(Bracketed paragraph may be included at

option of institution)

[(3) If the repayment schedule that would otherwise be established in accordance with paragraph II(2) would provide for payments of principal and interest at a rate of less than $30 per month, I shall repay the total amount of this loan plus the interest thereon at the rate of $30 per month, which shall include repayment of principal and interest. In the event I receive or have received National Direct or Defense Student Loans from other lending institutions, I shall repay this note at a monthly rate equal to not less than the amount by which $30 exceeds the total monthly rate of principal and interest repaid on the other loans. A schedule of repayment shall be attached to and made part of this note. The Lending Institution may permit me to pay less than the rate of $30 per month for a period of not more than one year where necessary to avoid hardship to me unless such an action would extend the repayment period in paragraph 2 of this article.]

III. This note is also subject to the following conditions:

PREPAYMENT

(1) I may at my option and without penalty prepay all or any part of the principal, plus the accrued interest thereon, at any time.

DEFAULT

(2) If I fail to meet a scheduled repayment of any of the installments due on this note, the entire unpaid indebtedness including interest due and accrued thereon, shall, at the option of the Lending Institution, become immediately due and payable.

DEFERMENT

(3) Interest shall not accrue, and installments need not be paid (A) while I am enrolled and in attendance as at least a halftime student at an institution of higher education or at a comparable institution outside the United States approved for this purpose by the Commissioner, or (B) for a period not in excess of 3 years during which I am (i) on full-time active duty as a member of the Armed Forces of the United States (Army, Navy, Air Force, Marine Corps, or Coast Guard), (ii) in service as a volunteer under the Peace Corps Act, or (iii) a VISTA volunteer under Title I-Part A of the Domestic Service Act of 1973, P.L. 93-113, (formerly Title VIII of the Economic Opportunity Act of 1964).

The Lending Institution may, upon my application, defer or reduce any scheduled repayments if, in the view of the Lending Institution, extraordinary circumstances such as prolonged illness or unemployment,

prevent me from making such payments. However, interest shall continue to accrue.

CANCELLATION FOR TEACHING

or

(4) I am entitled to have the entire amount of this loan plus the interest thereon cancelled if I undertake service (A) as a full-time teacher in a public or other nonprofit elementary secondary school which is in a school district of a local educational agency which is eligible for assistance pursuant to Title I of the Elementary and Secondary Education Act of 1965 and which for the purposes of this clause has been designated by the Commissioner in accordance with the provisions of Section 465(a)(2) of the Higher Education Act as a school with a high enrollment of students from lowincome families, or (B) as a full-time teacher of handicapped children (including mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, or other health-impaired children who by reason thereof require special education) in a public or other nonprofit elementary or secondary school system.

This loan shall be cancelled for teaching service in accordance with the following rates: 15 per centum of the total principal amount of the loan plus interest thereon shall be cancelled for the first and second complete academic years of teaching service; 20 per centum of the total principal amount plus interest thereon for the third and fourth complete academic years of such service; and 30 per centum of the total principal amount plus interest thereon for the fifth complete academic year of such service.

HEAD START CANCELLATION

(5) I am entitled to have the entire amount of this loan plus the interest thereon cancelled if I undertake service as a fulltime staff member in a preschool program carried on under Section 222(a)(1) of the Economic Opportunity Act of 1964 (Head Start) at the rate of 15 per centum of the total principal amount of the loan plus interest thereon for each complete school year or its equivalent of such service, if that Head Start program is operated for a period which is comparable to a full school year in the locality, and if the salary of such staff member is not more than the salary of a comparable employee of the local educational agency.

MILITARY CANCELLATION

(6) If I serve as a member of the Armed Forces of the United States, up to 50 per centum of the principal amount of this loan plus the interest thereon shall be cancelled at the rate of 121⁄2 per centum of the total principal amount of the loan plus interest

thereon for each complete year of service in an ares of hostilities that qualifies for special pay under Section 310 of The 37 of the United States Code.

DEATH AND DISABILITY CANCELLATION

(7) If I should die or become permanently and totally disabled, the entire amount of this loan plus the interest thereon shall be cancelled.

ADDRESS CHANGE

(8) I am responsible for informing the Lending Institution of any change or changes in my address.

PENALTY CHARGE

(Bracketed clause may be included at option of institution)

[(9) If I fail to make timely payment of all or any part of a scheduled installment, or if I am eligible for deferment or cancellation of payment (pursuant to paragraphs III(3), (4), (5), or (6)), but fail to submit timely and satisfactory evidence thereof, I promise to pay the charge assessed against me by the Lending Institution. No charge may exceed (1) where the loan is repayable in monthly installments. $1 for the first month or part of a month by which such installment or evidence is late, and $2 for each month or part of a month thereafter; or (2) in the case of a loan which is repayable in bimonthly or quarterly installments, $3 and $6, respectively, for each installment interval or part thereof by which such installment or evidence is late. If the Lending Institution elects to add the assessed charge to the outstanding principal of the loan, it shall so inform me prior to the due date of the next installment.]

ASSIGNMENT

IV. This note may be assigned by the Lending Institution only (A) to another institution upon my transfer to that institution if that institution is participating in this program (or, if not so participating, is eligible to do so and is approved by the Commissioner for such purpose) or (B) to

foreign languages and such other related fields needed to provide a full understanding of the areas in which such languages are commonly used and international studies with other than a modern foreign language and area studies focus, (b) for the establishment and operation of programs at the undergraduate and graduate level in international studies and the international aspects of professional and other fields of study, (c) for the award of fellowships to individuals undergoing advanced training in any center, or under any program receiving Federal financial assistance under the Act, and (d) for research, including (1) the conduct of studies and surveys to determine the need for increased or improved instruction in modern foreign languages and other related fields; (2) research on more effective teaching methods; and (3) development of specialized materials for training in foreign languages or related fields.

(20 U.S.C. 511, 512)

such languages are commonly used, or for training and research in international studies and the international aspects of professional and other fields of study.

(20 U.S.C. 511-512)

(d) "Institution of higher education" means an institution of higher education as defined in section 103(b) of the National Defense Education Act of 1958.

(20 U.S.C. 403) (20 U.S.C. 511-12 unless otherwise noted)

§ 146.3 General provisions regulations.

Assistance under this part is subject to the applicable provisions of Subchapter A of this chapter relating to fiscal, administrative property management, and other matters (General Provisions for Office of Education Programs-45 CFR Part 100a).

(20 U.S.C. 511-512)

§ 146.2 Definitions.

(a) "Act" means Title VI of the National Defense Education Act of 1958 as amended.

(20 U.S.C. 511-513)

(b) "Academic year" means a period of time, generally not less than 8 months, in which a full-time student would normally be expected to complete the equivalent of two semesters, two trimesters, or three quarters.

(c) "Center" means an officially designated academic unit of an institution of higher education (or a combination of institutions), with its own administrative structure, encompassing various academic disciplines, such as anthropology, art, business, economics, education, history, law, music, political science, geography, language and literature, and sociology through which a concentration of educational resources is made available for training in modern foreign languages, for instruction in related fields needed to provide a full understanding of the areas, regions, or countries in which

Subpart B-International Studies Centers

§ 146.11 Scope.

(a) The Commissioner is authorized to award grants to and contracts with institutions of higher education or consortia of such institutions to pay part of the costs of operating international studies centers. A center may be one of the following two types:

(1) One type of center will provide instruction primarily during the academic year on both the graduate level and the undergraduate level (unless undergraduate instruction is not offered at the institution) in modern foreign languages and area studies or in international studies with other than a modern foreign language and area studies focus.

(2) The other type of center will offer instruction during the academic year on the undergraduate level in modern foreign language and area studies or international studies with other than a modern foreign language and area focus. This undergraduate

center shall provide training for students planning to continue their study at the graduate or professional level and shall also help to prepare students for direct entrance into a profession, such as education or business, in which specialized training in international studies plays a significant role.

(b) Centers may focus upon one world region and offer instruction in its principal languages and in related disciplines necessary to provide a full knowledge of that area or they may focus upon international or comparative multidisciplinary studies. The majority of the centers funded, either at the undergraduate, graduate, or combined graduate and undergraduate levels, will focus on single world areas. Such world areas include East Asia (including Japan, China, and Korea), South Asia (India, Sri Lanka, Bangladesh, Nepal, and Pakistan), the Middle East (including North Africa), the Soviet Union and Eastern Europe, Africa, Latin America, Southeast Asia (including Indonesia and the Philippines as well as Vietnam, Cambodia, Laos, Thailand, Malaysia, and Burma), contemporary Western Europe, Canada, and Inner Asia. Of the total number of centers assisted, it is anticipated that not more than 20 percent will be undergraduate centers and not more than 20 percent will be centers with other than a primary focus on foreign language and area studies, such as comparative area studies or international affairs.

(c) Center activities shall be carried out primarily within the United States and principally on the campus (or campuses) of the institution(s) involved.

(20 U.S.C. 511(a))

§ 146.12 Core instructional activities.

(a) Centers offering instruction in modern foreign language and area studies must concentrate on one world region (such as East Asia or Africa) and offer instruction in two or more of that region's principal languages. They must also offer instruction in other fields which are needed to provide a full understanding of the areas, regions, or countries in which the languages are commonly used.

(b) Centers offering instruction in international studies with other than a single area studies focus may offer instruction in international relations (such as diplomacy, law, economics, and politics), in comparative approaches to topics of transnational concern (such as food and hunger, international trade and business, energy and environment), or on studies with an interregional focus. This type of center must also provide multidisciplinary instruction and must assure that foreign language training is available.

(c) All centers must include in their core offerings both interdisciplinary approaches to the world area or topic of the center and a wide range of disciplines, such as anthropology, economics, fine arts, geography, history, language and literature, music, philosophy and religion, political science, and sociology, which may be needed for improved understanding of that world area or topic. Centers shall also incorporate in their core instructional offerings, where relevant, professional training in such fields as education, business, journalism, architecture and urban planning, law, public administration, library science, and the health professions, if such training is available at their institutions. Linkages with such professional training programs may be accomplished in a variety of ways, such as cross-listing of courses and cross-registration, offering of courses on the area or topic of the center's focus in the professional school, preparation of special center courses designed for students in professional training, and formulation of joint degree programs.

(20 U.S.C. 511(a))

§ 146.13 Educational outreach activities.

(a) In addition to the instruction described in § 146.12, centers must provide two or more of the services listed in paragraph (b) of this section (educational outreach activities) to agencies, organizations, and individuals interested in the resources of the center but not a part of the institution(s) operating the center. However, at least one of the services shall be a service