Page images
PDF
EPUB
[blocks in formation]

At a time when less than one-half of our Nation's youth go to college from secondary schools, virtually all student loan guarantee programs are geared to the college-bound students. While a college education is a valuable asset, it is neither feasible nor desirable that all students pursue that form of postsecondary school training. There are many students who prefer to continue their education at a vocational school; usually these students know exactly the careers they wish to enter. It is in the national interest that assistance be provided to these students to help them achieve their aspirations and to provide the Nation's work force with more vocationally and technically trained persons which it so vitally needs. Only one State-New York-currently has a loan guarantee program comprehensive enough to include students in the vocational school category.

The National Vocational Student Loan Insurance Act of 1965 authorizes the appropriation of funds to encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students who wish to attend postsecondary, business, trade, technical, and other vocational schools. It also authorizes a Federal loan insurance fund for students who do not have reasonable access to a State or private nonprofit program of loan insurance.

The guaranteed loan program makes it possible for banks and other commercial sources of credit to make large amounts of credit available to students while exercising prudence in safeguarding funds entrusted to them. The program offers maximum encouragement and assistance to States to establish State loan insurance programs, and if a State is unable to do this, offers a similar assistance to nonprofit institutions and organizations.

The act also provides that the Federal Government pay the total amount of interest on loans to qualified students (those whose family income is less than an adjusted $15,000) while they are pursuing a course of study and 3 percentage points of the interest thereafter. Families with adjusted incomes over $15,000 may take advantage of the guaranteed loans but must assume all interest payments.

A supplemental appropriation of $1 million will be requested in 1966 to implement the program, and the 1967 requirements are estimated at $1,800,000. Advances for reserve funds

These funds are to be used over a 3-year period for the establishment and strengthening of State and private nonprofit reserve funds. The act authorizes $1,875,000 for making advances to State and nonprofit student loan insurance programs; $850,000 of this authorization is being requested in a fiscal year 1966 supplemental. The balance of the authorization, $1,025,000, is requested for fiscal year 1967.

Interest payments on insured loans

Subsidization of interest payments on insured loans is estimated to cost $775,000 for fiscal year 1967, or an increase of $675,000 over the 1966 request of $100,000. Payments will be made for approximately 55,000 students in 1967, compared to 15,000 in 1966.

Insurance fund

An appropriation of $50,000 is being requested, in a fiscal year 1966 supplemental appropriation, to establish the Federal loan insurance fund for those students without access to a State or private nonprofit program. A charge of one-fourth of 1 percent will be made to all lending agencies to which insurance certificates are issued. This charge, together with the initial appropriation of $50,000 is believed to be sufficient to cover any defaults in fiscal year 1966. This amount will be transferred in 1967 to an account entitled the "Student loan insurance fund" which will be established by merging the student loan insur

ance fund created by section 431 of the Higher Education Act of 1965 and the vocational student loan insurance fund created by section 138 or the Vocational Student Loan Insurance Act of 1965.

Allotment of Federal funds to States and outlying parts under the Vocational Education Act of 1963 (Public Law 88-210)

[graphic][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed]

1 Based upon authorizations of $177,500,000 with 10 percent reserved for research and special project activities.

2 No more than 1 percent of such allotment or $10.000 (whichever is the greater) may be expended for the development of the State plan provisions for work-study programs or for the administration of such

programs.

Total Agriculture occupations economics

Allotments to States and territories, George-Barden and supplemental acts, fiscal years 1966 and 1967 1

State or territory

Grand total

Title II-
Practical

nurse

training

Title IIITechnical education

Title I

Distributive

Home

Trades and industry

Fishery trades and industry

[blocks in formation]
[graphic][subsumed][subsumed]

Allotments to States and territories, George-Barden and supplemental acts, fiscal years 1966 and 1967-Continued

New Mexico..

New York.

North Carolina.

North Dakota..

Oregon..

Pennsylvania..

South Carolina.

Tennessee.

Texas.

Utah..

Vermont.

Virginia..

Washington.

Wisconsin.

Wyoming.

District of Columbia.

American Samoa..

American Samoa..

Virgin Islands.

1 Based upon U.S. Census of Population, 1960.

National Vocational Student Loan Insurance Act of 1965, advances for reserve funds

[graphic][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][merged small][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small]

Senator HILL. You may proceed, Mr. Ludington.

Mr. LUDINGTON. I have a short statement, Mr. Chairman, which I would like to read.

Mr. Chairman and members of the committee, we are requesting $250,791,000 for "expansion and improvement of vocational education in 1967," a net decrease of $2,700,000 from 1966.

The Vocational Education Acts have permitted States to provide for new orientation of existing programs and to revitalize the total program of vocational-technical education to reflect the rapidly changing needs of the labor force in all segments of our economy. Our estimate proposes continued support of the program at the 1966 level of $209,741,000 for grants to States under the Vocational Education Act of 1963 and George-Barden and supplemental acts.

APPALACHIAN REGIONAL DEVELOPMENT ACT

Under provisions of the Appalachian Regional Development Act of 1965, funds are authorized for area vocational school construction. Our request includes the remaining $8 million of the $16 million total authorized for the duration of the act. With matching State funds this total amount will provide facilities for 6,000 trainees.

The problems of a rapidly changing technology and the resultant industrial reorganization and changing job composition, intensified social and economic developments, and an expanding and changing work force have resulted in the need for increased Federal support of research in vocational education. Curriculum development pro

« PreviousContinue »