high school whose graduates meet the requirements established by the State in which such school is located for graduation from high schools accredited by such State, or (B) in the case of an individual who has not received such a certificate, is determined by such State commission to have attained a level of advancement generally accepted as constituting the equivalent of that required for graduation from such a high school; "(2) such person has become enrolled in an institution of higher education for educational work leading to a bachelor's degree; and "(3) such person's graduation from high school occurred (or the equivalent level of educational advancement was attained) during or at the close of the school year in which he was selected for the scholarship, and his enrollment at an institution of higher education was for the first academic year that commenced following his graduation (or attainment of the equivalent level of advancement) and occurred upon the first opportunity for such enrollment, except that the State commission may, in accordance with regulations of the Commissioner, for good cause waive or modify the requirements of this clause or clause (4) of subsection (a). "ALLOTMENT OF APPROPRIATIONS FOR SCHOLARSHIPS "SEC. 225. (a) From the sum appropriated for any fiscal year pursuant to the first sentence of section 221 the Commissioner shall allot amounts, but not in the aggregate to exceed 2 per centum of such sum, among Puerto Rico, the Canal Zone, Guam, and the Virgin Islands according to their respective needs for scholarship assistance as determined by him. The remainder of such sum shall be allotted by the Commissioner among the remaining States, one-half on the basis of the relative number of individuals graduating from public or other nonprofit high schools in the respective States, as determined by the Commissioner for the most recent year for which satisfactory data for such States are available to him, and one-half on the basis of their relative populations aged fourteen to seventeen, inclusive, as determined by the Commissioner for the most recent year for which satisfactory data are available from the Department of Commerce. "(b) Sums appropriated under the second sentence of section 221 shall be allotted by the Commissioner among the States on the basis of the relative amounts he estimates are needed to make payments to persons awarded scholarships for previous years. "STATE COMMISSIONS AND PLANS "SEC. 226. (a) Any State desiring to participate in the scholarship program under this part may do so by establishing a State commission on scholarships broadly representative of high schools and colleges, and of the public, in the State, or designating an existing State agency with equivalent representation to serve as the State commission on scholarships, and by submitting, through such commission, a State plan for carrying out the purpose of this part which is approved by the Commissioner under this section. The Commissioner shall approve any such plan which "(1) provides that it shall be administered by the State commission; "(2) provides for the selection of individuals to receive scholarships from among applicants eligible to compete therefor, and for determination of the amounts (if any) of payments under such scholarships, in accordance with standards, procedures, and criteria, established by the State commission, which the Commissioner finds provide reasonable assurance. "(A) that selection of individuals to receive scholarships under this part will be based solely on ability to pursue successfully, at an institution of higher education, a course of study leading to a bachelor's degree, determined in accordance with objective tests and other measures of ability and achievement, and that the amount of each individual's scholarship each year will be based solely on his need for financial assistance to continue his education at an institution of higher education, which need shall be determined without regard to tuition, fees, and other expenses of attendance at the particular institution of higher education chosen by the individual, "(B) that any eligible applicant who is not living in, but is domiciled in, the State is provided a reasonable opportunity to be selected for a scholarship, and "(C) that scholarship examinations or other tests required to be taken by applicants are given, insofar as practicable, in the high school the individual attends; "(3) provides for certification to the Commissioner of "(A) individuals selected pursuant to the State plan for scholarships and the amounts thereof, and "(B) the financial need of individuals previously awarded such scholarships (and the amounts, if any, of payments under their scholarship), as determined in accordance with the State standards, procedures, and criteria established as provided in paragraph (2); "(4) provides for such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State under this part; and “(5) provides for the making of such reports, in such form and containing such information, as may be reasonably necessary to enable the Commissioner to perform his functions under this part. “(b) In the case of any State plan which has been approved by the Commissioner, if the Commissioner, after reasonable notice and opportunity for hearing to the State commission administering such plan, finds "(1) that the plan has been so changed that it no longer complies with the provisions of subsection (a), or "(2) that in the administration of the plan there is a failure to comply substantially with such provisions, the Commissioner shall notify such State commission that the State will not be regarded as eligible to participate in the program under this part until he is satisfied that there is no longer any such failure to comply. "(c) The Commissioner shall pay to each State such amounts as the Commissioner determines to be necessary for the proper and efficient administration of the State plan (including reimbursement to the State for expenses which the Commissioner determines were necessary for the preparation of the State plan) approved under this part. There are hereby authorized to be appropriated such sums as may be necessary to make such payments. "SELECTION OF INSTITUTION "SEO. 227. An individual awarded a scholarship under this part may attend any institution of higher education which admits him. "COST OF EDUCATION ALLOWANCES "SEC. 228. In order partially to compensate institutions of higher education for expenses, in excess of student tuition and other fees, incurred by such institutions in providing education to persons awarded scholarships and receiving payments with respect thereto under this part, the Commissioner shall, in accordance with regulations, pay each institution which such a person attends during the major portion of each academic year for which such person receives scholarship payments, the amount of $350. There are hereby authorized to be appropriated for the fiscal year ending June 30, 1963, and for each of the seven succeeding years such sums as may be necessary to make such payments. "PAYMENTS "SEC. 229. The Commissioner may arrange for the payment of the amounts due recipients of scholarships, institutions, and State commissions under this part in accordance with section 1006." Hon. LISTER HILL, DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, Chairman, Committee on Labor and Public Welfare, August 17, 1961. DEAR MR. CHAIRMAN: This letter is in response to your requests for reports on S. 585, a bill to be known as the College Classroom Assistance Act of 1961; S. 1140, a bill to be known as the Emergency Public Community College Construction Act of 1959; and S. 635, a bill to be known as the Student Aid Act of S. 585 would establish a program-with a program ceiling of $750 million— of Federal loans for the construction, rehabilitation, or improvement of classrooms and other academic facilities of colleges and universities. In addition, it would establish a 5-year program-with no appropriation ceiling-of grants-inaid for the construction, rehabilitation, or improvement of academic facilities, where the project will expand the college's or university's teaching capacity or is necessary to improve or maintain the quality of its educational program. S. 1140 would authorize appropriations of $50 million annually for 5 fiscal years for matching grants to States for the construction of classroom and other facilities of public community colleges, i.e., public institutions limited to first and second year college grade courses, which are also properly known as junior colleges. S. 635 would establish a permanent program of undergraduate scholarships with an appropriation ceiling of $46 million for the first fiscal year, $92 million for the second fiscal year, $138 million for the third fiscal year, $184 million for the fourth fiscal year, and the same amount or such greater sum as Congress may thereafter authorize to be appropriated for each subsequent fiscal year. While we favor the common basic objectives of all of the above-mentioned bills, we recommend in lieu of those bills favorable consideration and enactment of the administration bill (S. 1241), in the preparation of which the other proposals above mentioned were carefully considered. As you know, S. 1241, which is to be known as the College Academic Facilities and Scholarships Act, provides for a 5-year program of long-term, low-interest construction loans for academic facilities of institutions of higher education. In addition, it would provide, during the next 5 years, for the award of a total of 212,500 4-year undergraduate scholarships for able high-school graduates who need assistance to continue their education through college. Insofar as construction aid is concerned, we believe that, although community or junior colleges are making important contributions to higher education, they should not be singled out for Federal assistance to the exclusion of other institutions of higher education, particularly since the effect of such specialized Federal assistance would be to create pressure on the States to adopt a particular pattern of organizing higher education which may not be best suited to the needs and resources of other States. On the question whether Federal construction aid for academic facilities should include grants as well as loans, while we would prefer the choice made in the administration bill, we would have no objection to an appropriate allocation of a part of the available funds for grants if the Congress, after reviewing the situation, should decide that grants are necessary and desirable, and if the combined total amount for both loans and grants is within the ceiling stated in the administration bill. Should the committee decide in principle to include grants in such a program, we would be glad to assist committee staff in developing specifications and draft language for such a program. We are advised by the Bureau of the Budget that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely, ABRAHAM RIBICOFF, Secretary. Hon. LISTER HILL, DEPARTMENT OF HEALTH, EDUCATION, AND Welfare, Chairman, Committee on Labor and Public Welfare, DEAR MR. CHAIRMAN: On March 7, 1961, the President of the United States transmitted to the President of the Senate a proposed bill to authorize assistance to public and other nonprofit institutions of higher education in financing the construction, rehabilitation, or improvement of needed academic and related facilities, and to authorize scholarships for undergraduate study in such institutions, together with my letter to him explaining the bill, and the need for its enactment. This bill was then introduced as S. 1241 and referred to your comImittee for consideration. Enclosed, for your use in considering the bill, are 5-year estimates of appropriation requirements and expenditures, and of personnel requirements. Sincerely yours, ABRAHAM RIBICOFF, Secretary. 74150-61- DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, OFFICE OF EDUCATION Aid to higher education Senator MORSE. I would also like to insert in the record a statement on the need for Federal aid to higher education submitted to the subcommittee by the Senator from Minnesota, Senator Hubert Humphrey. (Senator Humphrey's statement follows:) PREPARED STATEMENT BY SENATOR HUBERT H. HUMPHREY Mr. Chairman, I appreciate this opportunity to present testimony in support of Federal aid to higher education, and particularly, my proposal to establish a scholarship program for students in higher education, a proposal set forth in S. 635. We must avoid the danger of looking for easy solutions to the financial problems of higher education. Education is expensive, and our colleges and universities need support from every potential source from individuals and alumni groups, from private philanthropic organizations and foundations, from labor unions and corporations, and, in the case of State-supported institutions, from State legislatures. We know that within the next 10 years college enrollments will virtually double-overloading colleges and universities which are already popping at the seams. Faculty salaries must be raised. And the physical plant-classrooms, dormitories, libraries, and laboratories-must be expanded to handle the rising tide of applicants seeking higher education. Every year thousands of qualified high school graduates ask our colleges and universities for scholarships or other kinds of financial aid-and far too often these talented youngsters are unable to get any kind of financial help. Every year more than 150,000 young men and women in the top intellectual brackets do not go on to college simply because they and their families cannot afford it. This is a terrible waste of valuable brainpower. There is little novelty in the scholarship program which I am proposing in S. 635 and which the administration is proposing in S. 1241. In July of 1958 the House Education and Labor Committee approved a national defense education bill which included 23,000 new college scholarships a year for a 4-year period, and the Senate Labor and Public Welfare Committee included a similar provision in the education bill reported out for Senate action. The Senate did approve a 20,000-a-year scholarship provision in its version of the National Defense Education Act of 1958, but the House dropped its provision, and the scholarship program was chopped out of the final NDEA version adopted by the conference committee. Under my proposal, at least 46,000 outstanding young men and women would be able to enter college each year. Any graduate of an accredited public or private high school would be eligible to apply to his State education agency, and winners would get a $500 merit scholarship regardless of need. Winners without financial resources could get additional assistance, up to a limit of $1,500 a year for 4 years. My scholarship proposal would also authorize payments up to $500 per student for the colleges which accept these scholarship winners. Such payments would help these institutions meet costs of expansion to handle higher enrollments. I would certainly support the scholarship program set forth in S. 1241, but I think the members of this subcommittee should bear in mind the thought that a $1,000 scholarship and a $350 payment to the institution accepting a scholarship winner will cover only a part of the costs to the student and the costs to the institution. I would also support title I of S. 1241 to set up a loan program for construction of academic facilities at institutions, but I want to remind the members of this subcommittee of the recommendation of the President's Task Force Committee on Education. The task force called for a combined loan and grant program "of at least $500 million for the first year, of which $350 million (70 percent) should be for matching grants and $150 million (30 percent) should be for loans on the same basis as the college housing loan program." And in testimony last year before the House Subcommittee on Special Education, Dr. Everett Case, president of Colgate University, speaking on behalf of the American Council on Education, pointed out that amortization costs of academic facilities present a very different problem from the amortization costs of college housing. Classrooms, laboratories, and libraries are not directly income producing, he said, and he added that "there is no single and related source of income that can be pledged to service such loans." He went on to say: "Many public institutions, for example, would be barred from such a loan program by State laws, since their authority to borrow is limited to those projects which are income producing, such as residence halls and dining halls. Some private institutions would be reluctant to participate because repayment of these loans must be drawn from general funds (primarily tuition) already overburdened with the rising costs of faculty salaries, student aid, and proper equipment and maintenance. "This is not to say that a loan program for academic facilities is not desirable. Indeed we strongly advocate such a program. We believe that a substantial number of institutions would find ways to make good use of it, and also that such legislation as an experiment would be valuable as a guideline to the future." Finally, Mr. Chairman, I wish to remind this subcommittee of my proposal S. 636, to establish a Federal loan insurance program to protect educational and financial institutions making loans to students attending colleges and universities. |