Method of Distribution Fifteen percent of the annual appropriation is reserved for grants for special projects of State departments of education. Of the remaining 85 percent, up to 2 percent is reserved for Puerto Rico, American Samoa, Guam, and the Virgin Islands. From the remainder of the 85 percent, the 50 States of the Union and the District of Columbia are each apportioned $100,000. The balance is apportioned to them on the basis of their relative numbers of public school pupils. Criteria for Decision: An application for a grant may be approved only if (a) each proposed project, program, or activity is of the type authorized under the program and shows promise of making a significant contribution to strengthening the leadership resources of the applicant or of its ability to participate effectively in meeting educational needs of the State; (b) funds are to be used to supplement and, to the extent practical, increase the amount of State funds that otherwise would be available for the projects, programs, or activities, and (c) provision is made for adequate fiscal control and fund accounting procedures and for reporting. Reapportionment The amount apportioned to any State which will not be required for the fiscal year concerned is available for reapportionment to other States from time to time and in proportion to the amounts originally apportioned and the extent needed. On request of a State, a part of its apportionment may be added to that of another State. Source of Data: Information on distribution of Federal funds: 30 F.R. 11518, September 9, 1965. Fall Public school enrollment: Carol Joy Hobson and Samuel Schloss. 1964 Statistics of Public Elementary and Secondary Day Schools: Pupils, Teachers, Instruction Rooms, and Expenditures. U.S. Department of Health Education, and Welfare, Office of Education. Final Report OE-20007-647 Washington: U.S. Government Printing Office, 1965. Table I, p. 9. Matching Requirements Basic grants: None in fiscal years 1966 and 1967. For fiscal year 1968, the Federal share will be between 50 and 66 percent depending on per capita income of the State in relation to that of the Nation. Special project grants: The enabling legislation specifies that the Federal grant may be for "part of the cost of experimental projects." Interchanges of personnel: May be paid by the Office of Education or by the State agency or the costs may be shared. Who May Receive Federal Aid State departments of education or other State-level education agencies. Application Procedure Basic grants: State departments of education initially submit to the U.S. Commissioner of Education their applications which include an evaluation of their resources and a request for grant assistance for the projects, programs, and activities they propose. Thereafter, amendments to the evaluation and requests for assistance are submitted annually to the Commissioner. Special project grants: State departments of education submit their requests for these grants separately from their requests for basic grants. Like the requests for basic grants, they are submitted to the Commissioner of Education. Interchanges of personnel: Arrangements are negotiated on an individual basis between the Office of Education and the State department of education or other State-level education agency. Developments During the Past Year Pending receipt of appropriations, Office of Education personnel discussed implementation of the program with officials of State departments of education. Legal Basis Public Law 89-10 (Elementary and Secondary Education Act of 1965), April 11, 1965, title V (79 Stat. 47)--20 U.S.C. 861. Additional information may be obtained from: Division of State Agency Cooperation, Bureau of Elementary and Secondary Education, Office of Education, U.S. Department of Health, Education, and Welfare, Washington, D.C. 20202. Purpose INSURED LOANS AND INTEREST BENEFITS FOR HIGHER EDUCATION STUDENTS 1. To encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions of higher education. 2. To provide a Federal program of student loan insurance for students who do not have reasonable access to a State or private nonprofit program of student loan insurance covered by an agreement with the U.S. Commissioner of Education. 3. To pay a portion of the interest on loans to qualified students, provided loans: a. Are made by a State under a qualifying direct loan program; or The program is authorized by the Higher Education Act of 1965. This Act defines the term "State" to include any of the 50 States of the Union, the District of Columbia, Puerto Rico, American Samoa, Guam, or the Virgin Islands. Federally insured loans to students may not exceed $1,500 a year for graduate or professional students and the overall unpaid principal may not exceed $7,500. Such insured loans may not exceed $1,000 for other students and the overall limit is $5,000. Students from families with annual adjusted income of $15,000 or more are eligible to borrow under an insured loan program but pay the full interest charge. Eligible students from families with adjusted incomes of less than $15,000 a year qualify for benefits on a part of the interest charge. Under the Federal program, the insurance liability is 100 percent of the unpaid balance of the loan principal exclusive of any interest added to the principal. Under State and private programs, at least 80 percent of the loan principal must be insured. Terms and conditions required for loans under State and private insurance programs are substantially the same as those of the Federal program. A loan under the Federal program is evidenced by an unsecured note which may be required to be endorsed only if necessary to create a binding obligation. The note provides for repayment, within a maximum of 15 years of its execution, in installments over a period of 5 to 10 years beginning between nine months and a year after the student ceases to carry half of the normal full-time workload at an eligible institution. Though periodic payments of principal need not be made, interest accrues for payment (a) while the borrower is a full-time student at an institution of higher education, and (b) not in excess of three years while the borrower is a member of the Armed Forces or a volunteer in the Peace Corps. In the case Who May Receive Federal Aid State departments of education or other State-level education agencies. Application Procedure Basic grants: State departments of education initially submit to the U.S. Commissioner of Education their applications which include an evaluation of their resources and a request for grant assistance for the projects, programs, and activities they propose. Thereafter, amendments to the evaluation and requests for assistance are submitted annually to the Commissioner. Special project grants: State departments of education submit their requests for these grants separately from their requests for basic grants. Like the requests for basic grants, they are submitted to the Commissioner of Education. Interchanges of personnel: Arrangements are negotiated on an individual basis between the Office of Education and the State department of education or other State-level education agency. Developments During the Past Year Pending receipt of appropriations, Office of Education personnel discussed implementation of the program with officials of State departments of education. Legal Basis Public Law 89-10 (Elementary and Secondary Education Act of 1965), April 11, 1965, title V (79 Stat. 47)--20 U.S.C. 861. Additional information may be obtained from: Division of State Agency Cooperation, Pureau of Elementary and Secondary Education, Office of Education, U.S. Department of Health, Education, and Welfare, Washington, D.C. 20202. Purpose INSURED LOANS AND INTEREST BENEFITS FOR HIGHER EDUCATION STUDENTS 1. To encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions of higher education. 2. To provide a Federal program of student loan insurance for students who do not have reasonable access to a State or private nonprofit program of student loan insurance covered by an agreement with the U.S. Commissioner of Education. 3. To pay a portion of the interest on loans to qualified students, provided loans: b. a. Are made by a State under a qualifying direct loan program; or The program is authorized by the Higher Education Act of 1965. This Act defines the term "State" to include any of the 50 States of the Union, the District of Columbia, Puerto Rico, American Samoa, Guam, or the Virgin Islands. Federally insured loans to students may not exceed $1,500 a year for graduate or professional students and the overall unpaid principal may not exceed $7,500. Such insured loans may not exceed $1,000 for other students and the overall limit is $5,000. Students from families with annual adjusted income of $15,000 or more are eligible to borrow under an insured loan program but pay the full interest charge. Eligible students from families with adjusted incomes of less than $15,000 a year qualify for benefits on a part of the interest charge. Under the Federal program, the insurance liability is 100 percent of the unpaid balance of the loan principal exclusive of any interest added to the principal. Under State and private programs, at least 80 percent of the loan principal must be insured. Terms and conditions required for loans under State and private insurance programs are substantially the same as those of the Federal program. A loan under the Federal program is evidenced by an unsecured note which may be required to be endorsed only if necessary to create a binding obligation. The note provides for repayment, within a maximum of 15 years of its execution, in installments over a period of 5 to 10 years beginning between nine months and a year after the student ceases to carry half of the normal full-time workload at an eligible institution. Though periodic payments of principal need not be made, interest accrues for payment (a) while the borrower is a full-time student at an institution of higher education, and (b) not in excess of three years while the borrower is a member of the Armed Forces or a volunteer in the Peace Corps. In the case |