7 1 REPEAL OF AUTHORITY TO PRESCRIBE A SCHEDULE OF 2 FEES FOR CERTAIN INSPECTIONS AND RELATED 3 4 5 ACTIVITIES SEC. 106. The Higher Education Facilities Act of 1963 is amended by striking out subsection (b) of section 304 6 and by redesignating subsection (c) and references thereto 7 as subsection (b). 8 9 10 PART B-EXTENSION OF ASSISTANCE TO DEVELOPING INSTITUTIONS SEC. 111. Paragraph (1) of section 301 (b) of the 11 Higher Education Act of 1965 is amended by inserting "the 12 sum of $30,000,000 for the fiscal year ending June 30, 13 1967, and such sums as may be necessary for each of the 14 three succeeding fiscal years" after "1966,”. TITLE II-STUDENT LOAN PROGRAMS 15 16 LOAN REIMBURSEMENT PAYMENTS FOR TEACHERS 17 SEC. 201. Title II of the National Defense Education 18 Act of 1958 is amended by redesignating subsection (c) of 19 section 205 as subsection (d), and by inserting after sub20 section (b) the following new subsection: 21 "(c) In order to encourage students who have obtained 22 a loan under this title to refinance such loan through the 23 student loan program carried out under part B of title IV of 24 the Higher Education Act of 1965, and likewise to encourage 8 1 students to obtain new loans under such part B program in 2 lieu of obtaining such loans under this title, a student who 3 does so with the approval of the educational institution in4 volved shall, with respect to so much of the loan under such 5 part B as 6 7 8 9 10 11 "(1) is a refinancing of a student loan made by the institution under this title, or, "(2) in the case of a loan under such part B obtained in lieu of a loan from the institution, does not exceed the amount which he was eligible to borrow from the institution, 12 be entitled, in accordance with regulations of the Commis13 sioner, to have the following loan reimbursement payments 14 made to him by the Commissioner: An amount equal to 15 10 per centum of the applicable total principal amount of 16 any such loan shall be paid for each complete academic year 17 or its equivalent (as determined under regulations of the 18 Commissioner) of service as a full-time teacher in a public or other nonprofit elementary or secondary school in a State, 20 in an institution of higher education, or in an elementary or 19 21 secondary school overseas of the Armed Forces of the United 22 States, until an amount equal to 50 per centum of such 23 total has been paid. The annual amount shall be 15 per 24 centum (rather than 10 per centum) for each complete 25 academic year or its equivalent (as so determined) of serv 9 1 ice as a full-time teacher in a public or other nonprofit 2 elementary or secondary school which is in the school dis3 trict of a local educational agency which is eligible in that 4 year for assistance pursuant to title II of the Act of Sep5 tember 30, 1950, Public Law 874, Eighty-first Congress, 6 as amended, and which for purposes of this paragraph and 7 for that year has been determined by the Commissioner, 8 pursuant to regulations and after consultation with the ap9 propriate State educational agency, to be a school in which 10 there is a high concentration of students from low-income 11 families, except that the Commissioner shall not make such 12 determination with respect to more than 25 per centum of 13 the total of the public and other nonprofit elementary and 14 secondary schools in any one State for any one year; and 15 for the purpose of payments pursuant to this sentence, an 16 aggregate amount equal to an additional 50 per centum of 17 the applicable total principal amount of any such loan may 18 be so paid. No payment shall be made under this subsec 19 tion for service performed more than fifteen years from the 20 execution of the note or written agreement evidencing it." 21 222 23 ENCOURAGING PRIVATE CAPITAL FOR NATIONAL DEFENSE STUDENT LOANS SEC. 202. Section 203 of the National Defense Educa 24 tion Act of 1958 is amended by designating the present text 10 1 as subsection (a) and by inserting at the end thereof the 2 following new subsection: 3 "(b) (1) For the purpose of substituting for direct 4 Federal support to the maximum extent practicable private 5 and other non-Federal funds for student loans, the Commis6 sioner is authorized to provide the following forms of assist7 ance, upon such terms and conditions as he may deem 8 appropriate, for the benefit of students attending institutions 9 of higher education: "(A) If an institution of higher education borrows i non-Federal funds (or otherwise receives or makes available repayable non-Federal funds) for use as capital contributions to a student loan fund established under this title, the Commissioner may (i) guarantee timely repayment of all or part of such funds (plus interest thereon), (ii) agree to reimburse the institution for up to 90 per centum of the loss to it from defaults on student loans made from such funds, (iii) agree to pay to the institution the amount of the interest differential (as defined in paragraph (3) of this subsection) with respect to such funds, and (iv) agree to pay the institution the amount of administrative expenses authorized by clause (3) of section 204 to be paid out of a student loan fund with respect to such funds. "(B) If an institution of higher education arranges 66-396 O 66 2 11 for a student assistance organization (as defined in paragraph (3) of this subsection) to make loans to students attending the institution, the Commissioner may enter into an agreement with the organization upon the terms set forth in section 204 and may (i) guarantee timely repayment of funds (plus interest thereon) borrowed by the organization for use as capital contributions to a student loan fund established under this title, (ii) agree to reimburse the organization for up to 90 per centum of the loss to it from defaults on student loans made from such borrowed funds, (iii) agree to pay to the organiza tion the amount of the interest differential with respect to such borrowed funds, and (iv) agree to pay to the organization the amount of administrative expenses authorized by clause (3) of section 204 to be paid out of a student loan fund with respect to such funds. A student assistance organization with which the Commissioner makes an agreement pursuant to this subparagraph shall be deemed to be an institution of higher education for purpose of applying the other provisions of this title. "(C) If an institution of higher education enters into arrangement with one or more lenders pursuant to which the lender makes loans (upon terms and conditions set forth in section 205 (b)) in such amounts and to such students as the institution may determine on the |