In summary, Mr. Chairman, S. 600 represents another of the AFLCIO's long-cherished educational goals which seems ready to join so many others on the roster of achievement. We have suggested changes we think are important to make the bill a better one that will more nearly realize its aims. But above all, we hail this bill in the spirit it represents, a spirit that is dedicated to full and equal opportunity for all, and to the ulitimate perfection of American society. Senator MORSE. Thank you very much for this testimony. I have one or two questions. One of them is really a request that you give us a supplemental memorandum. Yesterday, we had some remarkable testimony from two representatives of the technical and trade schools, one a nonprofit institution, and the other one a private institution, dealing with title IV, the insured student loan program, and which students would be qualified. You will find it on page 45 of the bill. The record will show, as Mr. Davis pointed out, that right now we need 500,000 more auto mechanics than can be supplied. He did not offer other statistics, but he said that there were comparable statistics in many fields such as television technicians and radio technicians, and technicians in all of these trade areas where these special skills are needed. I am going to have counsel supply you the transcript of yesterday, and you will find that these witnesses and the chairman of the committee discussed section 431 of the bill, starting on page 66, dealing with matters of definition. There appears to be some need of clarification. The point of the testimony given was to effect that title IV is a student-oriented program, not a school-oriented program, that they were not here cup in hand, they were pleading for assistance to these students. You will find in the record that I observed that it is just as important to develop to a maximum extent possible the skill potential of this group of students as it is to develop to the maximum extent possible the academic potential of the young man or woman that wants to go on for a baccalaureate degree or master's or Ph. D. I said yesterday, as you have heard me say before, in the Foreign Relations Committee, that if I were asked to name the five most critical issues that faced this Republic in the field of foreign policy, I would name, surprisingly high on that list of five, the educational crisis in this country, for the very obvious reason that the brain potential of this country is our greatest security weapon, when all is said and done. Only to the extent that we develop it to the maximum extent possible are we going to be able to keep ahead of Russia and China in brainpower. We cannot do it in manpower, we had better do it in brainpower. It is very important that we support adult education, and the development of these skilled technicians. Many of them have jobs and they go to these technical and trade schools late in the afternoon or in the evening. In yesterday's transcrip I said: Recently, I read an article in one of the national publications This is in Mr. Davis' testimony I read an article in one of the national publications that the auto industry predicts that over the next 10 years they must take very positive steps to train 5,000 auto mechanics. The figure is staggering, but it must be correct, or the sources would not have publicized it the way they did. If we need them now we will need them in the next 10 years. Rather than to ask you for any comment, I will ask for a memorandum that sets forth the AFL-CIO position in regard to the development of this adult educational program, which I think is pretty vital to the whole labor force of this country. I am as anxious to see to it that that group of young people are included in our educational program as I am to see to it that we have the scholarship and loan programs for children coming out of workers' families rather than low-income families, it raises a lot of ancillary problems. It would not raise them if the AFL-CIO gives us the benefit of their judgment as to how this program can be correlated with your labor education programs, such as your apprenticeship program. I am asking for your help in covering this area. I wish you would give some thought to it and give us a supplemental memorandum on that. Mr. BIEMILLER. We would be very happy to do that, Senator. Senator MORSE. This is very helpful testimony. I have no further questions. And I thank you very much. Mr. BIEMILLER. Thank you very much. We appreciate the opportunity to be here. (The following memorandum was subsequently received:) AMERICAN FEDERATION OF LABOR AND MEMORANDUM To: Senator Wayne Morse, Chairman, Subcommittee on Education, Senate Committee on Labor and Public Welfare. From: Andrew J. Biemiller, director, department of legislation; Lawrence Rogin, director, department of education. Subject: Section 431, Senate bill 600; regarding the eligibility for guaranteed loans of students participating in programs of postsecondary vocational or technical education. Our concern with regard to this section is that the loan provisions of the act should not undermine the long established Federal policy supporting apprenticeship as the approved training method for entrance into the skilled trades. The loan provisions should not be used to support competing systems of training for the skilled trades through which it may be proposed to substitute classroom teaching for the carefully planned combination of on-the-job and related instruction on which apprenticeship is based. We would, therefore, recommend a statement in the report on the bill making this point clear. In addition, we would propose that the advisory committees set up by the Commissioner of Education, when there is no nationally recognized accrediting agency or association, shall include, where appropriate, representatives of management and labor so that there can be adequate evaluation of the training provided. Senator MORSE. It is my privilege to call upon my colleague, Senator Williams from New Jersey, to introduce our next witness to testify on this very important bill, the Governor of the State of New Jersey. Senator Williams. STATEMENT OF HON. HARRISON A. WILLIAMS, JR., A U.S. SENATOR FROM THE STATE OF NEW JERSEY Senator WILLIAMS. Thank you very much, Mr. Chairman. I am not a member of this subcommittee. I appreciate the opportunity to be here and hear the testimony of my good friend, Governor Hughes. He has certainly responded to your need as to education in New Jersey magnificently, and of course can spell out the need for increased Federal cooperation with out needs there, the most populous State in the Nation on a density basis. And he has done a very remarkable job, but we all concede that much more needs to be done. It is my pleasure to introduce Governor Hughes. Senator MORSE. Governor, the subcommittee is delighted to have you as a witness this morning. I should say that the Senator from New Jersey, Mr. Williams, is a member of the full committee of the Senate Committee on Labor and Public Welfare which has jurisdiction over educational legislation of which this subcommittee is a part, and he has never failed to vote with this subcommittee when we made our report on legislation that would advance the education interests of the young people of this country. He has a remarkable voting record on this committee. This is an opportunity, in the presence of his own Governor, to publicly thank him for that support, and to do a little lobbying for this bill, because I am looking forward to that continued support when we bring this bill before the full committee, I hope within a month, and probably within the next 3 weeks. I want to thank you very much for coming down and giving us your own views on this bill. And you may proceed in your own way. STATEMENT OF HON. RICHARD J. HUGHES, GOVERNOR, STATE OF NEW JERSEY Governor HUGHES. Thank you very much, Senator. And I say that we are very proud of Pete Williams in New Jersey. I might say, Senator Morse, we are very proud by remote control of you. We have observed your leadership of this subcommittee and your interest in the subcommittee of the education of our youth. You have many friends in New Jersey. Senator MORSE. I was going to say, not in the spirit of reciprocity at all, but as a statement of fact, I was very happy to make a few speeches in New Jersey not so long ago in an event called a political campaign in which I spoke highly both of the Senator from New Jersey and the Governor from New Jersey. Governor HUGHES. Thank you very much belatedly for that, Senator. Senator, I omitted introducing the young man who is my assistant, Mr. Richard Leone. He is in our office on a foundation arrangement, and he is highly expert in this field, and has assisted me in preparing my testimony, and I have taken the liberty of asking him to sit with me. Senator MORSE. We are pleased to have him with us this morning. He is free at any time in the hearing to make any comment he wishes. Governor HUGHES. Thank you, sir. In New Jersey, Senator Morse and Senator Williams, as you can well understand, education is the first order of public business in our State. Among the many obligations of State government, none has a higher priority than that of training and educating our young people. It has become increasingly clear that many of our most critical needs in this area are at the higher education level. The legislation before this committee will enable us to take impressive strides toward meeting that need, and it will enable us to take action simultaneously in a number of significant ways. One of its most promising aspects is that which provides direct assistance to college students themselves, especially those from low-income families. New Jersey, as you probably know, is probably at the level of sixth richest State. Despite that, as I noted before a House committee when I was testifying on the poverty bill, New Jersey has 180,000 families with incomes of less than $3,000 a year, the sum established as the poverty level. And, we all know that this income is even more inadequate when determining the ability to pay the costs of a modern college education. During the school year 1964-65, the average cost of attending public institutions of higher learning has been about $1,560; in private institutions this figure rises to $2,370. These figures assume special significance when compared with the average family income levels which in New Jersey are $6,786 per year. TITLE IV COMMENTS I believe that part A of title IV, which is intended to aid directly young people from low-income families, is an innovation in assistance to college students. I am particularly impressed by the related provision in the legislation which will help in the identification of qualified youth from low-income families and encourage them to undertake secondary and postsecondary training. By increasing cooperation between high schools and colleges, this additional element in the program will mean that every dollar spent is a more effective dollar. If we are to break the cycle of poverty in this country, many of our efforts must be directed toward providing education for those who are growing up in a poor environment. This legislation strikes at the cycle at a critical point. It should make the entire legislative package more valuable to our less advantaged young people. When these scholarship proposals are combined with the loan provisions under title IV, they constitute a flexible and extensive instrument for expanding college education for thousands of young Americans. New Jersey has granted 11,332 State scholarships to its present college population. We expect this number to grow to approximately 12,500 in the fall of 1965. Our scholarship program is supplemented by a State student loan plan under which 11,318 students are presently receiving assistance. The proposed Federal programs will be a valuable increment to our State's activities in this field. I am happy to note, in passing, that the administration bill includes a proposal first suggested by the distinguished Senator from New Jersey, Harrison A. Williams, Jr.—a proposal which provides for modest interest subsidies to borrowers while they are in college and for 1 year thereafter. I think that this will go a long way toward facilitating the use of the loan program by students, since it will prevent them from incurring a heavy interest burden at a time when their earning power is negligible. It will surely encourage speedier repayment. 47-581-65-—pt. 3- -3 I have been impressed by the success of the college work-study program which was established under the Office of Economic Opportunity. In New Jersey, 8 institutions have applied initially to participate in the program and 770 students are expected to benefit from it. I anticipate the substantial growth of this program in the years ahead and the participation of large numbers of New Jersey college students. The transfer of responsibility for this program from the Director of the Office of Economic Opportunity to the Commissioner of Education I think is a sensible step for the long run. The OEO has well served its function as an innovator and has successfully tested this new program. Its expansion is also sensible. By tying the work-study opportunities to other kinds of assistance, college and universities can help students to reduce the heavy debt burdens they incur when they must borrow to meet the large portions of their college expenses. The work-study program provides the opportunity for our young people to give a new and dynamic expression of their traditional willingness to "work their way through college." It encourages self-reliance based upon a realistic hope that the financial means to complete higher education will be available. We must intensify our public and private efforts to keep our needy students in school. They are very, very important human resources in America. I would take special note, Senator, of paragraph 4 of section 441 of this legislation which delays by 10 months the date on which the Federal share of student compensation under the work-study program is reduced from 90 to 75 percent. This postponement will grant participating institutions the time needed to prepare themselves for the added financial burdens upon them when the Federal contribution is reduced. The expansion of the work-study program is based, it seems to me, upon a realistic appraisal of the sharp increase in enrollment in our higher institutions. Last fall a recordbreaking total of 28,825 New Jersey public high school students went to college. This was an increase of 33 percent over the 21,638 who entered college in 1963. Our general population trends indicate that we can expect such sharp increases to continue in the future. Together, the programs for student assistance in S. 600 can provide a multipronged attack on the problem of removing the financial barriers to higher education for all our capable young people. They are based upon a sound recognition that such assistance encourages hope and aspiration in those who might otherwise view college as an impossible dream. TITLE I COMMENTS I am pleased to note that this legislation recognizes the increasing importance of university extension programs and directs its assistance toward areas of substantial benefit to communities. The problems of urbanization—and nowhere are they more interesting and at the same time alarming as in New Jersey, the most urbanized State in the Nation-receive a special emphasis. I believe that the concept of the academic community as a vital component of the general community is both visionary and sound. The widespread implementation of community-oriented university extension courses will have an immediate impact on the social and economic life of our towns and cities. I need not detail here the problems of civil rights, juvenile delinquency, mass transportation, urban blight and housing which plague our |