(4) subject to the specific limitations in this part, consent to the modification, with respect to rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision, of any note or other instrument evidencing a loan which has been insured under this part;

(5) enforce, pay, or compromise, any claim on, or arising because of, any such insurance; and

(6) enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption.

(b) The Commissioner shall, with respect to the financial operations arising by reason of this part

(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act;

(2) maintain with respect to insurance under this part an integral set of accounts (which shall be audited annually by the General Accounting Office in accordance with principles and procedures applicable to commercial corporate transactions, as provided by section 105 of the Government Corporation Control Act, except that the transactions of the Commissioner, including the settlement of insurance claims and of claims for payments pursuant to section 226, and transactions related thereto and vouchers approved by the Commissioner in connection with such transactions, shall be final and conclusive upon all accounting and other officers of the Government.

DEFINITIONS FOR REDUCED-INTEREST STUDENT LOAN INSURANCE

PROGRAM

SEC. 431. As used in this part

(a) The term "eligible institution" means either

(1) an institution of higher education; or

(2) a business or trade school, or technical institution or other technical or vocational school, in any State, which (A) admits as regular students only persons who have completed or left secondary school, (B) is legally authorized to provide, and provides within that State, a program of postsecondary vocational or technical education designed to fit individuals for useful employment in recognized occupations, and (C) is accredited by a nationally recognized accrediting agency or association listed by the Commissioner pursuant to this clause: Provided, however, That if the Commissioner determines that there is no nationally recognized accrediting agency or association qualified to accredit schools or a particular category, he shall appoint an advisory committee, composed of persons specially qualified to evaluate training provided by schools of that category, which shall prescribe the standards of content, scope, and quality which must be met by those schools in order for loans to students attending them to be insurable under this part and shall also determine whether particular schools meet those standards.

For the purpose of paragraph (2) the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determies to be reliable authority as to the quality of education or training offered.

(b) The term "eligible lender" means an eligible institution, or a financial or credit institution (including an insurance company) which is subject to examination and supervision by any agency of the United States or of any State.

(c) The term "line of credit" means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years.

PART C-COLLEGE WORK-STUDY PROGRAM EXTENSION AND AMENDMENTS, TRANSFER OF AUTHORITY, AND OTHER AMENDMENTS

SEC. 441. Effective July 1, 1965, part C of title I of the Economic Opportunity Act of 1964 (Public Law 88-452) is amended as follows:

(1) By striking out "Director" in the first sentence of section 122(a) and inserting in lieu thereof "Commissioner of Education (hereinafter in this part referred to as the 'Commissioner')", and by striking out "Director" wherever that word appears in the other provisions of such part C and inserting in lieu thereof "Commissioner";

(2) By amending that part of section 121 that follows the section designation to read as follows: "The purpose of this part is to stimulate and promote the part-time employment of students, particularly students from low-income families, in institutions of higher education who are in need of the earnings from such employment to pursue courses of study at such institutions."; (3) By redesignating clauses (2), (3), and (4), of paragraph (c) of section 124 as clauses (1), (2), and (3), and by striking out so much of such paragraph as precedes such redesignated clauses and inserting in lieu thereof the following: "(c) provide that in the selection of students for employment under such workstudy program preference shall be given to students from lowincome families and that employment under such work-study program shall be furnished only to a student who";

(4) By striking out "June 30, 1966," in paragraph (f) of section 124 and inserting in lieu thereof "June 30, 1967".

APPROPRIATIONS AUTHORIZED

SEC. 442. There are authorized to be appropriated $129,000,000 for the fiscal year ending June 30, 1966, and such sums as may be necessary for each of the four succeeding years, to carry out the purposes of part C of title I of the Economic Opportunity Act of 1964 (Public Law 88-452). Any sums which prior to the enactment of this Act, were appropriated for carrying out such part C of that title for the

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fiscal year ending June 30, 1966, or were allocated from an applicable appropriation for that purpose, and which have not been expended prior to the date of the enactment of this Act, shall be available to the Commissioner for carrying out such part C.

CONFORMING AMENDMENT

SEC. 443. Part D of title I of the Economic Opportunity Act of 1965 (Public Law 88-442) is amended to read as follows:

"PART D-AUTHORIZATION OF APPROPRIATIONS

"SEC. 131. The Director shall carry out the programs provided for in parts A and B of this title during the fiscal year ending June 30, 1965, and each of the two succeeding fiscal years, and he shall carry out the program provided for in part C of this title during the fiscal year ending June 30, 1965. For this purpose there is hereby authorized to be appropriated the sum of $412,500,000 for the fiscal year ending June 30, 1965; and for the fiscal year ending June 30, 1966, and the fiscal year ending June 30, 1967, such sums may be appropriated as the Congress may hereafter authorize by law."

PART D-EXTENSION OF NATIONAL DEFENSE STUDENT LOAN PROGRAM EXTENSION OF APPROPRIATION AUTHORIZATION

SEC. 461. The first sentence of section 201 of the National Defense Education Act of 1958 is amended

(1) by striking out "and" after "June 30, 1967," and inserting after "June 30, 1968," the following: "$225,000,000 for the fiscal year ending June 30, 1969, $250,000,000 for the fiscal year ending June 30, 1970, and $275,000,000 for the fiscal year ending June 30, 1971,"; and

(2) by striking out "and such sums for the fiscal year ending June 3, 1969, and each of the next three fiscal years as may be necessary to enable students who have received loans for school years ending prior to July 1, 1968, to continue or complete their education" and inserting in lieu thereof "and such sums for the fiscal year ending June 30, 1972, and each of the next three fiscal years as may be necessary to enable students who have received loans for school years ending prior to July 1, 1971, to continue or complete their education".

CONFORMING AMENDMENTS

SEC. 462. (a) Section 202 of such Act is amended by striking out "1968" wherever it occurs therein and inserting in lieu thereof "1971". (b) Section 206 of such Act is amended by striking out "1972" wherever it occurs therein and inserting in lieu thereof "1975".

TITLE V-GENERAL PROVISIONS

DEFINITIONS

SEC. 501. As used in this Act

(a) The term "institution of higher education" means an educational institution in any State which (1) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, (2) is legally authorized within such State to provide a program of education beyond secondary education, (3) provides an educational program for which it awards a bachelor's degree or provides not less than a two-year program which is acceptable for full credit toward such a degree, (4) is a public or other nonprofit institution, and (5) is accredited by a nationally recognized accrediting agency or association or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited. Such term also includes any business school or technical institution which meets the provisions of clauses (1), (2), (4), and (5). For purposes of this subsection, 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.

(b) The term "State" includes, in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, and the Virgin Islands.

(c) The term "nonprofit" as applied to a school, agency, organization, or institution means a school, agency, organization, or institution owned and operated by one or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

(d) The term "secondary school" means a school which provides secondary education as determined under State law except that it does not include any education provided beyond grade 12.

(e) The term "Secretary" means the Secretary of Health, Education, and Welfare.

(f) The term "Commissioner" means the Commissioner of Education.

METHOD OF PAYMENT

SEC. 502. Payments under this Act to any individual or to any State or Federal agency, institution of higher education, or any other organization, pursuant to a grant, loan, or contract, may be made in installments, and in advance or by way of reimbursement, and, in the case of grants or loans, with necessary adjustments on account of overpayments or underpayments.

FEDERAL ADMINISTRATION

SEC. 503. (a) The Commissioner is authorized to delegate any of his functions under this Act, except the making of regulations, to any officer or employee of the Office of Education.

(b) In administering the titles of this Act for which he is responsible, the Commissioner is authorized to utilize the services and facilities of any agency of the Federal Government and of any other public or nonprofit agency or institution, in accordance with agreements between the Secretary and the head thereof.

FEDERAL CONTROL OF EDUCATION PROHIBITED

SEC. 504. Nothing contained in this Act shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any educational institution, or over the selection of library resources by any educational institution.