NATIONAL DEFENSE EDUCATION ACT OF 1958 TUESDAY, MAY 12, 1959 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON SPECIAL EDUCATION OF THE COMMITTEE ON EDUCATION AND LABOR, Washington, D.C. The subcommittee met at 10 a.m., pursuant to recess, in the caucus room of the House Office Building, Hon. Carl Elliott (chairman of the subcommittee) presiding. Present: Representatives Elliott, Green, Daniels, and Lafore. Also present: Mary P. Allen, subcommittee clerk, and Charles Backstrom, research assistant to subcommittee. Mr. ELLIOTT. The subcommittee will be in order. It gives me great pleasure, Mr. Commissioner, and your associates, to welcome you back before our Subcommittee on Special Education to report on the progress you have made in administering the National Defense Education Act of 1958. For the benefit of our visitors, I should like to say that we have already, on February 19 and 20, held a similar hearing. It is a part of the duty of congressional committees, as set out in rule 11 of the House of Representatives, to oversee the administration of the legislation within their jurisdiction. We are taking this duty seriously. We hope to have the opportunity from time to time in the future also to hear additional reports on how you are progressing in administering this far-reaching new program of assistance to education. Since you were last here, Mr. Commissioner, we have won a major victory, I think, for the National Defense Education Act in getting restored on the floor of the House all of the funds requested by the Administration as a supplemental appropriation for the year 1959. I understand that likewise the Senate has approved that sum of $75,300,000, and that while the bill has not been finally passed, it is ready to go to conference between the two Houses, and the conference will be on matters not related to the National Defense Education Act. The matters relating to the National Defense Education Act are not in dispute. This will, of course, mean an additional $75,300,000 for the rest of this fiscal year, to be added to the $40 million you received last fall. I realize that you have not yet had the money pass through your hands. Unfortunately, consideration of the supplemental appropriation act by the conference committee has been delayed by the regular appropriations bills. I hope the supplemental will soon be forthcoming. I am sure this delay has caused complications in administering the act that are hard for people in the field to understand. We regret this very much. We appreciate the forbearance of people throughout the profession, who are putting up with the inevitable problems of getting a program like this underway. I am also pleased that the House has already acted upon your request for fiscal 1960, giving you the full $150 million which the President recommended, and I think you are to be commended on the language of the Appropriations Committee report, which said: The Office of Education is certainly to be complimented for the expeditious way that it has inaugurated this vast and complex new program. Now, Mr. Derthick, you may proceed. Perhaps you would like to introduce your associates, although most of them have been here before. Perhaps you would like to have each of them in turn give a brief report on what has been done under the titles they are responsible for, and then give us an opportunity to ask questions before moving on to the next title, if that meets with your general approval. STATEMENTS OF DR. LAWRENCE G. DERTHICK, U.S. COMMISSIONER OF EDUCATION; MR. JOHN F. HUGHES, EXECUTIVE OFFICER; DR. HOMER D. BABBIDGE, DIRECTOR, FINANCIAL AID BRANCH, DIVISION OF HIGHER EDUCATION; DR. JOHN R. LUDINGTON, DIRECTOR, AID TO STATE AND LOCAL SCHOOLS BRANCH, DIVISION OF STATE AND LOCAL SCHOOL SYSTEMS; DR. JAMES E. GIBBS, JR., CHIEF, STATE SCHOOL SYSTEM SECTION, SCHOOL ADMINISTRATION BRANCH, DIVISION OF STATE AND LOCAL SCHOOL SYSTEMS; DR. ROY M. HALL, ASSISTANT, COMMISSIONER FOR STATISTICS AND RESEARCH SERVICES; DR. JAMES H. PEARSON, ASSISTANT COMMISSIONER for voCATIONAL EDUCATION; DR. ARTHUR HARRIS, DIRECTOR OF FIELD SERVICES; DR. W. PARKER, CHIEF OF FOREIGN LANGUAGE DEVELOPMENT; AND DR. PETER MUIRHEAD, CHIEF OF STUDENT LOAN SECTION Dr. DERTHICK. Thank you very much, Mr. Chairman and members of the committee. I want to say that the sense of responsibility and partnership that your committee has felt for this act since its passage has been the greatest single source of encouragement to those of us charged with the responsibility of administration. And we welcome your partnership very cordially. It is an event of much gratification to us, this privilege of coming back periodically on your call to report on problems and progress. And so, Mr. Chairman, we hope that this experience will be one that will be repeated again and again, because it gives us so much encouragement, and is of concrete assistance to us to have you understand our problems and help us interpret what the issues are and what the needs are. We are very much gratified by the approval you have given us, and the guidance, and also we have been encouraged by the action of the House and the Senate in the matter of appropriations. And we, too, are quite anxious that the money will actually be at hand. We anticipate, of course, no difficulty whatsoever, and we have given the educational agencies and institutions across the country every assurance that we possibly can so that they will move along in the program. And yet, there are certain particulars in which we shall be handicapped in getting the money well placed and used, in view of the shortness of time before the end of the fiscal year. And I speak of appropriations for 1959. We do not anticipate that that will be a serious problem, though it will be evident in a few instances. We shall, then, Mr. Chairman, proceed as you have suggested and take up the act title by title. I shall introduce the members of our staff, here, who have key responsibilities. We did not bring quite as many here today as we did for our first report, but I think that we have the people who are possessed of the knowledge and the information and the answers to your questions. I think I shall first introduce Dr. Homer D. Babbidge, Jr., who is head and Director of the Financial Aid Branch in the Division of Higher Education. Dr. Babbidge will enlist some of his immediate colleagues. He has two here today with him, Dr. Parker and Dr. Muirhead. I think they are following the Biblical injunction of waiting to be invited to sit at the table, but they are here. Mr. ELLIOTT. Let me ask Dr. Parker and Dr. Muirhead: Will you not come up? Is that everybody? Dr. DERTHICK. That is everybody occupying key roles that we felt you would need today. Now may I ask Dr. Babbidge to make a brief introductory statement about progress of the programs under his supervision. Dr. BABBIDGE. Mr. Chairman, there have been two important developments in the student loan program since our last appearance before this committee. Both concerned measures we have taken to assure a fair distribution of loan funds among the participating institutions. As I explained last time, the limited funds initially available for the loan program, together with the astounding acceptance of the program by colleges and universities, resulted in the granting of inadequate allocations to many institutions. We were very much aware that some imbalances in the distribution of the funds had occurred. Consequently, we sent a letter to the presidents of about 300 colleges and universities, suggesting they reduce their requests for fiscal year 1959 loan funds, so that the supplemental funds could be distributed more evenly to other institutions in their respective States. Each of these 300 institutions had originally submitted a perstudent request in excess of 75 percent of the requests in that State. I am happy to report to you that virtually all of these institutions have voluntarily reduced their requests, and as a consequence the other institutions participating in this program may expect to receive more substantial and more balanced supplemental allocations. Institutional allotments already have been calculated. Award letters are all prepared, and announcements will go out the instant funds are appropriated. Quite apart from any considerations of equity among participating institutions, Mr. Chairman, I think this committee will take pleasure in knowing that our office already has received some 13,000 signed copies of the affidavit and oath form, indicating that at least that number of boys and girls already are being assisted by the national defense student loan funds. Mr. Elliott. You have received 13,000 already? Dr. BABBIDGE. That is correct. Mr. ELLIOTT. Now, do the institutions understand that additional moneys are in process of being appropriated? Dr. BABBIDGE. I am confident they do, Mr. Chairman. We have been in quite steady communication with all the participating institutions. Mr. ELLIOTT. I think that is important to know, for them to know that the funds are on the way, that they are temporarily enmeshed in the legislative process, but I am confident that we will have such funds. By the way, how much is contained for loans in the $75,300,000? Dr. BABBIDGE. $25 million. Mr. ELLIOTT. Now, do you have a list of institutions and the manner in which that money will be distributed among the institutions when you have it? Dr. BABBIDGE. The institutional allotments have been calculated, Mr. Chairman, and they are available. I did not bring them with me today. Mr. ELLIOTT. Would there be any reason why we could not put them in this report? Dr. BABBIDGE. Only this possible complication, Mr. Chairman: That between now and the time the supplemental funds are finally voted by the Congress, if any one college withdraws, all of the funds allotted to institutions in that State must be recalculated. For this reason we have not specifically announced to the institutions what their allotments would be, because they may change. Dr. DERTHICK. May I address myself to you, Mr. Chairman, and confer with Dr. Babbidge at the same time? If we submitted this for the record with the proper footnote, or explanatory footnote, do you see objection to that? Dr. BABBIDGE. No. You would not raise any false hopes, because if institutions did withdraw, the effect would be to increase rather than decrease the allotments to other participating institutions. So I see no real danger or harm from a program point of view in making that list of institutional allotments a part of the record. Dr. DERTHICK. Then we will be glad to do that, Mr. Chairman. (Information referred to follows:) U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, OFFICE OF EDUCATION NATIONAL DEFENSE EDUCATION ACT OF 1958 TITLE II-NATIONAL DEFENSE STUDENT LOAN PROGRAM 1959 SUPPLEMENTAL ALLOCATIONS TO INSTITUTIONS In anticipation of early congressional approval of a 1959 supplemental appropriation of $24.5 million for this program, steps have been taken to determine the amount of these moneys that, under the terms of the statute, might be allocated to each of the participating institutions. Immediately following congressional approval of this appropriation and other required approvals for its obligation, official allocation award letters will be forwarded to all participating institutions. May 13, 1959. Alabama: Alabama Agricultural and Mechanical College, Normal....... Alabama College, Montevallo $11, 999 Alabama Polytechnic Institute, Auburn. Alabama State College, Montgomery Birmingham Southern College, Birmingham_ Florence State College, Florence... Jacksonville State College, Jacksonville. Livingston State College, Livingston.. Daniel Payne College, Birmingham. Troy State College, Troy.. Alaska: Tuskegee Institute, Tuskegee Institute. University of Alabama, University 14, 398 3, 551 2,933 12, 979 4, 799 6, 141 2, 399 22, 397 40, 963 94, 815 5,547 5, 295 8, 025 35, 464 3,998 6, 671 Arkansas: Agricultural, Mechanical and Normal College, Pine Bluff... Arkansas Agricultural and Mechanical College, College Heights__ Arkansas College, Batesville__ Arkansas Polytechnic College, Russellville. Arkansas State College, State College. Fort Smith Junior College, Fort Smith. Harding College, Searcy... Henderson State Teachers College, Arkadelphia. John Brown University, Siloam Springs. Art Center School, The, Los Angeles.. 8, 085 Chapman College, Orange. Bakersfield College, Bakersfield.. Chico State College, Chico- 24, 473 Chouinard Art Institute, Los Angeles.. 50, 126 Claremont Graduate School, Claremont.. City College of San Francisco, San Francisco. 15, 765 50, 935 Coalinga College, Coalinga. 4, 176 College of the Pacific, Stockton..... College of the Holy Names, Oakland.. 2, 752 College of San Mateo, San Mateo... 7,277 73, 946 52, 532 |