XI. PROPOSED SCHOLARSHIP AID TO STUDENTS IN HIGHER EDUCATION

On January 21, 1963, Senator Hubert H. Humphrey, of Minnesota (for himself and Senators Ernest Gruening of Alaska, Edward V. Long of Missouri, and Claiborne Pell of Rhode Island), introduced S. 389, a bill to establish a program of scholarship aid to students in higher education. The bill was referred to the Committee on Labor and Public Welfare.

S. 389 was specifically included among the bills on which the Senate Subcommittee on Education held hearings in April, May, and June, 1963. No further action was taken on S. 389 in 1963, leaving the proposal for scholarship aid to students in higher education pending before Congress in January 1964.

Following is a digest of S. 389:

Student Aid Act

Authorizes annual appropriations for Federal scholarships beginning in fiscal 1964 with $46 million and increasing by $46 million each year to $184 million in fiscal 1967 and thereafter. Provides that this money shall be used for scholarships awarded to high school students in the several States for pursuit of higher education, without any discriminations as to sex, creed, or race. Allots State quotas for scholarships as follows: One-half among the States in percentages equal to the percentage the State's high school graduates bears to the national total of high school graduates for the year; and the remaining one-half shall be allotted in the proportion that the State's population between 18-21 bears to the national total population of that age.

The recipients must (1) be a high school graduate, (2) not be eligible for veterans' educational training, (3) apply in accordance with State rules, and (4) not have had any Federal scholarship vacated except for good cause.

Requires each State desiring to participate to establish a commission on Federal scholarships and submit it to the Commissioner of Education for approval.

Provides for the State commission, in accordance with objective tests and other measures prescribed by the Commissioner of Education, to make its selection on the basis of intellectual capacity and financial need. The scholarship stipend shall be uniform and not in excess of $1,500 a year or 4 years duration. Requirements for continuance shall be (1) continued financial need, (2) full-time attendance, and (3) no scholarship aid from other sources.

Administration of this act shall be under the Commissioner of Education.

97

XII. PROPOSED LOAN INSURANCE ON STUDENT LOANS

In his message to Congress on education on January 29, 1963, and in the National Education Improvement Act which he transmitted to Congress with that message, President Kennedy proposed a loan insurance program "for students who cannot meet the financial criteria under the NDEA loan program." The proposal was presented in H.R. 3000, S. 580, and identical bills, in the form of an amendment to the NDEA. Detailed information has already been given in this report concerning these bills, parts of which were, in substance, enacted in 1963. (For information concerning enacted amendments to the NDEA see "National Defense Education Act (NDEA) Amendments and Extension," in pt. 1 of this report; for information concerning proposed NDEA amendments pending in January 1964 see "Proposed National Defense Education Act (NDEA) Amendments" in pt. 2.)

Two other bills containing student loan insurance proposals not offered as amendments to the National Defense Education Act, were considered by the Senate Subcommittee on Education in 1963.

On January 21, 1963, Senator Hubert H. Humphrey, of Minnesota (for himself and Senators J. W. Fulbright, of Arkansas, Ernest Gruening, of Alaska, Edward V. Long, of Missouri, and Claiborne Pell, of Rhode Island), introduced S. 390, the Student Loan Insurance Act of 1963, proposing to provide for loan insurance on loans to students in higher education. An identical bill, S. 1115, was introduced on March 15, 1963, by Senator Vance Hartke, of Indiana. Both of these bills were referred to the Committee on Labor and Public Welfare.

S. 390 and H.R. 1115 were specifically included among the bills on which the Senate Subcommittee on Education held hearings in April, May, and June, 1963. No further action was taken on S. 390 and H.R. 1115 in 1963, leaving the proposal expressed in these bills a question before Congress in January 1964. Following is a digest of these identical bills:

Student Loan Insurance Act

Provides for loan insurance on loans to students in higher education.

Limits new loans to $100 million per fiscal year. Limits to $1,000 the amount of a loan to any single student in any fiscal year and the aggregate unpaid principal amount of any single student to $5,000.

Sets forth eligibility requirements to be met by student borrowers as well as the terms of the loans to include interest at 4 percent, and repayable within 10 years after the student ceases his education.

Establishes a revolving fund in the Treasury into which the premiums and all other moneys derived under this act shall be deposited. Authorizes the appropriation of $500,000 for the initial establishment of the revolving fund.

XIII. AMENDING THE LIBRARY SERVICES ACT OF 1956

In his message to Congress on education on January 29, 1963, President Kennedy said that the public library is an important resource for continuing education, but that 18 million people in this Nation in 1963 had no access to any local public library service, and over 110 million more had only inadequate service. He said that advanced age, lack of space, and lack of modern equipment characterized American public library buildings in 1963, and that the public library building is usually one of the oldest governmental structures in use in any community.

The President recommended enactment of legislation to amend the Library Services Act of 1956 by authorizing a 3-year program of grants for urban as well as rural libraries and for construction as well as operation of libraries."

President Kennedy's proposals for Federal assistance for public libraries were incorporated in title VI, part C, of the National Education Improvement Act of 1963, which was introduced on January 29, 1963 in the Senate by Chairman Wayne Morse, of the Subcommittee on Education (for himself and other Senators), as S. 580; and in the House by Chairman Adam C. Powell, of the Committee on Education and Labor, as H.R. 3000. The bill was also introduced in the House on January 29, 1963, as H.R. 3001 by Hon. Carl D. Perkins; as H.R. 3002 by Hon. Edith Green; as H.R. 3003 by Hon. James Roosevelt; as H.R. 3004 by Hon. Carlton R. Sickles; and on January 31, 1963, as H.R. 3183 by Hon. Thomas P. Gill.

Information concerning the hearings and other action on the National Education Improvement Act of 1963 has already been given in this report. 45

A. ACTION ON HOUSE AND SENATE BILLS

H.R. 4879, a bill incorporating the language of H.R. 3000, title VI, part C, to amend the Library Services Act to increase Federal assistance for the improvement of public libraries, was introduced by the Honorable John H. Dent, of Pennsylvania, on March 14, 1963. The bill was referred to the Committee on Education and Labor. It was reported from that committee on August 5, 1963 (Rept. 635). The bill was laid on the table on January 21, 1964, when S. 2265 was passed in lieu.

S. 2265, a bill to amend the Library Services Act in order to increase the amount of assistance under such act and to extend such assistance to nonrural areas, was introduced by Senator Wayne Morse, of Oregon, on October 29 (legislative day, October 22), 1963, and referred to the Committee on Labor and Public Welfare. It was reported from that committee on October 29, 1963 (Rept. 562). The reported bill contained essentially the language of title VI-C of the National

44 88th Cong., 1st sess., H. Doc. 54, p. 13.

45 For details see pt. 1, including Senate action on vocational education legislation: II, C, 2.

Education Improvement Act of 1963. S. 2265 passed the Senate by record vote on November 26, 1963.46 It passed the House, amended, on January 21, 1964.47 The Senate agreed to the House amendments on January 29, 1964. The bill was approved on February 11, 1964, and became Public Law 88-269, the Library Services and Construction Act.

In signing the act President Johnson said in part:

This act importantly expands a program which helps make library services available to 30 million Americans in rural areas-38 million. It authorizes efforts to strengthen inadequate urban libraries. This act authorizes for the first time grants for the construction and renovation of library buildings. * * *

The library is the best training ground for enlightenment that rational man has ever conceived, and I am so happy that the enlightened Members of Congress and others who supported their activities can participate in this ceremony this morning which they and their children and their children's children will always be proud of.

B. PRINCIPAL PROVISIONS OF THE LIBRARY SERVICES

AND CONSTRUCTION ACT

Public Law 88-269 amends the Library Services Act of 1956

(1) By increasing Federal financial assistance to promote the development of public library service (title I) to all areas (urban and rural) without public library services or with inadequate services;

(2) By adding a new provision for Federal assistance for the construction of public library buildings (title II) in areas lacking the facilities necessary for the development of library services. The act provides that the State library administrative agency in each State prepare State plans and submit these to the U.S. Commissioner of Education for approval. The determination of the best uses of the funds provided is reserved to the States and their local subdivisions.

The act provides for the Federal funds to be allotted to the States in proportion to their population and to be matched by the States in proportion to their per capita income with 66 percent as the maximum Federal share and 33 percent as the minimum Federal share. Any portion of a State's allotment for either title which will not be required to carry out the State plan for any year is made available for reallotment to other States having a need for additional funds for that purpose.

TITLE I-SERVICES

Funds may be used for salaries, books and other library materials. library equipment and other operating expenses, including costs of administering the State plan for construction. The act authorizes $25 million for fiscal 1964 and such sums as Congress may determine for fiscal years 1965 and 1966.

Title I is effective July 1, 1964, for both urban and rural areas; it is effective during fiscal year 1964 for rural areas only (places of less than 10,000 population).

To remain eligible for a Federal grant, a State must maintain its expenditures for all public library service at least at the same level

40 Congressional Record (daily edition), Nov. 26, 1963, p. 2162. 47 Congressional Record (daily edition), Jan. 21, 1964, p. 735.

as in fiscal 1963; and State and local expenditures for public library service must not fall below the 1963 level.

TITLE II-CONSTRUCTION

Construction is defined as meaning the construction of new public library buildings and the expansion, remodeling, and alteration of existing buildings for public libraries and initial equipment of such buildings. The act authorizes $20 million for fiscal 1964 and such sums as the Congress may determine for fiscal years 1965 and 1966.

Title II is effective in fiscal 1964 for both urban and rural areas. The basic allotment is $80,000 for each of the States, Puerto Rico, and the District of Columbia, and $20,000 each for American Samoa, Guam, and the Virgin Islands but payments of lesser amounts may be made.