"(K) provides that the total of the payments by a borrower during any year of any repayment period with respect to the aggregate amount of all loans to the borrower which are insured under the program shall not be less than $360 or the balance of all such loans (together with interest thereon), whichever amount is less."

(d) (1) The amendments made by this section shall apply to loans made on or after the sixtieth day after the date of enactment of this Act. In computing the maximum amounts which may be borrowed by a student, and the minimum amounts of repayment allowable with respect to sums borrowed by a student, after such sixtieth day there shall be included all loans, whenever made, insured pursuant to the insurance program under which the computation is made.

(2) Paragraph (1) of this subsection shall not apply so as to require violation of any commitment for insurance made to an eligible lender, or of any line of credit granted to a student prior to such sixtieth day or, except with the consent of the State or nonprofit private agency concerned, impair the obligation of any agreement made pursuant to section 428 (b) of the Higher Education Act of 1965 or section 9(b) of the National Vocational Student Loan Insurance Act of 1965. EXTENSION OF FEDERAL LOAN INSURANCE PROGRAM

SEC. 423. (a) Subsection (a) of section 424 of the Higher Education Act of 1965 is amended (1) in the first sentence by striking out "and $1,400,000,000 in the fiscal year ending June 30, 1968" and inserting in lieu thereof "and such limitation in the six succeeding fiscal years as may be specified in appropriations Acts, except that in the fiscal year ending June 30, 1968, such amount shall not exceed the lesser of any such limitation specified for that year and $1,400,000,000"; and (2) in the second sentence by striking out “1972” and inserting in lieu thereof "1977".

(b) Subsection (a) of section 5 of the National Vocational Student Loan Insurance Act of 1965 is amended (1) in the first sentence by striking out "and in each of the two suceeding fiscal years" and inserting in lieu thereof "and such limitations as may be specified in appropriations Act for each of the seven succeeding fiscal years, except that for the fiscal year ending June 30, 1968, such amount shall not exceed the lesser of such limitation and $75,000,000"; and (2) in the second sentence by striking out "1972" and inserting in lieu thereof "1977".

TECHNICAL CORRECTIONS

SEC. 424. (a) (1) Section 2(a) of the National Vocational Student Loan Insurance Act of 1965 is amended by striking “9(a)(1) (A)" and inserting in lieu thereof "9 (a) (1) (C)”.

(2) Section 5 of such Act is amended (A) by inserting "FEDERAL" before "LOAN INSURANCE" in the caption, and (B) by inserting, in subsection (a), “Federal" before "insurance" in the first sentence and "Federal" before "insurance pursuant to this part" in the second sentence.

(3) Section 6 of such Act is amended (A) by inserting "UNDER FEDERAL INSURANCE PROGRAM" in the caption after "LIMITATIONS". (B) by inserting "Federal" before "insurance" in the first sentence of subsection (a), and (C) by inserting "federally" before "insured" in the first sentence of subsection (b). (4) Section 8 of such Act is amended (A) by inserting "UNDER FEDERAL INSURANCE PROGRAM" after "LOANS" in the caption, and (B) by inserting "by the Commissioner" after "insurable" in the introductory phrase of subsection (a). (5) Clause (A) of the first sentence of section (a)(1) of such Act is amended by inserting "by the Commissioner" after the word "insured".

(b) The second sentence of 435(a) of the Higher Education Act of 1965, as amended by the International Education Act of 1966 to make students in comparable institutions abroad eligible under the reduced-interest loan insurance program, is further amended by inserting ", with respect to students who are nationals of the United States," after "Such term includes".

PART C-AMENDMENTS TO COLLEGE WORK-STUDY PROGRAM

EXTENSION OF PROGRAM

SEC. 431. The first sentence of section 442 of the Higher Education Act of 1965 is amended (1) by striking out "and" before "$200,000,000”, and (2) by inserting

after "June 30, 1968," the following: "and such sums as may be necessary for the next five fiscal years,".

EIGHTY PER CENTUM FEDERAL MATCHING

SEC. 432. (a) Paragraph (f) of section 124 of the Economic Opportunity Act of 1964 is amended by striking out "75 per centum" and inserting in lieu thereof "80 per centum".

(b) The amendment made by the preceding subsection shall be effective with respect to work performed by a student on or after August 21, 1967, or on or after the date of enactment of this Act, whichever date is later.

AUTHORIZING WORK-STUDY EMPLOYMENT OF FORTY HOURS A WEEK FOR STUDENTS ENROLLED IN CLASSES DURING VACATION PERIODS

SEC. 433. (a) Paragraph (d) of section 124 of the Economic Opportunity Act of 1964 is amended to read as follows:

"(d) provide that no student shall be employed under such work-study program for more than fifteen hours in any week in which classes in which he is enrolled are in session, except that, to the extent and in accordance with criteria established by or pursuant to regulations of the Commissioner, such maximum work week shall be forty hours with respect to classes conducted in vacation or comparable periods of additional or nonregular enrollment (as respects the particular student) ;”.

(b) The amendment made by the preceding subsection shall be effective with respect to work performed on or after the date of enactment of this Act.

REVISING MAINTENANCE-OF-EFFORT REQUIREMENT TO TAKE INTO ACCOUNT ADDITIONAL FORMS OF INSTITUTIONAL STUDENT AID

SEC. 434. (a) Paragraph (e) of section 124 of the Economic Opportunity Act of 1964 is amended to read as follows:

"(e) provide assurance that in each fiscal year during which the agreement remains in effect the institution will expend in its own programs of student assistance (including student assistance through employment of its students, whether or not in employment eligible for assistance under this part), exclusive of any component of such expenditures representing payment to the institution of Federal financial assistance as determined in accordance with regulations of the Commissioner, an amount that is not less than its average annual expenditure for such purposes during the three fiscal years preceding the fiscal year in which the agreement is entered into ;".

(b) The amendment made by the preceding subsection shall be effective with respect to grants made under any agreement on or after the effective date of the enactment of this Act, or after June 30, 1968, whichever is later.

AUTHORIZING PROPRIETARY INSTITUTIONS TO CONDUCT WORK-STUDY PROGRAMS FOR OFF-CAMPUS WORK OF THEIR STUDENTS FOR PUBLIC OR PRIVATE NONPROFIT ORGANIZATIONS

SEC. 435. (a) Paragraph (a) of section 124 of the Economic Opportunity Act of 1964 is amended by inserting after "work for the institution itself" the folowing: "but only in the case of a public or other nonprofit institution,”.

(b) Paragraph (1) of section 123 (b) of such Act is amended (1) by striking out "(D) is a public or other non-profit institution," in the first sentence thereof; (2) by striking out "(D)," in the second sentence of such paragraph; and (3) by striking out “(E)" wherever it appears in such paragraph and inserting "(D)" in lieu thereof.

(c) Paragraph (1) of section 122(b) is amended by striking out all of that paragraph following the words "full-time basis" the first time these words occur, and inserting in lieu thereof the following: "in public or other nonprofit institutions of higher education in such State bears to the total number of persons enrolled on a full-time basis in such institutions in all the States,".

(d) The amendments made by this section shall be effective only with respect to work performed on or after the date of enactment of this Act, or after June 30, 1967, whichever is later.

PROVIDING FOR INSTITUTIONAL EXPENSES OF ADMINISTRATION OF COOPERATIVEEDUCATION DEMONSTRATION PROGRAMS

SEC. 436. (a) Sections 125 and 126 of the Economic Opportunity Act of 1964 are redesignated as sections 126 and 127, respectively, and the following new section is inserted immediately following section 124:

"USE OF WORK-STUDY FUNDS FOR ADMINISTRATIVE EXPENSES OF COOPERATIVEEDUCATION PROGRAMS

"SEC. 125. (a) An agreement entered into pursuant to section 124 may also include provisions authorizing the institution, to the extent and under terms and conditions prescribed by the Commissioner by or pursuant to regulation, to use, out of the sums granted to it under section 123, a portion for its administrative expenses (which for this purpose may, among other expenses, include expenses of counseling and guidance, placement, and consulting services) in developing or carrying out a program, described in such agreement, to demonstrate or explore the feasibility or value of methods of cooperative education involving alternative periods of full-time academic study at the institution and periods of full-time public or private employment (whether or not afforded by an organization described in section 124 (a)) approved or arranged for by the institution under such program. The Commissioner may, if in his judgment it would promote efficiency and economy to do so, prescribe regulations applicable both to administrative expenses for which an institution may use work-study funds under this section and to administrative expenses for which it may use such funds under section 124 (b) and to the determination of the amounts allowable for such expenses from such funds, and such regulations shall, to the extent (if any) provided therein, supersede with respect to administrative expenses referred to in section 124 (b) the limitations specified therein.

“(b) The question of the authority of the institution to use funds obtained under section 123 to pay for particular work performed by a student under a cooperative-education program covered under this section by an agreement with the Commissioner shall be determined solely by reference to the provisions included in the agreement pursuant to section 124."

(b) Section 124 (b) of such Act is amended by inserting "except as otherwise provided under section 125," before "provide".

WORK-STUDY PROGRAM RECONSTITUTED AS PART C OF TITLE IV, HIGHER EDUCATION ACT OF 1965

SEC. 437. (a) The purpose of this section is to reconstitute part C of title I of the Economic Opportunity Act of 1964 (as amended by the foregoing sections of this Act) as part C of title IV of the Higher Education Act of 1965, without substantive change.

(b) (1) So much of part C of title IV of the Higher Education Act of 1965 (including the heading of such part) as precedes section 442 thereof is deleted (but without thereby affecting the amendments heretofore made by that part to parts C and D of title I of the Economic Opportunity Act of 1964); (2) such section 442 (as amended by this Act) and references thereto, are redesignated as section 448; (3) part C of title I of the Economic Opportunity Act of 1964 (as amended by the foregoing sections of this Act) is deleted from that Act (but without repeal thereof) and is inserted (as captioned) as part C in title IV of the Higher Education Act of 1965 immediately before the section of such title redesignated as section 448; and (4) the sections so transferred (which are numbered 121, 122, 123, 124, 125, 126, and 127), and internal cross-references therein to any such section, are redesignated as sections 441, 442, 443, 444, 445. 446, and 447, respectively.

(c) Wherever in any law, rule, regulation, order, or agreement of the United States (including the first sentence of the section redesignated by paragraph (1) as section 448 of title IV of the Higher Education Act of 1965), reference is made, however styled, to part C of title I of the Economic Opportunity Act of 1964, or to any section thereof, such reference is amended so as to make comparable refer ence to part C of title IV of the Higher Education Act of 1965, or to such section of that part as redesignated herein, respectively.

(d) Subject to the provisions of subsection (c), any order, rule, regulation, right, agreement, or application in effect under C of title I of the Economic Op

portunity Act of 1964 immediately prior to the enactment of this Act, shall continue in effect to the same extent as if this section had not been enacted.

(e) (1) The section of title IV of the Higher Education Act of 1965 redesignated by this section as section 448 of that title, as amended by this Act, is further amended by deleting all that follows the first sentence of that section but without thereby affecting the effect of such deleted matter.

(2) Appropriations made for carrying out part C of title I of the Economic Opportunity Act of 1964 which is reconstituted by this section as part C of title IV of the Higher Education Act of 1965 shall be deemed made for carrying out such part C of such title IV.

PART D-AMENDMENTS TO NATIONAL DEFENSE STUDENT LOAN PROGRAM

EXTENSION OF PROGRAM

SEC. 451. (a) Section 201 of the National Defense Education Act of 1958 is amended (1) by striking out "and" before "$225,000,000", (2) by inserting after "June 30, 1968," the following: "and such sums as may be necessary for such of the five succeeding fiscal years;" and (3) by striking out "and such sums for the fiscal year ending June 30, 1969" and inserting in lieu thereof "and there are further authorized to be appropriated such sums for the fiscal year ending June 30, 1974".

(b) Section 202 of such Act is amended by striking out "1968" in subsections (a) and (b) and inserting in lieu thereof "1973”.

(c) Section 206 of such Act is amended by striking out "1972" each time it appears in subsections (a), (b), and (c) of such section, and inserting in lieu thereof "1977".

MAKING 10 PER CENTUM LOAN CANCELLATION APPLICABLE TO TEACHER SERVICE FOR CERTAIN SPECIAL PROGRAMS CONDUCTED BY NONPROFIT INSTITUTIONS

SEC. 452. (a) So much of paragraph (3) of section 205(b) of the National Defense Education Act of 1958 as precedes clause (A) thereof is amended by inserting the following immediately before "at the rate of 10 per centum": "or for comparable service as a full-time teacher in a program of special (including preschool) education or training designed to combat disadvantage, poverty, or unemployment which is conducted by such a school or institution or by another public or nonprofit agency, institution, or organization in a State,".

(b) The amendments made by this section shall apply with respect to teaching service performed during academic years beginning on or after the date of enactment of this Act, whether the loan was made on, before, or after such date.

ENCOURAGING AVAILABILITY OF NON-FEDERAL CAPITAL FOR NATIONAL DEFENSE STUDENT LOANS BY ESTABLISHING A REVOLVING FUND FROM WHICH INSTITUTIONS MAY OBTAIN LOANS TO CAPITALIZE STUDENT LOAN FUNDS, AND PROVIDING FOR ALLOTMENT OF FEDERAL CAPITAL CONTRIBUTIONS TO SUCH FUNDS

SEC. 453. (a) (1) Section 207 of the National Defense Education Act of 1958 (relating to loans to institutions to help finance their student loan funds) is amended to read as follows:

"LOANS TO INSTITUTIONS; REVOLVING FUND

"Loans to Institutions

"SEC. 207. (a) (1) During the period of six fiscal years beginning with the fiscal year ending June 30, 1968, the Commissioner may make loans, from the National Defense Education Loan Fund estiblished by subsection (d), to institutions of higher education to provide all or part of the capital needed by them for making loans to students (other than capital needed to finance the institutional contribution to a student loan fund established with the aid of Federal capital contributions pursuant to an agreement under section 204). Loans to students from such borrowed sums shall be subject to the terms, conditions, and limitations set forth in section 205. The requirement in section 204 (2) (B) with respect to institutional contributions to student loan funds established under that section shall not apply to loans made to institutions under this section.

"(2) Loans to institutions under this section may be made upon such terms and conditions, consistent with applicable provisions of section 204, as the Commissioner deems appropriate, including a requirement that the proceeds of such loan be deposited by the institution in a separate student loan fund established and maintained, in accordance with regulations, solely for operations on connection therewith (or, in accordance with such regulations, in a segregated account so established and maintained within a student loan fund established pursuant to an agreement under section 204, in which event such account shall be treated as a separate fund for the purposes of this title). If the Commissioner deems it to be necessary to assure that the purposes of this section will be achieved, these terms and conditions may also include provisions making the institution's obligation to the Commissioner on such a loan payable solely from such revenues or other assets or security (including collections on loans to students) as the Commissioner may approve. Such a loan shall bear interest at a rate which the Commissioner determines to be adequate to cover (A) 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, (B) the estimated cost of administering this section, and (C) probable losses.

"PAYMENTS TO INSTITUTIONS TO COVER CERTAIN COSTS INCURRED IN MAKING STUDENT LOANS FROM BORROWED FUNDS

"(b) If an institution of higher education borrows from the Commissioner from the national defense education loan fund established under subsection (d), the Commissioner shall agree to pay to the institution (1) an amount equal to 90 per centum of the loss to the institution from defaults on student loans made from the student loan fund (or account) established pursuant to paragraph (2) of subsection (a), (2) the amount by which the interest payable by the institution on the Commissioner's loan exceeds the interest received by it on student loans made from such student loan fund (or account), (3) an amount equal to so much of the expenses of the institution arising out of its operation of such student loan fund (or account) as would be allowable under paragraphs (3) (C) and (D) of section 204 if such fund (or account) were established under that section, and (4) the amount of principal which is canceled persuant to section 205(b) (3) with respect to student loans made from such student loan fund (or account). There are authorized to be appropriated without fiscalyear limitations such sums as may be necessary to carry out the purposes of this subsection.

"LIMITATION ON LOANS FROM REVOLVING FUND

"(c) The total of the loans made in any fiscal year from the national defense education loan fund established by subsection (d) shall not exceed such limitations as may be specified for such year in Appropriation Acts.

"REVOLVING FUND

"(d) (1) There is hereby created within the Treasury a national defense education loan fund (hereafter in this section called the fund) which shall be available to the Commissioner without fiscal-year limitation as a revolving fund for the purposes of this section. A business-type budget for the fund shall be prepared, transmitted to the Congress, considered and enacted in the manner prescribed by law (sections 102, 103, and 104 of the Government Corporation Control Act, 31 U.S.C. 847-849) for wholly owned Government corporations.

"(2) The fund shall consist of appropriations paid into the fund pursuant to section 201, all amounts received by the Commissioner as interest payments or repayments of principal on loans, and any other moneys, property, or assets derived by him from his operations in connection with this section (other than subsection (b)), including any moneys derived directly or indirectly from the sale of assets, or beneficial interests or participations in assets, of the fund.

"(3) All loans, expenses (other than normal administrative expenses), and payments pursuant to operations of the Commissioner under this section (other than subsection (b)) shall be paid from the fund, including (but not limited to) expenses and payments of the Commissioner in connection with the sale, under section 302 (c) of the Federal National Mortgage Association Charter Act, of