A new "Higher Education Act of 1965" was introduced, as H.R. 9567 by Representative Edith Green, of Oregon, on June 30, 1965. This bill was referred to the Committee on Education and Labor. It was reported from that committee on July 14, 1965 (Rept. No. 621). It passed the House on August 26, 1965. It was reported in the Senate, from the Committee on Labor and Public Welfare, on September 1, 1965 (Rept. No. 673). On September 2, 1965, the Senate passed the bill, amended, and asked for a conference. On September 15, 1965, the House agreed to the conference. The conference report was filed on October 19, 1965 (Rept. No. 1178). The House and Senate both agreed to the conference report on October 20, 1965. The act was approved by the President on November 8, 1965, and became Public Law 89-329.

In an article concerning President Johnson's signing of the Higher Education Act of 1965, a writer for the New York Times of November 9, 1965, commented:

The law sets up a National Teacher Corps to provide teachers for elementary and high schools in poor areas. But while the first-year authorization for the entire program is $852 million, Congress has appropriated only $160 million so far-with no funds for operating the Teacher Corps. The administration expects to get the rest of the money for the year ending next June 30 in a supplemental appropriation next year.12

Following is a summary of Public Law 89-329, by title.

Title 1. Community Service and Continuing Education Programs.-Authorizes $25 million for fiscal year 1966 and $50 million for each of the fiscal years 1967 and 1968, to assist in the solution of community problems in such areas as housing, poverty, government, recreation, employment, youth opportunities, transportation, health, and land use. States must designate a State agency or institution broadly representative of higher education in the State to administer community service programs developed under this title.

Defines community service program as an educational program, activity, or service, which is designed to assist in the solution of community problems in rural, urban or suburban areas, with particular emphasis on urban and suburban problems, where the institution offering such programs, activity, or service determines (1) that the proposed program, activity, or service is not otherwise adequately available, and (2) that the conduct of the program or performance of the activity or service is consistent with the institution's overall educational program and is of such a nature as is appropriate to the effective utilization of the institution's special resources and the competencies of its faculty. Courses, if offered, must be (a) fully acceptable toward an academic degree, or (b) of college level as determined by the institution offering such courses.

Provides for a National Advisory Council on Extension and Continuing Education to be appointed by the President. Its main purpose will be the elimination of duplication, and the coordination of programs under this title and other programs of extension or continuing education.

Federal funds will cover 75 percent of the costs of the program in the fiscal year 1966, 75 percent in fiscal year 1967 and 50 percent in fiscal year 1968. Up to 5 percent of the expenditures for which Fed

12 Pomfret, John D., "President Hails New College Aid." New York Times, Nov. 9, 1965,

p. 1.

eral payments are made, or $25,000, can be used for developing and administering the State plan.

Title II. College Library Assistance and Library Training and Research.-Initiates a program to help institutions of higher education acquire library materials needed for their expanded responsibilities in research, teaching, and student use; to encourage new and enlarged college and university training programs to prepare individuals for service in the information sciences and in libraries; to promote research and demonstration projects relating to the improvement of libraries and library and information sciencies; and to expand and improve the centralized cataloging service in the Library of Congress. The title is divided into three parts each of which is designed to meet a special need for assistance.

Part A. College Library Resources.-Authorizes $50 million for each of fiscal years 1966-68 for the purchase of library resources. Provides for institution-matched basic grants of up to $5,000 to institutions of higher education for the purchase of library resources such as books, periodicals, documents, phonograph records, and related library materials.

Authorizes the Commissioner of Education to make supplemental grants, not to exceed $10 for each full-time student, on the basis of such criteria as size and age of library collection, student enrollment, and endowment and other financial resources. Each institution or combination of institutions must give assurance that its previous year's expenditures for materials will be maintained.

Sets aside for special grants 25 percent of the total appropriated for grants. Authorizes such special grants to institutions of higher education demonstrating a special need for additional library resources; or to institutions engaged in meeting special rational or regional needs in library and information sciences; or to combinations of institutions which need special assistance in establishing joint facilities.

Establishes an Advisory Council on College Library Resources to assist the Commissioner in the development of criteria for the making of supplemental grants and special purpose grants.

Part B. Library Training and Research.-Authorizes $15 million for each of fiscal years 1966-68 for grants to institutions of higher education for training students in librarianship, including the training of communications specialists in the physical and social sciences. Authorizes the Commissioner to make grants to and contracts with institutions of higher education and other public or nonprofit private agencies, institutions, and organizations for research and demonstration projects and for the dissemination of information derived from research.

Part C. Cataloging of Library Materials.-Authorizes $5 million for fiscal 1966, $6,315,000 for fiscal 1967, and $7,700,000 for fiscal 1968 to be used by the Library of Congress for two purposes: (1) to expand and improve the centralized cataloging service which is already in operation, and (2) to purchase library material from all over the world which would not otherwise be included in the Library of Congress collection and, therefore, not cataloged. (This part can relieve all types of libraries from much of the expensive cataloging process. since a larger number of catalog cards would be more readily available for purchase, at a minimal cost, through the Library of Congress.)

Title III. Strengthening Developing Institutions.-Authorizes $55 million for fiscal year 1966 to assist in raising the academic quality of colleges which have the desire and potential to make a substantial contribution to the higher education resources of the Nation but which for financial and other reasons are struggling for survival and are isolated from the main currents of academic life.

Authorizes the Commissioner of Education to pay part of the cost of planning and carrying out cooperative arrangements for strengthening the academic programs of qualified developing colleges. These cooperative arrangements may be between developing institutions and organizations, agencies, and business entities. Cooperative projects may include: exchange of faculty or students, including visiting scholars; faculty improvement programs; introduction of new curriculums; development of cooperative education programs involving alternate periods of academic study and employment; joint use of facilities such as libraries or laboratories; fellowships leading to advanced degrees for the faculties of developing institutions; or other arrangements which offer promise of strengthening the academic programs of developing colleges.

Authorizes the Commissioner to award national teaching fellowships to graduate students and junior faculty members to encourage them to teach at developing institutions.

Sets aside 22 percent of the funds appropriated to be used specifically for junior colleges.

Provides for an Advisory Council on Developing Institutions to assist the Commissioner in identifying qualified developing institutions and in establishing priorities for use in approving applications for grants.

Title IV. Student Assistance.-Establishes a program of student financial assistance to make the benefits of higher education available to academically qualified students in need of financial assistance.

Part A. Educational Opportunity Grants.-Authorizes $70 million for educational opportunity grants during fiscal year 1966. Institutions of higher education must determine that recipients of the grants show academic promise, are of exceptional financial need, and would not, but for an educational opportunity grant, be financially able to pursue higher education.

Authorizes grants to be no less than $200, or more than one-half of the total amount of student assistance (excluding work-study) provided to the same student, or $800, whichever is the lesser, except that an additional $200 may be awarded to students who were in the upper half of their class during the preceding year. Provides for funds to be allocated among the States on the basis of college enrollment. Permits institutions to transfer up to one-fourth of their funds under this part of their national defense education student loan funds.

Authorizes the Commissioner to enter into contracts, not to exceed $100,000 per year, with State and local educational agencies and other public or nonprofit organizations for the purpose of (1) identifying qualified youths of exceptional financial need and encouraging them to continue their education, (2) publicizing existing forms of financial aid, and (3) encouraging secondary school and college dropouts to reenter educational programs.

Part B. Federal, State, and Private Programs of Low-Interest Insured Loans to Students in Institutions of Higher Education.-Au

thorizes advances totaling $17,500,000 through fiscal year 1968 to assist in establishing or strengthening the reserve funds of State and private nonprofit student loan insurance programs. Authorizes advances to the State program and, if for any year the State program be not comprehensive, to private nonprofit programs to the extent necessary to enable students in every eligible institution to be covered by an insured loan program.

Authorizes a Federal insurance program on a standby basis if adequate State and private plans are not reasonably accessible to students in every eligible institution of higher education. Total new federally insured loans must not exceed $700 million for fiscal year 1966, $1 billion for 1967, and $1,400 million for fiscal year 1968. Provides that for students from families having adjusted family income of less than $15,000 the Federal Government would subsidize all of the interest while in school and 3 percentage points thereafter; for students from families having higher incomes there would be no interest subsidy but the insurance would cover loans to such students. Adjusted income would take into account the number of family members and the number attending institutions of higher education.

Provides for the interest subsidy to be available for federally insured loans and for loans insured under State and private nonprofit programs which meet specified standards as well as loans made by State programs. For the first 2 years of the program, the interest subsidy will be available for State and private plans which insure loans (1) charging no higher than 6 percent annual interest on the unpaid balance and (2) requiring repayment to begin no earlier than 60 days after the student ceases his course of study. After June 30, 1967, the interest subsidy will not be available unless all specified standards are met.

State and private programs must be authorized to insure loans of not less than $1,000 and not more than $1,500 per year for any student and must be authorized to insure loans to any student for at least 6 years and would be required to insure 80 percent of unpaid principal in order to qualify for advances and-after June 30, 1967, under the legislation's 2-year transitional period-interest subsidies.

The Federal insurance program where operative will cover 100 percent of unpaid principal, excluding interest and will cover loans up to a maximum of $1,000 per year for undergraduates and $1,500 for graduate students and up to a maximum aggregate unpaid principal of $5,000 for undergraduates and $7,500 for graduates.

Federally insured loans, or loans over $2,000 insured by a State or private program, must provide for a repayment period of not less than 5 years (unless the loan is sooner repaid) nor more than 10 years, beginning 9 months to 1 year after the student leaves school, with a maximum loan period of 15 years. Minimum annual repayment in the case of federally insured loans is set at $360. The loan, whether insured federally or by a State or private program, must be made without security, but endorsement may be required.

Maximum rate of interest chargeable by the lender is to be set by the Secretary of Health, Education, and Welfare on a national, regional, or other appropriate basis, but it must not exceed 6 percent per year on the unpaid principal balance of the loan if insured under a State or private program. Federally insured loans are subject to rates of interest no higher than 6 percent, except that under circumstances

which threaten to impede the carrying out of the program rates may be set as high as 7 percent.

The program is authorized to make advances to State and private plans and to insure loans for 3 years-until June 30, 1965.

Part C. College Work-Study Program Extension and Amendments.-Transfers the work-study program under part C of title I of the Economic Opportunity Act of 1964 from the Office of Economic Opportunity to the Office of Education. Under this program institutions of higher education receive from the Federal Government 90 percent of the cost of providing part-time employment opportunities. Institutions may pay their share to students in the form of services and supplies furnished by the institution.

Expands the opportunities for part-time employment. Requires that preference be given to students from low-income families.

Authorizes specific appropriations for the fiscal years 1966-68, inclusive, to carry out the purposes of part C of title I of the Economic Opportunity Act of 1964.

Part D. Amendments to the National Defense Education Act of 1958.-Amends the provisions concerning agreements with institutions establishing student loan funds under title II of the National Defense Education Act to provide that the fund may be used to pay one-half of the administrative costs incurred by the institution, including collection costs, up to 1 percent of outstanding loans.

Alters the requirements for repayment of student loans to require payment to commence 9 months after the borrower ceases to carry at least one-half the normal full-time academic workload. Sets the minimum rate of repayment at $15 per month, with no interest accrual while the borrower is carrying at least one-half the normal full-time academic workload.

Expands the loan forgiveness provision of the national defense student loan program to permit persons who teach in areas of high concentration of low-income families to cancel their entire obligation at the rate of 15 percent per year.

Amends the National Defense Education Act to include economics among the critical subjects to be covered in title III (equipment) and to include economics, civics, and industrial arts among the subject areas in title XI (teacher training institutes).

Increases the National Defense Education Act title III authorizations by $10 million, and title XI authorizations by $17.25 million. Title V. Teacher Programs.

Part A. General Provisions.-Directs the Commissioner of Education to establish an Advisory Council on Teacher Preparation to review the administration and operation of the programs carried out under this title and all other Federal programs for complementary purposes.

Part B. National Teacher Corps.-Establishes in the Office of Education a National Teacher Corps. Experienced teachers and teacher interns who have a bachelor's degree will be enrolled in the Teacher Corps for periods of up to 2 years.

Arrangements will be made at the option of local educational agencies to furnish experienced teachers and teaching teams to local schools in areas having concentrations of children from low-income families. (Same concept as Elementary and Secondary Education Act of 1965, title I.)