ACADEMIC FACILITIES PROGRAM The Higher Education Act of 1965, Public Law 89-329, amended the Higher Education Facilities Act of 1963 as follows: (1) Authorizations for grants for the fiscal year ending June 30, 1966, were increased, under title I, from $230 million to $460 million, and under title II, from $60 million to $120 million. It is now understood that the fiscal year appropriation will not be increased to reflect the additional authorization. (2) The categorical limitation on types of facilities for institutions of higher education other than public community colleges and public technical institutes contained in section 106 of Public Law 88-204 has been removed. Structures, consequently, no longer needed to be especially designed for instruction or research in the natural or physical sciences, mathematics, modern foreign languages, or engineering, or for use as a library. (3) Effective after November 8, 1965, the interest rate on loans for construction of academic facilities under title III will be set at a maximum of 3 percent. The Office of Education will issue rules governing the applicable interest rate for loan increases where the original loan carried an interest rate established under Public Law 88-204. (4) The Commissioner of Education may transfer allotments between sections 103 and 104 under title I. (5) The Federal share under section 103 of title I has been revised to permit grants not in excess of 40 percent, in lieu of the fixed 40 percent required by Public Law 88-204. (6) Funds appropriated under title II are available for grants until the end of the second succeeding fiscal year. Funds appropriated under the title III are available for loans until the end of the next succeeding fiscal year. Consequently, title II funds are available for 3 years and title III funds are available for 2 years. Unobligated title I funds continue to be available in the next succeeding fiscal year. Fiscal year 1967 is witness to the emergence of State and other publicly controlled institutions as a major factor in the title III loan program. The reason would appear to lie in the favorable rate of interest charged on Federal loans at that during a period of extraordinarily high money rates in the capital market. Perhaps more subtlely but of significantly greater consequence is the enactment, after a customary interval, of enabling legislation by State and local government. The enactment of such legislation is becoming increasingly evident and, in addition to the patent success of the program, is opening the door to a virtually unlimited potential for Federal-State cooperation. (NOTE.-The following materials illustrate the dissemination activity undertaken by the officer of education with reference to the programs authorized under their various authorities with respect to aids provided students and institutions of higher education.) higher education How the Office of Education assists college students and colleges Compiled by the Bureau of Higher Education of the Office of Education Peter P. Muirhead, Associate Commissioner U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE Office of Education |