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participations in obligations acquired under this section. From time to time, and at least at the close of each fiscal year, the Commissioner shall pay from the fund into the Treasury as miscellaneous receipts interest on the cumulative amount of appropriations paid into the fund as capital for loans under this section less than average undisbursed cash balance in the fund during the year. The rate of such interest shall be determined by the Secretary of the Treasury, taking into consideration the average market yield during the month preceding each fiscal year on outstanding Treasury obligations of maturity comparable to the average maturity of loans made from the fund. Interest payments may be deferred with approval of the Secretary of the Treasury, but any interest payments so deferred shall themselves bear interest. The Commissioner also from time to time (not less often than annually) transfer from the fund, to the credit of the appropriation (current at the time of such transfer) for salaries and expenses of the Office of Education, an amount that in his judgment constitutes a reasonable estimate of the normal administrative expenses of the Office incurred, or to be incurred, in connection with operations of the Commissioner under this section during the period covered by the transfer. If at any time the Commissioner determines that moneys in the funds exceed the present and any reasonably prospective future requirements of the fund, such excess may be transferred to the general fund of the Treasury."
(2) Section 201 of the National Defense Education Act of 1958 is amended by striking out the last sentence and substituting therefor the following: "Sums appropriated under this section shall be available (1) in accordance with agreements between the Commissioner and institutions of higher education, for payment of Federal capital contributions which, together with contributions from the institutions, shall be used for establishment and maintenance of student loan funds in accordance with agreements pursuant to section 204, and (2) to the extent determined by the Commissioner not to be required for the foregoing purpose, for payments into the loan fund established by section 207 (d).”
(3) Section 208 of such Act is amended by substituting "title" for "subsection" in the parenthetical phrase.
(b) (1) Section 202 of the National Defense Education Act of 1958 (relating to allotments of appropriations among States), as amended by section 451 of this Act, is further amended by inserting "(for payment as Federal capital contributions or as loans to institutions under section 207)" after "the Commissioner shall lot to each State" in the first sentence of subsection (a), and by redesignating subsection (b) as subsection (c) and inserting after subsection (a) the following new subsection :
"(b) Funds available in any fiscal year for payments to institutions under this title (whether as Federal capital contributions or as loans to institutions under section 207) which are in excess of the amount appropriated pursuant to section 201 for that year shall be allotted among the States in such manner as the Commissioner determines will best carry out the purpose of this Act."
(2) Section 203 of such Act (relating to the payment of Federal capital contributions to institutions), including the heading thereof, is amended to read as follows:
"DISTRIBUTION AMONG INSTITUTIONS OF FEDERAL CAPITAL CONTRIBUTIONS AND INSTITUTIONAL LOANS
"SEC. 203. (a) The Commissioner shall from time to time set dates by which institutions of higher education in a state must file applications for Federal capital contributions, and for loans pursuant to section 207, from the allotment of such State under section 202(a). In the event the total requested in such applications (which meet the requirements established in regulations of the Commissioner) exceeds the amount of such allotment of such State available for such purpose, the total of the Federal capital contributions and loans from such allotment to each such institution shall bear the same ratio to the amount requested in its application as the amount of such allotment available for such purpose bears to the total requested in all such applications. In the event the total requested in such applications which are made by institutions in a State is less than the amount of the allotment of such State available for such purpose, the Commissioner may reallot the remaining amount from time to time, on such date or dates as the Commissioner may fix, to other States in proportion to the original allotments to such States under section 202 for such year.
(b) Sums allotted among States pursuant to section 202(b) shall be allocated among institutions within States in such manner as the Commissioner determines will best carry out the purposes of this Act.
"(c) The Federal capital contribution to an institution shall be paid to it from time to time in such installments as the Commissioner determines will not result in unnecessary accumulations in the student loan fund established under its agreement under section 204 of this title."
(c) (1) So much of section 206(a) of such Act as precedes paragraph (1) is amended by striking out "this title" and inserting in lieu thereof "an agreement pursuant to section 204".
(2) Paragraph (1) of such section 206 (a) is amended by striking out "the balance" and inserting in lieu thereof "such balance";
(3) Such section 206 is further amended by adding at the end thereof the following subsection:
"(d) Subsections (a) and (c) shall not apply to a separate student loan fund or account established by an institution pursuant to section 207(a)(2) of such Act with the proceeds of a loan to the institution from the national defense education loan fund, and subsection (b) shall not apply to amounts of principal or interest on student loans made from such separate student loan fund or account."
(d) (1) The amendments made by this section shall be effective in the case of payments to student loan funds made on or after June 30, 1967, or on or after the date of enactment of this Act, whichever date is later, except that such amendments shall not be effective with respect to payments pursuant to commitments (made prior to enactment of this Act) to make loans under section 207 of the National Defense Education Act of 1958 as in effect prior to the enactment of this Act.
(2) The Commissioner of Education is authorized, at the request of any institution, to take such steps as are necessary to convert a Federal capital contribution to a student loan fund of such institution, made pursuant to title II of the National Defense Education Act from funds appropriated pursuant to section 201 for the fiscal year ending June 30, 1968, to a loan under section 207 as amended by this Act.
PART E-AMENDMENTS TO NATIONAL DEFENSE FELLOWSHIP PROGRAM
EXTENSION OF PROGRAM
SEC. 471. (a) Section 402 (a) of the National Defense Education Act of 1958is amended by striking out "two succeeding fiscal years" and inserting in lieu thereof "seven succeeding fiscal years".
(b) Section 403 (a) of such Act is amended by striking out "three succeeding fiscal years" and inserting in lieu thereof "eight succeeding fiscal years".
INCREASING MAXIMUM LENGTH OF FELLOWSHIP FROM 3 TO 4 YEARS IN SPECIAL CIRCUMSTANCES, AND REQUIRING INSTITUTIONAL EFFORT TO ENCOURAGE RECIPIENTS TO ENTER OR CONTINUE TEACHING
SEC. 472. (a) Subsection (a) of section 402 of the National Defense Education Act of 1958 is amended by inserting "(1)" after "except" in the second sentence thereof, and by inserting immediately before the period at the end of such sentence the following: ", and (2) that the Commissioner may provide by regulation for the granting of such fellowships for a period of study not to exceed one academic year (or one calendar year in the case of fellowships to which clause (1) applies) in addition to the maximum period otherwise applicable, under special circumstances in which the purposes of this title would most effectively be served thereby".
(b) The Commissioner may in his discretion increase, in accordance with the amendment made by subsection (a), the maximum periods of fellowships awarded prior to the enactment of this Act.
(c) The second sentence of section 403 (a) is amended by striking out the period at the end of clause (2) of such sentence and inserting ", and" in lieu thereof; and by adding the following new clause:
"(3) that the application contains satisfactory assurance that the institution will make reasonable continuing efforts to encourage recipients of fellowships under this title, enrolled in such program, to teach or continue to teach in institutions of higher education."
(d) The amendment made by subsection (c) of this section shall be effective with respect to fellowships awarded on or after June 30, 1967, or on or after the date of enactment of this Act, whichever date is later.
REQUIRING STIPENDS TO BE SET IN AN AMOUNT CONSISTENT WITH THOSE AWARDED FOR COMPARABLE FELLOWSHIPS
SEC. 473. (a) Section 404 (a) of the National Defense Education Act of 1958 is amended to read as follows:
"SEO. 404. (a) The Commissioner shall pay to persons awarded fellowships under this title such stipends (including such allowances for subsistence and other expenses for such persons and their dependents) as he may determine to be consistent with prevailing practices under comparable federally supported programs."
(b) The amount of any stipend payable with respect to a fellowship awarded prior to the date of enactment of this Act shall not, during the period for which such fellowship was awarded, be less with respect to any year of study than the amount that would in the absence of the amendment made by subsection (a) of this section be payable with respect to such year.
PART F-ADVISORY COUNCIL ON STUDENT AID
ESTABLISHMENT OF ADVISORY COUNCIL ON ALL FINANCIAL AID TO STUDENTS; ABSORPTION OF ADVISORY COUNCILS ON INSURED LOANS
SEC. 481. (a) Title IV of the Higher Education Act of 1965 is amended by adding after part D the following new part:
"PART E-ADVISORY COUNCIL ON FINANCIAL AID TO STUDENTS
"SEC. 481. (a) There is established in the Office of Education an Advisory Council on Financial Aid to Students (hereafter in this section referred to as the 'Council'), consisting of the Commissioner, who shall be Chairman, and of members appointed by the Commissioner without regard to the civil service or classification laws. Such appointed members shall include leading authorities in the field of education, persons representing State and private nonprofit loan insurance programs, financial and credit institutions, and institutions of higher education and other eligible institutions as those terms may be variously defined in this Act, in the National Vocational Student Loan Insurance Act of 1965, or in the National Defense Education Act of 1958.
"(b) The Council shall advise the Commissioner on matters of general policy arising in the administration by the Commissioner of programs relating to financial assistance to students and on evaluation of the effectiveness of these programs.
"(c) Members of the Council who are not in the regular full-time employ of the United States shall, while attending meetings or conferences of the Council or otherwise engaged in the business of the Council, be entitled to receive compensation at a rate fixed by the Secretary, but not exceeding $100 per diem (or, if higher, the rate specified at the time of such service for grade GS-18 in section 5332 of title 5, United States Code), including traveltime, and while so serving on the business of the Council away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons employed intermittently in the Government service.
"(d) The Commissioner is authorized to furnish to the Council such technical assistance, and to make available to it such secretarial, clerical, and other assistance and such pertinent data available to him, as the Council may require to carry out its functions."
(b) (1) Section 433 of such Act, providing for establishment of an Advisory Council on Insured Loans to Students is repealed, and sections 434 and 435 are redesignated as sections 433 and 434, respectively.
(2) Section 15 of the National Vocational Student Loan Insurance Act of 1965, providing for establishment of an Advisory Council on Insured Loans to Vocational Students is repealed, and sections 16 and 17 of such Act are redesignated as sections 15 and 16, respectively.
TITLE V-EDUCATION PROFESSIONS DEVELOPMENT (AMENDMENTS TO TITLE V OF HIGHER EDUCATION ACT OF 1965)
STATEMENT OF PURPOSE
SEC. 501. It is the purpose of this title to coordinate, broaden, and strengthen programs for the training and improvement of the qualifications of teachers and other educational personnel for all levels of the American educational system so as to provide a better foundation for meeting the critical needs of the Nation for personnel in these areas.
AMENDMENTS TO PART A (GENERAL PROVISIONS) OF TITLE V OF HIGHER EDUCATION ACT OF 1955
SEC. 502. Title V of the Higher Education Act of 1965 is amended by
(a) striking out "TEACHER PROGRAMS" in the heading of such title and inserting in lieu thereof "EDUCATION PROFESSIONS DEVELOPMENT";
(b) redesignating section 502 as section 508; and
(c) striking out section 501 and inserting in lieu thereof the following sections:
"STATEMENT OF PURPOSE
"SEC. 501. The purpose of this title is to improve the quality of teaching and to help meet critical shortages of adequately trained educational personnel by (1) developing information on the actual needs for educational personnel, both present and long range, (2) providing a broad range of high quality training and retraining opportunities, responsive to changing manpower needs; (3) attracting a greater number of qualified persons into the teaching profession; (4) attracting persons who can stimulate creativity in the arts and other skills to undertake short-term or long-term assignments in education; and (5) helping to make educational personnel training programs more responsive to the needs of the schools and colleges.
"NATIONAL ADVISORY COUNCIL ON EDUCATION PROFESSIONS DEVELOPMENT
"SEC. 502. (a) There is hereby established in the Department of Health, Education, and Welfare a National Advisory Council on Education Professions Development (hereafter in this section referred to as the 'Council'), consisting of members appointed by the President without regard to the civil service and classification laws and, in addition, the Commissioner and one representative each from the National Science Foundation and the National Foundation on the Arts and the Humanities. The appointed members, one of whom shall be designated by the President as Chairman, shall include persons broadly representative of the fields of education, the arts, the sciences, and the humanities, and of the general public, and a majority of them shall be engaged in teaching or in the education of teachers.
"(b) The Council shall, in addition to performing the functions set forth in subsection (c), advise the Secretary and the Commissioner with respect to policy matters arising in the administration of this title and any other matters, relating to the purposes of this title, on which their advice may be requested.
"(c) The Council shall from time to time review the operation of this title and of all other Federal programs for the training and development of educational personnel and shall evaluate their effectiveness in meeting needs for additional educational personnel, and in achieving improved quality in training programs as evidenced in the competency of the persons receiving such training when entering positions in the field of education. The Council shall make annual reports of its findings and recommendations (including recommendations for changes in this title and other Federal laws relating to educational personnel training) to the Secretary for transmittal to the President, who shall transmit such reports to the Congress together with his comments and recommendations.
"(d) Members of the Council who are not in the regular full-time employ of the United States shall, while serving on the business of the Council, be entitled to receive compensation at rates fixed by the Secretary, but not exceeding $100 per day (or, if higher, the rate specified at the time of such service for grade GS-18 in section 5332 of title 5, United States Code), including traveltime, and, while so serving away from their homes or regular places of business, may be allowed
travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently.
"(e) The Secretary shall make available to the Council such technical, secretarial, clerical, and other assistance and such pertinent data prepared by the Department of Health, Education, and Welfare as it may require to carry out its functions. The Secretary may also assist the Council by utilizing for that purpose the services and facilities of any other agency of the Federal Government, in accordance with agreements (on a reimbursable basis or otherwise) between him and the head of such agency.
"APPRAISING EDUCATION PERSONNEL NEEDS
"SEC. 503. (a) The Commissioner shall from time to time appraise the Nation's existing and future personnel needs in the field of education, including preschool programs, elementary and secondary education, vocational and technical education, adult education, and higher education, and the adequacy of the Nation's efforts to meet these needs. In developing information relating to educational personnel needs, the Commissioner shail consult with the Department of Labor, the National Science Foundation, the National Foundation on the Arts and the Humanities, and other appropriate public and private agencies.
"(b) The Commissioner shall prepare and publish annually a report on the education professions, in which he shall present in detail his views on the state of the education professions and the trends which he discerns with respect to the future complexion of programs of education throughout the Nation and the needs for well-educated personnel to staff such programs. The report shall indicate the Commissioner's plans concerning the allocation of Federal assistance under this title in relation to the plans and programs of other Federal agencies.
"ATTRACTING QUALIFIED PERSONS TO THE FIELD OF EDUCATION
"SEC. 504. The Commissioner is authorized to make grants to, or contracts with, State or local educational agencies, institutions of higher education, or other public or nonprofit agencies, organizations, or institutions, or to enter into contracts with public or private agencies, institutions, or organizations, for the purpose of
"(a) identifying capable youth in secondary schools who may be interested in careers in education and encouraging them to pursue postsecondary education in preparation for such careers;
"(b) publicizing available opportunities for careers in the field of education;
"(c) encouraging qualified persons to enter or reenter the field of education; or
“(d) encouraging artists, craftsmen, artisans, scientists, and persons from other professions and vocations, and homemakers to undertake teaching or related assignments on a part-time basis or for temporary periods.
"SEC. 505. In the development and review of grant and contract programs under this title the Commissioner shall consult with the National Science Foundation and the National Foundation on the Arts and the Humanities to promote coordinated planning of programs to train educational personnel.
"TRANSFER OF FUNDS
"SEC. 506. In addition to the authority for utilization of other agencies conferred by section 803(b) of this Act, funds available to the Commissioner for grants or contracts under this title shall, with the approval of the Secretary, be available for transfer to any other Federal agency for use (in accordance with an interagency agreement) by such agency (alone or in combination with funds of that agency) for purposes for which such transferred funds could be otherwise expended by the Commissioner under the provisions of this title, and the Commissioner is likewise authorized to accept and expend funds of any other Federal agency for use under this title.