An Act to amend title IV of the Higher Education Act of 1965 to increase the availability of assistance to middle-income students.
PL 95-566 (S.2539), enacted 11/01/1978

92 STAT. 2402 
PUBLIC LAW 95-566—NOV. 1, 1978 
Public Law 95-566 
95th Congress 
-••u|_ "..; 
Nov. 1. 1978 
[S. 2539] 
Middle Income 
Student 
Assistance 
Act 
20 use 1001 
note. 
Basic educational 
opportunity 
grants. 
20 use 1070a. 
An Act 
42 use 2751. 
To amend title IV of the Higher Education Act of 1965 to increase the avail-
ability of assistance to middle-income students. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America 
in Congress assembled^ That this Act may 
be cited as the "Middle Income Student Assistance Act". 
SEC. 2. (a) Section 411(a) (3) (B) of the Higjier Education Act of 
1965 (hereinafter in this Act referred to as the "Act") is amended by 
adding at the end thereof the following new division: 
"(iv) In determining the expected family contribution under this 
subparagraph for any academic year after academic year 1978-1979, 
an assessment rate of not more than 10,5 per centum shall be applied 
to parental discretionary income.". 
(b) Section 411(a) (3) (C) of the Act is amended by adding at the 
end thereof the following: "In addition, such regulations shall— 
"(i) provide that the portion of assets which shall be exempt 
from assessment for contribution for an independent student who 
has one or more dependents shall be the same as the portion so 
exempt for the family of a dependent student; 
" (ii) provide that the rate of assessment for contribution on that 
portion of assets of such an independent student which is not 
exempt under division (i) shall be the same as the rate applied to 
the comparable portion of assets of the family of a dependent 
student; and 
(iii) in establishing a portion of effective family income which 
shall be exempt from assessment for contribution by reason of 
subsistence requirements of independent students who have no 
dependents, use the same method for computation of such portion 
for such students as is used for dependent students and for inde-
pendent students who have dependents.". 
(c) Section 411(b) (3) (B) (i) is amended— 
(1) by redesignating subdivisions ( I I ) , ( H I ) , and (IV) as 
subdivisions (IV), (V),and (VI),respectively; and 
(2) by striking out subdivision (I) and inserting in lieu thereof 
the following: 
" ( I ) the full amount in the case of any entitlement which 
exceeds $1,600; 
" ( I I ) in the case of any entitlement which exceeds $1,200 
but does not exceed $1,600,90 per centum thereof; 
"(III) in the case of any entitlement which exceeds $1,000 
but does not exceed $1,200,75 per centum thereof;". 
(d) Section 411(b)(5) of the Act is amended to read as follows: 
"(5) No payment may be made on the basis of entitlements 
established under this subpart during the fiscal year ending 
September 30,1980, if, for such fiscal year— 
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" ( A ) the appropriation for making, grants under subpart 
2 of this part does not at least equal $370,000,000; 
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"(B) the appropriation for work-study payments under 
section 441 of this title does not at least equal $500,000,000; 
and 
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PUBLIC LAW 95-566—NOV. 1, 1978 
92 STAT. 2403 
20 use 1070C-2. 
20 use 1077. 
20 use 1078. 
ill it' 
"(C) the appropriation for capital contributions to student 
loan funds under part E of this title does not at least equal 
$286,000,000.". 
SEC. 3. Section 415C(b) (4) of the Act is amended by inserting before 
the semicolon at the end thereof a comma and the following: "except 
in any State in which participation of nonprofit institutions of higher 
education is in violation of the constitution of the State". 
SEC. 4. Section 417B(b) of the Higher Education Act of 1965 is 20USei070d-l. 
amended by inserting immediately after paragraph (5) the following 
new sentence: "No individual who is an eligible veteran, as that term 
is defined by section 1652(a) of title 38, United States Code, shall be 
deemed ineligible to participate in any program under this subsection 
by reason of such individual's age.". 
SEC. 5. (a) (1) Section 427(a) (2) (C) (i) of the Act is amended by 
striking out "or" and by inserting immediately after "Commissioner," 
the following: "or pursuant to a rehabilitation training program for 
disabled individuals approved by the Commissioner,". 
(2) Section 428(b) (1) (M) (i) of the Act is amended by striking out 
"or" and by inserting immediately after "Commissioner," the follow-
ing: "or pursuant to a rehabilitation training program for disabled 
individuals approved by the Commissioner,". 
(b) (1) Section 428 (a) (2) of the Act is amended— 
(A) by striking out subparagraphs (A) and (B) and inserting 
in lieu thereof the following: 
"(2) (A) Each student qualifying for a portion of an interest pay-
ment under paragraph (1) shall have provided to the lender a state-
ment from the eligible institution, at which the student has been 
accepted for enrollment, or at which he is in attendance in good stand-
ing (as determined by the institution), which— 
"(i) sets forth such student's estimated cost of attendance, and 
"(ii) sets forth such student's estimated financial assistance."; 
and 
(B) by redesignating subparagraph (C) as subparagraph (B) 
and bv striking out subparagraph (D). 
(2) Section 425(a) (1) (A) of the Act is amended by striking out 20 USe 1075. 
"section 428(a) (2)(C)(i)" and inserting in lieu thereof "section 428 
(a)(2)(B)(i)". 
(3) Section 428(a)(2)(B) of the Act (as redesignated by para-
graph (1)(A) of this subsection) is amended by striking out the 
semicolon at the end of clause (iii) and inserting in lieu thereof a 
period and by striking out clause (iv) of such section. 
(4) Section 428(a) of the Act is amended by striking out paragraph 
(9). 
(5) Section 428(b) (1) (A) (i) of the Act is amended by striking 
out "section 428(a) (2) (C) (i)" and inserting in lieu thereof "section 
428(a) (2) (B)(i)". 
SEC. 6. Section 491(b)(3) of the Act is amended by inserting 20 USC 1088. 
immediately after the first sentence thereof the following new sen-
tence : "Such term also includes a proprietary educational institution 
in any State which, in lieu of the requirement in clause (1) of section 
1201(a), admits as regular students persons who are beyond the age 20 USe 1141. 
of compulsory school attendance in the State in which the institution 
is located and who have the ability to benefit from the training offered 
by the institution.". 
92 STAT. 2404 
PUBLIC LAW 95-566—NOV. 1, 1978 
20 u s e 1088f. 
42 u s e 2751, 
20 u s e 1088. 
20USei070b-2. 
20 u s e 1087-3a. 
20 u s e 1070. 
Effective date. 
20 u s e 1070a 
note. 
SEC. 7. Section 497 of the Act is amended by adding after subsection 
(c) thereof the following new subsection: 
"(d) Any determinations of need made for the purposes of part C 
or part E of this title shall include considerations of the factor 
described in section 413C (a) (2) (v). Nothing in this subsection shall be 
deemed to prohibit the taking into account for the purposes of such 
parts of other factors used for the determination of need under other 
parts of this title.". 
SEC. 8. Part B of title IV of the Act is further amended by inserting 
after section 439A the following new section: 
"SEC. 439B. Any loan under this part may be counted as part of the 
expected family contribution in the determination of need for parts 
A, C, and E of this title, notwithstanding any other provisions of parts 
A,C,andE.". 
SEC. 9. The amendments made by this Act shall take effect upon 
enactment, except that the amendments made by subsections (a), (b), 
and (c), of section 2 shall be effective with respect to periods of enroll-
ment beginning on or after August 1,1979. 
Approved November 1, 1978. 
! ,. 
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LEGISLATIVE HISTORY: 
SENATE REPORT No. 95-643 (eomm. on Human Resources). 
eONGRESSIONAL REeORD, VoL 124 (1978): 
Aug. 15, 16, considered and passed Senate. 
Oct. 14, H.R. 11274 considered and passed House; passage vacated, and S. 2539, 
amended, passed in lieu. 
Oct. 15, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol 14, No. 44: 
Nov. 1, Presidential statement.