sums computed for any of such remaining schools from being reduced to less than the amount it received for such fiscal year ending June 30, 1969, under this section.

increase

"(b) (1) The Secretary shall not make a grant under this sec- Enrollment tion to any school unless the application for such grant contains requirement. or is supported by reasonable assurances that for the first school year beginning after the fiscal year for such grant is made and each school year thereafter during which such a grant is made the first-year enrollment of full-time students in such school will exceed the average of the first-year enrollments of such students in such school for the two school years having the highest such enrollment during the five school years during the period of July 1, 1963, through June 30, 1968, by at least 22 per centum of such average first-year enrollments, or by five students, whichever is greater. The requirements of this paragraph shall be in addition to the requirements of section 721 (c) (2) (D) of this Act, where applicable. The Secretary is authorized to waive (in whole or in part) the provisions of this paragraph if he determines, after consultation with the National Advisory Council on Health Professions Educational Assistance, that the required increase in first-year enrollment of full-time students in a school cannot, because of limitations of physical facilities available to the school for training, be accomplished without lowering the quality of training provided therein.

7 Stat. 166. Waiver.

42 USC 293a.

82 Stat. 776.

"(2) Notwithstanding the preceding provisions of this sec- Limitation. tion, no grant under this section to any school for any fiscal year may exceed the total of the funds from non-Federal sources expended (excluding expenditures of a nonrecurring nature) by the school during the preceding year for teaching purposes (as determined in accordance with criteria prescribed by the Secretary), except that this paragraph shall not apply in the case of a school which has for such year a particular year-class which it did not have for the preceding year or in the case of Howard University.

"(c) (1) For purposes of this part and part F, regulations Post, p. 779. of the Secretary shall include provisions relating to determination of the number of students enrolled in a school, or in a particular year-class in a school, or the number of graduates, as the case may be, on the basis of estimates, or on the basis of the number of students who were enrolled in a school, or in a particular year-class in a school, or were graduates, in an earlier year, as the case may be, or on such basis as he deems appropriate for making such determination, and shall include methods of making such determinations when a school or a year-class was not in existence in an earlier year at a school.

students."

"(2) For purposes of this part and part F, the term 'full-time "Full-time students' (whether such term is used by itself or in connection with a particular year-class) means students pursuing a fulltime course of study leading to a degree of doctor of medicine, doctor of dentistry, or an equivalent degree, doctor of osteopathy, bachelor of science in pharmacy, or doctor of pharmacy, doctor of optometry or an equivalent degree, doctor of veterinary medicine or an equivalent degree, or doctor of podiatry or an equivalent degree.

79 Stat. 1053.

82 Stat. 777.

Priority of projects.

"SPECIAL PROJECT GRANTS

"SEC. 772. Grants may be made, from sums available therefore from appropriations under section 770 for the fiscal year ending June 30, 1970, and for the next fiscal year, to assist schools of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, and veterinary medicine in meeting the cost of special projects to plan, develop, or establish new programs or modifications of existing programs of education in such health professions or to effect significant improvements in curriculums of any such schools or for research in the various fields related to education in such health professions, or to develop training for new levels or types of health professions personnel, or to assist any such schools which are in serious financial straits to meet their costs of operation or which have special need for financial assistance to meet the accreditation requirements, or to assist any such schools to meet the costs of planning experimental teaching facilities or experimental design thereof, or which will otherwise strengthen, improve, or expand programs to train personnel in such health professions or help to increase the supply of adequately trained personnel in such health professions needed to meet the health needs of the Nation."

(b) (1) Subsection (a) of section 773 of such Act (42 U.S.C. 295f-3 is amended by striking out "basic or special grants under section 771 or 772" and inserting in lieu thereof "grants under section 771 or 772".

(2) Subsection (b) (1) of such section is amended by inserting before "or podiatry" the following: "pharmacy, veterinary medicine".

(3) Subsection (c) of such section is amended by striking out "National Advisory Council on Medical, Dental, Optometric, and Podiatric Education" and inserting in lieu thereof "National Advisory Council on Health Professions Educational Assistance".

(4) Subsection (d) (2) of such section is amended by inserting "(excluding expenditures of a nonrecurring nature)" after "for such purpose".

(5) Subsection (e) of such section is amended to read as follows:

"(e) In determining priority of projects applications for which are filed under section 772, the Secretary shall give consideration to

"(1) the extent to which the project will increase enrollment of full-time students receiving the training for which grants are authorized under this part;

"(2) the relative need of the applicant for financial assistance to maintain or provide for accreditation or to avoid curtailing enrollment or reduction in the quality of training provided; and

(3) the extent to which the project may result in curriculum improvement or improved methods of training or will help to reduce the period of required training without adversely affecting the quality thereof."

42 USC 295f-4.

(c) (1) Section 774 (a) of such Act is amended by striking out 79 Stat. 1054. "and podiatric education" and inserting in lieu thereof "podiatric, pharmaceutical, and veterinary education".

(2) Such section 774 (a) is further amended by striking out "twelve" and inserting in lieu thereof "fourteen", and by striking out "National Advisory Council on Medical, Dental, Optometric, and Podiatric Education" and inserting in lieu thereof "National Advisory Council on Health Professions Educational Assistance".

(3) The heading of section 774 is amended to read:

"NATIONAL ADVISORY COUNCIL ON HEALTH PROFESSIONS EDUCATIONAL ASSISTANCE"

(4) Section 780 (d) of such Act is amended by striking out 42 USC 295g. "National Advisory Council on Medical, Dental, Optometric, and Podiatric Education" and inserting in lieu thereof "National Advisory Council on Health Professions Educational Assistance".

(d) The amendments made by this section shall apply with Effective date. respect to appropriations for fiscal years ending after June 30, 1969.

(e) Effective only with respect to appropriations for the fiscal year ending June 30, 1969, section 772 of such Act is amended

(1) by striking out subsection (c), and (2) by inserting before 79 Stat. 1053. the period at the end of subsection (b) the following: ", or

(3) to plan for special projects for which grants are authorized 42 USC 295f-2. under this section as amended by the Health Manpower Act of 1968."

PART C-STUDENT AID

STUDENT LOANS

SEC. 121. (a) (1) Clauses (2) and (3) of section 740 (b) of the Public Health Service Act (42 U.S.C. 294) are each amended 77 Stat. 171. by inserting", except as provided in section 746," after "fund"

the first time it appears therein.

(2) Section 740(b) (4) of such Act is amended by striking 79 Stat. 1057. out "1969" and inserting in lieu thereof "1971".

(3) Section 741 (c) of such Act (42 U.S.C. 294a) is amended by striking out "three years" the first time it appears therein and inserting in lieu thereof "one year" and by adding before the period at the end thereof "; and periods (up to five years) of advanced professional training including internships and residencies)".

(4) Section 741 (e) of such Act is amended to read as follows: "(e) Such loans shall bear interest, on the unpaid balance of the loan, computed only for periods for which the loan is repayable, at the rate of 3 per centum per year".

(5) (A) Section 741 of such Act is further amended by adding at the end thereof the following new subsections:

82 Stat. 778.

Late payment, penalty.

Minimum payment.

77 Stat. 171. 42 USC 294.

Appropriation. 79 Stat. 1057.

80 Stat. 1232.

"(j) Subject to regulations of the Secretary, a school may assess a charge with respect to a loan made under this part for failure of the borrower to pay all or any part of an installment when it is due and, in the case of a borrower who is entitled to deferment of the loan under subsection (c) or cancellation of part or all of the loan under subsection (f), for any failure to file timely and satisfactory evidence of such entitlement. The amount of any such charge may not exceed $1 for the first month or part of a month by which such installment or evidence is late and $2 for each such month or part of a month thereafter. The school may elect to add the amount of any such charge to the principal amount of the loan as of the first day after the day on which such installment or evidence was due, or to make the amount of the charge payable to the school not later than the due date of the next installment after receipt by the borrower of notice of the assessment of the charge.

"(k) A school may provide, in accordance with regulations of the Secretary, that during the repayment period of a loan from a loan fund established pursuant to an agreement under this part payments of principal and interest by the borrower with respect to all the outstanding loans made to him from loan funds so established shall be at a rate equal to not less than $15 per month."

(B) Subsection (b) (2) of section 740 of such Act is further amended by striking out "and (D)" and inserting in lieu thereof "(D) collections pursuant to section 741 (j), and (E)”.

(b) (1) The first sentence of subsection (a) of section 742 of such Act (42 U.S.C. 294b) is amended by striking out "and" before "$25,000,000" and by inserting before the period at the end thereof ", and $35,000,000 each for the fiscal year ending June 30, 1970, and the next fiscal year".

(2) The third sentence of such subsection is amended by striking out "1970" and "1969" and inserting in lieu thereof "1972" and "1971", respectively.

(3) The fourth sentence of such subsection is amended by striking out "and" before "(2)" and by inserting before the period at the end thereof ", and (3) for transfers pursuant to section 746".

(c) Section 743 of such Act (42 U.S.C. 294c) is amended by striking out "1972" each place it appears therein and inserting in lieu thereof "1974".

(d) (1) Section 744 (a) (1) of such Act (42 U.S.C. 294d) is amended by inserting "and each of the next three fiscal years," after "1968,".

(2) Section 744 (c) of such Act is amended by striking out "$35,000,000" and inserting in lieu thereof "$45,000,000".

(e) Part C of title VII of such Act (42 U.S.C. 294, et seq.) is further amended by adding at the end thereof the following new section:

"TRANSFER OF FUNDS TO SCHOLARSHIPS

"SEC. 746. Not to exceed 20 per centum of the amount paid to a school from the appropriations for any fiscal year for Federal capital contributions under an agreement under this part, or such larger percentage thereof as the Secretary may approve, may be transferred to the sums available to the school under part F of this title to be used for the same purpose as such sums. In the case of any such transfer, the amount of any funds Post, p. 779. which the school deposited in its student loan fund pursuant to section 740 (b) (2) (B) with respect to the amount so transferred may be withdrawn by the school from such fund."

dates.

(f) The amendments may be subsections (a) (1), (b) (3), Effect and (e) shall apply with respect to appropriations for fiscal years ending after June 30, 1969. The amendment made by subsection (a)(3) shall apply (1) with respect to all loans made under an agreement under part (C) of title VII of the Public 82 Stat. 779. Health Service Act after June 30, 1969, and (2) with respect to loans made thereunder before July 1, 1969, to the extent agreed to by the school which made the loans and the Secretary (but, then, only as to years beginning after June 30, 1969). The amendment made by subsection (a) (4) and (5) shall apply with respect to loans made after June 30, 1969.

SCHOLARSHIPS

SEC. 122. (a) Subsection (a) of section 780 of the Public Health Service Act (42 U.S.C. 295g) is amended by striking out 79 Stat. 1055. "or pharmacy" and inserting in lieu thereof "pharmacy, or veterinary medicine". The heading of such section is amended by striking out "OR PHARMACY" and inserting in lieu thereof "PHARMACY, OR VETERINARY MEDICINE”.

(b) Subsection (b) of such section is amended by inserting "and each of the next two fiscal years" after "1969," in the first sentence and by striking out "1970" and "1969" and inserting in lieu thereof "1962" and "1971", respectively, in the second sentence.

(c) (1) Paragraph (1) of subsection (c) of such section is amended by inserting "and each of the next two fiscal years" after "1969" in clause (D) and by striking out "1969" and "1970" in clause (E) and inserting in lieu thereof "1971" and "1972", respectively.

(2) The first sentence of paragraph (2) of such subsection (c) is amended by striking out "from low-income families who, without such financial assistance could not" and inserting in lieu thereof "of exceptional financial need who need such financial assistance to".

(d) Part F of title VII of the Public Health Service Act is further amended by inserting after section 780 the following new section: