An Act to strengthen the educational resources of our colleges and universities and to provide financial assistance for students in post-secondary and higher education
PL 89-329 (H.R.9567), enacted 11/08/1965

79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1219 
Public Law 89-329 
A N A C T 
November s^ 1965 
To strengthen the educational resources of our colleges and universities and 
i • • -^ ] 
to provide financial assistance for students in postsecondary and higher 
education. 
Be it enacted hy the Senate and Bouse of Representatives 
of the 
United States of America in Congress assembled^ That this Act may ^^^^^^Y ^'^'"'^^' 
be cited as the "Higher Education Act of 1965". 
TITLE I—COMMUNITY SERVICE AND CONTINUING 
EDUCATION PROGRAMS 
AppROrRIATIONS AUTHORIZED 
SEC. 101. For the purpose of assisting the people of the United 
States in the solution of community problems such as housing, poverty, 
government, recreation, employment, youth opportunities, transporta-
tion, health, and land use by enabling the Commissioner to make 
grants under this title to strengthen community service programs of 
colleges and universities, there are authorized to be appropriated 
$35,000,000 for the fiscal year ending June 30, 1966, and $50,000,000 
for the fiscal year ending June 30, 1967, and for the succeeding fiscal 
year. For the fiscal year ending June 30, 1969, and the succeeding 
fiscal year, there may be appropriated, to enable the Commissioner to 
make such grants, only such sums as the Congress may hereafter 
authorize by law. 
DEFINITION o r COMMUNITY SERVICE PROGRAM 
SEC. 102. For purposes of this title, the term "community service 
program" means an educational program, activity, or service, includ-
ing a research program and a university extension or continuing 
education offering, which is designed to assist in the solution of com-
munity problems in rural, urban, or suburban areas, with particular 
emphasis on urban and suburban problems, where the institution 
offering such program, activity, or service determines— 
(1) that the proposed program, activity, or service is not other-
wise available, and 
(2) that the conduct of the program or performance of the 
activity or service is consistent with the institution's over-all edu-
cational program and is of such a nature as is appropriate to the 
effective utilization of the institution's special resources and the 
competencies of its faculty. 
Where course ofl'erings are involved, such courses must be university 
extension or continuing education courses and must be— 
(A) fully acceptable toward an academic degree, or 
(B) of college level as determined by the institution offering 
such courses. 
ALLOTMENTS TO STATES 
SEC. 103. (a) Of the sums appropriated pursuant to section 101 for 
each fiscal year, the Commissioner shall allot $25,000 each to Guam, 
American Samoa, the Commonwealth of Puerto Rico, and the Virgin 
Islands and $100,000 to each of the other States, and he shall allot to 
each State an amount which bears the same ratio to the remainder of 
such sums as the population of the State bears to the population of all 
States. 
(b) The amount of any State's allotment under subsection (a) for 
any fiscal year which the Commissioner determines will not be required. 
1220 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
for such fiscal year for carrying out the State plan (if any) approved 
under this title shall be available for reallotment from time to time, on 
such dates during such year as the Commissioner may fix, to other 
States in proportion to the original allotments to such States under 
such subsection for such year, but with such proportioHalte amount for 
any of such States being reduced to the extent it exceeds the sum the 
Commissioner estimates such State needs and will be able to use for 
such year for carrying out the State plan; and the total of such reduc-
tions shall be similarly reallotted among the States whose proportion-
ate amounts were not so reduced. 
Any amount reallotted to a State 
under this subsection during a year from funds appropriated pursuant 
to section 101 shall be deemed part of its allotment under subsection (a) 
for such year. 
(c) In accordance with regulations of the Commissioner, any State 
may file with him a request that a specified portion of its allotment 
under this title be added to the allotment of another State under this 
title for the purpose of meeting a portion of the Federal share of the 
cost of providing community service programs under this title. 
If it 
is found by the Commissioner that the programs with respect to which 
the request is made would meet needs of the State making the request 
and that use of the specified portion of such State's allotment, as 
requested by it, would assist in carrying out the purposes of this title, 
such portion of such State's allotment shall be added to the allotment 
of the other State under this title to be used for the purpose referred 
to above. 
(d) The population of a State and of all the States shall be deter-
mined by the Commissioner on the basis of the niost recent satisfactory 
data available from the Department of Commerce. 
USES OF ALLOTTED FUNDS 
SEC. 104. A State's allotment under section 103 may be used, in 
accordance with its State plan approved under section 105(b), to 
provide new, expanded, or improved community service programs. 
STATE 
PLANS 
SEC. 105. (a) Any State desiring to receive its allotment of Federal 
funds under this title shall designate or create a State agency or insti-
tution which has special qualifications w4th respect to solving com-
munity problems and which is broadly representative of institutions 
of higher education in the State which are competent to offer commu-
nity service programs, and shall submit to the Commissioner through 
the agency or institution so designated a State plan. 
If a State desires 
to designate for the purposes of this section an existing State agency 
or institution which does not meet these requirements, it may do so if 
the agency or institution takes such action as may be necessary to 
acquire such qualifications and assure participation of such institu-
tions, or if it designates or creates a State advisory council which 
meets the requirements not met by the designated agency or institution 
to consult with the designated agency or institution in the preparation 
of the State plan. A State plan submitted under this title shall be in 
such detail as the Commissioner deems necessary and shall— 
(1) provide that the agency or institution so designated or 
created shall be the sole agency for administration of the plan or 
for supervision of the administration of the plan; and provide 
that such agency or institution shall consult with any State 
advisory council required to be created by this section with respect 
to policy matters arising in the administration of such plan; 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1221 
(2) set forth a comprehensive, coordinated, and statewide sys-
tem of community service programs under which funds paid to 
the State (including funds paid to an institution pursuant to 
section 106(c)) under its allotments under section 103 will be 
expended solely for community service programs which have been 
approved by the agency or institution administering the plan; 
(3) set forth the policies and procedures to be followed in 
allocating Federal funds to institutions of higher education in the 
State, which policies and procedures shall insure that due con-
sideration will be given— 
(A) to the relative capacity and willingness of particular 
institutions of higher education (whether public or private) 
to provide effective community service programs; 
(B) to the availability of and need for community service 
programs among the population within the State; and 
(C) to the results of periodic evaluations of the programs 
carried out under this title in the light of information regard-
ing current and anticipated community problems in the 
State; 
(4) set forth policies and procedures designed to assure that 
Federal funds made available under this title will be so used as 
not to supplant State or local funds, or funds of institutions of 
higher education, but to supplement and, to the extent practicable, 
to increase the amounts of such funds that would in the absence 
of such Federal funds be made available for community service 
programs; 
(5) set forth such fiscal control and fund accounting procedures 
as may be necessary to assure proper disbursement of and account-
ing for Federal funds paid to the State (including such funds 
paid by the State or by the Commissioner to institutions of 
higher education) under this title; and 
(6) provide for making such reports in such form and contain- 
Records. 
ing such information as the Commissioner may reasonably 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 approve any State plan and any modi-
fication thereof w'hich complies with the provisions of subsection (a). 
PAYMENTS 
SEC. 106. (a) Except as provided in subsection (b), payment under 
this title shall be made to those State agencies and institutions which 
administer plans approved under section 105(b). 
Payments under 
this title from a State's allotment with respect to the cost of develop-
ing and carrying out its State plan shall equal 75 per centum of such 
costs for the fiscal year ending June 30, 1966, 75 per centum of such 
costs for the fiscal year ending June 30, 1967, and 50 per centum of 
such costs for each of the three succeeding fiscal years, except that no 
payments for any fiscal year shall be made to any State with respect 
to expenditures for developing and administering the State plan 
which exceed 5 per centum of the costs for that year for w^hich pay-
ment under this subsection may be made to that State, or $25,000, 
whichever is the greater. 
In determining the cost of developing and 
carrying out a State's plan, there shall be excluded any cost with respect 
to which payments were received under any other Federal program. 
1222 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
Opportunity for 
hearing. 
Noncompliance. 
72 Stat. 941. 
(b) No payments shall be made to any State from its allotments for 
any fiscal year unless and until the Commissioner finds that the institu-
tions of hig-her education which will participate in carrying out the 
State plan for that year will together have available during that year 
for expenditure from non-Federal sources for college and university 
extension and continuing education programs not less than the total 
amount actually expended by those institutions for college and univer-
sity extension and continuing education programs from such sources 
during the fiscal year ending June 30, 1965, plus an amount equal to 
not less than the non-Federal share of the costs with respect to which 
payment pursuant to subsection (a) is sought. 
(c) Payments to a State under this title may be made in install-
ments and in advance or by way of reimbursement with necessary 
adjustments on account of overpayments or underpayments, and they 
may be paid directly to the State or to one or more participating insti-
tutions of higher education designated for this purpose by the State, 
or to both. 
ADMINISTRATION OF STATE PLANS 
SEC. 107. (a) The Commissioner shall not finally disapprove any 
State plan submitted under this title, or any modification thereof, 
without first affording the State agency or institution submitting the 
plan reasonable notice and opportunity for a hearing. 
(b) Whenever the Commissioner, after reasonable notice and oppor-
tunity for hearing to the State agency or institution administering a 
State plan approved under section 105(b), finds that— 
(1) the State plan has been so changed that it no longer com-
plies with the provisions of section 105(a), or 
(2) in the administration of the plan there is a failure to com-
ply substantially with any such provision, 
the Commissioner shall notify the State agency or institution that the 
State will not be regarded as eligible to participate in the program 
under this title until he is satisfied that there is no longer any such 
failure to comply. 
JUDICIAL REVIEW 
SEC. 108. (a) If any State is dissatisfied with the Commissioner's 
final action with respect to the approval of its State plan submitted 
under section 105(a) or with his final action under section 107(b), 
such State may, within sixty days after notice of such action, file with 
the United States court of appeals for the circuit in which the State 
is located a petition for review of that action. A copy of the petition 
shall be forthwith transmitted by the clerk of the court to the Com-
missioner. 
The Commissioner thereupon shall file in the court the 
record of the proceedings on which he based his action, as provided in 
section 2112 of title 28, United States Code. 
(b) The findings of fact by the Commissioner, if supported by sub-
stantial evidence, shall be conclusive; but the court, for good cause 
shown, may remand the case to the Commissioner to take further evi-
dence, and the Commissioner may thereupon make new or modified 
findings of fact and may modify his previous action, and shall certify 
to the court the record of the further proceedings. 
Such new or modi-
fied findings of fact shall likewise be conclusive if supported by sub-
stantial evidence. 
(c) The court shall have jurisdiction to affirm the action of the 
Commissioner or to set it aside, in whole or in part. 
The judgment 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1223 
of the court shall be subject to review by the Supreme Court of the 
United States upon certiorari or certification as provided in section 
1254 of title 28, United States Code. 
^2 stat. 928. 
NATIONAL ADVISORY COUNCIL ON EXTENSION AND CONTINUING EDUCATION 
SEC. 109. (a) The President shall, within ninety days of enactment p^tsfdint""'"* ^^ 
of this title, appoint a National Advisory Council on Extension and 
Continuing Education (hereafter referred to as the "Advisory Coun-
cil"), consisting of the Commissioner, who shall be Chairman, one 
representative each of the Departments of Agriculture, Commerce, 
Defense, Labor, Interior, State, and Housing and Urban Development, 
and the Office of Economic Opportunity, and of such other Federal 
agencies having extension education responsibilities as the President 
may designate, and twelve members appointed, for staggered terms 
and without regard to the civil service laws, by the President. 
Such 
twelve members shall, to the extent possible, include persons knowl-
edgeable in the fields of extension and continuing education. State and 
local officials, and other persons having special knowledge, experience, 
or qualification with respect to community problems, and persons 
representative of the general public. The Advisory Council shall meet 
at the call of the Chairman but not less often than twice a year. 
(b) The Advisory Council shall advise the Commissioner in the Duties. 
preparation of general regulations and with respect to policy matters 
arising in the administration of this title, including policies and pro-
cedures governing the approval of State plans under section 105(b), 
and policies to eliminate duplication and to effectuate the coordination 
of programs under this title and other programs offering extension or 
continuing education activities and services. 
(c) The Advisory Council shall review the administration and effec- id^^t'anVc^'^^^" 
tiveness of all federally supported extension and continuing education gress.^" 
programs, including community service programs, make recommenda-
tions with respect thereto, and make annual reports commencing on 
March 31,1967, of its findings and recommendations (including recom-
mendations for changes in the provisions of this title and other Federal 
laws relating to extension and continuing education activities) to the 
Secretary and to the President. 
The President shall transmit each 
such report to the Congress together with his comments and 
recommendations. 
(d) Members of the Advisory Council who are not regular full- 
compensation. 
time employees of the United States shall, while serving on the busi-
ness of the Council, be entitled to receive compensation at rates fixed 
by the Secretary, but not exceeding $100 per day, including travel 
time; and, while so serving away from their homes or regular places 
of business, members may be allowed travel expenses, including per 
diem in lieu of subsistence, as authorized by section 5 of the Admin-
istrative Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in the 
so stat. sos; 
Government service employed intermittently. 
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(e) The Secretary shall engage such technical assistance as may be 
required to carry out the functions of the Advisory Council, and the 
Secretary shall, in addition, make available to the Advisory Council 
such secretarial, clerical, and other assistance and such pertinent 
data prepared by the Department of Health, Education, and Welfare 
as it may require to carry out its functions. 
{f\ In carrying out its functions pursuant to this section, the 
Advisory Council may utilize the services and facilities of any agency 
of the Federal Government, in accordance with agreements between 
the Secretary and the head of such agency. 
1224 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
RELATIONSHIP TO OTHER PROGRAMS 
SEC. 110. Nothing in this title shall modify authorities under the 
Act of February 23, 1917 (Smith-Hughes Vocational Education 
60 lilt ???• 
^ ^ * ) ' ^ amended (20 U.S.C. 11-15, 16-28); the Vocational Educa-
• 
• 
tion Act of 1946, as amended (20 U.S.C. 15i-15m, 15o-15q, 15aa-15jj, 
and 15aaa-15ggg); the Vocational Education Act of 1963 (20 U.S.C. 
7
7 Stat. 403. 
35-35n); title VIII of the Housing Act of 1964 (Public Law 88-
II M
«
o lnf«M 
'"^^O); or the Act of May 8, 1914 (Smith-Lever Act), as amended 
6? sta?. 1° 
(7 U.S.C. 341-348). 
LIMITATION 
SEC. 111. No grant may be made under this title for any educational 
program, activity, or service related to sectarian instruction or religious 
"School or de- 
worslilp, or provided by a school or department of divinity. 
For pur-
vfnit^!" ° ^' 
poses of this section, the term "school or department of divinity'' means 
an institution or a department or branch of an institution whose pro-
gram 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. 
TITLE I I - C O L L E G E LIBRAKY ASSISTANCE AND 
LIBRARY TRAINING AND RESEARCH 
PART A—COLLEGE LIBRARY RESOURC^ES 
APPROPRIATIONS 
AUTHORIZED 
SEC. 201. There are authorized to be appi-opriated $50,000,000 for 
the fiscal year ending June 30,1966, and for each of the two succeeding 
fiscal years, to enable the Commissioner to make grants under this part 
to institutions of higher education to assist and encourage such institu-
tions in the acquisition for library purposes of books, periodicals, docu-
ments, magnetic tapes, phonograph records, audiovisual materials, and 
other related library materials (including necessary binding). For 
the fiscal year ending June 30, 1969, and the succeeding fiscal year, 
there may be appropriated, to enable the Commissioner to make such 
grants, only such sums as the Congress may hereafter authorize by 
law. 
BASIC GRANTS 
SEC. 202. F'rom 75 per centum of the sums appropriated pursuant tx) 
section 201 for any fiscal year, the Commissioner is authorized to make 
basic grants for the purposes set forth in that section to institutions of 
higher education and combinations of such institutions. The amount 
of a basic grant shall not exceed $5,000 for each such institution of 
higher education and 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 Commis-
sioner, and a basic grant under this subsection may be made only if the 
application therefor is approved by the Commissioner upon his deter-
mination that the application (whether by an individual institution or 
a combination of institutions) — 
(a) provides satisfactory assurance that the applicant will 
expend during the fiscal year for which the grant is requested 
(from funds other than funds received under this part) for all 
library purposes (exclusive of construction) (1) an amount not 
tion. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1225 
less than the average annual amount it expended for such pur-
poses during the two-year period ending June 30,1965, and (2) an 
amount (from such other sources) equal to not less than the 
amount of such grant; 
(b) provides satisfactory assurance that the applicant will 
expend during the fiscal year for which the grant is requested 
(from funds other than funds received under this part) for books, 
periodicals, documents, magnetic tapes, phono^aph records, 
audiovisual materials, and other related materials (including 
necessary binding) for library purposes an amount not less than 
the average annual amount it expended for such materials during 
the tw^o-year period ending June 30, 1965; 
(c) provides 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 
section; and 
(d) 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 section, 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. 
SUPPLEMENTAL GRANTS 
SEC. 203. (a) From the remainder of such 75 per centum of the sums 
appropriated pursuant to section 201 for any fiscal year, plus any part 
of such sums as the Commissioner determines will not be used for 
making grants under section 204, the Commissioner is authorized to 
make supplemental grants for the purposes set forth in section 201 to 
institutions of higher education and combinations of such institutions. 
The amount of a supplemental grant shall not exceed $10 for each full-
time student (including the full-time equivalent of the number of part-
time students) enrolled in each such institution, as determined pursuant 
to regulations of the Commissioner. 
A supplemental grant may be 
made only upon application therefor, in such form and containing 
such information as the Commissioner may require, which application 
shall— 
(1) meet the application requirements set forth in section 202 
except for the matching requirement set forth in paragraph (a) 
(2) of that section: 
(2) describe the size and quality of the library resources of the 
applicant in relation to its present enrollment and any expected 
increase in its enrollment; 
(3) set forth any special circumstances which are impeding or 
will impede the proper development of its library resources; and 
(4) provide a general description of how a supplemental grant 
would be used to improve the size or quality of its library 
resources. 
(b) The Commissioner shall approve applications for supplemental 
grants on the basis of basic criteria prescribed in regulations and 
developed after consultation with the Council created under section 
205. 
Such basic criteria shall be such as will best tend to achieve the 
objectives of this part and they (1) may take into consideration factors 
such as the size and age of the library collection and student enroll-
ment, and (2) shall giv'e priority to institutions in need of financial 
n-^sistance for library purposes. 
49-850 0-66—80 
1226 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
SPECIAL PURPOSE GRANTS 
SEC. 204. (a)(1) Twenty-five per centum of the sums appropriated 
pursuant to section 201 for each fiscal year shall be used by the Com-
missioner in accordance with this subsection. 
(2) Of the sums available for use under paragraph (1) sixty per 
centum may be used to make special grants (A) to institutions of 
higher education which demonstrate a special need for additional 
library resources and which demonstrate that such additional library 
resources will make a substantial contribution to the quality of their 
educational resources, (B) to institutions of higher education to meet 
special national or regional needs in the library and information 
sciences, and (C) to combinations of institutions of higher education 
which need special assistance in establishing and strengthening joint-
use facilities. 
Grants under this section may be used only for books, 
periodicals, documents, magnetic tapes, phonograph records, audiovis-
ual materials, and other related library materials (including necessary 
binding). 
(3) Any sums available for use under paragraph (1) which are not 
used for the purposes of paragraph (2) shall be used in the manner 
prescribed by the first sentence of section 203(a). 
(b) Grants pursuant to paragraph (2) shall be made upon applica-
tion providing satisfactory assurance that (1) the applicant (or appli-
cants jointly in the case of a combination of institutions) will expend 
during the fiscal year for which the grant is requested (from funds 
other than funds received under this part) for the same purpose as such 
grant an amount from such other sources equal to not less than 3314 per 
centum of such grant, and (2) in addition each such applicant will 
expend during such fiscal year (from such other sources) for all library 
purposes (exclusive of construction) an amount not less than the 
average annual amount it expended for such purposes during the two-
year period ending June 30, 1965. 
ADVISORY COUNCIL ON COLLEGE LIBRARY RESOURCES 
SEC. 205. (a) The Commissioner shall establish in the Office of Edu-
cation an Advisory Council on College Library Resources consisting 
of the Commissioner, who shall be Chairman, and eight members 
appointed^ without regard to the civil service laws, by the Commissioner 
with the approval of the Secretary. 
^"*^^^- 
(b) The Advisory Council shall advise the Commissioner with 
respect to establishing criteria for the making of supplemental grants 
under section 203 and the making of special purpose grants under 
section 204. The Commissioner may appoint such special advisory and 
technical experts and consultants as may be useful in carrying out the 
functions of the Advisory Council. 
Members, com- 
/^\ Members of the Advisory Council, while serving on business of 
p e n s a t i o n . 
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the Advisory Council, shall receive compensation at a rate to be fixed 
by the Secretary, but not exceeding $100 per day, including travel 
time; and, while so serving 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 5 of the Administrative 
60 Stat. 808; 
Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in the Government 
service employed intermittently. 
ACCREDITATION REQUIREMENT FOR PURPOSES OF T H I S 
PART 
SEC. 206. For the purposes of this part, an educational institution 
shall be deemed to have been accredited by a nationally recognized 
accrediting agency or association if the Commissioner determines that 
75 Stat. 339, 340. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1227 
there is satisfactory assurance that upon acquisition of the library 
resources with respect to which assistance under this part is sought, or 
upon acquisition of those resources and other library resources planned 
to be acquired within a reasonable time, the institution will meet the 
accreditation standards of such agency or association. 
LIMITATION 
SEC. 207. No grant may be made under this part for books, peri-
odicals, documents, or other related materials to Ibe used for sectarian 
instruction or religious worship, or primarily in connection with any 
part of the program of a school or department of divinity. For pur- 
"schooi or de-
poses of this section, the term "school or department of divmity" means vfnit^^" 
an institution or a department or branch of an institution whose pro-
gram 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. 
CONSULTATIOSr WITH STATE AGENCY 
SEC. 208. Each institution of higher education which receives a 
grant under this part shall periodically inform the State agency (if 
any) concerned with the educational activities of all institutions of 
higher education in the State in which such institution is located, of 
its activities under this part. 
PART B—LIBRARY TRAINING AND RESEARCH 
APPROPRIATIONS AUTHORIZED 
SEC. 221. There are authorized to be appropriated $15,000,000 for 
the fiscal year ending June 30,1966, and for each of the two succeeding 
fiscal years, for the purpose of carrying out this part. For the fiscal 
year ending June 30,1969, and the succeeding fiscal year, there may be 
appropriated for such purpose only such sums as the Congress may 
hereafter authorize by law. 
5? 
DEFINITION o r "LIBRARIANSHIP 
SEC. 222. For the purposes of this part the term "librarianship" 
means the principles and practices of the library and information 
sciences, including the acquisition, organization, storage, retrieval, and 
dissemination of information, and reference and research use of library 
and other information resources. 
GRANTS FOR TRAINING IN LIBRARIANSHIP 
SEC. 223. (a) The Commissioner is authorized to make grants to 
institutions of higher education to assist them in training persons in 
librarianship. Such grants may be used by sudh institutions to assist 
in covering the cost of courses of training or study for such persons, 
and for establishing and maintaining fellowships or traineeships with 
stipends (including allowances for traveling, subsistence, and other 
expenses) for felloM^s and others undergoing training and their 
dependents not in excess of such maximum amounts as may be pre-
scribed by the Commissioner. 
(b) The Commissioner may make a grant to an institution of higher 
education only upon application by the institution and only upon his 
finding that such program will substantially further the objective of 
increasing the opportunities throughout the Nation for training in 
librarianship. 
1228 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
RESEARCH AND DEMONSTRATIONS RELATING TO LIBRARIES AND T H E 
TRAINING 
OF LIBRARY 
PERSONNEL 
SEC. 224. (a) The Commissioner is authorized to make grants to 
institutions of higher education and other public or private agencies, 
institutions, and organizations, for research and demonstration projects 
relating to the improvement of libraries or the improvement of train-
ing in librarianship, including the development of new techniques, 
systems, and equipment for processing, storing, and distributing infor-
mation, and for the dissemination of information derived from such 
research and demonstrations, and, without regard to section 3709' of 
the Revised Statutes (41 IJ.S.C. 5), to provide by contracts with them 
for the conduct of such activities; except that no such grant may be 
made to a private agency, organization, or institution other than a 
nonprofit one. 
Special advis- 
/^\ 'pj^g, Commissioner is authorized to appoint a special advisory 
appointment. ' 
Committee of not more than nine members to advise him on matters of 
general policy concerning research and demonstration projects relat-
ing to the improvement of libraries and the improvement of training 
in librarianship, or concerning special services necessary thereto or 
special problems involved therein. 
e'^s^t^^"' ''°"' 
(^) Members of the committee appointed under this section who 
are not regular full-time employees of the United States shall, while 
serving on the business of the committee, be entitled to receive com-
t
ensation at rates fixed by the Commissioner, but not in excess of 
100 per diem, including travel time; and they may, while so serving 
aw^ay from their homes or regular places of business, be allowed travel 
expenses, including per diem in lieu of subsistence, as authorized by 
60 Stat 808; 
scctlon 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 'r3b-2) 
; Stat 
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lor persons m the Cxovernment service employed intermittently. 
REPE^\LER 
75 Stat. 339, 340. 
78 Stat. 1107. 
20 u s e 591. 
SEC. 225. Effective July 1,1967, section 1101 of the National Defense 
Education Act of 1958 is amended by adding the word "or" at the end 
of clause (2), by strilnng out clause (3), and by renumbering clause 
(4) as clause (3). 
PART C—STRENG'THENING COLLEGE AND RESEARCH I^IBRARY RESOURCES 
APPROPRIATIONS AFTHORIZED 
SEC. 231. There are hereby authorized to be appropriated $5,000,000 
for the fiscal year ending June 30, 1966, $6,315,000 for the fiscal year 
ending June 30, 1967, and $7,770,000 for the fiscal year ending June 
30,1968, to enable the Commissioner to transfer funds to the Librarian 
of Ongress for the purpose of— 
(1) acquiring, so far as possible, all library materials cur-
rently published throughout the world wliicli are of value to 
scholarship; and 
(2) providing catalog information for these materials promptly 
after receipt, and distributing bibliographic information by 
printing catalog cards and by other means, and enabling the 
Library of Congress to use for exchange and other purposes such 
of these materials as are not needed for its own collections. 
For the fiscal year ending June 30, 1969, and the succeeding fiscal 
year, there may be appropriated, to enable the Commissioner to trans-
fer funds to the Librarian of Congress for such purpose, only such 
sums as the Ct^ngress may hereafter authorize by law. 
79 STAT, ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1229 
TITLE III—STRENGTHENING DEVELOPING 
INSTITUTIONS 
STATEMENT OF PURPOSE AND APPROPRIAITONS 
AUTHORIZED 
SEC. 301. (a) The purpose of this title is to assist in raising the 
academic quality of colleges which have the desire and potential to 
make a substantial contribution to the higher education resources of 
our Nation but which for financial and other reasons are struggling 
for survival and are isolated from the main currents of academic life, 
and to do so by enabling the Commissioner to establish a national 
teaching fellow^ program and to encourage and assist in the establish-
ment of cooperative arrangements under which these colleges may 
draw on the talent and experience of our finest colleges and univer-
sities, and on the educational resources of business and industry, in 
their effort to improve their academic quality. 
(b) (1) There is authorized to be appropriated the sum of $55,000,000 
for the fiscal year ending June 30, 1966, to carry out the provisions of 
this title. 
(2) Of the sums appropriated pursuant to this section for any fiscal 
year, 78 per centum shall be available only for carrying out the pro-
visions of this title with respect to developing institutions which plan 
to award one or more bachelor's degrees during such year. 
(3) The remainder of the sums so appropriated shall be available 
only for carrying out the provisions of this title with respect to devel-
oping institutions which do not plan to award such a degree during 
such year. 
DEFINITION o r 
"DEVELOPING 
INSTITUTION" 
SEC. 302. As used in this title the term "developing institution" 
means a public or nonprofit educational institution m any State 
which— 
(a) admits as regular students only persons having a certificate 
of graduation from a secondary school, or the recognized equiva-
lent of such certificate; 
(b) is legally authorized to provide, and provides within the 
State, an educational program for which it awards a bachelor's 
degree, or provides not less than a two-year program which is 
acceptable for full credit toward such a degree, or offers a two-
year program in engineering, mathematics, or the physical or 
biological sciences which is designed to prepare the student to 
work as a technician and at a semiprofessional level in engineer-
ing, scientific, or other technological fields which require the 
understanding and application of basic engineering, scientific, or 
mathematical principles of knowledge; 
(c) is accredited by a nationally recognized accrediting agency 
or association determined by the Commissioner to be reliable 
authority as to the quality of training offered or is, according to 
such an agency or association, making reasonable progress toward 
accreditation: 
(d) has met the requirements of clauses (a) and (b) during the 
five academic years preceding the academic year for which it seeks 
assistance under this title; 
(e) is making a reasonable effort to improve the quality of its 
teaching and administrative staffs and of its student services; 
(f) is, for financial or other reasons, struggling for survival 
and is isolated from the main currents of academic life; 
(g) meets such other requirements as the Commissioner may 
prescribe by regulation; and 
1230 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
(h) is not an institution, or department or branch of an insti-
tution, 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 theo-
logical subjects. 
ADVISORY COUNCIL ON DEVELOPING 
INSTITUTIONS 
Establishment. 
Duties. 
SEC. 303. (a) The Commissioner shall establish in the Office of 
Education an Advisory Council on Developing Institutions (herein-
after in this title referred to as the "Council"), consisting of the Com-
missioner who shall be Chairman, one representative each of such 
Federal agencies having responsibilities with respect to developing 
institutions as the Commissioner may designate, and eight members 
appointed, without regard to the civil service laws, by the Commis-
sioner with the approval of the Secretary. 
(b) The Council shall advise the Commissioner with respect to 
policy matters arising in the administration of this title and in par-
ticular shall assist the Commissioner in identifying those develop-
ing institutions through which the purposes of this title can best be 
achieved and in establishing priorities for use in approving applica-
tions under this title. The Commissioner may appoint such special 
advisory and technical experts and consultants as may be useful in 
carrying out the functions of the Coimcil. 
^^s'^tk)"' ''°"'' 
(^) Members of the Council who are not otherwise full-time 
employees of the United States shall, while serving on business of 
the Council, receive compensation at a rate to be fixed by the Secre-
tary, but not exceeding $100 per day, including travel time; and, 
while so serving away from their liomes or regular places of busi-
ness, members may be allowed travel expenses, including per diem 
in lieu of subsistence, as authorized by section 5 of the Administra-
75^staJ^339°?4o 
^^^^ Expeuses Act of 1946_ (5 U.S.C. 73b-2) for persons in the Gov-
ernment service employed intermittently. 
GRANTS FOR COOPERATIVE AGREEMENTS TO STRENGTHEN DEVELOPING 
INSTITTTTIONS 
SEC 304. (a) The Commissioner is authorized to make grants to 
developing institutions and other colleges and universities to pay part 
of the cost of planning, developing, and carrying out cooperative 
arrangements w^hich show promise as effective measures for strengthen-
ing the academic programs and the administration of developing insti-
tutions. 
Such cooperative arrangements may be between developing 
institutions, between developing institutions and other colleges and 
universities, and between developing institutions and organizations, 
^^®^- 
agencies, and business entities. 
Grants under this section may be used 
for projects and activities such as— 
(1) exchange of faculty or students, including arrangements 
for bringing visiting scholars to developing institutions; 
(2) faculty and administration improvement programs uti-
lizing training, education (including fellowships leading to 
advanced degrees), internships, research participation, and other 
means; 
(3) introduction of new curriculums and curricular materials: 
(4) development and operation of cooperative education pro-
grams involving alternate periods of academic study and business 
or public employment; 
Conditions. 
Record reten-
tion. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1231 
(5) joint use of facilities such as libraries or laboratories, 
including necessary books, materials, and equipment; and 
(6) other arrangements which offer promise of strengthening 
the academic programs and the administration of developing 
institutions. 
(b) A grant may be made under this section only upon application 
to the Commissioner at such time or times and containing such infor-
mation as he deems necessary. 
The Cktmmissioner shall not approve 
an application unless it— 
(1) sets forth a program for carrying out one or more projects 
or activities which meet the requirements of subsection (a) and 
provides for such methods of administration as are necessary for 
the proper and efficient operation of the program; 
(2) sets forth policies and procedures which assure that Fed-
eral funds made available under this section for any fiscal year 
will be so used as to supplement and, to the extent practical, 
increase the level of funds that would, in the absence of such 
Federal funds, be made available for purposes which meet the 
requirements of subsection (a), and in no case supplant such 
funds; 
(3) 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 
(4) 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. 
(c) The Commissioner shall, after consultation with the Council, 
establish criteria as to eligible expenditures for which grants made 
under this section may be used, which criteria shall be so designed as 
to prevent the use of such grants for expenditures not necessary to the 
cH'hievement of tlie purposes of this title. 
NATIONAL TEACHIN(} FELLOWSHIPS 
SEC. 805. (a) The Commissioner is authorized to award fellow-
ships under this section to highly qualified graduate students and 
junior members of the faculty of colleges and universities, to encourage 
such individuals to teach at developing institutions. The Commis-
sioner shall award fellowships to individuals for teaching at develop-
ing institutions only upon application by an institution approved for 
this purpose by the Commissioner and only upon a finding by the 
Commissioner that the program of teaching set forth in the applica-
tion is reasonable in the light of the qualifications of the teaching 
fellow and of the educational needs of the applicant. 
(b) Fellowships may be awarded under this section for such period 
stipends. 
of teaching as the Commissioner may determine, but such period shall 
not exceed two academic years. Each person awarded a fellowship 
imder the provisions of this section shall receive a stipend for each 
academic year of teaching of not more than $6,500 as determine by the 
Commissioner upon the advice of the Council, plus an additional 
amount of $400 for each such year on account of each of his dependents. 
1232 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
TITLE IV—STUDENT ASSISTANCE 
PART A—EDUCATIONAL OPPORTUNITY GRANTS 
STATEMENT OF PURPOSE AND APPROPRIATIONS AUTHORIZED 
SEC. 401. (a) It is the purpose of this part to provide, through 
institutions of higher education, educational opportunity grants to 
assist in making available the benefits of higher education to qualified 
high school graduates of exceptional financial need, who for lack of 
financial means of their own or of their families would be unable to 
obtain such benefits without such aid. 
(b) There are hereby authorized to be appropriated $70,000,000 for 
the fiscal year ending June 30,1966, and for each of the two succeeding 
fiscal years, to enable the Commissioner to make payments to institu-
tions of higher education that have agreements with him entered into 
under section 407, for use by such institutions for payments to under-
graduate students for the initial academic year of educational oppor-
tunity grants awarded to them under this part. For the fiscal year 
ending June 30, 1969 and for the succeeding fiscal year, there may be 
appropriated, to carry out the first sentence of this subsection, only 
such sums as the Congress may hereafter authorize by law. There are 
further authorized to be appropriated such sums as may be necessary 
for payment to such institutions for use by them for making educa-
tional opportunity grants under this part to undergraduate students 
for academic years other than the initial year of their educational 
opportunity grants; but no appropriation may be made pursuant to 
this sentence for any fiscal year beginning more than three years after 
the last fiscal year for which an appropriation is authorized under the 
first sentence. Sums appropriated pursuant to this subsection for any 
fiscal year shall be available for payment to institutions until the close 
of the fiscal year succeeding the fiscal year for which they were appro-
priated. For the purposes of this subsection, payment for the first 
year of an educational opportunity grant shall not be considered as an 
initial-year payment if the educational opportunity grant was awarded 
for the continuing education of a student who had been previously 
awarded an educational opportunity grant under this part (whether 
by another institution or otherwise) and had received payment for any 
year of that educational opportunity grant. 
AMOUNT OF EDUCATIONAL OPPORTUNITY GRANT—ANNUAL DETERMINATION 
SEC. 402. From the funds received by it for such purpose under this 
part, an institution of higher education which awards an educational 
opportunity grant to a student under this part shall, for the duration 
of the grant, pay to that student for each academic year during which 
he is in need of grant aid to pursue a course of study at the institution, 
an amount determined by the institution for such student with respect 
to that year, which amount shall not exceed— 
(1) the lesser of $800 or one-half of the sum of the amount of 
student financial aid (including assistance under this title, but 
excluding assistance from work-study programs) provided such 
student by such institution and any assistance provided such stu-
dent under any scholarship program established by a State or a 
private institution or organization, as determined in accordance 
with regulation of the Commissioner, or 
(2) in the case of a student who during the preceding academic 
year at an institution of higher education received grades placing 
him in the upper half of his class, the amount determined under 
paragraph (1), plus $200. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1233 
If the amount of the payment determined mider the preceding sentence 
for an academic year is less than $200 for a student, no payment shall 
be made under this title to that student for that year. 
The Commis-
sioner shall, subject to the foregoing limitations^ prescribe for the 
guidance of participating institutions basic criteria or schedules (or 
both) for the determination of the amount of any such educational 
opportunity grant, taking into account the objective of limiting grant 
aid under this part to students of exceptional financial need and such 
other factors, including the number of dependents in the family, as the 
Commissioner may deem relevant. 
DURATION OF EDUCATIONAL OPPORTUNITY GRANT 
SEC. 403. The duration of an educational opportunity grant awarded 
under this part shall be the period required for completion by the 
recipient of his undergraduate course of study at the institution of 
higher education from which he received the educational opportunity 
grant, except that such period shall not exceed four academic years 
less any such period with respect to which the recipient has previously 
received payments under this part pursuant to a prior educational 
opportunity grant (whether made by the same or another institution). 
An educational opportunity grant awarded under this part shall entitle 
Ihe recipient to payments only if he (1) is maintaining satisfactory 
progress in the course of study which he is pursuing, according to the 
regularly prescribed standards and practices of the institution from 
which he received the grant, and (2) is devoting essentially full time 
ro that course of study, during the academic year, in attendance at 
that institution. 
Failure to be in attendance at the institution during j^ia'^ar^'se/vice 
vacation periods or periods of military service, or during other periods etc. 
during which the Commissioner determines in accordance with regu-
lations that there is good cause for his nonattendance (during which 
periods he shall receive no payments) shall not be deemed contrary to 
clause (2). 
SELECTION OF RECIPIENTS OF EDUCATIONAL OPPORTUNITY GRANTS 
SEC. 404. (a) An individual shall be eligible for the award of an 
educational opportunity grant under this part at any institution of 
higher education which has made an agreement with the Commis-
sioner pursuant to section 407 (which institution is hereinafter in this 
part referred to as an "eligible institution"), if the individual makes 
application at the time and in the manner prescribed by that insti-
tution. 
(b) From among those eligible for educational opportunity grants 
from an institution of higher education for each fiscal year, the insti-
tution shall, in accordance with the provisions of its agreement with 
the Commissioner under section 407 and within the amount allocated 
to the institution for that purpose for that year under section 406, select 
individuals who are to be awarded such grants and determine, pur-
suant to section 402, the amounts to be paid to them. 
An institution 
shall not award an educational opportunity grant to an individual 
unless it determines that— 
(1) he has been accepted for enrollment as a full-time student 
at such institution or, in the case of a student already attending 
such institution, is in good standing and in full-time attendance 
there as an undergraduate student; 
(2) he shows evidence of academic or creative promise and 
capability of maintaining good standing in his course of study; 
(3) he is of exceptional financial need; and 
1234 
PUBLIC LAW 89-32Q-NOV. 8, 1965 
[79 STAT. 
(4) lie would not, but for an educational opportunity grant, be 
financially able to pursue a course of study at such institution of 
higher education. 
ALLOTMENT OF EDUCATIONAL OPPORTUNIITT GRANT FUNDS AMONG STATES 
SEC. 405. (a) (1) From the sums appropriated pursuant to the first 
sentence of section 401(b) for any fiscal year, the Commissioner shall 
allot to each State an amount which bears the same ratio to the amount 
so appropriated as the number of persons enrolled on a full-time basis 
in institutions of higher education in such State bears to the total 
number of persons enrolled on a full-time basis in institutions of 
higher education in all the States. 
The number of persons enrolled 
on a full-time basis in institutions of higher education for purposes 
of this section shall be determined by the Commissioner for the most 
recent year for which satisfactory data are available to him. 
(2) If the total of the sums determined by the Commissioner to be 
required under section 406 for any fiscal year for eligible institu-
tions in a State is less than the amount of the allotment to that State 
imder paragraph (1) for that year, the Commissioner may reallot 
the remaining amount from time to time, on such date or dates as 
he may fix, to other States in such manner as he determines will best 
assist in achieving the purposes of this part. 
(b) Sums appropriated pursuant to the third sentence of section 
401(b) for any fiscal year shall be allotted or reallotted among the 
States in such manner as the Commissioner determines to be necessary 
to carry out the purposes for which such sums are appropriated. 
ALLOCATION OF ALLOTIED FUNDS TO INSTITUTIONS 
SEC. 406. (a) The Commissioner shall from time to time set dates 
by which eligible institutions in any State must file applications for 
allocation, to such institutions, of educational opportunity grant funds 
from the allotment to that State (including any reallotment thereto) 
for any fiscal year pursuant to section 405(a), to be used for the pur-
poses specified in the first sentence of section 401 (b). Such allocations 
shall be made in accordance with equitable criteria which the Com-
missioner shall establish and which shall be designed to achieve such 
distribution of such funds among eligible institutions within a State 
as will most effectivelj carry out the purposes of this part. 
(b) The Commissioner shall further, in accordance with regula-
tions, allocate to eligible institutions, in any State, from funds appor-
tioned or reapportioned pursuant to section 405(b), funds to be used 
for the educational opportunity grants specified in the third sentence 
of section 401(b). 
(c) Payment shall be made from allocations under this section to 
institutions as needed. 
AGREEMENTS W I T H INSTITUTIONS 
CONDITIONS 
SEC. 407. (a) An institution of higher education which desires to 
obtain funds for educational opportunity grants under this part, shall 
enter into an agreement with the Commissioner. 
Such agreement 
shall— 
(1) provide that funds received by the institution under this 
part will be used by it only for the purposes specified in, and in 
accordance with, the provisions of this part,; 
(2) provide that in determining whether an individual meets 
the requirements of section 404(b) (3) the institution will (A) 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1235 
consider the source of such individual's income and that of any 
individual or individuals upon whom the student relies primarily 
for support, and (B) make an appropriate review of the assets 
of the student and of such individuals ; 
(3) provide that the institution, in cooperation with other 
institutions of higher education where appropriate, will make 
vigorous efforts to identify qualified youths of exceptional finan-
cial need and to encourage them to continue their education beyond 
secondary school through programs and activities such as— 
(A) establishing or strengthening close working relation-
ships with secondary-school principals and guidance and 
counseling personnel with a view toward motivating stu-
dents to complete secondary school and pursue post-second-
ary-school educational opportunities, and 
(B) making, to the extent feasible, conditional commit-
ments for educational opportunity grants to qualified sec-
ondary school students with special emphasis on students 
enrolled in grade 11 or lower grades who show evidences of 
academic or creative promise; 
(4) provide assurance that the institution will continue to 
spend in its own scholarship and student-aid program, from 
sources other than funds received under this part, not less than 
the average expenditure per year made for that purpose during 
the most recent period of three fiscal years preceding the effec-
tive date of the agreement; 
(5) include provisions designed to make educational oppor-
tunity grants under this part reasonably available (to the extent 
of available funds) to all eligible students in the institution in 
need thereof; and 
(6) include such other provisions as may be necessary to pro-
tect the financial interest of the LTnited States and promote the 
purposes of this part. 
(b) (1) An institution, which has in effect an agreement for Fed-
eral capital contributions for a student loan fund pursuant to title II 
of the National Defense Education Act of 1958, may use, as an addi- 
^^ sta^. ^^^_^^^^ 
tional Federal capital contribution for the purposes of such loan 
fund, not to exceed 25 per centum of the funds paid to it for any fiscal 
year ending prior to July 1, 1970, for the purpose set forth in sec-
tion 401 (b). 
The requirement in section 204(2) (B) of such Act shall 
not apply to such a Federal capital contribution. 
(2) For the purpose of making payments from amounts appropri-
ated pursuant to the third sentence of section 401(b), any institution 
electing for any fiscal year to use an amount of its payment as a Fed-
eral capital contribution pursuant to paragraph (1) shall be paid an 
equal amount for each of the succeeding three fiscal years from such 
amounts appropriated pursuant to such third sentence, if the amount 
so paid to the institution for each such year is used by such institution 
as such a Federal capital contribution. 
CONTRACTS TO ENCOURAGE FULL UTILIZATION OF EDUCATIONAL TALENT 
SEC. 408. (a) To assist in achieving the purposes of this part the 
Oommissioner is authorized (without regard to section 3709 of the 
Revised Statutes (41 U.S.C 5)), to enter into contracts, not to exceed 
^100,000 per year, with State and local educational agencies and other 
public or nonprofit organizations and institutions for the purpose of— 
(1) identifying qualified youths of exceptional financial need 
and encouraging them to complete secondary school and undertake 
postsecondary educational training, 
1236 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
(2) publicizing existing forms of student financial aid, includ-
ing aid furnished under this part, or 
(3) encouraging secondary-school or college dropouts of dem-
onstrated aptitude to reenter educational programs, including 
post-secondary-school programs. 
Appropriation. 
^|^^ There are hereby authorized to be appropriated such sums as 
may be necessary to carry out this section. 
DEFINITION o r "ACADEMIC Y E A R " 
SEC. 409. As used in this part, the term "academic year" means 
an academic year or its equivalent as defined in regulations of the 
Commissioner. 
PART B—FEDERAL, STATE, AND PRIVATE PROGRAMS OF LOW-INTEREST 
INSURED LOANS TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCA-
TION 
STATEMENT OF PURPOSE AND APPROPRIATIONS AUTHORIZED 
SEC. 421. (a) The purpose of this part is to enable the Commissioner 
(1) to encourage States and nonprofit private institutions and organi-
zations to establish adequate loan insurance programs for students in 
eligible institutions (as defined in section 435), (2) to provide a Fed-
eral program of student loan insurance for students who do not have 
reasonable access to a State or private nonprofit program of student 
loan insurance covered by an agreement under section 428 (b), and (3) 
to pay a portion of the interest on loans to qualified students which 
are made by a State under a, direct loan program meeting the require-
ments of section 428(a) (1) (B), or which are insured under this part 
or under a program of a State or of a nonprofit private institution or 
organization which meets the requirements of section 428(a) (1) (C). 
(b) For the purpose of carrying out this part— 
(1) there are authorized to be appropriated to the student loan 
insurance fund (established by section 431) (A) the sum of 
$1,000,000, and (B) such further sums, if any, as may become 
necessary for the adequacy of the student loan insurance fund, 
(2) there are authorized to be appropriated, for payments 
under section 428 with respect to interest on student loans, such 
sums for the fiscal year ending June 30, 1966, and succeeding 
fiscal years, as may be required therefor, and 
(3) there is authorized to be appropriated the sum of $17,500,000 
for making advances pursuant to section 422 for the reserve funds 
of State and nonprofit private student loan insurance programs. 
Sums appropriated under clauses (1) and (2) of this subsection shall 
remain available until expended, and sums appropriated under clause 
(3) of this subsection shall remain available for advances under sec-
tion 422 until the close of the fiscal year ending June 30, 1968. 
ADVANCES FOR RESERVE FUNDS OF STATE AND NONPROFIT PRIVATE LOAN 
INSURANCE 
PROGRAMS 
SEC. 422. (a)(1) From the sums appropriated pursuant to clause 
(3) of section 421 (b), the Commissioner is authorized to make advances 
to any State with which he has made an agreement pursuant to section 
428 (b) for the purpose of helping to establish or strengthen the reserve 
fund of the student loan insurance program covered by that agreement. 
If for any of the fiscal years ending June 30, 1966, June 30, 1967, or 
June 30,1968, a State does not have a student loan insurance program 
covered by an agreement made pursuant to section 428(b), and the 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1237 
Coimnissioner determines after consultation with the chief executive 
officer of that State that there is no reasonable likelihood that the State 
will have such a student loan insurance program for such year, the 
Commissioner may make advances for such year for the same purpose 
to one or more nonprofit private institutions or organizations with 
which he has made an agreement pursuant to section 428(b) in order 
to enable students in that State to participate in a program of student 
loan insurance covered by such an agreement. 
The Commissioner 
may make advances under this subsection both to a State program 
(with which he has such an agreement) and to one or more nonprofit 
private institutions or organizations (with which he has such an agree-
ment) in that State if he determines that such advances are necessary 
in order that students in each eligible institution have access through 
such institution to a student loan insurance program which meets the 
requirements of section 428 (b)(1). 
(2) Advances pursuant to this subsection shall be upon such terms 
and conditions (including conditions relating to the time or times of 
payment) consistent with the requirements of section 428(b) as the 
Commissioner determines will best carry out the purposes of this 
section. Advances made by the Commissioner under this subsection 
shall be repaid within such period as the Commissioner may deem to 
be appropriate in each case in the light of the maturity and solvency 
of the reserve fund for which the advance was made. 
(b) The total of the advances to any State pursuant to subsection 
(a) may not exceed an amount which bears the same ratio to 2i/2 per 
centum of $700,000,000 as the population of that State aged eighteen 
to twenty-two, inclusive, bears to the total population of all the States 
aged eighteen to twenty-two, inclusive. If the amount so determined 
for any State, however, is less than $25,000, it shall be increased to 
$25,000 and the total of the increases thereby required shall be derived 
by proportionately reducing (but not below $25,000) the amount so 
determined for each of the remaining States. Advances to nonprofit 
private institutions and organizations pursuant to subsection (a) may 
be in such amounts as the Commissioner determines will best achieve 
the purposes for wdiich they are made, except that the sum of (1) 
advances to such institutions and organizations for the benefit of 
students in any State plus (2) the amounts advanced to such State, 
may not exceed the maximum amount which may be advanced to that 
State pursuant to the first two sentences of this subsection. 
For the 
purposes of this subsection, the population aged eighteen 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. 
EFFECT OF ADEQUATE NON-FEDERAL PROGRAMS 
SEC. 423. The Commissioner shall not issue certificates of insurance 
under section 429 to lenders in a State if he determines that every 
eligible institution has reasonable access in that State to a State or 
private nonprofit student loan insurance program which is covered by 
an agreement imder section 428 (b). 
SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM 
SEC. 424. (a) The total principal amount of new loans made and 
installments paid pursuant to lines of credit (as defined in section 435) 
to students covered by Federal loan insurance under this part shall 
not exceed $700,000,000 in the fiscal year ending June 30, 1966, 
$1,000,000,000 in the 
fiscal 
year ending June 
30, 1967, and 
$1,400,000,000 in the fiscal year ending June 30, 1968. Thereafter, 
1238 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
Federal loan insurance pursuant to this part may be granted only for 
loans made (or for loan installments paid pursuant to lines of credit) 
to enable students, who have obtained prior loans insured under this 
part, to continue or complete their educational program; but no insur-
ance may be granted for any loan made or installment paid after June 
30,1972. 
(b) The Commissioner may, if he finds it necessary to do so in order 
to assure an equitable distribution of the benefits of this part, assign, 
Avithin the maximum amounts specified in subsection (a), Federal loan 
insurance quotas applicable to eligible lenders, or to States or areas, 
and may from time to time reassign unused portions of these quotas. 
LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND ON FEDERAL 
LOAN 
INSURANCE 
SEC. 425. (a) (1) The total of the loans made to a student in any 
academic year or its equivalent (as determined under regulations of the 
Commissioner) which may be covered by Federal loan insurance under 
this part may not exceed $1,500 in the case of a graduate or profes-
sional student (as defined in regulations of the Commissioner), or 
$1,000 in the case of any other student. 
The aggregate insured unpaid 
prinicpal amount of all such insured loans made to any student shall 
not at any time exceed $7,500 in the case of any graduate or profes-
sional student (as defined in regulations 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. 
The annual insurable limit per student shall not be deemed 
to be exceeded by a line of credit under which actual payments by the 
lender to the borrower will not be made in any year in excess of the 
annual limit. 
(2) If in any academic year or its equivalent a student receives a 
loan which is insured by the Commissioner under this part, no loan to 
that student in that year may be made or insured by the Commissioner 
under the National Vocational Student Loan Insurance Act of 1965; 
and if in any academic year or its equivalent a student receives a loan 
which is made or insured by the Commissioner under the National 
Vocational Student Loan Insurance Act of 1965, no loan to that stu-
dent in that year may be insured by the Commissioner under this part. 
(b) The insurance liability on any loan insured by the Commissioner 
under this part shall be 100 per centum of the unpaid balance of the 
principal amount of the loan. 
Such insurance liability shall not 
include liability for interest whether or not that interest has been 
added to the principal amount of the loan. 
SOURCES OF FUNDS 
SEC. 426. Loans made by eligible lenders in accordance with this 
part shall be insurable by the Commissioner whether made from funds 
fully owned by the lender or from funds held by the lender in a trust 
or similar capacity and available for such loans. 
E L I G I B I L I T Y O F S T U D E N T BORROWERS AND TERMS OF STUDENT LOANS 
SEC. 427. (a) A loan by an eligible lender shall be insurable by the 
Commissioner under the provisions of this part only if— 
(1) made to a student who (A) has been accepted for enroll-
ment at an eligible institution or, in the case of a student already 
attending such institution, is in good standing there as determined 
by the institution, and (B) is carrying at least one-half of the 
normal full-time workload as determined by the institution, and 
Ante, p. 1037. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1239 
(C) has provided the lender with a statement of the institution 
which sets forth a schedule of the tuition and fees applicable to 
that student and its estimate of the cost of board and room for 
such a student; and 
(2) evidenced by a note or other written agreement which— 
(A) is made without security and without endorsement, 
except that if the borrower is a minor and such note or other 
written agreement executed by him would not, under the 
applicable law, create a binding obligation, endorsement may 
be required, 
(B) provides for repayment (except as provided in sub-
section (c)) of the principal amount of the loan in install-
ments over a period of not less than five years (unless sooner 
repaid) nor more than ten years beginning not earlier than 
nine months nor later than one year after the date on which 
the student ceases to carry at an eligible institution at least 
one-half the normal full-time academic workload as deter-
mined by the institution, except (i) as provided in clause (C) 
below, (ii) that the period of the loan may not exceed fifteen 
years from the execution of the note or written agreement 
evidencing it and (iii) that the note or other written instru-
ment may contain such provisions relating to repayment in 
the event of default in the payment of interest or in the 
payment of the cost of insurance premiums, or other default 
by the borrower, as may be authorized by regulations of the 
Commissioner in effect at the time the loan is made, 
(C) provides that periodic installments of principal need 
not be paid, but interest shall accrue and be paid, during any 
period (i) during which the borrower is pursuing a full-
time course of study at an institution of higher education or 
at a comparable institution outside the States approved for 
this purpose by the Commissioner, (ii) not in excess of three 
years, during which the borrower is a member of the Armed 
Forces of the United States, or (iii) not in excess of three 
years during which the borrower is in service as a volunteer 
under the Peace Corps Act, and any such period shall not be 
75 stat. 612. 
included m determmmg the ten-year period or the fifteen- note. 
year period provided in clause (B) above, 
(D) provides for interest on the unpaid principal balance 
of the loan at a yearly rate, not exceeding the applicable 
maximum rate prescribed and defined by the Secretary 
(within the limits set forth in subsection (b)) on a national, 
regional, or other appropriate basis, which interest shall 
be payable in installments over the period of the loan except 
that, if provided in the note or other written agreement, 
any interest payable by the student may be deferred until 
not later than the date upon which repayment of the first 
installment of principal falls due, in which case interest 
that has so accrued during that period may be added on 
that date to the principal (but without thereby increasing 
the insurance liability under this part), 
(E) provides that the lender will not collect or attempt 
to collect from the borrower any portion of the interest 
on the note which is payable by the Commissioner under 
this part, 
(F) entitles the student borrower to accelerate without 
penalty repayment of the whole or any part of the loan, and 
(G) contains such other terms and conditions, consistent 
with tlie provisions of this part and with the regiilations 
1240 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
issued iby the Commissioner pursuant to this part, as may be 
agreed upon by the parties to such loan, including, if agreed 
upon, a provision requiring the borrower to pay to the lender, 
in addition to principal and interest, amounts equal to the 
insurance premiums payable by the lender to the Commis-
sioner with respect to such loan. 
(b) No maximum rate of interest prescribed and defined by the 
Secretary for the purposes of clause (2) (D) of subsection (a) may 
exceed 6 per centum per annum on the unpaid principal balance of the 
loan, except that under circumstances which threaten to impede the 
carrying out of the purposes of this part., one or more of such maxi-
mum rates of interest may be as high as 7 per centum per annum on 
t]ie unpaid principal balance of the loan. 
(c) The total of the payments by a borrower during any year of any 
repayment period with respect to the aggregate amount of all loans 
to that borrower which are insured by the Commissioner under this 
part, shall not be less than $360 or the balance of all of such loans 
(together with interest thereon), whichever amount is less. 
FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS 
SEC. 428. (a)(1) Each student who has received a loan for study at 
eligible institution— 
(A) which is insured by the Commissioner under this part; 
(B) which was made under a State student loan program 
(meeting criteria prescribed by the Commissioner), and w^hich 
was contracted for, and paid to the student, within the period 
specified by paragraph (4); or 
(C) which is insured under a program of a State or of a non-
profit private institution or organization, which was contracted 
for, and paid to the student, within the period specified in para-
graph (4), and which— 
(i) in the case of a loan insured prior to July 1,1967, was 
made by an eligible lender and is msured under a program 
w^hich meets the requirements of subparagraph (E) of sub-
section (b)(1) and provides that repayment or such loan shall 
be in installments beginning not earlier than sixty days after 
the student ceases to pursue a course of study (as described in 
subparagraph (D) of subsection (b) (1)) at an eligible insti-
tution, or 
(ii) in the case of a loan insured after June 30, 1967, is 
insured under a program covered by an agreement made pur-
suant to subsection (b), 
and whose adjusted family income is less than $15,000 at the time of 
execution of the note or written agreement evidencing such loan, shall 
be entitled to have paid on his behalf and for his account to the holder 
of the loan, over the period of the loan, a portion of the interest on the 
Adjusted family ]oan. FoT the purposes of this paragraph, the adjusted family income 
iron.'"^' ^ ^'™"'^- of a student shall be determined pursuant to regulations of the Com-
missioner in effect at the time of the execution of the note or written 
agreement evidencing the loan. 
Such regulations shall provide for 
taking into accoimt such factors, including family size, as the Commis-
sioner deems appropriate. 
In the absence of fraud by the lender, such 
determination of the adjusted family income of a student shall be final 
insofar as it concerns the obligation of the Commissioner to pay the 
holder of a loan a portion of the interest on the loan. 
(2) The portion of the interest on a loan which a student is entitled 
to have paid on his behalf and for his account to the holder of the 
loan pursuant to paragraph (1) shall be equal to the total amount 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1241 
of the interest on the unpaid principal amount of the loan which 
accrues prior to the beginning of the repayment period of the loan, 
and 3 per centum per annum of the unpaid principal amount of the 
loan (excluding interest which has been added to principal) there-
after ; but such portion of the interest on a loan shall not exceed, for 
any period, the amount of the interest on that loan which is payable 
by the student after taking into consideration the amount of any 
interest on that loan which the student is entitled to have paid on 
his behalf for that period under any State or private loan insurance 
program. 
The holder of a loan with respect to which payments are 
required to be made under this section shall be deemed to have a 
contractual right, as against the United States, to receive from the 
Commissioner the portion of interest which has been so determined. 
The Commissioner shall pay this portion of the interest to the holder 
of the loan on behalf of and for the account of the borrower at such 
times as may be specified in regulations in force when the applicable 
agreement entered into pursuant to subsection (b) was made, or if 
the loan was made by a State or is insured under a program which 
is not covered by such an agreement, at such times as may be specified 
in regulations in force at the time the loan was paid to the student. 
(3) Each holder of a loan with respect to which payments of inter-
est are required to be made by the Commissioner shall submit to the 
Commissioner, at such time or times and in such manner as he may 
prescribe, statements containing such information as may be required 
by or pursuant to regulation for the purpose of enabling the Commis-
sioner to determine the amount of the payment which he must make 
with respect to that loan. 
(4) The period referred to in subparagraphs (B) and (C) of para-
graph (1) of this subsection shall begin on the date of enactment 
of this Act and end at the close of June 30, 1968, 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, 1972. 
(5) No payment may be made under this section with respect to 
the interest on a loan made from a student loan fund established 
under title I I of the National Defense Education Act of 1958. 
^2 stat. issa. 
(6) In no event shall interest payments with respect to the same 429. 
student loan be made under both this section and under section 9 
of the National Vocational Student Loan Insurance Act of 1965. 
^"^*' P- '0"*^ 
(b)(1) Any State or any nonprofit private institution or orga- 
Agreements. 
nization may enter into an agreement with the Commissioner for the 
purpose of entitling students who receive loans which are insured 
under a student loan insurance program of that State, institution, or 
organization to have made on their behalf the payments provided for 
in subsection (a) if the Commissioner determines that the student 
loan insurance program— 
(A) authorizes the insurance of not less than $1,000 nor more 
than $1,500 in loans to any individual student in any academic 
year or its equivalent (as determined under regulations of the 
Commissioner) ; 
(B) authorizes the insurance of loans to any individual student 
for at least six academic years of study or their equivalent (as 
determined under regulations of the Commissioner) ; 
(C) provides that (i) the student borrower shall be entitled to 
accelerate without penalty the whole or any part of an insured 
loan, (ii) the period of any insured loan may not exceed fifteen 
years from the date of execution of the note or other written 
evidence of the loan, and (iii) the note or other written evidence 
49-850 0-66—81 
1242 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
of any loan may contain such provisions relating to repayment in 
the event of default by the borrower as may be authorized by 
regulations of the Commissioner in effect at the time such note or 
written evidence was executed; 
(D) subject to subparagraph (C), provides that, where the 
total of the insured loans to any student which are held by any 
one person exceeds $2,000, repayment of such loans shall be in 
installments over a period of not less than five years nor more 
than ten years beginning not earlier than nine months nor later 
than one year after the student ceases to pursue a full-time course 
of study at an eligible institution, except that if the program 
provides for the insurance of loans for part-time study at eligible 
institutions the program shall provide that such repayment period 
shall begin not earlier than nine months nor later than one year 
after the student ceases to carry at an eligible institution at least 
one-half the normal full-time academic workload as determined 
by the institution; 
(E) authorizes interest on the unpaid balance of the loan at a 
yearly rate not in excess of 6 per centum per annum on the unpaid 
principal balance of the loan (exclusive of any premium for insur-
ance which may be passed on to the borrower) ; 
(F) insures not less than 80 per centum of the unpaid principal 
of loans insured under the program; 
(G) does not provide for collection of an excessive insurance 
premium; 
(H) provides that the benefits of the loan insurance program 
will not be denied any student because of his family income or 
lack of need if his adjusted family income at the time the note or 
written agreement is executed is less than $15,000 (as determined 
pursuant to the regulations of the Commissioner prescribed under 
section 428(a)(1)); 
(I) provides that a student may obtain insurance under the pro-
gram for a loan for any year of study at an eligible institution; 
and 
(J) in the case of a State program, provides that such State 
program is administered by a single Stat« agency, or by one or 
more nonprofit private institutions or organizations under the 
supervision of a single State agency. 
(2) Such an agreement shall— 
(A) provide that the holder of any such loan will be required to 
submit to the Commissioner, at such time or times and in such 
manner as he may prescribe, statements containing such informa-
tion as may be required by or pursuant to regulation for the pur-
pose of enabling the Commissioner to determme the amount of the 
payment which he must make with respect to that loan; 
(B) include such other provisions as may be necessary to protect 
the financial interest of the United States and promote the pur-
poses of this part and as are agreed to by the Commissioner and 
the State or nonprofit private organization or institution, as the 
case may be; and 
(C) provide for making such reports in such form and con-
taining such information as the Commissioner may reasonably 
require to carry out his function under this part and for keeping 
such records and for affording such access thereto as the Com-
missioner may find necessary to assure the correctness and verifi-
cation of such reports. 
Conditions. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1243 
CERTIFICATES OF FEDERAL LOAN INSURANCE—EFFECTIVE DATE OF 
INSURANCE 
SEC. 429. (a) (1) If, upon application by an eligible lender, made 
upon such form, containing such information, and supported by such 
evidence as the Commissioner may require, and otherwise in conform-
ity with this section, the Commissioner finds that the applicant has 
made a loan to an eligible student which is insurable under the pro-
visions of this part, he may issue to the applicant a certificate of 
insurance covering the loan and setting forth the amount and terms of 
the insurance. 
(2) Insurance evidenced by a certificate of insurance pursuant to 
subsection (a) (1) shall become effective upon the date of issuance of 
fhe certificate, except that the Commissioner is authorized, in accord-
ance with regulations, to issue commitments with respect to proposed 
loans, or with respect to lines (or proposed lines) of credit, submitted 
by eligible lenders, and in that event, upon compliance with subsection 
(a)(1) by the lender, the certificate of insurance may be issued effec-
tive as of the date when any loan, or any payment by the lender pur-
suant to a line of credit, to be covered by such insurance was made. 
Such insurance shall cease to be effective upon sixty days' default by 
the lender in the payment of any installment of the premiums payable 
pursuant to subsection (c). 
(3) An application submitted pursuant to subsection (a) (1) shall 
contain (A) an agreement by the applicant to pay, in accordance with 
regulations, the premiums fixed by the Commissioner pursuant to sub-
section (c), and (B) an agreement by the applicant that if the loan is 
covered by insurance the applicant will submit such supplementary 
reports and statements during the effective period of the loan agree-
ment, upon such forms, at such times, and containing such informa-
tion as the Commissioner may prescribe by or pursuant to regulation. 
(b) (1) In lieu of requiring a separate insurance application and in^^^ce'T^run 
issuing a separate certificate of insurance for each student loan made cates. 
by an eligible lender as provided in subsection (a), the Commissioner 
may, in accordance with regulations consistent with section 424, issue 
to any eligible lender applying therefor a certificate of comprehensive 
insurance coverage which shall, without further action by the Com-
missioner, insure all insurable loans made by that lender, on or after 
the date of the certificate and before a specified cutoff date, within the 
limits of an aggregate maximum amount stated in the certificate. Such 
regulations may provide for conditioning such insurance, with respect 
to any loan, upon compliance by the lender with such requirements (to 
be stated or incorporated by reference in the certificate) as in the Com-
missioner's judgment will best achieve the purpose of this subsection 
while protecting the financial interest of the United States and pro-
moting the objectives of this part, including (but not limited to) 
provisions as to the reporting of such loans and information relevant 
thereto to the Commissioner and as to the payment of initial and other 
premiums and the effect of default therein, and including provision 
for confirmation by the Commissioner from time to time (through 
endorsement of the certificate) of the coverage of specific new loans by 
such certificate, which confirmation shall be incontestable by the Com-
missioner in the absence of fraud or misrepresentation of fact or patent 
error. 
(2). If the holder of a certificate of comprehensive insurance cover-
age issued under this subsection grants to a student a line of credit 
extending beyond the cutoff date specified in that certificate, loans or 
payments thereon made by the holder after that date pursuant to the 
line of credit shall not be deemed to be included in the coverage of that 
certificate except as may be specifically provided therein; but, subject 
Loan consolida-
I tion. 
1244 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
to the limitations of section 424, the Commissioner may, in accordance 
with regulations, make commitments to insure such future loans or 
payments, and such commitments may be honored either as provided 
m subsection (a) or by inclusion of such insurance in comprehensive 
coverage under this subsection for the period or periods in which such 
future loans or payments are made. 
(c) The Commissioner shall, pursuant to regulations, charge for 
insurance on each loan under this part a premium in an amount not 
to exceed one-fourth of 1 per centum per year of the unpaid principal 
amount of such loan (excluding interest added to principal), payable 
in advance, at such times and in such manner as may be prescribed 
by the Commissioner. 
Such regulations may provide that such 
premium shall not be payable, or if paid shall be refundable, with 
respect to any period after default in the payment of principal or 
interest or after the borrower has died or becomes totally and perma-
nently disabled, if (1) notice of such default or other event has been 
duly given, and (2) request for payment of the loss insured against 
has been made or the Commissioner has made such payment on his 
own motion pursuant to section 430(a). 
(d) The rights of an eligible lender arising under insurance evi-
denced by a certificate of insurance issued to it under this section 
may be assigned as security by such lender only to another eligible 
lender, and subject to regulation by the Commissioner. 
(e) The consolidation of the obligations of two or more federally-
insured loans obtained by a student borrower in any fiscal year into a 
single obligation evidenced by a single instrument of indebtedness 
shall not affect the insurance by the United States. If the loans thus 
consolidated are covered by separate certificates of insurance issued 
under subsection (a), the Commissioner may upon surrender of the 
original certificates issue a new certificate of insurance in accordance 
with that subsection upon the consolidated obligation; if they are 
covered by a single comprehensive certificate issued under subsection 
(b), the Commissioner may amend that certificate accordingly. 
DEFAULT, 
DEATH, 
OR DISABILITY 
OF 
STUDENT 
UNDER 
FEDERAL 
LOAN 
INSURANCE 
PROGRAM 
SEC. 430. (a) Upon default by the student borrower on any loan 
covered by Federal loan insurance pursuant to this part, or upon the 
death of the student borrower or a finding by the insurance beneficiary 
that the borrower has become totally and permanently disabled (as 
determined in accordance with regulations established by the Com-
missioner) before the loan has been repaid in full, and prior to the 
commencement of suit or other enforcement proceeding upon security 
for that loan, the insurance beneficiary shall promptly notify the Com-
missioner, and the Commissioner shall if requested (at that time or 
after further collection efforts) by the beneficia.ry, or may on his own 
motion, if the insurance is still m effect, pay to the beneficiary the 
amount of the loss sustained by the insured upon that loan as soon as 
Amount of the ^}^Q^l amouut has been determined. 
The "amount of the loss" on any 
loan shall, for the purposes of this subsection and subsection (b), be 
deemed to be an amount equal to the unpaid balance of the principal 
amount of the loan (other than interest added to principal). 
(b) Upon payment by the Commissioner of the amount of the loss 
pursuant to subsection (a,), the United States shall be subrogated to 
all of the rights of the holder of the obligation upon the insured loan 
and shall be entitled to an assignment of the note or other evidence of 
the insured loan by the insurance beneficiary. 
If the net recovery 
made by the Commissioner on a loan after deduction of the cost of 
loss. 
Insurance bene-
ficiary,' 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1245 
that recovery (including reasonable administrative costs) exceeds the 
amount of the loss, the excess shall be paid over to the insured. 
(c) Nothing in this section or in this part shall be construed to 
preclude any forbearance for the benefit of the student borrower which 
may be agreed upon by the parties to the insured loan and approved 
by the Commissioner, or to preclude forbearance by the Commissioner 
in the enforcement of the insured obligation after payment on that 
insurance, or to require collection of the amount of any loan by the 
insurance beneficiary or by the Commissioner from the estate of a 
deceased borrower or from a borrower found by the insurance bene-
ficiary to have become permanently and totally disabled. 
(d) Nothing in this section or m this part shall be construed to 
excuse the holder of a federally insured loan from exercising reason-
able care and diligence in the making and collection of loans under the 
provisions of this part. If the Commissioner, after reasonable notice 
and opportunity for hearing to an eligible lender, finds that it has 
substantially failed to exercise such care and diligence or to make the 
reports and statements required under section 428(a) (3) and section 
429(a) (3), or to pay the required Federal loan insurance premiums, 
he shall disqualify that lender for further Federal insurance on loans 
granted pursuant to this part until he is satisfied that its failure has 
ceased and finds that there is reasonable assurance that the lender will 
in the future exercise necessary care and diligence or comply with such 
requirements, as the case may be. 
(e) As used in this section— 
(1) the term "insurance beneficiary" means the insured or its 
authorized assignee in accordance with section 429(d); and 
(2) the term "default" includes only such defaults as have 
"Default." 
existed for (A) one hundred and twenty days in the case of a loan 
which is repayable in monthly installments, or (B) one hundred 
and eighty days in the case of a loan which is repayable in less 
frequent installments. 
INSURANCE FUND 
SEC. 431. (a) There is hereby established a student loan insurance 
Establishment. 
fund (hereinafter in this section called the "fund") which shall be 
available without fiscal year limitation to the Commissioner for mak-
ing payments in connection with the default of loans insured by him 
under this part. All amounts received by the Commissioner as pre-
mium charges for insurance and as receipts, earnings, or proceeds 
derived from any claim or other assets acquired by the Commissioner 
in connection with his operations under this part, and any other 
moneys, property, or assets derived by the Commissioner from his 
operations in connection with this section, shall be deposited in the 
fund. 
All payments in connection with the default of loans insured 
by the Conunissioner under this part shall be paid from the fund. 
Moneys in the fund not needed for current operations under this 
section may be invested in bonds or other obligations guaranteed as 
to principal and interest by the United States. 
(b) If at any time the moneys in the fund are insufficient to make „^"^^/''''^"* 
payments in connection with the default of any loan insured by the 
Commissioner under this part, the Commissioner is authorized to issue 
to the Secretary of the Treasury notes or other obligations in such 
forms and denominations, bearing such maturities, and subject to such 
terms and conditions as may be prescribed by the Commissioner with 
the approval of the Secretary or the Treasury. 
Such notes or other 
obligations shall bear interest at a rate determined by the Secretary 
of the Treasury, taking into consideration the current average market 
yield on outstanding marketable obligations of the United States of 
moneys. 
1246 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
comparable maturities during the montli preceding the issuance of the 
notes or other obligations. 
The Secretary of the Treasury is author-
ized and directed to purchase any notes and other obligations issued 
hereunder and for that purpose he is authorized to use as a public debt 
transaction the proceeds from the sale of any securities issued under 
Ti us^c 7
^
7
^
4
" 
^^^ Second Liberty Bond Act, as amended, and the purposes for which 
securities may be issued under that Act, as amended, are extended to 
include any purchases of such notes and obligations. The Secretary of 
the Treasury may at any time sell any of the notes or other obligations 
acquired by him under this subsection. 
All redemptions, purchases, 
and sales by the Secretary of the Treasury of such notes or other 
obligations shall be treated as public debt transactions of the United 
States. 
Sums borrowed under this subsection shall be deposited in 
the fund and redemption of such notes and obligations shall be made 
by the Commissioner from such fund. 
LEGAL POWERS AND RESPONSIBILITIES 
SEC. 432. (a) In the performance of, and with respect to, the func-
tions, powers, and duties vested in him by this part, the Commissioner 
may— 
(1) prescribe such regulations as may be necessary to carry out 
the purposes of this part; 
(2) sue and be sued in any court of record of a State having 
general jurisdiction or in any district court of the United States, 
and such district courts shall have jurisdiction of civil actions 
arising under this part without regard to the amount in contro-
versy, and any action instituted under this subsection by or against 
the Commissioner shall survive notwithstanding any change in 
the person occupying the office of Commissioner or any vacancy 
in that office; but no attachment, injunction, garnishment, or other 
similar process, mesne or final, shall be issued against the Commis-
sioner or property under his control, and nothing herein shall be 
construed to except litigation arising out of activities under this 
part from the application of sections 507(b) and 2679 of title 28 
62 Stat. 910, 
of the United States Code and of section 367 of the Revised 
984; 75 Stat. 539. 
statutcs (5 U.S.C. 316) ; 
(3) include in any contract for Federal loan insurance such 
terms, conditions, and covenants relating to repayment of prin-
cipal and payment of interest, relating to his obligations and 
rights and to those of eligible lenders, and borrowers in case of 
default, and relating to such other matters as the Commissioner 
determines to be necessary to assure that the purposes of this part 
will be achieved; and any term, condition, and covenant made 
pursuant to this clause or any other provisions of this part may 
be modified by the Commissioner if he determines that modifica-
tion is necessary to protect the financial interest of the United 
States; 
(4) subject to the specific limitations in this part, consent to the 
modification, with respect to rate of interest, time of payment of 
any installment of principal and interest or any portion thereof, 
or any other provision of any note or other instrument evidencing 
a loan which has been insured by him under this part; 
(5) enforce, pay, or compromise, any claim on, or arising 
because of, any such insurance; and 
(6) enforce, pay, compromise, waive, or release any right, title, 
claim, lien, or demand, however acquired, including any equity 
or any right or redemption. 
79 STAT.] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1247 
(b) The Commissioner shall, with respect to the financial opera-
tions arising by reason of this part— 
(1) prepare annually and submit a budget program as pro-
vided for wholly owned Government corporations by the Gov-
ernment Corporation Control Act; and 
(2) maintain with respect to insurance under this part an 
integral set of accounts, which shall be audited annually by the 
General Accounting Office in accordance with principles and 
procedures applicable to commercial corporate transactions, as 
provided by section 105 of the Government Corporation Control 
Act, except that the transactions of the Commissioner, including 
the settlement of insurance claims and of claims for payments 
pursuant to section 428, and transactions related thereto and 
vouchers approved by the Commissioner in connection with 
such transactions, shall be final and conclusive upon all account-
ing and other officers of the Government, 
59 Stat. 59 7. 
3 1 u s e 841 note. 
GAO audit. 
ADVISORY COUNCIL ON INSURED LOANS TO STUDENTS 
SEC. 433. (a) The Secretary shall establish in the Office of Educa-
tion an Advisory Council on Insured Loans to Students, consisting 
of the Commissioner, who shall be Chairman, and eight members 
appointed, without regard to the civil service laws, by the Secretary, 
The membership of the Council shall include persons representing 
State loan insurance programs, private nonprofit loan insurance 
programs, financial and credit institutions, and institutions of higher 
education. 
(b) The Advisory Council shall advise the Commissioner with 
respect to policy matters arising in the administration of this part, 
including policies and procedures governing the making of advances 
under section 422 and the Federal payments to reduce student interest 
costs under section 428. 
(c) Members of the Advisory Council who are not regular full-time 
employees of the United States shall, while serving on the business of 
the Council, be entitled to receive compensation at rates fixed by the 
Secretary, but not exceeding $100 per day. including travel time; and, 
while so serving away from their homes or regular places of business, 
members may be allowed travel expenses, including per diem in lieu 
of subsistence, as authorized by section 5 of the Administrative 
Expenses Act of 1946 (5 U.S.C, 73b-2) for persons in the Government 
service employed intermittently. 
Establishment. 
Compensation. 
60 Stat, 808; 
75 Stat. 339, 340. 
PARTICIPATION BY FEDERAL CREDIT UNIONS I N FEDERAL, STATE, AND 
PRIVATE STUDENT LOAN INSURANCE PROGRAMS 
SEC, 434, Notwithstanding any other provision of law. Federal 
credit unions shall, pursuant to regulations of the Director of the 
Bureau of Federal Credit Unions, have power to make insured loans 
up to 10 per centum of their assets, to student members in accordance 
with the provisions of this part relating to federally insured loans, or 
in accordance with the provisions of any State or nonprofit private 
student loan insurance program which meets the requirements of sec-
tion 428(a) (1) (C), 
DEFINITIONS FOR REDUCED-INTEREST STUDENT LOAN INSURANCE 
PROGRAM 
SEIC, 435, As used in this part: 
(a) The term "eligible institution"' means an educational institu-
tion in any State which (1) admits as regular students only persons 
1248 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
having a certificate of graduation from a school providing secondary 
education, or the recognized equivalent of such certificate, (2) is 
legally authorized within such State to provide a program of educa-
tion beyond secondary education, (3) provides an educational pro-
gram for which it awards a bachelor's degree or provides not less than 
a two-year program which is acceptable for full credit toward such 
a degree, (4) is a public or other nonprofit institution, and (5) is 
accredited by a nationally recognized accrediting agency or associ-
ation approved by the Commissioner for this purpose or, if not so 
accredited, (A) is an institution with respect to which the Commis-
sioner has determined that there is satisfactory assurance, considering 
the resources available to the institution, the period of time, if any, 
during which it has operated, the effort it is making to meet accredita-
tion standards, and the purpose for which this determination is being 
made, that the institution will meet the accreditation standards of 
such an agency or association within a reasonable time, or (B) is an 
institution whose credits are accepted on transfer by not less than 
three institutions which are so accredited, for credit on the same basis 
as if transferred from an institution so accredited. 
Such term also 
includes any public or other nonprofit collegiate or associate degree 
school of nursing and any school which provides not less than a one-
year program of training to prepare students for gainful employment 
in a recognized occupation and which meets the provisions of clauses 
(1), (2), (4), and (5). If the Commissioner determines that a par-
ticular category of such schools does not meet the requirements of 
clause (5) because there is no nationally recognized accrediting agency 
or association qualified to accredit schools in such category, he shall, 
pending the establishment of such an accrediting agency or association, 
appoint an advisory committee, composed of persons specially quali-
fied to evaluate training provided by schools in such category, which 
shall (i) prescribe the standards of content, scope, and quality which 
must be met in order to qualify schools in such category to participate 
in the program pursuant to this part, and (ii) determine whether 
particular schools not meeting the requirements of clause (5) meet 
those standards. 
For purposes of this subsection, the Commissioner 
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. 
(b) The term "collegiate school of nursing" means a department, 
division, or other administrative unit in a college or university which 
provides primarily or exclusively an accredited program of education 
m professional nursing and allied subjects leading to the degree of 
bachelor of arts, bachelor of science, bachelor of nursing, or to an 
equivalent degree, or to a graduate degree in nursing. 
(c) The term "associate degree school of nursing" means a depart-
ment, division, or other administrative unit in a junior college, com-
munity college, college, or university which provides primarily or 
exclusively an accredited two-year program of education in prof^-
sional nursing and allied subjects leading to an associate degree in 
nursing or to an equivalent degree. 
(d) The term "accredited" when applied to any program of nurse 
education means a program accredited by a recognized body or bodies 
approved for such purpose by the Commissioner of Education. 
(e) The term "eligible lender" means an eligible institution, an 
agency or instrumentality of a State, or a financial or credit institution 
(including an insurance company) which is subject to examination and 
supervision by an agency of the United States or of any State. 
(f) The term "line of credit" means an arrangement or agreement 
between the lender and the borrower whereby a loan is paid out by the 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1249 
lender to the borrower in annual installments, or whereby the lender 
agrees to make, in addition to the initial loan, additional loans in 
subsequent years. 
PART C—COLLEGE WORK-STUDY PROGRAM EXTENSION AND 
AMENDMENTS 
TRANSFER OF AUTHORITY AND OTHER AMENDIVIENTS 
SEC. 441. Parts C and D of title I of the Economic Opportunity Act 
of 1964 (Public Law 88-452) are amended as follows: 
(1) By striking out "Director" in the first sentence of section 
122(a) and inserting in lieu thereof "Commissioner of Education 
^^ sm. su^ 
(hereinafter in this part referred to as the 'Commissioner')", and 
by striking out "Director" wherever that word appears in the 
other provisions of such part C and inserting in lieu thereof 
"Commissioner"; 
(2) By amending that part of section 121 that follows the sec- 
-
^
^ use 2751. 
tion designation to read as follows: "The purpose of this part is 
to stimulate and promote the part-time employment of students, 
particularly students from low-income families, in institutions of 
higher education who are in need of the earnings from such em-
ployment to pursue courses of study at such institutions."; 
(3) By striking out section 123 and inserting in lieu.thereof 
the following: 
"GRANTS FOR WORK-STUDY PROGRAMS 
"SEC. 123. (a) The Commissioner is authorized to enter into agree-
ments with institutions of higher education under which the Commis-
sioner will make grants to such institutions to assist in the operation 
of work-study programs as hereinafter provided. 
"(b) For the purposes of this part— 
Definitions. 
"(1) The term 'institution of higher education' means an educa-
tional institution in any State which (A) admits as regular students 
only persons having a certificate of graduation from a school provid-
ing secondary education, or the recognized equivalent of such certifi-
cate, (B) is legally authorized within such State to provide a program 
of education beyond secondary education, (C) provides an educational 
program for which it awards a bachelor's degree or provides not less 
than a two-year program which is acceptable for full credit toward 
such a degree, (D) is a public or other nonprofit institution, and (E) 
is accredited by a nationally recognized accrediting agency or associa-
tion approved by the Commissioner for this purpose or, if not so 
accredited, (i) is an institution with respect to which the Commis-
sioner has determined that there is satisfactory assurance, considering 
the resources available to the institution, the period of time, if any, 
during which it has operated, the effort it is making to meet accredita-
tion standards, and the purpose for which this determination is being 
made, that the institution will meet the accreditation standards of 
such an agency or association within a reasonable time, or (ii) is an 
institution whose credits are accepted on transfer by not less than three 
institutions which are so accredited, for credit on the same basis as if 
transferred from an institution so accredited. 
Such term also includes 
any public or other nonprofit collegiate or associate degree school of 
nursing and any school which provides not less than a one-year pro-
gram of training to prepare students for gainful employment in a 
recognized occupation and which meets the provisions of clauses (A), 
(B), (D), and (E). If the Commissioner determines that a par-
ticular category of such schools does not meet the requirements of 
1250 
PUBLIC L
A
W 89-329-NOV. 8, 1965 
[79 STAT. 
clause (E) because there is no nationally recognized accrediting agency 
or association qualified to accredit schools in such category, he shall, 
pending the establishment of such an accrediting agency or associa-
tion, appoint an advisory committee, composed of persons specially 
qualified to evaluate training provided by schools in such category, 
which shall (I) prescribe the standards of content, scope, and quality 
which must be met in order to qualify schools in such category to par-
ticipate in the program pursuant to this part, and (II) determine 
w^hether particular schools not meeting the requirements of clause (E) 
meet those standards. 
For purposes of this subsection, the Commis-
sioner 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. 
"(2) The term 'collegiate school of nursing' means a department, 
division, or other administrative unit in a college or university which 
provides primarily or exclusively an accredited program of education 
in professional nursing and allied subjects leading to the degree of 
bachelor of arts, bachelor of science, bachelor of nursing, or to an 
equivalent degree, or to a graduate degree in nursing. 
"(3) The term 'associate degree school of nursing' means a depart-
ment, division, or other administrative unit in a junior college, com-
munity college, college, or university which provides primarily or 
exclusively an accredited two-year program of education in profes-
sional nursing and allied subjects leading to an associate degree in 
nursing or to an equivalent degree. 
"(4) The term 'accredited' when applied to any program of nurse 
education means a program accredited by a recognized body or bodies 
^
^
^ 
approved for such purpose by the Commissioner."; 
42 use 2754. 
(4) By Striking out sectlou 124(a) and inserting in lieu thereof 
the following : 
"(a) provide for the operation by the institution of a program 
for the part-time employment of its students in work for the insti-
tution itself or work in the public interest for a public or private 
nonprofit organization under an arrangement between the institu-
tion and such organization, and such work— 
" (1) will not result in the displacement of employed work-
ers or impair existing contracts for services, 
" (2) will be governed by such conditions of employment as 
will be appropriate and reasonable in light of such factors as 
type of work performed, geographical region, and proficiency 
of the employee, and 
" (3) does not involve the construction, operation, or main-
tenance of so much of any facility as is used or is to be used 
for sectarian instruction or as a place for religious worship;"; 
(5) By redesignating clauses (2), (3), and (4), of paragraph 
(c) of section 124 as clauses (1), (2), and (3), and by striking 
out so much of such paragraph as precedes such redesignated 
clauses and inserting in lieu thereof the following: "(c) provide 
that in the selection of students for employment under such work-
study program preference shall be given to students from low-
income families and that employment under such work-study 
program shall be furnished only to a student who"; 
42 use 2755. 
^g^ j ^ ^ inserting before the period at the end of section 125 
a comma and the following: "and such share may be paid to 
such student in the form of services and equipment (including 
tuition, room, board, and books) furnished by such institution"; 
and 
42 use 2761. 
^Y) By striking out "provided for in" in section 131 and insert-
ing in lieu thereof "for which he is responsible under". 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1251 
APPROPRIATIONS 
AUTHORIZED 
SEC. 442. There are authorized to be appropriated $129,000,000 
for the fiscal year ending June 30, 1966, $165,000,000 for the fiscal 
year ending June 30, 1967, and $200,000,000 for the fiscal year ending 
June 30, 1968, to carry out the purposes of part C of title I of the 
Economic Opportunity Act of 1964 (Public Law 88-452). Any sums 
78 stat_. 5
^
1
3
.
^ 
which are appropriated for the fiscal year ending June 30, 1966, for 2756. 
the purpose of such part C pursuant to an authorization in the 
Economic Opportunity Act of 1964, or are allocated for such purpose 
from any appropriation for such year, shall be made available, to 
the extent unexpended on the date of enactment of this Act, to the 
Commissioner for carrying out such part C, and the total of such 
sums (including amounts expended prior to such date) shall be 
deducted from the authorization in this section for such year. 
Sixty 
million dollars of the authorization for title I of the Economic Oppor-
tunity Act of 1964 for the fiscal year ending June 30, 19'66, as con-
tained in section 131 of such Act, shall be only for the purpose of 
"
^
^ use 2761. 
part C of such title. No provision in the Economic Opportunity 
Act of 1964 w^hich authorizes the appropriation of funds to carry 
out that Act shall apply to such part C after June 30, 1966. 
PART D—AMENDMENTS TO NATIONAL DEFENSE EDUCATION ACT OF 
1958 
DEFINITION OF INSTITUTION OF HIGHER EDUCATION 
SEC. 461. Section 103(b) of the National Defense Education Act 
of 1958 is amended to read as follows: 
^^ ^^^ ^^^ ^• 
"(b) The term 'institution of higher education' means an educa-
tional institution in any State which (1) admits as regular students 
only persons having a certificate of graduation from a school providing 
secondary education, or the recognized equivalent of such certificate, 
(2) is legally authorized within such State to provide a program of 
education beyond secondary education, (3) provides an educational 
program for which it awards a bachelor's degree or provides not less 
than a two-year program which is acceptable for full credit toward 
such a degree, (4) is a public or other nonprofit institution, and (5) is 
accredited by a nationally recognized accrediting agency or associa-
tion approved by the Commissioner for this purpose or, if not so 
accredited, (A) is an institution with respect to which the Commis-
sioner has determined that there is satisfactory assurance, considering 
the resources available to the institution, the period of time, if any, 
during which it has operated, the effort it is making to meet accredita-
tion standards, and the purpose for which this determination is being 
made, that the institution will meet the accreditation standards of such 
an agency or association within a reasonable time, or (B) is an insti-
tution whose credits are accepted on transfer by not less than three 
institutions which are so accredited, for credit on the same basis as if 
transferred from an institution so accredited. 
For purposes of title 
II, such term includes any school of nursing as defined in subsection 
2
0 use 421-429. 
(1) or this section, and also includes any school which provides not less 
fhan a one-year program of training to prepare students for gainful 
employment in a recognized occupation and which meets the provi-
sions of clauses (1), (2), (4), and (5). 
If the Commissioner deter-
mines that a particular category of such schools does not meet the 
requirements of clause (5) because there is no nationally recognized 
accrediting agency or association qualified to accredit schools in such 
category, he shall, pending the establishment of such an accrediting 
agency or association, appoint an advisory committee, composed of 
78 Stat. 1100. 
1252 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
persons specially qualified to evaluate training provided by schools in 
such category, which shall (i) prescribe the standards of content, scope, 
and quality which must be met in order to qualify schools in such 
category to participate in the student loan program under title II, and 
(ii) determme whether particular schools not meeting the require-
ments of clause (5) meet those standards. 
For purposes of this sub-
section, the Commissioner 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." 
CONDITIONS OF AGREEMENTS; x\DMINISTRATTVE COSTS 
SEC. 462. Clause (3) of section 204 of the National Defense Educa-
20 use 424 ^' 
^ ^'^^ -^^^ ^^ ^^^^ '^^ amended to read as follows: 
" (3) provide that such student loan fund shall be used only for 
(A) loans to students in accordance with such agreement, (B) 
capital distributions as provided in this title, (C) routine expenses 
incurred by the institution in administering the student loan fund, 
except that the amount withdrawn from such student loan fund 
for such routine expenses by an institution in any fiscal year may 
not exceed either (i) one-half of such routine expenses as estimated 
for that year by the Commissioner with the advice of an advisory 
committee which the Commissioner is hereby authorized to appoint 
on an annual or such other basis as he may deem appropriate, or 
(ii) 1 per centum of the aggregate of the outstanding loans made 
from that fund as of the close of that year, whichever is the lesser, 
and (D) costs of litigation, and other collection costs agreed to 
by the Commissioner, arising in connection with the collection of 
any loan from the fund, interest on such loan, or charge assessed 
Post, p. 1254. 
^^,j^j^ respect to that loan pursuant to section 205(c) ;". 
TECHNICAL AMENDMENT FOR PART-TIME STUDENTS 
SEC. 463. (a) The portion of section 205(b) (2) of the National De-
20 use 425. 
fense Education Act of 1958 which precedes clause (A) (ii) thereof is 
amended to read as follows: 
"(2) such a loan shall be evidenced by a note or other written 
agreement which provides for repayment of the principal amount, 
together with interest thereon, in equal installments (or, if the 
borrower so requests, in graduated periodic installments deter-
mined in accordance with such schedules as may be approved by 
the Commissioner) payable quarterly, bimonthly, or monthly (at 
the option of the institution) over a period beginning nine months 
after the date on which the borrower ceases to carry, at an insti-
tution of higher education or at a comparable institution outside 
the States approved for this purpose by the Commissioner, at 
least one-half the normal full-time academic workload as deter-
mined by that institution, and ending ten years and nine months 
after such date, except that (A) interest shall not accrue on any 
such loan, and installments need not be paid during any period 
(i) during which the borrower is carrying, at an institution of 
liigher education or at a comparable institution outside the States 
approved for this purpose by the Commissioner, at least one-half 
the normal full-time academic workload as determined by the 
institution,"'. 
78 Stat. 1102. 
(M Clause (D) of such section 205(b) (2) is amended by striking 
out "periodic", and by striking out "part-time" and inserting in lieu 
thereof "less than half-time". 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1253 
(c) The amendments made by this section shall apply to a loan 
outstanding on the date of enactment of this Act only with the consent 
of the borrower and the institution which made the loan. 
M I N I M U M RATE OF REPAYMENT 
SEC. 464. (a) Section 205(b) (2) of the National Defense Education 
Act of 1958 is further amended by striking out "and" before " ( E ) " 
l^ ^l%-^\\^'^-
and by inserting at the end thereof before the semicolon ", and (F) 
° 
'^^ ' 
the institution may provide, in accordance with regulations of the Com-
missioner, that during the repayment period of the loan payments of 
principal and interest by the borrower with respect to all the outstand-
ing loans made to him from loan funds established pursuant to this 
title shall be at a rate equal to not less than $15 per month". 
(b) The amendment made by this section shall be applicable only 
with respect to loans made after the date of enactment oi this Act. 
CANCELLATION OF 
LOANS FOR 
TEACHERS 
SEC. 465. (a) Section 205(b) (3) of the National Defense Education 
Act of 1958 is amended— 
rsstat. 1102. 
(1) by inserting "total" before "amount" and by striking out ", 
which was unpaid on the first day of such service"; 
(2) bv inserting "or its equivalent (as determined under regula-
tions of the Commissioner)" after "academic year"; and 
(3) by inserting before the semicolon at the end thereof a 
comma and the following: "except that (A) such rate shall be 
15 per centum for each complete academic year or its equivalent 
(as determined under regulations of the Commissioner) of service 
as a full-time teacher in a public or other nonprofit elementary 
or secondary school which is in the school district of a local educa-
tional agency which is eligible in such year for assistance pur-
suant to title I I of Public Law 874, Eighty-first Congress, as 
amended, and which for purposes of this clause and for that year 
^"'^' P- 27. 
has been determined by the Commissioner, pursuant to regula-
tions and after consultation with the State educational agency of 
the State in which the school is located, to be a school in which 
there is a high concentration of students from low-income fami-
lies, except that the Commissioner shall not make such determina-
tion with respect to more than 25 per centum of the total of the 
public and other nonprofit elementary and secondary schools in 
any one State for any one year, and (B) for the purposes of any 
cancellation pursuant to clause (A), an additional 50 per centum 
of any such loan (plus interest) may be cancelled but nothing 
in this paragraph shall authorize refunding any payment", 
(b) The amendments made by clauses (1) and (3) of subsection (a) 
shall apply with respect to service performed during academic years 
beginnmg after the date of enactment of this Act, whether the loan 
was made before or after such enactment. The amendment made by 
clause (2) of subsection (a) shall apply with respect to service per-
formed during academic years beginning after the enactment of the 
National Defense Education Act Amendments, 1964, Public Law 
88-665, whether or not the loan was made before or after such 
7* ^*^*- ' ^°°-
, 
' 
, 
20 u s e 401 note. 
enactment. 
CHARGES 
SEC. 466, (a) Section 205 of the National Defense Education Act of 
1958 is further amended by redesignating subsection (c) as subsection 
(d) and by inserting after subsection (b) the following new sub-
section : 
Ante, pp. 1252 
1253. 
1254 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
"(c) Pursuant to regulations of the Commissioner, an institution 
may assess a charge with respect to a loan from the loan fund estab-
lished by the institution pursuant to this title for failure of the bor-
rower to pay all or any part of an installment when it is due and, in 
the case of a borrower who is entitled to deferment benefits under sec-
tion 205(b) (2) or cancellation benefits under section 205(b) (3), for 
any failure to file timely and satisfactory evidence of such entitlement. 
The amount of any such charge may not exceed— 
" (1) in the case of a loan which is repayable in monthly install-
ments, $1 for the first month or part of a month by which such 
installment or evidence is late and $2 for each such month or part 
of a month thereafter; and 
"(2) in the case of a loan which has a bimonthly or qua,rterly 
repayment interval, $3 and $6, respectively, for each such interval 
or part thereof by w^hich such installment or evidence is late. 
The institution may elect to add the amount of any such charge to the 
principal amount of the loan as of the first day after the day on which 
such installment or evidence w^as due, or to make the amount of the 
charge payable to the institution not later than the due date of the 
next installment after receipt by the borrower of notice of the assess-
ment of the charge." 
2
0 use 42^4^' 
^^^ Clause (2) of section 204 of such Act is amended by striking 
out "and (D)" and inserting in lieu thereof "(D) charges collected 
pursuant to section 205(c), and (E)". 
(c) The amendment made by subsection (a) shall be applicable only 
with respect to loans made after the date of enactment of this Act. 
ECONOMICS, CIVICS, AND INDUSTRIAL ARTS 
SEC. 467. (a)(1) Clauses (1) and (5) of section 303(a) of the 
2
0 use 4^3^' 
National Defense Education Act of 1958 are each amended by inserting 
"economics," after "geography,". 
2
0 use 441. 
(2) Section 301 of such Act is amended by striking out "and 
$90,000,000 for the fiscal year ending June 30, 1965, and for each of 
the three succeeding fiscal years" and inserting in lieu thereof 
"$90,000,000 for the fiscal year ending June 30, 1965, and $100,000,000 
for the fiscal year ending June 30, 1966, and for each of the two suc-
ceeding fiscal years". 
20 use 591. 
cb) Section 1101 of such Act is amended— 
(1) by striking out "each of the three succeeding fiscal years" 
and inserting in lieu thereof "$50,000,000 for the fiscal year ending 
June 30,1966, and for each of the two succeeding fiscal years"; and 
(2) by inserting "economics, civics, industrial arts," after 
"geography,". 
TITLE V—TEACHER PROGRAMS 
PART A—GENERAL PROVISIONS 
ADVISORY COUNCIL ON QUALITY TEACHER 
PREPARATION 
Establishment. 
3K(-_ 501. (a) The .Commissiouer shall establish in the Office of 
Education an Advisory Council on Quality Teacher Preparation for 
the purpose of reviewing the administration and operation of the pro-
grams carried out under this title and of all other Federal programs 
for complementary purposes. This review shall pay particular atten-
tion to the effectiveness of these programs in attracting, preparing, and 
retaining highly qualified elementary and secondary school teachers, 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1255 
and it shall include recommendations for tlie improvement of these 
programs. The Council shall consist of the Commissioner, who shall 
be Chairman, and twelve members appointed for staggered terms and 
without regard to the civil service laws, by the Commissioner with the 
approval of the Secretary. Such twelve members shall include persons 
knowledgeable with respect to teacher preparation and the needs of 
urban and rural schools, and representatives of the general public. 
(b) Members of such Advisory Council who are not regular full- 
compensation. 
time employees of the United States shall, while attending meetings 
or conferences of such Council or otherwise engaged on business of 
such Council, be entitled to receive compensation at a rate fixed by 
the Secretary, but not exceeding $100 per diem, including travel time, 
and, while so serving 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 5 of the Administrative 
Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in the Government 
6
o stat. sos; 
service employed intermittently. 
^^ ^
*
^
*
" ^^^' ^'^°-
(c) The Council may appoint an Executive Secretary and such 
other employees as the Council deems necessary to carry out its 
functions under this title. 
LIMITATION 
SEC. 502. Nothing contained in this title shall be construed to 
authorize the making of any payment under this title for religious 
worship or instruction. 
PART B—NATIONAL TEACHER CORPS 
STATEMENT OF PURPOSE AND AUTHORIZATION OF APPROPRIATIONS 
SEC. 511. (a) The purpose of this part is to strengthen the educa-
tional opportunities available 'to children in areas having concentra-
tions of low-income families and to encourage colleges and univer-
sities to broaden their programs of teacher preparation by— 
(1) attracting and training qualified teachers who will be made 
available to local educational agencies for teaching in such areas; 
and 
(2) attracting and training inexperienced teacher-interns who 
will be made available for teaching and inservice training to local 
educational agencies in such areas in teams led by an experienced 
teacher. 
(b) For the purpose of carrying out this part, there are authorized 
to be appropriaJted $36,100,000 for the fiscal year ending June 30,1966, 
and $64,715,000 for the fiscal year ending June 30, 1967. 
ESTABLISHMENT OF NATIONAL TEACHER CORPS 
SEC. 512. In order to carry out the purposes of this part, there is 
Establishment. 
hereby established in the Office of Education a National Teacher 
Corps (hereinafter referred to as the "Teacher Corps"). 
The Teacher 
Corps shall be headed by a Director who shall be compensated at the 
rate prescribed for grade 17 of the General Schedule of the Classifica-
tion Act of 1949, and a Deputy Director who shall be compensated 
'^"'^' P- ^^^^• 
at the rate prescribed for grade 16 of such General Schedule. 
The 
Director and the Deputy Director shall perform such duties as are 
delegated to them by the Commissioner. 
1256 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
TEACHER CORPS PROGRAM 
SEC. 513. (a) For the purpose of carrying out this part, the Com-
missioner is authorized to— 
(1) recruit, select, and enroll experienced teachers, and inex-
perienced teacher-interns who have a bachelor's degree or its 
equivalent, in the Teacher Corps for periods of up to two years; 
(2) enter into arrangements, through grants or contracts, with 
institutions of higher education or State or local educational 
agencies to provide members of the Teacher Corps with such 
training as the Commissioner may deem appropriate to carry 
out the purposes of this part, including not more than three 
months of training for members before they undertake their 
teaching duties under this part; 
(3) enter into arrangements (including the payment of the 
cost of such arrangements) with local educational agencies, after 
consultation in appropriate cases with State educational agencies 
and institutions of higher education, to furnish to local educa-
tional agencies, for service during regular or summer sessions, 
or both, in the schools of such agencies in areas having concen-
trations of children from low-income families, either or both 
(A) experienced teachers, or (B) teaching teams, each of which 
shall consist of an experienced teacher and a number of teacher-
interns who, in addition to teaching duties, shall be afforded 
time by the local educational agency for a teacher-intern train-
ing program developed according to criteria established by 
the Commissioner and carried out under the guidance of the 
experienced teacher in cooperation with an institution of higher 
education; and 
(4) pay to local educational agencies the amount of the com-
pensation which such agencies pay to or on behalf of members 
of the Teacher Corps assigned to them pursuant to arrangements 
made pursuant to the preceding clause. 
(b) Arrangements with institutions of higher education to provide 
training for teacher-interns while teaching in schools for local educa-
tional agencies under the provisions of this part shall provide, wher-
ever possible, for training leading to a graduate degree. 
(c) (1) Whenever the Commissioner determines that the demand 
for the services of experienced teachers or of teaching teams furnished 
pursuant to clause (3) of subsection (a) exceeds the number of expe-
rienced teachers or teaching teams available from the Teacher Corps, 
the Commissioner shall, to the extent practicable, allocate experienced 
teachers or teaching teams, as the case may be, from the Teacher 
Corps among the States in accordance with paragraph (2). 
(2) Not to exceed 2 per centum of such teachers or teams, as the 
case may be, shall be allocated to Puerto Rico, and the Virgin Islands 
according to their respective needs. The remainder of such teams or 
teachers, as the case may be, shall be allocated among the other States 
in proportion to the number of children counted in each State for the 
purpose of determining the amount of basic grants made under sec-
tion 203 of title I I of Public Law 874, Eighty-first Congress, as 
Ante, p. 28. 
amended, for the fiscal year for which the allocation is made. 
(d) A local educational agency may utilize members of the Teacher 
Corps assigned to it in providing, in the manner described in section 
205(a) (2) of Public Law 874, Eighty-first Congress, as amended, edu-
cational services in which children enrolled in private elementary and 
secondary schools can participate. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1257 
COMPENSATION 
SEC. 514. (a) An arrangement made with a local educational agency 
pursuant to paragraph (3) of section 513(a) shall provide for compen-
sation by such agency of Teacher Corps members during the period of 
their assignment to it at the following rates: 
(1) an experienced teacher who is not leading a teaching team 
shall be compensated at a rate which is equal to the rate paid by 
such agency for a teacher with similar training and experience 
who has been assigned similar teaching duties; 
(2) an experienced teacher who is leading a teaching team shall 
be compensated at a rate agreed to by such agency and the Com-
missioner; and 
(3) a teacher-intern shall be compensated at a rate which is 
equal to the lowest rate paid by such agency for teaching full time 
in the school system and grade to which the intern is assigned. 
(b) For any period of training under this part the Commissioner 
shall pay to members of the Teacher Corps such stipends (including 
allowances for subsistence and other expenses for such members and 
their dependents) as he may determine to be consistent with prevailing 
practices under comparable federally supported training programs. 
(c) The Commissioner shall pay the necessary travel expenses of 
members of the Teacher Corps and their dependents and necessary 
expenses for the transportation of the household goods and personal 
effects of such members and their dependents, and such other necessary 
expenses of members as are directly related to their service in the Corps, 
including readjustment allowances proportionate to service. 
(d) The Commissioner is authorized to make such arrangements as 
may be possible, including the payment of any costs incident thereto, 
to protect the tenure, retirement rights, participation in a medical 
insurance program, and such other similar employee benefits as the 
Commissioner deems appropriate, of a member of the Teacher Corps 
who participates in any program under this part and who indicates 
his intention to return to the local educational agency or institution 
of higher education by which he was employed immediately prior to 
his service under this part. 
APPLICATION o r PROVISIONS OF FEDERAL LAW 
SEC. 515. (a) Except as otherwise specifically provided in this sec-
tion, a member of the Teacher Corps shall be deemed not to be a 
Federal employee and shall not be subject to the provisions of laws 
relating to Federal employment, including those relating to hours 
of work, rates of compensation, leave, unemployment compensation, 
and Federal employee benefits. 
(b) (1) Such members shall, for the purposes of the administra-
tion of the Federal Employees' Compensation Act (5 U.S.C. 751 
et seq.), be deemed to be civil employees of the United States within 
the meaning of the term "employee" as defined in section 40 of such 
Act (5 U.S.C. 790) and the provisions thereof shall apply except 
as hereinafter provided. 
(2) For purposes of this subsection: 
(A) the term "performance of duty" in the Federal Em-
ployees' Compensation Act shall not include any act of a mem-
ber of the Teacher Corps— 
(i) while on authorized leave; or 
(ii) while absent from his assigned post of duty, except 
while participating in an activity authorized by or under the 
direction or supervision of the Commissioner; and 
49-850 0-66-«2 
d 
39 
63 
" P 
uty. 
Stat. 
Stat. 
742. 
860. 
erformance 
," 
Ante, p. n i l . 
1258 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
(B) in computing compensation benefits for disability or death 
63^stat^854^^' 
Under the Federal Employees' Compensation Act, the monthly 
5 usc75i'note. 
pay of a member of the Teacher Corps shall be deemed to be his 
actual pay or that received under the entrance salary for grade 6 
of the General Schedule of the Classification Act of 1949, which-
ever is greater. 
(c) Such members shall be deemed to be employees of the Govern-
ment for the purposes of the Federal tort claims provisions of title 28, 
2
8
^ us?- 2
^
6
7 u 
United States Code. 
2680. 
LOCAL CONTROL PRESERVED 
SEC. 516. Members of the Teacher Corps shall be under the direct 
supervision of the appropriate officials of the local educational agen-
cies to which they are assigned. 
Except as otherwise provided in 
clause (3) of section 513(a), such agencies shall retain the authority 
to— 
(1) assign such members within their systems; 
(2) make transfers within their systems; 
(3) determine the subject matter to be taught; 
(4) determine the terms and continuance of the assignment of 
such members within their systems. 
MAINTENANCE OF EFFORT 
SEC. 517. No member of the Teacher Corps shall be furnished to any 
local educational agency under the provisions of this part if such 
agency will use such member to replace any teacher w^ho is or would 
otherwise be employed by such agency. 
PART C—FELLOWSHIPS FOR TEACHERS 
STATEMENT OF PURPOSE 
SEC. 521. The Congress hereby declares it to be the policy of the 
United States to improve the quality of education offered by the 
elementary and secondary schools of the Nation by improving the 
quality of the education of persons who are pursuing or who plan to 
pursue a career in elementary and secondary education. The purpose 
of this part is to carry out this policy by awarding fellowships for 
graduate study at institutions of higher education and by developing 
or strengthening teacher education programs in institutions of higher 
education. For the purpose of this part the term "career in elemen-
o'nd'aTy'^educatron." tary aud sccoudary education" means a career of teaching in elemen-
tary or secondary schools, a career of teaching, guiding, or supervising 
such teachers or persons who plan to become such teachers, or a career 
hi fields which are directly related to teaching in elementary or sec-
ondary schools, such as library science, school social work, guidance 
and counseling, educational media, and special education for handi-
capped children. 
Frj:,LOwsHiPS 
A U T H O R I Z E D 
SEC. 522. (a) The (commissioner is authorized to award not to 
exceed four thousand five hundred fellowships for the fiscal year 
ending June 30,1966, ten thousand fellowships for the fiscal year end-
ing June 30, 1967, and ten thousand fellowships for the fiscal year 
ending June 30, 1968. Fellowships awarded under the provisions of 
this part shall be for graduate study leading to an advanced degree 
otlier than a doctor of philosophy, or equivalent degree, for persons 
"Career in ele 
mentary and sec 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1259 
who are pursuing or plan to pursue a career in elementary and sec-
ondary education. 
Such fellowships shall be awarded as provided in 
sections 523 and 524 of this part and for such periods as the Commis-
sioner may determine but not to exceed twenty-four months. 
(b) In addition to the number of fellowships authorized to be 
awarded by subsection (a) of this section, the Commissioner is author-
ized to award fellowships equal to the number previously awarded 
during any fiscal year under this part but vacated prior to the end of 
the period for which they were awarded; except that each fellowship 
awarded under this subsection shall be for such period of study, not 
in excess of the remainder of the period for which the fellowship which 
it replaces was awarded, as the Commissioner may determine. 
ALLOCATION OF FELLOWSHIPS 
SEC. 523. The Commissioner shall allocate fellowships under this 
part to institutions of higher education with programs approved 
under the provisions of section 524(a) for the use of individuals 
accepted into such programs, in such manner and according to such 
plan as will most nearly— 
(1) provide an equitable distribution of such fellowships 
throughout the States, except that to the extent he deems proper 
in the national interest after consultation with the Advisory 
Council on Quality Teacher Preparation the Commissioner may 
Ante, p. 1254. 
give preference to programs designed to meet an urgent national 
need, and 
(2) encourage experienced teachers in elementary or secondary 
schools and other experienced personnel in elementary or second-
ary education to enter graduate programs, attract recent college 
graduates to pursue a career in elementary and secondary educa-
tion, and afford opportunities for college graduates engaged in 
other occupations or activities to pursue or return to a career in 
elementary and secondary education. 
APPROVAL OF P R O G R A M S ; GRANTS 
SEC. 524. (a) The Commissioner shall approve a graduate program 
of an institution of higher education only upon application by the 
institution and only upon his finding— 
(1) that such program will substantially further the objective 
of improving the quality of education of persons who are pur-
suing or intend to pursue a career in elementary and secondary 
education, 
(2) that such program gives emphasis to high-quality sub-
stantive courses, 
(3) that such program is of high quality and either is in effect 
or readily attainable, and 
(4) that only persons who demonstrate a serious intent to pursue 
or to continue a career in elementary and secondary education will 
be accepted for study in the program. 
(b) _ For the purpose of obtaining an appropriate geographical dis-
tribution of high-quality programs for the training of personnel for 
elementary or secondary education, the Commissioner is authorized to 
make grants to and contracts with institutions of higher education to 
pay part of the cost of developing or strengthening graduate programs 
which meet the requirements of subsection (a). 
1260 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
consuiYints"'^ 
(*^) "^^^ Commissioner may employ experts and consultants, as 
authorized by section 15 of the Administrative Expenses Act of 1946 
60 Stat. 8 10. 
(5 XJ.S.C. 55a), to advise him with respect to the making of grants 
and contracts and the approving of programs under this section, and he 
shall set forth in regulations the standards and priorities which will be 
utilized in approving such grants and contracts. Experts and con-
sultants employed pursuant to this subsection may be compensated 
while so employed at rates not in excess of $100 per diem, including 
travel time, and may be allowed while away from their homes or regu-
lar places of business, travel expenses (including per diem in lieu of 
75^tar339°34 
subsisteuce) as authorized by section 5 of such Act (5 XJ.S.C. 731>-2) 
for persons in the Government service employed intermittently. 
STIPENDS 
SEC. 525. (a) The Commissioner shall pay to persons awarded fel-
lowships under this part such stipends (including such allowances for 
subsistence and other expenses for such persons and their dependents) 
as he may determine to be consistent with prevailing practices under 
comparable federally supported programs. 
(b) In addition to the amounts paid to persons pursuant to sub-
section (a), the Commissioner shall pay to the institution of higher 
education at which such person is pursuing his course of study an 
amount equivalent to $2,500 per academic year, less any amount 
charged such person for tuition and nonrefundable fees and deposits. 
LIMITATION 
SEC. 526. No fellowships shall be awarded under this part for study 
at a school or department of divinity. 
For the purposes of this sec-
"Schooi °^ de- 
tion, the term "school or department of divinity" means an institution 
vfni^!" ° ^ 
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. 
FELLOWSHIP CONDITIONS 
SEC. 527. A person awarded a fellowship under the provisions of 
this part shall continue to receive the payments provided in section 
525(a) only during such periods as the Commissioner finds that he is 
maintaining satisfactory proficiency and devoting full time to study or 
research in the field in which such fellowship was awarded in an 
institution of higher education, and is not engaging in gainful employ-
ment other than such part-time employment in teaching, research, or 
similar activities related to his training as has been approved by the 
Commissioner. 
APPROPRIATIONS 
SEC. 528. There are hereby authorized to be appropriated to carry 
out this part $40,000,000 for the fiscal year ending June 30, 1966, 
$160,000,000 for the fiscal year ending June 30,- 1967, $275,000,000 
for the fiscal year ending June 30, 1968, and such sums for the two 
succeeding fiscal years as may be necessary to enable persons who have 
been awarded fellowships prior to July 1,1968, to complete their study 
under the fellowships. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1261 
TITLE VI—FINANCIAL ASSISTANCE FOR T H E IMPROVE-
MENT OF UNDERGRADUATE INSTRUCTION 
PART A—EQUIPMENT 
STATEMENT OF PURPOSE AND AUTHORIZATION OF APPROPRIATIONS 
SEC. 601. (a) The purpose of this part is to improve the quality of 
classroom instruction in selected subject areas in institutions of 
higher education. 
(b) There are hereby authorized to be appropriated $35,000,000 for 
the fiscal year ending June 30, 1966, $50,000,000 for the fiscal year 
ending June 30,1967, and $60,000,000 for the fiscal year ending June 
30, 1968, to enable the Commissioner to make grants to institutions of 
higher education pursuant to this part for the acquisition of equip-
ment and for minor remodeling described in section 603(2) (A). 
(c) There are also authorized to be appropriated $2,500,000 for the 
fiscal year ending June 30, 1966, and $10,000,000 for the fiscal year 
ending June 30,1967, and for the succeeding fiscal year, to enable the 
Commissioner to make grants to institutions of higher education pur-
suant to this part for the acquisition of television equipment and for 
minor remodeling described in section 603(2) (B). 
(d) There is also authorized to be appropriated a sum not exceeding 
$1,000,000 for the fiscal year ending June 30,1966, and for each of the 
two succeeding fiscal years, to enable the Commissioner to make grants 
in such amounts as he may consider necessary for the proper and 
efficient administration of the State plans approved under this part 
including expenses which he determines are necessary for the prepara-
tion of such plans. 
(e) For the fiscal year ending June 30, 1969, and for the succeed-
ing fiscal year, there may be appropriated for the purposes set forth 
in subsections (b), (c), and (d) of this section, only such sums as the 
Congress may hereafter authorize by law. 
ALLOTMENTS TO STATES 
SEC. 602. (a)(1) Of the funds appropriated pursuant to sub-
sections (b) and (c) of section 601 for any fiscal year one-half shall 
be allotted by the Commissioner among the States so that the allot-
ment to each State will be an amount which bears the same ratio to 
such one-half as the number of students enrolled in institutions of 
higher education in such State bears to the total number of students 
enrolled in such institutions in all the States; and the remaining one-
half shall be allotted by him among the States in accordance with 
paragraph (2) of this subsection. For the purposes of this subsection, 
(A) the number of students enrolled in institutions of higher educa-
tion shall be deemed to be equal to the sum of (i) the number of full-
time students and (ii) the full-time equivalent of the number of part-
time students as determined by the Commissioner in accordance with 
regulations; and (B) determinations as to enrollment shall be made 
by the Commissioner on the basis of data for the most recent year for 
which satisfactory data with respect to such enrollment are available 
to him. 
(2) For the purposes of this paragraph the Commissioner shall allot 
to each State for each fiscal year an amount which bears the same 
ratio to the funds being allotted pursuant to this paragraph as the 
product of— 
1262 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
(A) the number of students enrolled in institutions of higher 
education in such State, and 
(B) the State's allotment ratio, 
bears to the sum of the corresponding products for all the States. 
For 
the purposes of this paragraph the allotment ratio for any State shall 
be 1.00 less the product of (i) 0.50 and (ii) the quotient obtained by 
dividing the income per person for the State by the income per person 
for all the States (not including Puerto Rico, the Virgin Islands, 
American Samoa, and Guam), except that the allotment ratio shall in 
no case be less than O.331/3 or more than 0.66%, and the allotment ratio 
for Puerto Rico, the Virgin Islands, American Samoa, and Guam 
shall be 0.66%. The allotment ratios shall be promulgated by the 
Commissioner as soon as possible after enactment of this Act, and 
annually thereafter, on the basis of the average of the incomes per 
person of the States and of all the States for the three most recent 
consecutive calendar years for which satisfactory data are available 
from the Department of Commerce. 
(b) (1) A State's allotment under subsection (a) from funds appro-
priated pursuant to section 601(b) shall be available in accordance 
with the provisions of this part for payment of the Federal share (as 
determined under section 604) of the cost of equipment and minor 
remodeling described in section 603 (2) (A). 
(2) A State's allotment under subsection (a) from funds appro-
priated pursuant to section 601(c) shall be available in accordance 
with the provisions of this part for payment of the Federal share (as 
determined under section 604) of the cost of television equipment and 
minor remodeling described in section 603(2) (B). 
(c) Sums allotted to a State for the fiscal year ending June 30,1966, 
shall remain available for reservation as provided in section 606 until 
the close of the next fiscal year, in addition to the sums allotted to such 
State for such next fiscal year. Sums allotted to a State for the fiscal 
year ending June 30,1967, or for any succeeding fiscal year, which are 
not reserved as provided in section 606 by the close of the fiscal year 
for which they are allotted, shall be reallotted by the Commissioner, 
on the basis of such factors as he determines to be equitable and rea-
sonable, among the States which, as determined by the Commissioner, 
are able to use without delay any amounts so reallotted. 
Amounts 
reallotted under this subsection shall be available for reservation until 
the close of the fiscal year next succeeding the fiscal year for which 
they were originally allotted. 
STATE COMMISSIONS AND PLANS 
SEC. 603. Any State desiring to participate in the program under 
this part shall designate for that purpose an existing State agency 
which is broadly representative of the public and of institutions of 
higher education in the State, or, if no such State agency exists, shall 
establish such a State agency, and submit to the Commissioner through 
the agency so designated or established (hereafter in this part referred 
to as the "State commission"), a State plan for such participation. 
The Commissioner shall approve any such plan which— 
(1) provides that it shall be administered by t-he State 
commission; 
(2) sets forth, consistently with basic criteria prescribed by 
regulation pursuant to section 604, objective standards and 
methods (A) for determining the relative priorities of eligible 
projects for the acquisition of laboratory and other special equip-
ment (other than supplies consumed in use), including audio-
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1263 
visual materials and equipment for classrooms or audiovisual 
centers, and printed and published materials (other than text-
books) for classrooms or libraries, suitable for use in providing 
education in science, mathematics, foreign languages, history, 
geography, government, English, other humanities, the arts, or 
education at the undergraduate level in institutions of higher 
education, and minor remodeling of classroom or other space used 
for such materials or equipment; (B) for determining relative 
priorities of eligible projects for (i) the acquisition of television 
equipment for closed-circuit direct instruction in such fields in 
such institutions (including equipment for fixed-service instruc-
tional television, as defined by the Federal Communications Com-
mission, but not including broadcast transmission equipment), 
(ii) the acquisition of necessary instructional materials for use in 
such television instruction, and (iii) minor remodeling necessary 
for such television equipment; and (C) for determining the 
Federal share of the cost of each such project; 
(3) provides (A) for assigning priorities solely on the basis of 
such criteria, standards, and methods to eligible projects submitted 
to the State commission and deemed by it to be otherwise approv-
able under the provisions of this part; and (B) for approving 
and recommending to the Commissioner, in the order of such pri-
ority, applications covering such eligible projects, and for certi-
fying to the Commissioner the Federal share, determined by the 
State commission under the State plan, of the cost of the project 
involved; 
(4) provides for affording to every applicant, which has sub-
mitted to the Station commission a project, an opportunity for a 
fair hearing before the commission as to the priority assigned to 
such project or as to any other determination of the commission 
adversely affecting such applicant; and 
(5) provides (A) for such fiscal control and fund accounting 
procedures as may be necessary to assure proper disbursement of 
and accounting for Federal funds paid to the State commission 
under this part, and (B) for the making of such reports, in such 
form and containing such information, as may be reasonably 
necessary to enable the Commissioner to perform his functions 
under this part. 
BASIC 
CRITERIA 
FOR 
DETERMINING 
PRIORITIES, 
FEDERAL 
SHARE, 
AND 
MAINTENANCE 
OF EFFORT 
SEC. 604. (a) As soon as practicable after the enactment of this Act 
the Commissioner shall by regulation prescribe basic criteria to which 
the provisions of State plans setting forth standards and methods for 
determining relative priorities of eligible projects, and the application 
of such standards and methods to such projects under such plans, shall 
be subject. 
Such basic criteria (1) shall be such as will best tend to 
achieve the objectives of this part while leaving opportunity and flexi-
bility for the development of State plan standards and methods that 
will best accommodate the varied needs of institutions in the several 
States, and (2) shall give special consideration to the financial need 
of the institution. 
Subject to the foregoing requirements, such regu-
lations may establish additional and appropriate basic criteria, includ-
ing provision for considering the degree to which applicant institu-
tions are effectively utilizing existing facilities and equipment, provi-
sion for allowing State plans to group or provide for grouping, in a 
reasonable manner, facilities or institutions according to functional or 
educational type for priority purposes, and, in view of the national 
objectives of this Act. provision for considering the degree to which 
Federal share. 
1264 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
the institution serves students from two or more States or from outside 
the United States; and in no event shall an institution's readiness to 
admit such out-of-State students be considered as a priority factor 
adverse to such institution. 
(b) The Federal share for the purposes of this part shall not exceed 
50 per centum of the cost of the project, except that a State commis-
sion may increase such share to not to exceed 80 per centum of such 
cost in the case of any institution proving insufficient resources to par-
ticipate in the program under this part and inability to acquire such 
resources. An institution of higher education shall be eligible for a 
grant for a project pursuant to this part in any fiscal year only if such 
institution will expend during such year for the same purposes as, but 
not pursuant to, this part an amount at least equal to the amount 
expended by such institution for such purposes during the previous 
fiscal year. 
The Commissioner shall establish basic criteria for mak-
ing determinations under this subsection. 
APPLICATIONS FOR GRANTS AND CONDITIONS FOR APPROVAL 
SEC. 605. (a) Institutions of higher education which desire to 
obtain grants under this part shall submit applications therefor at 
such time or times and in such manner as may be prescribed by the 
Commissioner, and such applications shall contain such information as 
may be required by or pursuant to regulation for the purpose of 
enabling the Commissioner to make the determinations required to be 
made by him under this part. 
(b) The Commissioner shall approve an application covering a 
project under this part and meeting the requirements prescribed pur-
suant to subsection (a) if— 
(1) the project has been approved and recommended by the 
appropriate State commission; 
(2) the State commission has certified to the Commissioner, in 
accordance with the State plan, the Federal share of the cost of 
the project, and sufficient funds to pay such Federal share are 
available from the applicable allotment of the State (including 
any applicable reallotment to the State) ; 
(3) the project has, pursuant to the State plan, been assigned 
a priority that is higher than that of all other projects within 
such State (chargeable to the same allotment) which meet all the 
requirements of this section (other than this clause) and for which 
Federal funds have not yet been reserved; 
(4) the Commissioner determines that the project will be 
undertaken in an economical manner and will not be overly elab-
orate or extravagant; and 
(5) the Commissioner determines that the application contains 
or is supported by satisfactory assurances— 
(A) that Federal funds received by the applicant will be 
used solely for defraying the cost of the project covered by 
such application, 
(B) that sufficient funds will be available to meet the non-
Federal portion of such cost and to provide for the effective 
use of the equipment upon completion, and 
(C) that the institution will meet the maintenance of effort 
requirement in section 604 (b). 
(b) Amendments of applications shall, except as the Commissioner 
may otherwise provide by or pursuant to regulation, be subject to 
approval in the same manner as original applications. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1265 
AMOUNT OF GRANT—^PAYMENT 
SEC. 606. Upon his approval of any application for a grant under 
this part, the Commissioner shall reserve from the applicable allot-
ment (including any applicable reallotment) available therefor, the 
amount of such grant, which (subject to the limits of such allotment 
or reallotment) shall be equal to the Federal share of the cost of the 
project covered by such application. 
The Commissioner shall pay 
such reserved amount, in advance or by way of reimbursement, and in 
such installments as he may determine. The Commissioner's reserva-
tion of any amount under this section may be amended by him, either 
upon approval of an amendment of the application covering such proj-
ect or upon revision of the estimated cost of a project with respect to 
which such reservation was made, and in the event of an upward 
revision of such estimated cost approved by him he may reserve the 
Federal share of the added cost only from the applicable allotment (or 
reallotment) available at the time of such approval. 
ADMINISTRATION OF STATE PLANS 
SEC. 607. (a) The Commissioner shall not finally disapprove any tu"lj""^ °^^°'"' 
State plan submitted mider this part, or any modification thereof, 
without first affording the State commission submitting the plan rea-
sonable notice and opportunity for a hearing. 
(b) Whenever the Commissioner, after reasonable notice and oppor-
tunity for hearing to the State commission administering a State plan 
approved under this part, finds— 
(1) that the State plan has been so changed that it no longer 
complies with the provisions of section 603, or 
(2) that in the administration of the plan there is a failure to 
comply substantially with any such provision, 
the Commissioner shall notify such State commission that the State 
will not be regarded as eligible to participate in the program under 
this part until he is satisfied that there is no longer any such failure 
to comply. 
JUDICIAL 
REVIEW 
SEC. 608. (a) If any State is dissatisfied with the Commissioner's 
final action with respect to the approval of its State plan submitted 
under this part or with his final action under section 607, such State 
may appeal to the United States court of appeals for the circuit in 
which such State is located. The summons and notice of appeal may 
be served at any place in the United States. The Commissioner shall 
forthwith certify and file in the court the transcript of the proceedings 
and the record on which he based his action. 
(b) The findings of fact by the Commissioner, if supported by sub-
stantial evidence, shall be conclusive; but the court, for good cause 
shown, may remand the case to the Commissioner to take further 
evidence, and the Commissioner may thereupon make new or modified 
findings of fact and may modify his previous action, and shall certify 
to the court the transcript and record of the further proceedings. 
Such new or modified findings of fact shall likewise be conclusive if 
supported by substantial evidence. 
(c) The court shall have jurisdiction to affirm the action of the 
Commissioner or to set it aside, in whole or in part. The judgment 
of the court shall be subject to review by the Supreme Court of the 
United States upon certiorari or certification as provided in title 28, 
United States Code, section 1254. 
62 stat. 928. 
1266 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
LIMITATION ON PAYMENTS 
SEC. 609. No grant may be made under this part for equipment or 
materials to be used for sectarian instruction or religious worship, or 
primarily in connection with any part of the program of a school or 
artai'nt'^ f°df ^ 
department of divinity. For purposes of this section the term "school 
vinity." ° 
or department of divinity" means an institution or a department or 
branch of an institution whose program is specifically for the educa-
tion 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. 
PART B—FACULTY DEVEILOPMENT PROGRAMS 
INSTITUTES AUTHORIZED 
SEC. 621. (a) There are authorized to be appropriated $5,000,000 for 
the fiscal year ending June 30,1966, and for each of the two succeeding 
fiscal years, to enable the Commissioner to arrange, through grants or 
contracts, with institutions of higher education for the operation by 
them of short-term workshops or short-term or regular-session insti-
tutes for individuals (1) who are engaged in, or preparing to engage 
in, the use of educational media equipment in teaching in institutions 
of higher education, or (2) who are, or are preparing to be, in institu-
tions of higher education, specialists in educational media or librarians 
or other specialists using such media. 
(b) For the fiscal year ending June 30,1969, and for the succeeding 
fiscal year, there may be appropriated for the purposes of this part, 
only such sums as the Congress may hereafter authorize by law. 
STIPENDS 
SEC. 622. Each individual who attends an institute operated under 
the provisions of this part shall be eligible (after application therefor) 
to receive a stipend at the rate of $75 per week for the period of his 
attendance at such institute and each such individual with one or more 
dependents shall receive an additional stipend at the rate of $15 per 
week for each dependent. No stipends shall be paid for attendance 
at workshops. 
TITLE VII—AMENDMENTS 
TO 
H I G H E E 
EDUCATION 
FACILITIES ACT OF 1963 
EXPANSION OF GRANT PURPOSES 
SEC. 701. (a) Section 106 of the Higher Education Facilities Act of 
77 Stat. 368. 
1963 is amended to read as follows: 
20 use 716. 
'ELIGIBILITY FOR GRANTS 
"SEC. 106. An institution of higher education shall be eligible for a 
grant for construction of an academic facility under this title onlj^ if 
such construction will, either alone or together with other construction 
to be undertaken within a reasonable time, (1) result in an urgently 
needed substantial expansion of the institution's student enrollment 
capacity or capacity to carry out extension and continuing education 
programs on the campus of such institution, or (2) in the case of a 
new institution of higher education, result in creating urgently needed 
enrollment capacity or capacity to carry out extension and continuing 
education programs on the campus of such institution." 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
1267 
77 Stat. 364. 
20 use 7 11. 
20 use 731. 
20 use 718. 
(b) The first sentence of section 101(b) of the Higher Education 
Facilities Act of 1963 is amended by striking out "and each of the two 
succeeding fiscal years" and inserting in lieu thereof "and for the suc-
ceeding fiscal year, and the sum of $460,000,000 for the fiscal year end-
ing June 30, 1966". 
(c) The second sentence of section 201 of such Act is amended by 
striking out "and the sum of $60,000,000 each for the fiscal year ending 
June 30, 1965, and the succeeding fiscal year" and inserting in lieu 
thereof "the sum of $60,000,000 for the fiscal year ending June 30,1965, 
and the sum of $120,000,000 for the fiscal year ending June 30,1966". 
TECHNICAL AMENDMENTS 
MAKING SECTION 103 ALLOTMENTS AVAILABLE FOR SECTION 104 INSTITU-
TIONS UNDER CERTAIN 
CIRCUMSTANCES 
SEC. 702. (a) (1) Section 103(b) of the Higher Education Facili-
ties Act of 1963 is amended by inserting "(1)" immediately after 
2
0 use 713. 
"(b)" in such section and by adding at the end thereof: 
"(2) Notwithstanding any other provisions of this title, any por-
tion of a State's allotment under this section for a fiscal year for 
which applications from an institution qualified to receive grants 
under this section have not been received by the State Commission 
by January 1 of such fiscal year, shall, if the Commission so requests, 
be available, in accordance with the provisions of this title, for pay-
ment of the Federal share (as determined under sections 108(b) (3) 
and 401(d)) of the development cost of approved projects for the 
^°^'' P- '268. 
construction of academic facilities within such State for institutions 
of higher education other than public community colleges and public 
technical institutes." 
(2) The first sentence of section 103(c) is amended by striking out 
"for providing academic facilities for public community colleges or 
public technical institutes" and inserting in lieu thereof "for the 
purposes set forth in subsection (b) of this section". 
(3) Section 105(a) is amended by striking out "hereinafter" in the 
2
0 use 715. 
matter preceding clause (1). 
(4) Clause (3) of section 105(a) is amended by inserting "(except 
as provided in section 103 (b) (2))" after "section 103 will be available". 
MAKING SECTION 104 ALLOTMENTS AVAILABLE FOR SECTION 103 INSTI-
TTJTIONS UNDER CERTAIN CIRCUMSTANCES 
(b) (1) Section 104(b) of the Higher Education Facilities Act of 
1963 is amended by inserting "(1)" immediately after " ( b ) " in such 
2
0 use 714. 
section and by adding at the end thereof: 
" (2) Notwithstanding any other provisions of this title, any portion 
of a State's allotment under this section for a fiscal year for which 
applications from an institution qualified to receive grants under this 
section have not been received by the State Commission by January 1 
of such fiscal year, shall, if the Commission so requests, be available, in 
accordance with the provisions of this title, for payment of the Federal 
share (as determined under sections 108(b)(3) and 401(d)) of the 
development cost of approved projects for the construction of aca-
demic facilities within such State for public community colleges and 
public technical institutes." 
(2) The first sentence of section 104(c) is amended by striking out 
"for providing academic facilities for institutions of higher education 
other than public community colleges and public technical institutes" 
1268 
PUBLIC LAW 89-329-NOV. 8, 1965 
[79 STAT. 
and inserting in lieu thereof "for the purposes set forth in subsection 
(b) of this section". 
2^0^use"7^15!' 
w) Clause (3) of section 105(a) is amended by inserting "(except 
Ante, p. 1267. as providcd in section 104(b)(2))" after "section 104 will be 
available". 
REVISING FEDERAL SHARE FOR PUBLIC COMMUNITY COLLEGES AND PUBLIO 
TECHNICAL I N S T I T U T l ^ 
(c) (1) Section 105(a) (2) of the Higher Education Facilities Act 
of 1963 is amended by striking out "other than a project for a public 
community college or public technical institute". 
20 use 717. 
(2) Section 107(b) of such Act is amended (1) by striking out 
"other than a project for a public community college or public tech-
nical institute", and (2) by striking out "shall be 40 per centum" and 
inserting in lieu thereof "shall in no event exceed 40 per centum". 
2
0 use 751. 
^3^ Section 401(d) of such Act is amended by inserting imme-
diately before "40 per centum" the following: "a percentage (as deter-
mined under the applicable State plan) not in excess of". 
THREE-YEAR AVAILABILITY OF SUMS APPROPRIATED UNDER SECTION 
2 0 1 
(d) The last sentence of section 201 of the Higher Education Facili-
2
0 use 731. 
^jgg ^(jt of 1963 is amended to read as follows: Sums appropriated 
pursuant to this section for any fiscal year shall remain available for 
grants under this title until the end of the second succeeding fiscal 
year. 
TWO-YEAR AVAILABILITY OF TITLE I I I FUNDS 
20 use 743. 
(e) Section 303(c) of the Higher Education Facilities Act of 1963 
is amended by adding at the end the following new sentence: "Sums 
appropriated pursuant to this subsection for any fiscal year shall 
remain available for loans under this title until the end of the next 
succeeding fiscal year." 
COORDINATION W I T H PART A (GRANTS FOR EXPANSION AND IMPROVEMENT 
OF NURSE TRAINING) 
OF TITLE VIII OF T H E PUBLIC H E A L T H 
SERVICE 
ACT 
(f) Effective with respect to applications for grants and loans sub-
mitted after the date of enactment of this Act, clause (E) of section 
401 (a) (2) of the Higher Education Facilities Act of 1963 is amended 
to read as follows: " (E) any facility used or to be used by a school of 
medicine, school of dentistry, school of osteopathy, school of phar-
macy, school of optometry, school of podiatry, or school of public 
health as these terms are defined in section 724 of the Public Health 
Service Act, or a schtK)l of nursing as defined in section 843 of that 
77 Stat. 169; 
A r>+ " 
78 Stat. 918. 
-ii-UU 
42 u s e 293d, 
CHANGE I N INTEREST RATE FOR TITLE I I I LOANS 
298b. 
SEC. 703. (a) Subsection (b) of section 303 of the Higher Education 
Facilities Act of 1963 is amended by inserting "(1)" after "shall bear 
interest at", and by inserting before the period at the end thereof a 
comma and the following: "or (2) the rate of 3 per centum per 
annum, whichever is the lesser". 
(b) The amendment made by this section shall be applicable only 
with respect to loans made after the date of enactment of this Act. 
79 STAT. ] 
PUBLIC LAW 89-329-NOV. 8, 1965 
. 
1269 
TITLE VIII—GENEKAL PROVISIONS 
DEFINITIONS 
SEC. 801. As used in this Act— 
(a) The term "institution of higher education" means an educational 
institution in any State which (1) admits as regular students only-
persons having a certificate of graduation from a school providing 
secondary education, or the recognized equivalent of such a certificate, 
(2) is legally authorized within such State to provide a program of 
education beyond secondary education, (3) provides an educational 
program for which it awards a bachelor's degree or provides not less 
than a two-year program which is acceptable for full credit toward 
such a degree, (4) is a public or other nonprofit institution, and (5) is 
accredited by a nationally recognized accrediting agency or association 
or, if not so accredited, is an institution whose credits are accepted, on 
transfer, by not less than three institutions which are so accredited, 
for credit on the same basis as if transferred from an institution so 
accredited. 
Such term also includes any business school or technical 
institution which meets the provisions of clauses (1), (2), (4), and 
(5). 
For purposes of this subsection, the C!ommissioner shall publish 
a list of nationally recognized accrediting agencies or associations 
which he determines to be reliable authority as to the quality of train-
ing offered. 
(b) The term "State" includes, in addition to the several States of the 
Union, the Commonwealth of Puerto Rico, the District of Columbia, 
Guam, American Samoa, and the Virgin Islands. 
(c) The term "nonprofit" as applied to a school, agency, organiza-
tion, or institution means a school, agency, organization, or institution 
owned and operated by one or more nonprofit corporations or associa-
tions no part of the net earnings of which inures, or may lawfully 
inure, to the benefit of any private shareholder or individual. 
(d) The term "secondary school" means a school which provides sec-
ondary education as determined under State law except that it does 
not include any education provided beyond grade 12. 
(e) The term "Secretary" means the Secretary of Health, Educa-
tion, and "Welfare. 
(f) The term "Commissioner" means the Commissioner of Edu-
cation. 
(g) The term "local educational agency" means a public board of 
education or other public authority legally constituted within a State 
for either administrative control or direction of, or to perform a serv-
ice function for, public elementary or secondary schools in a city, 
county, towns! ip, school district, or other political subdivision of a 
State, or such combination of school districts or counties as are recog-
nized in a State as an administrative agency for its public elementary 
or secondary schools. Such term also includes any other public insti-
tion or agency having administrative control and direction of a public 
elementary or secondary school. 
(h) The term "State educational a^enc}^" means the State board of 
education or other agency or officer primarily responsible for the State 
supervision of public elementary and secondary schools, or, if there is 
no such officer or agency, an officer or agency designated by the Gov-
ernor or by State law. 
(i) The term "elementary school" means a school which provides 
elementary education including education below grade 1, as deter-
mined under State law. 
1270 
PUBLIC LAW 89-330-NOV. 8, 1965 
[79 STAT. 
METHOD OF PAYMENT 
SEC. 802. Payments under this Act to any individual or to any State 
or Federal agency, institution of higher education, or any other orga-
nization, pursuant to a grant, loan, or contract, may be made in install-
ments, and in advance or by way of reimbursement, and, in the case of 
grants or loans, with necessary adjustments on account of overpay-
ments or underpayments. 
FEDERAL ADMINISTRATION 
SEC. 803. (a) The Commissioner is authorized to delegate any of 
his functions under this Act, except the making of regulations, to any 
officer or employee of the Office of Education. 
(b) In administering the provisions of this Act, the Commissioner 
is authorized to utilize the services and facilities of any agency of the 
I'ederal Government and of any other public or nonprofit agency or 
institution, in accordance with agreements between the Secretary and 
the head thereof. 
FEDERAL CONTROL OF EDUCATION PROHIBITED 
SEC. 804. (a) Nothing contained in this Act shall be construed to 
authorize any department, agency, officer, or employee of the United 
States to exercise any direction, supervision, or control over the cur-
riculum,, program of instruction, administration, or personnel of any 
educational institution, or over the selection of library resources by 
any educational institution. 
(b) Nothing contained in this Act or any other Act shall be con-
strued to authorize any department, agency, officer, or employee of the 
United States to exercise any direction, supervision, or control over the 
membership practices or internal operations of any fraternal organiza-
tion, fraternity, sorority, private club or religious organization at an 
institution of higher education (other than a service academy or the 
Coast Guard Academy) which is financed exclusively by funds derived 
from private sources and whose facilities are not owned by such 
institution. 
Approved November 8, 1965. 
Public Law 89-330 
Novembers, 19 65 
^'^ AC i 
[S. 209 2] 
f
j
i
Q amend the Agricultural Marketing Agreement Act of 1937 to permit market-
ing orders applicable to various fruits and vegetables to provide for paid 
advertising. 
Be it enacted hy the Senate and House of Representatives 
of the 
Mlrke"til'"^o'r- 
United States of America in Congress assemhled, That the Agricul-
ders, paid adver- tural Adjustmeut Act of 1933, as amended, and as reenacted and 
ti^i^e- 
amended by the Agricultural Marketing Agreement Act of 1937, as 
amended, is further amended as follows: 
61 st^t. 707. 
(a) Section 2(3) is amended by inserting "such container and pack 
'^" 
^° • 
requirements provided in section 8(c)(6)(H)", immediately after 
"establish and maintain", 
76^stat^*63?^' 
(b) The proviso at the end of section 8c (6) (I) is amended by insert-
7 use 608c. 
ing: ", carrots, citrus fruits, onions, Tokay grapes, fresh pears, dates, 
plums, nectarines, celery, sweet com, limes, olives, pecans, or avocados" 
immediately after "applicable to cherries". 
Approved November 8, 1965.