10. Currently, legislation does not permit delegation of issuing Federal insurance commitments by a nonfederal official.

11. Original legislation calls for Federal Insurance Pro-
gram to lapse on June 30, 1968.

12. After June 30, 1968, would permit payment of
Federal interest benefits only for loans made to students
who had obtained prior loans.

13. Federal Savings and Loan Associations permitted
to make loans only to college students.

14. Pension funds not now eligible lenders under program.

four times the amount of loans their present capacity permits.

Enables Commissioner to delegate administration of
Federal Insured Program (plus issuing of insurance com-
mitment) to any public or nonprofit private agency or
institution.

Permits authorization of new loans under the Federal
program through June 30, 1970.

Extends provision for payment of Federal interest bene-
fits through June 30, 1973.

Allows Federal Savings and Loan Associations to make
Vocational loans.

Permits Commissioner to approve certain pension funds as eligible lenders.

(MILLIONS OF DOLLAR)

CHART III.-Present status of direct Federal loan insurance.3
FEDERAL INSURED STUDENT LOAN PROGRAM

In the shaded States, loan guarantee capability, whether provided through advances of Federal "seed money" alone, or in combination with State appropriations, has been exhausted. An interim program of Federal loan insurance has therefore been provided, beginning in North Dakota and Colorado in July and August of 1967. The Florida and Idaho programs were established in February 1968.

CHART IV.-Monthly loan volume-July 1966 to December 1967.*
NUMBER AND AMOUNT OF LOANS BY MONTH
7/1/66-12/31/67

97.544

10

0

D

July, August, and September are typically heavy borrowing months, as students and their families make plans for the college year beginning in September. The total volume of loans insured in fiscal year 1967 reached $248 million. The volume for the first half of the current fiscal year has already amounted to $310 million, and is estimated at $465 million for the entire 1968 fiscal year. The volume from November 1965 to July 1, 1966, was $77 million. Thus, a total of $790 million will have been loaned from November 1965 to June 1968.

BILL TEXT, CHANGES IN EXISTING LAW, AND SECTION-BY-SECTION ANALYSIS OF S. 3099

VOCATIONAL EDUCATION AMENDMENTS OF 1968 (Partnership for Learning and Earning Act of 1968)

(LANGUAGE IN WHICH NO CHANGE IS PROPOSED IS SHOWN IN ROMAN TYPE; LANGUAGE PROPOSED TO BE DELETED IS SHOWN IN BLACK BRACKETS; AND LANGUAGE PROPOSED TO BE ADDED IS SHOWN IN ITALIC TYPE)

89-998 O

Printed for the use of the Committee on Labor and
Public Welfare

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1968

PURCHASED THROUGH

DOC. EX. PROJECT