ment who are working in science areas, that scientists who were appointed to administrative positions in the Government 10 or more years ago are actually no longer scientists, but have become administrative officers; that they have lost contact with the latest advancements in the fields of science in which they were formerly proficient; that, although these scientists may be good executives, in order that they may perform the services required of them in accordance with the highest possible standards, they should have refresher courses or periodical assignments involving research in order to keep abreast of the latest developments in their respective fields of science.

National Science University.-As another possible approach to the problem, it was also suggested by some of the scientists and Government officials who are familiar with these problems, that consideration be given to the establishment of a National Science University which would enable administrators of Federal science programs to continue their studies either intermittently or on an alternating or sabbatical basis.

Academy of Science.-Originally, the staff proposed to the committee that a National Academy of Science be created. In view of the opposition that developed on the part of educational leaders and others who were familiar with the problems involved, this proposal was abandoned. It was contended that such an Academy would duplicate the existing facilities of science and technological departments of universities and institutes of technology which are fully qualified in every way to provide undergraduate and graduate instruction in all fields of science. In other words, it was considered that the establishment of an Academy of Science would actually constitute Government control and competition in the field of science education, which, it was contended, would be detrimental to the welfare of existing educational institutions, supported by State or private funds. Concern was also expressed over the political implications of such an institution.

Dr. Wallace R. Brode, president of the American Association for the Advancement of Science, in commenting on this proposal, advised the committee staff that

I do not believe an Academy of Science similar to the Military Academy and Naval Academy is practical. Such an Academy of Science would not produce a product for which the Government has an exclusive monopoly of employment as in the case of Army and Navy officers. The many types of scientists in the Government and the similar competitive positions in universities and industries would require specialization institutions such as nuclear, hydraulic, electronic, geological, and mathematical, and experts could not be produced all in the same mold, as are military and naval officers. It should be noted that while the graduates of our military academies are given a bachelor of science degree, the broad military requirements prevent a major in mathematics, languages, history, or psychology and such graduates have considerable difficulty being admitted to graduate standing in universities which adhere to what are considered reasonable admission requirements for advanced study in any specific area or subject.

Facilities for training of graduate scientists.-With respect to adequate graduate facilities for further training of graduate scientists, the staff was advised that there is a real need for such facilities to enable qualified scientists to do basic research or to prepare themselves to teach in scientific fields.

The need for such facilities was clearly stated by Dr. James R. Killian, Jr., special assistant to the President for science and technology, in a speech before the conference on America's Human Resources To Meet the Scientific Challenge held at Yale University, February 3 and 4, 1958. The following are pertinent extracts from Dr. Killian's speech:

Hopefully, we are coming out of the long period during which science, mathematics, and the languages have been neglected. * **But the time has come when we do need to recognize the importance of priorities, and the necessity of discriminating choices so that we can temper our prodigality of aims by sobering considerations of quality and concentration.

*** Until now our chief reliance in engineering education has been on undergraduate preparation-a system which has not universally risen above the training of technicians. While there will long continue to be an appropriate and essential place for the really professional 4-year undergraduate engineering program, it must be supplemented by expanded graduate study in engineering.

Many industries have been ahead of the colleges in recognizing this need. As a consequence, they have evolved training programs of their own to carry their engineers beyond the levels of their 4-year undergraduate education. If we had the graduate school capacity to handle these men, it would be more appropriate and advantageous in the long run for them to receive their advanced training in the university, rather than in industry. The engineer, no less than the scientists, can benefit from an atmosphere of uncommitted research, and our technological advance would be more certain if top graduates of 4-year engineering courses proceeded on to graduate study.

** * Even though their enrollments have been down, the teaching loads in our engineering schools-exceptions exist, of course are very high, with the result that their faculties have too little opportunity for the creative work that leads to further professional development both as teachers and engineers.

** *

The success of engineering education in attracting and holding more first-rate teachers will depend upon accelerating the development of more and stronger graduate programs. The graduate school and the research associated with it can provide engineer-teachers with opportunities for professional activities and growth as engineers which they now find chiefly in practice outside of educational institutions. In those engineering institutions where strong graduate schools exist and where there is a fruitful alliance with basic science, an environment satisfying to first-rate engineers has been better achieved.

Summation

In its original consideration of this problem, the staff felt that a National Science Academy might meet the Nation's requirements for basic research, refresher training and graduate technological and scientific study referred to by Dr. Killian. As previously noted, however, after the staff was made aware of the objections to the establishment of an Academy of Science, that proposal was omitted from the bill, and the idea of establishing research institutes or centers, using existing university facilities wherever possible, was developed. The committee may desire to give consideration to broadening the scope of the institutes proposed by this title to enable them to provide advanced graduate training for the younger scientists and refresher training for those with more experience whose administrative duties have resulted in failure to keep abreast of late developments in their specialized fields of science.

TITLE III. EDUCATIONAL LOANS

Section 301 sets forth definitions relative to the terms used in this title.

Section 302 (a) directs that the Secretary shall establish a program providing for loans, and loan insurance, in accordance with the provisions of this title, for the purpose of encouraging and assisting individuals to obtain education beyond the secondary school level in the fields of the physical sciences, to include but not limited to, physics, chemistry, astronomy, geophysics, oceanography, and meteorology, the biological sciences, mathematics, or engineering. The Secretary may establish priorities for such loans or loan insurance for education in particular fields whenever he determines such priorities are in the national interest.

Subsection (b) provides that this title shall be administered by the Administrator under the direction of the Secretary.

Subsection (c) authorizes the Secretary to establish a Bureau of Student Loans under this title to be headed by a Loan Director responsible to the Administrator to assist in carrying out the provisions of this title.

Under subsection (d) the Secretary may establish such rules and regulations as are necessary to carry out the provisions of this title. In establishing such rules and regulations and in carrying out such provisions the Secretary shall consult and cooperate with State agencies primarily concerned with higher education and with established associations of privately endowed colleges and universities.

Section 303 (a) establishes in the Treasury a special fund to be known as the Federal Education Loan and Loan Insurance Fund, which shall be used as a revolving fund for making loans under this title and for loan insurance purposes under this title.

Subsection (b) authorizes appropriations for direct-loan purposes for the fiscal year beginning July 1, 1958, the sum of $40 million; for the fiscal year beginning July 1, 1959, the sum of $60 million; for the fiscal year beginning July 1, 1960, the sum of $80 million; for each of the fiscal years beginning July 1, 1961, 1962, 1963, and 1964, the sum of $100 million; and thereafter so much as shall be necessary to maintain the direct-loan account in the revolving fund, and subsection (c), such amounts as are authorized for loan purposes.

Under section 304 of this title provision is made for the distribution among the States of loans and loan insurance by the Secretary in accordance with such formula as he determines from such information as may be reasonably available to him (1) to be best suited for the purposes of the Science and Technology Act, and (2) to recognize the needs of each State based, among other criteria, on the number of students graduating from secondary schools, the number of young people in selected specific age categories between 17 and 21, the per capita income in such State, and the burden which the State is bearing in higher education through facilities, direct assistance, or otherwise. Section 305 provides that loans made directly to individuals under the provisions of this title (1) shall be made in such numbers as may be possible with available funds; (2) shall be made upon application in such form and containing such information as may be prescribed by the Secretary; (3) shall be made only in cases where loans from private sources cannot be obtained on terms as favorable to the borrower; except, if study is to be made abroad this requirement need not be met; (4) shall not exceed $1,500 for any academic year of education, and shall not be made for more than 5 such years of education, including postgraduate education at the discretion of the Secretary; (5) shall be made only to individuals certified by an institution of higher education as acceptable for the course of study for which such loan is sought; (6) shall be made without security; except that the borrower shall execute a promissory note payable to the United States, and if the borrower is a minor such note shall bear the endorsement of his or her parent or guardian; (7) shall be due and repayable not later than 10 years after the date on which the borrower ceases to pursue a full-time course of study at an institution of higher education on such terms as the Secretary may prescribe or as shall be approved by him: Provided, That the first installment of repayment shall commence not later than 1 year after ceasing fulltime study or such sooner time as the student shall accept full-time compensated employment; (8) shall bear interest at 2 per centum per annum or such higher rate as shall be fixed by the Secretary; but no interest shall accrue prior to the commencement period of repayment or 1 year after ceasing full-time study, whichever is sooner; (9) may be made in such installments as the Secretary deems appropriate, and in the event made in such installments, may be discontinued at any time the borrower fails to maintain satisfactory proficiency in the course of study for which the loan is made; (10) shall not be made to any individual for any period during which he is receiving benefits under part VIII of Veterans Regulation Numbered 1 (a), title II of the Veterans' Readjustment Assistance Act of 1952, the War Orphan's Educational Assistance Act of 1956, or any Federal scholarship; and (11) shall be used only to defray the costs, while pursuing a full-time course of study in the fields of the physical or biological sciences, mathematics, or engineering, at an institution of higher education, of tuition, fees, books, supplies, board, lodging, and other expenses necessary to the education being received at such institution.

Section 306 provides that the Secretary may cancel the payment of any loan made or insured under the provisions of this title if the borrower, upon completion of his course of study accepts full-time employment in the Federal Government, or employment on any

project or program designated by the Secretary in the fields of the physical or biological sciences, mathematics, or engineering. Such loans shall be canceled or paid at the rate of $1,500 for each year in which the borrower is employed in a full-time position in the physical or biological sciences, mathematics, or engineering, in any agency of the Federal Government or on any project or program designated by the Secretary and as long as the borrower is so employed all interest on his loan shall be canceled or paid.

Loan insurance provided for under section 307 of this title (1) may be provided for loans not in excess of a cumulative total of $1 billion: Provided, That the Secretary shall recommend to the Congress such upward limit as he deems advisable after the first 7 full years of operation of this program and periodically thereafter; (2) shall provide for payment to financial institutions and institutions of higher education of 90 percent of any losses suffered on loans; (3) shall insure only loans meeting the requirements established for direct loans in clauses (4), (5), (7), (8), (9,) (10), and (11) of section 405; provided that the Secretary shall make direct grants to financial institutions and institutions of higher education sufficient to cover the difference between the interest payable by the student over the period covered by the loan and the total interest which the institution receives or requires on similar loans; (4) shall be without charge to the borrower or lender; and (5) shall be subject to such additional terms, conditions, and requirements as the Secretary may determine to be necessary to protect the financial interests of the United States and to carry out the purposes of this title.

Section 308 provides that nothing in this title shall preclude an institution of higher education which loans money subject to insurance from charging a reasonable servicing charge under rules and regulations promulgated hereunder.

ACCEPTANCE OF GRANTS AND BEQUESTS

Under section 309, the Secretary is authorized to accept gifts, grants, bequests, or devises for carrying out the purposes of this Act. To encourage State assistance in making student loans, the bill would also authorize, under section 310, direct grants up to $200,000 to any one State in any fiscal year to meet operating expenses of nonprofit corporations chartered for the principal purpose of making loans to qualified students. The program, which would be directed by the Secretary of the proposed Department of Science and Technology through the Bureau of Student Loans, created under section 302, would be directed toward providing educational assistance to students in the fields of physical and biological sciences, mathematics and engineering.

Section 311 (a) provides that nothing contained in this title shall be construed to authorize any department, agency, office, or employee of the United States to exercise any direction, supervision, or control over the curriculum or program of instruction of any educational instition or over its administration or personnel.

Subsection (b) requires that so far as practicable, the Secretary shall provide for administration of loans through and in conjunction with the nonprofit corporations referred to in section 410, or when there is no such corporation, through the institution of higher education at