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PUBLIC LAW 90-575-OCT. 16, 1968 REVISION OF M A I N T E N A N C E

II f^^n i^ni^ Post, p. 1033.

OF EFFORT

[82 STAT.

PROVISION

SEC. 104. Effective for fiscal years ending on or after June 30, 1970, section 407(a)(4) of the Higher Education Act of 1965 is amended to read as lollows: " (4) provide that the institution will meet the requirements of section 464 of this Act (relating to maintenance of effort);". CONSOLIDATION A N D REVISION OF T A L E N T SEARCH A N D U P W A R D BOUND P R O G R A M S; S P E C I A L SERVICES TO DISADVANTAGED STUDENTS I N INSTITUTIONS OF H I G H E R EDUCATION

20 USC 1068.

SEC. 105. (a) Section 408 of the Higher Education Act of 1965 is amended to read as follows: ' ' I D E N T I F Y I N G Q U A L I F I E D L O W - I N C O M E S T U D E N T S; P R E P A R I N G THE M FOR POST SECONDARY EDUCATION; SPECIAL SERVICED FOR S U C H STUDENTS I N INSTITUTIONS OF H I G H E R EDUCATION

"SEC. 408. (a) To assist in achieving the objectives of this part the Commissioner is authorized (without regard to section 3709 of the Revised Statutes (41 U.S.C. 5)) — " (1) to make grants to, or contracts with, institutions of higher education and combinations of institutions of higher education for planning, developing, or carrying out one or more of the programs described in subsection (b), "(2) to make grants to, or contracts with, public and private nonprofit agencies and organizations (including professional and scholarly associations) and to make contracts with public and private agencies and organizations for planning, developing, or carrying out Talent Search programs described in subsection (b)(1), and "(3) in exceptional cases, to make grants to, or contracts with, secondary schools, and postsecondary educational institutions accredited by a State, for planning, developing, or carrying out LTpward Bound programs described in subsection (b)(2). Xo grant or contract for planning, developing, or carrying out a Talent Search program described in subsection (b)(1) may exceed $100,000 per year. "(b) The programs referred to in subsection (a) are— " (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. " (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 post-secondary-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 secondary-school preparation participate on a substantially full-time basis during all or part of the program; or "(3) programs, to be known as 'Special Services for Disadvantaged Students', of remedial and other special services for students

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PUBLIC LAW 90-575-OCT. 16, 1968

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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. " (c)(1) Upward Bound programs under paragraph (2) of subsection (b) must include arrangements to assure cooperation among one or more institutions of higher education and one or more secondary schools. Such programs must include necessary health services. Enrollees in such programs may not receive stipends in excess of $30 per month. The cost of carrying out any such program may not exceed S150 per enrollee per month. Federal financial assistance by way of grant or contract for such a program may not be in excessi of 80 per centum of the cost of carrying out such program. Such programs shall be carried on within the States. " (2) Special Services for Disadvantaged Students programs carried on under paragraph (3) of subsection (b) may provide, among other things, for— " (A) counseling, tutorial, or other educational services, including special summer programs, to remedy such students' academic deficiencies, " (B) career guidance, placement, or other student personnel services to encourage or facilitate such students' continuance or reentrance in higher education programs, or " (C) identification, encouragement, and counseling of any such students with a view to their undertaking a program of graduate or professional education. " (d) There are authorized to be appropriated to carry out this sec- Appropriation tion $10,000,000 in the fiscal year ending June 30, 1969 (of which authorization. $500,000 shall be available in connection with planning and related activities for LTpward Bound programs described in subsection (b) (2)), $56,680,000 for the fiscal year ending June 30, 1970, and $96,000,000 for the fiscal year ending June 30, 1971." (b) Effective July 1, 1969, section 222(a) of the Economic Opportunity Act of 1964 is amended by striking out paragraph (5) and by ^^ usc 2T09 redesignating paragraphs (6), (7), and (8) (and references thereto) as paragraphs (5), (6), and (7). (c)(1) On July 1, 1969, all functions, powers, and duties of the Director of the Office of Economic Opportunity with respect to U p ward Bound programs, are transferred to the Commissioner of Education. No provision of law which limits the number of persons who may be appointed as full-time civilian employees, or temporary and part-time employees, in the executive branch of the Government shall apply to employees of the Office of Education whose duties the Director of the Bureau of the Budget determines primarily relate (A) to programs carried out under section 408(b)(2) of the Higher Education Act of 1965, or (B) to functions transferred by this para- ^"'^' P- lois. graph. In applying any such provision of law to the departments and agencies in the executive branch, the number of such employees of the Office of Education shall not be taken into account. (2) For purposes of this subsection the term "Upward Bound pro- "Upward Bound gram" means a program carried out under section 222(a)(5) of the ^'•°^'^^"'" Economic Opportunity Act of 1964 (as so designated prior to the amendment made by subsection (b) of this section) or a comparable program carried out under section 221 of such Act. 42 USC 28O8.

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Page:United States Statutes at Large Volume 82.djvu/1062

 1020

PUBLIC LAW 90-575-OCT. 16, 1968

[82 STAT.

PART B—AMENDMENTS TO INSURED STUDENT LOAN PROGRAM E X T E N S I O N OF AUTHORITY FOR P A Y M E N T S TO REDUCE S T U D E N T I N T E R E S T COSTS; E L I M I N A T I O N OF AUTHORITY TO M A K E S U C H P A Y M E N T S D U R I N G R E P A Y M E N T PERIOD 79 Stat. 1240; Ante, p. 63420 USC 1078.

Effective date.

20 USC 1079.

SEC. 111. (a) Section 428(a)(4) of the Higher Education Act of 1965 is amended by striking out "October 31, 1968" and inserting in lieu thereof "June 30, 1971, except that, in the case of a loan made or insured under a student loan or loan insurance program to enable a student who has obtained a prior loan made or insured under such program to continue his educational program, such period shall end at the close of June 30, 1975". (b)(1)(A) The portion of the first sentence of section 428(a)(1) which follows subparagraph (C) is amended by striking out ", over the period of the loan,". (B) The first sentence of section 428(a)(2) of such Act is amended by striking out ", and 3 per centum per annum of the principal amount of the loan (excluding interest which has been added to principal) thereafter". (2) The amendments made by this subsection shall apply to loans made on or after the sixtieth day after the date of enactment of this Act, except that such amendments shall not apply so as to require violation of any commitment for insurance made to an eligible lender, or of any line of credit granted to a student, prior to such sixtieth day. An application for a certificate of insurance or of comprehensive insurance coverage pursuant to section 429 of.such Act shall be issued or shall be effective on or after such sixtieth day with respect to loans made prior to such sixtieth day without regard to such amendments. E X T E N S I O N OF FEDERAL LOAN INSURANCE PROGRAM A N D OF AUTHORITY TO GUARANTEE O U T S T A N D I N G N O N - FEDERAL L Y I N S U R E D LOANS

Ante,

p. 634.

Ante,

p. 637.

SEC. 112. (a) Subsection (a) of section 424 of the Higher Education Act of 1965 is amended (1) in the first sentence by striking out "period thereafter ending October 31, 1968" and inserting in lieu thereof "fiscal year ending June 30, 1968, and each of the three succeeding fiscal years"; and (2) in the second sentence by striking out "October 31, 1968" and inserting in lieu thereof "June 30, 1975". (b) Section 428(c)(5) of such Act is amended by striking out "October 31, 1968" and inserting in lieu thereof "September 1, 1969". R E P A Y M E N T BY COMMISSIONER OF LOANS OF DECEASED OR DISABLED BORROWERS

20 USC 10711086.

S E C 113. (a) Part B of title IV of such Act is amended by inserting at the end thereof the following new section: " R E P A Y M E N T BY COMMISSIONER OF LOANS OF DECEASED OR DISABLED BORROWERS

20 USC 1078.

" S E C 437. If a student borrower who has received a loan with respect to which a portion of the interest (1) is payable by the Commissioner under section 428(a), or (2) would be payable but for the adjusted family income of the borrower, dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Commissioner), then the Commissioner shall discharge the borrower's liability on the loan by repaying the amount owed on the loan."

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Page:United States Statutes at Large Volume 82.djvu/1063

 82 STAT. ]

PUBLIC LAW 90-575-OCT. 16, 1968

(b)(1) Section 421(b)(2) of the Higher Education Act of 1965 is amended by inserting after "on student loans" the following: "and for payments under section 437". (2) Section 4 2 7 (a)(2)(E) of such Act is amended by inserting after the comma at the end thereof the following: "and that the lender will enter into such agreements with the Commissioner as may be necessary for the purpose of section 437,". (3) Section 428(b)(2)(B) of such Act is amended by inserting after "of this part" the following: ", including such provisions as may be necessary for the purpose of section 437,". (4) Section 428(c) of such Act is amended by striking out in paragraph (1) ", death, or permanent and total disability", by striking the last sentence of paragraph (3), and by amending paragraph (4) to read as follows: "(4) For purposes of this subsection, the terms 'insurance beneficiary' and 'default' shall have the meanings assigned to them by section 430(e)." (5) Section 430 of such Act is amended—

1021 79 Stat. 1236. 20 USC 1071. ^"^^' ^- ^°2°' 20 USC 1077.

20 USC io78. Ante, p. i536.

20 USC 1080.

(A) by striking out in the section heading, "DEATH, OR DISABILITY";

(B) by striking out in the first sentence of subsection (a) "or upon the death of the student borrower or a finding by the insurance beneficiary that the borrower has become totally and permanently disabled (as determined in accordance with regulations established by the Commissioner) before the loan has been repaid in full,"; and (C) by striking out in subsection (c) all that follows "payment on that insurance^' and inserting in lieu thereof a period. (c) The amendments made by this section shall apply only with respect to loans made on or after the sixtieth day following the date of enactment of this Act.

Effective date.

FEDERAL ADVANCES TO RESERVE F U N D S OF NON-FEDERAL STUDENT LOAN INSURANCE PROGRAMS

SEC. 114. (a)(1) Section 421(b) of the Higher Education Act of 1965 is amended by striking out "and" at the end of paragraph (2); by striking out the period at the end of the first sentence of that subsection and inserting in lieu thereof ", and"; and by adding thereafter the following new paragraph: "(4) there is authorized to be appropriated the sum of $12,500,000 for making advances after June 30, 1968, pursuant to section 422 for the reserve funds of State and nonprofit private 20 USC 1072. student loan insurance programs." (2) The second sentence of section 421(b) of such Act is amended by striking out "under clauses (1) and (2) " and inserting in lieu thereof "underclauses (1), (2), and (4) ". (b) Section 422(a) of such Act is amended— (1) by striking out "clause (3) " in the first sentence of paragraph (1) and inserting in lieu thereof "clauses (3) and (4) ', and by striking out "of the fiscal years ending June 30, 1966, June 30, 1967, or June 30, 1968," and inserting in lieu thereof "fiscal year'' in the second sentence of such paragraph; and (2) by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following new paragraph: " (2) No advance shall be made after June 30, 1968, unless matehed by an equal amount from non-Federal sources. Such equal amount may include the unencumbered non-Federal portion of a reserve fund. As used in the preceding sentence, the term 'unencumbered non-Federal no'n^p'e^de'VaT''o'r^'^ portion' means the amount (determined as of the time immediately pre- aon."*

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Page:United States Statutes at Large Volume 82.djvu/1064

 1022

PUBLIC LAW 90-575-OCT. 16, 1968

79 Stat. 1237. 20 USC 1072.

Ante,

p. 1021.

[82 STAT.

ceding the making of the advance) of the reserve fund less the greater of (A) the sum of (i) advances made under this section prior to July 1, 1968, (ii) an amount equal to twice the amount of advances made under this section after June 80, 1968, and before the advance for purposes of which the determination is made, and (iii) the proceeds of earnings on advances made under this section, or (B) any amount which is required to be maintained in such fund pursuant to State law or regulation, or by agreement with lenders, as a, reserve against the insurance of outstanding loans." (c) Section 422(b) of such Act is amended by inserting " (1) " after " (b)", by inserting "prior to July 1, 1968" before "pursuant to subsection (a) " where it appears in the first and third sentences, by deleting the last sentence of such subsection, and by adding at the end of such subsection the following new paragraphs: "(2) The total of the advances from the sums appropriated pursuant to clause (4) of section 421(b)(A) to nonprofit private institutions and organizations for the benefit of students in any State and (B) to such State may not exceed an amount which bears the same ratio to such sums as the population of such State aged eighteen to twenty-two, inclusive, bears to the population of all the States aged eighteen to twenty-two, inclusive, but such advances may otherwise be in such amounts as the Commissioner determines will best achieve the purposes for which they are made. The amount available, however, for advances to any State shall not be less than $25,000, and any addtional funds needed to meet this requirement shall be derived by proportionately reducing (but not below $25,000) the amount available for advances to each of the remaining States. " (3) For the purposes of this subsection, the population aged eighteen to twenty-two, inclusive, of each State and of all the States shall be determined by the Commissioner on the basis of the most recent satisfactory data available to him." AMENDMENTS RELATING TO ADMINISTRATIVE COST ALLOWANCE A N D I N T E R E S T RATE PROVISIONS

Antej

p. 635-

Intra.

Ante,

p. 636.

20 USC 1077.

SEC. 115. (a)(1) Section 4 2 8 (a)(2)(B) of the Higher Education Act of 1965 is amended to read as follows: " (B) If (i) a State student loan insurance program is covered by an agreement under subsection (b), (ii) a statute of such State limits the interest rate on loans insured by such program to a rate which is less than 7 per centum per annum on the unpaid principal balance, and (iii) the Commissioner determines that section 428(d) does not make such statutory limitation inapplicable and that such statutory limitation threatens to impede the carrying out of the purposes of this part, then he may pay an administrative cost allowance to the holder of each loan which is insured under such program and which is made during the period beginning on the sixtieth day after the date of enactment of the Higher Education Amendments of 1968 and ending 120 days after the adjournment of such State's first regular legislative session which adjourns after January 1, 1969. Such administrative cost allowance shall be paid over the term of the loan in an amount per annum (determined by the Commissioner) which shall not exceed 1 per centum of the unpaid principal balance of the loan." (2) Section 428(a)(2)(A) of such Act is amended by striking out the second sentence and by inserting in the last sentence after "portion of the interest" the following: "and administrative cost allowance". (3) Section 428 of such Act is amended by adding at the end thereof the following new subsection: " (d) No provision of any law of the United States (other than sections 427(a)(2)(D) and 427(b) of this Act) or of any State (other

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Page:United States Statutes at Large Volume 82.djvu/1065

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PUBLIC LAW 90-575-OCT. 16, 1968

1023

than a statute applicable principally to such State's student loan insurance program) which limits the rate or amount of interest payable on loans shall apply to a loan— "(1) which bears interest (exclusive of any premium for insurance) on the unpaid principal balance at a rate not in excess of 7 per centum per annum, and " (2) which is insured (A) by the United States under this part, or (B) by a State or nonprofit private institution or organization under a program covered by an agreement made pursuant to subsection (b) of this section." (4) The amendments made by this subsection shall not apply with Effective date. respect to loans made prior to the sixtieth day after the date of enactment of this Act. (b) Section 428(a)(2)(B) of such Act (as in effect prior to the ^Q^^'^' PP- " S, amendment made by subsection (a)) is amended by striking out "October 31, 1968" and inserting in lieu thereof "the fifty-ninth day after the date of enactment of the Higher Education Amendments of 1968". (c) The amendments made by section 2(a) of Public Law 90-460, ^"'^' P- Sapproved August 3, 1968, shall not be effective with respedt to (1) any loan made or contracted for prior to the date of enactment of such Public Law, or (2) any loan made, after the date of ena(Jtment of this Act, in whole or in part to consolidate or convert a loan made or contracted for prior to the date of enactment of such Public Law. MERGER OF N A T I O N A L VOCATIONAL S T U D E N T LOAN INSURANCE ACT OF 19 6 5 W I T H S T U D E N T LOAN INSURANCE PROGRAM OF H I G H E R EDUCATION ACT OF 1965

SEC. 116. (a) Section 435 of the Higher Education Act of 1965 is 79 Stat. 1247. amended-. ^ ^° "^^ • (1) by redesignating subsections (a), (b), (c), (d), (e), and (f) as (b), (d), (e), (f), (g), and (h), respectively; (2) by inserting before subsection (b) as so redesignated the following new subsection: " (a) The term 'eligible institution' means (1) an institution of "Eligible instihigher education, (2) a vocational school, or (3) with respect to stu-'"''°"' dents who are nationals of the United States, an institution outside the States which is comparable to an institution of higher education or to a vocational school and which has been approved by the Commissioner for purposes of this part."; (3) by striking out in subsection (b) (as so redesignated) "institution of "eligible institution" and inserting in lieu thereof "institution of ^^ig^er,education." higher education", by striking out in the second sentence of such subsection "any institution outside the States which is comparable to an institution described in the preceding sentence and which has been approved by the Commissioner for the purposes of this title, and also includes"; and (4) by inserting after subsection (b) (as so redesignated) the,^^^0°^"'°"^^ text of subsection (a) of section 17 of the National Vocational Student Loan Insurance Act of 1965 amended as follows: ^9 Stat. io48. (A) Strike out " (a) " and insert in lieu thereof " (c) ", '° '"'" (B) Strike out "eligible institution" and insert in lieu thereof "vocational school", and (C) Strike out "Act" in clause (4)(C) and insert in lieu thereof "part". (b)(1) Section 425(a) of such Act is amended by striking out " (1) " ^9 sta^ uas. after "SEC. 425. (a) " and by striking out paragraph (2). ^ ^ ' ^' (2) Section 427(a)(2)(C)(i) of such Act is amended by striking 20 USC 1077. out "institution of higher education or at a comparable institution out-

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Page:United States Statutes at Large Volume 82.djvu/1066

 1024

Repeal. 20 USC 1078. 79 Stat. 1247. 20 USC 1084. 80 Stat. 1244. 20 USC 1086. Repeal. 79 Stat. 1037. 20 USC 981 note. 20 USC 992. 79 Stat. 1245. 20 USC 1081.

20 USC 1083.

PUBLIC LAW 90-575-OCT. 16, 1968

[82

STAT.

side the States approved for this purpose by the Commissioner" and inserting in lieu thereof "eligible institution"! (3) Section 428(a)(6) of such Act is repealed. (4) Section 434 of such Act is amended by striking out "10 per centum" and inserting in lieu thereof "15 per centum". (5) Section 436(a) of such Act is amended by striking out "title and the National Vocational Student Loan Insurance Act of 1965" and inserting in lieu thereof "part". (c)(1) The National Vocational Student Loan Insurance Act of 1965 is repealed. (2) All assets and liabilities of the vocational student loan insurance fund established by section 13 of the National Vocational Student Loan Insurance Act of 1965, matured or contingent, shall be transferred to, and become assets and liabilities of, the student loan insurance fund established by section 431 of the Higher Education Act of 1965. Payments in connection with defaults of loans made on or after the sixtieth day after the date of enactment of this Act and insured by the Commissioner (under the authority of subsection (e)(3) or (e)(4) of this section) under the National Vocational Student Loan Insurance Act of 1965 shall be paid out of the fund established by such section 431. (d) Section 433 of the Higher Education Act of 1965 is amended to read as follows: "DIRECT LOANS

20 USC 1077.

Appropriation authorization. Effective date.

Ante, pp. 634, 635.

"SEC. 433. (a) The Commissioner may make a direct loan to any student who would be eligible for an insured loan for study at a vocational school under this part if (1) in the particular area in which the student resides loans which are insurable under this Act are not available at the rate of interest prescribed by the Secretary pursuant to section 427(a)(2)(D) for such area, or (2) the particular student has been unable to obtain an insured loan at a rate of interest which does not exceed such rate prescribed by the Secretary. "(b) Loans made under this section shall bear interest at the rate prescribed by the Secretary under section 427(a)(2)(D) for the area where the student resides, and shall be made on such other terms and conditions as the Commissioner shall prescribe, which shall conform as nearly as practicable to the terms and conditions of loans insured under this Act. " (c) There is authorized to be appropriated the sum of $1,000,000 for the fiscal year ending June 30, 1969 and for each of the two succeeding fiscal years to carry out this section." (e)(1) Except as provided in paragraphs (2), (3), and (4): (A) This section (and any amendment or repeal made thereby) shall apply to loans made on or after the sixtieth day after the date of enactment of this Act; and the terminal date applicable under the first sentence of section 5(a), under section 9(a)(2)(B), and under section 9(a)(4) of the National Vocational Student Loan Insurance Act shall, instead of October 31, 1968, be deemed to be (i) the day immediately preceding such sixtieth day, or (ii) with respect to any particular lender or State or nonprofit private agency to which paragraph (3) relates, the last day of the period required for modification or termination of, or refusal to extend, the Commissioner's agreements with such agency. (B) I n computing the maximum amounts which may be borrmved by a student who obtains an insured loan on or after such sixtieth day, and the minimum amounts of repayment allowable with respect to sums borrowed by such a student, there shall be included all loans, whenever made, (i) insured by the Commissioner, or a State, institution, or organization with which the

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Page:United States Statutes at Large Volume 82.djvu/1067

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PUBLIC LAW 90-575-OCT. 16, 1968

1025

Commissioner has an agreement under section 428(b) of part B of title IV of the Higher Education Act of 1965 or section 9(b) of 20 USC 1078. the National Vocational Student Loan Insurance Act of 1965, or 20 USC 988. (ii) made by a State under section 428(a)(2)(B) of such part or ^"'^- P- 1022section 9(a)(2)(B) of such Act, or by the Commissioner under ^"'^^ P- ess. section 433 of such part. ^ i^"'^' P- 1024.] (2) Clause (i) (attendance at eligible institution) and clause (iv) ( VI S T A service) of section 427(a) {%) (C) of the Higher Education Act of 1965, shall apply to loans made by the Commissioner and, with 20 USC 1077. the consent of the lender, loans insured by the Commissioner, to students for study at vocational schools, which are outstanding on the sixtieth day after the enactment of this Act, but only with respect to periods of service or attendance occurring on or after such sixtieth day. (3) This section (and any amendment or repeal made thereby) shall not apply so as to require violation of any commitment for insurance made to an eligible lender, or of any line of credit granted to a student, prior to the sixtieth day after enactment of this Act, under the Higher Education Act of 1965 or the National Vocational Student Loan In- J^^^^^ ^°'°^ surance Act of 1965, or, except with the consent of the State or non- ''°2o use 981 profit private agency concerned, impair the obligation of any agree- n°t«ment made pursuant to section 428(b) of the Higher Education Act of 1965 or.section 9(b) of the National Vocational Student Loan Insurance Act of 1965. The Commissioner of Education shall undertake to obtain necessary modifications of agreements entered into by him pursuant to section 428(b) of the Higher Education Act of 1965 or section 9(b) of the National Vocational Student Loan Insurance Act of 1965 and in force upon the date of enactment of this Act so as to conform the provisions of.such agreements to the requirements of such section 428(b). If, however, such modifications cannot be obtained because a party to such an agreement is subject to a statute of a State that prevents such party from complying with the terms of such modification, the Commissioner shall not, before 120 da}^.s after the adjournment of such State's first regular legislative session which adjourns after January 1, 1969, exercise his authority to terminate, or to refuse to extend, such agreement. (4) A certificate of insurance or of comprehensive insurance coverage pursuant to section 11 of the National Vocational Student Loan Insurance Act of 1965 may be issued or made effective on or after the 20 USC 990. sixtieth day after the date of enactment of this Act with respect to loans made prior to such sixtieth day without regard to any amendment or repeal made by this section. A U T H O R I Z I N G D E F E R M E N T OF R E P A Y M ENT OF N O N - FEDERAL L Y I N S U R E D LOANS D U R I N G M I L I T A R Y, VISTA, OR PEACE CORPS SERVICE, OR A T T E N D A N C E AT ELIGIBLE INSTITUTION; FEDERAL P A Y M E N T OF I N T E R E S T A C C R U I N G D U R I N G S U C H A T T E N D A N C E OR SERVICE

SEC. 117. (a)(1) Section 428 of the Higher Education Act of 1965 (as amended by this Act) is amended by adding at the end of such section ^"f^, p. 1022. the following new subsection: "(e) The Commissioner shall encourage the inclusion, in any State student loan program or any State or nonprofit private student loan insurance program meeting the requirements of subsection (a)(1)(B) or (a)(1)(C), of provisions authorizing or requiring that in the case of student loans covered by such program periodic installments of principal need not be paid, but interest shall accrue and be paid, during any period (1) during which the borrower is pursuing a full-time course of study at an eligible institution, (2) not in excess of three years during which the borrower is a member of the Armed Forces of

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Rh tremendous and branching tradition it is called the Holy Grail. The vision of it was especially the reward of that ring of powerful paladins whom King Arthur feasted at a Round Table, a symbol of heroic comradeship such as was afterwards imitated or invented by mediaeval knighthood. Both the cup and the table are of vast importance emblematically in the psychology of the chivalric experiment. The idea of a round table is not merely universality but equality. It has in it, modified of course, by other tendencies to differentiation, the same idea that exists in the very word "peers," as given to the knights of Charlemagne. In this the Round Table is as Roman as the round arch, which might also serve as a type; for instead of being one barbaric rock merely rolled on the others, the king was rather the keystone of an arch. But to this tradition of a level of dignity was added something unearthly that was from Rome, but not of it; the privilege that inverted all privileges; the glimpse of heaven which seemed almost as capricious as fairyland; the flying chalice which was veiled from the highest of all the heroes, and which appeared to one knight who was hardly more than a child.

Rightly or wrongly, this romance established Britain for after centuries as a country with a chivalrous past. Britain had been a mirror of universal knighthood. This fact, or fancy, is of colossal import in all ensuing affairs, especially the affairs of barbarians. These and numberless other local legends are indeed for us buried Rh


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Page:United States Statutes at Large Volume 82.djvu/1068

 1026 75 Stat. 612. 22 USC 2501 note. 81 Stat. 722. 42 USC 29912994d.

20 USC 1078.

20 USC 1077.

Effective date.

PUBLIC LAW 90- 575-OCT. 16, 1968

[82

STAT.

the United States, (3) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, or (4) 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. I n the case of any such State or nonprofit private program containing such a provision any such period shall be excluded in determining the period specified in subsection (b)(1)(C) (ii), or the maximum period for repayment specified in subsection (b)(1)(D). " (2)(A) Section 428(b)(1)(C) (ii) of the Higher Education Act of 1965 is amended by inserting after " ( i i) " the following: "except as provided in subsection (e) of this section,". (B) Section 4 2 8 (b)(1)(D) of such Act is amended by inserting after "subject to subparagraph (C) " the following: "of this paragraph and except as provided by subsection (e) of this section". (b) The first sentence of section 428(a)(2) of such Act is amended by inserting before "; but such portion" the following: ", or which accrues during a. period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in subsection (e) of this section or in section 427(a)(2)(C) ". (c) Section 427(a)(2)(C) (iv) of such Act is amended by inserting "full-time" before "volunteer". (d) Deferment of repayment of principal, as provided in the amendments made by subsection (a) of this section, may be authorized (but not required) with respect to loans meeting the requirements of subparagraph (B) or (C) of section 428(a)(1) of the Higher Education Act of 1965 which are outstanding on the sixtieth day after the date of enactment of this Act, but only with respect to periods of attendance or service occurring on or after such sixtieth day. The amendments made by subsection (b) shall become effective on the sixtieth day after the date of enactment of this Act. PARTICIPATION BY P E N S I O N F U N D S AND FEDER^VL SAVINGS A N D LOAN ASSOCIATIONS

20 USC 1085.

12 USC 1464.

SEC. 118. (a) Section 4'35(g) of the Higher Education Act of 1965 (as so redesignated by section 116 of this Act) is amended by inserting before the period at the end thereof the following: ", or a pension fund approved by the Commissioner for this purpose". (b) The third paragraph of section 5(c) of the Home Owners' Loan Act of 1933 is amended by striking out "expenses of college or university education" and inserting in lieu thereof "expenses of college, university, or vocational education". ACCESS TO FEDERAL LOAN INSURANCE PROGILVM

20 USC 1073.

20 USC 1079.

20 USC 1072.

SEC. 119. (a) Section 423 of the Higher Education Act of 1965 is amended by striking out "The" after "SEC. 423." and inserting in lieu thereof " (a) Except as provided in subsection (b), the"; and by adding at the end thereof the following new subsection: "(b) The Commissioner may issue certificates of insurance under section 429 to a lender in a State— "(1) for insurance of a loan made to a student borrower who does not, by reason of his residence, have access to loan insurance under the loan insurance program of such State (or under any private nonprofit loan insurance program which has received an advance under section 422 for the benefit of students in such State), or " (2) for insurance of all of the loans made to student borrowers by a lender who satisfies the Commissioner that, by reason of the residence of such borrowers, he will not have access to any single

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State or nonprofit private loan insurance program which will insure substantially all of the loans he intends to make to such student borrowers.' (b) Section 421(a)(2) is amended by inserting "or lenders" before 'who do not have reasonable access".

1027

20 USC 1071.

COORDINATION BETWEEN NON-FEDERAL AND FEDERAL PROGRAMS WITH RESPECT TO MAXIMUM AMOUNTS OF INDIVIDUAL LOANS INSURED, ISSUANCE OF INSTALLMENT OBLIGATIONS, AND MINIMUM AMOUNTS OF REPAYMENT INSTALLMENTS ON SUCH LOANS

SEC. 120. (a)(1) Section 428(b)(1)(A) of the Higher Education Act of 1965 is amended by inserting the following before the semicolon at the end of such subparagraph: ", which limit shall not be deemed exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any such year in excess of such annual limit; and provides that the aggregate insured unpaid principal amount of all such insured loans made to any student shall not at any time exceed $7,500". (2) Section 425(a) of the Higher Education Act of 1965 is amended (A) by striking out "in the case of a graduate or professional student (as defined in regulations of the Commissioner), or $1,000 in the case of any other student" in the first sentence, and (B) by striking out "in the case of any graduate or professional student (as defined in regulations of the Commissioner, and including any such insured loans made to such person before he became a graduate or professional student), or $5,000 in the case of any other student" in the second sentence. (b) Section 428(b)(1)(D) of such Act is amended (1) by striking out "subparagraph (C) " and inserting in lieu thereof "subparagraphs (C) and (K) ", and (2) by striking o u t ", where the total of the insured loans to any student which are held by any one person exceeds $2,000, repayment of such", and inserting in lieu thereof "repayment of". (c)(1) Section 428(b)(1) of the Higher Education Act of 1965 is amended (A) by striking out "and" at the end of subparagraph (I), (B) by striking out the period at the end of subparagraph (J) and inserting "; and" in lieu thereof, and (C) by adding after subparagraph (J) the following: " (K) provides that the total of the payments by a borrower during any year of any repayment period with respect to the aggregate amount of all loans to that borrower which are (i) insured under this part, or (ii) made by a State or the Commissioner under section 428(a)(1)(B) or 433, respectively, shall not be less than $360 or the balance of all such loans (together with interest thereon), whichever amount is less." (2) Section 427(c) of such Act is amended by striking out "by the Commissioner", and by inserting the following after "this part ": ", or which are made by a State or the Commissioner under section 428(a) (1)(B) or 433, respectively,". (3) The caption of section 427 of such Act is amended by inserting " FEDERAL L Y I N S U R E D " before " S T U D E N T LOANS". (d)(1) Subject to paragraph (2) of this subsection, (A) the amendments made by this section shall apply to loans made on or after the sixtieth day after the date of enactment of this Act, and (B) in computing the maximum amounts which may be borrowed by a student who obtains an insured loan on or after such sixtieth day, and the minimum amounts of repayment allowable with respect to sums borrowed by such a student, there shall be included all loans, whenever made, (i) insured by the Commissioner, or a State, institution, or organization with which the Commissioner has an agreement under section 428(b) of part B of title IV of the Higher Education Act of 1965 or

20 USC 1078. Limitation.

20 USC 1075.

Ante, p. 1024.

20 USC 1077.

Effective date.

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[82 STAT.

section 9(b) of the National Vocational Student Loan Insurance Act 2o^usc 988. of 1965, or (ii) made by a State under section 428(a)(2)(B) of such Mxt'e, p! eal.^' P^'^^' o^ section 9(a)(2)(B) of such Act, or by the Commissioner under Ante,^, 1024. section 433 of such part. (2) This section (and the amendments made thereby) shall not apply so as to require violation of any commitment for insurance made to an eligible lender, or of any line of credit granted to a student, prior to such sixtieth day or, except with the consent of the State or nonprofit private agency concerned, impair the obligation of any agreement made pu^^suant to section 428(b) of the Higher Education Act of 1965. The Commissioner of Education shall undertake to obtain necessary modifications of agreements entered into by him pursuant to section 428(b)(1) of the Higher PMucation Act of 1965 and in force upon the date of enactment of this Act so as to conform the provisions of such agreements to the requirements of such section 428(b)(1) as amended by this section. If, however, such modifications cannot be obtained because a party to such an agreement is subject to a statute of a State that prevents such party from complying with the terms of such modification, the Commissioner shall not, before 120 days after the adjournment of such State's first regular legislative session which adjourns after January 1, 1969, exercise his authority to terminate, or to refuse to extend, such agreement. PART C—AMENDMENTS TO COLLEGE WORK-STUDY PROGRAM TRANSFER

79 Stat. 1249. 2757. 78 Stat. 513; '*^!'usc¥75i2755.

42 USC 2756.

OR WORK-STUDY, PROVISIONS TO H I G H E R EDUCATION ACT OF 1905

SEC. 131. (a) Title IV of the Higher Education Act of 1965 is amended by striking out part C thereof. Part C of title I of the Eco]K)mic Opportunity Act of 1964 is transferred to the Higher Education Act of 1965 and inserted as part C of title IV of such Act. (b) Part C of title IV of the Higher Education Act of 1965 (as amended by subsection (a) of this section) is further amended— (1) by redesignating sections 141 through 145 (and references thereto) as sections 441 through 445, respectively; and (2) by designating the section of such part which follows section 445 (as so redesignated) as section 446; and (3) by amending section 442(a) to read as follows: "SEC. 442. (a) From the sums appropriated to carry out this part for a fiscal year, the Commissioner shall allot not to exceed 2 per centum among Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands according to their respective needs for assistance under this part. The remainder of such sums shall be allotted among the States as provided in subsection (b). " (c) Any reference to any provision of part C of title I of the Economic Opportunity Act of 1964 in any law of the United States shall be deemed to be a reference to the corresponding provision of part C of title IV of the Higher Education Act of 1965 as amended by this section. EXTENSION OF WORK-STUDY PROGRAM

authAzauon"''

SEC. 132. Section 441 of the Higher Education Act of 1965 (as amended by section 131 of this Act) is amended by adding "; APPROPRIATIONS AUTHORIZED" at the end of the section heading, by inserting " (a) " after "SEC. 441.", and by adding at the end of such section the following new subsection: " (^) There are authorized to be appropriated $225,000,000 for the fiscal year ending June 30, 1969, $255,000,000 for the fiscal year ending June 30, 1970, and $285,000,000 for the fiscal year ending June 30, 1971, to carry out this part."

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1029

E L I G I B I U T Y OF AREA VOCATIONAL SCHOOLS

SEC. 133. (a) Part C of the Higher Education Act of 1965 (as amended by section 131 of this Act) is amended by striking out the •terms "institution of higher education" and "institutions of higher education" wherever they appear (except in section 442(b)(1)) and inserting in lieu thereof "eligible institution" and "eligible institutions", respectively. (b) Section 443(b) of such Act (as added by section 131 of this Act) is amended to read as follows: "(b) For the purposes of this part the term 'eligible institution'^^JJUgibie instimeans an institution of higher education (as defined in section 435(b) of this Act), or an area vocational school (as defined in section 8(2) of ^"'^' P ^°23. the Vocational Education Act of 1963)." 20 USC asg. (c) Section 444 of such Act (as added by section 131 of this Act) is amended by inserting " (a) " after "SEC. 444."; by redesignating paragraphs (a) through (h) as paragraphs (1) through (8), respectively; by redesignating subparagraphs (1), (2), and (3) of paragraphs (1) and (3) (as so redesignated) as subparagraphs (A), (B), and (C), respectively; and by adding at the end of such section the following new subsection: "(b) An agreement entered into pursuant to section 443 with an area vocational school shall contain, in addition to the provisions described in subsection (a) of this section, a provision that a student in such a school shall be eligible to participate in a program under this part only if he (1) has a certificate of graduation from a school providing secondary education or the recognized e(][uivalent of such a certificate, and (2) is pursuing a program of education or training which requires at least six months to complete and is designed to prepare the student for gainful employment in a recognized occupation." REVISION OF MATCHING

PROVISIONS

SEC. 134. Section 444(a)(6) of the Higher Education Act of 1965 (as amended by this part) is amended to read as follows: "(6) provide that the Federal share of the compensation of students employed in the work-study program in accordance with the agreement will not exceed 80 per centum of such compensation; except that the Federal share may exceed 80 per centum of such compensation if the Commissioner determines, pursuant to regulations adopted and promulgated by him establishing objective criteria for such determinations, that a Federal share in excess of 80 per centum is required in furtherance of the purposes of this part; " SET-ASIDE FOR RESIDENTS OF AMERICAN SAMOA OR THE TRUST TERRITORY OF THE PACIFIC ISLANDS

SEC. 135. (a) The first sentence of section 442(a) of the Higher Education Act of 1965 (as amended by this part) is amended by inserting ^"*®' P- 1028. " (1) " before J'allot not to exceed 2 per centum", and by inserting before the period at the end thereof the following: ", and (2) reserve the amount provided by subsection (e)". (b) Such section 442 is further amended by adding at the end thereof the following new subsection: "(e) From the appropriation for this part for each fiscal year the Commissioner shall reserve an amount to provide work-study assistance to students who reside in, but who attend eligible institutions outside of, American Samoa or the Trust Territory of the Pacific

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[82 STAT.

Islands. The amount so reserved shall be allotted to eligible institutions and shall be available only for the purpose of providing workstudy assistance to such students." E L I M I N A T I O N OF AVERAGE H O U R S OF EMPLOYMENT L I M I T A T I O N NON-REGULAR E N R O L L M E N T PERIODS

Atrte. p. 1029.

DURING

g j ^, 136, Section 444 of the Higher Education Act of 1965 (as amended by this part^ is amended by adding at the end thereof the following new subsection: "(c) For purposes of paragraph (4) of subsection (a) of this section, in computing average hours of employment of a student over a semester or other term, there shall be excluded any period during which the student is on vacation and any period of non-regular enrollment. Employment under a work-study program during any such period of non-regular enrollment during which classes in which the student is enrolled are in session shall be only to the extent and in accordance with criteria established by or pursuant to regulations of the Commissioner." REVISION OF M A I N T E N A N C E OF E F FOR T REQUIREMENT

Post, p. 1033.

SEC. 137. Effective for fiscal years ending on or after June 30, 1970, section 444(a)(5) of the Higher Education Act of 1965 (as amended by this part) is amended to read as follows: " (5) provide that the institution will meet the requirements of section 464 of this Act (relating to maintenance of effort);" ADMINISTRATIVE

EXPENSES

SEC. 138. Effective for jfiscal years ending on or after June 30, 1970, section 444(a)(2) of the Higher Education Act of 1965 (as amended b j this part) is amended by striking out all that follows "administrative expenses" and inserting in lieu thereof "in accordance with section 463 of this Act;". E L I G I B I L I T Y OF PROPRIETARY INSTITUTIONS

Ante, p. 1029. Post, p. 1032.

OF H I G H E R

EDUCATION

SEC. 139. Effective for fiscal years ending on or after June 30, 1970— (1) Section 443(b) of the Higher Education Act of 1965 (as amended by this part) is amended by striking out "or" before "an area vocational school", and by inserting before the period at the end thereof the following: ", or a proprietary institution of higher education (as defined in section 461(b) of this Act) ". (2) Section 444(a)(1) of such Act (as amended by this part) is amended by inserting after "work for the institution itself" the following: "(except m the case of a proprietary institution of higher education),". PART D—COOPERATIVE EDUCATION PROGRAMS GRANTS TO INSTITUTIONS OR HIGHER EDUCATION FOR PROGRAMS OF COOPERATIVE EDUCATION; GRANTS AND CONTRACTS FOR TRAINING AND RESEARCH IN COOPERATIVE EDUCATION

SEC. 141. Title IV of the Higher Education Act of 1966 is amended by redesignating part D as part F, by redesignating sections 461 79 Stat. 1251through 467 as sections 491 through 497, respectively, and by in425? 44^1^ 443',591! serting after part C the following new part:

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1031

" P A R T D—COOPERATIVE EDUCATION PROGRAMS u, 'APPROPRIATIONS AUTHORIZED

"SEC. 451. (a) There are authorized to be appropriated $340,000 for the fiscal year ending June 30, 1969, $8,000,000 for the fiscal year ending June 30, 1970, and $10,000,000 for the fiscal year ending June 30, 1971, to enable the Commissioner to make grants pursuant to section 452 to institutions of higher education for the planning, establishment, expansion, or carrying out by such institutions of programs of cooperative education that alternate periods of full-time academic study with periods of full-time public or private employment that will not only afford students the opportunity to earn through employment funds required toward continuing and completing their education but will, so far as practicable, give them work experience related to their academic or occupational objective. Such amount for the fiscal year ending June 30, 1969, shall also be available for planning and related activities for the purpose of this title. "(b) There are further authorized to be appropriated $750,000 for the fiscal year ending June 30, 1969, and for each of the two succeeding fiscal years, to enable the Commissioner to make training or research grants or contracts pursuant to section 453. "(c) Appropriations under this part shall not be available for the payment of compensation of students for employment by employers under arrangements pursuant to this part. "GRANTS FOR PROGRAMS OP COOPERATIVE EDUCATION

"SEC. 452. (a) From the sums appropriated pursuant to subsection (a) of section 451, and for the purposes set forth therein, the Commissioner is authorized to make ^ a n t s to institutions of higher education that have applied therefor m accordance with subsection (b) of this section, in amounts not in excess of $75,000 to any one such institution for any fiscal year. "(b) Each application for a grant authorized by subsection (a) of this section shall be filed with the Commissioner at such time or times as he may prescribe and shall— "(1) set forth programs or activities for which a grant is authorized under this section; "(2) provide that the applicant will expend during such fiscal year for the purpose of such program or activity not less than was expended for such purpose during the previous fiscal year; "(3) provide for the making of such reports, in such form and containing such information, as the Commissioner may reasonably require to carry out his functions under this part, and for the keep- Recordkeeping. ing of such records and for affording such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports; " (4) provide 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 applicant under this part; and "(5) include such other information as the Commissioner may determine necessary to carry out the purposes of this part. "(c) No institution of higher education may receive grants under this section for more than three fiscal years. " (d) I n the development of criteria for approval of applications under this section, the Commissioner shall consult with the Advisory Council on Financial Aid to Students.

89 - 69 - O 009-96

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[82 STAT.

II,

GRANTS AND CONTRACTS FOR TRAINING AND RESEARCH

"SEC. 453. From the sums appropriated pursuant to subsection (b) of section 451, the Commissioner is authorized, for the, training of persons in the planning, establishments, administration, or coordination of programs of cooperative education, or for research into methods of improving, developing, or promoting the use of cooperative education programs in institutions of higher education, to— "(1) make grants to or contracts with institutions of higher education, or combinations of such institutions, and "(2) make grants to other public or private nonprofit agencies or organizations, or contracts with public or private agencies or organizations, when such grants or contracts will make an especially significant contribution to attaining the objectives of this section." PART E — GENERAL PROVISIONS EELATTNG TO STUDENT ASSISTANCE AMENDMENTS EFFECTIVE UPON ENACTMENT

Ante, p. 1030.

gjjc. 151. Title IV of the Higher Education Act of 1965 is amended by inserting after part D the following new part: " P A R T E — GENERAL PROVISIONS EELATING TO STUDENT ASSISTANCE PROGRAMS "SUBPART 1—GENERAL PROVISIONS "DEFINITIONS

"SEC. 461. (a) For purposes of this title, the term 'State' includes the Trust Territory of the Pacific Islands. " (b) For purposes of part C of this title and title II of the National '^o'usc 2*1^-429 I-^^^'^s® Education Act of 1958, the term 'proprietary institution of higher education' means a school (1) which provides not less than a six-month program of training to prepare students for gainful employment in a recognized occupation, (2) which meets the requirements of section 801(a)(1) and 801 (a)(2) of this Act, (3) which does not meet 20 USC 1141. ^jjg requirement of section 801(a)(4) of this Act, (4) which is accredited by a nationally recognized accrediting agency or association approved by the Commissioner for this purpose, and (5) 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. ((ELIGIBILITY OF RESIDENTS OF TRUST TERRITORY OF PACIFIC ISLANDS "SEC. 462. Permanent residents of the Trust Territory of the Pacific Islands shall be eligible for assistance under title II of the National Defense Education Act of 1958 and under this title to the same extent that citizens of the United States are eligible for such assistance. "SUBPART 2—ADVISORY COUNCIL ON FINANCIAL A I D TO STUDENTS "ESTABLISHMENT OF COUNCIL

"SEC. 469. (a) There is established in the Office of Education an Advisory Council on Financial Aid to Students (hereafter in this section referred to as the 'Council'), consisting of the Commissioner, who shall be Chairman, and of members appointed by the Commissioner

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1033

without regard to the civil service or classification laws. Such appointed members shall include (1) leading authorities in the field of education, (2) persons representing State and private nonprofit loan insurance programs, financial and credit institutions, and institutions of higher education and other eligible institutions as those terms may be variously defined in this Act or m the National Defense Education Act of 1958, and (3) at least one undergraduate student in an institution of no^e."^'^ '^"^ higher education or other eligible institution. " (b) The Council shall advise the Commissioner on matters of general policy arising in the administration by the Commissioner of programs relating to financial assistance to students and on evaluation of the effectiveness of these programs. "(c) Members of the Council who are not in the regular full-time compensation, employ of the United States shall, while attending meetings or confer- '"^^^^ expenses. ences of the Council or otherwise engaged in the business of the Council, be entitled to receive compensation at a rate fixed by the Secretary, but not exceeding the rate specified at the time of such service for grade GS-18 in section 5332 of title 5, United States Code, including J^^^^^ ^332 traveltime, and while so serving on the business of the Council away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons employed 80 Stat. 499. intermittently in the Government Service. " (d) The Commissioner is authorized to furnish to the Council such technical assistance, and to make available to it such secretarial, clerical, and other assistance and such pertinent data available to him, as the Council may require to carry out its functions." AMENDMENTS

EFFECTIVE FOR FISCAL YEAR

19 70 AND

THEREAFTER

SEC. 152. Effective for fiscal years ending on or after June 30,19Y0, part E of title IV of the Higher Education Act of 1965 (as added by section 151 of this Act) is amended by inserting after section 462 the following new sections: UE X P E N S E S O F

ADMINISTRATION

"SEC. 463. (a) An institution which ha.s entered into an agreement with the Commissioner under part A or C of this title shall be entitled for each fiscal year for which it receives an allotment under either such part to a payment in lieu of reimbursement for its expenses during such fiscal year m administering programs assisted under such part. The payment for a fiscal year (1) shall be payable from each such allotment in accordance with regulations of the Commissioner, and (2) shall (except as provided in subsection (b)) be an amount equal to 3 per centum of (A) the institution's expenditures during the fi.scal year from its allotment under part A plus (B) its expenditures during such fiscal year under part C for compensation of students. "(b) The aggregate amount paid to an institution for a fiscal year under this section plus the amount withdrawn from its student loan fund under.section 204(b) of the National Defense Education Act of 1958 may not exceed $125,000. ii

MAINTENANCE

OF

EFFORT

"SEC. 464. An agreement between the Commissioner and an institution under part A or part C shall provide assurance that the institution will continue to spend in its own scholarship and student-aid program, from sources other than funds received under such parts, not less than the average expenditure per year made for that purpose during the

20 USC 1061; Ante, p. 1028.

Limitation.

Post,

p. 1034.

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[82 STAT.

most recent period of three fiscal years preceding the effective date of the agreement." PART F—^AMENDMENTS TO NATIONAL DEFENSE STUDENT LOAN PEOGRAM (TITLE II OF NATIONAL DEFENSE EDUCATION ACT OF 1958) EXTENSION OP NATIONAL DEFENSE STUDENT LOAN PROGRAM

80 Stat- 1245 •

20 USC 422. 20 USC 426.

SEC. 171. (a) Section 201 of the National Defense Education Act of 1958 is amended— (1) by striking out "and" before "$225,000,000"; (2) by inserting after "June 30, 1968," the following: "$210,000,000 for the fiscal year ending June 30, 1969, $275,000,000 for the fiscal year ending June 30, 1970, and $300,000,000 for the fiscal year ending June 30, 1971,"; (3) by striking out "and such sums for the fiscal year ending June 30, 1969" and inserting in lieu thereof "and there are further authorized to be appropriated such sums for the fiscal year ending June 30, 1972"; and (4) by striking out "July 1, 1968" and inserting in lieu thereof "July 1, 1971". (]3) Subsection 202 of such Act is amended by striking out "1968" in subsections (a) and (b) and inserting in lieu thereof "1971". (c) Section 206 of such Act is amended by striking out "1972" each time it appears in subsections (a), (b), and (c) of such section, and inserting in lieu thereof "1975". • DMINISTRATIVE EXPENSES

20 USC 424.

Ante, p. 1033.

SEC. 172. Effective for fiscal years ending on or after June 30, 1970— (1) Section 204 of the National Defense Education Act of 1958 is amended by inserting " (a) " after "SEC. 204.", and by striking out in paragraph (3) " (C) routine expenses" and all that follows down through "whichever is the lesser" and inserting in lieu thereof " (C) administrative expenses as provided in subsection (2) Section 204 of such Act is amended by adding at the end thereof the following new subsection: "(b) An institution of higher education that has entered into an agreement with the Commissioner under this section shall be entitled for each fiscal year during which it makes any student loans from a student loan fund established under this title to a payment in lieu of reimbursement for its expenses during such fiscal year in administering its student loan program assisted under this title. Such payment (1) shall be payable from its student loan fund in accordance with regulations of the Commissioner, and (2) (except as provided in section 463(b) of the Higher Education Act of 1965) shall be an amount equal to 3 per centum of the principal amount of loans made from such fund during a fiscal year." AMENDMENTS TO TEACHER CANCELLATION PROVISION

20 USC 425.

20 USC 241c.

SEC. 173. (a)(1) Section 205(b)(3) of the National Defense Education Act of 1958 is amended by inserting after "50 per centum of any such loan" the following: "made prior to July 1, 1970". (2) Clause (A) of such section is amended by inserting before "the Commissioner shall not make such determination" the following: " (unless all of the schools so determined are schools in which the enrollment of children described in clause (A), (B), or (C) of section 103(a)(2) of such Public Law (using a low-income factor of $3,000) exceeds 50 per centum of the total enrollment of the school)".

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(b) The amendments made by subsection (a)(2) shall apply with respect to service performed during academic years ending after the date of the enactment of this Act, whether the loan was made before or after such Act.

1035 Effective date.

ELIGIBILITY OF PROPRIETARy INSTITUTIONS OF HIGHER EDUCATION SEC. 174. (a) Section 103(b) of the National Defense Education Act of 1958 is amended— 20 USC 403. (1) by striking out "and also includes," in the second sentence and inserting in lieu thereof "; any proprietary institution of higher education (as defined in section 461(b) of the Higher Education Act of 1965) which includes in its agreement under section ^"'e- P- 1032. 204 of such title such terms and conditions as the Commissioner '^"'^' P- ^°^'*determines to be necessary to insure that the availability of assistance to students at the school under such title has not, and will not, increase the tuition, fees, or other charges to such students; and"; and (2) by inserting after "requirements of clause (5) " in the third sentence the following: "(but meets the requirements of clause (^))"... (b) Effective with respect to fiscal years ending on or after June 30, 1969, section 203 of such Act is amended by adding at the end thereof the following new sentence: "The aggregate amount of Federal capital contributions paid for any fiscal year under this section to proprietary institutions of higher education (as defined in section 461(b) of the Higher Education Act of 1965) may not exceed the amount by which the funds appropriated pursuant ix) section 201 for such fiscal year exceed $190,000,000."

20 USC 423.

^"'^' P ^^^'t.

ELIMINATION OF REQUIREMENT OF SPECIAL CONSIDERATION FOR STUDENTS OF SUPERIOR ACADEMIC BACKGROUND SEC. 175. Section 204 of the National Defense Education Act of 1958 is amended by inserting "and" at the end of paragraph (3), by striking out paragraph (4), and by redesignating paragraph (5) as paragraph (4).

20 USC 424.

WAIVING OATH OF ALLEGIANCE REQUIREMENT FOR RESmENTS OF TRUST TERRITORY OF PACIFIC ISLANDS SEC. 176. Section 1001(f)(1) of the National Defense Education Act of 1958 is amended by inserting after "any individual" the follow- 20 USC ssi. ing: "(other than a permanent resident of the Trust Territory of the Pacific Islands)". TITLE II — AMENDMENTS TO OTHER PROVISIONS O F H I G H E R E D U C A T I O N ACT O F 1965 PART A—AMENDMENTS TO COMMUNITY SERVICE PROGRAM PROVISIONS (TITLE I) EXTENSION or GRANT PROGRAM

SEC. 201. (a) The first sentence of section 101 of the Higher Education Act of 1965 is amended (1) by striking out "and" after "1966," and (2) by inserting before the period at the end of such sentence the following: ", $10,000,000 for the fiscal year ending June 30, 1969, ?50,000,000 for the fiscal year ending June 30, 1970, and $60,000,000 for the fiscal year ending June 30, 1971". (b) Such section is amended by striking out the second sentence.

H f^^^^- /2^1920 "'"^ 1001. ^" use ""'

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MODIFICATION OF REQUIREMENT FOR C O M P R E H E N S IV E, COORDINATED, A N D STATEWIDE SYSTEM OF COMMUNITY SERVICE PROGRAMS

20 USC 1005.

S E C 202. Section 105(a)(2) of the Higher Education Act of 1965 is amended by inserting before the semicolon at the end thereof the following: "(except that if a comprehensive, coordinated, and statewide system of community service programs cannot be effectively carried out by reason of insufficient funds, the plan may set forth one or more proposals for community service programs in lieu of a comprehensive, coordinated, and statewide system of such programs)". MODIFICATION OF FEDERAL SHARE PROVISION

20 USC 1006.

Effective date.

SEC. 203. (a) Section 106(a) of the Higher Education Act of 1965 is amended by striking out "and 50 per centum of such costs for each of the three succeeding fiscal years" and inserting in lieu thereof "50 per centum of such costs for the fiscal year ending June 30, 1968, and 66% per centum of such costs for fiscal years ending on or after June 30, 1969". (b) The amendment made by subsection (a) of this section shall be effective with respect to grants awarded after the enactment of this Act. PART B — AMENDMENTS TO COLLEGE LIBRARY ASSISTANCE AND LIBRARY TRAINING AND RESEARCH PROGRAMS ( TITLE II) E X T E N S I O N OF COLLEGE LIBRARY ASSISTANCE PROGRAM

20 USC 1021.

(PART A)

SEC. 211. Section 201 of the Higher Education Act of 1965 is amended (1) by inserting after "two succeeding fiscal years," the following: "$25,000,000 for the fiscal year ending June 30, 1969, $75,000,000 for the fiscal year ending June 30, 1970, and $90,000,000 for the fiscal year ending June 30, 1971," and (2) by striking out the second sentence. E L I G I B I L I T Y OF B R A N C H INSTITUTIONS FOR S U P P L E M E N T A L A N D SPECIAL PURPOSE GRANTS

20 USC 1023.

20 USC 1024.

SEC. 212. (a)(1) The first sentence of section 203(a) of such Act is amended by inserting after "institutions of higher education" the following: "(and to each branch of such institution which is located in a community different from that in which its parent institution is located, as determined in accordance with regulations of the Commissioner)". (2) The second sentence of such section is amended by inserting " (or branch)" after "institution". (b) Section 204(a)(2)(A) of such Act is amended by inserting after "institutions of higher education" the following: " ( o r to branches of such institutions which are located in a community different from that in which the parent institution is located, as determined in accordance with regulations of the Commissioner)". (c) Section 204(a)(2)(B) of such Act is amended by inserting after "institutions of higher education" the following: " ( o r to such branches)". REVISION OF M A I N T E N A N C E - O P - E F FOR T REQUIREMENT FOR SPEOIAI/ PURPOSE GRANTS

SEC. 213. (a) Section 204(b)(2) of the Higher Education Act of 1965 is amended by inserting after "June 30, 1965" the following: ", or during the two fiscal years preceding the fiscal year for which the grant is requested, whichever is less".

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1037

(b) The aniendment made by subsection (a) shall be effective with Effective date. respect to applications for grants payable on or after the date of the enactment of this Act. ELIGIBILITY OF NEW INSTITUTIONS FOR BASIC GRANTS

SEC. 214. (a) The first sentence of section 202 of the Higher Edii- 20 USC 1022. cation Act of 1965 is amended (1) by striking out "and" and inserting in lieu thereof a comma, and (2) inserting after "such institutions" the following: ", and, in accordance with criteria prescribed by reTilation, new institutions of higher education in the fiscal year preceding the first year in which students are to be enrolled". (b) The amendments made by subsection (a) shall be effective with Effective date. respect to appropriations for grants under title II of the Higher Education Act of 1965 for fiscal years beginning after June 30, 1969. 10^4*1^^*^ ^°^^ EXTENSION OF LIBRARY TRAINING AND RESEARCH PROGRAM (PART B)

SEC. 215. Section 221 of the Higher Education Act of 1965 is 20 USC 1031. amended (1) by inserting after "two succeeding fiscal years," the following: "$11,800,000 for the fiscal year ending June 30, 1969, $28,CKX),000 for the fiscal year ending June 30, 1970, and $38,000,000 for the fiscal year ending June 30, 1971," and (2) by striking out the second sentence. AMENDMENTS TO LIBRARIANSHIP TRAINING PROVISIONS

SEC. 216. The second sentence of section 223(a) of the Higher Education Act of 1965 is amended— 20 USC 1033. (1) by striking out "to assist in covering the cost of courses of training or study for such persons, and" and inserting in lieu thereof "(1) to assist in covering the cost of courses of training or study (including short term or regular session institutes) for such persons, (2) "; and (2) by inserting before the period at the end thereof the following: ", and (3) for establishing, developing, or expanding programs of library and information science". EXTENSION OF LIBRARY OF CONGRESS PROGRAM (PART C)

SEC. 217. Section 231 of such Act is amended (1) by striking out 20 USC io4i. "and" after "1967," and by inserting after "1968," the following: "$6,000,000 for the fiscal year ending June 30, 1969, and $11,100,000 each for the fiscal year ending June 30, 1970, and the succeeding fiscal year," and (2) by striking out the second sentence. C L A R I F Y I N G AUTHORITY TO PURCHASE COPIES; INCREASING AUTHORITY TO PREPARE CATALOG AND BIBLIOGRAPHIC MATERIALS; AUTHORIZING LIBRARIAN TO ACT AS ACQUISITIONS AGENT

S E C 218. Section 231 of the Higher Education Act of 1965, as amended by section 217 of this Act, is further amended— (1) in paragraph (1), by inserting "copies of" before "all" and by striking out "and"; (2) in paragraph (2), by striking out "for these materials promptly after receipt, and distributing bibliographic information" and inserting in lieu thereof "promptly anddistributing this

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and other bibliographic information about library materials", and by striking out the period at the end thereof and inserting in lieu thereof "; and'"; and (3) by adding after paragraph (2) the following new paragraph: "(3) enabling the Librarian of Congress to pay administrative costs of cooperative arrangements for acquiring library materials published outside of the States and not readily obtainable outside of the country of origin, for institutions of higher education or combinations thereof for library purposes, or for other public or private nonprofit research libraries." PART C—AMENDMENTS TO DEVELOPING INSTITUTIONS PROGRAM (TITLE III) E X T E N S I O N OF DEVELOPING INSTITUTIONS PROGRAM

20 USC 1051.

SEC. 221. Section 301(b)(1) of the Higher Education Act of 1965 is amended by striking out "and" after "1967," and by inserting after "1968," the following: "the sum of $35,000,000 for the fiscal year ending June 30, 1969, the sum of $70,000,000 for the fiscal year ending June 30, 1970, and the sum of $91,000,000 for the fiscal year ending June 30, 1971,". INCREASED S H A R E FOR J U N I O R COLLEGES

SEC. 222. Effective with respect to fiscal years beginning after June 30, 1968, section 301(b)(2) of the Higher Education Act of 1965 is amended by striking out "78 per centum" and inserting in lieu thereof "77 per centum". PROFESSORS E M E R I T U S

JQ2OUSC

1051-

223. (a) Title III of the Higher Education Act of 1965 is amended by inserting immediately after section 305 the following new section: SEC.

"PROFESSORS EMERITUS

Effective date.

"SEC. 306. (a) The Commissioner is authorized to award grants under this section, from funds appropriated for the purpose of this title, to professors retired from active duty at institutions of higher education (other than developing institutions) to encoura^ge such professors to teach and to conduct research at developing institutions. Such grants may be awarded by the Commissioner (1) only upon application made by an institution and approved for this purpose by the Commissioner and (2) only upon a finding by the Commissioner that the program of teaching or research set forth m the application is reasonable in the light of the qualifications of the professor emeritus and of the educational needs of the applicant. " (b) The Commissioner shall undertake a program of dissemination of information concerning this section. "(c) Grants may be awarded under this section for such period of teaching or research as the Commissioner may determine. The amount of each grant awarded under the provisions of this section for each academic year of teaching or research shall be determined by the Commissioner upon the advice of the Council." ^|^^ rpj^^ amendment made by this section shall be effective with respect to appropriations for fiscal years beginning after June 30, 1969.

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Page:United States Statutes at Large Volume 82.djvu/1081

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PUBLIC LAW 90-575-OCT. 16, 1968

D—AMENDMENTS

TO EDUCATION PROGRAM

EXTENSION

(TITLE

PROFESSIONS

1039 DEVELOPMENT

V)

OF PROGRAMS

SEC. 231. (a) Sections 504(b), 511(b), 518(b), 528, 532, and 543 of the Higher Education Act of 1965 are each amended by striking out ^^2^° "fio8°iii8 "the fiscal year ending June 30, 1970" and inserting in lieu thereof mga, iii9b-2. the following: "each of the succeeding fiscal years ending prior to July 1, 1971". (b)(1) Such.section 511(b) is further amended by striking out "June 30, 1971" and inserting in lieu thereof "June 30, 1972". (2) Such section 528 is further amended by striking out "Jul^^ 1, 1970" and inserting in lieu thereof "July 1, 1971", and by changing the comma before "and such sums" to a semicolon. PROVISION OF MEDICAL INSURANCE COVERAGE TO T E A C H E R CORPS M E M B E R S N O T OTHER W I S E COVERED

SEC. 232. Section 514 of the Higher Education Act of 1965 is 2ousciio4. amended by adding immediately following subsection (d) thereof the following new subsection: "(e) The Commissioner is authorized to provide medical (including hospitalization) insurance for members of the Teacher Corps who do not otherwise obtain such insurance coverage either under an arrangement made pursuant to subsection (d) of this section or as an incident of an arrangement between the Commissioner and an institution or a State or local educational agency pursuant to section 513." 20 USC 1103. A U T H O R I Z I N G STATE EDUCATIONAL AGENCIES TO A D M I N I S T E R DIRECTLY PROGRAMS OF TEACHER A N D T E A C H E R AIDE R E C R U I T M E N T A N D T R A I N ING

SEC. 233. (a) Subsection (a) of section 518 of the Higher Education Act of 1965 is amended by inserting after "teacher shortages" the following: ", or the efforts of State educational agencies,". (b) Subsection (a) of section 520 of such Act is amended— (1) in paragraph (2), by inserting after "local educational agencies" the following: "or of the State educational agency, or both," (2) by striking out paragraphs (3) and (4) and inserting in lieu thereof the following: "(3) with respect to so much of the State program as is to be carried out by local educational agencies, (A) provides assurance that every local educational agency whose application for funds under the plan is denied will be given an opportunity for a fair hearing before the State educational agency and (B) sets forth the policies and procedures to be followed in allocating Federal funds to local educational agencies in the State, which policies and procedures shall insure that such funds will be allocated to local educational agencies having the most urgent need for teachers and teacher aides;" and (4) by redesignating paragraphs (5) through (10) as paragraphs (4) through (9), respectively. MINIMUM

ALLOTMENT FOR TITLE V - B, SUBPART

20 USC 1110.

2

SEC. 234. (a) The second sentence of section 519(a) of the Higher Education Act of 1965 is amended to read as follows: "From the remainder of such sums, the Commissioner shall apportion $100,000 to

^o use 1109.

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Effective date.

PUBLIC LAW 90-575-OCT. 16, 1968

[82 STAT.

each State, and shall then apportion to each State such part of the amount remaining which bears the same ratio to the total of such amount as the number of children enrolled in the public and private elementary and secondary schools of that State bears to the total number of children so enrolled in such schools in all of the States.". ^^j^ 'j^j^g amendment made by this section shall be effective with respect to appropriations for fiscal years beginning after June 30, 1968. FELLOWSHIPS FOR SCHOOL ADMINISTRATORS

20 USC n i l.

SEC. 235. The third sentence of section 521 of the Higher Education Act of 1965 is amended by inserting after "become such teachers," the following: "a career in the administration of such schools,". ALLOCATION OF FELLOWSHIPS UNDER TITLE V - C

20 USC 1113.

SEC. 236. Clause (1) of section 523 of the Higher Education Act of 1965 ig amended (1) Dy inserting after "provide an equitable distribution of such fellowships throughout the States," the following: "taking into account such factors as the number of children in each State who are aged three to seventeen and the undergraduate student enrollment in institutions of higher education in each State," and, (2) by striking out "except that to the extent he deems proper in the national interest after consultation with the National Advisory Council on Education Professions Development, the Commissioner may give preference to programs designed to meet an urgent national neecr' and inserting in lieu thereof "except that to the extent that the National Advisory Council on Education Professions Development determines that an urgent need for a certain category of educational personnel is unlikely to be met without preference in favor of such category over other categories of educational personnel, the Commissioner may give preference to programs designed to meet that need, but in no case shall such preferred programs constitute more than 50 per centum of the total number of fellowships awarded in any fiscal year". TECHNICAL CORRECTIONS

20 USC 1114.

SEC. 237. Section 524(a) of the Higher Education Act of 1965 is amended by inserting in paragraphs (1) and (4) "or postsecondary vocational education" after "career m elementary and secondary education". INCREASE I N

20 USC 1115.

COST-OF-EDUCATION

ALLOWANCE

SEC. 238. Section 525(b) of the Higher Education Act of 1965 is amended to read as follows: " (b) The Commissioner shall (in addition to stipends paid to persons under subsection (a)) pay to the institution of higher education at which such person is pursuing his course of study such amount as the Commissioner may determine to be consistent with prevailing practices under comparable federally supported programs, except that such amount shall not exceed ^3,500 per academic year for each such person." EQUITABLE DISTRIBUTION UNDER TITLE

20 USC 1119-

V-D

SEC. 239. The H i g h e r Education A c to f 1965 is amended by inserting at the end of part D the following new section:

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Rh by the forests of popular fancies that have grown out of them. It is all the harder for the serious modern mind because our fathers felt at home with these tales, and therefore took liberties with them. Probably the rhyme which runs,

is much nearer the true mediaeval note than the aristocratic stateliness of Tennyson. But about all these grotesques of the popular fancy there is one last thing to be remembered. It must especially be remembered by those who would dwell exclusively on documents, and take no note of tradition at all. Wild as would be the results of credulity concerning all the old wives' tales, it would not be so wild as the errors that can arise from trusting to written evidence when there is not enough of it. Now the whole written evidence for the first parts of our history would go into a small book. A very few details are mentioned, and none are explained. A fact thus standing alone, without the key of contemporary thought, may be very much more misleading than any fable. To know what word an archaic scribe wrote without being sure of what thing he meant, may produce a result that is literally mad. Thus, for instance, it would be unwise to accept literally the tale that St. Helena was not only a native of Colchester, but was a daughter of Old King Cole. But it would not be very unwise; not so unwise as some things that are deduced Rh


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1041

"DISTRIBUTIOK OF TRAINING PROGRAMS

"SEC. 533. I n making grants and contracts for p r o - a m s and projects under this part, the Commissioner shall seek to achieve an equitable geographical distribution of training opportunities throughout the Nation, taking into account the number of children in each State who are aged three to seventeen." PART E — EQUIPMENT AND MATERIALS FOR HIGHER EDUCATION (TITLE VI) EXTENSION OF PROGRAM

SEC. 241. Section 601 of the Higher Education Act of 1965 is 20 USC 1121. amended— (1) in subsection (b), by striking out "and" after "1967," and by inserting after "1968,''^ the following: "$13,000,000 for the fiscal year ending June 30, 1969, and $60,000,000 for each of the two succeeding fiscal years,"; (2) in subsection (c), by striking out "and" after "1966," and by inserting after "for the succeeding fiscal year," the following: "$1,500,000 for the fiscal year ending June 30, 1969, and $10,000,000 for each of the two succeeding fiscal years,"; and (3) by striking out subsection (d). ELIGIBILITY OF COMBINATIONS OF INSTITUTIONS

SEC. 242. (a) Sections 601(b), 601(c) and 605(a) of the Hig:her Education Act of 1965 are each amended to inserting after "institu- 20 USC 1125. tions of higher education" the following: "and combinations of institutions of higher education". (b) The second sentence of section 604(a) of such Act and the first 20 USC 1124. sentence of section 604(b) are each amended by inserting after "institution" the following: "or combination of institutions of higher education". (c) The third sentence of section 604(a) is amended by striking out "applicant institutions" and inserting in lieu thereof "applicants". (d) Section 604(b) of such Act is amended by inserting after the second sentence the following: "A combination of institutions of higher education shall be eligible for such a grant in axjcordance with regulations of the Commissioner prescribing requirements for maintenance of effort." (e) Section 605(b)(5)(C) of such Act is amended by striking out "institution" and inserting in lieu thereof "applicant". CONSUIiTATION

SEC. 243. Part A of title VI of the Higher Education Act of 1965 is 20 USC 1121amended by inserting at the end thereof the following: ^^^^' "CONSULTATION

"SEC. 610. So as to promote the coordination of Federal programs providing assistance in the purchase of laboratory or other special equipment for education in the natural or physical sciences, the Commissioner shall consult with the National Science Foundation and other agencies in developing general policy, under this title, in respect thereof."

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[82 STAT.

PART F—NETWORKS FOR KNOWLEDGE SHARING OF EDUCATIONAL AND RELATED RESOURCES AMONG COLLEGES AND UNIVERSIITES 20 USC 11411144.

SEC. 251. The Higher Education Act of 1965 is amended by redesignating title VIII as title X II, and sections 801 through 804 (and references thereto however styled in such Act, or any other Act, including such references heretofore made in this Act) as sections 1201 through 1204, respectively. The Higher Education Act of 1965 is further amended by inserting after title VII the following new title: "TITLE VIII—NETWORKS FOR KNOWLEDGE "SHARING EDUCATIONAL AND RELATED RESOURCES

"SEC. 801. (a) To encourage colleges and universities to share to an optimal extent, through cooperative arrangements, their technical and other educational and administrative facilities and resources, and in order to test and demonstrate the effectiveness and efficiency of a variety of such arrangements the Commissioner is authorized to enter into contracts and to make project grants for all or part of the cost of planning, developing, or carrying out such arrangements. Such grants may be made to public or nonprofit private colleges or universities. When in the Commissioner's judgment it will more effectively promote the purposes of this title, the Commissioner may make grants to other established public or nonprofit private agencies or organizations, including professional organizations or academic societies and he may enter into contracts with established private agencies and organizations. " (b) Projects for the planning, development, or carrying out of such arrangements assisted under this title may, subject to the provisions of subsection (c), include— "(1)(A) joint use of facilities such as classrooms, libraries, or laboratories, including joint use of necessary books, materials, and equipment; or (B) affording access to specialized library collections through preparation of interinstitutional catalogs and through development of systems and preparation of suitable media for electronic or other rapid transmission of materials; "(2) establishment and joint operation of closed-circuit television or ec^uivalent transmission facilities (such EIS the instructional television fixed services); and "(3) establishment and joint operation of electronic computer networks and programs therefor, to be available to participating institutions for such purposes as financial and student records, student course work, or transmission of library materials. "(c)(1) Grants pursuant to clause (B) of paragraph (1) of subsection (b) may not be used to pay the costs of electronic transmission terminals. "(2) I n the case of a project for the establishment and operation of a computer network, grants may not include— " (A) the cost of operating administrative terminals or student terminals at participating institutions; or " (B) the cost, or any participating institution's pro rata share of the cost, of using the central computer facilities of the network, except (i) such costs of systems development and programing of computers and transmission costs as are necessary to make the network operational, (ii) the administrative and p r o - a m support costs of the central facilities of the network, and (iii) the lineaccess costs incurred by participating institutions.

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1043

"APPROPRIXVTIONS AUTHORIZED

"SEC. 802. There are authorized to be appropriated for the purposes of this title (and planning and related activities in the initial fiscal year for such purpose), $340,000 for the fiscal year ending June 30, 1969, $4,000,000 for the fiscal year ending June 30, 1970, and $15,000,000 for the fiscal year ending June 30, 1971. "AUTHORITY FOR FREE OR REDUCED RATE COMMUNICATIONS INTERCONNECTION SERVICES

"SEC. 803. Nothing in the Communications Act of 1934, as amended, '*» st^at. lo^^^-^^ or in any other provision of law shall be construed to prevent United note. States communications common carriers from rendering, subject to such rules and regulations as the Federal Communications Commission may prescribe, free or reduced rate communications interconnection services for interconnection systems within the purview of this title, whether or not included in a project for which a grant is made under this title." PART G—EDUCATION FOR THE PUBLIC SERVICE GRANTS, CONTRACTS, AND FELLOWSHIPS TO STRENGTHEN PROGRAMS OF EDUCATION FOR THE PUBLIC SERVICE

SEC. 261. The Higher Education Act of 1965 is amended by inserting after title VIII the following new title: "TITLE IX—EDUCATION FOR THE PUBLIC SERVICE "PURPOSE

"SEC. 901. I t is the purpose of this title to establish a program of grants and fellowships to improve the education of students attending institutions of higher education in preparation for entrance into the service of State, local, or Federal governments, and to attract such students to the public service. " P A R T A—GRANTS AND CONTRACTS To STRENGTHEN AND IMPROVE EDUCATION FOR THE PUBLIC SERVICE "PROJECT GRANTS AND CONTRACTS

"SEC. 903. The Secretary is authorized to make grants to or contracts with institutions of higher education, or combinations of such institutions, to assist them in planning, developing, strengthening, improving, or carrying out programs or projects (i) for the preparation of graduate or professional students to enter the public service or (ii) for research into, or development or demonstration of, improved methods of education for the public service. Such grants or contracts may include payment of all or part of the cost of programs or projects such as— "(1) planning for the development or expansion of graduate or professional programs to prepare students to enter the public service; " (2^ training and retraining of faculty members; "(3) strengthening the public service aspects of courses or curriculums leading to a graduate or professional degree; " (4) establishment, expansion, or operation of centers for study at the graduate or professional level (but not including payment for construction or acquisition of buildings);

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"(5) conduct of short-term or regular session institutes for advanced study by persons engaged in, or preparing to engage in, the preparation of students to enter the public service; "(6) carrying out innovative and experimental programs of cooperative education involving alternate periods of full-time or part-time academic study at the institution and periods of fulltime or part-time public service; and "(7) research into, and development of, methods of training students or faculty, including the preparation of teaching materials and the planning of curriculum. "APPLICATION FOR GRANT OR CONTRACT; ALLOCATION OF GRANTS OR CONTRACTS

"SEC. 904. (a) A grant or contract authorized by this part may be made only upon application to the Secretary at such time or times and containing such information as he may prescribe, except that no such application shall be approved unless it— "(1) sets forth programs, activities, research, or development for which a grant is authorized under this part, and describes the relation to any program set forth by the applicant in an application, if any, submitted pursuant to part B; " (2) provides 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 applicant under this section; and "(3) provides for making such reports, in such form and containing such information, as the Secretary may require to carry out his functions under this section, and for keeping such records and for affording such access thereto as the Secretary may find necessary to assure the correctness and verification of such reports. " (b) The Secretary shall allocate grants or contracts under this part in such manner as will most nearly provide an equitable distribution of the grants or contracts throughout the United States among institutions of higher education which show promise of being able to use funds effectively for the purposes of this part. " (c)(1) Payments under this section may be used, in accordance with regulations of the Secretary, and subject to the terms and conditions set forth in an application approved under subsection (a), to pay part of the compensation of students employed in public service, other than public service as an employee in any branch of the Government of the United States, as part of a program for which a grant has been approved pursuant to this section. " (2) Departments and agencies of the United States are encouraged, to the extent consistent with efficient administration, to enter into arrangements with institutions of higher education for the full-time, part-time, or temporary employment, whether in the competitive or excepted service, of students enrolled in programs set forth in applications approved under subsection (a). " P A R T B — P U B L I C SERVICE FEIXOWSHIPS "AWARD OF PUBLIC SERVICE FELLOWSHIPS

"SEC. 911. The Secretary is authorized to award fellowships in accordance with the provisions of this part for graduate or professional study for persons who plan to pursue a career in public service. Such fellowships shall be awarded for such periods as the Secretary may determine but not to exceed three academic years.

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PUBLIC LAW 90-575-OCT. 16, 1968 "ALLOCATION OF FELLOWSHIPS

"SEC. 912. The Secretary shall allocate fellowships under this part among institutions of higher education with programs approved under the provisions of this part for the use of individuals accepted into such programs, in such manner and according to such plan as will insofar as practicable— "(1) provide an equitable distribution of such fellowships throughout the United States; and " (2) attract recent college graduates to pursue a career in public service. "APPROVAL OF PROGRAMS

"SEC. 913. The Secretary shall approve a graduate or professional program of an institution of higher education only upon application by the institution and only upon his findings— "(1) that such program has as a principal or significant objective the education of persons for the public service, or the education of persons in a profession or vocation for whose practitioners there is a significant and continuing need in the public service as determined by the Secretary after such consultation with other agencies as may be appropriate; " (2) that such program is in effect and of high quality, or can readily be put into effect and may reasonably be expected to be of high quality; " (3) that the application describes the relation of such program to any p r o - a m, activity, research, or development set forth by the applicant m an application, if any, submitted pursuant to part A; and "(4) that the application contains satisfactory assurance that (A) the institution will recommend to the Secretary, for the award of fellowships under this part, for study in such program, only persons of superior promise who have demonstrated to the satisfaction of the institution a serious intent to enter the public service upon completing the program, and (B) the institution will make reasonable continuing efforts to encourage recipients of fellowships under this part, enrolled in such program, to enter the public service upon completing the program. ((STIPENDS "SEC. 914. (a) The Secretary shall pay to persons awarded fellowships under this part such stipends (including such allowances for subsistence and other expenses for such persons and their dependents) as he may determine to be consistent with prevailing prsictices under comparable federally supported programs. "(b) The Secretary shall (m addition to the stipends paid to persons under subsection (a)) pay to the institution of higher education at which such person is pursuing his course of study such amount as the Commissioner may determine to be consistent with prevailing practices under comparable federally supported programs. a FELLOWSHIP CONDITIONS

"SEC. 915. A person awarded a fellowship under the provisions of this part shall continue to receive the payments provided in this part only during such periods as the Secretary finds that he is maintaining satisfactory proficiencv and devoting full time to study or research in the field in which such fellowship was awarded in an institution of

1045

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