90th Congress, H. R. 16729 August 3, 1968 An Act To extend for two years certain programs providing assistance to students at institutions of higher education, to modify such programs, and to provide for planning, evaluation, and adequate leadtime in such programs. Be it enacted by the Senate and House of Representatives of the Higher educa United States of America in Congress assembled, EXTENSION OF STUDENT LOAN INSURANCE PROGRAMS tione 79 Stat. 1237. SECTION 1. (a) (1) Section 424 (a) of the Higher Education Act of 1965 is amended (A) in the first sentence by striking out "fiscal year ending June 30, 1968" and inserting in lieu thereof "period thereafter 20 USC 1074. ending October 31, 1968", and (B) in the second sentence by striking out "June 30, 1972" and inserting "October 31, 1968". (2) Section 428 (a) of such Act is amended by striking out "June 30, 20 USC 1078. 1968" and all that follows down through the period and inserting in lieu thereof "October 31, 1968." (b) (1) Section 5(a) of the National Vocational Student Loan Insurance Act of 1965 is amended (A) in the first sentence by striking out "and in each of the two succeeding fiscal years" and inserting in lieu thereof "in the fiscal year ending June 30, 1967, and in the period thereafter ending October 31, 1968", and (B) in the second sentence by striking out "June 30, 1972” and inserting in lieu thereof "October 31, 1968”, 79 Stat. 1038. 20 USC 984. 82 STAT. 634 82 STAT. 635 (2) Section 9(a) (4) of such Act is amended by striking out “June 20 USC 988. 30, 1968" and all that follows down through the period and inserting in lieu thereof "October 31, 1968." (3) Section 10(b) of such Act is amended by adding at the end 20 USC 989. thereof the following new sentence: "No loan may be made under this section after October 31, 1968." INCREASE OF MAXIMUM INTEREST RATE UNDER STUDENT LOAN SEC. 2. (a) (1) Section 427 (b) of the Higher Education Act of 1965 is amended by striking out "6 per centum" and all that follows and inserting in lieu thereof "7 per centum per annum on the unpaid principal balance of the loan." 79 Stat. 1240. 20 USC 1077. (2) Section 428 (b) (1) (E) of the Higher Education Act of 1965 is 20 USC 1078. amended by striking out "6 per centum" and inserting in lieu thereof 7 per centum". (b) (1) Paragraph (2) of section 428 (a) of the Higher Education Act of 1965 is amended by inserting "(A)" after "(2)" and by adding at the end of that subparagraph the following new subparagraph: "(B) When, due to State laws which do not permit an interest rate of 7 per centum per annum, and when the Commissioner determines that such statutory limitations threaten to impede the carrying out of the purposes of this part, he may authorize an administrative cost allowance, not to exceed 1 per centum per annum of the unpaid principal balance, for the term of any loan insured by the Commissioner under this part or under a State or private nonprofit student loan insurance program covered by an agreement under subsection (b). Such an administrative cost allowance may be paid on loans made during the period beginning on the date of enactment of this subparagraph and ending on October 31, 1968." (2) (A) Section 428 (a)(1) of such Act is amended by inserting after the first sentence the following new sentence: "In addition, the Commissioner shall pay an administrative cost allowance in the amount 54-998 O 71 - 50 20 USC 1078. 79 Stat. 1236. 20 USC 1071. 79 Stat. 1040. 20 USC 987. 20 USC 988. 82 STAT. 635 82 STAT. 636 79 Stat. 1037. 20 USC 981. established by paragraph (2) (B) of this subsection with respect to loans to any such student but without regard to the student's adjusted family income." (B) Section 428 (a) (2) (A) (as so designated by this section) is amended by inserting after the first sentence the following: "For purposes of the preceding sentence, the term 'interest' includes any administrative cost allowance paid pursuant to subparagraph (B).' (C) The second sentence of section 428 (a) (2) (A) of such Act is amended by inserting "and the administrative cost allowance payable under this subsection" after "determined". (D) Section 428 (a)(3) of such Act is amended by inserting "or of administrative cost allowances" after "interest". (3) Section 421 (b) (2) of such Act is amended by inserting "and administrative cost allowances" after "interest". (c) (1) Section 8(b) of the National Vocational Student Loan Insurance Act of 1965 is amended by striking out "6 per centum" and all that follows and inserting in lieu thereof "7 per centum per annum on the unpaid principal balance of the loan." (2) Section 9(b) (1) (E) of the National Vocational Student Loan Insurance Act of 1965 is amended by striking out "6 per centum” and inserting in lieu thereof "7 per centum". (d) (1) Paragraph (2) of section 9(a) of the National Vocational Student Loan Insurance Act of 1965 is amended by inserting "(A)" after "(2)" and by adding at the end of that subparagraph the following new subparagraph: B) When, due to State laws which do not permit an interest rate of 7 per centum per annum, and when the Commissioner determines that such statutory limitations threaten to impede the carrying out of the purposes of this Act, he may authorize an administrative cost allowance, not to exceed 1 per centum per annum of the unpaid principal balance, for the term of any loan insured by the Commissioner under this part or under a State or private nonprofit student loan insurance program covered by an agreement under subsection (b). Such an administrative cost allowance may be paid on loans made during the period beginning on the date of enactment of this subparagraph and ending on October 31, 1968." (2)(A) Section 9(a)(1) of such Act is amended by inserting after the first sentence the following new sentence: "In addition, the Commissioner shall pay an administrative cost allowance in the amount established by paragraph (2) (B) of this subsection with respect to loans to any such student but without regard to the student's adjusted family income." (B) Section 9(a) (2) (A) of such Act (as so designated by this section) is amended by inserting after the first sentence the following: "For purposes of the preceding sentence, the term 'interest' includes any administrative cost allowance paid pursuant to subparagraph (B)." (C) The second sentence of section 9(a) (2) (A) of such Act is amended by inserting "and the administrative cost allowance payable under this subsection" after "determined". (D) Section 9(a) (3) of such Act is amended by inserting "or of administrative cost allowances" after "interest". (3) Section 2(b) (2) of such Act is amended by inserting "and administrative cost allowances" after "interest". FEDERAL GUARANTY OF STUDENT LOANS INSURED UNDER NON-FEDERAL PROGRAMS SEC. 3. (a) Section 421 (a) of the Higher Education Act of 1965 79 Stat. 1236. is amended by striking out "and" before "(3)", and by inserting before 20 USC 1071. the period at the end of that subsection the following: ", and (4) to guarantee a portion of each loan insured under a program of a State or of a nonprofit private institution or organization which meets the requirements of section 428 (a) (1) (C)". (b) Section 428 of such Act is amended by adding after subsection (b) the following new subsection: "(c) (1) The Commissioner may enter into a guaranty agreement with any State or any nonprofit private institution or organization with which he has an agreement pursuant to subsection (b), whereby the Commissioner shall undertake to reimburse it, under such terms and conditions as he may establish, in an amount equal to 80 per centum of the amount expended by it in discharge of its insurance obligation, incurred under its loan insurance program, with respect to losses (resulting from the default, death, or permanent and total disability of the student borrower) on the unpaid balance of the principal (other than interest added to principal) of any insured loan with respect to which a portion of the interest (A) is payable by the Commissioner under subsection (a), or (B) would be payable under such subsection but for the adjusted family income of the borrower. "(2) The guaranty agreement 20 USC 1078. Provisions. "(A) shall set forth such administrative and fiscal procedures as may be necessary to protect the United States from the risk of unreasonable loss thereunder, to insure proper and efficient admin- 82 STAT. 636 istration of the loan insurance program, and to assure that due 82 STAT. 637 diligence will be exercised in the collection of loans insured under the program; "(B) shall provide for making such reports, in such form Reports; reoand containing such information, as the Commissioner may rea- ordkeeping. sonably require to carry out his functions under this subsection, and for keeping such records and for affording such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports; "(C) shall set forth adequate assurance that, with respect to so much of any loan insured under the loan insurance program as may be guaranteed by the Commissioner pursuant to this subsection, the undertaking of the Commissioner under the guaranty agreement is acceptable in full satisfaction of State law or regulation requiring the maintenance of a reserve; "(D) shall provide that if, after the Commissioner has made payment under the guaranty agreement pursuant to paragraph (1) of this subsection with respect to any loan, any payments are made in discharge of the obligation incurred by the borrower with respect to such loan (including any payments of interest accruing on such loan after such payment by the Commissioner), there shall be paid over to the Commissioner (for deposit in the fund established by section 431) such proportion of the amounts of such 20 USC 1081. payments as is determined (in accordance with regulations prescribed by the Commissioner) to represent his equitable share thereof, but shall not otherwise provide for subrogation of the United States to the rights of any insurance beneficiary: Provided, That, except as the Commissioner may otherwise by or pursuant to regulation provide, amounts so paid by a borrower on such a loan shall be first applied in reduction of principal owing on such loan; and "Insurance ben 79 Stat. 1244. 79 Stat. 1042. Ante, p. 635. 20 USC 988. 82 STAT. 637 82 STAT. 638 79 Stat. 1245. 20 USC 1081. 20 USC 1078. 20 USC 1082. "(E) may include such other provisions as may be necessary to promote the purposes of this part. "(3) To the extent provided in regulations of the Commissioner, a guaranty agreement under this subsection may contain provisions which permit such forbearance for the benefit of the student borrower as may be agreed upon by the parties to an insured loan and approved by the insurer. Nothing in this subsection shall be construed to require collection of the amount of any loan by the insurance beneficiary or its insurer from the estate of a deceased borrower or from a borrower found by the insurance beneficiary or its insurer to have become permanently and totally disabled. "(4) For purposes of this subsection "(A) the terms 'insurance beneficiary' and 'default' shall have the meanings assigned to them by section 430 (e), and "(B) permanent and total disability shall be determined in accordance with regulations of the Commissioner. "(5) In the case of any guaranty agreement entered into prior to October 31, 1968, with a State or nonprofit private institution or organization with which the Commissioner has in effect on that date an agreement pursuant to subsection (b) of this section, or section 9(b) of the National Vocational Student Loan Insurance Act of 1965, made prior to the date of enactment of this subsection, the Commissioner may, in accordance with the terms of this subsection, undertake to guarantee loans described in paragraph (1) which are insured by such State, institution, or organization and are outstanding on the date of execution of the guaranty agreement, but only with respect to defaults occurring after the execution of such guaranty agreement or, if later, after its effective date." 66 (c) Section 431 of such Act is amended (A) by inserting in the first sentence of subsection (a) or in connection with payments under a guaranty agreement under section 428 (c)," after "insured by him under this part"; (B) by inserting in the third sentence of subsection (a) ", or in connection with such guaranty agreements" after "insured by the Commissioner under this part"; and (C) by inserting in the first sentence of subsection (b) or in connection with any guaranty agreement made under section 428 (c)" after "insured by the Commissioner under this part". 66 (d) Section 432 (a) (5) of such Act is amended by inserting "or any guaranty agreement under section 428 (c)" after "such insurance". Approved August 3, 1968. 90th Congress, H. R. 18763 An Act To authorize preschool and early education programs for handicapped children. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Handicapped Children's Early Education Assistance Act". PROGRAM AUTHORIZED Handicapped Education Assist ance Aot. SEC. 2. (a) The Commissioner of Education (hereafter in this title. referred to as the "Commissioner") is authorized to arrange by contract, grant, or otherwise with appropriate public agencies and private nonprofit organizations, for the development and carrying out by such agencies and organizations of experimental preschool and early education programs for handicapped children which the Commissioner determines show promise of promoting a comprehensive and strength- 82 STAT. 901 ened approach to the special problems of such children. Such programs 82 STAT. 902 shall be distributed to the greatest extent possible throughout the Nation, and shall be carried out both in urban and in rural areas. Such programs shall include activities and services designed to (1) facilitate the intellectual, emotional, physical, mental, social, and language development of such children; (2) encourage the participation of the parents of such children in the development and operation of any such program; and (3) acquaint the community to be served by any such program with the problems and potentialities of such children. (b) Each arrangement for developing or carrying out a program authorized by this section shall provide for the effective coordination of each such program with similar programs in the schools of the community to be served by such a program. (c) No arrangement pursuant to this Act shall provide for the pay- Federal share. ment of more than 90 per centum of the cost of developing, carrying out, or evaluating such a program. Non-Federal contributions may be in cash or in kind, fairly evaluated, including, but not limited to, plant, equipment, and services. EVALUATION SEC. 3. The Commissioner shall conduct either directly or by contract with independent organizations a thorough and continuing evaluation of the effectiveness of each program assisted under this Act. DEFINITION OF HANDICAPPED CHILDREN SEC. 4. As used in this Act, the term "handicapped children” means mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, crippled, or other health-impaired children who by reason thereof require special education and related services. (777) |