STUDENT LOAN PROGRAM

The reduction is due primarily to our proposal to merge the title II student loan program with the loan insurance program under the Higher Education Act in order that the loan capital may be provided by private sources rather than the Federal Government.

Senator HILL. That is the same thing we have been talking about all morning.

Mr. MUIRHEAD. Yes, we have discussed this at some length and we have discussed with you the new legislative proposals that are now before Congress.

For title III instructional assistance, the request of $54.200,000 for grants to States for equipment and minor remodeling represents a decrease of $25 million since our estimate for the Elementary and Secondary Education Act will provide increased assistance in this area. Also, included, at the 1966 level, are $1,500,000 for loans to nonprofit private schools and $7,500,000 to assist States in supervision and effective administration of the program.

An amount of $81,957,000 for title IV graduate fellowships will support 6,000 new awards and 9,000 continuing fellows, and will help to meet the critical demand for well-qualified college teachers.

For title V guidance, counseling, and testing, our estimate continues the 1966 level of $24,500,000 for grants to States to improve these vitally needed services, and $7,250,000 to train about 1,530 counseling personel.

CENTERS FOR ADVANCED TRAINING

In order to strengthen the teaching of modern foreign language and area studies, we are requesting $15,800,000 for title VI-an increase of $1,800,000 over 1966. Over 100 centers for advanced training will be supported, approximately 2,175 fellowships will be awarded, and an estimated 90 research projects will be initiated to develop instructional materials and improved teaching techniques.

Senator HILL. How many of these centers do you have today?
Mr. MUIRHEAD. We have 98.

Senator HILL. That will increase them by 12?

Mr. MUIRHEAD. Yes, sir.

NUMBER OF FELLOWSHIPS

Senator HILL. How many fellowships do you have?
Mr. MUIRHEAD. I would have to check that.

Senator HILL. You can supply that for the record?
(The information follows:)

Graduate, undergraduate, and postdoctoral fellowships under title III, NDEA

1966 estimate_.

1967 estimate___

1,796

2, 034

REQUESTS FOR TITLES VII, X, AND XI

Mr. MUIRHEAD. Our request of $4,400,000 for title VII, an increase of $400,000 over 1966, will support about 70 new research and dissemination projects to assist in adapting the communications media, such as television, to educational uses.

For title X statistical services, the request of $2,250,000, the same as 1966, will assist State educational agencies in improving their statistics which are fundamental in forming basic educational policy and in providing quality programs.

An amount of $40 million for title XI institutes, an increase of $5,103,000 over 1966, will support about 670 institutes to train approximately 28,000 teachers in such subjects as English, reading, history, and geography, and teachers of disadvantaged youth.

We will be happy to answer any questions you may have.

ACQUISITION OF EQUIPMENT AND MINOR REMODELING

Senator HILL. Is it your contention that these reductions that you have made will be made up by other grants?

Mr. MUIRHEAD. Yes, sir; in at least one of the instances I referred to that would be the case. I think it is also proper for me to underscore that a very proportionate share of the decrease suggested here will not be such a large decrease if the Congress enacts and this committee approves an appropriation for the National Defense Educational Act student-loan program which has been submitted.

Senator HILL. There is a reduction of acquisition of equipment and minor remodeling, some $33,800,000; is that correct?

Mr. KARSH. We have a $25 million reduction in this program in that area, sir.

Senator HILL. I believe this is under what you requested of the Bureau of the Budget.

Mr. MUIRHEAD. That is correct.

Senator HILL. You have a reduction of $25 million you say?

Mr. KARSH. That is correct. We have an amount of $54.3 million contemplated in fiscal year 1967 which is $25 million less than the amount that was provided in the fiscal year 1966.

Senator HILL. What is the offset on there?

Mr. KARSH. That is the same offset that Mr. Muirhead was talking about in the elementary and secondary area where titles II, I, and a few other areas of comparable support have been put back into the local schools.

Senator HILL. In other words, you don't really look to any real reduction?

Mr. KARSH. Not in the aggregate.

Senator HILL. You do not look for any reduction in the aggregate then?

Mr. KARSH. That is right.

REDUCTION FOR GRADUATE FELLOWSHIPS

Senator HILL. You have a reduction of $7,350,000 for 1,500 graduate fellowships. You requested that and the Bureau of the Budget made that reduction.

Mr. MUIRHEAD. You are quite right. The program is authorized at the level of 7,500 fellowships for this year, but we are suggesting that it should remain at the level of 6,000 in this particular fiscal year. Senator HILL. This is the same level for fiscal year 1966? Mr. MUIRHEAD. Yes, sir.

Senator HILL. Then in none of these categories do you really contemplate any reduction? Do you feel they will be offset by some other funds? Is that correct?

Mr. MUIRHEAD. We feel that the amounts that we are suggesting here will achieve the objectives of the program.

Senator HILL. When you consider all of the funds; is that correct? Mr. MUIRHEAD. Yes, sir.

Senator HILL. Doctor, thank you very much, sir. You have been very helpful and we appreciate it.

EDUCATIONAL IMPROVEMENT FOR THE HANDICAPPED

STATEMENT OF SAMUEL G. SAVA, ASSISTANT DIRECTOR, DIVISION OF EDUCATIONAL PERSONNEL TRAINING; ACCOMPANIED BY MORVIN WIRTZ, DEPUTY DIRECTOR, OFFICE OF DISADVANTAGED AND HANDICAPPED; JAMES A. MOSS, DIRECTOR, HANDICAPPED CHILDREN AND YOUTH BRANCH; NORMAN KARSH, ASSISTANT COMMISSIONER FOR ADMINISTRATION; JOE G. KEEN, BUDGET OFFICER; AND JAMES B. CARDWELL, DEPARTMENT COMPTROLLER

APPROPRIATION ESTIMATE

"EDUCATIONAL IMPROVEMENT FOT THE HANDICAPPED

"For grants for training and research and demonstrations with respect to handicapped children pursuant to the Act of September 6, 1958, as amended (20 U.S.C. 611-617), and section 302 of the Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963 (Public Law 88-164), [$21,500,000] as amended (79 Stat. 429), $32,600,000.

"[For an additional amount for 'Educational improvement for the handicapped', $4,000,000.]"

Appropriation:

1966.

1967.

Amounts available for obligation

$25, 500, 000 32, 600, 000

41 Grants, subsidies, and contributions-total obligations by