An Act to amend the Higher Education Act of 1965, the National Defense Education Act of 1958, the National Vocational Student Loan Insurance Act of 1965, the Higher Education Facilities Act of 1963, and related Acts.
PL 90-575 (S.3769), enacted 10/16/1968

1014 
PUBLIC LAW 90-575-OCT. 16,1968 
[82 STAT. 
Public Law 90-575 
October 16, 1968 
AN A C T 
^^•^'^^^'i 
To amend the Higher Education Act of 1965, the National Defense Education 
Act of 1958, the National Vocational Student Loan Insurance Act of 1965, 
the Higher Education Facilities Act of 1963, and related Acts. 
Be it enacted hy the Senate and House of Representatives 
of the 
ti^^ A^me^'i^e'ms 
United States of America in Congress assembled^ That this Act, with 
o
f 1968. 
the following table of contents, may be cited as the "Higher Education 
Amendments of 1968". 
TABLE OF CONTENTS 
TITLE I—STUDENT ASSISTANCE 
PART A—AMENDMENTS TO EDUCATIONAL OPPOETUNITT GEANT PEOGEAM 
Sec. 101. Extension of educational opportunity grant program 
Sec. 102. Maximum amount of educational opportunity grant; treatment of 
work-study assistance for matching purposes 
Sec. 103. Administrative expenses 
Sec. 104. Revision of maintenance of effort provision 
Sec. 105. Consolidation and revision of talent search and Upward Bound pro-
grams ; special services to disadvantaged students in institutions of 
higher education 
PAET B—AMENDMENTS TO INSURED STUDENT LOAN PEOGEAM 
Sec. 111. Extension of authority for payments to reduce student interest costs; 
elimination of authority to make such payments during repayment 
period 
Sec. 112. Extension of Federal loan insurance program and of authority to 
guarantee outstanding non-federally insured loans 
Sec. 113. Repayment by Commissioner of loans of deceased or disabled borrowers 
Sec. 114. Federal advances to reserve funds of non-Federal student loan insur-
ance programs 
Sec. 115. Amendments relating to administrative cost allowance and interest rate 
provisions 
Sec. 116. Merger of National Vocational Student Loan Insurance Act of 1965 with 
student loan insurance program of Higher Education Act of 1965 
Sec. 117. Authorizing deferment of repayment of non-federally Insured loans dur-
ing military, VISTA, or Peace Corps service, or attendance at eligible 
institution ; Federal payment of interest accruing during such attend-
ance or service 
Sec. 118. Participation by pension funds and Federal savings and loan associa-
tions 
Sec. 119. Access to Federal loan insurance program 
Sec. 120. Coordination between non-Federal and Federal programs with respect 
to maximum amounts of individual loans insured, issuance of install-
ment obligations, and minimum amounts of repayment installments 
on such loans 
PART C—AMENDMENTS TO COLLEGE WOEK-STUDY PEOGEAM 
Sec. 131. Transfer of work-study provisions to Higher Education Act of 1965 
Sec. 132. Extension of work-study program 
Sec. 133. Eligibility of area vocational schools 
Sec. 134. Revision of matching provisions 
Sec. 135. Set-aside for residents of American Samoa or the Trust Territory of the 
Pacific Islands 
Sec. 136. Elimination of average hours of employment limitation during non-
regular enrollment periods 
Sec. 137. Revision of maintenance of effort requirement 
Sec. 138. Administrative expenses 
Sec. 139. Eligibility of proprietary institutions of higher education 
PAET D—COOPERATIVE EDUCATION PEOGEAM S 
Sec. 141. Grants to institutions of higher education for programs of cooperative 
education; grants and contracts for training and research in co-
operative education 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1015 
PART E—GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE 
Sec*. 151. Amendments effective uixxii enactment 
Sec. 1.12. Amendments effe<'tive for fiscal year 1070 and thereafter 
1'ART F—AMENDMENTS TO NATIONAL Dsai-ENSE STUDENT LOAN PB(X}RAM (TITLE 
II 
OF NATIONAL DEB'ENSE PJDUCATION ACT OF WUH) 
Sec. 171. Extension of national defense student loan program 
Sec. 172. Administrative exi)enses 
Sec. 173. Amendmenits to teacher cancellation provision 
Sec. 174. Eligibility of proprietary institutions of higher education 
Sec. 17.5. Elimination of reciuirement of spetnal consideration for students of 
superior academic background 
Sec. 176. Waiving oath of allegiance reciuirement for residents of Tru.st Territory 
of Pacific Islands 
TITLE II—AMENDMENTS TO OTHER PROVISIONS OF HIGHER 
EDI'C'ATION A(^T OF 1965 
PART A—AMENDMENTS TO COMMUNITY SERVICE PROGRAM PROVISIONS 
(TITLE 
I) 
Sec. 201. Extension of grant program 
Sec. 202. Modification of requirement for comprehensive, cxx>rdinated, and state-
wide system of conmiunity service programs 
Sec. 203. Modification of Federal share provision 
PART B—AMENDMENTS TO COLLEGE LIBRARY ASSISTANCE AND LIBRAIIY TRAINING 
AND 
RESEARCH PROGRAMS (TITLE 
II) 
Sec. 211. Extension of college library assistance program: (Part A) 
Sec. 212. Eligibility of branch institutions for supplemental and si)ecial purpose 
grants 
Sec. 213. Revision of maintenance-of-effort 
requirement for special purpose 
grants 
Sec. 214. Eligibility of new institutions for basic grants 
Sec. 215. Extension of library training and research program ( P a r t B ) 
Sec. 216. Amendments to librarianship training provisions 
Sec-. 217. Extension of Library of Congress program ( P a r t C ) 
Sec. 218. Clarifying authority to purchase copies ; increasing authority to i)repare 
catalog and bibliographic materials; authorizing librarian to act as 
acquisitions agent 
PART C—AMENDMENTS TO DEVELOPING INSTITUTIONS PROGRAM 
(TITLE 
III) 
Sec. 221. Extension of developing ins'titutions program 
Sec. 222. Increased share for junior colleges 
Sec. 223. Professors emeritus 
PART D—AMENDMENTS TO EDUCATION PROFESSIONS DEVELOPMENT PROGRAM 
(TITLE 
V) 
Sec, 231. Extension of programs 
Sec. 232, Provision of medical insurance coverage to Teacher Corps members not 
otherwise covered. 
Sec, 233. Authorizing State educational agencies to administer directly programs 
of teacher and teacher aide recruitment and training 
Sec. 234. Minimum allotment for Title V-B, Subpart 2 
Sec. 235. Fellowships for school administrators 
Sec. 236. Allocation of fellowships under Title V-C 
Sec. 237. Technical corrections 
Sec. 238. Increase in cost-of-education allowance 
Sec, 239. Equitable distribution under Title V-D 
PART E — E Q U I P M E N T AND MATERIALS FOB HIGHER EDUCATION 
(TITLE 
VI) 
Sec. 241. Extension of program 
Sec. 242. Eligibility of combinations of ins'itutions 
Sec. 243. Consultation 
PART F—NETWORKS FOB KNOWLEDGE 
Sec. 251. Sharing of educational and related resources among colleges and uni-
versities 
96-600 O - 69 - 67 
1016 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
PART G—EDUCATION FOB THE PUBLIC SERVICE 
Sec. 261. Grants, contracts, and fellowships to strengthen programs of educa-
tion for the public service 
PART H—IMPROVEMENT OF GRADUATE PROGRAMS 
Sec. 271. Authorization 
PART I—LAVI^ SCHOOL CLINICAL EXPERIENCE PROGRAMS 
Sec. 281. Authorization 
PART J—AMENDMENTS TO GENERAL PROVISIONS 
(TITLE 
X I I ) 
Sec. 291. Establishment of Advisory Council on Graduate Education; aboli-
tion of Higher Education Facilities Act Advisory Committee 
Sec. 292. Dissemination of information 
Sec. 293. Conforming definitions of institution of higher education in Higher 
Education Act of 1965 and in National Defense Education Act of 
1958 
Sec. 294. Insertion of definition of "combination of institutions of higher edu-
cation" in Higher Education Act of 1965 
Sec. 295. Provisions for adequate leadtime and for planning and evaluation in 
higher education programs 
TITLE III—AMENDMENTS TO OTHER PROVISIONS OF T H E NATIONAL 
DEFENSE EDUCATION ACT OF 1958 
PART A—EQUIPMENT AND MATERIALS FOR ELEMENTARY AND SECONDARY 
EDUCATION (TITLE 
III) 
Sec. 301. Extension of program 
Sec. 302. Provision for within-S.tate equalization in Stote-imposed require-
ments for financial participation of project applicants 
Sec. 303. Private schools: Authorizing reallotment of set-aside for loans; repeal-
ing loan allotment formula 
Sec. 304. Equipment for educationally deprived children 
PART B—AMENDMENTS TO NATIONAL DEFENSE FELLOWSHIP PROGRAM 
Sec. 311. Extension of program 
Sec. 312. Increasing maximum length of fellowship from three to four years in 
special circumstances, and requiring institutional effort to encourage 
recipients to enter or continue teaching 
Sec. 313. Requiring stipends to be set in an amount consistent with those awarded 
for comparable fellowships 
Sec. 314. Equitable distribution of fellowships under Title IV of the National 
Defense Education Act of 1958 
PART C—GUIDANCE, COUNSELING, AND TESTING (TITLE 
V) 
Sec. 321. Extension of program 
Sec. 322. Short-term training sessions in guidance and counseling 
PART D—LANGUAGE DEVELOPMENT (TITLE 
VI) 
Sec. 331. Extension of program 
PART E—EDUCATIONAL MEDIA (TITLE 
VII) 
Sec. 341. Special personnel 
PART F—^AMENDMENT TO MISCELLANEOUS PROVISIONS (TITLE 
X) 
Sec. 351. Provision in National Defense Education Act of 1958 for the Trust 
Territory of the Pacific Islands, for schools of Department of Interior 
for Indian children, and for overseas dependent schools of Department 
of Defense 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1017 
TITLE IV—AMENDMENTS TO HIGHER EDUCATION FACILITIES ACT 
OF 1963 
Sec. 401. Extension of program 
Sec, 402. Broadening eligibility for construction grants 
Sec. 403. Annual interest grants 
Sec. 404. Extending authorization for higher education facilities construction 
assistance in major disaster areas 
Sec. 405. Increasing Federal share 
Sec. 406. Minimum Title I Allotments to States and Territories 
TITLE V—MISCELLANEOUS 
Sec. 501. Extension of program of financial assistance for strengthening instruc-
tion in the humanities and arts 
Sec. 502. Extension of International Education Act of 1966 
Sec. 503. Age quotas in youth work and training programs 
Sec. 504. Eligibility for student assistance 
Sec. 505. Rulemaking requirements 
Sec. 506. Duplication of benefits 
Sec. 507. Financial aid to students not to be treated as income or resources 
under certain programs 
Sec. 508. Presidential recommendation with respect to post-secondary education 
for all 
TITLE I—STUDENT ASSISTANCE 
PART A—AMENDMENTS TO EDUCATIONAL OPPORTUNITY GRANT 
PROGRAM 
EXTENSION OF EDUCATIONAL OPPORTUNITY GRANT PROGRAM 
20 u s e 1061. 
SEC. 101. (a) The first sentence of section 401(b) of the Higher 
Education Act of 1965 is amended by striking out "two succeeding 
79 stat. 1232. 
fiscal years" and inserting in lieu thereof "three succeeding fiscal "" "''^ '"'' 
years, $100,000,000 for the fiscal year ending June 30, 1970, and 
$140,000,000 for the fiscal year ending June 30, 1971". 
(b) (1) Such section is further amended by striking out the second 
sentence thereof. 
(2) Sections 405(b), 406(b), and 407(b) (2) of suck Act are each 
20 use loes-
amended by striking out "third sentence" and inserting in lieu thereof ^°^^' 
"second sentence". 
M A X I M U M AMOUNT OF EDUCATIONAL OPPORTUNITY GRANT; TREATMENT 
OF WORK-STUDY ASSISTANCE FOR MATCHING PURPOSES 
SEC. 102. The first sentence of section 402 of the Higher Education 
Act of 1965 is amended by striking out all that follows "which 
20 use 1062. 
amount" and inserting in lieu thereof the following: "shall not exceed 
the lesser of $1,000 or one-half of the sum of the amount of student 
financial aid (including assistance under this title, and including 
compensation paid under a work-study program assisted under part 
C of this title) provided such student by such institution and any 
assistance provided such student under any scholarship program 
established by a State or a private institution or organization, as de-
termined in accordance with regulations of the Commissioner." 
ADMINISTRATIVE 
EXPENSES 
SEC. 103. Effective for fiscal years ending on or after June 30,1970, 
section 407(a) (1) of the Higher Education Act of 1965 is amended by 
20 use loe?. 
inserting before the semicolon the following: "and of section 463 of this 
Act (relating to administrative expenses). 
Post, p. 1033. 
1018 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
REVISION OF MAINTENANCE OF EFFORT PROVISION 
SEC. 104. Effective for fiscal years ending on or after June 30,1970, 
II f^^n i^ni^ 
section 407(a) (4) of the Higher Education Act of 1965 is amended to 
read as lollows: 
" (4) provide that the institution will meet the requirements of 
Post, p. 1033. 
section 464 of this Act (relating to maintenance of effort);". 
CONSOLIDATION AND REVISION OF TALENT SEARCH AND UPWARD BOUND 
P R O G R A M S ; 
S P E C I A L 
S E R V I C E S 
T O DISADVANTAGED STUDENTS I N 
INSTI-
TUTIONS 
OF HIGHER 
EDUCATION 
20 use 1068. 
SEC. 105. (a) Section 408 of the Higher Education Act of 1965 is 
amended to read as follows: 
''IDENTIFYING QUALIFIED LOW-INCOME STUDENTS; PREPARING T H E M FOR 
POST SECONDARY EDUCATION ; SPECIAL SERVICED FOR SUCH STUDENTS I N 
INSTITUTIONS OF HIGHER 
EDUCATION 
"SEC. 408. (a) To assist in achieving the objectives of this part the 
Commissioner is authorized (without regard to section 3709 of the 
Eevised Statutes (41 U.S.C. 5))— 
" (1) to make grants to, or contracts with, institutions of higher 
education and combinations of institutions of higher education for 
planning, developing, or carrying out one or more of the programs 
described in subsection (b), 
"(2) to make grants to, or contracts with, public and private 
nonprofit agencies and organizations (including professional and 
scholarly associations) and to make contracts with public and pri-
vate agencies and organizations for planning, developing, or carry-
ing out Talent Search programs described in subsection (b) (1), 
and 
"(3) in exceptional cases, to make grants to, or contracts with, 
secondary schools, and postsecondary educational institutions 
accredited by a State, for planning, developing, or carrying out 
LTpward Bound programs described in subsection (b) (2). 
Xo grant or contract for planning, developing, or carrying out a Talent 
Search program described in subsection (b) (1) may exceed $100,000 
per year. 
"(b) The programs referred to in subsection (a) are— 
" (1) programs, to be known as 'Talent Search', designed to— 
"(A) identify qualified youths of financial or cultural need 
with an exceptional potential for postsecondary educational 
training and encourage them to complete secondary school and 
undertake postsecondary educational training. 
"(B) publicize existing forms of student financial aid, 
including aid furnished under this title, and 
"(C) encourage secondary-school or college dropouts of 
demonstrated aptitude to reenter educational programs, 
including post-secondary-school programs; 
"(2) programs, to be known as 'Uj)ward Bound', (A) which are 
designed to generate skills and motivation necessary for success 
in education beyond high school and (B) in which enrollees from 
low-income backgrounds and with inadequate secondary-school 
preparation participate on a substantially full-time basis during 
all or part of the program; or 
"(3) programs, to be known as 'Special Services for Disadvan-
taged Students', of remedial and other special services for students 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1019 
with academic potential (A) who are enrolled or accepted for 
enrollment at the institution which is the beneficiary of the grant 
or contract, and (B) who, by reason of deprived educational, cul-
tural, or economic background, or physical handicap, are in need 
of such services to assist them to initiate, continue, or resume their 
postsecondary education. 
"(c)(1) Upward Bound programs under paragraph (2) of sub-
section (b) must include arrangements to assure cooperation among 
one or more institutions of higher education and one or more secondary 
schools. Such programs must include necessary health services. Enrol-
lees in such programs may not receive stipends in excess of $30 per 
month. The cost of carrying out any such program may not exceed 
S150 per enrollee per month. Federal financial assistance by way of 
grant or contract for such a program may not be in excessi of 80 per 
centum of the cost of carrying out such program. Such programs shall 
be carried on within the States. 
" (2) Special Services for Disadvantaged Students programs carried 
on under paragraph (3) of subsection (b) may provide, among other 
things, for— 
"(A) counseling, tutorial, or other educational services, includ-
ing special summer programs, to remedy such students' academic 
deficiencies, 
"(B) career guidance, placement, or other student personnel 
services to encourage or facilitate such students' continuance or 
reentrance in higher education programs, or 
"(C) identification, encouragement, and counseling of any such 
students with a view to their undertaking a program of graduate 
or professional education. 
"(d) There are authorized to be appropriated to carry out this sec- Appropriation 
tion $10,000,000 in the fiscal year ending June 30, 1969 (of which authorization. 
$500,000 shall be available in connection with planning and related 
activities for LTpward Bound programs described in subsection (b) 
(2)), $56,680,000 for the fiscal year ending June 30,1970, and $96,000,-
000 for the fiscal year ending June 30,1971." 
(b) Effective July 1, 1969, section 222(a) of the Economic Oppor-
tunity Act of 1964 is amended by striking out paragraph (5) and by 
^^ usc 2T09 
redesignating paragraphs (6), (7), and (8) (and references thereto) 
as paragraphs (5), (6), and (7). 
(c)(1) On July 1, 1969, all functions, powers, and duties of the 
Director of the Office of Economic Opportunity with respect to Up-
ward Bound programs, are transferred to the Commissioner of Edu-
cation. No provision of law which limits the number of persons who 
may be appointed as full-time civilian employees, or temporary and 
part-time employees, in the executive branch of the Government shall 
apply to employees of the Office of Education whose duties the Direc-
tor of the Bureau of the Budget determines primarily relate (A) to 
programs carried out under section 408(b)(2) of the Higher Edu-
cation Act of 1965, or (B) to functions transferred by this para- 
^"'^' P- lois. 
graph. In applying any such provision of law to the departments and 
agencies in the executive branch, the number of such employees of the 
Office of Education shall not be taken into account. 
(2) For purposes of this subsection the term "Upward Bound pro- 
"Upward Bound 
gram" means a program carried out under section 222(a) (5) of the ^'•°^'^^"'" 
Economic Opportunity Act of 1964 (as so designated prior to the 
amendment made by subsection (b) of this section) or a comparable 
program carried out under section 221 of such Act. 
42 use 28O8. 
1020 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
PART B—AMENDMENTS TO INSURED STUDENT LOAN PROGRAM 
79 Stat. 1240; 
Ante, 
p. 634-
20 u s e 1078. 
Effective date. 
20 u s e 1079. 
EXTENSION OF AUTHORITY FOR PAYMENTS TO REDUCE STUDENT INTEREST 
COSTS; ELIMINATION OF AUTHORITY TO MAKE SUCH PAYMENTS DURING 
REPAYMENT PERIOD 
SEC. 111. (a) Section 428 (a) (4) of the Higher Education Act of 1965 
is amended by striking out "October 31, 1968" and inserting in lieu 
thereof "June 30,1971, except that, in the case of a loan made or insured 
under a student loan or loan insurance program to enable a student who 
has obtained a prior loan made or insured under such program to 
continue his educational program, such period shall end at the close 
of June 30,1975". 
(b) (1) (A) The portion of the first sentence of section 428(a) (1) 
which follows subparagraph (C) is amended by striking out ", over 
the period of the loan,". 
(B) The first sentence of section 428(a) (2) of such Act is amended 
by striking out ", and 3 per centum per annum of the principal amount 
of the loan (excluding interest which has been added to principal) 
thereafter". 
(2) The amendments made by this subsection shall apply to loans 
made on or after the sixtieth day after the date of enactment of this 
Act, except that such amendments shall not apply so as to require 
violation of any commitment for insurance made to an eligible lender, 
or of any line of credit granted to a student, prior to such sixtieth day. 
An application for a certificate of insurance or of comprehensive insur-
ance coverage pursuant to section 429 of .such Act shall be issued or 
shall be effective on or after such sixtieth day with respect to loans 
made prior to such sixtieth day without regard to such amendments. 
Ante, p. 634. 
Ante, 
p. 637. 
EXTENSION OF FEDERAL LOAN INSURANCE PROGRAM AND OF AUTHORITY 
TO GUARANTEE 
OUTSTANDING NON-FEDERALLY INSURED 
LOANS 
SEC. 112. (a) Subsection (a) of section 424 of the Higher Educa-
tion Act of 1965 is amended (1) in the first sentence by striking out 
"period thereafter ending October 31, 1968" and inserting in lieu 
thereof "fiscal year ending June 30, 1968, and each of the three suc-
ceeding fiscal years"; and (2) in the second sentence by striking out 
"October 31, 1968" and inserting in lieu thereof "June 30, 1975". 
(b) Section 428(c)(5) of such Act is amended by striking out 
"October 31,1968" and inserting in lieu thereof "September 1,1969". 
20 u s e 1071-
1086. 
REPAYMENT BY COMMISSIONER OF LOANS OF DECEASED OR DISABLED 
BORROWERS 
S E C 113. (a) Part B of title IV of such Act is amended by insert-
ing at the end thereof the following new section: 
20 u s e 1078. 
"REPAYMENT BY COMMISSIONER OF LOANS OF DECEASED OR DISABLED 
BORROWERS 
" S E C 437. If a student borrower who has received a loan with re-
spect to which a portion of the interest (1) is payable by the Com-
missioner under section 428(a), or (2) would be payable but for the 
adjusted family income of the borrower, dies or becomes permanently 
and totally disabled (as determined in accordance with regulations 
of the Commissioner), then the Commissioner shall discharge the bor-
rower's liability on the loan by repaying the amount owed on the 
loan." 
Ante, p. i536. 
20 u s e 1080. 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1021 
(b) (1) Section 421(b) (2) of the Higher Education Act of 1965 is 
79 stat. 1236. 
amended by inserting after "on student loans" the following: "and 20 use 1071. 
for payments under section 437". 
^"^^' ^- ^°2°' 
(2) Section 427(a)(2)(E) of such Act is amended by inserting 
20 use 1077. 
after the comma at the end thereof the following: "and that the 
lender will enter into such agreements with the Commissioner as may 
be necessary for the purpose of section 437,". 
(3) Section 428(b) (2) (B) of such Act is amended by inserting 
20 use io78. 
after "of this part" the following: ", including such provisions as 
may be necessary for the purpose of section 437,". 
(4) Section 428(c) of such Act is amended by striking out in para-
graph (1) ", death, or permanent and total disability", by striking the 
last sentence of paragraph (3), and by amending paragraph (4) to 
read as follows: 
"(4) For purposes of this subsection, the terms 'insurance benefici-
ary' and 'default' shall have the meanings assigned to them by section 
430(e)." 
(5) Section 430 of such Act is amended— 
(A) by striking out in the section heading, "DEATH, OR DIS-
ABILITY" ; 
(B) by striking out in the first sentence of subsection (a) "or 
upon the death of the student borrower or a finding by the insur-
ance beneficiary that the borrower has become totally and perma-
nently disabled (as determined in accordance with regulations 
established by the Commissioner) before the loan has been repaid 
in full,"; and 
(C) by striking out in subsection (c) all that follows "payment 
on that insurance^' and inserting in lieu thereof a period. 
(c) The amendments made by this section shall apply only with 
Effective date. 
respect to loans made on or after the sixtieth day following the date of 
enactment of this Act. 
FEDERAL ADVANCES TO RESERVE FUNDS OF NON-FEDERAL STUDENT LOAN 
INSURANCE PROGRAMS 
SEC. 114. (a)(1) Section 421(b) of the Higher Education Act of 
1965 is amended by striking out "and" at the end of paragraph (2); 
by striking out the period at the end of the first sentence of that sub-
section and inserting in lieu thereof ", and"; and by adding thereafter 
the following new paragraph: 
"(4) there is authorized to be appropriated the sum of 
$12,500,000 for making advances after June 30, 1968, pursuant 
to section 422 for the reserve funds of State and nonprofit private 
20 use 1072. 
student loan insurance programs." 
(2) The second sentence of section 421 (b) of such Act is amended by 
striking out "under clauses (1) and (2)" and inserting in lieu thereof 
"underclauses (1), (2),and (4)". 
(b) Section 422(a) of such Act is amended— 
(1) by striking out "clause (3)" in the first sentence of para-
graph (1) and inserting in lieu thereof "clauses (3) and (4)', and 
by striking out "of the fiscal years ending June 30,1966, June 30, 
1967, or June 30,1968," and inserting in lieu thereof "fiscal year'' 
in the second sentence of such paragraph; and 
(2) by redesignating paragraph (2) as paragraph (3) and 
inserting after paragraph (1) the following new paragraph: 
" (2) No advance shall be made after June 30,1968, unless matehed 
by an equal amount from non-Federal sources. Such equal amount may 
include the unencumbered non-Federal portion of a reserve fund. As 
used in the preceding sentence, the term 'unencumbered non-Federal no'n^p'e^de'VaT''o'r^'^ 
portion' means the amount (determined as of the time immediately pre- aon."* 
1022 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
79 Stat. 1237. 
20 u s e 1072. 
Ante, 
p. 1021. 
ceding the making of tlie advance) of the reserve fund less the greater 
of (A) the sum of (i) advances made under this section prior to July 1, 
1968, (ii) an amount equal to twice the amount of advances made under 
this section after June 80,1968, and before the advance for purposes of 
which the determination is made, and (iii) the proceeds of earnings on 
advances made under this section, or (B) any amount which is required 
to be maintained in such fund pursuant to State law or regulation, or 
by agreement with lenders, as a, reserve against the insurance of out-
standing loans." 
(c) Section 422(b) of such Act is amended by inserting " ( 1 ) " after 
" (b)", by inserting "prior to July 1, 1968" before "pursuant to sub-
section (a)" where it appears in the first and third sentences, by delet-
ing the last sentence of such subsection, and by adding at the end of 
such subsection the following new paragraphs: 
"(2) Tlie total of the advances from the sums appropriated pur-
suant to clause (4) of section 421(b) (A) to nonprofit private institu-
tions and organizations for the benefit of students in any State and 
(B) to such State may not exceed an amount which bears the same 
ratio to such sums as the population of such State aged eighteen to 
twenty-two, inclusive, bears to the population of all the States aged 
eighteen to twenty-two, inclusive, but such advances may otherwise 
be in such amounts as the Commissioner determines will best achieve 
the purposes for which they are made. The amount available, however, 
for advances to any State shall not be less than $25,000, and any add-
tional funds needed to meet this requirement shall be derived by pro-
portionately reducing (but not below $25,000) the amount available 
for advances to each of the remaining States. 
" (3) For the purposes of this subsection, the population aged eight-
een to twenty-two, inclusive, of each State and of all the States shall 
be determined by the Commissioner on the basis of the most recent 
satisfactory data available to him." 
Antej p. 635-
Intra. 
Ante, 
p. 636. 
20 u s e 1077. 
AMENDMENTS RELATING TO ADMINISTRATIVE COST ALLOWANCE 
AND INTEREST RATE PROVISIONS 
SEC. 115. (a)(1) Section 428(a)(2)(B) of the Higher Education 
Act of 1965 is amended to read as follows: 
"(B) If (i) a State student loan insurance program is covered by an 
agreement under subsection (b), (ii) a statute of such State limits 
the interest rate on loans insured by such program to a rate which is 
less than 7 per centum per annum on the unpaid principal balance, and 
(iii) the Commissioner determines that section 428(d) does not make 
such statutory limitation inapplicable and that such statutory limita-
tion threatens to impede the carrying out of the purposes of this part, 
then he may pay an administrative cost allowance to the holder of each 
loan which is insured under such program and which is made during 
the period beginning on the sixtieth day after the date of enactment of 
the Higher Education Amendments of 1968 and ending 120 days after 
the adjournment of such State's first regular legislative session which 
adjourns after January 1, 1969. Such administrative cost allowance 
shall be paid over the term of the loan in an amount per annum (deter-
mined by the Commissioner) which shall not exceed 1 per centum of the 
unpaid principal balance of the loan." 
(2) Section 428(a) (2) (A) of such Act is amended by striking out 
the second sentence and by inserting in the last sentence after "portion 
of the interest" the following: "and administrative cost allowance". 
(3) Section 428 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(d) No provision of any law of the United States (other than 
sections 427(a) (2) (D) and 427(b) of this Act) or of any State (other 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1023 
than a statute applicable principally to such State's student loan in-
surance program) which limits the rate or amount of interest pay-
able on loans shall apply to a loan— 
"(1) which bears interest (exclusive of any premium for insur-
ance) on the unpaid principal balance at a rate not in excess of 7 
per centum per annum, and 
" (2) which is insured (A) by the United States under this part, 
or (B) by a State or nonprofit private institution or organization 
under a program covered by an agreement made pursuant to sub-
section (b) of this section." 
(4) The amendments made by this subsection shall not apply with 
Effective date. 
respect to loans made prior to the sixtieth day after the date of enact-
ment of this Act. 
(b) Section 428(a) (2) (B) of such Act (as in effect prior to the ^Q^^'^' PP- " S , 
a,mendment made by subsection (a)) is amended by striking out "Octo-
ber 31,1968" and inserting in lieu thereof "the fifty-ninth day after the 
date of enactment of the Higher Education Amendments of 1968". 
(c) The amendments made by section 2(a) of Public Law 90-460, ^"'^' P- ^^S-
approved August 3,1968, shall not be effective with respedt to (1) any 
loan made or contracted for prior to the date of enactment of such Pub-
lic Law, or (2) any loan made, after the date of ena(Jtment of this Act, 
in whole or in part to consolidate or convert a loan made or contracted 
for prior to the date of enactment of such Public Law. 
MERGER OF NATIONAL VOCATIONAL STUDENT LOAN INSURANCE ACT OF 
19 65 W I T H STUDENT LOAN INSURANCE PROGRAM OF HIGHER EDUCATION 
ACT OF 
1 9 6 5 
SEC. 116. (a) Section 435 of the Higher Education Act of 1965 is 79 stat. 1247. 
amended-. 
^ 
^° "^^ ''''• 
(1) by redesignating subsections (a), (b), (c), (d), (e), and (f) 
as (b), (d), (e), (f), (g),and (h), respectively; 
(2) by inserting before subsection (b) as so redesignated the 
foUoAving new subsection: 
"(a) The term 'eligible institution' means (1) an institution of 
"Eligible insti-
higher education, (2) a vocational school, or (3) with respect to stu-'"''°"' 
dents who are nationals of the United States, an institution outside the 
States which is comparable to an institution of higher education or to a 
vocational school and which has been approved by the Commissioner 
for purposes of this part."; 
(3) by striking out in subsection (b) (as so redesignated) 
"institution o
f 
"eligible institution" and inserting in lieu thereof "institution of ^^ig^er,education." 
higher education", by striking out in the second sentence of such 
subsection "any institution outside the States which is compa-
rable to an institution described in the preceding sentence and 
which has been approved by the Commissioner for the purposes 
of this title, and also includes"; and 
(4) by inserting after subsection (b) (as so redesignated) the ,^^^0°^"'°"^^ 
text of subsection (a) of section 17 of the National Vocational 
Student Loan Insurance Act of 1965 amended as follows: 
^9 stat. io48. 
(A) Strike out " ( a ) " and insert in lieu thereof "(c)", 
'° 
'"'" 
(B) Strike out "eligible institution" and insert in lieu 
thereof "vocational school", and 
(C) Strike out "Act" in clause (4) (C) and insert in lieu 
thereof "part". 
(b) (1) Section 425(a) of such Act is amended by striking out "(1)" 
^9 sta^ uas. 
after "SEC. 425. (a)" and by striking out paragraph (2). 
^ 
^ ' ^' 
(2) Section 427(a) (2) (C) (i) of such Act is amended by striking 
20 use 1077. 
out "institution of higher education or at a comparable institution out-
1024 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
Repeal. 
20 u s e 1078. 
79 Stat. 1247. 
20 use 1084. 
80 Stat. 1244. 
20 u s e 1086. 
Repeal. 
79 Stat. 1037. 
20 use 981 
note. 
20 use 992. 
79 Stat. 1245. 
20 use 1081. 
20 use 1083. 
20 use 1077. 
Appropriation 
authorization. 
Effective date. 
Ante, pp. 634, 
635. 
side the States approved for this purpose by the Commissioner" and 
inserting in lieu thereof "eligible institution"! 
(3) Section 428 (a) (6) of such Act is repealed. 
(4) Section 434 of such Act is amended by striking out "10 per 
centum" and inserting in lieu thereof "15 per centum". 
(5) Section 436(a) of such Act is amended by striking out "title 
and the National Vocational Student Loan Insurance Act of 1965" and 
inserting in lieu thereof "part". 
(c) (1) The National Vocational Student Loan Insurance Act of 
1965 is repealed. 
(2) All assets and liabilities of the vocational student loan insurance 
fund established by section 13 of the National Vocational Student Loan 
Insurance Act of 1965, matured or contingent, shall be transferred to, 
and become assets and liabilities of, the student loan insurance fund 
established by section 431 of the Higher Education Act of 1965. Pay-
ments in connection with defaults of loans made on or after the sixtieth 
day after the date of enactment of this Act and insured by the Com-
missioner (under the authority of subsection (e) (3) or (e) (4) of this 
section) under the National Vocational Student Loan Insurance Act 
of 1965 shall be paid out of the fund established by such section 431. 
(d) Section 433 of the Higher Education Act of 1965 is amended to 
read as follows: 
"DIRECT LOANS 
"SEC. 433. (a) The Commissioner may make a direct loan to any 
student w^ho would be eligible for an insured loan for study at a 
vocational school under this part if (1) in the particular area in which 
the student resides loans which are insurable under this Act are not 
available at the rate of interest prescribed by the Secretary pursuant 
to section 427(a) (2) (D) for such area, or (2) the particular student 
has been unable to obtain an insured loan at a rate of interest which 
does not exceed such rate prescribed by the Secretary. 
"(b) Loans made under this section shall bear interest at the rate 
prescribed by the Secretary under section 427(a) (2) (D) for the area 
where the student resides, and shall be made on such other terms and 
conditions as the Commissioner shall prescribe, which shall conform 
as nearly as practicable to the terms and conditions of loans insured 
under this Act. 
" (c) There is authorized to be appropriated the sum of $1,000,000 
for the fiscal year ending June 30, 1969 and for each of the two suc-
ceeding fiscal years to carry out this section." 
(e) (1) Except as provided in paragraphs (2), (3), and (4) : 
(A) This section 
(and any amendment or repeal made 
thereby) shall apply to loans made on or after the sixtieth day 
after the date of enactment of this Act; and the terminal date 
applicable under the first sentence of section 5(a), under section 
9(a) (2) (B), and under section 9(a) (4) of the National Voca-
tional Student Loan Insurance Act shall, instead of October 31, 
1968, be deemed to be (i) the day immediately preceding such 
sixtieth day, or (ii) with respect to any particular lender or State 
or nonprofit private agency to which paragraph (3) relates, the 
last day of the period required for modification or termination 
of, or refusal to extend, the Commissioner's agreements with such 
agency. 
(B) In computing the maximum amounts which may be bor-
rmved by a student who obtains an insured loan on or after such 
sixtieth day, and the minimum amounts of repayment allowable 
with respect to sums borrowed by such a student, there shall be 
included all loans, whenever made, (i) insured by the Commis-
sioner, or a State, institution, or organization with which the 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1025 
Commissioner has an agreement under section 428 (b) of part B of 
title IV of the Higher Education Act of 1965 or section 9(b) of 
20 use 1078. 
the National Vocational Student Loan Insurance Act of 1965, or 
20 use 988. 
(ii) made by a State under section 428(a) (2) (B) of such part or ^"'^- P- 1022-
section 9(a) (2) (B) of such Act, or by the Commissioner under 
^"'^^ P- ess. 
section 433 of such part. 
^ 
i^"'^' P- 1024.] 
(2) Clause (i) (attendance at eligible institution) and clause (iv) 
(VISTA service) of section 427(a) {%) (C) of the Higher Education 
Act of 1965, shall apply to loans made by the Commissioner and, with 
20 use 1077. 
the consent of the lender, loans insured by the Commissioner, to stu-
dents for study at vocational schools, which are outstanding on the 
sixtieth day after the enactment of this Act, but only with respect to 
periods of service or attendance occurring on or after such sixtieth 
day. 
(3) This section (and any amendment or repeal made thereby) shall 
not apply so as to require violation of any commitment for insurance 
made to an eligible lender, or of any line of credit granted to a student, 
prior to the sixtieth day after enactment of this Act, under the Higher 
Education Act of 1965 or the National Vocational Student Loan In- J^^^^^ ^°'°^ 
surance Act of 1965, or, except with the consent of the State or non- ''°2o use 981 
profit private agency concerned, impair the obligation of anjr agree- n°t«-
ment made pursuant to section 428(b) of the Higher Education Act 
of 1965 or .section 9(b) of the National Vocational Student Loan In-
surance Act of 1965. The Commissioner of Education shall under-
take to obtain necessary modifications of agreements entered into by 
him pursuant to section 428 (b) of the Higher Education Act of 1965 or 
section 9(b) of the National Vocational Student Loan Insurance Act of 
1965 and in force upon the date of enactment of this Act so as to 
conform the provisions of .such agreements to the requirements of such 
section 428(b). If, however, such modifications cannot be obtained 
because a party to such an agreement is subject to a statute of a State 
that prevents such party from complying with the terms of such modi-
fication, the Commissioner shall not, before 120 da}^.s after the adjourn-
ment of such State's first regular legislative session which adjourns 
after January 1,1969, exercise his authority to terminate, or to refuse 
to extend, such agreement. 
(4) A certificate of insurance or of comprehensive insurance cover-
age pursuant to section 11 of the National Vocational Student Loan 
Insurance Act of 1965 may be issued or made effective on or after the 
20 use 990. 
sixtieth day after the date of enactment of this Act with respect to 
loans made prior to such sixtieth day without regard to any amend-
ment or repeal made by this section. 
AUTHORIZING DEFERMENT OF REPAYMENT OF NON-FEDERALLY INSURED 
LOANS DURING MILITARY, VISTA, OR PEACE CORPS SERVICE, OR ATTEND-
ANCE AT ELIGIBLE I N S T I T U T I O N ; FEDERAL PAYMENT OF INTEREST AC-
CRUING DURING SUCH ATTENDANCE OR SERVICE 
SEC. 117. (a) (1) Section 428 of the Higher Education Act of 1965 (as 
amended by this Act) is amended by adding at the end of such section ^"f^, p. 1022. 
the following new subsection: 
"(e) The Commissioner shall encourage the inclusion, in any State 
student loan program or any State or nonprofit private student loan 
insurance program meeting the requirements of subsection (a) (1) (B) 
or (a) (1) (C), of provisions authorizing or requiring that in the case 
of student loans covered by such program periodic installments of 
principal need not be paid, but interest shall accrue and be paid, dur-
ing any period (1) during which the borrower is pursuing a full-time 
course of study at an eligible institution, (2) not in excess of three 
years during which the borrower is a member of the Armed Forces of 
1026 
PUBLIC LAW 90- 575-OCT. 16, 1968 
[82 
STAT. 
75 Stat. 612. 
22 u s e 2501 
note. 
81 Stat. 722. 
42 u s e 2991-
2994d. 
20 u s e 1078. 
20 u s e 1077. 
Effective date. 
the United States, (3) not in excess of three years during which the 
borrower is in service as a volunteer under the Peace Corps Act, or (4) 
not in excess of three years during which the borrower is in service as 
a full-time volunteer under title VIII of the Economic Opportunity 
Act of 1964. In the case of any such State or nonprofit private program 
containing such a provision any such period shall be excluded in de-
termining the period specified in subsection (b) (1) (C) (ii), or the 
maximum period for repayment specified in subsection (b) (1) (D)." 
(2) (A) Section 428(b) (1) (C) (ii) of the Higher Education Act of 
1965 is amended by inserting after "(ii)" the following: "except as 
provided in subsection (e) of this section,". 
(B) Section 428(b)(1)(D) of such Act is amended by inserting 
after "subject to subparagraph (C)" the following: "of this paragraph 
and except as provided by subsection (e) of this section". 
(b) The first sentence of section 428(a) (2) of such Act is amended 
by inserting before "; but such portion" the following: ", or which 
accrues during a. period in which principal need not be paid (whether 
or not such principal is in fact paid) by reason of a provision described 
in subsection (e) of this section or in section 427(a) (2) (C)". 
(c) Section 427(a) (2) (C) (iv) of such Act is amended by inserting 
"full-time" before "volunteer". 
(d) Deferment of repayment of principal, as provided in the amend-
ments made by subsection (a) of this section, may be authorized (but 
not required) with respect to loans meeting the requirements of sub-
paragraph (B) or (C) of section 428(a) (1) of the Higher Education 
Act of 1965 which are outstanding on the sixtieth day after the date 
of enactment of this Act, but only with respect to periods of attendance 
or service occurring on or after such sixtieth day. The amendments 
made by subsection (b) shall become effective on the sixtieth day after 
the date of enactment of this Act. 
20 u s e 1085. 
12 u s e 1464. 
PARTICIPATION BY PENSION FUNDS AND FEDER^VL SAVINGS AND LOAN 
ASSOCIATIONS 
SEC. 118. (a) Section 4'35(g) of the Higher Education Act of 1965 
(as so redesignated by section 116 of this Act) is amended by inserting 
before the period at the end thereof the following: ", or a pension fund 
approved by the Commissioner for this purpose". 
(b) The third paragraph of section 5(c) of the Home Owners' Loan 
Act of 1933 is amended by striking out "expenses of college or uni-
versity education" and inserting in lieu thereof "expenses of college, 
university, or vocational education". 
20 
use 
1073. 
20 use 
1079. 
20 
use 
1072. 
ACCESS TO FEDERAL LOAN INSURANCE PROGILVM 
SEO. 119. (a) Section 423 of the Higher Education Act of 1965 is 
amended by striking out "The" after "SEC. 423." and inserting in lieu 
thereof "(a) Except as provided in subsection (b), the"; and by add-
ing at the end thereof the following new subsection: 
"(b) The Commissioner may issue certificates of insurance under 
section 429 to a lender in a State— 
"(1) for insurance of a loan made to a student borrower who 
does not, by reason of his residence, have access to loan insurance 
under the loan insurance program of such State (or under any 
private nonprofit loan insurance program which has received an 
advance under section 422 for the benefit of students in such 
State), or 
" (2) for insurance of all of the loans made to student borrowers 
by a lender who satisfies the Commissioner that, by reason of the 
residence of such borrowers, he will not have access to any single 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1027 
State or nonprofit private loan insurance program which will 
insure substantially all of the loans he intends to make to such 
student borrowers.' 
(b) Section 421(a) (2) is amended by inserting "or lenders" before 
'who do not have reasonable access". 
20 use 1071. 
COORDINATION BETWEEN NON-FEDERAL AND FEDERAL PROGRAMS WITH 
RESPECT TO MAXIMUM AMOUNTS OF INDIVIDUAL LOANS INSURED, ISSU-
ANCE OF INSTALLMENT OBLIGATIONS, AND MINIMUM AMOUNTS OF REPAY-
MENT INSTALLMENTS ON SUCH LOANS 
SEC. 120. (a) (1) Section 428(b) (1) (A) of the Higher Education 
Act of 1965 is amended by inserting the following before the semicolon 
at the end of such subparagraph: ", which limit shall not be deemed 
exceeded by a line of credit under which actual payments by the 
lender to tlie borrower will not be made in any such year in excess of 
such annual limit; and provides that the aggregate insured unpaid 
principal amount of all such insured loans made to any student shall 
not at any time exceed $7,500". 
(2) Section 425(a) of the Higher Education Act of 1965 is amended 
(A) by striking out "in the case of a graduate or professional student 
(as defined in regulations of the Commissioner), or $1,000 in the case 
of any other student" in the first sentence, and (B) by striking out "in 
the case of any graduate or professional student (as defined in regula-
tions of the Commissioner, and including any such insured loans made 
to such person before he became a graduate or professional student), 
or $5,000 in the case of any other student" in the second sentence. 
(b) Section 428(b) (1) (D) of such Act is amended (1) by striking 
out "subparagraph (C)" and inserting in lieu thereof "subparagraphs 
(C) and (K)", and (2) by striking out", where the total of the insured 
loans to any student which are held by any one person exceeds $2,000, 
repayment of such", and inserting in lieu thereof "repayment of". 
(c) (1) Section 428(b) (1) of the Higher Education Act of 1965 is 
amended (A) by striking out "and" at the end of subparagraph (I), 
(B) by striking out the period at the end of subparagraph (J) and 
inserting "; and" in lieu thereof, and (C) by adding after subpara-
graph (J) the following: 
"(K) provides that the total of the payments by a borrower 
during any year of any repayment period with respect to the aggre-
gate amount of all loans to that borrower which are (i) insured 
under this part, or (ii) made by a State or the Commissioner under 
section 428(a) (1) (B) or 433, respectively, shall not be less than 
$360 or the balance of all such loans (together with interest 
thereon), whichever amount is less." 
(2) Section 427(c) of such Act is amended by striking out "by the 
Commissioner", and by inserting the following after "this part": ", or 
which are made by a State or the Commissioner under section 428(a) 
(1) (B) or 433, respectively,". 
(3) The caption of section 427 of such Act is amended by inserting 
"FEDERALLY INSURED" before "STUDENT LOANS". 
(d) (1) Subject to paragraph (2) of this subsection, (A) the amend-
ments made by this section shall apply to loans made on or after the 
sixtieth day after the date of enactment of this Act, and (B) in com-
puting the maximum amounts which may be borrowed by a student 
who obtains an insured loan on or after such sixtieth day, and the mini-
mum amounts of repayment allowable with respect to sums borrowed 
by such a student, there shall be included all loans, whenever made, 
(i) insured by the Commissioner, or a State, institution, or organiza-
tion with which the Commissioner has an agreement under section 
428(b) of part B of title IV of the Higher Education Act of 1965 or 
20 use 1078. 
Limitation. 
20 use 1075. 
Ante, p. 1024. 
20 use 1077. 
Effective date. 
1028 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
section 9(b) of the National Vocational Student Loan Insurance Act 
2o^usc 988. 
of 1965, or (ii) made by a State under section 428(a) (2) (B) of such 
Mxt'e, p! eal.^' 
P^'^^' o^ section 9(a) (2) (B) of such Act, or by the Commissioner under 
Ante,^, 1024. 
sectiou 433 of such part. 
(2) This section (and the amendments made thereby) shall not 
apply so as to require violation of any commitment for insurance made 
to an eligible lender, or of any line of credit granted to a student, prior 
to such sixtieth day or, except with the consent of the State or non-
profit private agency concerned, impair the obligation of any agree-
ment made pu^^suant to section 428(b) of the Higher Education Act of 
1965. The Commissioner of Education shall undertake to obtain neces-
sary modifications of agreements entered into by him pursuant to sec-
tion 428(b) (1) of the Higher PMucation Act of 1965 and in force upon 
the date of enactment of this Act so as to conform the provisions of 
such agreements to the requirements of such section 428(b)(1) as 
amended by this section. If, however, such modifications cannot be ob-
tained because a party to such an agreement is subject to a statute of a 
State that prevents such party from complying with the terms of such 
modification, the Commissioner shall not, before 120 days after the 
adjournment of such State's first regular legislative session which ad-
journs after January 1,1969, exercise his authority to terminate, or to 
refuse to extend, such agreement. 
PART C—AMENDMENTS TO COLLEGE WORK-STUDY PROGRAM 
TOANSFER 
OR WORK-STUDY, PROVISIONS TO HIGHER EDUCATION ACT OF 1 9 0 5 
SEC. 131. (a) Title IV of the Higher Education Act of 1965 is 
79 Stat. 1249. 
amended by striking out part C thereof. Part C of title I of the Eco-
2757. 
]K)mic Opportunity Act of 1964 is transferred to the Higher Education 
78 Stat. 513; 
Act of 1965 and inserted as part C of title IV of such Act. 
'*^!'usc¥75i- 
(b) Part C of title IV of the Higher Education Act of 1965 (as 
2755. 
amended by subsection (a) of this section) is further amended— 
(1) by redesignating sections 141 through 145 (and references 
thereto) as sections 441 through 445, respectively; and 
(2) by designating the section of such part which follows sec-
42 use 2756. 
tlou 445 (as so redesignated) as section 446; and 
(3) by amending section 442(a) to read as follows: 
"SEC. 442. (a) From the sums appropriated to carry out this part 
for a fiscal year, the Commissioner shall allot not to exceed 2 per 
centum among Puerto Rico, Guam, American Samoa, the Trust Terri-
tory of the Pacific Islands, and the Virgin Islands according to their 
respective needs for assistance under this part. The remainder of such 
sums shall be allotted among the States as provided in subsection (b)." 
(c) Any reference to any provision of part C of title I of the Eco-
nomic Opportunity Act of 1964 in any law of the United States shall 
be deemed to be a reference to the corresponding provision of part 
C of title IV of the Higher Education Act of 1965 as amended by 
this section. 
EXTENSION OF WORK-STUDY PROGRAM 
SEC. 132. Section 441 of the Higher Education Act of 1965 (as 
amended by section 131 of this Act) is amended by adding "; APPRO-
PRIATIONS AUTHORIZED" at the end of the section heading, by inserting 
" ( a ) " after "SEC. 441.", and by adding at the end of such section the 
following new subsection: 
auth^Azauon"'' 
" (^) There are authorized to be appropriated $225,000,000 for the 
fiscal year ending June 30,1969, $255,000,000 for the fiscal year ending 
June 30, 1970, and $285,000,000 for the fiscal year ending June 30, 
1971, to carry out this part." 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1029 
ELIGIBIUTY OF AREA VOCATIONAL SCHOOLS 
SEC. 133. (a) Part C of the Higher Education Act of 1965 (as 
amended by section 131 of this Act) is amended by striking out the 
•terms "institution of higher education" and "institutions of higher 
education" wherever they appear (except in section 442(b)(1)) and 
inserting in lieu thereof "eligible institution" and "eligible institu-
tions", respectively. 
(b) Section 443 (b) of such Act (as added by section 131 of this Act) 
is amended to read as follows: 
"(b) For the purposes of this part the term 'eligible institution'^^JJ^Ugibie insti-
means an institution of higher education (as defined in section 435(b) 
of this Act), or an area vocational school (as defined in section 8 (2) of ^"'^' P ^°23. 
the Vocational Education Act of 1963)." 
20 use asg. 
(c) Section 444 of such Act (as added by section 131 of this Act) is 
amended by inserting " ( a ) " after "SEC. 444."; by redesignating pa.ra-
graphs (a) through (h) as paragraphs (1) through (8), respectively; 
by redesignating subparagraphs (1), (2), and (3) of paragraphs (1) 
and (3) (as so redesignated) as subparagraphs (A), (B), and (C), 
respectively; and by adding at the end of such section the following 
new subsection: 
"(b) An agreement entered into pursuant to section 443 with an area 
vocational school shall contain, in addition to the provisions described 
in subsection (a) of this section, a provision that a student in such a 
school shall be eligible to participate in a program under this part only 
if he (1) has a certificate of graduation from a school providing sec-
ondary education or the recognized e(][uivalent of such a certificate, and 
(2) is pursuing a program of education or training which requires at 
least six months to complete and is designed to prepare the student for 
gainful employment in a recognized occupation." 
REVISION OF MATCHING PROVISIONS 
SEC. 134. Section 444(a) (6) of the Higher Education Act of 1965 
(as amended by this part) is amended to read as follows: 
"(6) provide that the Federal share of the compensation of 
students employed in the work-study program in accordance with 
the agreement will not exceed 80 per centum of such compensation; 
except that the Federal share may exceed 80 per centum of such 
compensation if the Commissioner determines, pursuant to regu-
lations adopted and promulgated by him establishing objective 
criteria for such determinations, that a Federal share in excess 
of 80 per centum is required in furtherance of the purposes of 
this part;" 
SET-ASIDE FOR RESIDENTS OF AMERICAN SAMOA OR THE TRUST 
TERRITORY OF THE PACIFIC 
ISLANDS 
SEC. 135. (a) The first sentence of section 442 (a) of the Higher Edu-
cation Act of 1965 (as amended by this part) is amended by inserting ^"*®' P- 1028. 
"(1)" before J'allot not to exceed 2 per centum", and by inserting 
before the period at the end thereof the following: ", and (2) reserve 
the amount provided by subsection (e)". 
(b) Such section 442 is further amended by adding at the end 
thereof the following new subsection: 
"(e) From the appropriation for this part for each fiscal year the 
Commissioner shall reserve an amount to provide work-study assist-
ance to students who reside in, but who attend eligible institutions 
outside of, American Samoa or the Trust Territory of the Pacific 
1030 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
Islands. The amount so reserved shall be allotted to eligible institu-
tions and shall be available only for the purpose of providing work-
study assistance to such students." 
ELIMINATION OF AVERAGE HOURS OF EMPLOYMENT LIMITATION 
DURING 
NON-REGULAR ENROLLMENT PERIODS 
Atrte. p. 1029. 
gj^, 136, Sectlou 444 of the Higher Education Act of 1965 (as 
amended by this part^ is amended by adding at the end thereof the 
following new subsection: 
"(c) For purposes of paragraph (4) of subsection (a) of this sec-
tion, in computing average hours of employment of a student over 
a semester or other term, there shall be excluded any period during 
which the student is on vacation and any period of non-regular enroll-
ment. Employment under a work-study program during any such 
period of non-regular enrollment during which classes in which the 
student is enrolled are in session shall be only to the extent and in 
accordance with criteria established by or pursuant to regulations of 
the Commissioner." 
REVISION OF MAINTENANCE OF EFFORT REQUIREMENT 
SEC. 137. Effective for fiscal years ending on or after June 30,1970, 
section 444(a) (5) of the Higher Education Act of 1965 (as amended 
by this part) is amended to read as follows: 
" (5) provide that the institution will meet the requirements of 
Post, p. 1033. 
section 464 of this Act (relating to maintenance of effort);" 
ADMINISTRATIVE 
EXPENSES 
SEC. 138. Effective for jfiscal years ending on or after June 30,1970, 
section 444(a) (2) of the Higher Education Act of 1965 (as amended 
b j this part) is amended by striking out all that follows "administra-
tive expenses" and inserting in lieu thereof "in accordance with section 
463 of this Act;". 
ELIGIBILITY OF PROPRIETARY INSTITUTIONS OF HIGHER 
EDUCATION 
SEC. 139. Effective for fiscal years ending on or after June 30,1970— 
(1) Section 443(b) of the Higher Education Act of 1965 (as 
Ante, p. 1029. 
amended hy this part) is amended by striking out "or" before "an 
area vocational school", and by inserting before the period at the 
end thereof the following: ", or a proprietary institution of higher 
Post, p. 1032. 
education (as defined in section 461 (b) of this Act)". 
(2) Section 444(a) (1) of such Act (as amended by this part) 
is amended by inserting after "work for the institution itself" 
the following: "(except m the case of a proprietary institution of 
higher education),". 
PART D—COOPERATIVE EDUCATION PROGRAMS 
GRANTS TO INSTITUTIONS OR HIGHER EDUCATION FOR PROGRAMS OF 
COOPERATIVE EDUCATION; GRANTS AND CONTRACTS FOR TRAINING AND 
RESEARCH IN COOPERATIVE EDUCATION 
SEC. 141. Title IV of the Higher Education Act of 1966 is amended 
by redesignating part D as part F, by redesignating sections 461 
79 Stat. 1251- 
through 467 as sections 491 through 497, respectively, and by in-
425? 4
4
^
1
^ 443',591! serting after part C the following new part: 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1031 
"PART D—COOPERATIVE EDUCATION PROGRAMS 
'APPROPRIATIONS AUTHORIZED 
u, 
"SEC. 451. (a) Tliere are authorized to be appropriated $340,000 for 
the fiscal year ending June 30, 1969, $8,000,000 for the fiscal year 
ending June 30, 1970, and $10,000,000 for the fiscal year ending June 
30, 1971, to enable the Commissioner to make grants pursuant to 
section 452 to institutions of higher education for the planning, estab-
lishment, expansion, or carrying out by such institutions of programs 
of cooperative education that alternate periods of full-time academic 
study with periods of full-time public or private employment that will 
not only afford students the opportunity to earn through employ-
ment funds required toward continuing and completing their educa-
tion but will, so far as practicable, give them work experience related 
to their academic or occupational objective. Such amount for the fiscal 
year ending June 30,1969, shall also be available for planning and re-
lated activities for the purpose of this title. 
"(b) There are further authorized to be appropriated $750,000 for 
the fiscal year ending June 30, 1969, and for each of the two succeed-
ing fiscal years, to enable the Commissioner to make training or re-
search grants or contracts pursuant to section 453. 
"(c) Appropriations under this part shall not be available for the 
payment of compensation of students for employment by employers 
under arrangements pursuant to this part. 
"GRANTS FOR PROGRAMS OP COOPERATIVE EDUCATION 
"SEC. 452. (a) From the sums appropriated pursuant to subsection 
(a) of section 451, and for the purpvoses set forth therein, the Com-
missioner is authorized to make ^ a n t s to institutions of higher educa-
tion that have applied therefor m accordance with subsection (b) of 
this section, in amounts not in excess of $75,000 to any one such institu-
tion for any fiscal year. 
"(b) Each application for a grant authorized by subsection (a) of 
this section shall be filed with the Commissioner at such time or times 
as he may prescribe and shall— 
"(1) set forth programs or activities for which a grant is au-
thorized under this section; 
"(2) provide that the applicant will expend during such fiscal 
year for the purpose of such program or activity not less than 
was expended for such purpose during the previous fiscal year; 
"(3) provide for the making of such reports, in such form and 
containing such information, as the Commissioner may reasonably 
require to carry out his functions under this part, and for the keep- Recordkeeping. 
ing of such records and for affording such access thereto as the 
Commissioner may find necessary to assure the correctness and 
verification of such reports; 
" (4) provide for such fiscal control and fund accounting proce-
dures as may be necessary to assure proper disbursement of, and 
accounting for, Federal funds paid to the applicant under this 
part; and 
"(5) include such other information as the Commissioner may 
determine necessary to carry out the purposes of this part. 
"(c) No institution of higher education may receive grants under 
this section for more than three fiscal years. 
"(d) In the development of criteria for approval of applications 
under this section, the Commissioner shall consult with the Advisory 
Council on Financial Aid to Students. 
89 - 69 - O 009-96
1032 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
II, 
GRANTS AND CONTRACTS FOR TRAINING AND RESEARCH 
"SEC. 453. From the sums appropriated pursuant to subsection (b) 
of section 451, the Commissioner is authorized, for the, training of 
persons in the planning, establishments, administration, or coordina-
tion of programs of cooperative education, or for research into methods 
of improving, developing, or promoting the use of cooperative educa-
tion programs in institutions of higher education, to— 
"(1) make grants to or contracts with institutions of higher 
education, or combinations of such institutions, and 
"(2) make grants to other public or private nonprofit agencies 
or organizations, or contracts with public or private agencies or 
organizations, when such grants or contracts will make an es-
pecially significant contribution to attaining the objectives of this 
section." 
PART E—GENERAL PROVISIONS EELATTNG TO STUDENT ASSISTANCE 
AMENDMENTS EFFECTIVE UPON ENACTMENT 
Ante, p. 1030. 
gjjc. 151. Title IV of the Higher Education Act of 1965 is amended 
by inserting after part D the following new part: 
"PART E—GENERAL PROVISIONS EELATING TO STUDENT ASSISTANCE 
PROGRAMS 
"SUBPART 1—GENERAL PROVISIONS 
"DEFINITIONS 
"SEC. 461. (a) For purposes of this title, the term 'State' includes 
the Trust Territory of the Pacific Islands. 
" (b) For purposes of part C of this title and title I I of the National 
'^o'usc 2
*
1
^
-
4
2
9 I-^^^'^s® Education Act of 1958, the term 'proprietary institution of 
higher education' means a school (1) which provides not less than a 
six-month program of training to prepare students for gainful employ-
ment in a recognized occupation, (2) which meets the requirements of 
section 801 (a) (1) and 801 (a) (2) of this Act, (3) which does not meet 
20 use 1141. 
^jjg requirement of section 801 (a) (4) of this Act, (4) which is accred-
ited by a nationally recognized accrediting agency or association 
approved by the Commissioner for this purpose, and (5) which has 
been in existence for at least two years. For purposes of this paragraph, 
the Commissioner shall publish a list of nationally recognized accred-
iting agencies or associations which he determines to be reliable author-
ity as to the quality of training offered. 
(( 
ELIGIBILITY OF RESIDENTS OF TRUST TERRITORY OF PACIFIC ISLANDS 
"SEC. 462. Permanent residents of the Trust Territory of the Pacific 
Islands shall be eligible for assistance under title I I of the National 
Defense Education Act of 1958 and under this title to the same extent 
that citizens of the United States are eligible for such assistance. 
"SUBPART 2—ADVISORY COUNCIL ON FINANCIAL AID TO STUDENTS 
"ESTABLISHMENT OF COUNCIL 
"SEC. 469. (a) There is established in the Office of Education an 
Advisory Council on Financial Aid to Students (hereafter in this sec-
tion referred to as the 'Council'), consisting of the Commissioner, who 
shall be Chairman, and of members appointed by the Commissioner 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1033 
without regard to the civil service or classification laws. Such appointed 
members shall include (1) leading authorities in the field of education, 
(2) persons representing State and private nonprofit loan insurance 
programs, financial and credit institutions, and institutions of higher 
education and other eligible institutions as those terms may be vari-
ously defined in this Act or m the National Defense Education Act of 
1958, and (3) at least one undergraduate student in an institution of no^e."^'^ '^"^ 
higher education or other eligible institution. 
" (b) The Council shall advise the Commissioner on matters of gen-
eral policy arising in the administration by the Commissioner of pro-
grams relating to financial assistance to students and on evaluation of 
the effectiveness of these programs. 
"(c) Members of the Council who are not in the regular full-time 
compensation, 
employ of the United States shall, while attending meetings or confer- '"^^^^ expenses. 
ences of the Council or otherwise engaged in the business of the Coun-
cil, be entitled to receive compensation at a rate fixed by the Secretary, 
but not exceeding the rate specified at the time of such service for 
grade GS-18 in section 5332 of title 5, United States Code, including J^^^^^ ^332 
traveltime, and while so serving on the business of the Council away 
from their homes or regular places of business they may be allowed 
travel expenses, including per diem in lieu of subsistence, as authorized 
by section 5703 of title 5, United States Code, for persons employed 
intermittently in the Government Service. 
"(d) The Commissioner is authorized to furnish to the Council such 
technical assistance, and to make available to it such secretarial, cleri-
cal, and other assistance and such pertinent data available to him, as 
the Council may require to carry out its functions." 
AMENDMENTS EFFECTIVE FOR FISCAL YEAR 
19 70 AND 
THEREAFTER 
SEC. 152. Effective for fiscal years ending on or after June 30,19Y0, 
part E of title IV of the Higher Education Act of 1965 (as added by 
section 151 of this Act) is amended by inserting after section 462 the 
following new sections: 
80 Stat. 499. 
U EXPENSES OF ADMINISTRATION 
"SEC. 463. (a) An institution which ha.s entered into an agreement 
with the Commissioner under part A or C of this title shall be entitled 
for each fiscal year for which it receives an allotment under either such 
part to a payment in lieu of reimbursement for its expenses during such 
fiscal year m administering programs assisted under such part. The 
payment for a fiscal year (1) shall be payable from each such allot-
ment in accordance with regulations of the Commissioner, and (2) shall 
(except as provided in subsection (b)) be an amount equal to 3 per 
centum of (A) the institution's expenditures during the fi.scal year 
from its allotment under part A plus (B) its expenditures during such 
fiscal year under part C for compensation of students. 
"(b) The aggregate amount paid to an institution for a fiscal year 
under this section plus the amount withdrawn from its student loan 
fund under .section 204(b) of the National Defense Education Act of 
1958 may not exceed $125,000. 
20 u s e 1061; 
Ante, 
p. 1028. 
Limitation. 
Post, 
p. 1034. 
ii MAINTENANCE 
OF 
EFFORT 
"SEC. 464. An agreement between the Commissioner and an institu-
tion under part A or part C shall provide assurance that the institution 
will continue to spend in its own scholarship and student-aid program, 
from sources other than funds received under such parts, not less than 
the average expenditure per year made for that purpose during the 
20 use 426. 
1034 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
most recent period of three fiscal years preceding the ejffective date 
of the agreement." 
PART F—^AMENDMENTS TO NATIONAL DEFENSE STUDENT LOAN PEOGRAM 
(TITLE I I OF NATIONAL DEFENSE EDUCATION ACT OF 
1958) 
EXTENSION OP NATIONAL DEFENSE STUDENT LOAN PROGRAM 
SEC. 171. (a) Section 201 of the National Defense Education Act 
80 Stat- 1245 • 
of 1958 is amended— 
(1) by striking out "and" before "$225,000,000"; 
(2) by insertmg after 
"June 30, 1968," the 
following: 
"$210,000,000 for the fiscal year ending June 30,1969, $275,000,000 
for the fiscal year ending June 30, 1970, and $300,000,000 for the 
fiscal year ending June 30,1971,"; 
(3) by striking out "and such sums for the fiscal year ending 
June 30,1969" and inserting in lieu thereof "and there are further 
authorized to be appropriated such sums for the fiscal year ending 
June 30,1972"; and 
(4) by striking out "July 1,1968" and inserting in lieu thereof 
"July 1,1971". 
20 use 422. 
(]3) Subsection 202 of such Act is amended by striking out "1968" 
in subsections (a) and (b) and inserting in lieu thereof "1971". 
(c) Section 206 of such Act is amended by striking out "1972" each 
time it appears in subsections (a), (b), and (c) of such section, and 
inserting in lieu thereof "1975". 
• DMINISTRATIVE EXPENSES 
SEO. 172. Effective for fiscal years ending on or after June 30,1970— 
20 use 424. 
(1) Section 204 of the National Defense Education Act of 1958 
is amended by inserting " ( a ) " after "SEC. 204.", and by striking 
out in paragraph (3) "(C) routine expenses" and all that follows 
down through "whichever is the lesser" and inserting in lieu 
thereof "(C) administrative expenses as provided in subsection 
(2) Section 204 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(b) An institution of higher education that has entered into an 
agreement with the Commissioner under this section shall be entitled 
for each fiscal year during which it makes any student loans from a 
student loan fund established under this title to a payment in lieu of 
reimbursement for its expenses during such fiscal year in administer-
ing its student loan program assisted under this title. Such payment 
(1) shall be payable from its student loan fund in accordance with reg-
ulations of the Commissioner, and (2) (except as provided in section 
Ante, p. 1033. 
463(b) of the Higher Education Act of 1965) shall be an amount 
equal to 3 per centum of the principal amount of loans made from 
such fund during a fiscal year." 
AMENDMENTS TO TEACHER CANCELLATION PROVISION 
SEC. 173. (a)(1) Section 205 (b) (3) of the National Defense Educa-
20 use 425. 
tion Act of 1958 is amended by inserting after "50 per centum of any 
such loan" the following: "made prior to July 1, 1970". 
(2) Clause (A) of such section is amended by inserting before "the 
Commissioner shall not make such determination" the following: 
" (unless all of the schools so determined are schools in which the en-
rollment of children described in clause (A), (B), or (C) of section 
20 use 241c. 
103(a) (2) of such Public Law (using a low-income factor of $3,000) 
exceeds 50 per centum of the total enrollment of the school)". 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1035 
(b) The amendments made by subsection (a) (2) shall apply with 
Effective date. 
respect to service performed during academic years ending after the 
date of the enactment of this Act, whether the loan was made before or 
after such Act. 
ELIGIBILITY OF PROPRIETARy INSTITUTIONS OF HIGHER EDUCATION 
SEC. 174. (a) Section 103 (b) of the National Defense Education Act 
of 1958 is amended— 
20 use 403. 
(1) by striking out "and also includes," in the second sentence 
and inserting in lieu thereof "; any proprietary institution of 
higher education (as defined in section 461 (b) of the Higher Edu-
cation Act of 1965) which includes in its agreement under section ^"'e- P- 1032. 
204 of such title such terms and conditions as the Commissioner 
'^"'^' P- ^°^'*-
determines to be necessary to insure that the availability of assist-
ance to students at the school under such title has not, and will not, 
increase the tuition, fees, or other charges to such students; and"; 
and 
(2) by inserting after "requirements of clause (5)" in the third 
sentence the following: "(but meets the requirements of clause 
(^))"- 
.
.
. 
(b) Effective with respect to fiscal years ending on or after June 30, 
1969, section 203 of such Act is amended by adding at the end thereof 
20 use 423. 
the following new sentence: "The aggregate amount of Federal capital 
contributions paid for any fiscal year under this section to proprietary 
institutions of higher education (as defined in section 461(b) of the 
Higher Education Act of 1965) may not exceed the amount by which 
the funds appropriated pursuant ix) section 201 for such fiscal year 
^"'^' P ^^^'t. 
exceed $190,000,000." 
ELIMINATION OF REQUIREMENT OF SPECIAL CONSIDERATION F
O
R STUDENTS 
OF SUPERIOR ACADEMIC B
A
C
K
G
R
O
U
N
D 
SEC. 175. Section 204 of the National Defense Education Act of 1958 
20 use 424. 
is amended by inserting "and" at the end of paragraph (3), by striking 
out paragraph (4), and by redesignating paragraph (5) as paragraph 
(4). 
WAIVING OATH OF ALLEGIANCE REQUIREMENT F
O
R RESmENTS OF TRUST 
TERRITORY OF PACIFIC ISLANDS 
SEC. 176. Section 1001 (f) (1) of the National Defense Education Act 
of 1958 is amended by inserting after "any individual" the follow- 
20 use ssi. 
ing: "(other than a permanent resident of the Trust Territory of the 
Pacific Islands)". 
TITLE II—AMENDMENTS TO OTHER PROVISIONS OF 
H I G H E R EDUCATION ACT OF 1965 
PART A—AMENDMENTS TO COMMUNITY SERVICE PROGRAM PROVISIONS 
(TITLE 
I) 
EXTENSION or GRANT PROGRAM 
20 use 1001. 
SEC. 201. (a) The first sentence of section 101 of the Higher Edu-
cation Act of 1965 is amended (1) by striking out "and" after "1966," 
H f^^^^- /2^i9-
and (2) by inserting before the period at the end of such sentence the 
^" "'"^ ""' 
following: ", $10,000,000 for the fiscal year ending June 30, 1969, 
?50,000,000 for the fiscal year ending June 30, 1970, and $60,000,000 
for the fiscal year ending June 30,1971". 
(b) Such section is amended by striking out the second sentence. 
1036 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
MODIFICATION OF REQUIREMENT FOR COMPREHENSIVE, COORDINATED, AND 
STATEWIDE SYSTEM OF COMMUNITY SERVICE PROGRAMS 
20 use 1005. 
S E C 202. Section 105(a) (2) of the Higher Education Act of 1965 
is amended by inserting before the semicolon at the end thereof the 
following: "(except that if a comprehensive, coordinated, and state-
wide system of community service programs cannot be elffectively car-
ried out by reason of insufficient funds, the plan may set forth one 
or more proposals for community service programs in lieu of a compre-
hensive, coordinated, and statewide system of such programs)". 
MODIFICATION OF FEDERAL SHARE PROVISION 
20 use 1006. 
SEC. 203. (a) Section 106(a) of the Higher Education Act of 1965 
is amended by striking out "and 50 per centum of such costs for each 
of the three succeeding fiscal years" and inserting in lieu thereof "50 
per centum of such costs for the fiscal year ending June 30, 1968, and 
66% per centum of such costs for fiscal years ending on or after June 
30, 1969". 
Effective date. 
(b) Tlic amendment made by subsection (a) of this section shall be 
effective with respect to grants awarded after the enactment of this 
Act. 
PART B—AMENDMENTS TO COLLEGE LIBRARY ASSISTANCE AND 
LIBRARY TRAINING AND RESEARCH PROGRAMS (TITLE 
II) 
EXTENSION OF COLLEGE LIBRARY ASSISTANCE PROGRAM 
(PART A) 
20 use 1021. 
SEC. 211. Section 201 of the Higher Education Act of 1965 is amended 
(1) by inserting after "two succeeding fiscal years," the following: 
"$25,000,000 for the fiscal year ending June 30, 1969, $75,000,000 for 
the fiscal year ending June 30,1970, and $90,000,000 for the fiscal year 
ending June 30,1971," and (2) by striking out the second sentence. 
ELIGIBILITY OF BRANCH INSTITUTIONS FOR SUPPLEMENTAL AND 
SPECIAL PURPOSE GRANTS 
20 use 1023. 
SEC. 212. (a) (1) The first sentence of section 203(a) of such Act is 
amended by inserting after "institutions of higher education" the fol-
lowing: "(and to each branch of such institution which is located in a 
community different from that in which its parent institution is located, 
as determined in accordance with regulations of the Commissioner)". 
(2) The second sentence of such section is amended by inserting " (or 
branch)" after "institution". 
20 use 1024. 
(b) Section 204 (a) (2) (A) of such Act is amended by inserting after 
"institutions of higher education" the following: "(or to branches of 
such institutions which are located in a community different from that 
in which the parent institution is located, as determined in accordance 
with regulations of the Commissioner)". 
(c) Section 204(a) (2) (B) of such Act is amended by inserting after 
"institutions of higher education" the following: "(or to such 
branches)". 
REVISION OF MAINTENANCE-OP-EFFORT REQUIREMENT FOR SPEOIAI/ 
PURPOSE GRANTS 
SEC. 213. (a) Section 204 (b) (2) of the Higher Education Act of 1965 
is amended by inserting after "June 30,1965" the following: ", or dur-
ing the two fiscal years preceding the fiscal year for which the grant is 
requested, whichever is less". 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1037 
(b) The aniendment made by subsection (a) shall be effective with 
Effective date. 
respect to applications for grants payable on or after the date of the 
enactment of this Act. 
ELIGIBILITY OF NEW INSTITUTIONS FOR BASIC GRANTS 
SEC. 214. (a) The first sentence of section 202 of the Higher Edii- 
20 use 1022. 
cation Act of 1965 is amended (1) by striking out "and" and inserting 
in lieu thereof a comma, and (2) inserting after "such institutions" 
the following: ", and, in accordance with criteria prescribed by re^Ti-
lation, new institutions of higher education in the fiscal year preceding 
the first year in which students are to be enrolled". 
(b) The amendments made by subsection (a) shall be effective with 
Effective date. 
respect to appropriations for grants under title II of the Higher Edu-
cation Act of 1965 for fiscal years beginning after June 30,1969. 
1
0
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1
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^
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^ ^°^^ 
EXTENSION OF LIBRARY TRAINING AND RESEARCH PROGRAM (PART B) 
SEC. 215. Section 221 of the Higher Education Act of 1965 is 20 use 1031. 
amended (1) by inserting after "two succeeding fiscal years," the 
following: "$11,800,000 for the fiscal year ending June 30, 1969, $28,-
CKX),000 for the fiscal year ending June 30,1970, and $38,000,000 for the 
fiscal year ending June 30, 1971," and (2) by striking out the second 
sentence. 
AMENDMENTS TO LIBRARIANSHIP TRAINING PROVISIONS 
SEC. 216. The second sentence of section 223(a) of the Higher Edu-
cation Act of 1965 is amended— 
20 use 1033. 
(1) by striking out "to assist in covering the cost of courses of 
training or study for such persons, and" and inserting in lieu 
thereof "(1) to assist in covering the cost of courses of training 
or study (including short term or regular session institutes) for 
such persons, (2)"; and 
(2) by inserting before the period at the end thereof the follow-
ing: ", and (3) for establishing, developing, or expanding pro-
grams of library and information science". 
EXTENSION OF LIBRARY OF CONGRESS PROGRAM (PART C) 
SEC. 217. Section 231 of such Act is amended (1) by striking out 
20 use io4i. 
"and" after "1967," and by inserting after "1968," the following: 
"$6,000,000 for the fiscal year ending June 30, 1969, and $11,100,000 
each for the fiscal year ending June 30,1970, and the succeeding fiscal 
year," and (2) by striking out the second sentence. 
C L A R I F Y I N G AUTHORITY TO PURCHASE COPIES; INCREASING AUTHORITY 
TO PREPARE CATALOG AND BIBLIOGRAPHIC MATERIALS; AUTHORIZING 
LIBRARIAN TO ACT AS ACQUISITIONS AGENT 
SEC 218. Section 231 of the Higher Education Act of 1965, as 
amended by section 217 of this Act, is further amended— 
(1) in paragraph (1), by inserting "copies of" before "all" and 
by striking out "and"; 
(2) in paragraph (2), by striking out "for these materials 
promptly after receipt, and distributing bibliographic informa-
tion" and inserting in lieu thereof "promptly anddistributing this 
1038 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
and other bibliographic information about library materials", and 
by striking out the period at the end thereof and inserting in lieu 
thereof "; and'"; and 
(3) by adding after 
paragraph 
(2) 
the following 
new 
paragraph: 
"(3) enabling the Librarian of Congress to pay administrative 
costs of cooperative arrangements for acquiring library materials 
published outside of the States and not readily obtainable outside 
of the country of origin, for institutions of higher education or 
combinations thereof for library purposes, or for other public or 
private nonprofit research libraries." 
PART C—AMENDMENTS TO DEVELOPING INSTITUTIONS PROGRAM 
(TITLE 
III) 
EXTENSION OF DEVELOPING INSTITUTIONS PROGRAM 
20 use 1051. 
SEC. 221. Section 301(b) (1) of the Higher Education Act of 1965 is 
amended by striking out "and" after "1967," and by inserting after 
"1968," the following: "the sum of $35,000,000 for the fiscal year ending 
June 30,1969, the sum of $70,000,000 for the fiscal year ending June 30, 
1970, and the sum of $91,000,000 for the fiscal year ending June 30, 
1971,". 
INCREASED SHARE FOR J U N I O R COLLEGES 
SEC. 222. Effective with respect to fiscal years beginning after 
June 30,1968, section 301(b) (2) of the Higher Education Act of 1965 
is amended by striking out "78 per centum" and inserting in lieu 
thereof "77 per centum". 
PROFESSORS EMERITUS 
JQ2OUSC 1051- 
SEC. 223. (a) Title I I I of the Higher Education Act of 1965 is 
amended by inserting immediately after section 305 the following new 
section: 
"PROFESSORS EMERITUS 
"SEC. 306. (a) The Commissioner is authorized to award grants 
under this section, from funds appropriated for the purpose of this 
title, to professors retired from active duty at institutions of higher 
education (other than developing institutions) to encoura^ge such 
professors to teach and to conduct research at developing institutions. 
Such grants may be awarded by the Commissioner (1) only upon 
application made by an institution and approved for this purpose by 
the Commissioner and (2) only upon a finding by the Commissioner 
that the program of teaching or research set forth m the application is 
reasonable in the light of the qualifications of the professor emeritus 
and of the educational needs of the applicant. 
"(b) The Commissioner shall undertake a program of dissemination 
of information concerning this section. 
"(c) Grants may be awarded under this section for such period of 
teaching or research as the Commissioner may determine. The amount 
of each grant awarded under the provisions of this section for each 
academic year of teaching or research shall be determined by the Com-
missioner upon the advice of the Council." 
Effective date. 
^|^^ rpj^^ amendment made by this section shall be effective with 
respect to appropriations for fiscal years beginning after June 30,1969. 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1039 
PART D—AMENDMENTS TO EDUCATION 
PROFESSIONS 
DEVELOPMENT 
PROGRAM (TITLE 
V) 
EXTENSION OF PROGRAMS 
SEC. 231. (a) Sections 504(b), 511(b), 518(b), 528, 532, and 543 of 
the Higher Education Act of 1965 are each amended by striking out ^
^
2
^
° "fio8°iii8 
"the fiscal year ending June 30, 1970" and inserting in lieu thereof mga, iii9b-2. 
the following: "each of the succeeding fiscal years ending prior to 
July 1,1971". 
(b) (1) Such .section 511(b) is further amended by striking out 
"June 30, 1971" and inserting in lieu thereof "June 30, 1972". 
(2) Such section 528 is further amended by striking out "Jul^^ 1, 
1970" and inserting in lieu thereof "July 1, 1971", and by changing 
the comma before "and such sums" to a semicolon. 
PROVISION OF MEDICAL INSURANCE COVERAGE TO TEACHER CORPS MEMBERS 
NOT OTHERWISE 
COVERED 
SEC. 232. Section 514 of the Higher Education Act of 1965 is 
2ousciio4. 
amended by adding immediately following subsection (d) thereof the 
following new subsection: 
"(e) The Commissioner is authorized to provide medical (including 
hospitalization) insurance for members of the Teacher Corps who do 
not otherwise obtain such insurance coverage either under an arrange-
ment made pursuant to subsection (d) of this section or as an incident 
of an arrangement between the Commissioner and an institution or a 
State or local educational agency pursuant to section 513." 
20 use 1103. 
AUTHORIZING 
STATE EDUCATIONAL AGENCIES TO ADMINISTER 
DIRECTLY 
PROGRAMS OF TEACHER AND TEACHER AIDE RECRUITMENT AND TRAIN-
ING 
SEC. 233. (a) Subsection (a) of section 518 of the Higher Educa-
tion Act of 1965 is amended by inserting after "teacher shortages" 
the following: ", or the efforts of State educational agencies,". 
(b) Subsection (a) of section 520 of such Act is amended— 
20 use 1110. 
(1) in paragraph (2), by inserting a,fter "local educational 
agencies" the following: "or of the State educational agency, or 
both," 
(2) by striking out paragraphs (3) and (4) and inserting in 
lieu thereof the following: 
"(3) with respect to so much of the State program as is to be 
carried out by local educational agencies, (A) provides assurance 
that every local educational agency whose application for funds 
under the plan is denied will be given an opportunity for a fair 
hearing before the State educational agency and (B) sets forth 
the policies and procedures to be followed in allocatmg Federal 
funds to local educational agencies in the State, which policies 
and procedures shall insure that such funds will be allocated to 
local educational agencies having the most urgent need for teach-
ers and teacher aides;" and 
(4) by redesignating paragraphs (5) through (10) as para-
graphs (4) through (9), respectively. 
M I N I M U M 
ALLOTMENT FOR TITLE V - B , SUBPART 2 
SEC. 234. (a) The second sentence of section 519(a) of the Higher 
Education Act of 1965 is amended to read as follows: "From the re- 
^o use 1109. 
mainder of such sums, the Commissioner shall apportion $100,000 to 
1040 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
each State, and shall then apportion to each State such part of the 
amount remaining which bears the same ratio to the total of such 
amount as the number of children enrolled in the public and private 
elementary and secondary schools of that State bears to the total 
number of children so enrolled in such schools in all of the States.". 
Effective date. 
^^j^ 'j^j^g amendment made by this section shall be effective with 
respect to appropriations for fiscal years beginning after June 30, 
1968. 
FELLOWSHIPS FOR SCHOOL ADMINISTRATORS 
SEC. 235. The third sentence of section 521 of the Higher Education 
20 use nil. 
Act of 1965 is amended by inserting after "become such teachers," the 
following: "a career in the administration of such schools,". 
ALLOCATION OF FELLOWSHIPS UNDER TITLE V-C 
SEC. 236. Clause (1) of section 523 of the Higher Education Act of 
20 use 1113. 
1965 ig amended (1) Dy inserting after "provide an equitable distribu-
tion of such fellowships throughout the States," the following: "taking 
into account such factors as the number of children in each State who 
are aged three to seventeen and the undergraduate student enrollment 
in institutions of higher education in each State," and, (2) by striking 
out "except that to the extent he deems proper in the national interest 
after consultation with the National Advisory Council on Education 
Professions Development, the Commissioner may give preference to 
programs designed to meet an urgent national neecr' and inserting in 
lieu thereof "except that to the extent that the National Advisory 
Council on Education Professions Development determines that an 
urgent need for a certain category of educational personnel is unlikely 
to be met without preference in favor of such category over other 
categories of educational personnel, the Commissioner may give pref-
erence to programs designed to meet that need, but in no case shall 
such preferred programs constitute more than 50 per centum of the 
total number of fellowships awarded in any fiscal year". 
TECHNICAL CORRECTIONS 
20 use 1114. 
SEC. 237. Section 524(a) of the Higher Education Act of 1965 is 
amended by inserting in paragraphs (1) and (4) "or postsecondary 
vocational education" after "career m elementary and secondary 
education". 
INCREASE I N 
COST-OF-EDUCATION ALLOWANCE 
20 use 1115. 
SEC. 238. Section 525(b) of the Higher Education Act of 1965 is 
amended to read as follows: 
"(b) The Commissioner shall (in addition to stipends paid to per-
sons under subsection (a)) pay to the institution of higher education 
at which such person is pursuing his course of study such amount as the 
Commissioner may determine to be consistent with prevailing practices 
under comparable federally supported programs, except that such 
amount shall not exceed ^3,500 per academic year for each such 
person." 
EQUITABLE DISTRIBUTION UNDER TITLE V-D 
SEC. 239. TheHigherEducationActof 1965 is amended by inserting 
20 use 1119- 
at the end of part D the following new section: 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1041 
"DISTRIBUTIOK OF TRAINING PROGRAMS 
"SEC. 533. In making grants and contracts for pro-ams and proj-
ects under this part, the Commissioner shall seek to achieve an equitable 
geographical distribution of training opportunities throughout the 
Nation, taking into account the number of children in each State who 
are aged three to seventeen." 
PART E—EQUIPMENT AND MATERIALS FOR HIGHER EDUCATION 
(TITLE 
VI) 
EXTENSION OF PROGRAM 
SEC. 241. Section 601 of the Higher Education Act of 1965 is 20 use 1121. 
amended— 
(1) in subsection (b), by striking out "and" after "1967," and 
by inserting after "1968,''^ the following: "$13,000,000 for the 
fiscal year ending June 30, 1969, and $60,000,000 for each of the 
two succeeding fiscal years,"; 
(2) in subsection (c), by striking out "and" after "1966," and 
by inserting after "for the succeeding fiscal year," the following: 
"$1,500,000 for the fiscal year ending June 30, 1969, and 
$10,000,000 for each of the two succeeding fiscal years,"; and 
(3) by striking out subsection (d). 
ELIGIBILITY OF COMBINATIONS OF INSTITUTIONS 
SEC. 242. (a) Sections 601(b), 601(c) and 605(a) of the Hig:her 
Education Act of 1965 are each amended to inserting after "institu- 
20 use 1125. 
tions of higher education" the following: "and combinations of institu-
tions of higher education". 
(b) The second sentence of section 604(a) of such Act and the first 20 use 1124. 
sentence of section 604(b) are each amended by inserting after "institu-
tion" the following: "or combination of institutions of higher 
education". 
(c) The third sentence of section 604(a) is amended by striking out 
"applicant institutions" and inserting in lieu thereof "applicants". 
(d) Section 604(b) of such Act is amended by inserting after the 
second sentence the following: "A combination of institutions of 
higher education shall be eligible for such a grant in axjcordance with 
regulations of the Commissioner prescribing requirements for main-
tenance of effort." 
(e) Section 605(b) (5) (C) of such Act is amended by striking out 
"institution" and inserting in lieu thereof "applicant". 
CONSUIiTATION 
SEC. 243. Part A of title VI of the Higher Education Act of 1965 is 
20 use 1121-
amended by inserting at the end thereof the following: 
^^^^' 
"CONSULTATION 
"SEC. 610. So as to promote the coordination of Federal programs 
providing assistance in the purchase of laboratory or other special 
equipment for education in the natural or physical sciences, the Com-
missioner shall consult with the National Science Foundation and other 
agencies in developing general policy, under this title, in respect 
thereof." 
1042 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
PART F—NETWORKS FOR KNOWLEDGE 
SHARING OF EDUCATIONAL AND RELATED RESOURCES AMONG COLLEGES 
AND UNIVERSIITES 
20 use 1141-
1144. 
SEC. 251. Tlie Higher Education Act of 1965 is amended by redesig-
nating title VIII as title XII, and sections 801 through 804 (and refer-
ences thereto however styled in such Act, or any other Act, including 
such references heretofore made in this Act) as sections 1201 through 
1204, respectively. The Higher Education Act of 1965 is further 
amended by inserting after title VII the following new title: 
"TITLE VIII—NETWORKS FOR KNOWLEDGE 
"SHARING EDUCATIONAL AND RELATED RESOURCES 
"SEC. 801. (a) To encourage colleges and universities to share to an 
optimal extent, through cooperative arrangements, their technical 
and other educational and administrative facilities and resources, and 
in order to test and demonstrate the effectiveness and efficiency of a 
variety of such arrangements the Commissioner is authorized to enter 
into contracts and to make project grants for all or part of the cost of 
planning, developing, or carrying out such arrangements. Such grants 
may be made to public or nonprofit private colleges or universities. 
When in the Commissioner's judgment it will more effectively pro-
mote the purposes of this title, the Commissioner may make grants to 
other established public or nonprofit private agencies or organizations, 
including professional organizations or academic societies and he may 
enter into contracts with established private agencies and organiza-
tions. 
" (b) Projects for the planning, development, or carrying out of such 
arrangements assisted under this title may, subject to the provisions of 
subsection (c), include— 
"(1) (A) joint use of facilities such as classrooms, libraries, or 
laboratories, including joint use of necessary books, materials, and 
equipment; or (B) affording access to specialized library col-
lections through preparation of interinstitutional catalogs and 
through development of systems and preparation of suitable 
media for electronic or other rapid transmission of materials; 
"(2) establishment and joint operation of closed-circuit tele-
vision or ec^uivalent transmission facilities (such EIS the instruc-
tional television fixed services); and 
"(3) establishment and joint operation of electronic computer 
networks and programs therefor, to be available to participating 
institutions for such purposes as financial and student records, 
student course work, or transmission of library materials. 
"(c) (1) Grants pursuant to clause (B) of paragraph (1) of sub-
section (b) may not be used to pay the costs of electronic transmission 
terminals. 
"(2) In the case of a project for the establishment and operation of 
a computer network, grants may not include— 
"(A) the cost of operating administrative terminals or student 
terminals at participating institutions; or 
"(B) the cost, or any participating institution's pro rata share 
of the cost, of using the central computer facilities of the network, 
except (i) such costs of systems development and programing of 
computers and transmission costs as are necessary to make the 
network operational, (ii) the administrative and p r o - a m support 
costs of the central facilities of the network, and (iii) the line-
access costs incurred by participating institutions. 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1043 
"APPROPRIXVTIONS AUTHORIZED 
"SEC. 802. There are authorized to be appropriated for the purposes 
of this title (and planning and related activities in the initial fiscal 
year for such purpose), $340,000 for the fiscal year ending June 30, 
1969, $4,000,000 for the fiscal year ending June 30,1970, and $15,000,000 
for the fiscal year ending June 30,1971. 
"AUTHORITY FOR FREE OR REDUCED RATE COMMUNICATIONS 
INTERCONNECTION SERVICES 
"SEC. 803. Nothing in the Communications Act of 1934, as amended, 
'*» st^at. lo^^^-^^ 
or in any other provision of law shall be construed to prevent United note. 
States communications common carriers from rendering, subject to 
such rules and regulations as the Federal Communications Commission 
may prescribe, free or reduced rate communications interconnection 
services for interconnection systems within the purview of this title, 
whether or not included in a project for which a grant is made under 
this title." 
PART G—EDUCATION FOR THE PUBLIC SERVICE 
GRANTS, CONTRACTS, AND FELLOWSHIPS TO STRENGTHEN PROGRAMS OF 
EDUCATION FOR THE PUBLIC SERVICE 
SEC. 261. The Higher Education Act of 1965 is amended by insert-
ing after title VIII the following new title: 
^"'^' P- IO42-
"TITLE IX—EDUCATION FOR T H E PUBLIC SERVICE 
"PURPOSE 
"SEC. 901. It is the purpose of this title to establish a program of 
grants and fellowships to improve the education of students attending 
institutions of higher education in preparation for entrance into the 
service of State, local, or Federal governments, and to attract such stu-
dents to the public service. 
"PART A—GRANTS AND CONTRACTS To 
STRENGTHEN AND IMPROVE 
EDUCATION FOR THE PUBLIC SERVICE 
"PROJECT GRANTS AND CONTRACTS 
"SEC. 903. The Secretary is authorized to make grants to or contracts 
with institutions of higher education, or combinations of such insti-
tutions, to assist them in planning, developing, strengthening, improv-
ing, or carrying out programs or projects (i) for the preparation of 
graduate or professional students to enter the public service or (ii) 
for research into, or development or demonstration of, improved 
methods of education for the public service. Such grants or contracts 
may include payment of all or part of the cost of programs or projects 
such as— 
"(1) planning for the development or expansion of graduate or 
professional programs to prepare students to enter the public 
service; 
" (2^ training and retraining of faculty members; 
"(3) strengthening the public service aspects of courses or cur-
riculums leading to a graduate or professional degree; 
" (4) establishment, expansion, or operation of centers for study 
at the graduate or professional level (but not including pa,yment 
for construction or acquisition of buildings); 
1044 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
"(5) conduct of short-term or regular session institutes for 
advanced study by persons engaged in, or preparing to engage in, 
the preparation of students to enter the public service; 
"(6) carrying out innovative and experimental programs of 
cooperative education involving alternate periods of full-time or 
part-time academic study at the institution and periods of full-
time or part-time public service; and 
"(7) research into, and development of, methods of training 
students or faculty, including the preparation of teaching mate-
rials and the planning of curriculum. 
"APPLICATION FOR GRANT OR CONTRACT; ALLOCATION OF GRANTS OR 
CONTRACTS 
"SEC. 904. (a) A grant or contract authorized by this part may be 
made only upon application to the Secretary at such time or times and 
containing such information as he may prescribe, except that no such 
application shall be approved unless it— 
"(1) sets forth programs, activities, research, or development 
for which a grant is authorized under this part, and describes the 
relation to any program set forth by the applicant in an applica-
tion, if any, submitted pursuant to part B ; 
" (2) provides for such fiscal control and fund accounting pro-
cedures as may be necessary to assure proper disbursement of and 
accounting for Federal funds paid to the applicant under this 
section; and 
"(3) provides for making such reports, in such form and con-
taining such information, as the Secretary may require to carry 
out his functions under this section, and for keeping such records 
and for affording such access thereto as the Secretary may find 
necessary to assure the correctness and verification of such reports. 
"(b) The Secretary shall allocate grants or contracts under this part 
in such manner as will most nearly provide an equitable distribution of 
the grants or contracts throughout the United States among institu-
tions of higher education which show promise of being able to use funds 
effectively for the purposes of this part. 
"(c)(1) Payments under this section may be used, in accordance 
with regulations of the Secretary, and subject to the terms and condi-
tions set forth in an application approved under subsection (a), to pay 
part of the compensation of students employed in public service, other 
than public service as an employee in any branch of the Government 
of the LTnited States, as part of a program for which a grant has been 
approved pursuant to this section. 
" (2) Departments and agencies of the United States are encouraged, 
to tJie extent consistent with efficient administration, to enter into 
arrangements with institutions of higher education for the full-time, 
part-time, or temporary employment, whether in the competitive or 
excepted service, of students enrolled in programs set forth in applica-
tions approved under subsection (a). 
"PART B—PUBLIC SERVICE FEIXOWSHIPS 
"AWARD OF PUBLIC SERVICE FELLOWSHIPS 
"SEC. 911. The Secretary is authorized to award fellowships in 
accordance with the provisions of this part for graduate or professional 
study for persons who plan to pursue a career in public service. Such 
fellowships shall be awarded for such periods as the Secretary may 
determine but not to exceed three academic years. 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1045 
"ALLOCATION OF FELLOWSHIPS 
"SEC. 912. The Secretary shall allocate fellowships under this part 
among institutions of higher education with programs approved under 
the provisions of this part for the use of individuals accepted into such 
programs, in such manner and according to such plan as will insofar 
as practicable— 
"(1) provide an equitable distribution of such fellowships 
throughout the United States; and 
" (2) attract recent college graduates to pursue a career in public 
service. 
"APPROVAL OF PROGRAMS 
"SEC. 913. The Secretary shall approve a graduate or professional 
program of an institution of higher education only upon application 
by the institution and only upon his findings— 
"(1) that such program has as a principal or significant objec-
tive the education of persons for the public service, or the education 
of persons in a profession or vocation for whose practitioners 
there is a significant and continuing need in the public service as 
determined by the Secretary after such consultation with other 
agencies as may be appropriate; 
" (2) that such program is in effect and of high quality, or can 
readily be put into effect and may reasonably be expected to be of 
high quality; 
" (3) that the application describes the relation of such program 
to any p r o - a m , activity, research, or development set forth by the 
applicant m an application, if any, submitted pursuant to part 
A; and 
"(4) that the application contains satisfactory assurance that 
(A) the institution will recommend to the Secretary, for the 
award of fellowships under this part, for study in such program, 
only persons of superior j>romise who have demonstrated to the 
satisfaction of the institution a serious intent to enter the public 
service upon completing the program, and (B) the institution will 
make reasonable continuing efforts to encourage recipients of fel-
lowships under this part, enrolled in such program, to enter the 
public service upon completing the program. 
(( 
STIPENDS 
"SEC. 914. (a) The Secretary shall pay to persons awarded fellow-
ships under this part such stipends (including such allowances for sub-
sistence and other expenses for such persons a.nd their dependents) as 
he may determine to be consistent with prevailing prsictices under com-
parable federally supported programs. 
"(b) The Secretary shall (m addition to the stipends paid to persons 
under subsection (a)) pay to the institution of higher education at 
which such person is pursuing his course of study such amount as the 
Commissioner may determine to be consistent with prevailing practices 
under comparable federally supported programs. 
a FELLOWSHIP CONDITIONS 
"SEC. 915. A pei*son awarded a fellowship under the provisions of 
this part shall continue to receive the payments provided in this part 
only during such periods as the Secretary finds that he is maintaining 
satisfactory proficiencv and devoting full time to study or research in 
tlie field in which such fellowship was awarded in an institution of 
1046 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
higher education, and is not engaging in gainful employment other 
than employment approved by the Secretary by or pursuant to 
regulation. 
"PART C—GENEILVL PROVISIONS 
"DEFINITIONS 
"SEC. 921. As used in this title— 
" (a) The term 'State' includes the Canal Zone, and the Trust Terri-
tory of the Pacific Islands. 
"(b) The term 'institution of higher education' means an educa-
Ante, p. 1042. 
tioual institutiou described in the first sentence of section 1201 (other 
than an institution of any agency of the United States) which is 
accredited by a nationally recognized accrediting agency or association 
approved by the Secretary for this purpose. For purposes of this sub-
section, the Secretary shall publish a list of nationally recognized 
accrediting agencies or associations which he determines to be reliable 
authority as to the quality of training offered. 
"(c) The term 'public service' means service as an officer or employee 
in any branch of State, local, or Fedei-al Government. 
" (d) The term 'academic year' means an academic year or its equiva-
lent, as determined by the Secretary. 
"COORDINATION OP FEDERAL ASSISTANCE 
"SEC. 922. In administering this title, the Secretary shall give pri-
mary emphasis to the assistance of programs and activities n,ot other-
wise assisted by the Department of Health, Education, and Welfare, 
or by other agencies of the Federal Government, so as to promote most 
effectively the objectives of this title. 
"LIMITATION 
"SEC. 923. No grant, contract, or fellowship shall be aw^arded under 
this title to, or for study at, a school or department of divinity. For the 
"School or de- 
purposes of this section, the term 'school or department of divinity' 
dfvinuy!'° 
means an institution or department or branch of an institution whose 
program is specifically for the education of students to prepare them 
to become ministers of religion or to enter upon some other religious 
vocation or to prepare them to teach theological subjects. 
u 
REPORT 
"SEC. 924. The Secretary shall include in his annual report to the 
Congress a report of activities of his Department under this title, in-
cluding recommendations for needed revisions in the provisions 
thereof. 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 925. There are authorized to be appropriated $340,000 for the 
fiscal year ending June 30, 1969, $5,000,000 for the fiscal year ending 
June 30,1970, and $13,000,000 for the fiscal year ending June 30,1971, 
to carry out the purposes of this title (and planning and related activi-
ties in the initial fiscal year for such purpose). Funds appropriated for 
the fiscal year ending June 30, 1969, shall be available for obligation 
pursuant to the provisions of this title during that year and the suc-
ceeding fiscal year." 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1047 
PART H—IMPROVEMENT OF GRADUATE PROGRAMS 
AUTHORIZATION 
SEC. 271. The Higher Education Act of 1965 is amended by inserting 
after title I X the following new title: 
^"'®' P- lo^a. 
"TITLE X—IMPROVEMENT OF GRADUATE PROGRAMS 
"STATEMENT OF PURPOSES 
"SEC. 1001. The purposes of this title are to strengthen and improve 
the quality of graduate programs leading to a doctoral or professional 
(other than medical) degree, and to increase the number of such quality 
programs. 
"APPROPRIATIONS AUTHORIZED; USE OF GRANTS 
"SEC. 1002. (^a) There are authorized to be appropriated $340,000 
for the fiscal year ending June 30, 1969, $5,000,000, for the fiscal year 
ending June 30, 1970, and $10,000,000 for the fiscal year ending 
June 30, 1971, to enable the Commissioner to make grants to institu-
tions of higher education having programs leading to a degree of 
doctor of philosophy or comparable professional or other graduate 
degree, upon such terms and conditions as he may establish, to pay 
part of the cost of planning, developing, or carrying out projects or 
activities designed to achieve one or more of the purposes set forth in 
section 1001. Such amount for the fiscal year ending June 30, 1969, 
shall also be available for planning and related activities for the pur-
pose of this title. Such grants may be used for experimental, innova-
tive, or interdisciplinary projects or activities such as— 
" (1) the strengthening of graduate faculties by enlarging their 
size, improving their academic or professional qualifications, or 
increasing the number of disciplines in which they are skilled; 
"(2) the expansion or improvement of existing graduate pro-
grams, or the establishment of additional graduate programs; 
"(3) the acquisition of appropriate equipment or curricular, 
research, or other materials required to fulfill the objectives of 
projects or activities described in clause (2); 
"(4) the development or carrying out of cooperative arrange-
ments among graduate schools in furtherance of the purposes of 
this title; or 
" (5) the strengthening of graduate school administration. 
"(b) No portion of the sums granted under this title may be used— 
"(1) for payment in excess of 66% per centum of the total cost 
of such project or activity; 
"(2) for payment in excess of 50 per centum of the cost of the 
purchase or rental of books, audiovisual aids, scientific appara-
tus, or other materials or equipment, less any per centum of such 
cost, as determined by the Commissioner, that is paid from sums 
received (other than under this part) as Federal financial as-
sistance; or 
"(3) for sectarian instruction or religious worship, or pri-
marily in connection with any part of the program of an institu-
tion, or department or branch of an institution, whose program 
is specifically for the education of students to prepare them to 
become ministers of religion or to enter upon some other religious 
vocation or to prepare them to teach theological subjects. 
96-600 O - 69 - 69 
1048 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
"SELECTION OF GRANT RECIPIENTS 
"SEC. 1003. In the awarding of grants under this title the Commis-
sioner shall, insofar as practicable and consistent with the other pur-
poses of this title, give weight to the objective of having an adequate 
number of graduate and professional schools of good quality within 
each appropriate region. 
"CONSULTATION 
"SEC. 1004. In the development of general policy governing the 
administration of this title, the Commissioner shall consult with 
the National Science Foundation, the National Foundation on the 
Arts and the Humanities, and the Federal Judicial Center for the 
purpose of promoting the coordination of Federal programs bearing 
on the purposes of this title." 
PART I—LAW SCHOOL CLINICAL EXPERIENCE PROGRAMS 
AUTHORIZATION 
SEC. 281. The Higher Education Act of 1965 is amended by inserting 
Ante. p. 1047. 
after title X the following new title: 
"TITLE XI—LAW SCHOOL CLINICAL 
E X P E R I E N C E PEOGRAMS 
a PROGRAM AUTHORIZATION 
"SEC. 1101. (a) The Commissioner is authorized to enter into con-
tracts with accredited law schools in the States for the purpose of pay-
ing not to exceed 90 per centum of the cost of establishing or expand-
ing programs in such schools to provide clinical experience to students 
in the practice of law, with preference being given to programs provid-
ing such experience, to the extent practicable, in the preparation and 
trial of cases. 
" (b) Such costs may include necessary expenditures incurred for— 
"(1) planning; 
"(2) training of faculty members and salary for additional 
faculty members; 
" (3) travel and per diem for faculty and students; 
"(4) reasonable stipends for students for work in the public 
service performed as part of any such program at a time other 
than during the regular academic year; 
"(5) equipment; and 
"(6) such other items as are allowed pursuant to regulations 
issued by the Commissioner. 
" (c) No law school may receive more than $75,000 in any fiscal year 
pursuant to this title. 
-ch^or"^"*'^^^'" 
"^^^ ^^^ ^^® purpose of this title the term 'accredited law school' 
means any law school which is accredited by a nationally recognized 
accrediting agency or association approved by the Commissioner for 
this purpose. 
"APPLICATIONS 
"SEC. 1102. (a) A contract authorized by this title may be made by 
the Commissioner upon application which— 
"(1) is made at such time or times and contains such informa-
tion as he may prescribe; 
" (2) provides for such fiscal control and fund accounting pro-
cedures as may be necessary to assure proper disbursement of and 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1049 
accounting for Federal funds paid to the applicant under this 
title; and 
"(3) provides for making such reports, in such form and con-
taining such information as the Commissioner may require to 
carry out his functions under this title, and for keeping such 
records and for affording such access thereto as the Commissioner 
may find necessary to assure the correctness and verification of 
such reports. 
"(b) The Commissioner shall allocate contracts under this title in 
such manner as will provide an equitable distribution of such contracts 
throughout the United States among law schools which show promise 
of being able to use funds effectively for the purposes of this title. 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 1103. There are authorized to be appropriated $340,000 for 
the fiscal year ending June 30,1969, and $7,500,000 for each of the fiscal 
years ending June 30, 1970, and June 30, 1971, to carry out the pur-
poses of this title (and planning and related activities in the initial 
fiscal year for such purposes). Funds appropriated for the fiscal year 
ending June 30, 1969, shall be available for obligation pursuant to the 
provisions of this title during that year and the succeeding fiscal year." 
PART J—AMENDMENTS TO GENERAL PROVISIONS (TITLE 
X I I ) 
ESTABLISHMENT OF ADVISORY COUNCIL ON GRADUATE EDUCATION; ABOLI-
TION OF HIGHER EDUCATION FACILITIES ACT ADVISORY COMMITTEE 
S E C 291. (a) The Higher Education Act of 1965 is amended by 
adding after the section 1204 (as redesignated by section 251 of this 
Act) the following new section: 
Ante, p. 1042. 
ii ADVISORY COUNCIL ON GRADUATE 
EDUCATION 
"SEC. 1205. (a) There is hereby established in the Office of Educa-
tio» an Advisory Council on Graduate Education (hereafter in this 
section referred to as the 'Council'), consisting of the Commissioner, 
who shall be Chairman, of one representative each from the Office of 
Science and Technology in the Executive Office of the President, the 
National Science Foundation, and the National Foundation on the 
Arts and the Humanities, and of members appointed bv the Commis-
sioner without regard to the civil service or classification laws. Such 
appointed members shall be selected from among leading authorities in 
the field of education, except that at least one of them shall be a gradu-
ate student. 
"(b) The Council shall advise the Commissioner on matters of gen-
eral policy arising in the administration by the Commissioner of pro-
grams relating to graduate education. 
"(c) Members of tlie Council who are not in the regular full-time 
employ of the United States shall, while attending meetings or con-
ferences of the Council or otherwise engaged in tne business of the 
Council, be entitled to receive compensation at a rate fixed by the Sec-
retary, but not exceeding the rate specified at the time of such service 
for grade GS-18 in section 5332 of title 5, United States Code, includ-
ing traveltime, and while so serving on the business of the Council 
away from their homes or regular places of business, thej may be 
allowed travel expenses, including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code, for persons 
employed intermittently in the Government service. 
"(d) The Commissioner is authorized to furnish to the Council 
such technical assistance, and to make available to it such secretarial, 
Membership. 
Compensation, 
travel expenses. 
5 u s e 5332 
note. 
80 Stat. 499. 
1050 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
Repeal. 
20 use 733. 
20 u s e 732. 
clerical, and other assistance and such pertinent data available to him, 
as the Council may require to carry out its functions." 
(b) (1) Section 203 of the Higher Education Facilities Act of 1963 
is repealed. 
(2) Paragraph (1) of section 202(c) of such Act is amended to read 
as follows: 
" (1) The Commissioner shall not approve any application for a grant 
under this title until he has obtained the advice and recommendations 
of a panel of specialists who are not employees of the Federal Gov-
ernment and who are competent to evaluate such applications." 
Ante, p. 1049. 
72 Stat. 1580-
20 use 401 
note. 
77 Stat. 363. 
20 use 701 
note. 
Appropriation. 
DISSEMINATION OF INFORMATION 
SEC. 292. The Higher Education Act of 1965 is further amended by 
adding after section 1205 (as added by this title) the following new 
section: 
"DISSEMINATION OF INFORMATION 
"SEC. 1206. (a) For the purpose of carrying out more effectively the 
provisions of this Act, the National Defense Education Act of 1958, the 
Higher Education Facilities Act of 1963, and other Acts administered 
by him in the field of higher education (including those administered 
by him by delegation), the Commissioner— 
"(1) shall prepare and disseminate to institutions of higher 
education. State agencies concerned with higher education, and 
other appropriate agencies and institutions (A) reports on pro-
grams and projects assisted under such Acts and other programs 
andjjrojectsof a similar nature, and (B) catalogs, reviews, bibliog-
raphies, abstracts, analyses of research and experimentation, and 
such other materials as are generally useful for such purpose; 
" (2) may upon request provide advice, counsel, technical assist-
ance, and demonstrations to institutions and agencies referred to 
in paragraph (1) undertaking to initiate or expand programs or 
projects under such Acts in order to enhance the quality, increase 
the depth, or broaden the scope of such programs or projects, and 
shall inform such institutions and agencies of the availability of 
assistance pursuant to this paragraph; 
"(3) shall from time to time prepare and disseminate to insti-
tutions and agencies referred to m paragraph (1) reports setting 
forth developments in the utilization and adaptation of projects 
carried out pursuant to such Acts; and 
"(4) may enter into contracts with public or private agencies, 
organizations, groups, or individuals to carry out the provisions 
of this section. 
"(b) There are authorized to be appropriated to carry out the pro-
visions of this section $2,000,000 for the fiscal year ending June 30, 
1970. For the fiscal year ending June 30,1971, there may be appropri-
ated to carry out the provisions of this section only such amount as the 
Congress may hereafter authorize by law. 
C O N F O R M I N G 
D E F I N I T I O N S 
O F 
I N S T I T U T I O N 
O F 
H I G H E R 
E D U C A T I O N 
I N 
H I G H E R 
E D U C A T I O N 
ACT 
O F 1965 AND IN NATIONAL DEFENSE EDUCA-
TION ACT OF 19 5 8 
Ante, p. 1042-
SEC. 293. (a) Section 1201(a) of the Higher Education Act of 1965 
(as so redesignated by section 251 of this Act) is amended by inserting 
after "if not so accredited," in clause (5) the following: "(A) is an 
institution with respect to which the Commissioner has determined 
that there is satisfactory assurance, considering the resources available 
to the institution, the period of time, if any, during which it has op-
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1051 
erated, the effort it is making to meet accreditation standards, and the 
purpose for which this determination is being made, that the institu-
tion will meet the accreditation standards of such an agency or asso-
ciation within a reasonable time, or (B)". 
(b) The second sentence of such paragraph (a) is amended by strik-
ing out "Such term also includes any business school or technical in-
stitution" and inserting in lieu thereof "Such term also includes any 
school which provides not less than a one-year program of training 
to prepare students for gainful employment in a recognized occupa-
tion and". 
INSERTION 
OF 
DEFINITION 
OF 
"COMBINATION 
OF 
INSTITUTIONS 
OF 
HIGHER E D U C A T I O N " I N HIGHER EDUCATION ACT OF 1 9 6 5 
SEO. 294. Section 1201 of the Higher Education Act of 1965 (as so 
redesignated by section 251 of this Act) is amended by inserting at the 
end thereof the following: 
"(j) The term 'combination of institutions of higher education' 
means a group of institutions of higher education that have 
entered into a cooperative arrangement for the purpose of carrying 
out a common objective, or a public or private nonprofit agency, 
organization, or institution designated or created by a group of 
institutions of higher education for the purpose of carrying out a 
common objective on their behalf." 
Ante, p. 1042-
PROVISIONS FOR ADEQUATE LEADTIME AND FOR PLANNING AND EVALUATION 
I N HIGHER EDUCATION PR0<iRAMS 
SEC. 295, The Higher Education Act of 1965, as amended by this 
Act, is further amended by adding after section 1206 the following new 
sections: 
Ante, 
p. 1050-
"PROGRAM PLANNING AND EVALUATION FOR HIGHER EDUCATION PROGRAMS 
"SEC. 1207. There are authorized to be appropriated $1,117,000 for 
the fiscal year ending June 30, 1969, and $1,900,000 for the fiscal year 
ending June 30, 1970, to be available to the Secretary, in accordance 
with regulations prescribed by him, for expenses, including grants, 
loans, contracts, or other payments, for (1) planning for the succeeding 
year programs or projects authorized under any other provision of 
this Act or any provision of the National Defense Education Act of 
1958 or the Higher Education Faciilities Act of 1963, and (2) evalua-
tion of programs or projects so authorized. 
a 
Appropriation. 
ADVANCE FUNDING 
"SEC. 1208. To the end of affording the responsible State, local, and 
Federal officers concerned adequate notice of available Federal financial 
assistance for education, appropriations for grants, loans, contracts, or 
other payments under any Act referred to in section 1207 are 
authorized to be included in the appropriation Act for the fiscal year 
preceding the fiscal year for which they are available for obligation. 
In order to effect a transition to this method of timing appropriation 
action, the preceding sentence shall apj)ly notwithstanding that its 
initial application under any such Act will result in the enactment in 
the same year (whether in the same appropriation Act or otherwise) 
of two separate appropriations, one for the then current fiscal year and 
one for the succeeding fiscal year. 
72 Stat. 1580. 
20 u s e 401 
note. 
77 Stat. 3(53. 
20 u s e 701 
note. 
1052 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
((. 
Ante, p. 1051. 
EVALUATION REPORTS AND CONGRESSIONAL REVIEW 
"SEC. 1209. (a) No later than March 31 of each calendar year, the 
Secretary shall transmit to the respective committees of the Congress 
having legislative jurisdiction over any Act referred to in section 1207 
and to the respective Committees on Appropriations a report evaluat-
ing the results and effectiveness of prpgrams and projects assisted 
thereunder during the preceding fiscal year, together with his 
recommendations (including any legislative recommendations) relat-
ing thereto. 
''(b) In the case of any such program, the report submitted in the 
penultimate fiscal year for which appropriations are then authorized 
to be made for such program shall include a comprehensive and 
detailed review and evaluation of such program (as up to date as the 
due date permits) for its entire past life, based to the maximum extent 
practicable on objective measurements, together with the Secretary's 
recommendations as to proposed legislative action. 
" A V A I L A B I L I T Y o r A P P R O P R I A T I O N S O N ACADEMIC OR SCHOOL YEAR BASIS 
"SEC. 1210. Appropriations for any fiscal year for grants, loans, 
contracts, or other payments to educational agencies or institutions 
under any Act referred to in section 1207, may, in accordance with 
regulations of the Secretary, be made available for expenditure by the 
agency or institution concerned on the basis of an academic or school 
year differing from such fiscal year." 
TITLE III—AMENDMENTS TO OTHEK PROVISIONS OF 
-THE NATIONAL DEFENSE EDUCATION ACT OF 1958 
PART A—EQUIPMENT AND MATERIALS FOR ELEMENTARY AND SECONDARY 
EDUCATION (TITLE III) 
EXTENSION OF PROGRAM 
Appropriation. 
gj,^. 3Q1 (g^^ Sectiou 301 of tlic National Defense Education Act of 
20 use 441. 
1958 is amended by striking out "and $110,000,000 for the fiscal year 
ending June 30,1968," and inserting in lieu thereof ", $110,000,000 for 
each of the fiscal years ending June 30, 1968, and June 30, 1969, 
$120,000,000 for the fiscal year ending June 30,1970, and $130,000,000 
for the fiscal year ending June 30,1971,". 
(b) Such section 301 is further amended by striking out "the fiscal 
year ending June 30, 1965, and for each of the three succeeding fiscal 
years" and inserting in lieu thereof "each of the succeeding fiscal years 
ending prior to July 1,1971". 
20 use 444. 
(c) The second sentence of section 304(b) of such Act is amended 
by striking out "eight" and inserting in lieu thereof "eleven". 
PROVISION FOR W I T H I N - S T A T E E Q U A L I Z A T I O N I N S T A T E - I M P O S E D R E Q U I R E -
M E N T S FOR F I N A N C I A L PARTICIPATION OF PROJECT APPLICANTS 
SEC. 302. Subsection (a) of section 303 of the National Defense 
20 use 443. 
Education Act of 1958 is amended by striking out the period at the 
end of paragraph (5) and inserting m lieu thereof "; and"; and by 
inserting at the end of such subsection the following new paragraph: 
"(6) sets forth any requirements imposed upon applicants for 
financial participation in projects assisted under this part, includ-
ing any provision for taking into account, in such requirements, 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1053 
the resources available to any applicant for such participation 
relative to the resources for participation available to all other 
applicanits." 
PRIVATE S C H O O L S : AUTHORIZING REALLOTMENT OF SET-ASIDE FOR LOANS; 
REPEALING LOAN ALLOTMENT FORMULA 
SEC. 303. (a)(1) Section 305 of the National Defense Education 
Act of 1958 is amended by striking out "SEC. 305." and all that follows 
20 use 445. 
down to but not including subsection (b) (1) and inserting in lieu 
thereof the following: 
"SEC. 305. From the sums reserved for each fiscal year for the pur-
poses of this section under the provisions of section 302(a), the Com-
missioner is authorized to make loans to private nonprofit elementary 
and secondary schools in any State. Any such loan shall be made only 
for the purposes for whicK payments to State educational agencies 
are authorized under the first sentence of section 301, and—". 
^° "^^ "
*
'
* ^' 
(2) Paragraph (3) of such section is amended by striking out "the 
current average yield on all outstanding marketable obligations of the 
United States" and inserting in lieu thereof "the current average mar-
ket yield on outstanding marketable obligations of the United States 
with redemption periods to maturity comparable to the average 
maturities 01 such loans". 
(b) Section 302(c) of such Act is amended to read as follows: 
2° "^^ ''^^• 
"(c) The amount of any State's allotment under subsection (a) of 
this section for any fiscal year which the Commissioner determines will 
not be required for such fiscal year shall be available for reallotment 
from time to time, on such dates during such year as the Commissioner 
may fix, to the other States in proportion to the original allotments to 
such States under subsection (a) of this section, but with such propor-
tionate amount for any such State being reduced to the extent it exceeds 
the sum the Commissioner estimates such State needs and will be able 
to use for such year; and the total of such reductions shall be similarly 
reallotted among the States whose proportionate amounts were not so 
reduced. Any amount reserved for any fiscal year for making loans 
under section 305 which the Conimissioner determines will not be 
required for that purpose for such year shall be available for allotment 
among the States m the manner p/l["ovided in the preceding sentence for 
reallotments. Any amount allottM or reallotted to a State under this 
subsection during a year from ftmds appropriated pursuant to section 
301 shall be deemed part of its /Allotment under subsection (a) of this 
section for such year." 
(c) The amendment made by subsection (a) (2) shall apply with 
Effective date. 
respect to loans made after the \date of enactment of this Act. 
EQUIPMENT FOR EDUCAiriONALLY DEPRIVED CHILDREN 
SEC. 304. (a) Title I I I of the National Defense Education Act of 
1958 is amended by inserting immediately below the center heading 
20 use 441-445. 
thereof the following: 
"PART A—GRANTS TO STATES" 
(b) Title I I I of such Act is amended (1) by striking out "this title" 
wherever it appears and inserting in lieu thereof "this part"; and (2) 
by adding at the end thereof the following new part: 
Ante, p. 1052. 
20 u s e 241a 
241m. 
1054 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
"PART B—GRANTS IX> LOCAL EDUCATIONAL AGENCIES 
"APPROPRIATIONS AUTHORIZED 
"SEC. 311. There are hereby authorized to be appropriated, for 
carrying out this part, $84,373,(X)0 for the fiscal year ending June 30, 
1969, and $160,000,000 for the fiscal year ending June 30, 1970. For 
the fiscal year ending June 30, 1971, there may be appropriated to 
carry out the provisions of this part only such amount as the Con-
gress may hereafter authorize by law. 
"ALLOTMENTS TO LOCAL EDUCATIONAL AGENCIES 
"SEC. 312. From the sums appropriated pursuant to section 311 for 
any fiscal year the Commissioner shall reserve such amount, but not 
in excess of 3 per centum thereof, as he may determine for allotment as 
Post, p. 1058. 
provided in section 1008(A). From the remainder of such sums the 
Commissioner shall allot to each local educational agency (other than 
local educational agencies of States which receive their allotments 
under this part as provided in subsection 1008(A)) an amount which 
bears the same ratio to the amount of such remainder as the amount 
received by such agency from funds appropriated for the preceding 
fiscal year for grants under title I of the Elementary and Secondary 
Education Act of 1965 (title II of Public Law 874, Eighty-first Con-
gress, as amended) bears to the amount received by all local educa-
tional agencies from such funds for such year. 
"APPLICATION OF LOCAL EDUCATIONAL AGENCY 
"SEC. 313. (a) A local educational agency may receive a grant under 
this part for any fiscal year only on application therefor approved by 
the appropriate State educational agency, upon its determination 
(consistent with such basic criteria as the Commissioner may estab-
lish)— 
"(1) that payments under this part will be used for the ac-
quisition of equipment and materials referred to in section 303(a) 
20 use 443. 
^1) I
^
Q l3g wsed in programs and projects designed to meet the 
special educational needs of educationally deprived children in 
school attendance areas having a high concentration of children 
from low-income families; 
" (2) that, to the extent consistent with the number of education-
ally deprived children in the school district of the local educational 
agency who are enrolled in private elementary and secondary 
schools, such agency has made provision for including special 
educational services and arrangements (such as dual enrollment, 
educational radio and television, and mobile educational services 
and equipment) which will afford such children the benefits of the 
equipment and materials provided under this part; 
" (3) that the local educational agency has provided satisfactory 
assurance that the control of funds provided under this part, and 
that title to equipment and materials acquired therewith, shall be 
in a public agency for the uses and purposes provided in this part, 
and that a public agency will administer such funds and equip-
ment and materials; and 
"(4) that the local educational agency will make an annual 
report and such other reports to the State educational agency, in 
such form and containing such information, as may be reasonably 
necessary to enable the State educational agency to perform its 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1055 
duties under this part, and will keep such records and afford such Recordkeeping. 
access thereto as the State educational agency may find necessary 
to assure the correctness and verification of such reports. 
"(b) The State educational agency shall not finally disapprove in 
whole or in part any application for funds under this part without first 
affording the local educational agency submitting the application rea-
sonable notice and opportunity for a heiaring. 
"STATE APPLICATION 
"SEC. 314. (a) Any State desiring to participate under this part 
shall submit through its State educational agency to the Commissioner 
an application, in such detail as the Commissioner deems necessary, 
which provides satisfactory assurance— 
"(1) that payments under this part will be used only for pro-
grams and projects which have been approved by the State edu-
cational agency pursuant to section 318, and that such agency will 
in all other respects comply with the provisions of this part, includ-
ing the enforcement of any obligations imposed upon a local edu-
cational agency under section 313. 
"(2) that such fiscal control and fund accounting procedures 
will be adopted as may be necessary to assure proper disbursement 
of, and accounting for, funds paid to the State (including such 
funds paid by the State to local educational agencies) under this 
part; and 
"(3) that the State educational agency will make to the Com-
missioner such reports as may be reasonably necessary to enable 
the Commissioner to perform his duties under this part (including 
such reports as he may require to determine the amounts which 
local educational agencies of that State are eligible to receive for 
any fiscal year), and assurance that such agency will keep such 
records and afford such access thereto as the Commissioner may 
find necessary to assure the correctness and verification of sucn 
reports. 
" (b) An application submitted under this section shall be deemed a 
State plan for the purposes of sections 1004 and 1005. 
^^^ ^^^ 5^'*' 
u 
PAYMENTS 
"SEC. 315. (a) The Commissioner shall, from time to time pay to 
each State, in advance or otherwise, the amount which the local educa-
tional agencies of that State are eligible to receive under this part. 
Such payments shall take into account the extent (if any) to which any 
previous payment to such State educational agency under this part 
(whether or not in the same fiscal year) was greater or less than the 
amount which should have been paid to it. 
"(b) From the funds paid to it pursuant to subsection (a) each State 
educational agency shall distribute to each local educational agency of 
the State which has submitted an application approved to pursuant 
to section 313(a) the amount for which such application has been 
approved, except that this amount shall not exceed its allotment for 
the fiscal year under section 312." 
(c) Paragraph (2) of section 1004(c) of the National Defense Edu-
cation Act of 1958 is amended, (1) by striking out "title I I I or V" 
and inserting in lieu thereof "part A or B of title I I I or under title V"; 
and (2) by inserting "part or" before "title or section" each time these 
words appear in such paragraph. 
1056 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
PART B—AMENDMENTS TO NATIONAL DEFENSE FELLOWSHIP PROCJRAM 
EXTENSION OF PROGRAM 
SEC. 311. (a) Section 402(a) of the National Defense Education Act 
20 use 462. 
Qf 3^958 is amended by striking out "two succeeding fiscal years" and 
inserting in lieu thereof "seven succeeding fiscal years". 
20 use 463. 
(h) Section 403(a) of such Act is amended by striking out "three 
succeeding fiscal years" and inserting in lieu thereof "eight succeeding 
fiscal years". 
INCREASING 
M A X I M U M 
LENGTH 
OF FELLOWSHIP 
FROM 
THREE TO FOUR 
YEARS I N SPECIAL 
CIRCUMSTANCES, 
AND REQUIRING 
INSTITUTIONAL 
EFFORT TO ENCOURAGE RECIPIENTS TO ENTER OR CONTINUE 
TEACHING 
SEC. 312. (a) Subsection (a) of section 402 of the National Defense 
Education Act of 1958 is amended hj inserting "(1)" after "except" 
in the second sentence thereof, and by inserting immediately before the 
period at the end of such sentence the following: ", and (2) that the 
Commissioner may provide by regulation for the granting of such 
fellowships for a period of study not to exceed one academic year (or 
one calendar year in the case of fellowships to which clause (1) applies) 
in addition to the maximum period otherwise applicable, under special 
circumstances in which the purposes of this title would most effectively 
be served thereby". 
(b) The Commissioner may in his discretion increase, in accordance 
with the amendment made by subsection (a), the maximum periods of 
fellowships awarded prior to the date of enactment of this Act. 
(c) The second sentence of section 403(a) is amended by striking 
out the period at the end of clause (2) of such sentence and inserting 
", and" m lieu thereof; and by adding the following new clause: 
"(3) that the application contains satisfactory assurance that 
the institution will make reasonable continuing efforts to encour-
age recipients of fellowships under this title, enrolled in such pro-
gram, to teach or continue to teach in institutions of higher 
education." 
Effective date. 
(^^ -pj^g amendment made by subsection (c) of this section shall 
apply with respect to fellowships awarded on or after the date of 
enactment of this Act. 
REQUIRING STIPENDS TO BE SET I N AN AMOUNT CONSISTENT W I T H 
THOSE 
AWARDED FOR COMPARABLE 
FELLOWSHIPS 
SEC. 313. (a) Section 404 of the National Defense Education Act of 
20 use 464. 
1953 ig amended to read as follows: 
" F E L L O W S H I P STIPENDS 
"SEC. 404. (a) The Commissioner shall pay to persons awarded 
fellowships under this title such stipends (including such allowances 
for subsistence and other expenses for such persons and their depend-
ents) as he may determine to be consistent with prevailing practices 
under comparable federally supported programs. 
"(b) The Commissioner shall (in addition to the stipends paid to 
persons under subsection (a)) pay to the institution of higher educa-
tion at which such person is pursuing his course of study such amounts 
as the Commissioner may determine to be consistent with prevailing 
practices under comparable federally supported programs, except that 
such amount shall not exceed $3,500 per academic year for any such 
person." 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 19,68 
1057 
(b) The amount of any stipend payable with respect to a fellowship 
awarded prior to the date of enactment of this Act shall not, during the 
period for which such fellowship was awarded, be less with respect to 
any year of study than the amount that would in the absence of the 
amendment made by subsection (a) of this section be payable with 
respect to such year. 
EQUITABLE DISTRIBUTION OF FELLOWSHIPS UNDER TITLE IV OF THE 
NATIONAL DEFENSE EDUCATION ACT OF 1958 
SEC. 314. Section 403 of the National Defense Education Act of 
1958 is amended by inserting at the end thereof the following new 
subsection: 
"(e) In order to provide training opportunities in those areas of 
the Nation which have greater need for increased numbers of highly 
qualified persons to teach in institutions of higher education, the Com-
missioner shall seek to achieve an equitable geographical distribution 
of graduate programs approved under this section throughout the 
Nation, based upon such factors as student enrollments in institutions 
of higher education and population." 
PART C—GumANCE, COUNSELING, AND TESTING (TITLE V) 
20 use 463. 
EXTENSION OF PROGRAM 
SEC. 321. (a) Section 501 of the National Defense Education Act of 
1958 is amended by striking out "and" after "June 30, 1966," and by 
inserting 
after 
"two 
succeeding 
fiscal 
years," the 
following: 
"$25,000,000 for the fiscal year ending June 30,1969, $40,000,000 for 
the fiscal year ending June 30,1970, and $54,000,000 for the fiscal year 
ending June 30,1971,". 
(b)(1) The second sentence of section 504(a) of such Act is 
amended bj^ striking out "eight". 
(2) Section 504(b) of such Act is amended by striking out "nine". 
Appropriation. 
20 use 481. 
20 use 484. 
SHORT-TERM TRAINING SESSIONS IN GUIDANCE AND COUNSELING 
SEC. 322. Section 503(a) (2) of the National Defense Education Act 
of 1958 is amended by inserting before the period at the end thereof a 
comma and the following: "and such programs may include, at the 
discretion of such State agency, short-term training sessions for per-
sons engaged in guidance and counseling in elementary and secondary 
schools, junior colleges, and technical institutes in such State". 
PART D—^LANGUAGE DEVELOPMENT (TITLE VI) 
EXTENSION OF PROGRAM 
SEC. 331. (a) Subsections (a) and (b) of section 601 of the National 
Defense Education Act of 1958 are each amended by striking out 
"1968" and inserting in lieu thereof "1971". 
(b) Section 603 of such Act is amended by striking out "and" 
before "$18,000,000" and by inserting after "1968," the following: 
"$16,050,000 for the fiscal year ending June 30, 1969, $30,000,000 for 
the fiscal year ending June 30,1970, and $38,500,000 for the fiscal year 
ending June 30, 1971". 
20 use 483. 
20 use 511. 
Appropriation. 
20 use 513. 
1058 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
PART E—EDUCATIONAL MEDIA (TITLE 
VII) 
SPECIAL PERSONNEL 
20 use 562. 
gEC. 341. Section 762 of the National Defense Education Act of 1958 
is amended by striking out "television, radio, motion pictures, and 
other related media of communication" and inserting in lieu thereof 
"new media and technology". 
PART F—AMENDMENT TO MISCELLANEOUS PROVISIONS (TITLE X) 
PROVISION I N N A T I O N A L DEFENSE EDUCATION ACT OF 1 9 5 8 FOR T H E TRUST 
T B R R I 1 X ) R Y O F T H E PACIFIC ISLANDS, FOR SCHOOLS OF DEPARTMENT OF 
INTERIOR FOR INDIAN CHILDREN, AND FOR OVERSEAS DEPENDENT SCHOOLS 
20 u s e 442 
482; Ante, p 
OF DEPARTMENT OF DEFENSE 
SEC. 351. (a) Section 1008 of the National Defense Education Act 
20 use 588. 
of 1958 is amended to read as follows: 
a 
ALLOTMENTS 
TO TERRITORIES 
AND POSSESSIONS 
"SEC. 1008. The amounts reserved by the Commissioner under sec-
tions 302, 312, and 502 shall, in accordance therewith, be allotted 
1054. 
among— 
"(A) Puerto Rico, the Canal Zone, Guam, American Samoa, 
the Virgin Islands, and the Trust Territory of the Pacific Islands 
according to their respective needs for the tyj)e of assistance fur-
nished under the part or title in which the section appears, and 
"(B) in the case of amounts so reserved under sections 302 and 
502, (i) the Secretary of the Interior, according to the need for 
such assistance in order to effectuate the purposes of such part 
or title in schools operated for Indian children by the Department 
of the Interior, and (ii) the Secretary of Defense according to the 
need for such assistance in order to effectuate the purposes of such 
part or title in the overseas dependents schools of the Department 
of Defense. The terms upon which payments for such purpose shall 
be made to the Secretary of the Interior and the Secretary of 
Defense shall be determined pursuant to such criteria as the Com-
missioner determines will best carry out the purposes of this title." 
(b) Sections 302(a) (1) and 502(a) of such Act are each amended by 
striking out "2 per centum thereof, as he may determine for allot-
ment as provided in section 1008" and inserting in lieu thereof "3 per 
centum thereof, as he may determine for allotment as provided in sec-
tion 1008 (A), and such amounit, not in excess of 1 per centum thereof, 
as he may determine for allotment as provided in section 1008(B)". 
20 use 403. 
(c) Section 103(a) of such Act is amended (1) by striking out "or" 
each time it appears before "the Virgin Islands", (2) by inserting 
after "the Virgin Islands," as it first appears "and, for the purposes of 
titles II, III, and V, the Trust Territory of the Pacific Islands,", (3) 
by striking out" (1) as used in section 205 (b) (3) of this title such term 
includes the Trust Territory of the Pacific Islands, and (2)", and (4) 
by inserting before the period at the end thereof ", or the Trust Terri-
tory of the Pacific Islands". 
Effective date. 
^(j^ 'pj^g amendments made by this section shall be effective with 
respect to fiscal years ending after June 30,1968. 
82 STAT. ] 
PUBLIC L
A
W 90-575-OCT. 16, 1968 
1059 
TITLE IV—AMENDMENTS TO HIGHER EDUCATION 
FACILITIES ACT OF 1963 
EXTENSION OF PROGRAM 
SEC. 401. (a) (1) Subsection (a) of section 101 of the Higher Educa- 
Appropriation. 
tion Facilities Act of 1963 is amended by striking out "during the fiscal 20 use 711. 
year ending June 30, 1964, and each of the seven succeeding fiscal 
years.". 
(2) Subsection (b) of section 101 of such Act is amended by striking 
out so much of the first sentence thereof as follows "June 30,1968, and'' 
and inserting in lieu thereof "$936,000,000 for each of the succeeding 
fiscal years ending prior to July 1,1971.". 
(3) Subsection (b) of section 105 of such Act is amended (A) by 
20 use 715. 
striking out "two succeeding fiscal years" in the first sentence thereof 
and inserting in lieu thereof "four succeeding fiscal years", and (B) by 
striking out the last sentence of such subsection. 
(4) Section 103(b) (1) and section 104(b) (1) of such Act are each ^^20 use 713, 
amended by striking out the last sentence. 
(b) Section 201 of the Higher Education Facilities Act of 1963 is 
Appropriation. 
1 
1 
20 u s e 731 • 
amended— 
(1) in the first sentence, by striking out", during the fiscal year 
ending June 30, 1964, and each of the seven succeeding fiscal 
years,"; and 
(2) by striking out so much of the second sentence as follows 
"and the sum of $120,000,000" and inserting in lieu thereof "for 
each of the succeeding fiscal years ending prior to July 1, 1971.". 
(c) Subsection (c) of section 303 of the Higher Education Facili-
ties Act of 1963 is amended— 
20 use 743. 
(1) in the first sentence thereof by striking out ", during the 
fiscal year ending June 30, 1964, and each of the seven succeeding 
fiscal years,"; and 
(2) in the second sentence thereof by striking out so much of 
such sentence as follows "$400,000,000" and inserting in lieu 
thereof "for each of the succeeding fiscal years ending prior to 
July 1, 1971.". 
BROADENING EIJGIBILITY FOR CONSTRUCTION 
GRANTS 
SEC. 402. (a) Effective with respect to fiscal years ending on or 
after June 30, 1969— 
(1) Section 106 (1) and (2) of the Higher Education Facilities 
Act of 1963, as amended, is amended by inserting after "enrollment 
20 use 716. 
capacity" in each case the following: ", capacity to provide needed 
health care to students or personnel of the institution,". 
(2) The second sentence of section 107(a) of such Act is 
20 use 717. 
amended by striking out "and" before "(2)" and by inserting 
before the period at the end thereof the following: ", and (3) shall 
give consideration to expansion of capacity to provide needed 
health care to students and institutional personnel". 
(3)^ Section 108(b) of such Act is amended by striking out 
20 use 718. 
"and", at the end of paragraph (5), redesignating paragraph (6) 
as paragraph (7) and inserting after paragraph (5) the following: 
"(6) in the case of a project to construct an infirmary or other 
facility designed to provide primarily for outpatient care of stu-
dents and institutional personnel, he determines that no financial 
assistance will be provided such project under title IV of the Hous-
ing Act of 1950: and". 
1
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"
=
* 
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1749c. 
1060 
PUBLIC LAW 90.575-OCT. 16, 1968 
[82 STAT. 
20 use 743. 
^4^ Section 303 (a) is amended by striking out "and" at the end 
of clause (2), and by inserting before the period the following: 
", and (4) that, in the case of a project to construct an infirmary or 
other facility designed to provide primarily for outpatient care of 
students and institutional personnel, no financial assistance will be 
1749^^^ ^
^
"
^
^ 
provided such project under title IV of the Housing Act of 1950". 
20 use 751 • 
(5) The first sentence of section 401 (a) of such Act is amended 
by inserting before the period at the end thereof the following: 
"; and, for purposes of titles I and III, such term includes 
infirmaries or other facilities designed to provide primarily for 
outpatient care of students and institutional personnel". 
20 use 716. 
(b) (1) Section 106 of the Higher Education Facilities Act of 1963 is 
amended by inserting at the end thereof the following new sentence: 
"If the Commissioner finds that the student enrollment capacity of 
an institution would decrease if an urgently needed academic facility 
is not constructed, construction of such a facility may be considered, 
for the purposes of this section, to result in expansion of the institu-
tion's student enrollment capacity.". 
Effective date. 
^2) The amendment made by paragraph (1) of this subsection shall 
be effective only with respect to grants made from appropriations for 
fiscal years beginning after June 30,1969. 
ANNUAL INTEREST GRANTS 
20 use 741-745. 
g^c. 403. Title I I I of the Higher Education Facilities Act of 1963 
is amended by adding at the end thereof the following new section: 
(( 
ANNUAL INTEREST GRANTS 
"SEC. 306. (a) To assist institutions of higher education and higher 
education building agencies to reduce the cost of borrowing from other 
sources for the construction of academic facilities, the Commissioner 
may make annual interest grants to such institutions and agencies. 
"(b) Annual interest grants to an institution of higher education or 
higher education building agency with respect to any academic facility 
shall be made over a fixed period not exceeding forty years, and pro-
vision for such grants shall be embodied in a contract guaranteeing 
their payment over such period. Each such grant shall be m an amount 
not greater than the difference between (1) the average annual debt 
service which would be required to be paid, during the life of the 
loan, on the amount borrowed from other sources for the construction 
of such facilities, and (2) the average annual debt service which the in-
stitution would have been required to pay, during the life of the loan, 
with respect to such amounts if the applicable interest rate were the 
maximum rate specified in section 303 (b): Provided^ That the amount 
on which such grant is based shall be approved by the Secretary. 
"(c) (1) There are hereby authorized to be appropriated to the 
Commissioner such sums as may be necessary for the payment of 
annual interest grants to institutions of higher education and higher 
education building agencies in accordance with this section. 
"(2) Contracts for annual interest grants under this section shall 
not be entered into in an aggregate amount greater than is authorized 
in appropriation Acts; and in any event the total amount of annual 
interest grants which may be paid to institutions of higher educa-
tion and higher education building agencies in any year pursuant to 
contracts entered into under this section shall not exceed $5,000,000, 
which amount shall be increased by $6,760,000 on July 1, 1969, and 
by $13,500,000 on July 1,1970. 
"(d) Not more than 121,^ per centum of the funds provided for in 
this section for grants may be used within any one State. 
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
"(e) No annual interest grant pursuant to this section shall be made 
unless the Commissioner finds (1) that not less than 10 per centum of 
the development cost of the facility will be financed from non-Federal 
sources, (2) that the applicant is unable to secure a loan in the amount 
of the loan with respect to which the annual interest grant is to be made, 
from other sources upon terms and conditions equally as favorable as 
the terms and conditions applicable to loans under this title, and (3) 
that the construction will be undertaken in an economical manner and 
that it will not be of elaborate or extravagant design or materials. For 
purposes of this section, a loan with respect to which an interest grant 
IS made under this section shall not be considered financing from a non-
Federal source. For purposes of the other provisions of this Act, such 
a loan shall be considered financing from a non-Federal source." 
1061 
EXTENDING AUTHORIZATION FOR HIGHER EDUCATION FACILITIES 
CONSTRUCTION ASSISTANCE I N MAJOR DISASTER AREAS 
SEC. 404. Section 408(a) of the Higher Education Facilities Act of 
1963 is amended by striking out "July 1, 1967," and inserting in lieu 
thereof "July 1,1971,". 
20 u s e 758. 
INCREASING FEDERAL SHARE 
SEC. 405. (a) Sections 107(b) and 401(d) of the Higher Education 
Facilities Act of 1963 are each amended (1) by striking out "33i/^ per 
centum" and inserting in lieu thereof "50 per centum" and (2) by 
striking out "40 per centum" and inserting in lieu thereof "50 per 
centunr'. 
(b) Section 202 (b) of such Act is amended by striking out "3314 per 
centum" and inserting in lieu thereof "50 per centum". 
20 u s e 717,751. 
20 u s e 732. 
M I N I M U M TITLE I ALLOTMENTS TO STATES AND TERRITORIES 
SEC. 406. (a) Title I of the Higher Education Facilities Act of 1963 
is amended by inserting after the second sentence of section 103 and 
after the first sentence of section 104 the following: "The amount 
allotted to any State under the preceding sentence for any fiscal year 
which is less than $50,000 shall be increased to $50,000, the total of 
increases thereby required being derived by proportionately reducing 
the amount allotted to each of the remaining States under the preced-
ing sentence, but with such adjustments as may be necessary to prevent 
the allotment of any such remaining States from being thereby reduced 
to less than $50,000." 
(b) The amendments made by this section shall apply with respect 
to fiscal years ending on or after June 30, 1969. 
TITLE V—MISCELLANEOUS 
20 u s e 713,714. 
Effective date. 
EXTENSION OF PROGRAM OF FINANCIAL ASSISTANCE FOR STRENGTHENING 
INSTRUCTION I N T H E H U M A N I T I E S AND ARTS 
SEC. 501. (a) The first sentence of section 12 of the National Founda-
tion on the Arts and the Humanities Act of 1965 is amended (1) by 
striking out "two succeeding years" and inserting in lieu thereof "five 
succeeding fiscal years", and (2) by striking out all that follows 
"$500,000" and inserting in lieu thereof a period. 
(b) Such section is further amended, (1) in subsection (b), by strik-
ing out "allotted" and inserting in lieu thereof "reserved, allotted, 
and reallotted"; and (2) in subsection (f), by striking out "allot and". 
20 u s e 961. 
1062 
PUBLIC LAW 90-575-OCT. 16, 1968 
[82 STAT. 
20 u s e 1176. 
EXTENSION OF INTERNATIONAL EDUCATION ACT OF 1966 
SEC. 502. Section 105(a) of the International Education Act of 
1966 is amended by striking out "the fiscal year ending June 30,1969,"' 
and inserting in lieu thereof "each of the succeeding fiscal years end-
ing prior to July 1, 1971,". 
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use 2741. 
42 
use 
2740. 
AGE QUOTAS IN YOUTH WORK AND TRAINING PROGRAMS 
SEC. 503. Section 124 of the Economic Opportunity Act of 1964 is 
amended by adding at the end thereof the following: 
"(f) In the case of a program under section 123 (a) (1), the Director 
shall not limit the number or percentage of the participants in the pro-
gram who are fourteen or fifteen years of age." 
20 u s e 421-429. 
20 u s e 1061-
1069. 
20 u s e 1071-
1086; Ante, p. 
1020. 
Ante, p. 1028. 
20 u s e 1021-
1041, 1051-1055, 
1091-1119b-2; 
Ante, pp. 1038, 
1041. 
20 u s e 461-465, 
511-513. 
ELIGIBILITY FOR STUDENT ASSISTANCE 
SEC. 504. (a) If an institution of higher education determines, after 
affording notice and opportunity for hearing to an individual attend-
ing, or employed by, such institution, that such individual has been 
convicted by any court of record of any crime which was committed 
after the date of enactment of this Act and which involved the use of 
(or assistance to others in the use of) force, disruption, or the seizure of 
property under control of any institution of higher education to pre-
vent officials or students in such institution from engaging in their 
duties or pursuing their studies, and that such crime was of a serious 
nature and contriouted to a substantial disruption of the administra-
tion of the institution with respect to which such crime was committed, 
then the institution which such individual attends, or is employed by, 
shall deny for a period of two years any further payment to, or for 
the direct benefit of, such individual under any of the programs speci-
fied in subsection (c). If an institution denies an individual assistance 
under the authority of the preceding sentence of this subsection, then 
any institution which such individual subsequently attends shall deny 
for the remainder of the two-year period any further payment to, or 
for the direct benefit of, such individual under any of the programs 
specified in subsection (c). 
(b) If an institution of higher education determines, after affording 
notice and opportunity for hearing to an individual attending, or em-
ployed by, such institution, that such individual has willfully refused 
to obey a lawful regulation or order of such institution after the date 
of enactment of this Act, and that such refusal was of a serious nature 
and contributed to a substantial disruption of the administration of 
such institution, then such institution shall deny, for a period of two 
years, any further payment to, or for the direct benefit of, such in-
dividual under any of the programs specified in subsection (c). 
(c) The programs referred to in subsections (a) and (b) are as 
follows: 
(1) The student loan program under title I I of the National 
Defense Education Act of 1958. 
(2) The educational opportunity grant program under part A 
of title IV of the Higher Education Act of 1965. 
(3) The student loan insurance program under part B of title 
IV of the Higher Education Act of 1965. 
(4) The college work-study program under part C of title IV 
of the Higher Education Act of 1965. 
(5) Any fellowship program carried on under title II, III, or 
V of the Higher Education Act of 1965 or title IV or VI of the 
National Defense Education Act of 1958. 
(d) (1) Nothing in this Act, or any Act amended by this Act, shall 
be construed to prohibit any institution of higher education from re-
82 STAT. ] 
PUBLIC LAW 90-575-OCT. 16, 1968 
1063 
fusing to award, continue, or extend any financial assistance under any 
such Act to any individual because of any misconduct which in its 
judgment bears adversely on his fitness for such assistance. 
(2) Nothing in this section shall be construed as limiting or 
prejudicing the rights and prerogatives of any institution of higher 
education to institute and c,arry out an independent, disciplinary pro-
ceeding pursuant to existing authority, practice, and law. 
(3) Nothing in this section shall be construed to limit the freedom 
of any student to verbal expression of individual views or opinions. 
RULEMAKING REQUIREMENTS 
SEC. 505. No standard, rule, regulation, or requirement of general 
Publication in 
applicability prescribed for the administration of this Act or any Act ^^'^^'"^^ Register. 
amended by this Act may take effect until 30 days after it is published 
in the Federal Kegister. 
DUPLICATION OF BENEFITS 
SEC. 506. No grant, award, or loan of assistance to any student 
under any Act amended by this Act shall be considered a duplication 
of benefits for the purposes of section 1781 of title 38, United States 
C o d e . 
80 Stat. 21. 
FINANCIAL AID TO STUDENTS NOT TO BE TREATED AS INCOME OR RESOURCES 
UNDER CERTAIN PROGRAMS 
SEC. 507. For the purpose of any program assisted under title I, 
IV, X, XIV, XVI, or X I X of the Social Security Act, no grant or loan ^^^2 use 301, ^ 
to any undergraduate student for educational purposes made or insured 1381,1396. 
' 
under any program administered by the Commissioner of Education 
shall be considered to be income or resources. 
P R E S I D E N T I A L RECOMMENDATION WITH RESPECT TO POST-SECONDARY 
EDUCATION FOR ALL 
SEC. 508. On or before December 31,1969, the President shall submit 
to the Congress proposals relative to the feasibility of making avail-
able a post-secondary education to all young Americans who qualify 
and seek it. 
Approved October 16, 1968. 
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