval of an amendment of the application or upon revision of the estimated cost of the student grants with respect to which such reservation was made, and in the event of an upward revision of such estimated cost approved by him he may reserve the Federal share of the added cost only from the applicable allotment (or reallotment) available at the time of such approval.

257

?«t:::

"ADMINISTRATION or STATT. PROGRAMS; JTHHCIAL REVIEAV

"SEC. -IISD. (a)(1) The Commissioner shall not finally disapprove any application for a State program submitted under section 415C, or any modification thereof, without first affording the State agency submitting the program reasonable notice and oppoitunity for a hearing. "(2) Whenever the Commissioner, after reasonable notice and Noncompliance, opportunity for hearing to the State agency administering a State notification. ^ ' program approved under this subpart, finds— " (A) that the State program has been so changed that it no longer complies with the provisions of this subpart, or " (B) that in the administration of the program there is a failure to comply substantially with any such provisions, the Commissioner shall notify such State agency that the State will not be regarded as eligible to participate in the program under this subpart until he is satisfied that there is no longer any such faihire to (•omply.

�


text:
Page:United States Statutes at Large Volume 86.djvu/300

 258 Appeal.

Fact findings, modification.

Jurisdiction.

62 Stat. 928.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

" (b)(1) If any State is dissatisfied with the Commissioner's final action with respect to the approval of its State program submitted under this subpart or with his final action under subsection (a), such State may appeal to the United States court of appeals for the circuit in which such State is located. The summons and notice of appeal may be served at any place in the United States. The Commissioner shall forthwith certify and file in the court the transcript of the proceedings and the record on which he based his action. " (2) The findings of fact by the Commissioner, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified findings of fact and may modify his previous action, and shall certify to the court the transcript and record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive' if supported by substantial evidence. "(3) The court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in title 28, United States Code, section 1254. "Subpart 4—Special Programs for Students From Disadvantaged Backgrounds "PROGIL\M AUTHORIZATION

Appropriation.

"SEC. 417A. (a) The Commissioner shall, in accordance with the provisions of this subpart, carry out a program designed to identify qualified students from low-income families, to prepare them for a program of postsecondary education, and to provide special services for such students who are pursuing programs of postsecondary education. "(b) For the purpose of enabling the Commissioner to carry out this subpart, there are authorized to be appropriated $100,000,000 for the fiscal year ending June 30, 1973, and for each of the succeeding fiscal years ending prior to July 1, 1975. "AUTHORIZED ACTIVITIES

Grants and contracts.

"Talent Search."

"SEC. 417B. (a) The Commissioner is authorized (without regard to section 3709 of the Revised Statutes (41 U.S.C. 5)) to make grants to, and contracts with, institutions of higher education, including institutions with vocational and career education programs, combinations of such institutions, public and private agencies and organizations (including professional and scholarly associations), and, in exceptional cases, secondary schools and secondarv vocational schools, for planning, developing, or carrying out withm the States one or more of the services described in section 417A(a). " (b) Services provided through grants and contracts under this subpart shall be specifically designed to assist in enabling youths from low-income families who have academic potential, but who may lack adequate secondary school preparation or who may be physically handicapped, to enter, continue, or resume a program of postsecondary education, including— "(1) programs, to be known as 'Talent Search', designed to— " (A) identify qualified youths of financial or cultural need with an exceptional potential for postsecondary educational training and encourage them to complete secondary school and undertake postsecondary educational training,

�


text:
Page:United States Statutes at Large Volume 86.djvu/301

 86 STAT. ]

259

PUBLIC LAW 92-318-JUNE 23, 1972

" (B) publicize existing forms of student financial aid, including aid furnished under this title, and " (C) encourage secondary-school or college dropouts of demonstrated aptitude to reenter educational programs, including postsecondary-school programs; "(2) programs, to be known as 'Upward Bound', (A) which are designed to generate skills and motivation necessary for success in education beyond high school and (B) in which enrollees from low-income backgrounds and with inadequate secondaryschool preparation participate on a substantially full-time basis during all or part of the program; "(3) programs, to be known as 'Special Services for Disadvantaged Students', of remedial and other special services for students with academic potential (A) who are enrolled or accepted for enrollment at the institution which is the beneficiary of the grant or contract, and (B) who, by reason of deprived educational, cultural, or economic background, or physical handicap, are in need of such services to assist them to initiate, continue, or resume their postsecondary education; and "(4) a program of paying up to 75 per centum of the cost of establishing and operating Educational Opportunity Centers which— " (A) serve areas with major concentrations of lowincome populations by providing, in coordination with other applicable programs and services— " (i) information with respect to financial and academic assistance available for persons in such areas desiring to pursue a program of postsecondary education; " (ii) assistance to such persons in applying for admission to institutions, at which a program of postsecondary education is offered, including preparing necessary applications for use by admission and financial aid officers; and "(iii) counseling services and tutorial and other necessary assistance to such persons while attending such institutions; and •'(B) serve as recruiting and counseling pools to coordinate resources and staff efforts of institutions of higher education and of other institutions offering programs of post^condary education, in admitting educationally disadvantagea persons. The portion of the cost of any project assisted under clause (4) in the preceding sentence which is borne by the applicant shall represent an increase in expenditure by such applicant for the purposes of such project. "(c) Enrollees who are participating on an essentially full-time basis m one or more services being provided under this section may be paid stipends, but not in excess of $30 per month except in exceptional cases as determined by the Commissioner.". (2) The amendment made by paragraph (1) shall be effective after June 30, 1972. (c) Section 461 of the Higher Education Act of 1965 is amended by striking out subsection (b) thereof and inserting in lieu thereof the following: "(b)(1) For the purposes of this title, except part B, the term 'institution of higher education' includes any school of nursing; and any proprietary institution of higher education which has an agreement with the Commissioner containing such terms and conditions

"Upward Bound.»•

"Special Services for Disadvantaged Students."

Educational Opportunity Centers.

Enrollees, stipend, limitation.

Effective date. 82 Stat. 1032; Post, p. 272. 20 USC 1088. "Institution of higher education.»»

�


text:
Page:United States Statutes at Large Volume 86.djvu/302

 260

PUBLIC LAW 92-318-JUNE 23, 1972

Definitions.

79 Stat. 1269; 82 Stat. 1049. 20 USC 1141.

84 Stat. 192. " S c h o o l or d e partment of divinity."

20 USC 1001 note. 20 20 20 82 20

use use use Stat. use

1027. 1116. 1129. 1046. 1134j

[86

STAT.

as the Commissioner determines to be necessary to insure that the availability of assistance to students at the school under this title has not resulted, and will not result, in an increase in the tuition, fees, or other charges to such students. •'(2) For the purposes of this subsection: " (A) The term 'school of nursing' means a public or other nonprofit collegiate or associate degree school of nursing. " (B) The term 'collegiate school of nursing' means a department, division, or other administrative unit in a college oiuniversity which provides primarily or exclusively an accredited program of education in professional nursing and allied subjects leading to the degree of bachelor of arts, bachelor of science, bachelor of nursing, or to an equivalent degree, or to a graduate degree in nursing. " (C) The term 'associate degree school of nursing' means a department, division, or other administrative unit in a junior college, community college, college, or university which provides primarily or exclusively an accredited two-year program of education in professional nursing and allied subjects leading to an associate degree in nursing or to an equivalent degree. " (D) The term 'accredited' when applied to any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Commissioner. " (3) For the purposes of this subsection, the term 'proprietary institution of higher education' means a school (A) which provides not less than a six-month program of training to prepare students for gainful employment in a recognized occupation, (B) which meets the requirements of clauses (1) and (2) of section 1201(a), (C) which does not meet the requirement of section clause (4) of section 1201(a), (D) which is accredited by a nationally recognized accrediting agency or association approved by the Commissioner for this purpose, and (E) which has been in existence for at least two years. For purposes of this paragraph, the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of training offered. "(c) For the purposes of this title— " (1) the term 'academic year' shall be defined by the Commissioner by regulations; and " (2) the term 'in attendance', when applied to a student, means a student who attends an institution of higher education at least on a half-time basis, as defined by the (Xmmissioner by regulation.", (d)(1) Section 1201 of the Higher Education Act of 1965 is amended by adding at the end thereof the following new paragraph: "(1) The term 'school or department of divinity' means an institution or a department or a branch of an institution the program of instruction of which is designed for the education of students (A) to prepare them to become ministers of religion or to enter upon some other religious vocation (or to provide continuing training for any such vocation), or (B) to prepare them to teach theological subjects.". (2) The Higher Education Act of 1965 is amended by striking out the following provisions: (A) The second sentence of section 113; (B) The second sentence of section 207; (C) The second sentence of section 526; (D) The second sentence of section 609; and (E) The second sentence of section 923.

�


text:
Page:United States Statutes at Large Volume 86.djvu/303

 86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

261

INSURED STUDENT LOANS—EXTENSION OF PKOGRA.Ar

SEC. 132. (a)(1) The first sentence of section 424(a) of the Higher Education Act of 1965 is amended to read as follows: "The total principal amount of new loans made and installments paid pursuant to lines of credit (as defined in section 435) to students covered by Federal loan insurance under this part shall not exceed $1,400,000,00<) for the fiscal year ending June 30, 1972, $1,600,000,000 for the fiscal year ending June 30, 1973, $1,800,000,000 for the fiscal year ending June 30, 1974. and $2,000,000,000 for the fiscal year ending June 30, 1975.'; (2) Such section 424(a) is further amended by striking out "June 30, 1975" and inserting in lieu thereof "June 30, 1979". (b) Paragraph (4) of section 428(a) of such Act is amended (1) by striking out "June 30, 1971" and inserting in lieu thereof "June 30, 1975" and (2) by striking out "shall end at the close of June 30, 1975" and inserting in lieu thereof "shall end at the close of June 30, 1979". (c) Section 433(c) of such Act is amended by striking out "two succeeding fiscal years" and inserting in lieu thereof "succeeding fiscal years ending prior to July 1, 1975". (d) The amendments made by this section shall be effective after June 30, 1971.

79 Stat. 1237; $2 Stat. 1020. 20 USC 1074. 20 USC 1085.

20 USC 1078.

82 Stat. 1024. 20 USC 1083. Effective date.

INCREASE IN LOAN LIMITATION IN EXCEPTIONAL (\\SES

SEC. 132A. (a)(1) Section 425(a) of the Higher Education Act of 1965 is amended by striking out "$1,500" and inserting in lieu thereof the following: "$2,500, except in cases where the Commissioner determines, pursuant to regulations prescribed by him, that a higher amount is warranted in order to carry out the purposes of this part with respect to students engaged in specialized training requiring exceptionally high costs of education". (2) The second sentence of section 425(a) of such Act is amended by inserting before the period a comma and the following: "in the case of any student who has not successfully completed a program of undergraduate education, and $10,000 in the case of any graduate or professional student (as defined by regulations of the Commissioner and including any loans which are insured by the Commissioner under this part or by a State or nonprofit institution or organization with which the Commissioner has an agreement under section 428(b) made to such person before he became a graduate or professional student)". (b)(1) Section 428(b)(1)(A) of such Act is amended (1) by striking out "$1,500" and inserting in lieu thereof the following: "$2,500. except in those cases where the Commissioner determines, pursuant to regulations prescribed by him, that a higher amount is warranted in order to carry out the purposes of this part with respect to students engaged in specialized training requiring exceptionally high costs of education)". (2) Section 428(b)(1)(a) of such Act is further amended by inserting before the semicolon the following: "in the case of any student who has successfully completed a program of undergraduate education, and $10,000 in the case of any graduate or professional student (as defined by regulations of the Commissioner and including any loans which are insured by the Commissioner under this part or by a State or nonprofit institution or organization with which the Commissioner has an agreement under this part made to such person before he became a graduate or professional student).". (c) The amendments made by subsections (a) and (b) shall be effective with respect to loans made after the enactment of this Act,

79 Stat. 1238. 20 USC 1075.

82 Stat. 1027.

79 Stat. 1240. 20 USC 1078.

82 Stat. 1027.

Effective date.

�


text:
Page:United States Statutes at Large Volume 86.djvu/304

 262

,

79 Stat. 1236. 20 USC 1071. Ante,

p. 261.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

and insured by the Commissioner under part B of title IV of the Higher Education Act of 1965, or by a State or nonprofit private institution or organization with which the Commissioner has an agreement under section 428(b) of such part. INSURANCE LIABILITY

20 USC lo75:

^^20 USC 1080, 20 USC 1077. 20 USC 1080.

SEC. 132B. (a) Section 425(b) of the Higher Education Act of 1965 is amended to read as follows: "(b) The insurance liability on any loan insured by the Commissioner under this part shall be 100 per centum of the unpaid balance of the principal amount of the loan plus interest. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under the provisions of section 430 Qj^. 437 ^f ^j^jg ^ ^ ^ „ ^ (b) Section 427(a)(2)(D) of such Act is amended by striking^ out the following: " (but without thereby increasing the insurance liability under this part) ". ^Q-^ -j^jjg ]g^g^ sentence of section 430(a) of such Act is amended by striking out "of the loan (other than interest added to principal)" and inserting in lieu thereof the following: "and interest". AMENDMENTS

20 USC 1078.

Ante,

p. 261.

TO I N T E R E S T

SUBSIDY

PROVISIONS

SEC. 132C. (a) Section 428(a)(1) of the Higher Education Act of 2965 is amended to read as follows: "(1) Each student who has received a loan for study at an eligible institution—• " (A) which is insured by the Commissioner under this part; " (B) which was made under a State student loan program (meeting criteria prescribed by the Commissioner), and which was contracted for, and paid to the student, within the period specified by paragraph (4); or " (C) which is insured under a program of a State or of a nonprofit private institution or organization which was contracted for, and paid to the student, within the period specified in paragraph (4), and which— "(i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program which meets the requirements of subparagraph (E) of subsection (b)(1) and provides that repayment of such loan shall be in installments beginning not earlier than sixty days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) at an eligible institution, or "(ii) in the case of a loan insured after June 30, 1967, is insured under a program covered by an agreement made pursuant to subsection (b), shall be entitled to have paid on his behalf and for his account to the holder of the loan a portion of the interest on such loan (in accordance with paragraph (2) of this subsection) only if at the time of execution of the note or written agreement evidencing such loan his adjusted family income is— " (I) less than $15,000 and the eligible institution at which he has been accepted for enrollment or, in the case of a student who is attending such an institution, at which he is in good standing (as determined by such institution)— " (a) has determined the amount of need for such loan by subtracting from the estimated cost of his attendance at such

�


text:
Page:United States Statutes at Large Volume 86.djvu/305

 86 STAT.]

PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972

institution (which, for purposes of this paragraph, means the cost, for the period for which the loan is sought, of tuition, fees, room and board, and reasonable commuting costs) the expected family contribution with respect to such student plus any other resources or student aid reasonably available to such student, and "(/3) has provided the lender with a statement evidencing the determination made under clause (I)(a) of this paragraph and recommending a loan in the amount of such need; or " ( II) equal to or more than $15,000 and the eligible institution at which he has been accepted for enrollment or, in the case of a student who is attending such an institution, at which he is in good standing (as determined by such institution)— " (a) has determined that he is in need of a loan to attend such institution, " ( ^) has determined the amount of such need by subtracting from the estimated cost of attendance at such institution the expected family contribution with respect to such student plus any other resources or student aid reasonably available to such student, and "(y) has provided the lender with a statement evidencing the determination made under clause ( II) (/?) of this paragraph and recommending a loan in the amount of such need. In addition, the Commissioner shall pay an administrative cost allowance in the amount established by paragraph (2)(B) of this subsection with respect to loans to any student without regard to the borrower's need. For the purposes of this paragraph, the adjusted family income of a student shall be determined pursuant to regulations of the Commissioner in effect at the time of the execution of the note or written agreement evidencing the loan. Such regulations shall provide for taking into account such factors, including family size, as the Commissioner deems appropriate. In the absence of fraud by the lender, such determination of the need of a student under this paragraph shall be final insofar as it concerns the obligation of the Commissioner to pay the holder of a loan a portion of the interest on the loan.". (b) Section 4 2 8 (b)(1)(H) of such Act is amended to read as j» n

263

Administrative

cost allowance, payment.

79 Stat. 1242. 20 USC 1078.

follows: " (H) provides that the benefits of the loan insurance program will not be denied any student who has been determined (pursuant to section 428(a)(1)) to be in need of a loan except in the case of loans made by an instrumentality of a State or eligible institution;". (c) Section 427(a)(1) of such Act is amended by striking out", and (C) has provided the lender with a statement of the institution which sets forth a schedule of the tuition and fees applicable to that student and its estimate of the cost of board and room for such a student". TECHNICAL

Ante, p. 262. 20 USC 1077.

AMENDMENTS

SEC. 132D. Section 437 of such Act is amended to read as follows:

82 Stat. 1020. 20 USC 1087.

• • R E P A Y M E N T BY THE COMMISSIONER OF LOANS OF DECEASED OK DISABLED BORROWERS

"SEC. 437. If a student borrower who has received a loan described in clause (A), (B), or (C) of section 428(a)(1) dies or becomes permanently and totally disabled (as determined in accordance with 82-081 0 - 7 3 - 2 0

"*"'*' P- ^^2-

�


text:
Page:United States Statutes at Large Volume 86.djvu/306

 264

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

79 Stat. 1247; 52 Stat. 1024. 20 USC 1084.

regulations of the Commissioner), then the Commissioner shall discharge the borrower's liability on the loan by repaying the amount owed on the loan.". (b) Paragraph (1) of section 428(b) is amended (1) by striking out "and" at the end of clause (J) thereof, (2) by striking out the period at the end of clause (K) and inserting "•; and" in lieu thereof, and (3) by adding at the end of such paragraph the following new clause: " (L) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid during any period (i) during'which the borrower is pursuing a full-time course of study at an eligible institution, (ii) not in excess of three years during which the borrower is a member of the Armed Forces of the United States, (iii) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, or (iv) not in excess of three years during which the borrower is in service as a full-time volunteer under title VIII of the Economic Opportunity Act of 1964." (c) Section 428(e) of such Act is repealed. (d) Paragraph (1) of subsection (c) of such section 428 is amended by striking out "adjusted family income of the borrower" and inserting in lieu thereof "the borrower's lack of need". (e) Section 434 of such Act is amended by striking out "up to 15 per centum of their assets,".

79 Stat. 1236; !2 Stat. 1020. 20 USC 1071.

ELiGiBiLrrY or INSTITUTIONS SEC. 132E. (a) Part B of title IV of the Higher Education Act of 1965 is amended by adding at the end thereof the following new section:

79 Stat. 1242; 82 Stat. 1027. 20 USC 1078.

81 Stat. 7 2 2. 42 USC 2 9 9 1. Repeal. 82 Stat. 1025. 82 Stat. 6 3 6. 20 USC 1078.

"ELIGIBILITY OF INSTITUTIONS Regulations.

Audit.

Ante, p p. 2 6 1, 263; Supra.

List of s t a t e a g e n c i e s, publication.

Effective date.

"SEC. 438. (a) Notwithstanding any other provision of this part, the Commissioner is authorized to prescribe such regulations as may be necessary to provide for— "(1) a fiscal audit of an eligible institution with regard to any funds obtained from a student who has receiA'ed a loan insured under this part, or insured by a State or nonprofit private institution or organization wnth which the Commissioner has an agreement under section 428(b); "(2) the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid with respect to funds obtained from a student who has received a loan insured under this part, or insured by a State or nonprofit private institution or organization with which the Commissioner has an agreement under section 428(b); "(3) the limitation, suspension, or termination of the eligibility under this part of any otherwise eligible institution, whenever the Commissioner has determined, after notice and affording an opportunity for hearing, that such institution has violated or failed to carry out any regulation prescribed under this part. "(b) The Commissioner shall publish a list of State agencies which he determines to be reliable authority as to the quality of public postsecondary vocational education in their respective States foi- the purpose of determining eligibility for all Federal student assistance programs.". (b) The amendment made by subsection (a) shall be effective on and after the sixtieth day following the enactment of this Act.

�


text:
Page:United States Statutes at Large Volume 86.djvu/307

 86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

265

SAVINGS PROVISION

SEC. 132F. The amendments made by sections 132,132A, 132B, 132C, and 132D, shall not be effective with respect to any loan made after the date of enactment of this Act, in whole or in part, to consolidate or convert a loan made or contracted for prior to its effective date. S T F D E N T LOAN M A R K E T I N G

ASSOCIATION

SEC. 133. (a) Part B of title IV of the Higher Education Act of 1965 is further amended by adding at the end thereof the following new section: " S T I ' D E N T LOAN M A R K E T I N G

^"'e, p. 264.

ASSOCIATION

430. (a) The Congress hereby declares that it is the purpose of this section to establish a Government-sponsored private corporation which will be financed by private capital and which will serve as a secondary market and warehousing facility for insured student loans, insured by the Connnissioner under this part or by a State or nonprofit private institution or organization with which the Commissioner lias an agreement under section •128(b), and which will provide liquidity for student loan investments. '"•(b)(1) There is hereby created a body corporate to be known as the Student Loan Marketing Asscx-iation (hereinafter referred to as the 'Association'). The Association shall have succession until dissolved. I t shall uiaintain its principal office in the District of Columbia and shall be deemed, for purposes of venue in civil actions, to be a resident thereof. Offices may be established by the Association in such other place or places as it may deem necessary or appropriate for the conduct of its business. "•(2) The Association, including its franchise, capital, reserves, surl)lus, mortgages, or other security holdings, and income shall be exempt from all taxation now or hereafter imposed by any State, territory, possession. Commonwealth, or dependency of the United States, or by the District of Columbia, or by any county, municipality, or local taxing authority, except that any real property of the Association shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. ''(3) There is hereby authorized to be appropriated to the Secretary of Health, Education, and "Welfare $5,000,000 for making advances for the purpose of helping to establish the Association. Such advances shall he. repaid within such period as the Secretary may deem to be appropriate in light of the maturity and solvency of the Association. Such advances shall bear interest at a rate not less than (A) a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the I^'nited States with remaining periods to maturity comparable to the maturity of such advances, adjusted to the nearest one-eighth of 1 per centum, plus (B) an allowance adequate in the judgment of the Secretary to cover administrative costs and probable losses. Repayments of such advances shall be deposited into miscellaneous receipts of the Treasury. " (c)(1) The Association shall have a Board of Directors which shall "'SEC.

•

consist of twenty-one persons, one of Avhom shall be designated Chairman by the President. "(2) An interim Board of Directors shall be appointed by the President, one of whom he shall designate as interim Chairman, The interim Board shall consist of twenty-one memberS, seven of whom shall be representative of banks or other financial institutions which are insured

^"'e, pp. 26i, Establishment,

Tax exemption.

Appropriation.

Advances, ^"'^'•^^'^•

^.Board of Directors.

�