per c. Interest. The loan is to bear interest at three cent per year on the unpaid balance beginning with the date on which repayment of the loan is to begin. d. Repayment. Begins 1 year after a borrower ceases to pursue a full-time course of study at an institution of higher education, and ends 11 years thereafter, unless the repayment period is extended for good cause shown. The borrower may, however, accelerate his repayments. Sec. *425 (b) (2) e. Waiver of interest and postponement of payment. *425 (b) (2) Interest is to be waived and payment postponed while the borrower is attending an institution of higher education, and during any period, not to exceed three years, during which the borrower is a member of the Armed Forces or the Peace Corps. f. Cancellation for service as a teacher. Up to onehalf of any loan (plus interest) is canceled for service as a full-time teacher in a public elementary or secondary school in a State, at the rate of 10 percent of the amount of the loan (which is unpaid at the time the teaching service begins) plus interest for each complete academic year of such service. 425 (b) (3) g. Cancellation upon death or disability. Upon the 425 (b) (6) death or permanent and total disability of the borrower, the loan is canceled. h. Nature of student contracts. The loan must be evidenced by note or other writing, but no security or endorsement may be required unless the borrower is a minor or not legally able to create a binding obligation, in which case either security or endorsement may be required. *425(b)(2) 425 (b) (5) 7. Liquidation of loan funds. Between June 30 and 426 September 30, 1968 (or earlier as respects amounts in 428 any student loan fund not required in the foreseeable future) the balance in the fund (or portion not required, as the case may be), is distributed between the Federal Government and the institution on the basis of their relative contributions to the capital of the fund. However, additional payments are made to institutions to cover losses in principal or interest resulting from cancellation for service as a full-time teacher in a public elementary or secondary school. 8. Federal loans to institutions. The act authorizes 427 an appropriation of $25 million for Federal loans to institutions with whom agreements have been made for the establishment of student loan funds, to help them finance their share of the capital contributions to their funds. These loans are made only to institutions unable to secure funds from other sources upon reasonable terms, must be repaid in not over 15 years, and bear interest at a rate adequate to cover the cost of the funds to the United States Treasury, the costs of the Commissioner Sec. 443 (a) (1) 445 443 (a) (5) *441 *442(a) *588 *444 (b) *442 (b) of Education in administering this part of the program, and probable losses. C. Financial Assistance for Strengthening Science, Mathematics, and Modern Foreign Language Instruction. (Title III of the act) 1. Types of programs. This title of the Act authorizes assistance for three related programs. a. Program "A". A program of grants to State educational agencies for projects of local educational agencies for the acquisition of laboratory or other special equipment for science, mathematics, or modern foreign language teaching in public elementary or secondary schools or junior colleges, and for minor remodeling of laboratory or other space to be used for such equipment; b. Program "B". A program of loans to nonprofit, private elementary and secondary schools for the same types of projects; and c. Program "C". A program of grants to State educational agencies for expansion or improvement of supervisory or related services in public elementary and secondary schools and junior colleges in science, mathematics, and modern foreign language instruction, and for administration of the State programs. 2. Authorization of appropriations. Seventy million dollars for each of the fiscal years 1959-1964 is authorized to be appropriated for programs "A" and "B." Twelve percent of the amounts appropriated for any such year are reserved for loans under program "B" and the remainder is available for program "A." Five million dollars annually for each of these 6 years is authorized to be appropriated for program "C" grants. 3. Program "A": Grants to States for science, mathematics, and modern foreign language equipment. a. Allotment. Up to 2 percent of the aggregate amount appropriated for programs "A" and "B" for any year is allotted among Puerto Rico, the Canal Zone, Guam, and the Virgin Islands according to their respective needs. The remainder (exclusive of the 12 percent reserved for loans under program "B") is allotted to the 50 States and the District of Columbia on the basis of a statutory formula which takes into account the schoolage populations (5 to 17, both inclusive) of these States and their incomes per school-age child; these allotments remain available for payment for projects until the end of the fiscal year following the year for which the allotment is made. b. Matching requirement. States or local systems must match Federal funds on a dollar-for-dollar basis. 4. Program "B": Loans to nonprofit, private schools. a. Allotment. The 12 percent of each year's appropriation for programs "A" and "B", which is reserved. for program "B", will be allotted among the States on the basis of the number of persons enrolled in private, Sec. nonprofit elementary and secondary schools in the States. b. Loan conditions. Loans are made by the Com- 445 (b) missioner to private, nonprofit elementary or secondary schools for the same purposes for which grants to States under program "A" can be used. The schools must make applications containing information deemed necessary by the Commissioner, the loan agreements will be subject to conditions necessary to protect the financial interest of the United States, and the loans will bear interest at a rate equal to one-fourth of 1 percent plus a percentage equal to the current average yield on all outstanding marketable obligations of the United States as of the last day of the preceding month, and be repayable in not more than 10 years. 5. Program "C": Grants to States for State supervis- 442 (a) (1) ory services. a. Allotments. Up to 2 percent of the amount appropriated for this program for any year is allotted among Puerto Rico, the Canal Zone, Guam, and the Virgin Islands, according to their respective needs. The remainder is allotted to the 50 States and the District of Columbia on the basis of their school-age populations, but the allotment to any such State cannot be less than $20,000. 588 b. Matching requirements. The States must match 444 (b) Federal grants for this type of assistance on a dollar-fordollar basis. c. Use of the Federal funds. These grants are avail- 448 (a) (5) able solely for (a) expansion or improvement of supervisory or related services in public elementary or secondary schools in the fields of science, mathematics, and modern foreign language, and (b) the administration of the State plan for this program and program "A". 6. State plans. Any State desiring to receive pay- 448 ments under "A" or "C" program must submit to the Commissioner of Education, through its State educational agency, a State plan which (1) sets forth a program under which Federal funds will be expended solely for projects approved by the State agency for acquisition of laboratory or other special equipment (including audiovisual materials and equipment and printed materials, but excluding textbooks) suitable for use in providing education in science, mathematics, and modern foreign languages in public elementary or secondary schools or junior colleges, and for minor remodeling of laboratory or other space used for such equipment; (2) sets forth principles for determining the priority of such projects in the State; (3) provides an opportunity for a hearing before the State agency to any applicant for a project; (4) provides for State standards for laboratory or other special equipment acquired with these Federal Sec. 461 #462 463 464 (a) 465 464 (a) 464 (b) funds; (5) sets forth a program under which funds paid to the State under program "C" will be expended solely for the permitted purposes; and (6) provides for necessary fiscal procedures and reports. D. National defense fellowships (Title IV of the act) 1. Purpose. To increase the numbers of students in graduate programs, particularly students interested in teaching in institutions of higher education. 2. Authorization of appropriations, and number of fellowships authorized. The Act authorizes the appropriation of such sums as may be necessary to carry out the provisions relating to fellowships. Since the fiscal year 1960, and until the fiscal year 1964, the Act authorizes the awarding of 1,500 fellowships per year. 3. Terms of fellowships. Individuals receiving fellowships must be accepted for study in graduate programs of institutions of higher education, which programs are approved by the Commissioner of Education. To have a graduate program approved, the institution must apply to the Commissioner and he must find that the program is a new program or an existing program which has been expanded; that the program or the expansion will increase the facilities available for graduate training of college or university teachers and will promote a wider geographical distribution of such facilities; and that in accepting persons for graduate study in these programs, preference will be given to persons interested in teaching in institutions of higher education. 4. Fellowship stipends. Each holder of a fellowship will receive $2,000 for the first year of graduate study, $2,200 for the second year, and $2,400 for the third year, plus $400 each year for each dependent. 5. Duration of fellowships. Fellowships are for periods of study, not in excess of 3 academic years, during which the holder maintains satisfactory proficiency in, and devotes full time to, study or research in the field in which the fellowship was awarded, in an institution of higher education, and does not engage in gainful employment (other than part-time employment by the institution in teaching, research, or similar activities, approved by the Commissioner of Education). 6. Cost of education payments to institutions. The institution of higher education which a fellowship holder attends will be paid that portion of the cost of the new graduate program, or of the expansion of the existing program, in which the fellow is pursuing his course of study, which is reasonably attributable to him—but not more than $2,500 per year per fellow. E. Guidance, counseling, and teaching; identification Sec. and encouragement of able students (Title V of the act) 1. Types of programs. This title of the Act authorizes two related programs: agen a. Program "A". Grants to State educational cies to assist them to establish and maintain programs of testing, and of guidance and counseling, in secondary schools: b. Program "B". Federal contracts with institutions of higher education to provide institutes which will provide training to improve the qualifications of counseling and guidance personnel in secondary schools. 2. Program "A": Grants to States. 483 (a) *491 a. Appropriations authorized. For purposes of 481 Program "A," the Act authorizes an annual appropriation of $15 million for the fiscal year ending June 30, 1959 until the fiscal year ending June 30, 1964. 482 b. Allotments. Up to 2 percent of the amount ap- 588 propriated for any year is allotted to Puerto Rico, the Canal Zone, Guam, and the Virgin Islands according to their respective needs. The remainder is allotted to the 50 States and the District of Columbia on the basis of their school-age populations, with a $20,000 minimum. c. Matching requirement. States must match the *484 (a) Federal funds granted for this type of assistance on a dollar-for-dollar basis. *484 (b) d. State plans. To participate in this program a 488 State, through its State educational agency, must submit to the Commissioner of Education a State plan which (1) sets forth a program of testing secondary school students to identify those with outstanding aptitudes and ability, and shows the means of testing it will use, (2) sets forth a program of guidance and counseling in its public secondary schools to advise students of courses of study best suited for them and to encourage outstanding students to complete high school, take the courses needed for admission to institutions of higher education, and enter such institutions, and (3) provides for necessary fiscal procedures and reports. e. Testing in private schools. If a participating *484 (b) State is not authorized by its law to pay for the testing of students in private or other secondary schools in the State, the Commissioner of Education will arrange for the testing of these students in a manner comparable to the testing done by the State, and pay the Federal share of the cost out of the State's allotment. |