as the Commissioner determines to be necessary to insure that the availability of assistance to students at the school under this title has not resulted, and will not result, in an increase in the tuition, fees, or other charges to such students. "(2) For the purposes of this subsection: "(A) The term 'school of nursing' means a public or other nonprofit collegiate or associate degree school of nursing. "(B) The term 'collegiate school of nursing' means રી department, division, or other administrative unit in a college or university which provides primarily or exclusively an accredited program of education in professional nursing and allied subjects leading to the degree of bachelor of arts, bachelor of science, bachelor of nursing, or to an equivalent degree, or to a graduate degree in nursing. (C) The term 'associate degree school of nursing' means a department, division, or other administrative unit in a junior college, community college, college, or university which provides primarily or exclusively an accredited two-year program of education in professional nursing and allied subjects leading to an associate degree in nursing or to an equivalent degree. "(D) The term 'accredited' when applied to any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Commissioner. (3) For the purposes of this subsection, the term 'proprietary institution of higher education' means a school (A) which provides not less than a six-month program of training to prepare students for gainful employment in a recognized occupation, (B) which meets the requirements of clauses (1) and (2) of section 1201 (a), (C) which does not meet the requirement of section clause (4) of section 1201 (a), (D) which is accredited by a nationally recognized accrediting agency or association approved by the Commissioner for this purpose, and (E) which has been in existence for at least two years. For purposes of this paragraph, the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of training offered. "(c) For the purposes of this title "(1) the term 'academic year' shall be defined by the Commissioner by regulations; and "(2) the term 'in attendance', when applied to a student, means a student who attends an institution of higher education at least on a half-time basis, as defined by the Commissioner by regu lation.". of 86 STAT. 260 Definitions. 79 Stat. 1269; 82 Stat. 1042; 84 Stat. 192. 20 USC 1141. "School or department of (d) (1) Section 1201 of the Higher Education Act of 1965 is amended by adding at the end thereof the following new paragraph: "(1) The term 'school or department of divinity' means an institution or a department or a branch of an institution the program instruction of which is designed for the education of students (A) to prepare them to become ministers of religion or to enter upon some divinity." other religious vocation (or to provide continuing training for any such vocation), or (B) to prepare them to teach theological subjects.". (2) The Higher Education Act of 1965 is amended by striking out the following provisions: (A) The second sentence of section 113; 79 Stat. 1227. 20 USC 1129. 82 Stat. 1046. 20 USC 1134j. 86 STAT. 261 79 Stat. 1237; 82 Stat. 1020. 20 USC 1074. 79 Stat. 1247. 20 USC 1085. 20 USC 1078. 82 Stat. 1024. 20 USC 1083. Effective date. 79 Stat. 1238. 20 USC 1075. 82 Stat. 1027. 79 Stat. 1241. 20 USC 1078. 82 Stat. 1027. Effective date. INSURED STUDENT LOANS-EXTENSION OF PROGRAM SEC. 132. (a) (1) The first sentence of section 424 (a) of the Higher Education Act of 1965 is amended to read as follows: "The total principal amount of new loans made and installments paid pursuant to lines of credit (as defined in section 435) to students covered by Federal loan insurance under this part shall not exceed $1,400,000,000 for the fiscal year ending June 30, 1972, $1,600,000,000 for the fiscal year ending June 30, 1973, $1,800,000,000 for the fiscal year ending June 30, 1974, and $2,000,000,000 for the fiscal year ending June 30, 1975." (2) Such section 424 (a) is further amended by striking out "June 30, 1975" and inserting in lieu thereof "June 30, 1979". (b) Paragraph (4) of section 428 (a) of such Act is amended (1) by striking out "June 30, 1971" and inserting in lieu thereof "June 30, 1975" and (2) by striking out "shall end at the close of June 30, 1975" and inserting in lieu thereof "shall end at the close of June 30, 1979". (c) Section 433 (c) of such Act is amended by striking out "two succeeding fiscal years" and inserting in lieu thereof "succeeding fiscal years ending prior to July 1, 1975". (d) The amendments made by this section shall be effective after June 30, 1971. INCREASE IN LOAN LIMITATION IN EXCEPTIONAL CASES SEC. 132A. (a) (1) Section 425 (a) of the Higher Education Act of 1965 is amended by striking out "$1,500" and inserting in lieu thereof the following: "$2,500, except in cases where the Commissioner determines, pursuant to regulations prescribed by him, that a higher amount is warranted in order to carry out the purposes of this part with respect to students engaged in specialized training requiring exceptionally high costs of education". (2) The second sentence of section 425 (a) of such Act is amended by inserting before the period a comma and the following: "in the case of any student who has not successfully completed a program of undergraduate education, and $10,000 in the case of any graduate or professional student (as defined by regulations of the Commissioner and including any loans which are insured by the Commissioner under this part or by a State or nonprofit institution or organization with which the Commissioner has an agreement under section 428 (b) made to such person before he became a graduate or professional student)". (b) (1) Section 428 (b) (1) (A) of such Act is amended (1) by striking out "$1,500" and inserting in lieu thereof the following: "$2,500, except in those cases where the Commissioner determines, pursuant to regulations prescribed by him, that a higher amount is warranted in order to carry out the purposes of this part with respect to students engaged in specialized training requiring exceptionally high costs of education)". (2) Section 428 (b) (1) (a) of such Act is further amended by inserting before the semicolon the following: "in the case of any student who has successfully completed a program of undergraduate education, and $10,000 in the case of any graduate or professional student (as defined by regulations of the Commissioner and including any loans which are insured by the Commissioner under this part or by a State or nonprofit institution or organization with which the Commissioner has an agreement under this part made to such person before he became a graduate or professional student).". (c) The amendments made by subsections (a) and (b) shall be effective with respect to loans made after the enactment of this Act, and insured by the Commissioner under part B of title IV of the Higher Education Act of 1965, or by a State or nonprofit private institution or organization with which the Commissioner has an agreement under section 428 (b) of such part. INSURANCE LIABILITY 86 STAT. 262 79 Stat. 1236. 20 USC 1071. Ante, p. 261. SEC. 132B. (a) Section 425 (b) of the Higher Education Act of 1965 79 Stat. 1238. is amended to read as follows: "(b) The insurance liability on any loan insured by the Commissioner under this part shall be 100 per centum of the unpaid balance of the principal amount of the loan plus interest. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under the provisions of section 430 or 437 of this part.". (b) Section 427 (a) (2) (D) of such Act is amended by striking out the following: "(but without thereby increasing the insurance liability under this part)". (c) The last sentence of section 430 (a) of such Act is amended by striking out "of the loan (other than interest added to principal)" and inserting in lieu thereof the following: "and interest". AMENDMENTS TO INTEREST SUBSIDY PROVISIONS 20 USC 1075. 82 Stat. 1020. 20 USC 1087. 20 USC 1077. 20 USC 1080. SEC. 132C. (a) Section 428 (a) (1) of the Higher Education Act of 20 USC 1078. 1965 is amended to read as follows: "(1) Each student who has received a loan for study at an eligible institution “(A) which is insured by the Commissioner under this part; "(B) which was made under a State student loan program (meeting criteria prescribed by the Commissioner), and which was contracted for, and paid to the student, within the period specified by paragraph (4); or "(C) which is insured under a program of a State or of a nonprofit private institution or organization which was contracted for, and paid to the student, within the period specified in paragraph (4), and which "(i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program which meets the requirements of subparagraph (E) of subsection (b) (1) and provides that repayment of such loan shall be in installments beginning not earlier than sixty days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) `at an eligible institution, or "(ii) in the case of a loan insured after June 30, 1967, is insured under a program covered by an agreement made pursuant to subsection (b), shall be entitled to have paid on his behalf and for his account to the holder of the loan a portion of the interest on such loan (in accordance with paragraph (2) of this subsection) only if at the time of execution of the note or written agreement evidencing such loan his adjusted family income is— "(I) less than $15,000 and the eligible institution at which he has been accepted for enrollment or, in the case of a student who is attending such an institution, at which he is in good standing (as determined by such institution)— "(a) has determined the amount of need for such loan by subtracting from the estimated cost of his attendance at such Ante, p. 261. 36-930 - 79-4 86 STAT. 263 Administration cost allowanoe payment. 79 Stat. 1242. 20 USC 1078. 20 USC 1077. 82 Stat. 1020. 20 USC 1087. Ante, p. 262. institution (which, for purposes of this paragraph, means the cost, for the period for which the loan is sought, of tuition, fees, room and board, and reasonable commuting costs) the expected family contribution with respect to such student plus any other resources or student aid reasonably available to such student, and "(B) has provided the lender with a statement evidencing the determination made under clause (I) (a) of this paragraph and recommending a loan in the amount of such need; or "(II) equal to or more than $15,000 and the eligible institution at which he has been accepted for enrollment or, in the case of a student who is attending such an institution, at which he is in good standing (as determined by such institution) "(a) has determined that he is in need of a loan to attend such institution, "(B) has determined the amount of such need by subtracting from the estimated cost of attendance at such institution the expected family contribution with respect to such student plus any other resources or student aid reasonably available to such student, and "(y) has provided the lender with a statement evidencing the determination made under clause (II) (B) of this paragraph and recommending a loan in the amount of such need. 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 student without regard to the borrower's need. For the purposes of this paragraph, the adjusted family income of a student shall be determined pursuant to regulations of the Commissioner in effect at the time of the execution of the note or written agreement evidencing the loan. Such regulations shall provide for taking into account such factors, including family size, as the ComInissioner deems appropriate. In the absence of fraud by the lender, such determination of the need of a student under this paragraph shall be final insofar as it concerns the obligation of the Commissioner to pay the holder of a loan a portion of the interest on the loan.". (b) Section 428 (b) (1) (H) of such Act is amended to read as follows: "(H) provides that the benefits of the loan insurance program will not be denied any student who has been determined (pursuant to section 428 (a) (1)) to be in need of a loan except in the case of loans made by an instrumentality of a State or eligible institution;". (c) Section 427(a)(1) of such Act is amended by striking out “, and (C) has provided the lender with a statement of the institution which sets forth a schedule of the tuition and fees applicable to that student and its estimate of the cost of board and room for such a student". TECHNICAL AMENDMENTS SEC. 132D. Section 437 of such Act is amended to read as follows: "REPAYMENT BY THE COMMISSIONER OF LOANS OF DECEASED OR DISABLED BORROWERS "SEC. 437. If a student borrower who has received a loan described in clause (A), (B), or (C) of section 428 (a) (1) dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Commissioner), then the Commissioner shall discharge the borrower's liability on the loan by repaying the amount owed on the loan.". (b) Paragraph (1) of section 428 (b) is amended (1) by striking out "and" at the end of clause (J) thereof, (2) by striking out the period at the end of clause (K) and inserting"; and" in lieu thereof, and (3) by adding at the end of such paragraph the following new clause: "(L) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid during any period (i) during which the borrower is pursuing a full-time course of study at an eligible institution, (ii) not in excess of three years during which the borrower is a member of the Armed Forces of the United States, (iii) not in excess of three years during which the borrower is in service as a volunteer under the Peace Corps Act, or (iv) not in excess of three years during which the borrower is in service as a full-time volunteer under title VIII of the Economic Opportunity Act of 1964." (c) Section 428 (e) of such Act is repealed. 86 STAT. 264 79 Stat. 1242; 82 Stat. 1027. 20 USC 1078. 81 Stat. 722. 42 USC 2991. (d) Paragraph (1) of subsection (c) of such section 428 is amended Repeal. by striking out "adjusted family income of the borrower" and inserting in lieu thereof "the borrower's lack of need”. (e) Section 434 of such Act is amended by striking out "up to 15 per centum of their assets,". ELIGIBILITY OF INSTITUTIONS SEC. 132E. (a) Part B of title IV of the Higher Education Act of 1965 is amended by adding at the end thereof the following new section: "ELIGIBILITY OF INSTITUTIONS 82 Stat. 1025. 20 USC 1078. 79 Stat. 1236; 82 Stat. 1020. 20 USC 1071. "SEC. 438. (a) Notwithstanding any other provision of this part, the Regulations. Commissioner is authorized to prescribe such regulations as may be necessary to provide for— "(1) a fiscal audit of an eligible institution with regard to any Audit. funds obtained from a student who has received a loan insured under this part, or insured by a State or nonprofit private institution or organization with which the Commissioner has an agreement under section 428 (b); 79 Stat. 1241. "(2) the establishment of reasonable standards of financial 20 USC 1078. responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid with respect to funds obtained from a student who has received a loan insured under this part, or insured by a State or nonprofit private institution or organization with which the Commissioner has an agreement under section 428 (b); "(3) the limitation, suspension, or termination of the eligibility under this part of any otherwise eligible institution, whenever the Commissioner has determined, after notice and affording an opportunity for hearing, that such institution has violated or failed. to carry out any regulation prescribed under this part. "(b) The Commissioner shall publish a list of State agencies which he determines to be reliable authority as to the quality of public postsecondary vocational education in their respective States for the purpose of determining eligibility for all Federal student assistance programs.". List of State agencies, publication. (b) The amendment made by subsection (a) shall be effective on Effective date. and after the sixtieth day following the enactment of this Act. |