capital contributions and the capital contributions to the fund made by the institution.

(2) The remainder of the capital distribution shall be paid to the institution.

(20 U.S.C. 426) Enacted Sept. 2, 1958, P.L. 85-864, Title II, sec. 206, 72 Stat. 1586; amended Oct. 3, 1961, P.L. 87-344, Title II, sec. 201(c), 75 Stat. 759; amended Dec. 18, 1963, P.L. 88-210, sec. 22(e), 77 Stat. 416; amended Oct. 16, 1964, P.L. 88-665, 78 Stat. 1102.

LOANS TO INSTITUTIONS

SEC. 207. (a) Upon application by any institution of higher education with which he has made an agreement under this title, the Commissioner may make a loan to such institution for the purpose of helping to finance the institution's capital contributions to a student loan fund established pursuant to such agreement. Any such loan may be made only if such institution shows it is unable to secure such funds from non-Federal sources upon terms and conditions which the Commissioner determines to be reasonable and consistent with the purposes of this title. Loans made to institutions under this section shall bear interest at a rate which the Commissioner determines to be adequate to cover (1) the cost of the funds to the Treasury as determined by the Secretary of the Treasury, taking into consideration the current average yields of outstanding marketable obligations of the United States having maturities comparable to the maturities of loans made by the Commissioner under this section, (2) the cost of administering this section, and (3) probable losses.

(b) There are hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of this section, but not to exceed a total of $25,000,000.

(c) Loans made by the Commissioner under this section shall mature within such period as may be determined by the Commissioner to be appropriate in each case, but not exceeding fifteen years. (20 U.S.C. 427) Enacted Sept. 2, 1958, P.L. 85-864, Title II, sec. 207, 72 Stat. 1587.

PAYMENTS TO COVER REDUCTIONS IN AMOUNTS OF LOAN

SEC. 208. In addition to the payments otherwise authorized to be made pursuant to this title, the Commissioner shall pay to the appropriate institution, at such time or times as he determines, an amount which bears the same ratio to the interest which has been prevented from accruing and the portion of the principal which has been canceled on student loans pursuant to paragraph (3) of section 205 (b) (and not previously paid pursuant to this subsection) as the total amount of the institution's capital contributions to such fund under this title bears to the sum of such institution's capital contributions and the Federal capital contributions to such fund.

(20 U.S.C. 428) Enacted Sept. 2, 1958, P.L. 85-864, Title II, sec. 208, 72 Stat. 1587.

ADMINISTRATIVE PROVISIONS

SEC. 209. (a) The Commissioner, in addition to the other powers conferred upon him by this title, shall have power to agree to modi

fications of agreements or loans made under this title and to compromise, waive, or release any right, title, claim, or demand, however arising or acquired under this title.

(b) Financial transactions of the Commissioner pursuant to this title, and vouchers approved by him in connection with such financial transactions, shall be final and conclusive upon all officers of the Government; except that all such transactions shall be subject to audit by the General Accounting Office at such times and in such manner as the Comptroller General may by regulation prescribe. (20 U.S.C. 429) Enacted Sept. 2, 1958, P.L. 85-864, Title II, sec. 209, 72 Stat. 1587.

SEC. 401. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this title.

(20 U.S.C. 461) Enacted Sept. 2, 1958, P.L. 85-864, Title IV, sec. 401, 72 Stat. 1590.

NUMBER OF FELLOWSHIPS

SEC. 402. (a) During the fiscal year ending June 30, 1965, the Commissioner is authorized to award not to exceed three thousand fellowships to be used for study in graduate programs at institutions of higher education, during the fiscal year ending June 30, 1966, he is authorized to award not to exceed six thousand such fellowships, and during each of the two succeeding fiscal years, he is authorized to award not to exceed seven thousand five hundred such fellowships. Such fellowships may be awarded for such period of study as the Commissioner may determine, but not in excess of three academic years, except that where a fellowship holder pursues his studies as a regularly enrolled student at the institution during periods outside the regular sessions of the graduate program of the institution, a fellowship may be awarded for a period not in excess of three calendar years.

(b) In addition to the number of fellowships authorized to be awarded by subsection (a) of this section, the Commissioner is authorized to award fellowships equal to the number of previously awarded during any fiscal year under this section but vacated prior to the end of the period for which they were awarded; except that each fellowship awarded under this subsection shall be for such period of study, not in excess of the remainder of the period for which the fellowship which it replaces was awarded, as the Commissioner may determine.

(20 U.S.C. 462) Enacted Sept. 2, 1958, P.L. 85-864, Title IV, sec. 402, 72 Stat. 1591; amended Oct. 3, 1961, P.L. 87-344, Title II, sec. 203, 75 Stat. 760; amended Dec. 18, 1963, P.L. 88-210, sec. 24(a) (b), 77 Stat. 417; amended Oct. 16, 1964, P.L. 88-665, Title IV, sec. 401, 78 Stat. 1104.

AWARD OF FELLOWSHIPS AND APPROVAL OF INSTITUTIONS

SEC. 403. (a) Of the total number of fellowships authorized by section 402(a) to be awarded during a fiscal year (1) not less than one

thousand five hundred of such fellowships awarded during the fiscal year ending June 30, 1965, and not less than one-third of such fellowships awarded during the three succeeding fiscal years shall be awarded to individuals accepted for study in graduate programs approved by the Commissioner under this section, and (2) the remainder shall be awarded on such bases as he may determine, subject to the provisions of subsection (c). The Commissioner shall approve a graduate program of an institution of higher education only upon application by the institution and only upon his finding:

(1) that such program is a new program or an existing program which has been expanded, and

(2) that such new program or expansion of an existing program will substantially further the objective of increasing the facilities available in the Nation for the graduate training of college or university level teachers and of promoting a wider geographical distribution of such facilities throughout the Nation. (b) The total of the fellowships awarded as described in clause (1) of subsection (a) for pursuing a course of study in a graduate program at any institution or higher learning may not exceed a limit established by the Commissioner in the light of the objective referred to in subsection (a) (2), and the Commissioner shall give consideration to such objective in determining the number of fellowships awarded under this title for attendance at any one institution of higher education.

(c) Recipients of fellowships under this title shall be persons who are interested in teaching, or continuing to teach, in institutions of higher education and are pursuing, or intend to pursue, a course of study leading to a degree of doctor of philosophy or an equivalent degree.

(d) No fellowship shall be awarded under this title for study at a school or department of divinity. For the purposes of this subsection, the term "school or department of divinity" means an institution or department or branch of an institution, whose program is specifically for the education of students to prepare them to become ministers of religion or to enter upon some other religious vocation or to prepare them to teach theological subjects.

(20 U.S.C. 463) Enacted Sept. 2, 1958, P.L. 85-864, Title IV, sec. 403, 72 Stat. 1591; amended Oct. 16, 1964, P.L. 88-665, Title IV, sec. 402(a) (c), 78 Stat. 1104.

FELLOWSHIP STIPENDS

Sec. 404. (a) Each person awarded a fellowship under the provisions of this title shall receive a stipend of $2,000 for the first academic year of study, $2,200 for the second such year, and $2,400 for the third such year, plus an additional amount of $400 for each such year on account of each of his dependents. Where a person awarded a fellowship under this title for study at an institution of higher education pursues his studies as a regularly enrolled student at such institution during periods outside of the regular sessions of the graduate program of the institution, the Commissioner may make appropriate adjustments in his stipends and allowances for dependents.

(b) In addition to the amounts paid to persons pursuant to subsection (a) there shall be paid to the institution of higher education

at which each such person is pursuing his course of study $2,500 per academic year, less any amount charged such person for tuition.

(20 U.S.C. 464) Enacted Sept. 2, 1958, P.L. 85-864, Title IV, sec. 404, 72 Stat. 1591; amended Dec. 18, 1963, P.L. 88-210, sec. 24 (c), 77 Stat. 417; amended Oct. 16, 1964, P.L. 88-665, Title IV, sec. 403, 78 Stat. 1105.

FELLOWSHIP CONDITIONS

SEC. 405. A person awarded a fellowship under the provisions of this title shall continue to receive the payments provided in section 404 only during such periods as the Commissioner finds that he is maintaining satisfactory proficiency in, and devoting essentially full time to, study or research in the field in which such fellowship was awarded, in an institution of higher education, and is not engaging in gainful employment other than part-time employment by such institution in teaching, research, or similar activities, approved by the Commissioner.

(20 U.S.C. 465) Enacted Sept. 2, 1958, P.L. 85-864, Title IV, sec. 405, 72 Stat. 1591.

SEC. 601. (a) The Secretary is authorized to arrange through grants to or contracts with institutions of higher education for the establishment and operation by them, during the period beginning July 1, 1958, and ending with the close of June 30, 1968, of centers for the teaching of any modern foreign language with respect to which the Secretary determines that individuals trained in such language are needed by the Federal Government or by business, industry, or education in the United States. Any such grant or contract may provide for instruction not only in such modern foreign language but also in other fields needed to provide a full understanding of the areas, regions, or countries in which such language is commonly used, to the extent adequate instruction in such fields is not readily available, including fields such as history, political science, linguistics, economics, sociology, geography, and anthropology. Any such grant or contract may cover all or part of the cost of the establishment and operation of the center with respect to which it is made, including the cost of grants to the staff for travel in the foreign areas, regions, or countries with which the subject matter of the field or fields in which they are or will be working is concerned and the cost of travel of foreign scholars to such centers to teach or assist in teaching therein and the cost of their return, and shall be made on such conditions as the Secretary finds necessary to carry out the purposes of this section.

(b) The Secretary is also authorized, during the period beginning July 1, 1958, and ending with the close of June 30, 1968, to pay stipends to individuals undergoing advanced training in any modern foreign language (with respect to which he makes the determination under subsection (a)), and other fields needed for a full understanding of the area, region, or country in which such language is commonly used,

at any short-term or regular session of any institution of higher education, including allowances for dependents and for travel to and from their places of residence, but only upon reasonable assurance that the recipients of such stipends will, on completion of their training, be available for teaching a modern foreign language in an institution of higher education or for such other service of a public nature as may be permitted in regulations of the Secretary.

(20 U.S.C. 511) Enacted Sept. 2, 1958, P.L. 85-864, Title VI, sec. 601, 72 Stat. 1593; amended Oct. 3, 1961, P.L. 87-344, Title II, sec. 205(a), 75 Stat. 760; amended Dec. 18, 1963, P.L. 88-210, sec. 26(a), 77 Stat. 418; amended Oct. 16, 1964, P.L. 88-665, Title VI, sec. 601(a), 78 Stat. 1106; amended Oct. 29, 1966, P.L. 89-698, Title II, sec. 201, 80 Stat. 1069.

RESEARCH AND STUDIES

SEC. 602. The Commissioner is authorized, directly or by contract, to make studies and surveys to determine the need for increased or improved instruction in modern foreign languages and other fields needed to provide a full understanding of the areas, regions or countries in which such languages are commonly used, to conduct research on more effective methods of teaching such languages and in such other fields, and to develop specialized materials for use in such training, or in training teachers of such languages or in such fields.

(20 U.S.C. 512) Enacted Sept. 2, 1958, P.L. 85-864, Title VI, sec. 602, 72 Stat. 1594.

APPROPRIATIONS AUTHORIZED

SEC. 603. There are hereby authorized to be appropriated $8,000,000 for the fiscal year ending June 30, 1964, $13,000,000 for the fiscal year ending June 30, 1965, $14,000,000 for the fiscal year ending June 30, 1966, $16,000,000 for the fiscal year ending June 30, 1967, and $18,000,000 for the fiscal year ending June 30, 1968, to carry out the provisions of this title.

(20 U.S.C. 513) Enacted Sept. 2, 1958, P.L. 85-864, Title VI, sec. 603, 72 Stat. 1594; amended Oct. 16, 1964, P.L. 88-665, Title VI, sec. 601 (b), 78 Stat. 1107.

Title X-Miscellaneous Provisions

ADMINISTRATION

SEC. 1001. (a) The Commissioner is authorized to delegate any of his functions under this Act, except the making of regulations, to any officer or employee of the Office of Education.

(b) In administering the titles of this Act for which he is responsible, the Commissioner is authorized to utilize the services and facilities of any agency of the Federal Government and, without regard to section 3709 of the Revised Statutes of the United States (41 U.S.C., sec. 5), of any other public or nonprofit agency or institution, in accordance with agreements between the Secretary and the head thereof.

(c) The Commissioner shall include in his annual report to the Congress a full report of the activities of the Office of Education under this Act, including recommendations for needed revisions in the provisions thereof.