text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/619

 PUBLIC LAW 94-482—OCT. 12, 1976 u SCOPK OF LIFELONG

90 STAT. 2087

LEARNING

"SEC. 132. Lifelong learning includes, but is not limited to, adult 20 USC 1015a. basic education, continuing education, independent study, agricultural education, business education and labor education, occupational education and job training programs, jiarent education, postsecondary education, preretirement and education for older and retired people, remedial education, special educational programs for groups or for individuals with special needs, and also educational activities designed to upgrade occupational and professional skills, to assist business, public agencies, and other organizations in the use or innovation and research results, and to serve family needs and personal development. ii

LIFELONG LEARNING ACTIVITIES

"SEC. 133. (a) The Assistant Secretary shall carry out, from funds 20 USC lOlSh. appropriated pursuant to section 1 0 1 (D), a program of planning, 20 USC 1001. assessing, and coordinating projects related to lifelong learning. In carrying out the provisions of this section, the Assistant Secretary shall— "(1) foster improved coordination of Federal support for lifelong learning programs; "(2) act as a clearinghouse for information regarding lifelong Information learning, including the identification, collection, and dissemina- clearinghouse. tion to educators and the public of existing and new information regarding lifelong learning programs which are or may be carried out and supported by any department or agency of the Federal Government; "(3) review present and proposed methods of financing and administering lifelong learning, to determine— " (A) the extent to which each promotes lifelong learning, "(B) program and administrative features of each that contribute to serving lifelong learning, "(C) the need for additional Federal support for lifelong learning, and "(D) procedures by which Federal assistance to lifelong learning may be better applied and coordinated to achieve the purposes of this title; "(4) review the lifelong learning opportunities provided through employers, unions, the media, libraries and museums, secondary schools and postsecondary educational institutions, and other public and private organizations to determine means by which the enhancement of their effectiveness and coordination may be facilitated; " (5) review existing major foreign lifelong learning programs and related programs in order to determine the applicability of such programs in this country; "(6) identify existing barriers to lifelong learning and evaluate programs designed to eliminate such barriers; and " (7) to the extent practicable, seek the advice and assistance of the agencies of the Education Division (including the Office of Education, the National Institute of Education, the Fund for the Improvement of Postsecondary Education, and the National Center for Education Statistics), other agencies of the Federal Government, public advisory groups (including the National Advisory Councils on Extension and Continuing Education, Adult Education, Career Education, Community Education, and Vocational Education), Commissions (including the National Commission

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/620

 90 STAT. 2088

PUBLIC LAW 94-4fi2—OCT. 12, 1976 on Libraries and Information Sciences and the National Commission on Manpower Policy), State agencies, and such other persons or organizations as may be appropriate, in carrying out the Commissioner's responsibilities, and make maximum use of information and studies already available. The review required by clause (3) of this subsection shall include— "(i) a comparative assessment of domestic and foreign tax and other incentives to encourage increased commitment of business and labor; "(ii) a study of alternatives such as lifelong learning entitlement programs or educational vouchers designed to assist adults to undertake education or training in conjunction with, or in periods alternative to employment; "(iii) review of possible modifications to existing Federal and State student assistance programs necessary to increase their relevance to the lifelong learning needs of all adults; " (iv) the organization and design of funding for pre- and postretirement training and education for the elderly; and "(v) modifications to Federal and State manpower training, public employment, unemployment compensation, and similar funding programs so as to better facilitate lifelong education and training and retraining, for employment. "(b) After consultation with appropriate State agencies, the Assistant Secretary is authorized— "(1) to assist in the planning and assessment, to determine whether in each State there is an equitable distribution of lifelong learning services to all segments of the adult population; " (2) to assist in assessing the appropriate roles for the Federal, State, and local governments, educational institutions and community organizations; and "(3) to assist in considering alternative methods of financing and delivering lifelong learning opportunities, including— "(A) identification of State agencies, institutions, and groups that plan and provide programs of lifelong learning, "(B) determination of the extent to which programs are available geographically, "(C) a description of demographic characteristics of the population served, "(D) analysis of reasons for attendance in programs of lifelong learning, and " (E) analysis of sources of funds for the conduct of lifelong learning programs, and the financial support of persons attending programs of lifelong learning. " (c) The Assistant Secretary is authorized, with respect to lifelong learning, to assess, evaluate the need for, demonstrate, and develop alternative methods to improve— " r i) research and development activities; "(2) training and retraining people to become educators of adults; "(3) development of curricula and delivery systems appropriate to the needs of any such programs; "(4) development of techniques and systems for guidance and counseling of adults and for training and retraining of counselors; "(5) development and dissemination of instructional materials appropriate to adults;

�

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


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/621

 PUBLIC LAW 94-482—OCT. 12, 1976 "(6) assessment of the educational needs and goals of older and retired persons and their unique contributions to lifelong learning programs; "(7) use of employer and union tuition assistance and other educational programs, educational and cultural trust funds and other similar educational benefits resulting from collective bargaining agreements, and other private funds for the support of lifelong learning; " (8) integration of public and private educational funds which encourage participation in lifelong learning, including support of guidance and counseling of workers in order that they can make best use of funds available to them for lifelong learning opportunities; and "(9) coordination within communities among educators, employers, labor organizations, and other appropriate individuals and entities to assure that lifelong learning opportunities are designed to meet projected career and occupational needs of the community, after consideration of the availability of guidance and counseling, the availability of information regarding occupational and career opportunities, and the availability of appropriate educational and other resources to meet the career and occupational needs of the community. "(d) In carrying out the provisions of this section the Assistant Secretary is authorized to enter into agreements with, and to make grants to, appropriate State agencies, institutions of higher education, and public and private nonprofit organizations. "(e) In carrying out the provisions of this section, the Assistant Secretary shall issue reports summarizing research and analysis conducted pursuant to this section, and shall develop the resources and capability to analyze and make recommendations regarding specific legislative or administrative proposals which may be considered by the President or by the Congress.

90 STAT. 2089

Agreements and grants, authorization.

Reports

a REPORTS

"SEC. 134. The Assistant Secretary shall transmit to the President and to the Congress a report on such results from the activities conducted pursuant to this part as may be completed by January 1, 1978, together with such legislative recommendations as he may deem appropriate. The Assistant Secretary shall similarly report annually thereafter.".

Transmittal to President and Congress. 20 USC 1015c.

PART B—COLLEGE LIBRARY ASSISTANCE AND LIBRARY TRAINING AND RESEARCH EXTENSION OF AUTHORIZATION

SEC. 106. The first sentence of section 201(b) of the Act is amended by striking out all that follows "authorized to be appropriated" and inserting in lieu thereof "$110,000,000 for fiscal year 1977, $115,000,000 for fiscal year 1978, and $120,000,000 for fiscal year 1979.".

20 USC 1021.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/622

 90 STAT. 2090

PUBLIC LAW 94-482—OCT. 12, 1976 REVISION OP RESEARCH LIBRARY RESOURCES

SEC. 107. Part C of title II of the Act is amended to read as follows: " P A R T C — S T R E X G T II E N I N O RESEARCH LIBRARY

RESOURCES

"FINDINGS AND PURPOSE

20 USC 1041.

" SEC. 231. (a) The Congress finds that— " (1) education, scholarship, and research are significant to the scientific, economic, and cultural development of the Nation, and that steady advances in the social and natural sciences are essential to solve the problems of a complex society; " (2) the Nation's major research libraries are often an essential element in undergraduate education, and are essential to advanced and professional education and research; and " (3) the expansion in the scope of educational and research programs and the rapid increase in the worldwide production of recorded knowledge have placed unprecedented demands upon major research libraries, requiring programs and services that strain the capabilities of cooperative action and are beyond the financial competence of individual or collective library budgets. " (b) I t is the purpose of this part to promote research and education of higher quality throughout the United States by providing financial assistance to major research libraries. "APPROPRIATIONS

20 USC 1042.

AUTHORIZED

" SEC. 232. There are authorized to be appropriated $10,000,000 for the fiscal year 1977, $15,000,000 for fiscal year 1978. and $20,000,000 for fiscal year 1979. "ELIGIBILITY FOR ASSISTANCE

"Major research library." zu usLi ivm.

" SEC. 233. For the purposes of this part, the term 'major research library' means a public or private nonprofit institution, including the library resources of an institution of higher education, an independent research library, or a State or other public library, having library collections which are available to qualified users and which— " (1) make a significant contribution to higher education and research; " (2) are broadly based and are recognized as having national or international significance for scholarly research; " (3) are of a unique nature, and contain material not widely available; and " (4) are in substantial demand by researchers and scholars not connected with that institution. " (b) No institution receiving a grant under this part for any fiscal year may be eligible to receive a basic grant under section 202 of this title for that year. "EQUITABLE DISTRIBUTION OF ASSISTANCE

20 USC 1044. Supra.

" SEC. 234. The Commissioner shall establish criteria designed to achieve regional balance in the allocation of funds under this part which is reasonable in light of the requirements of section 233.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/623

 PUBLIC LAW 94-482—OCT. 12, 1976

90 STAT. 2091

u LIMITATIONS

"SEC. 235. (a) No grant may be made under this part for books, 20 USC 1045. periodicals, documents, or other related materials to be used for sectarian instruction or religious worship, or primarily in connection with any part of the program of a school or department of divinity. "(b) Not more than 150 institutions may receive a grant under this part. "CONSULTATION WITH STATE AGENCY

"SEC. 236. Each institution receiving a grant under this part shall 20 USC 1046. periodically inform the State Library administrative agency and the State agency, if any, concerned with the educational activities of all institutions of higher education in the State in which such institution is located, of its activities under this part.". PART C—STRENGTHENING DEVELOPING INSTITUTIONS EXTENSION OF AUTHORIZATION

SEC. 111. Section 301(b) of the Higher Education Act of 1965 is 20 USC 1051. amended by striking out "July 1, 1975" and inserting in lieu thereof "October 1, 1979". REMOVAL OF RESTRICTIONS OX WAIVERS

SEC. 112. Section 302(a)(2) of the Act is amended by striking out 20 USC 1052. ", except that such grants may not involve an expenditure of funds in excess of 1.4 per centum of the sums appropriated pursuant to this title for any fiscal year". PART D—STUDENT ASSISTANCE B A S I C EDUCAITONAL OPPORTUNITY GRANTS

SEC. 121. (a) Section 411(a)(1) of the Act is amended by striking out "June 30, 1975" and inserting in lieu thereof "September 30, 1979". (b)(1) Section 411(a)(2)(A)(i) of the Act is amended by striking out "$1,400" and inserting in lieu thereof "$1,800". (2) The amendment made by paragraph (1) of this subsection shall be effective for academic year 1978-1979 and thereafter. (c) Divisions (i) and (ii) of section 411(a)(3)(A) of the Act are amended to read as follows: "(3)(A)(i) Not later than July 1 of each calendar year, the Commissioner shall publish in the Federal Register a schedule of expected family contributions for the academic year which begins after July 1 of the calendar year which succeeds such calendar year for various levels of family income, which, except as is otherwise provided in division (ii), together with any amendments thereto, shall become effective July 1 of the calendar year which succeeds such calendar year. During the thirty-day period following such publication the Commissioner shall provide interested parties with an opportunity to present their views and make recommendations with respect to such schedule. "(ii) The schedule of expected family contributions required by division (i) for each academic year shall be submitted to the President of the Senate and the Speaker of the House of Representatives not later than the time of its publication in the Federal Register. If

20 USC 1070a.

Effective date. 20 USC 1070a note. ,i Publication in Federal Register.

Submittal to Congress. Publication in Federal Register.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/624

 90 STAT. 2092

20 USC 1070a.

' Repeal. Supra.

Post, p. 2148.

PUBLIC LAW 94-482—OCT. 12, 1976 either the Senate or the House of Representatives adopts, prior to the first day of October next following the submission of said schedule as required by this division, a resolution of disapproval of such schedule, the Commissioner shall publish a new schedule of expected family contributions in the Federal Register not later than fifteen days after the adoption of such resolution of disapproval. Such new schedule shall take into consideration such recommendations as may be made in either House in connection with such resolution and shall become effective, together with any amendments thereto, with respect to grants to be made on or after the first day of July next following. The Commissioner shall publish together with such now schedule, a statement identifying the recommendations made in either House in connection with such resolution of disapproval and explaining his reasons for the new schedule.''. (d) Section 411(a)(3)(B) of the Act is amended— (1) by inserting at the end of division (ii) the following new subdivision: " ( VI) Any educational expenses of other dependent children in the family.". (2) by inserting immediately after " s t u d e n t) " in division (iii) the following: ", and including any amount paid under the Social Security Act to, or on account of, the student which would not be paid if he were not a student and one-half any amount paid the student under chapters 34 and 35 of title 38, United States Code,"; and (3) by striking out division ( i v). (e) Section 411(b) of the Act is amended by striking division (ii) of paragraph (3)(B) and redesignating subsequent divisions accordingly, and by redesignating paragraph (4) and any references thereto as paragraph (5) and inserting after paragraph (3) a new paragraph as follows: " (4)(A) If the funds available for making payments under this subpart exceed the amount necessary to make the payments required under this subpart to eligible students by 15 per centum or less, then all of excess funds shall remain available for making payments under this subpart during the next succeeding fiscal year. " (B) If the funds available for making payments under this subpart exceed the amount necessary to make the payments required under this subpart to eligible students by more than 15 per centum, then all of such funds shall remain available for making such payments but payments may be made under this division only with respect to entitlements for that fiscal year.". (f) Section 411(b)(3)(C) of the Act is repealed. (g) Section 4 1 1 (b)(5) of the Act (as redesignated by subsection (e)) is amended by striking out " J u l v 1, 1975" and inserting in lieu thereof "October 1, 1979". (h) Section 411 of the Act is amended by adding at the end thereof the following new subsection: " (d)(1) I n addition to payments made with respect to entitlements xmder this subpart, each institution of higher education shall be eligible to receive from the Commissioner the payment of $10 per academic year for each student enrolled in that institution who is receiving a basic grant under this subpart for that year. Payment received by an institution under this subsection shall i3e used first to carry out the provisions of section 493A of this Act and then for such additional administrative costs as the institution of higher education determines necessary.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/625

 PUBLIC LAW 94-482—OCT. 12, 1976 " (2) There are authorized to be appropriated such sums as may be necessary to carry out the provisi(ms of this subsection. If the sums appropriated for any fiscal year for making payments under this subsection are not sufficient to pay in full the amounts provided for in paragraph (1), then such amount will be ratably reduced. I n case additional funds become available for making payments for any fiscal year during which the preceding sentence has been applied, such reduced amounts sluill be increased on the same basis as they Avere reduced." (i) Section 411 of the Act is further amended by adding at the end thereof the following additional subsection: " (e)(1) The Connnissioner shall enter into agreements with not less than two nor more than five States for the processing by such States of all applications of their residents (through an instrumentality or agent selected by such State) for grants made under this subpart for the academic year beginning after July 1, 1977. on condition that any State grants which are subsidized in part by Federal funds, during the period for which State processing of basic education opportunity g r a n t applications is carried out by the State, will be available to eligible State residents for use at the majority of educational institutions outside that State which are eligible institutions under subpart 1 of this part. Xo later than ninety days after termination of the agreements, the Commissioner shall report to the Congress on the experience with multiple State processing, including its impact on the delivery of student aid to students, and including recommendations concerning whether the option of processing applications for grants under this subpart should be made available to all States having the capacity to do so. " (2) Any State entering into an agreement with the Commissioner shall— " (A) not be requiivd, without the State's consent, to perform services in excess of those required of any private agency or organization with whom the Commissioner has a contract to perform similar application processing, except svich additional services as may be necessary to produce processing services of a type and quality equivalent to those produced, through the same or other means; and " (B) be required to determine student eligibility for awards under this subpart solely on the basis of criteria set forth in this subpart and regulations promulgated by the Commissioner pursuant thereto. " (3) The Commissioner shall promulgate such regulations as may be necessary— " (A) to determine a fair per unit fee for application processing which, if the Commissioner has a contract with an agency or organization to perform similar application processing, shall be no more than the amount paid by the Commissioner per application for the same academic year to any such agency or organization; and " (B) to otherwise carry out the purposes of this subsection. " (4) Xothing contained in this section or other enactments of law shall be construed to prohibit any eligible State under subsection (c) of this section from— " (A) employing student application forms that solicit information required for both the determination of elioibility under this subpart and for the determination of eligibility under the postsecondary educational g r a n t programs of such State; and

9-194 O—78—pt. 2

40

90 STAT. 2093 Appropriation authorization.

20 USC 1070a. Agreement.

Report to Congress.

Regulations. Fees for processing applications.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/626

 90 STAT. 2094

PUBLIC LAW 94-482—OCT. 12, 1976 "(B) coordinating the eligibility announcements of State postsecondary educational grants and grants under this subpart. "(5) No State which enters into an agreement with the Commissioner may impose any fee or other charge upon a student for processing of the student's application for a grant under this subpart.". SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS

20 USC 1070b.

SEC. 122. (a) Section 413A(b)(1) of the Act is amended by striking out "July 1, 1975" and inserting in lieu thereof "October 1, 1979". 20 USC 1070b-2. (b) Section 413C(b)(4) of the Act is amended by striking out "464" and inserting in lieu thereof "494". STATE STUDENT INCENTIVE GRANTS

20 USC 1070c.

SEC. 123. (a) Section 415A(b) of the Act is amended by striking out "July 1, 1975" and inserting in lieu thereof "October 1, 1979", and by adding at the end thereof the following new paragraph: "(3) Sums appropriated pursuant to paragraphs (1) and (2) for any fiscal year shall remain available for payments to States for the award of student grants under this subpart until the end of the fiscal year succeeding the fiscal year for which such sums were appropriated.". 20 USC 1070C-2. (b) Section 415C(b) of the Act is amended by redesignating clauses (4) and (5) of such section, and all references thereto, as clauses (5) and (6), respectively, and by inserting after clause (3) thereof the following new clause: "(4) provides that, effective with respect to any academic year beginning on or after July 1, 1977, all nonprofit institutions of higher education in the State are eligible to participate in the State program;". (c)(1) Section 415A(b)(2) of the Act is amended by inserting before the period a comma and the following: "and to make bonus allotments to States pursuant to section 415E". 20 USC 1070C-1. (2) Section 4l5B(b) is amended by striking out the word "Sums" and inserting in lieu thereof the following: "Subject to the provisions of section 415E, sums". (3) Subpart 3 of part A of title IV of the Act is amended by insertp ing at the end thereof the following new section: "BONUS

20 USC 1070C-4.

ALLOTMENTS

FOR

STATE

STUDENT

INCENTIVE

GRANT PROGRAMS

"SEC. 415E. Whenever the sum appropriated pursuant to this subpart for any fiscal year is in excess of $75,000,000 the Commissioner shall allot, from 331^ per centum of such excess sums, to each State having an agreement under section 428(b) an amount which bears the same ratio to such sum as the number of students in attendance at institutions of higher education in such State bears to the total number of students in such attendance in all such States.". SPECIAL PROGRAMS FOR STUDENTS FROM DISADVANTAGED BACKGROUNDS

SEC. 124. (a) Section 4l7A(b) of the Act is amended by inserting before the period a comma and the following: "and $200,000,000 for each of the fiscal years ending prior to October 1, 1979". (b)(1) Section 417B(a) of the Act is amended by striking out "sec20 USC 1070(1-1. tion 417A(a)" and inserting in lieu thereof "subsection (b) of this section". 20 USC 1070d.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/627

 PUBLIC LAW 94-482—OCT. 12, 1976

90 STAT. 2095

(2) The matter preceding paragraph (1) of section 417B(b) of the Act is amended to read as follows: 20 USC 1070d-l. "(b) Services provided through grants and contracts under this subpart shall be specifically designed to assist in enabling youths from low-income families who have academic potential, but who may lack adequate secondary school preparation, who may be physically handicapped, or who may be disadvantaged because of severe rural isolation, to enter, continue, or resume programs of postsecondary education, including—". (3) Section 4l7B(b)(1)(A) of the Act is amended by inserting after the comma the following: "especially such youths who have delayed pursuing postsecondary educational training,". (4) The first sentence of section 417B (b) of the Act is amended by— (A) striking out "and" at the end of clause (3) of such sentence, (B) striking out the period at the end of clause (4) of such sentence and inserting in lieu thereof a semicolon and the word "and", and (C) adding at the end thereof the following new clause: "(5) a program of paying up to 90 per centum of the cost of establishing and operating or expanding service learning centers at institutions of higher education and other postsecondary educational institutions serving a substantial number of disadvantaged students which— "(A) will provide remedial and other special services for students who are enrolled or accepted for enrollment at that institution, and \ "(B) will serve, as a concentrated effort, to coordinate and supplement the ability of that institution to furnish such services to such students.". (5) Section 4l7B(b) of the Act is amended by adding at the end thereof the following new sentence: "Before making a grant or enter- Application, ing into a contract under clause (5) of the first sentence of this subsection the Commissioner may require any institution subject to such a contract or grant to submit an application containing or accompanied by such information, including the ability of that institution to pay the non-Federal share of the costs of the project to be assisted, as is essential to carry out the requirements of that clause.". (c) Section 417B of the Act is amended by adding at the end thereof the following new subsections:

"(e) In making grants or entering into contracts under clause (1) or (5) of subsection (b) of this section the Commissioner may permit students or youths from other than low-income families, not to exceed one-third of the total served, to benefit by the"projects to be assisted pursuant to that grant or contract. "(f)(1) The Commissioner is authorized to enter into contracts Contracts, with institutions of higher education and other appropriate public agencies and nonprofit private organizations to provide training for staff and leadership personnel who will specialize in improving the delivery of services to students assisted under this subpart. "(2) Financial assistance under this subsection may be used for (A) the operation of short-term training institutes designed to improve the skills of participants in such institutes, and (B) the development of inservice training programs for such personnel.". "(g) The Commissioner shall not make grants to programs authorized under clause (5) of subsection (b) of this section in any fiscal year in which the amount appropriated for carrying out this subpart is less than $70,331,000.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/628

 90 STAT. 2096

PUBLIC LAW 94-482—OCT. 12, 1976 "(h) It is the intention of the Congress to encourage, whenever feasible, the development of individualized programs for disadvantaged students assisted under this subpart.". EDUCATIONAL INFORMATION

PROGRAM

SEC. 125. Part A of title IV of the Act is amended by redesignating subpart 5, and all references thereto, as subpart 6, and by inserting immediately after subpart 4 the following new subpart: "Subpart 5—Educational Information "PROGRAM AUTHORIZATION Federal share. 20 USC 1070d-2.

Post p. 2097.

"Educational Information Center."

"SEC. 418A. (a) The Commissioner shall, in accordance with the provisions of this subpart, make grants to States to pay the Federal share of the cost of planning, establishing, and operating Educational Information Centers to provide educational information, guidance, counseling, and referral services for all individuals, including individuals residing in rural areas. " (b)(1) For the purpose of enabling the Commissioner to carry out this subpart, there are authorized to be appropriated $20,000,000 for fiscal year 1977, $30,000,000 for fiscal year 1978, and $40,000,000 for fiscal year 1979. "(2) The Commissioner shall allocate funds appropriated in each year under this subpart to each State submitting a plan approved under section 41 SB an amount which bears the same ratio to such funds as the population of such State bears to the population of all the States, except that for each fiscal year no State which submitted an approved plan shall receive from such funds less than $50,000 for that year. In making allocations under this paragraph, the Commissioner shall use the latest available actual data, including data on previous participation, which is satisfactory to him. "(c) The Federal share of the cost of planning, establishing, and operating Educational Information Centers for any fiscal year under this subpart shall be 66% per centum, and the non-Federal share may be in cash or in kind. "(d) For the purposes of this subpart, the term 'Educational Information Center' means an institution or agency, or combination of institutions or agencies, organized to provide services to a population in a geographical area no greater than that which will afford all persons within the area reasonable access to the services of the Center. Such services shall include— "(1) information and talent search services designed to seek out and encourage participation in full-time and part-time postsecondary education or training of persons who could benefit from such education or training if it were not for cultural or financial barriers, physical handicap, deficiencies in secondary education, or lack of information about available programs or financial assistance; "(2) information and referral services to persons within the area served by the Center, including such services with regard to— "(A) postsecondary education and training programs in the region and procedures and requirements for applying and gaining acceptance to such programs; "(B) available Federal, State, and other financial assistance, including information on procedures to be followed in applying for such assistance;

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/629

 PUBLIC LAW 94-482—OCT. 12, 1976 "(C) available assistance for job placement or gaining admission to postsecondary education institutions including, but not limited to, such institutions offering professional, occupational, technical, vocational, work-study, cooperative education, or other education programs designed to prepare persons for careers, or for retraining, continuing education, or upgrading of skills; "(D) competency-based learning opportunities, including opportunities for testing of existing competencies for the purpose of certification, awarding of credit, or advance placement in postsecondary education programs; " (E) guidance and counseling services designed to assist persons from the area served by the Center to identify postsecondary education or training opportunities, including part-time opportunities for individuals who are employed, appropriate to their needs and in relationship to each individual's career plans; and " (F) remedial or tutorial services designed to prepare persons for postsecondary education opportunities or training programs, including such services provided to persons enrolled in postsecondary education institutions within the area served by the Center. Services may be provided by a Center either directly or by way of contract or other agreement with agencies and institutions within the area to be served by the Center. "(e) Nothing in this subpart shall be construed to affect funds allocated to the establishment and operation of Educational Opportunity Centers for the disadvantaged pursuant to section 417 (B)(b)(4) of this part.

90 STAT. 2097

20 USC 1070d-l.

"ADMINISTRATION OF STATE PROGHAMS

"SEC. 418B. (a) Each State receiving a grant under this part is authorized in accordance with its State plan submitted pursuant to subsection (b) of this section, to make grants to, and contracts with, institutions of higher education, including institutions with vocational and career education programs, and combinations of such institutions, public and private agencies and organizations, and local education agencies in combination with any institution of higher education, for planning, establishing, and operating Educational Information Outers within the State. "(b) Any State desiring to receive a grant under this subpart shall submit for the approval of the Commissioner a State plan, which shall include— " (1) a comprehensive strategy for establishment or expansion of Educational Information Centers, designed to achieve the goal, within a reasonable period of time, of making available within reasonable distance to all residents of the State the services of an Educational Information Center; " (2) assurances concerning the source and availability of State, local, and private funds to meet the non-Federal share of the cost of the State plan required by section 418A(c); and

Grants and contracts, authorization. 20 USC 1070d-3.

State plan, submittal.

Ante, p. 2096.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/630

 9 0 STAT. 2098

PUBLIC LAW 94-482—OCT. 12, 1976 " (3) such other provisions as are essential to carry out the provisions of this subpart.". V E T E R A N S ' COST-Or-INSTRUCTION PAYMENTS

20 USC 1070e-l.

SEC. 126. (a)(1) Section 4 2 0 (a)(1) of the Act is amended by striking out " June 30, 1975" and inserting in lieu thereof "September 30, 1979". (2) Section 420(a) of the Act is amended by adding at the end thereof the following: " (3) During the period beginning July 1, 1976, and ending September 30, 1977, each institution which has qualified for payment under this section for the preceding year shall be entitled during such period, notwithstanding paragraph (1), to a payment under this section, if the number of persons referred to in such paragraph (1), equals whichever is the lesser of (A) at least the number of such persons who were in attendance at such institution during the preceding academic year less the number of such persons whose eligibility for educational assistance under chapter 34 of title 38, United States 38 USC 1651 et Code, expired on May 31, 1976, by virtue of section 1662(c) of such title, or (B) at least the minimum number of such persons necessary seq. to establish eligibility to entitlement under paragraph (1) during 38 USC 1662. the preceding academic year less the number of such persons whose eligibility for educational assistance under chapter 34 of title 38, United States Code, expired on May 31, 1976, by virtue of section 1662(c) of such title.". (b) Section 420(c)(1)(B) (iii) of the Act is amended by inserting " ( w i t h special emphasis on educationally disadvantaged veterans) " after "outreach", and by inserting " ( w i t h special emphasis on the v^eteran-student services program under section 1685 of such title 3 8) " after "programs". (c) Section 420 of the Act is amended by adding at the end thereof the following new subsections: " (f) The Commissioner, in carrying out the provisions of this section, shall seek to assure the coordination of programs assisted under this section with programs carried out by the Veterans' Administration pursuant to title 38 of the United States Code, and the Administrator of Veterans' Affairs shall provide all assistance, technical consultation, and information otherwise authorized by law as necessary to promote the maximum effectiveness of the activities and programs assisted under this section. " (g) The program provided for in this section shall be administered Administration. by an identifiable administrative unit in the Office of Education.". Report to (d) Not later than ninety days after the enactment of this Act, the Commissioner shall prepare and submit to the Congress a report conCongress. 20 USC 1070e-l taining a summary of the activities and programs (including the number and characteristics of veterans served) at institutions of higher note. education receiving assistance under section 420 of the H i g h e r Education Act of 1965 (relating to veterans' cost-of-instruction payments) and a description of the steps taken (and the results thereof) to carry out his responsibility under subsection (c)(1) of that section to monitor and determine the adequacy of efforts by such institutions.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/631

 PUBLIC LAW 94-482—OCT. 12, 1976

90 STAT. 2099

FEDERAL AND STATE INSURED LOAN PROGRAMS

SEC. 127. (a) Part B of title IV of the Act is amended to read as follows: "PART B—FEDERAL, STATE, AND PRIVATE PROGRAMS OF LOW-INTEREST INSURED LOANS TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION "STATEMENT OF PURPOSE AND APPROPRIATIONS AUTHORIZED

"SEC. 421. (a) The purpose of this part is to enable the Commis- 20 USC 1071. sioner (1) to encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions (as defined in section 435), (2) to provide a Federal program of student loan insurance for students or lenders who do not have reasonable access to a State or private nonprofit program of student loan insurance covered by an agreement under section 428(b), (3) to pay a portion of the interest on loans to qualified students which are made by a State under a direct loan program meeting the requirements of section 428(a)(1)(B), or which are insured under this part or under a program of a State or of a nonprofit private institution or organization which meets the requirements of section 428(c)(1)(A), and (4) to guarantee a portion of each loan insured under a program of a State or of a nonprofit private institution or organization which meets the requirements of section 428(a)(1)(C). "(b) For the purpose of carrying out this part— "(1) there are authorized to be appropriated to the student loan insurance fund (established by section 431)(A) the sum of $1,000,000, and (B) such further sums, if any, as may become necessary for the adequacy of the student loan insurance fund, "(2) there are authorized to be appropriated, for payments under section 428 with respect to interest on student loans and for payments under section 437, such sums for the fiscal year ending June 30, 1966, and succeeding fiscal years, as may be required therefor, "(3) there is authorized to be appropriated the sum of $17,500,000 for making advances pursuant to section 422 for the reserve funds of State and nonprofit private student loan insurance programs. "(4) there are authorized to be appropriated (A) the sum of $12,500,000 for making advances after June 30, 1968, pursuant to sections 422(a) and (b), and (B) such sums as may be necessary for making advances pursuant to section 422(c), for the reserve funds of State and nonprofit private student loan insurance programs, and "(5) there are authorized to be appropriated such sums as may be necessary for the purpose of paying an administrative cost allowance in accordance with section 428(f) to State and nonprofit institutions and organizations with which the Commissioner has an agreement under section 428(b). Sums appropriated under clauses (1), (2), (4), and (5) of this subsection shall remain available until expended, and sums appropriated under clause (3) of this subsection shall remain available for advances under section 422 until the close of the fiscal year ending June 30, 1968.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/632

 90 STAT. 2100

Report to Congress.

PUBLIC LAW 94-482—OCT. 12, 1976 " (c) For purposes of carrying out this part — " (1) the Commissioner shall develop and execute a plan designed to encourage the establishment of student loan insurance program by each State which does not have such a program covered by an agreement pursuant to section 428(b); " (2) the Commissioner shall make a report to the Congress within 180 days after the enactment of the Education Amendments of 1976, containing a description of the plan developed according to paragraph (1) accompained by a timetable for the execution of such p l a n; and " (3) the Commissioner shall make a report to the Congress before June 30, 1977, which shall include^— " (A) a description of the activities the Commissioner and his designees have undertaken pursuant to paragraph (1), " (B) a description of such State's plans to establish a program meeting the requirements of section 4 2 8 (b), and " (C) the Commissioner's recommendations to the Congress as to what changes in law, or policy would encourage the establishment of such a program in all States without such progr-ams. ''ADVANCES FOR RESERVE FUNDS OF STATE AND NONPROFIT PRIVATE LOAN INSURANCE PRtXJRAMS

20 USC 1072.

"Unencumbered non-Federal portion."

" SEC. 422. (a)(1) From the sums appropriated pursuant to clauses (3) and (4)(A) of section 4 2 1 (b), the Commissioner is authorized to make advances to any State with which he has made an agreement pursuant to section 428(b) for the purpose of helping to establish or strengthen the reser^•e fund of the student loan insurance program covered by that agreement. If for any fiscal year a State does not have a student loan insurance program covered by an agreement made pursuant to section 4 2 8 (b), and the Commissioner determines after consultation with the chief executive officer of that State that there is no reasonable likelihood that the State will have such a student loan insurance program for such year, the Commissioner may make advances for such year for the same purpose to one or more nonprofit private institutions or organizations with which he has made an agreement pursuant to section 428(b) in order to enable students in the State to participate in a program of student loan insurance covered by such an agreement. The Commissioner may make advances under this subsection both to a State program (with which he has such an agreement) and to one or more nonprofit private institutions or organizations (with which he has such an agreement) in that State if he determines that such advances are necessary in order that students in each eligible institution have access through such institution to a student loan insurance program which meets the requirement of section 428(b)(1). " (2) No advance shall me made after June 30, 1968, unless matched 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 portion' means the amount (determined as of the time immediately preceding 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 30, 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

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/633

 PUBLIC LAW 94-482—OCT. 12, 1976 to State law or regulation, or by agreement with lenders, as a reserve against the insurance of outstanding loans. " (3) Advances pursuant to this subsection shall be upon such terms and conditions (including conditions relating to the time or times of payment) consistent with the requirements of section 428(b) as the Commissioner determines will best carry out the purposes of this section. Advances made by the Commissioner under this subsection shall be repaid within such period as the Commissioner may deem to be appropriate in each case in the light of the maturity and solvency of the reserve fund for which the advance was made. "(b)(1) The total of the advances to any State prior to July 1, 1968, pursuant to subsection (a) may not exceed an amount which bears the same ratio to 21/2 per centum of $700,000,000 as the population of that State aged eighteen to twenty-two, inclusive, bears to the total population of all the States aged eighteen to twenty-two inclusive. The amount available, however, for advances to any State for each fiscal year ending prior to July 1, 1968, shall not be less than $25,000, and any additional funds needed to meet this requirement shall be derived by proportionately reducing (but not below $25,000 per year) the amount available for advances to each of the remaining States. Advances to nonprofit private institutions and organizations prior to July 1, 1968, pursuant to subsection (a) may be in such amounts as the Commissioner determines will best achieve the purposes for which they are made, except that the sum of (1) advances to such institutions and organizations for the. benefit of students in any State plus (2) the amounts advanced to such State, may not exceed the maximum amount which may be advanced to that State pursuant to the first two sentences of this subsection. "(2) The total of the advances from the sums appropriated pursuant to clause (4)(A) of section 421(b) to nonprofit private institu^ tions 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 additional 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. "(c)(1) From sums appropriated pursuant to section 421(b)(4) (B), the Commissioner shall advance to each State which has an agreement with the Commissioner under section 428(c) with respect to a student loan insurance program, an amount determined in accordance with paragraph (2) of this subsection to be used for the purpose of making payments under the State's insurance obligations under such program. "(2)(A) Except as provided in subparagraph (B), the amount to be advanced to each such State shall be equal to the greater of (i) $50,000, or (ii) 10 per centum of the principal amount insured by such agency on those loans on which the first payment of principal became due during the fiscal year immediately preceding the fiscal year in which the advance is made.

90 STAT. 2101

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/634

 9 0 STAT. 2102

^

^

N

'

J

'

' ,'

PUBLIC LAW 94-482—OCT. 12, 1976

" (B) The amount of any advance determined according to subparagraph (A) of this paragraph shall be reduced by (i) the amount of any advance or advances made to such State pursuant to this subsection at an earlier date, and (ii) the amount of the unspent balance of the advances made to a State pursuant to subsection (a). " (C) For purposes of subparagraph (B) the unspent balance of the advances made to a State pursuant to subsection (a) shall be that portion of the balance of the State's reserve fund (remaining at the time of the State's first request for an advance pursuant to this subsection) which bears the same ratio to such balance as the Federal advances made and not returned by such State, pursuant to subsection (a), bears to the total of all past contributions to such reserve fund from all sources (other than interest on investment of any portion of the reserve fund) contributed since the date such State executed an agreement pursuant to section 4 2 8 (b). " (3) The earnings, if any, on any investments of advances received pursuant to this subsection nmst be used for making payments under the State's insurance obligations. " (4)(A) No repayment of any advances made pursuant to this subsection shall be required until such time as the sum of the advances under this subsection exceeds 20 per centum of the State's outstanding insurance obligation determined in accordance with subparagraph (B) of this paragraph. " (B) For purposes of this paragraph, a State's outstanding insurance obligation shall be determined by subtracting from the total principal amount of loans insured by the State since it entered into an agreement pursuant to section 4 2 8 (b), the total principal amount of loans insured by such State which have been fully repaid by the borrower, the State itself, or the Commissioner, and loans which have been canceled. " (C) A t such time as advances pursuant to this subsection reach the level indicated in subparagraph (A) of this paragra{)h, the amount of any excess shall be paid over to the Commissioner in a lump sum at the beginning of each fiscal year for deposit in the fund established by section 431. " (5) Advances pursuant to this subsection shall be made to a State— " (A) in the case of a State which is actively carrying on a program under an agreement pursuant to section 428(b) which was entered into before the effective date of this subsection, upon such date as such State may request, but not before October 1, 1977, and on the same day of each of the two succeeding calendar years after the date so requested; and " (B) in the case of a State which enters into an agreement pursuant to section 428(b) on or after the effective date of this subsection, upon such date as such State may request, but not before October 1, 1977, and on the same day of each of the four succeeding calendar years after the date so requested of the advance. " (6)(A) If for any fiscal year a State does not have a student loan insurance program covered by an agreement made pursuant to section 428(b), and the Commissioner determines after consultation with the chief executive officer of that State that there is no reasonable likelihood that the State will have such a student loan insurance program for such year, the Commissioner may make advances pursuant to this subsection for such year for the same purpose to one or more nonprofit private institutions or organizations with which he has made an agreement pursuant to subsection (c), as well as subsection (b), of section

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/635

 PUBLIC LAW 94-482—OCT. 12, 1976 428 and subparagraph (B) of this paragraph in order to enable students in that State to participate in a program of student loan insurance covered by such agreements. "(B) The Commissioner may enter into an agreement with a private nonprofit institution or organization for purposes of this paragraph under which such institution or organization— "(i) agrees to establish within such State at least one office with sufficient staff to handle written and telephone inquiries from students, eligible lenders, and other persons in the State, to encourage maximum commercial lender participation within the State, and to conduct periodic visits to at least the major eligible lenders within the State, "(ii) agrees that its insurance will not be denied any student because of his choice of eligible institutions or the student's lack of need, and "(iii) certifies that it is neither an institution, nor has any substantial affiliation with an institution. EFFECTS o r

90 STAT. 2103

Agreement with private nonprofit institution or organization.

ADEQUATE NON-FEDERAL PROGRAMS

"SEC. 423. (a) Except as provided in subsections (b) and (c), the 20 USC 1073. Commissioner shall not issue certificates of insurance under section 429 to lenders in a State if he determines that every eligible institution has reasonable access in that State to a State or private nonprofit student loan insurance program which is covered by an agreement under section 428(b), "(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, such lender will not have access to any single State or nonprofit private loan insurance program which will insure substantially all of the loans such lender intends to make to such student borrowers. "(c) The Commissioner shall not deny, becaiise of any provision of this section, a certificate of insurance under section 429 to any eligible lender which is an eligible institution if such lender has previously executed an agreement with the Commissioner pursuant to section 433 of this part, unless the Commissioner determines, based upon studies and surveys satisfactory to him, that access to a loan by all eligible students who make an active and diligent effort to obtain a loan under this part will be otherwise available. In order to carry out the provisions of the preceding sentence the Commissioner shall periodically assess the availability of loans to eligible students through studies and surveys undertaken by him and through review of properly conducted studies and surveys made available to him. SCOPE A N D D U R A T I O N OF FEDERAL L O A N INSURANCE PROGRAM

"SEC. 424. (a) The total principal amount of new loans made and 20 USC 1074. installments paid pursuant to lines of credit (as defined in section 435) to students covered by Federal loan insurance under this part

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/636

 90 STAT. 2104

PUBLIC LAW 94-482—OCT. 12, 1976 shall not exceed $1,400,000,000 for the fiscal year ending June 30, 1972, $1,600,000,000 for the fiscal year ending June 30, 1973, $1,800,000,000 for the fiscal year ending June 30, 1974, $2,000,000,000 for each of the fiscal years ending June 30, 1975, and 1976, and $2,000,000,000 for the period from July 1, 1976, to September 30, 1976, and for each of the succeeding fiscal years ending prior to October 1, 1981, Thereafter, Federal loan insurance pursuant to this part may be granted only for loans made (or for loan installments paid pursuant to lines of credit) to enable students, who have obtained prior loans insured under this part, to continue or complete their educational program; but no insurance may be granted for any loan made or installment paid after September 30, 1985. "(b) The Commissioner may, if he finds it necessary to do so in order to assure an equitable distribution of the benefits of this part, assign, within the maximum amounts specified in subsection (a), Federal loan insurance quotas applicable to eligible lenders, or to States or areas, and may from time to time reassign unused portions of these quotas.

u,

.f;

20 USC 1075.

Regulations.

' ''•-•'

"LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND ON FEDERAL LOAN INSURANCE

"SEC. 425. (a)(1) The total of loans made to a student in any academic year or its equivalent (as determined by the Commissioner) which may be covered by Federal loan insurance under this part may not exceed $2,500 in the case of a student who has not successfully completed a program of undergraduate education, or $5,000 in the case of a graduate or professional student (as defined in regulations of the Commissioner), except— " (A) that in the case of a loan to a student who is or will be in his first year of a program of undergraduate education, and who has not previously enrolled in such a program which is made by an eligible lender as described in section 435(g)(1)(D) or which is made or originated (as defined in section 433(b)) by an eligible institution, the loan may not exceed the lesser of $2,500 or 50 per centum of the estimated cost of attendance (calculated in accordance with the provisions of section 428(a)(2)(C)(i)), "(B) that in the case of a loan made or originated (as defined in section 433(b)) by an eligible institution which is made to a student for his first academic year of postsecondary education, the loan may exceed $1,500 only if it is to be disbursed in two or more installments none of which exceeds one-half of the loan, with the interval between the first and second of such installments being not less than one-third of the period of enrollment for which the student received the loan, and "(C) in cases where the Commissioner determines, pursuant to regulations prescribed by him, that a higher amount is warranted in order to carry out the purposes of this part with respect to students engaged in specialized training requiring exceptionally high cost of education. The annual insurable limit per student shall not be deemed to be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any year in excess of the annual limit. "(2) The aggregate insured unpaid principal amount for all such insured loans made to any student shall not at any time exceed $7,500, in the case of any student who has not successfully completed a program of undergraduate education, and $15,000 in the case of any

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/637

 PUBLIC LAW 94-482—OCT. 12, 1976

90 STAT. 2105

graduate or professional student (as defined by regulations of the Commissioner and including any loans which are insured by the Commissioner under this part, or by a State or nonprofit institution or organization with which the Commissioner has an agreement under section 428(b), made to such person before he became a graduate or professional student). " (b)(1)(A) Except as provided in subparagraph (B), the insurance liability on any loan insured by the Commissioner under this part shall be 100 per centum of the unpaid balance of the principal amount of the loan plus interest, except that— "(i) if, for any fiscal year, the total amount of payments under section 430 by the Commissioner to any eligible lender as described in section 435(g)(1)(D) exceeds 5 per centum of the sum of the loans made by such lender which are insured by the Commissioner and which were in repayment at the end of the preceding fiscal year, the insurance liability under this subsection for that portion of such excess which represents loans insured after the applicable date with respect to such loans, as determined under subparagraph (C), shall be equal to 90 per centum of the amount of such portion; "(ii) if, for any fiscal year, the total amount of such payments to such a lender exceeds 9 per centum of such sum, the insurance liability under this subsection for that portion of such excess which represents loans insured after the applicable date with respect to such loans, as determined under subparagraph (c), shall be equal to 80 per centum of the amount of such portion. "(B) Notwithstanding subparagraph (A), the provisions of clauses (i) and (ii) shall not apply to an eligible lender as described in section 435(g)(1)(D) for the fiscal year in which such lender begins to carry on a loan program insured by the Commissioner, or for any of the four succeeding fiscal years. "(C) The applicable date with respect to a loan made by an eligible lender as described in section 435(g)(1)(D) shall be— "(i) the 90th day after the adjournment of the next regular session of the appropriate State legislature which convenes after the date of enactment of the Education Amendments of 1976, or "(ii) if the primary source of lending capital for such lender is derived from the sale of bonds, and the constitution of the appropriate State prohibits a pledge of such State's credit as security against such bonds, the day which is one year after such 90th day. "(2) For the purposes of this subsection, the sum of the loans made by a lender which are insured by the Commissioner and which are in repayment shall be the original principal amount of loans made by such lender which are insured by the Commissioner reduced by (A) the amount the Commissioner has been required to pay to discharge his insurance obligations under this part, (B) the original principal amount of loans insured by the Commissioner which have been fully repaid, (C) the original principal amount insured on those loans for which payment of first installment of principal has not become due pursuant to section 427(a)(2)(B) or such first installment need not be paid pursuant to section 427(a)(2)(C), and (D) the original principal amount of loans repaid by the Commissioner under section 437. "(3) For the purposes of this subsection, payments by the Commissioner under section 430 to an assignee of the lender with respect to a loan shall be deemed payments made to such lender. " (4) The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under the provisions of section 430 or 437 of this part."

,.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/638

 90 STAT. 2106

PUBLIC LAW 94-482—OCT. 12, 1976 ii

20 USC 1076.

SOURCES OF r U N D S

"SEC. 426. Loans made by eligible lenders in accordance with this part shall be insurable by the Commissioner whether made from funds fully owned by the lender or from funds held by the lender in a trust or similar capacity and available for such loans. "ELIGIBILITY or STUDENT BORROWERS AND TERMS or FEDERALLY INSURED STUDENT LOANS

20 USC 1077.

' -,

,

"SEC. 427. (a) A loan by an eligible lender shall be insurable by the Commissioner under the provisions of this part only if— "(1) made to a student who (A) has been accepted for enrollment at an eligible institution or, in the case of a student already attending such institution, is in good standing there as determined by the institution, (B) is carrying at least one-half of the normal fulltime workload as determined by the institution, and (C) has agreed to notify promptly the holder of the loan concerning any change of address; and "(2) evidenced by a note or other written agreement which— "(A) is made without security and without endorsement, except that if the borrower is a minor and such note or other written agreement executed by him would not, under the applicable law, create a binding obligation, endorsement may be required, "(B) provides for repayment (except as provided in subsection (c)) of the principal amount of the loan in installments over a period of not less than five years (unless sooner repaid or unless the student, during the nine- to twelvemonth period preceding the start of the repayment period, specifically requests that repayment be made over a shorter period) nor more than ten years beginning not earlier than nine months nor later than one year after the date on which the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution, except— "(i) as provided in clause (C) below, " (ii) that the period of the loan may not exceed fifteen years from the execution of the note or written agreement evidencing it, "(iii) that the note or other written instrument may contain such provisions relating to repayment in the event of default in the payment of interest or in the payment of the cost of insurance premiums, or other default by the borrower, as may be authorized by regulations of the Commissioner in effect at the time the loan is made, and " (iv) that the lender and the student, after the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution, may agree to a repayment schedule which begins earlier, or is of shorter duration, than required by this subparagraph, except that in the event a student has requested and obtained a repayment period of less than five years, he may at any time prior to the total repayment of the loan, have the repayment period extended so that the total repayment period is not less than five years,

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/639

 PUBLIC LAW 94-482—OCT. 12, 1976

90 STAT. 2107

"(C) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid, during any period (i) during which the borrower is pursuing a full-time course of study at an 'eligible institution', or is pursuing a course of study pursuant to a graduate fellowship program approved by the Commissioner, (ii) not in excess of three years during which the borrower is a member of the Armed Forces of the United States, (iii) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, (iv) not in excess of three years during which the borrower is in service as a full-time volunteer under the Domestic Volunteer Service Act of 1973, or (v) during a 42 USC 4951 single period, not in excess of twelve months, at the request °°*®of the borrower, during which the borrower is seeking and unable to find full-time employment, and any such period shall not be included in determining the ten-year period or the fifteen-year period provided in clause (B) above, "(D) provides for interest on the unpaid principal balance of the loan at a yearly rate, not exceeding the applicable maximum rate prescribed and defined by the Secretary (within the limits set forth in subsection (b)) on a national, regional, or other appropriate basis, which interest shall be payable in installments over the period of the loan except that, if provided in the note or other written agreement, any interest payable by the student may be deferred until not later than the date upon which repayment of the first installment of principal falls due, in which case interest that has so accrued during that period may be added on that date to the principal, " (E) provides that the lender will not collect or attempt to collect from the borrower any portion of the interest on the note which is payable by the Commissioner under this part, and that the lender will enter into such agreements with the Commissioner as may be necessary for the purposes of section 437. " (F) entitles the student borrower to accelerate without penalty repayment of the whole or any part of the loan, "(G) provides that, in the case of each loan insured by the program, the eligible institution attended by the borrower at the time of the loan will be notified of such insurance and the name of the lender making the loan, and such notification will be made either by (i) the prompt transmittal ,; of such information to the institution by the insurer or the lender, or (ii) a requirement of the insurer, as a condition of its insurance, that the lender shall transmit any checks for the proceeds of such loan directly to the eligible institution for delivery to the borrower; " (H) the funds borrowed by a student are disbursed by check payable to the order and requiring the endorsement of such student, and " (I) contains such other terms and conditions, consistent with the provisions of this part and with the regulations issued by the Commissioner pursuant to this part, as may be agreed upon by the parties to such loan, including, if agreed upon, a provision requiring the borrower to pay the lender, in addition to principal and interest, amounts equal to the insurance premiums payable by the lender to the Commissioner with respect to such loan.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/640

 90 STAT. 2108

UMf,)

PUBLIC LAW 94-482—OCT. 12, 1976 "(b) No maximum rate of interest prescribed and defined by the Secretary for the purposes of clause (2)(D) of subsection (a) may exceed 7 per centum per annum on the unpaid principal balance of the loan. "(c) 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 insured under this part shall not unless the borrower and the lender otherwise agree, be less than $360 or the balance of all of such loans (together with interest thereon), whichever amount is less, except that in the case of a husband and wife, both of whom have such loans outstanding, the total of the combined payments for such a couple during any year shall not be less than $360 or the balance of all such loans, whichever is less. uFEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS

20 USC 1078.

Interest payment,

"SEC. 428. (a)(1) Each student who has received a loan for study at an eligible institution— "(A) which is insured by the Commissioner under this part; " (B) which was made under a State student loan program (meeting criteria prescribed by the Commissioner), and which was contracted for, and paid to the student, within the period specified by paragraph (5); or "(C) which is insured under a program of a State or of a nonprofit private institution or organization which was contracted for, and paid to the student, within the period specified in paragraph (5), and which— " (i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program ! which meets the requirements of subparagraph (E) of subsection (b)(1) and provides that repayment of such loan shall be in installments beginning not earlier than sixty days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) at an eligible institution, or "(ii) in the case of a loan insured after June 30, 1967, is insured under a program covered by an agreement made pursuant to subsection (b), shall be entitled to have paid on his behalf and for his account to the holder of the loan a portion of the interest on such loan under circumstances described in paragraph (2). "(2)(A) Each student qualifying for a portion of an interest payment under paragraph (1) shall— "(i) have provided to the lender a statement from the eligible institution, at which the student has been accepted for enrollment, or at which he is in attendance in good standing (as determined by such institution), which— " (I) sets forth such student's estimated costs of attendance and " ( II) sets forth such student's estimated financial assistance; and "(ii) meet the requirements of subparagraph (B). "(B) For the purposes of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest payment under paragraph (1) if such student's adjusted family income at the time of execution of the note or written agreement evidencing such loan— " (i) is less than $25,000; or

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/641

 PUBLIC LAW 94-482—OCT. 12, 1976

90 STAT. 2109

"(ii) is equal to or greater than $25,000 and the eligible institution has provided the lender with a statement evidencing a determination of need and recommending a loan in the amount of such need. "(C) For the purposes of paragraph (1) and this paragraph— Definitions. "(i) a student's estimated cost of attendance means, for the period for which the loan is sought, the tuition and fees applicable to such student together with the institution's estimate of other expenses reasonably related to attendance at such institution, including, but not limited to, the cost of room and board, reasonable commuting costs, and costs for books; "(ii) a student's estimated financial assistance means, for the period for which the loan is sought, the amount of assistance such student will receive under parts A, C, and E of this title, plus other scholarship, grant, or loan assistance; "(iii) the term 'eligible institution' when used with respect to a student is the eligible institution at which the student has been accepted for enrollment or, in the case of a student who is in attendance at such an institution, at which the student is in good standing (as determined by such institution); "(iv) the determination of need and the amount of a loan recommended by an eligible institution under subparagraph (B) (ii) with respect to a student shall be determined by subtracting from the estimated cost of attendance at such institution the total of the expected family contribution with respect to such student (as determined by means other than one formidated by the Commissioner under subpart 1 of part A of this title) plus any other resources or student financial assistance reasonably available to such student. "(D) For the purposes of this paragraph, the adjusted family income of a student shall be determined pursuant to regulations of the Commissioner in effect at the time of the execution of the note or written agreement evidencing the loan. Such regulations shall provide for taking into account such factors, including family size, as the Commissioner deems appropriate. In the absence of fraud by the lender, such determination of the need of a student under this paragraph shall be final insofar as it concerns the obligation of the Commissioner to pay the holder of a loan a portion of the interest on the loan. "(3)(A) Except as provided in paragraph (8), the portion of the in*-erest on a loan which a student is entitled to have paid on his behalf and for his account to the holder of the loan pursuant to paragraph (1) of this subsection shall be equal to the total amount of the interest on the unpaid principal amount of the loan which accrues prior to the beginning of the repayment period of the loan, 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 (b)(1)(M) of this section or in section 427(a)(2)(C); but, except as provided in paragraph (8) of this subsection, such portion of the interest on a loan shall not exceed, for any period, the amount of the interest on that loan which is payable l3y the student after taking into consideration the amount of any interest on that loan which the student is entitled to have paid on his behalf for that period under any State or private loan insurance program. The holder of a loan with respect to which payments are required to be made under this section shall be deemed to have a contractual right, as against the United States, to receive from the Commissioner the portion of interest which has been so determined. The Commissioner shall pay this portion of the interest to the holder of the loan on behalf of and for

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/642

 90 STAT. 2110

PUBLIC LAW 94-482—OCT. 12, 1976

the account of the borrower at such times as may be specified in regulations in force when the applicable agreement entered into pursuant to subsection (b) was made, or, if the loan was made by a State or is insured under a program which is not covered by such an agreement, .5,.., at such times as may be specified in regulations in force at the time the loan was paid to the student. "(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 inake 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 20 USC 1001 enactment of the Higher Education Amendments of 1968 and ending note. 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. "(4) Each holder of a loan with respect to which payments of interest are required to be made by the Commissioner shall submit to the Commissioner, at such time or times and in such manner as he may prescribe, statements containing such information as may be required by or pursuant to regulation for the purpose of enabling the Commissioner to determine the amount of the payment which he must make with respect to that loan. "(5) The period referred to in subparagraphs (B) and (C) of paragraph (1) of this subsection shall begin on the date of enactment of this Act and end at the close of September 30, 1981, 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, ruch period shall end at the close of September 30, 1985. "(6) No payment may be made under this section with respect to the interest on a loan made from a student loan fund established under title II of the National Defense PMucation Act of 1958 or part E of 20 USC 401 note, this title. 20 USC 1088. "(7) Nothing in this or any other Act shall be construed to prohibit or require, unless otherwise specifically provided by law, a lender to evaluate the total financial situation of a student making application for a loan under this part, or to counsel a student with respect to any such loan, or to make a decision based on such evaluation and counseling with respect to the dollar amount of any such loan. "(8)(A) In the case of any eligible lender (other than an eligible institution or an agency or'instrumentality of a State), which is approved by the Commissioner pursuant to subparagraph (B) of this paragraph for the purpose of authorizing multiple disbursements and which enters into a binding agreement with a student to make a loan— "(i) for which the student is entitled to have a portion of the interest paid on his behalf under this section, and "(ii) the proceeds of which loan are to be paid to the student in multiple disbursements over the period of enrollment for which the loan is made, but not to exceed twelve months,

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/643

 PUBLIC LAW 94-482—OCT. 12, 1976 the amount of the interest payment and the amount of any special allowance payment to be paid under section 438 shall be determined as if the entire amount to be made available for that period of enrollment had been disbursed on the date on which the first installment thereof was disbursed, and any increase in the rate of interest on the loan attributable to such multiple disbursements shall not be deemed to violate any provision of this part relating to the maximum rate of interest on such loan. The provisions of this paragraph shall apply only in the case of loans paid in multiple disbursements, in accordance with regulations of the Commissioner, based on the need of the student for the proceeds of such loan over the course of the academic year. "(B) The Commissioner may approve an eligible lender for the purposes of this paragraph if he determines— "(i) that such lender is making or will be making a substantial volume of loans on which an interest subsidy is payable under this section, and "(ii) that such lender has sufficient experience and administrative capability in processing such loans to enable the lender to make such multiple disbursements in accordance with regulations issued by the Commissioner under this subparagraph. " (9) With respect to any loan for which a portion of the interest is payable under this section, in the case of a student attending an eligible institution which is located in other than a State, the determinations to be made (except determinations of good standing) and the statement to be provided by such institution under paragraph (2)(A)(i) and (2)(B) (ii) of this subsection shall be made and provided by (A) the Commissioner in the case of a loan described by paragraph (1)(A), (B) the State in the case of a loan described by paragraph (1)(B), or (C) the State or a nonprofit private institution or organization as the case may be, in the case of a loan described by paragraph (1)(C). " (b)(1) Any State or any nonprofit private institution or organization may enter into an agreement with the Commissioner for the purpose of entitling students who receive loans which are insured under a student loan insurance program of that State, institution, or organization to have made on their behalf the payments provided for in subsection (a) if the Commissioner determines that the student loan insurance program— "(A) authorizes the insurance of not less than $1,000 nor more than $2,500 in the case of a student who has not successfully completed a program of undergraduate education, or $5,000 in the case of a graduate or professional student (as defined in regulations of the Commissioner), except— "(i) that the program may not authorize the insurance of a loan which is made by an eligible lender as described in section 435(g)(1)(D) or which is made or originated (as defined in section 433(b)) by an eligible institution to a student who has not successfully completed a program of undergraduate education in an amount in excess of $2,500 or 50 per centum of the estimated cost of attendance (calculated in accordance with section 428(a)(2)(C)(i)), " (ii) that the program may not authorize the insurance of a loan in excess of $1,500 for an academic year which is made or originated (as defined in section 433(b)) by an eligible institution, and is made to a student for his first academic year of postsecondary education, unless the loan is to be disbursed in two or more installments, none of which exceeds

90 STAT. 2111

Eligible lender.

Agreement with Commissioner.

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/644

 90 STAT. 2112

PUBLIC LAW 94-482—OCT. 12, 1976 one-half of the loan, with the interval between the first and second of such installments being not less than one-third of the period of enrollment for which the student received the loan, and "(iii) in cases where the Commissioner determines, pursuant to regulations prescribed by him, that a higher amount is warranted in order to carry out the purposes of this part with respect to students engaged in specialized training requiring exceptionally high costs of education, but the annual insurable limit per student shall not be deemed to be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any years in excess of the annual limit; "(B) provides that the aggregate insured unpaid principal amount for all such insured loans made to any student shall not at any time exceed $7,500, in the case of any student who has not successfully completed a program of undergraduate education, and $15,000 in the case of any graduate or professional student (as defined by regulations of the Commissioner and including any loans which are insured by the Commissioner under this part, or by a State or nonprofit institution or organization with which the Commissioner has an agreement under section 428(b), made to such person before he became a graduate or professional student); "(C) authorizes the insurance of loans to any individual student for at least six academic years of study or their equivalent (as determined under regulations of the Commissioner); "(D) provides that (i) the student borrower shall be entitled to accelerate without penalty the whole or any part of an insured loan, (ii) except as provided in subparagraph (M) of this paragraph, the period of any insured loan may not exceed fifteen years from the date of execution of the note or other written evidence of the loan, and (iii) the note or other written evidence of any loan, may contain such provisions relating to repayment in the event of default by the borrower as may be authorized by regulations of the Commissioner in effect at the time such note or written evidence was executed; " (E) subject to subparagraphs (D) and (L) of this paragraph and except as provided by subparagraph (M) of this paragraph, provides that repayment of loans shall be in installments over a period of not less than five years (unless the student, during the nine- to twelve-month period preceding the start of the repayment period, specifically requests that repayment be made over a shorter period) nor more than ten years beginning not earlier than nine months nor later than one year after the student ceases to pureue a full-time course of study at an eligible institution, except— "(i) that, if the program provides for the insurance of loans for part-time study at eligible institutions, the program shall provide that such repayment period shall begin not earlier than nine months nor later than one year after the student ceases to carry at an eligible institution at least onehalf the normal full-time academic workload as determined by the institution; "(ii) that the lender and the student, after the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload, as determined by the institution, may agree to a repayment schedule which begins earlier, or is of shorter duration, than required by this sub-

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/645

 PUBLIC LAW 94-482—OCT. 12, 1976 paragraph, except that in the event a student has requested and obtained a repayment period of less than five years, he may at any time prior to the total repayment of the loan have the repayment period extended so that the total repayment period is not less than five years; " (F) authorizes interest on the unpaid balance of the loan at a yearly rate not in excess of 7 per centum per annum on the unpaid principal balance of the loan (exclusive of any premium for insurance which may be passed on to the borrower); "(G) insures not less than 80 per centum of the unpaid principal of loans insured under the program; " (H) does not provide for collection of an excessive insurance premium; " (I) provides that the benefits of the loan insurance program will not be denied any student who is eligible for interest benefits under section 428(a)(1) and (2) except in the case of loans made by an instrumentality of a State or eligible institution; " (J) provides that a student may obtain insurance under the program for a loan for any year of study at an eligible institution; " (K) in the case of a State program, provides that such State program is administered by a single State agency, or by one or more nonprofit private institutions or organizations under supervision of a single State agency; "(L) 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 insured under this part shall not be less than $360 or the balance of all such loans (together with interest thereon), whichever amount is less, unless the borrower and the lender otherwise agree, except that, in the case of a husband and wife, both of whom have such loans outstanding, the total of the combined payments for such a couple during any year shall not be less than $360 or the balance of all such loans, whichever is less; "(M) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid during any period (i) during which the borrower is pursuing a full-time course of study at an eligible institution, or is pursuing a course of study pursuant to a graduate fellowship program approved by the Commissioner, (ii) not in excess of three years during which the borrower is a member of the Armed Forces of the United States, (iii) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, (iv) not in excess of three years during which the borrower is in service as a full-time volunteer under the Domestic Volunteer Service Act of 1973, or (v) during a single period, not in excess of twelve months, at the request of the borrower, during which the borrower is seeking and unable to find full-time employment; "(N) provides that in the case of each loan insured by the program that the eligible institution attended by the borrower at the time of the loan will be notified of such insurance and the name of the lender making the loan, and such notification will be made either by (i) the prompt transmittal of such information to the institution by the insurer or the lender, or (ii) a requirement of the insurer, as a condition of its insurance, that the lender shall transmit any checks for the proceeds of such loan directly to the eligible institution for delivery to the borrower;

90 STAT. 2113

22 USC 2501 "ote. 42 USC 4951 note,

�


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/646

 90 STAT. 2114

PUBLIC LAW 94-482—OCT. 12, 1976 "(O) provides that funds borrowed by a student are disbursed by check payable to the order and requiring the endorsement of such student; " (P) provides that the borrower shall, within four months after ceasing to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution, contact the holder of his loan to negotiate the terms of his repayment obligations, and "(Q) requires the borrower to promptly notify the holder of the loan concerning any change of address. "(2) Such an agreement shall— "(A) provide that the holder of any such loan will be required to submit to the Commissioner, at such time or times and in such manner as he may prescribe, statements containing such information as may be required by or pursuant to regulation for the purpose of enabling the Commissioner to determine the amount of the payment which he must make with respect to that loan; "(B) include such other provisions as may be necessary to protect the financial interests of the United States and promote the purposes of this part, including such provisions as may be necessary for the purpose of section 437, and as are agreed to by the Commissioner and the State or nonprofit private organization or institution, as the case may be; and "(C) provide for making such reports, in such form and containing such information, as the Commissioner may reasonably require to carry out his function under this part, and for keeping such records and for affording such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports. " (c)(1)(A) The Commissioner may enter into a guaranty agreement with any State or any nonprofit private institution or organization with which he has an agreement pursuant to subsection (b), whereby the Commissioner shall undertake to reimburse it, under such terms and conditions as he may establish, with respect to losses (resulting from the default of the student borrower) on the unpaid balance of the principal and accrued interest of any insured loan with respect to which a portion of the interest is payable by the Commissioner under subsection (a), or would be payable under such subsection but for the borrower's lack of need. Except as provided in subparagraph (B) of this paragraph and in paragraph (7), the amount to be paid a State or nonprofit private institution or organization as reimbursement under this subsection shall be equal to 80 per centum of the amount expended by it in discharge of its insurance obligation incurred under its loan insurance program. "(B) Any State or any nonprofit private institution or organization which has entered into a supplementary agreement under section 428A of this Act whereby the Commissioner agrees to reimburse the State or nonprofit private institution or organization, under such terms and conditions as he may establish, with respect to losses (resulting from the default of the student borrower) on the unpaid balance of the principal and accrued interest of any such insured loan in an amount equal to 100 per centum of the amount expended by it in the discharge of its insurance obligation incurred under its loan insurance program, except that— "(i) if, for any fiscal year, the amount of such reimbursement payments by the Commissioner under this subsection exceeds 5 per centum of the loans which are insured by such institution or organization under such program and which were in repayment at the

�


text:
Page:Congressional Government.djvu/302

 both. There is and can be between them nothing like confidential and thorough coöperation. The departments may be excused for that attitude of hostility which they sometimes assume towards Congress, because it is quite human for the servant to fear and deceive the master whom he does not regard as his friend, but suspects of being a distrustful spy of his movements. Congress cannot control the officers of the executive without disgracing them. Its only whip is investigation, semi-judicial examination into corners suspected to be dirty. It must draw the public eye by openly avowing a suspicion of malfeasance, and must then magnify and intensify the scandal by setting its Committees to cross-examining scared subordinates and sulky ministers. And after all is over and the murder out, probably nothing is done. The offenders, if any one has offended, often remain in office, shamed before the world, and ruined in the estimation of all honest people, but still drawing their salaries and comfortably waiting for the short memory of the public mind to forget them. Why unearth the carcass if you cannot remove it?

Then, too, the departments frequently complain of the incessant exactions made upon them by Congress. They grumble that they are kept busy in satisfying its curiosity and in meeting the demands of its uneasy activity. The clerks

title: Page:Congressional Government.djvu/302