An Act to extend the Higher Education Act of 1965, to extend and revise the Vocational Education Act of 1963, and for other purposes.
PL 94-482 (S.2657), enacted 10/12/1976

PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2081 
Public Law 94-482 
94th Congress 
An Act 
To extend the Higher Education Act of 1965, to extend and revise the Yocational 
Oct. 12, 1976 
Education Act of 1963, and for other purposes. 
[S. 2657] 
Be it enacted 
hy the Senate 
and House 
of Representatives 
of 
the 
United 
States 
of America 
in Congress 
assembled^ 
T h a t this A c t m a y be 
Education 
cited as the " E d u c a t i o n A m e n d m e n t s of 1976". 
Amendments 
of 1976. 
TABLE OF CONTENTS 
20 
USC 
1001 
note. 
TITLE I—HIGHER EDUCATION 
PART A—COMMUNITY SERVICES AND CONTINUING EDUCATION 
Sec. 101. Extension and revision of program. 
PART B—COLLEGE LIBRARY ASSISTANCE AND LIBRARY TRAINING AND RESEARCH 
Sec. 106. Extension of authorization. 
Sec. 107. Revision of research library resources. 
PART C—STRENGTHENING DEVELOPING INSTITUTIONS 
Sec. 111. Extension of authorization. 
PART D—STUDENT ASSISTANCE 
Sec. 121. Basic educational opportunity grants. 
Sec. 122. Supplemental educational opportunity grants. 
Sec. 123. State student incentive grants. 
Sec. 124. Special programs for students from disadvantaged backgrounds. 
Sec. 125. Education information program. 
Sec. 126. Veterans' cost-of-instruction payments. 
Sec. 127. Federal and State insured loan programs. 
Sec. 128. Work study program. 
Sec. 129. Cooperative education. 
Sec. 130. Direct loan program. 
Sec. 131. Student consumer information. 
Sec. 132. Eligibility for student assistance. 
Sec. 133. Fiscal responsibility. 
PART E—EDUCATION PROFESSIONS DEVELOPMENT 
Sec. 151. Revision of title V. 
Sec. 152. Teacher corps. 
Sec. 153. Teacher training programs. 
PART F—FINANCIAL ASSISTANCE FOR THE IMPROVEMENT OF 
UNDERGRADUATE INSTRUCTION 
Sec. 156. Extension of authorization. 
Sec. 157. Revision of maintenance of effort. 
PART G—CONSTRUCTION OF ACADEMIC FACILITIES 
Sec. 161. Extension of program. 
Sec. 162. Revision of program. 
PART H—GRADUATE PROGRAMS 
Sec. 171. Extension and revision of graduate fellowships and assistance. 
Sec. 172. Law school clinical assistance program. 
90 STAT. 2082 
PUBLIC LAW 94-482—OCT. 12, 1976 
PART I—COMMUNITY COLLEGES AND STATE POSTSECONDARY PLANNING 
Sec. 176. Extension and revision of title X. 
Sec. 177. Expansion grants. 
Sec. 178. Revision of definition of community college. 
Sec. 179. Authorization for statewide planning. 
PART J.—GENERAL PROVISIONS 
Sec. 181. Definitions. 
Sec. 182. Antidiscrimination amendment. 
Sec. 183. Funding requirement. 
TITLE II—VOCATIONAL EDUCATION 
rns 
Sec. 201. Extension of certain vocational education programs. 
Sec. 202. Revision of the Vocational Education Act of 1963. 
Sec. 203. Related amendments. 
Sec. 204. Effective dates and repealers. 
TITLE III—EXTENSIONS AND REVISIONS OF OTHER 
EDUCATION PROGRAMS 
PART A—EXTENSION AND REVISION OF RELATED PROGRAMS 
Sec. 301. Extension of title III of the National Defense Education Act of 1958. 
Sec. 302. Extension and revision of title VI of the National Defense Education 
Act of 1958. 
Sec. 303. Extension of the International Education Act of 1966. 
PART B—OTHER EDUCATION PROGRAMS 
Sec. 321. Extension and revision of the Emergency School Aid Act. 
Sec. 322. Extension of the Allen J. EUender fellowship program. 
Sec. 323. Maintenance of effort. 
Sec. 324. Participation of nonpublic school children. 
Sec. 325. Women's educational equity. 
See. 326. State equalization plans. 
Sec. 327. Indochina Refugee Children Assistance Act of 1976 and similar 
programs. 
Sec. 328. Hold harmless relating to title IV of Elementary and Secondary Edu-
cation Act of 1965. 
Sec. 329. Amendment to Adult Education Act. 
Sec. 330. Amendments relating to Public Law 874, Eighty-first Congress. 
PART C—CAREER EDUCATION AND CAREER DEVELOPMENT 
Sec. 331. Purpose. 
Sec. 332. Authorization of appropriations; allotment. 
Sec. 333. Program administration. 
Sec. 334. Use of funds. 
Sec. 335. Career information. 
Sec. 336. National Advisory Council. 
PART D—GUIDANCE AND COUNSELING 
Sec. 341. Findings. 
Sec. 342. Appropriations authorized. 
Sec. 343. Administration. 
Sec. 344. Program authorized. 
TITLE IV—GENERAL EDUCATION PROVISIONS 
Sec. 401. Survey of availability of qualified teachers. 
Sec. 402. Extension of Fund for Improvement of Postsecondary Education. 
Sec. 403. National Institute of Education. 
Sec. 404. Technical revision relating to prohibition against Federal control. 
Sec. 405. Regulations. 
Sec. 406. Control of paperwork. 
Sec. 407. Administrative hearings. 
Sec. 408. Student admission practices. 
Sec. 409. Extension of reporting dates for certain programs. 
Sec. 410. Treatment of Indian postsecondary schools. 
Sec. 411. Presidential advisory councils. 
Sec. 412. Amendment relating to sex discrimination. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2083 
TITLE V—TECHNICAL AND MISCELLANEOUS PROVISIONS 
PABT A—TECHNICAL AMENDMENTS 
Sec. 501. Technical amendments. 
PART B—MISCELLANEOUS AMENDMENTS 
Sec. 521. Reports on high school equivalency program and college assistance 
migrant program. 
Sec. 522. Report on reorganization of Education Division. 
Sec. 523. Studies of vocational education. 
Sec. 524. Departmental day care center. 
Sec. 525. Wayne Morse Chair of Law and Politics. 
PART C—TRANSITION PERIOD; EKFECTIVE DATES 
Sec. 531. Transition period. 
Sec. 532. Effective dates. 
TITLE I — H I G H E R E D U C A T I O N 
PART A—COMMUNITY SERVICES AND CONTINUING 
EDUCATION 
EXTENSION AND REVISION OF PROGRAM 
SEC. 101. (a) Section 101 of the Higher Education Act of 1965 20 USCIOOI. 
(hereafter in this title referred to as "the Act") is amended to read 
as follows: 
"APPROPRIATIONS AUTHORIZED 
"SEC. 101. (a) For the purpose of (1) assisting the people of the 
United States in the solution of community problems such as housing, 
poverty, government, recreation, employment, youth opportunities, 
transportation, health, and land use by enabling the Commissioner 
to make grants under this title to strengthen community service pro-
grams of colleges and universities, (2) supporting the expansion of 
continuing education in colleges and universities and (3) supporting 
resource materials sharing programs, there are authorized to be 
appropriated $4(),0!)(),0()() for the fiscal years 1977, 1978, and 1979. 
"(b) For the purpose of carrying out a program for the promo-
tion of lifelong leai'ning in accordance with the provisions of part B, 
there are authorized to be appropriated, $20,000,000 for fiscal year 
1977, $30,000,000 for- fiscal year 1978, and $40,000,000 for fiscal year 
1979.". 
(b) Title I of such Act is amended— 
(1) (A) by amending the heading of section 102 to re; d as 20 USC 1002. 
follows: 
"DEFINITION OF COMMUNITY SERVICE PROGRAM AND CONTINUING 
EDUCATION 
P R O G R A M " ; 
(B) by inserting " ( a ) " after the section designation of su^h 
section 102; and 
(C) by inserting at the end thereof 
the following 
new 
subsections: 
"(b) For purposes of this title the term'continuing education pro-
gram' means postsecondary instruction designed to meet the educa-
tional needs and interests of adults, including tl^e expansion of 
available learning opportunities for adults who are not adequately 
served by current educational offerings in their communities. 
90 STAT. 2084 
PUBLIC LAW 94-482—OCT. 12, 1976 
" (c) For purposes of this title, the term 'resource materials sharing 
programs' means planning for the improved use of existing commu-
nity learning resources by finding ways that combinations of agencies, 
institutions, and organizations can make better use of existing educa-
tional materials, communications technology, local facilities, and such 
human resources as will expand learning opportunities for adults in 
the area being served."; 
20 use 1003. 
(2) by amending section 103(a) to read as follows: 
"SEC. 103. (a) From the sums appropriated pursuant to section 
101 (a) for any fiscal year which arc not reserved under section 106(a), 
tlie Commissioner shall allot to each State an amount wjiich bears the 
same ratio to such sums as the population of such State bears to the 
population of all the States, except that, for any fiscal year beginning 
on or after October 1, 1976, no State shall be allotted from such sums 
less than the amount which such State received during the fiscal year 
beginning July 1, 1975. 
20 use 1004. 
(3) by striking out "community service programs" in section 
104 and inserting in lieu thereof "community service and con-
tinuing education programs, including resource material sharing 
programs,"; 
State plan. 
(4) by striking out so much of section 105(a) as precedes para-
20 use 1005. 
graph (1) and inserting in lieu thereof the following: 
"SEC. 105. (a) Any State desiring to receive its allotment of funds 
under this part for use in community service and continuing educa-
tion programs, including resource material sharing programs, shall 
designate or create a State agency or institution which has special 
qualifications with respect to solving comnmnity problems and which 
is broadly representative of institutions of higher education in the 
State which are competent to offer community service and continu-
ing education programs, including resource material sharing pro-
grams, and shall submit to the Commissioner a State plan. If a State 
desires to designate for the purpose 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 part shall—". 
(5) (A) by inserting "or combination" after "and institution" 
in section 105(a) (2) ; and 
(B) by striking out "community service programs" each place 
it appears in such section and inserting in lieu thereof "commu-
nity service and continuing education programs, 
including 
resource materials sharing programs,"; 
(6) (A) by inserting "and combinations thereof" immediately 
after "institution of higher education" each place it appears in 
section 105(a)(3); 
(B) by striking out "community service programs" each place 
it appears in such section and inserting in lieu thereof "commu-
nitv 
service and continuing education programs, 
including 
resource materials sharing programs,"; and 
(C) by striking out "in the litjht of information regarding 
current and anticipated commimity problems in the State" in 
subparagraph (C) of such section; 
(7) by striking ovit "community service programs" in section 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2085 
105(a) (4) and inserting in lieu thereof "community service and 20 USC 1005. ^ 
continuing education programs, including resource materials 
sharing programs,"; 
(8) by inserting "or combinations thereof" after "institutions 
of higher education" in section 105 (a) (5); 
(9) by striking section 105(a) (6) and inserting in lieu thereof 
the following: 
"(6) assurances that all institutions of higher education in the 
,•. 
State have been given the opportunity to participate in the devel-
opment of the State plan."; and 
(10) by inserting immediately after section 105(b) the follow-
ing new subsection: 
"(c) The Commissioner shall not by standard, rule, regulation, 
guideline, or any other means, either formal or informal, require a 
State to make any agreement or submit any data which is not spe-
cifically required by this part.". 
(c) Section 107(a) of the Act is amended by striking out "$25,000" 20 USC 1006. 
and inserting in lieu thereof "$40,000". 
(d) Section 109 of the Act is amended to read as follows: 
20 U
S
C 1008. 
u 
JUDICIAL REVIEW 
"SEC. 109. If a State's plan is not approved under section 105(b) 
or a State's eligibility to participate in the program is suspended 
as a result of the Commissioner's action under section 108(b), the 20 USC 1007. 
State may within sixty days after notice of the Commissioner's deci-
sion institute a civil action in an appropriate United States district 
court. In such an action, the court shall determine the matter de novo.". 
(e) Title I of the Act is further amended by redesignating sections 
111, 112, and 113, and any references thereto, as sections 112,113, and 20 U
S
C 1009-
114, respectively, and inserting immediately after section 110 the fol- lOH-
lowing: new section: 
«. 
TECHNICAL ASSISTANCE AND ADMINISTRATION 
"SEC. 111. (a) The Commissioner is authorized to reserve not to 20 U
S
C 1008b. 
exceed 10 per centum of the amount appropriated for any fiscal year 
pursuant to section 101 (a) in excess of $14,500,000 for the purpose of 20 U
S
C 1001. 
this section. 
"(b) From funds reserved under subsection (a) of this section, the 
Commissioner shall provide technical assistance to the States and to 
institutions of higher education. Such technical assistance shall— 
"(1) provide a national diffusion network to help assure that 
effective programs are known among such States and institutions; 
' 
"(2) assist with the improvement of planning and evaluation 
procedures; and 
"(3) provide information about the changing enrollment pat-
terns in postsecondary institutions, and provide assistance to such 
States and institutions in their efforts to understand these chang-
ing patterns and to accommodate them.". 
"(c) The Commissioner shall provide for coordination between 
community service and continuing education programs (including 
resource materials sharing programs) conducted by him with all 
other appropriate offices and agencies, including such offices and agen-
cies which administer vocational education programs, adult education 
programs, career education programs, and student and institutional 
assistance programs.". 
90 STAT. 2086 
PUBLIC LAW 94-4S2—OCT. 12, 1976 
Ante, p. 2085. 
(f) (1) Section 112 of the Act (as redesignated by subsection (e)) 
is amended— 
(A) by striking out "the Commissioner, who shall be Chair-
man," in subsection (a) ; and 
(B) by striking out "through June 30, 1975" in subsection (f) 
and inserting in lieu thereof "until the programs authorized by 
this part are terminated". 
Ante, p. 2085. 
(2) The text of section 113 of the Act (as redesignated by subsec-
tion (e)) is amended to read as follows: "Nothing in this section shall 
modify any authority under the Act of May 8, 1914 (Smith-Lever 
Act), as amended (7 U.S.C. 341-348).". 
(g) Title I of the Act is further amended— 
(1) by inserting before the section heading of section 101 the 
following: 
"PART A—COMMUNITY SERVICE AND CONTINUING EDUCATION 
PROGRAMS"; 
(2) by striking out "this title" each time it appears in section 
20 use 1002H 
102 through section 112 of such title, and inserting in lieu thereof 
1009. 
"this part"; and 
(3) by adding at the end thereof the following new part: 
"PART B—LIFELONG LEARNING 
"FINDINGS 
20 use 1015. 
"SEC. 131. The Congress finds that— 
"(1) accelerating social and technological change have had 
impact on the duration and quality of life; 
"(2) the American people need lifelong learning to enable 
them to adjust to social, technological, political and economic 
changes; 
"(3) lifelong learning has a role in developing the potential of 
all persons including improvement of their personal well-being, 
upgrading their workplace skills, and preparing them to partici-
pate in the civic, cultural, and political life of the Nation; 
"(4) lifelong learning is important in meeting the needs of the 
growing number of older and retired persons; 
"(5) learning takes place through formal and informal instruc-
tion, through educational programs conducted by public and pri-
vate educational and other institutions ar^i organizations, through 
independent study, and through the efforts of business, industry, 
and labor; 
"(6) planning is necessary at the national, State, and local 
levels to assure effective use of existing resources in the light of 
changing characteristics and learning needs of the population; 
"(7) more effective use should be made of the resources of the 
Nation's educational institutions in order to assist the people of 
the United States in the solution of community problems in areas 
such as housing, poverty, government, recreation, employment, 
youth opportunities, transportation, health, and land use; and 
"(8) American societj^ should have as a goal the availability 
of appropriate opportunities for lifelong learning for all its citi-
zens without regard to restrictions of previous education or train-
ing, sex, age, handicapping condition, social or ethnic background, 
or economic circumstance. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2087 
u 
SCOPK OF LIFELONG LEARNING 
"SEC. 132. Lifelong learning includes, but is not limited to, adult 
basic education, continuing education, independent study, agricultural 
education, business education and labor education, occupational educa-
tion and job training programs, jiarent education, postsecondaiy edu-
cation, preretirement and education for older and retired people, 
remedial education, special educational programs for groups or for 
individuals with special needs, and also educational activities designed 
to upgrade occupational and professional skills, to assist business, pub-
lic agencies, and other organizations in the use or innovation and 
research results, and to serve family needs and personal development. 
20 use 1015a. 
ii LIFELONG LEARNING ACTIVITIES 
"SEC. 133. (a) The Assistant Secretary shall carry out, from funds 
appropriated pursuant to section 101(D), a program of planning, 
assessing, and coordinating projects related to lifelong learning. In 
carrying out the provisions of this section, the Assistant Secretary 
shall— 
"(1) foster improved coordination of Federal support for life-
long learning programs; 
"(2) act as a clearinghouse for information regarding lifelong 
learning, including the identification, collection, and dissemina-
tion to educators and the public of existing and new information 
regarding lifelong learning programs which are or may be carried 
out and supported by any department or agency of the Federal 
Government; 
"(3) review present and proposed methods of financing and 
administering lifelong learning, to determine— 
" (A) the extent to which each promotes lifelong learning, 
"(B) program and administrative features of each that 
contribute to serving lifelong learning, 
"(C) the need for additional Federal support for lifelong 
learning, and 
"(D) procedures by which Federal assistance to lifelong 
learning may be better applied and coordinated to achieve the 
purposes of this title; 
"(4) review the lifelong learning opportunities provided 
through employers, unions, the media, libraries and museums, 
secondary schools and postsecondary educational institutions, and 
other public and private organizations to determine means by 
which the enhancement of their effectiveness and coordination 
may be facilitated; 
" (5) review existing major foreign lifelong learning programs 
and related programs in order to determine the applicability of 
such programs in this country; 
"(6) identify existing barriers to lifelong learning and evalu-
ate programs designed to eliminate such barriers; and 
" (7) to the extent practicable, seek the advice and assistance of 
the agencies of the Education Division (including the Office of 
Education, the National Institute of Education, the Fund for the 
Improvement of Postsecondary Education, and the National Cen-
ter for Education Statistics), other agencies of the Federal Gov-
ernment, public advisory groups (including the National Advisory 
Councils on Extension and Continuing Education, Adult Educa-
tion, Career Education, Community Education, and Vocational 
Education), Commissions (including the National Commission 
20 use lOlSh. 
20 use 1001. 
Information 
clearinghouse. 
90 STAT. 2088 
PUBLIC LAW 94-4fi2—OCT. 12, 1976 
on Libraries and Information Sciences and the National Com-
; 
mission on Manpower Policy), State agencies, and such other per-
sons or organizations as may be appropriate, in carrying out the 
Commissioner's responsibilities, and make maximum use of infor-
mation and studies already available. 
The review required by clause (3) of this subsection shall include— 
"(i) a comparative assessment of domestic and foreign tax and 
other incentives to encourage increased commitment of business 
and labor; 
"(ii) a study of alternatives such as lifelong learning entitle-
ment programs or educational vouchers designed to assist adults 
to undertake education or training in conjunction with, or in 
periods alternative to employment; 
"(iii) review of possible modifications to existing Federal and 
State student assistance programs necessary to increase their 
relevance to the lifelong learning needs of all adults; 
" (iv) the organization and design of funding for pre- and post-
retirement training and education for the elderly; and 
"(v) modifications to Federal and State manpower training, 
public employment, unemployment compensation, and similar 
funding programs so as to better facilitate lifelong education and 
training and retraining, for employment. 
"(b) After consultation with appropriate State agencies, the Assist-
ant Secretary is authorized— 
"(1) to assist in the planning and assessment, to determine 
whether in each State there is an equitable distribution of life-
long learning services to all segments of the adult population; 
" (2) to assist in assessing the appropriate roles for the Federal, 
State, and local governments, educational institutions and com-
munity organizations; and 
"(3) to assist in considering alternative methods of financing 
and delivering lifelong learning opportunities, including— 
"(A) identification of State agencies, institutions, and 
groups that plan and provide programs of lifelong learning, 
"(B) determination of the extent to which programs are 
available geographically, 
"(C) a description of demographic characteristics of the 
population served, 
"(D) analysis of reasons for attendance in programs of 
lifelong learning, and 
"(E) analysis of sources of funds for the conduct of life-
long learning programs, and the financial support of persons 
attending programs of lifelong learning. 
" (c) The Assistant Secretary is authorized, with respect to lifelong 
learning, to assess, evaluate the need for, demonstrate, and develop 
alternative methods to improve— 
"ri) research and development activities; 
"(2) training and retraining people to become educators of 
adults; 
"(3) development of curricula and delivery systems appropri-
ate to the needs of any such programs; 
"(4) development of techniques and systems for guidance 
and counseling of adults and for training and retraining of 
counselors; 
"(5) development and dissemination of instructional materials 
appropriate to adults; 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2089 
"(6) assessment of the educational needs and goals of older 
and retired persons and their unique contributions to lifelong 
learning programs; 
"(7) use of employer and union tuition assistance and other 
educational programs, educational and cultural trust funds and 
other similar educational benefits resulting from collective bar-
gaining agreements, and other private funds for the support of 
lifelong learning; 
" (8) integration of public and private educational funds which 
encourage participation in lifelong learning, including support 
of guidance and counseling of workers in order that they can 
make best use of funds available to them for lifelong learning 
opportunities; and 
"(9) coordination 
within 
communities 
among 
educators, 
employers, labor organizations, and other appropriate individuals 
and entities to assure that lifelong learning opportunities are 
designed to meet projected career and occupational needs of the 
community, after consideration of the availability of guidance 
and counseling, the availability of information regarding occupa-
tional and career opportunities, and the availability of appro-
priate educational and other resources to meet the career and 
occupational needs of the community. 
"(d) In carrying out the provisions of this section the Assistant 
Secretary is authorized to enter into agreements with, and to make 
grants to, appropriate State agencies, institutions of higher education, 
and public and private nonprofit organizations. 
"(e) In carrying out the provisions of this section, the Assistant Reports 
Secretary shall issue reports summarizing research and analysis con-
ducted pursuant to this section, and shall develop the resources and 
capability to analyze and make recommendations regarding specific 
legislative or administrative proposals which may be considered by 
the President or by the Congress. 
Agreements 
and grants, 
authorization. 
a 
REPORTS 
"SEC. 134. The Assistant Secretary shall transmit to the President 
and to the Congress a report on such results from the activities con-
ducted pursuant to this part as may be completed by January 1,1978, 
together with such legislative recommendations as he may deem 
appropriate. The Assistant Secretary shall similarly report annually 
thereafter.". 
Transmittal to 
President and 
Congress. 
20 u s e 1015c. 
PART B—COLLEGE LIBRARY ASSISTANCE AND LIBRARY TRAINING AND 
RESEARCH 
EXTENSION OF AUTHORIZATION 
SEC. 106. The first sentence of section 201(b) of the Act is amended 
by striking out all that follows "authorized to be appropriated" and 
inserting in lieu thereof "$110,000,000 for fiscal year 1977, $115,000,000 
for fiscal year 1978, and $120,000,000 for fiscal year 1979.". 
20 use 1021. 
90 STAT. 2090 
PUBLIC LAW 94-482—OCT. 12, 1976 
REVISION OP RESEARCH LIBRARY RESOURCES 
SEC. 107. Part C of title II of the Act is amended to read as follows: 
"PART C—STREXGTIIENINO RESEARCH LIBRARY 
RESOURCES 
"FINDINGS AND PURPOSE 
20 use 1041. 
"SEC. 231. (a) The Congress finds that— 
"(1) education, scholarship, and research are significant to the 
scientific, economic, and cultural development of the Nation, and 
that steady advances in the social and natural sciences are essential 
to solve the problems of a complex society; 
" (2) the Nation's major research libraries are often an essential 
element in undergraduate education, and are essential to advanced 
and professional education and research; and 
"(3) the expansion in the scope of educational and research 
programs and the rapid increase in the Avorldwide production 
of recorded knowledge have placed unprecedented demands upon 
major research libraries, requiring programs and services that 
strain the capabilities of cooperative action and are beyond the 
financial 
competence of individual or collective library budgets. 
"(b) It is the purpose of this part to promote research and edu-
cation of higher quality throughout the United States by providing 
financial 
assistance to major research libraries. 
"APPROPRIATIONS 
AUTHORIZED 
20 use 1042. 
"SEC. 232. There are authorized to be appropriated $10,000,000 for 
the fiscal year 1977, $15,000,000 for fiscal year 1978. and $20,000,000 
for fiscal year 1979. 
"ELIGIBILITY FOR ASSISTANCE 
"Major research 
"SEC. 233. For the purposes of this part, the term 'major research 
library." 
library' means a public or private nonprofit institution, including the 
zu usLi ivm. 
library resources of an institution of higher education, an independent 
research library, or a State or other public library, having library col-
lections which are available to qualified users and which— 
"(1) make a significant contribution to higher education and 
research; 
"(2) are broadly based and are recognized as having national 
or international significance for scholarly research; 
"(3) are of a unique nature, and contain material not widely 
available; and 
"(4) are in substantial demand by researchers and scholars not 
connected with that institution. 
"(b) No institution receiving a grant under this part for any fiscal 
year may be eligible to receive a basic grant under section 202 of this 
title for that year. 
"EQUITABLE DISTRIBUTION OF ASSISTANCE 
20 use 1044. 
"SEC. 234. The Commissioner shall establish criteria designed to 
achieve regional balance in the allocation of funds under this part 
Supra. 
which is reasonable in light of the requirements of section 233. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2091 
u 
LIMITATIONS 
"SEC. 235. (a) No grant may be made under this part for books, 
periodicals, documents, or other related materials to be used for sec-
tarian instruction or religious worship, or primarily in connection 
with any part of the program of a school or department of divinity. 
"(b) Not more than 150 institutions may receive a grant under this 
part. 
"CONSULTATION WITH STATE AGENCY 
"SEC. 236. Each institution receiving a grant under this part shall 
periodically inform the State Library administrative agency and 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 C—STRENGTHENING DEVELOPING INSTITUTIONS 
20 use 1045. 
20 use 1046. 
EXTENSION OF AUTHORIZATION 
SEC. 111. Section 301(b) of the Higher Education Act of 1965 is 
amended by striking out "July 1, 1975" and inserting in lieu thereof 
"October 1,1979". 
20 use 1051. 
REMOVAL OF RESTRICTIONS OX WAIVERS 
SEC. 112. Section 302(a) (2) of the Act is amended by striking out 
", except that such grants may not involve an expenditure of funds in 
excess of 1.4 per centum of the sums appropriated pursuant to this 
title for any fiscal year". 
PART D—STUDENT ASSISTANCE 
20 use 1052. 
B A S I C EDUCAITONAL OPPORTUNITY GRANTS 
SEC. 121. (a) Section 411(a)(1) of the Act is amended by strik-
ing out "June 30, 1975" and inserting in lieu thereof "September 30, 
1979". 
(b) (1) Section 411(a) (2) (A) (i) of the Act is amended by strik-
ing out "$1,400" and inserting in lieu thereof "$1,800". 
(2) The amendment made by paragraph (1) of this subsection shall 
be effective for academic year 1978-1979 and thereafter. 
(c) Divisions (i) and (ii) of section 411(a) (3) (A) of the Act are 
amended to read as follows: 
"(3) (A) (i) Not later than July 1 of each calendar year, the Com-
missioner shall publish in the Federal Register a schedule of expected 
family contributions for the academic year which begins after July 1 
of the calendar year which succeeds such calendar year for various 
levels of family income, which, except as is otherwise provided in divi-
sion (ii), together with any amendments thereto, shall become effec-
tive July 1 of the calendar year which succeeds such calendar year. 
During the thirty-day period following such publication the Com-
missioner shall provide interested parties with an opportunity to 
present their views and make recommendations with respect to such 
schedule. 
"(ii) The schedule of expected family contributions required by 
division (i) for each academic year shall be submitted to the Presi-
dent of the Senate and the Speaker of the House of Representatives 
not later than the time of its publication in the Federal Register. If 
20 u s e 1070a. 
Effective date. 
20 u s e 1070a 
note. 
,i 
Publication in 
Federal Register. 
Submittal to 
eongress. 
Publication in 
Federal Register. 
90 STAT. 2092 
PUBLIC LAW 94-482—OCT. 12, 1976 
either the Senate or the House of Representatives adopts, prior to the 
first day of October next following the submission of said schedule 
as required by this division, a resolution of disapproval of such 
schedule, the Commissioner shall publish a new schedule of expected 
family contributions in the Federal Register not later than 
fifteen 
days after the adoption of such resolution of disapproval. Such new 
schedule shall take into consideration such recommendations as may 
be made in either House in connection with such resolution and shall 
become effective, together with any amendments thereto, with respect 
to grants to be made on or after the first day of July next following. 
The Commissioner shall publish together with such now schedule, a 
statement identifying the recommendations made in either House in 
connection with such resolution of disapproval and explaining his 
reasons for the new schedule.''. 
20 use 1070a. 
(d) Section 411 (a) (3) (B) of the Act is amended— 
(1) by inserting at the end of division (ii) the following new 
subdivision: 
" ( V I ) Any educational expenses of other dependent children 
in the family.". 
; 
(2) by inserting immediately after "student)" in division (iii) 
the following: ", and including any amount paid under the 
Social Security Act to, or on account of, the student which would 
not be paid if he w^ere not a student and one-half any amount 
paid the student under chapters 34 and 35 of title 38, United 
States Code,"; and 
(3) by striking out division (iv). 
(e) Section 411(b) of the Act is amended by striking division (ii) 
of paragraph (3) (B) and redesignating subsequent divisions accord-
ingly, and by redesignating paragraph (4) and any references thereto 
as paragraph (5) and inserting after paragraph (3) a new paragraph 
as follows: 
"(4) (A) If the funds available for making payments under this 
subpart exceed the amount necessary to make the payments required 
under this subpart to eligible students by 15 per centum or less, then 
all of excess funds shall remain available for making payments under 
this subpart during the next succeeding fiscal year. 
"(B) If the funds available for makiiig payments under this sub-
part exceed the amount necessary to make the payments required 
under this subpart to eligible students by more than 15 per centum, 
then all of such funds shall remain available for making such pay-
' 
ments but payments may be made under this division only with respect 
to entitlements for that fiscal year.". 
Repeal. 
(f) Section 411 (b) (3) (C) of the Act is repealed. 
(g) Section 411(b)(5) of the Act (as redesignated by subsection 
Supra. 
(e)) is amended by striking out "Julv 1, 1975" and inserting in lieu 
thereof "October 1, 1979". 
(h) Section 411 of the Act is amended by adding at the end thereof 
the following new subsection: 
"(d)(1) In addition to payments made with respect to entitle-
ments xmder this subpart, each institution of higher education shall 
be eligible to receive from the Commissioner the payment of $10 per 
academic year for each student enrolled in that institution who is 
receiving a basic grant under this subpart for that year. Payment 
received by an institution under this subsection shall i3e used first to 
Post, p. 2148. 
carry out the provisions of section 493A of this Act and then for such 
additional administrative costs as the institution of higher education 
determines necessary. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2093 
"(2) There are authorized to be appropriated such sums as may be 
necessary to carry out the provisi(ms of this subsection. If the sums 
appropriated for any fiscal year for making payments under this 
subsection are not sufficient to pay in full the amoimts provided for 
in paragraph (1), then such amount will be ratably reduced. In case 
additional funds become available for making payments for any 
fiscal year during which the preceding sentence has been applied, 
such reduced amounts sluill be increased on the same basis as they 
Avere reduced." 
(i) Section 411 of the Act is further amended by adding at the end 
thereof the following additional subsection : 
"(e)(1) The Connnissioner shall enter into agreements with not 
less than two nor more than five States for the processing by such 
States of all applications of their residents (through an instrumen-
tality or agent selected by such State) for grants made under this 
subpart for the academic year beginning after July 1, 1977. on con-
dition that any State grants which are subsidized in part by Federal 
funds, during the period for which State processing of basic educa-
tion opportunity grant applications is carried out by the State, will 
be available to eligible State residents for use at the majority of 
educational institutions outside that State which are eligible institu-
tions under subpart 1 of this part. Xo later than ninety days after 
termination of the agreements, the Commissioner shall report to the 
Congress on the experience with multiple State processing, including 
its impact on the delivery of student aid to students, and including 
recommendations concerning whether the option of processing appli-
cations for grants under this subpart should be made available to 
all States having the capacity to do so. 
"(2) Any State entering into an agreement with the Commissioner 
shall— 
"(A) not be requiivd, without the State's consent, to perform 
services in excess of those required of any private agency or 
organization with whom the Commissioner has a contract to per-
form similar application processing, except svich additional serv-
ices as may be necessary to produce processing services of a type 
and quality equivalent to those produced, through the same or 
other means; and 
"(B) be required to detei-mine student eligibility for awards 
under this subpart solely on the basis of criteria set forth in this 
subpart and regulations pi'omulgated by the Commissioner pur-
suant thereto. 
"(3) The Commissioner shall promulgate such regulations as may 
be necessary— 
"(A) to determine a fair per unit fee for application processing 
which, if the Commissioner has a contract with an agency or 
organization to perform similar application processing, shall be 
no more than the amount paid by the Conmiissioner per appli-
cation for the same academic year to any such agency or organi-
zation; and 
"(B) to otherwise carry out the purposes of this subsection. 
"(4) Xothing contained in this section or other enactments of law 
shall be construed to prohibit any eligible State under subsection (c) 
of this section from— 
"(A) employing student application forms that solicit infor-
mation required for both the determination of elioibility under 
this subpart and for the determination of eligibility under the 
postsecondary educational grant programs of such State; and 
Appropriation 
authorization. 
20 u s e 1070a. 
Agreement. 
Report to 
Congress. 
Regulations. 
Fees for 
processing 
applications. 
9-194 O—78—pt. 2 
40 
90 STAT. 2094 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(B) coordinating the eligibility announcements of State post-
secondary educational grants and grants under this subpart. 
"(5) No State which enters into an agreement with the Commis-
sioner may impose any fee or other charge upon a student for process-
ing of the student's application for a grant under this subpart.". 
SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS 
20 use 1070b. 
SEC. 122. (a) Section 413A(b) (1) of the Act is amended by striking 
out "July 1, 1975" and inserting in lieu thereof "October 1, 1979". 
20USC1070b-2. 
(b) Section 413C(b)(4) of the Act is amended by striking out 
"464" and inserting in lieu thereof "494". 
* 
STATE STUDENT INCENTIVE GRANTS 
20 use 1070c. 
SEC. 123. (a) Section 415A(b) of the Act is amended by striking 
out "July 1,1975" and inserting in lieu thereof "October 1,1979", and 
by adding at the end thereof the following new |)aragraph: 
"(3) Sums appropriated pursuant to paragraphs (1) and (2) for 
any fiscal year shall remain available for payments to States for the 
award of student grants under this subpart until the end of the 
fiscal year succeeding the fiscal year for which such sums were 
appropriated.". 
20 use 1070C-2. 
(b) Section 415C(b) of the Act is amended by redesignating clauses 
(4) and (5) of such section, and all references thereto, as clauses (5) 
and (6), respectively, and by inserting after clause (3) thereof the 
following new clause: 
"(4) provides that, effective with respect to any academic year 
beginning on or after July 1, 1977, all nonprofit institutions of 
higher education in the State are eligible to participate in the 
State program;". 
(c)(1) Section 415A(b)(2) of the Act is amended by inserting 
before the period a comma and the following: "and to make bonus 
allotments to States pursuant to section 415E". 
20 use 1070C-1. 
(2) Section 4l5B(b) is amended by striking out the word "Sums" 
and inserting in lieu thereof the following: "Subject to the provisions 
of section 415E, sums". 
(3) Subpart 3 of part A of title IV of the Act is amended by insertp 
ing at the end thereof the following new section: 
" B O N U S 
A L L O T M E N T S 
F O R 
S T A T E 
S T U D E N T INCENTIVE GRANT PROGRAMS 
20 use 1070C-4. 
"SEC. 415E. Whenever the sum appropriated pursuant to this sub-
part for any fiscal year is in excess of $75,000,000 the Commissioner 
shall allot, from 331^ per centum of such excess sums, to each State 
having an agreement under section 428(b) an amount which bears the 
same ratio to such sum as the number of students in attendance at 
institutions of higher education in such State bears to the total num-
ber of students in such attendance in all such States.". 
20 use 1070d. 
20 use 1070(1-1. 
SPECIAL PROGRAMS FOR STUDENTS FROM DISADVANTAGED BACKGROUNDS 
SEC. 124. (a) Section 4l7A(b) of the Act is amended by inserting 
before the period a comma and the following: "and $200,000,000 for 
each of the fiscal years ending prior to October 1,1979". 
(b) (1) Section 417B(a) of the Act is amended by striking out "sec-
tion 417A(a)" and inserting in lieu thereof "subsection (b) of this 
section". 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2095 
(2) The matter preceding paragraph (1) of section 417B(b) of the 
Act is amended to read as follows: 
20USC 1070d-l. 
"(b) Services provided through grants and contracts under this 
subpart shall be specifically designed to assist in enabling youths from 
low-income families who have academic potential, but who may 
lack adequate secondary school preparation, who may be physically 
handicapped, or who may be disadvantaged because of severe rural 
isolation, to enter, continue, or resume programs of postsecondary 
education, including—". 
(3) Section 4l7B(b) (1) (A) of the Act is amended by inserting 
after the comma the following: "especially such youths who have 
delayed pursuing postsecondary educational training,". 
(4) The first sentence of section 417B (b) of the Act is amended by— 
(A) striking out "and" at the end of clause (3) of such sentence, 
(B) striking out the period at the end of clause (4) of such 
sentence and inserting in lieu thereof a semicolon and the word 
"and", and 
(C) adding at the end thereof the following new clause: 
"(5) a program of paying up to 90 per centum of the cost of 
establishing and operating or expanding service learning centers 
at institutions of higher education and other postsecondary edu-
cational institutions serving a substantial number of disadvan-
taged students which— 
"(A) will provide remedial and other special services for 
students who are enrolled or accepted for enrollment at that 
institution, and 
\ 
"(B) will serve, as a concentrated effort, to coordinate and 
supplement the ability of that institution to furnish such 
services to such students.". 
(5) Section 4l7B(b) of the Act is amended by adding at the end 
thereof the following new sentence: "Before makmg a grant or enter- Application, 
ing into a contract under clause (5) of the first sentence of this sub-
section the Commissioner may require any institution subject to such 
a contract or grant to submit an application containing or accompanied 
by such information, including the ability of that institution to pay 
the non-Federal share of the costs of the project to be assisted, as is 
essential to carry out the requirements of that clause.". 
(c) Section 417B of the Act is amended by adding at the end thereof 
the following new subsections: 
: ;; 
"(e) In making grants or entering into contracts under clause (1) 
or (5) of subsection (b) of this section the Commissioner may permit 
students or youths from other than low-income families, not to exceed 
one-third of the total served, to benefit by the"projects to be assisted 
pursuant to that grant or contract. 
"(f)(1) The Commissioner is authorized to enter into contracts Contracts, 
with institutions of higher education and other appropriate public 
agencies and nonprofit private organizations to provide training for 
staff and leadership personnel who will specialize in improving the 
delivery of services to students assisted under this subpart. 
"(2) Financial assistance under this subsection may be used for 
(A) the operation of short-term training institutes designed to 
improve the skills of participants in such institutes, and (B) the devel-
opment of inservice training programs for such personnel.". 
"(g) The Commissioner shall not make grants to programs author-
ized under clause (5) of subsection (b) of this section in any fiscal 
year in which the amount appropriated for carrying out this subpart 
is less than $70,331,000. 
90 STAT. 2096 
PUBLIC LAW 94-482—OCT. 12, 1976 
Federal share. 
20USC1070d-2. 
Post p. 2097. 
"Educational 
Information 
Center." 
"(h) It is the intention of the Congress to encourage, whenever 
feasible, the development of individualized programs for disadvan-
taged students assisted under this subpart.". 
EDUCATIONAL INFORMATION PROGRAM 
SEC. 125. Part A of title IV of the Act is amended by redesignating 
subpart 5, and all references thereto, as subpart 6, and by inserting 
immediately after subpart 4 the following new subpart: 
"Subpart 5—Educational Information 
"PROGRAM AUTHORIZATION 
"SEC. 418A. (a) The Commissioner shall, in accordance with the pro-
visions of this subpart, make grants to States to pay the Federal share 
of the cost of planning, establishing, and operating Educational Infor-
mation Centers to provide educational information, guidance, coun-
seling, and referral services for all individuals, including individuals 
residing in rural areas. 
" (b) (1) For the purpose of enabling the Commissioner to carry out 
this subpart, there are authorized to be appropriated $20,000,000 for 
fiscal year 1977, $30,000,000 for fiscal year 1978, and $40,000,000 for 
fiscal year 1979. 
"(2) The Commissioner shall allocate funds appropriated in each 
year under this subpart to each State submitting a plan approved 
under section 41 SB an amount which bears the same ratio to such 
funds as the population of such State bears to the population of all the 
States, except that for each fiscal year no State which submitted an 
approved plan shall receive from such funds less than $50,000 for that 
year. In making allocations under this paragraph, the Commissioner 
shall use the latest available actual data, including data on previous 
participation, which is satisfactory to him. 
"(c) The Federal share of the cost of planning, establishing, and 
operating Educational Information Centers for any fiscal year under 
this subpart shall be 66% per centum, and the non-Federal share may 
be in cash or in kind. 
"(d) For the purposes of this subpart, the term 'Educational 
Information Center' means an institution or agency, or combination of 
institutions or agencies, organized to provide services to a population 
in a geographical area no greater than that which will afford all per-
sons within the area reasonable access to the services of the Center. 
Such services shall include— 
"(1) information and talent search services designed to seek 
out and encourage participation in full-time and part-time post-
secondary education or training of persons who could benefit from 
such education or training if it were not for cultural or financial 
barriers, physical handicap, deficiencies in secondary education, or 
lack of information about available programs or financial assist-
ance; 
"(2) information and referral services to persons within the 
area served by the Center, including such services with regard to— 
"(A) postsecondary education and training programs in 
the region and procedures and requirements for applying and 
gaining acceptance to such programs; 
"(B) available Federal, State, and other financial assist-
ance, including information on procedures to be followed in 
applying for such assistance; 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2097 
"(C) available assistance for job placement or gaining 
admission to postsecondary education institutions including, 
but not limited to, such institutions offering professional, 
occupational, technical, vocational, work-study, cooperative 
education, or other education programs designed to prepare 
persons for careers, or for retraining, continuing education, 
or upgrading of skills; 
"(D) competency-based learning opportunities, including 
opportunities for testing of existing competencies for the pur-
pose of certification, awarding of credit, or advance place-
ment in postsecondary education programs; 
"(E) guidance and counseling services designed to assist 
persons from the area served by the Center to identify post-
secondary education or training opportunities, including 
part-time opportunities for individuals who are employed, 
appropriate to their needs and in relationship to each indi-
vidual's career plans; and 
"(F) remedial or tutorial services designed to prepare 
persons for postsecondary education opportunities or train-
ing programs, including such services provided to persons 
enrolled in postsecondary education institutions within the 
area served by the Center. 
Services may be provided by a Center either directly or by way of 
contract or other agreement with agencies and institutions within the 
area to be served by the Center. 
"(e) Nothing in this subpart shall be construed to affect funds 
allocated to the establishment and operation of Educational Oppor-
tunity Centers for the disadvantaged pursuant to section 417 
(B) (b) (4) of this part. 
20USC1070d-l. 
"ADMINISTRATION OF STATE PROGHAMS 
"SEC. 418B. (a) Each State receiving a grant under this part is 
authorized in accordance with its State plan submitted pursuant to 
subsection (b) of this section, to make grants to, and contracts with, 
institutions of higher education, including institutions with vocational 
and career education programs, and combinations of such institutions, 
public and private agencies and organizations, and local education 
agencies in combination with any institution of higher education, 
for planning, establishing, and operating Educational Information 
Outers within the State. 
"(b) Any State desiring to receive a grant under this subpart 
shall submit for the approval of the Commissioner a State plan, 
which shall include— 
" (1) a comprehensive strategy for establishment or expansion 
of Educational Information Centers, designed to achieve the 
goal, within a reasonable period of time, of making available 
within reasonable distance to all residents of the State the serv-
ices of an Educational Information Center; 
" (2) assurances concerning the source and availability of State, 
local, and private funds to meet the non-Federal share of the cost 
of the State plan required by section 418A(c) ; and 
Grants and 
contracts, 
authorization. 
20USC1070d-3. 
State plan, 
submittal. 
Ante, p. 2096. 
90 STAT. 2098 
PUBLIC LAW 94-482—OCT. 12, 1976 
20USC1070e-l. 
38 use 1651 et 
seq. 
38 use 1662. 
Administration. 
Report to 
eongress. 
20 use 1070e-l 
note. 
"(3) such other provisions as are essential to carry out the 
provisions of this subpart.". 
V E T E R A N S ' COST-Or-INSTRUCTION PAYMENTS 
SEC. 126. (a)(1) Section 420(a)(1) of the Act is amended by 
striking out "June 30, 1975" and inserting in lieu thereof "Septem-
ber 30, 1979". 
(2) Section 420(a) of the Act is amended by adding at the end 
thereof the following: 
"(3) During the period beginning July 1, 1976, and ending Sep-
tember 30, 1977, each institution which has qualified for payment 
under this section for the preceding year shall be entitled during such 
period, notwithstanding paragraph (1), to a payment under this 
section, if the number of persons referred to in such paragraph (1), 
equals whichever is the lesser of (A) at least the number of such 
persons who were in attendance at such institution during the pre-
ceding academic year less the number of such persons whose eligibility 
for educational assistance under chapter 34 of title 38, United States 
Code, expired on May 31, 1976, by virtue of section 1662(c) of such 
title, or (B) at least the minimum number of such persons necessary 
to establish eligibility to entitlement under paragraph (1) during 
the preceding academic year less the number of such persons whose 
eligibility for educational assistance under chapter 34 of title 38, 
United States Code, expired on May 31, 1976, by virtue of section 
1662(c) of such title.". 
(b) Section 420(c) (1) (B) (iii) of the Act is amended by inserting 
"(with special emphasis on educationally disadvantaged veterans)" 
after "outreach", and by inserting "(with special emphasis on the 
v^eteran-student services program under section 1685 of such title 38)" 
after "programs". 
(c) Section 420 of the Act is amended by adding at the end thereof 
the following new subsections: 
"(f) The Commissioner, in carrying out the provisions of this sec-
tion, shall seek to assure the coordination of programs assisted under 
this section with programs carried out by the Veterans' Administra-
tion pursuant to title 38 of the United States Code, and the Admin-
istrator of Veterans' Affairs shall provide all assistance, technical 
consultation, and information otherwise authorized by law as neces-
sary to promote the maximum effectiveness of the activities and pro-
grams assisted under this section. 
" (g) The program provided for in this section shall be administered 
by an identifiable administrative unit in the Office of Education.". 
(d) Not later than ninety days after the enactment of this Act, the 
Commissioner shall prepare and submit to the Congress a report con-
taining a summary of the activities and programs (including the num-
ber and characteristics of veterans served) at institutions of higher 
education receiving assistance under section 420 of the Higher Edu-
cation Act of 1965 (relating to veterans' cost-of-instruction payments) 
and a description of the steps taken (and the results thereof) to carry 
out his responsibility under subsection (c) (1) of that section to moni-
tor and determine the adequacy of efforts by such institutions. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2099 
FEDERAL AND STATE INSURED LOAN PROGRAMS 
SEC. 127. (a) Part B of title IV of the Act is amended to read as 
follows: 
"PART B—FEDERAL, STATE, AND PRIVATE PROGRAMS OF LOW-INTEREST 
INSURED 
LOANS 
TO 
STUDENTS 
IN 
INSTITUTIONS 
OF 
HIGHER 
EDUCATION 
"STATEMENT OF PURPOSE AND APPROPRIATIONS AUTHORIZED 
"SEC. 421. (a) The purpose of this part is to enable the Commis- 20 USC 1071. 
sioner (1) to encourage States and nonprofit private institutions and 
organizations to establish adequate loan insurance programs for stu-
dents in eligible institutions (as defined in section 435), (2) to pro-
vide a Federal program of student loan insurance for students or 
lenders who do not have reasonable access to a State or private non-
profit program of student loan insurance covered by an agreement 
under section 428(b), (3) to pay a portion of the interest on loans to 
qualified students which are made by a State under a direct loan pro-
gram meeting the requirements of section 428 (a) (1) (B), or which are 
insured under this part or under a program of a State or of a non-
profit private institution or organization which meets the require-
ments of section 428(c)(1)(A), and (4) to guarantee a portion of 
each loan insured 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 and 
for payments under section 437, such sums for the fiscal year 
ending June 30, 1966, and succeeding fiscal years, as may be 
required therefor, 
"(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 insur-
ance programs. 
"(4) there are authorized to be appropriated (A) the sum of 
$12,500,000 for making advances after June 30, 1968, pursuant to 
sections 422 (a) and (b), and (B) such sums as may be necessary 
for making advances pursuant to section 422(c), for the reserve 
funds of State and nonprofit private student loan insurance pro-
grams, and 
"(5) there are authorized to be appropriated such sums as may 
be necessary for the purpose of paying an administrative cost 
allowance in accordance with section 428(f) to State and non-
profit institutions and organizations with which the Commissioner 
has an agreement under section 428 (b). 
Sums appropriated under clauses (1), (2), (4), and (5) of this 
subsection shall remain available until expended, and sums appro-
priated under clause (3) of this subsection shall remain available for 
advances under section 422 until the close of the fiscal year ending 
June 30,1968. 
90 STAT. 2100 
PUBLIC LAW 94-482—OCT. 12, 1976 
Report to 
Congress. 
" (c) For purposes of carrying out this part— 
"(1) the Commissioner shall develop and execute a plan de-
signed to encourage the establishment of student loan insurance 
program by each State which does not have such a program 
covered by an agreement pursuant to section 428(b) ; 
"(2) the Commissioner shall make a report to the Congress 
within 180 days after the enactment of the Education Amend-
ments of 1976, containing a description of the plan developed 
according to paragraph (1) accompained by a timetable for the 
execution of such plan; and 
"(3) the Commissioner shall make a report to the Congress 
before June 30,1977, which shall include^— 
"(A) a description of the activities the Commissioner and 
his designees have undertaken pursuant to paragraph (1), 
"(B) a description of such State's plans to establish a 
program meeting the requirements of section 428(b), and 
"(C) the Commissioner's recommendations to the Con-
gress as to what changes in law, or policy would encourage 
the establishment of such a program in all States without 
such progr-ams. 
''ADVANCES FOR RESERVE FUNDS OF STATE AND NONPROFIT PRIVATE LOAN 
INSURANCE PRtXJRAMS 
20 use 1072. 
"SEC. 422. (a)(1) From the sums appropriated pursuant to clauses 
(3) and (4) (A) 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 reser^•e fund of the student loan insurance program 
covered by that agreement. If for any fiscal year a State does not have 
a student loan insurance program covered by an agreement made pur-
suant to section 428(b), and the Commissioner determines after con-
sultation with the chief executive officer of that State that there is no 
reasonable likelihood that the State will have such a student loan in-
surance 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 the State to 
participate in a program of student loan insurance covered by such an 
agreement. The Commissioner may make advances under this subsec-
tion both to a State program (with which he has such an agreement) 
and to one or more nonprofit private institutions or organizations 
(with w'hich he has such an agreement) 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 requirement of section 428 (b) (1). 
" (2) No advance shall me made after June 30,1968, unless matched 
by an equal amount from non-Federal sources. Such equal amount may 
"Unencumbered 
include the unencumbered non-Federal portion of a reserve fund. As 
non-Federal 
used in the preceding sentence, tlie term 'unencumbered non-Federal 
portion." 
portion' means the amount (determined as of the time immedi-
ately preceding the making of the advance) of the reserve fund less 
the greater of (A) the sum of (i) advances made under this section 
prior to July 1, 1968, (ii) an amount equal to twice the amount of 
advances made under this section after June 30, 1968, and before the 
advance for purposes of which the determination is made, and (iii) 
the proceeds of earnings on advances made under this section, or (B) 
any amount which is required to be maintained in such fund pursuant 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2101 
to State law or regulation, or by agreement with lenders, as a reserve 
against the insurance of outstanding loans. 
" (3) Advances pursuant to this subset^tion 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) (1) The total of the advances to any State prior to July 1, 
1968, pursuant to subsection (a) may not exceed an amount which 
bears the same ratio to 21/2 per centum of $700,000,000 as the popula-
tion of that State aged eighteen to twenty-two, inclusive, bears to the 
total population of all the States aged eighteen to twenty-two inclu-
sive. The amount available, however, for advances to any State for 
each fiscal year ending prior to July 1, 1968, shall not be less than 
$25,000, and any additional funds needed to meet this requirement 
shall be derived by proportionately reducing (but not below $25,000 
per year) the amount available for advances to each of the remaining 
States. Advances to nonprofit private institutions and organizations 
prior to July 1, 1968, pursuant to subsection (a) may be in such 
amounts as the Commissioner determines will best achieve the pur-
poses for which 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. 
"(2) The total of the advances from the sums appropriated pur-
suant to clause (4) (A) of section 421(b) to nonprofit private institu^ 
tions and organizations for the benefit of students in any State and 
(B) to such State may not exceed an amount which bears the same 
ratio to such sums as the population of such State aged eighteen to 
twenty-two, inclusive, bears to the population of all the States aged 
eighteen to twenty-two, inclusive, but such advances may otherwise 
be in such amounts as the Commissioner determines will best achieve 
the purposes for which they are made. The amount available, how-
ever, for advances to any State shall not be less than $25,000, and any 
additional funds needed to meet this requirement shall be derived by 
proportionately reducing (but not below $25,000) the amount avail-
able for advances to each of the remaining States. 
" (3) For the purposes of this subsection, the population aged eight-
een to twenty-two, inclusive, of each State and of all the States shall 
be determined by the Commissioner on the basis of the most recent 
satisfactory data available to him. 
"(c)(1) From sums appropriated pursuant to section 421(b)(4) 
(B), the Commissioner shall advance to each State which has an agree-
ment with the Commissioner under section 428(c) with respect to a 
student loan insurance program, an amount determined in accordance 
with paragraph (2) of this subsection to be used for the purpose of 
making payments under the State's insurance obligations under such 
program. 
"(2) (A) Except as provided in subparagraph (B), the amount to 
be advanced to each such State shall be equal to the greater of (i) 
$50,000, or (ii) 10 per centum of the principal amount insured by such 
agency on those loans on which the first payment of principal became 
due during the fiscal year immediately preceding the fiscal year in 
which the advance is made. 
90 STAT. 2102 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(B) The amount of any advance determined according to subpara-
graph (A) of this paragraph shall be reduced by (i) the amount of 
any advance or advances made to such State pursuant to this subsec-
tion at an earlier date, and (ii) the amount of the unspent balance of 
the advances made to a State pursuant to subsection (a). 
"(C) For purposes of subparagraph (B) the unspent balance of the 
advances made to a State pursuant to subsection (a) shall be that por-
^ 
tion of the balance of the State's reserve fund (remaining at the time 
of the State's first request for an advance pursuant to this subsection) 
which bears the same ratio to such balance as the Federal advances 
made and not returned by such State, pursuant to subsection (a), 
bears to the total of all past contributions to such reserve fund from all 
^ 
sources (other than interest on investment of any portion of the reserve 
fund) contributed since the date such State executed an agreement 
pursuant to section 428(b). 
"(3) The earnings, if any, on any investments of advances received 
pursuant to this subsection nmst be used for making payments under 
the State's insurance obligations. 
"(4) (A) No repayment of any advances made pursuant to this sub-
section shall be required until such time as the sum of the advances 
under this subsection exceeds 20 per centum of the State's outstanding 
insurance obligation determined in accordance with subparagraph 
(B) of this paragraph. 
N 
"(B) For purposes of this paragraph, a State's outstanding insur-
ance obligation shall be determined by subtracting from the total prin-
cipal amount of loans insured by the State since it entered into an 
agreement pursuant to section 428(b), the total principal amount of 
loans insured by such State which have been fully repaid by the bor-
rower, the State itself, or the Commissioner, and loans which have 
been canceled. 
" (C) At such time as advances pursuant to this subsection reach the 
level indicated in subparagraph (A) of this paragra{)h, the amount 
' 
of any excess shall be paid over to the Commissioner in a lump sum 
at the beginning of each fiscal year for deposit in the fund established 
by section 431. 
"(5) Advances pursuant to this subsection shall be made to a 
J 
State— 
" (A) in the case of a State which is actively carrying on a pro-
gram under an agreement pursuant to section 428(b) which was 
entered into before the effective date of this subsection, upon such 
date as such State may request, but not before October 1,1977, and 
on the same day of each of the tw^o succeeding calendar years after 
the date so requested; and 
" (B) in the case of a State which enters into an agreement pur-
suant to section 428(b) on or after the effective date of this sub-
section, upon such date as such State may request, but not before 
October 1, 1977, and on the same day of each of the four succeed-
ing calendar years after the date so requested of the advance. 
"(6) (A) If for any fiscal year a State does not have a student loan 
insurance program covered by an agreement made pursuant to section 
428(b), and the Commissioner determines after consultation with the 
' 
chief executive officer of that State that there is no reasonable likeli-
hood that the State will have such a student loan insurance program 
for such year, the Commissioner may make advances pursuant to this 
subsection for such year for the same purpose to one or more nonprofit 
' 
private institutions or organizations wdth which he has made an agree-
,' 
ment pursuant to subsection (c), as well as subsection (b), of section 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2103 
428 and subparagraph (B) of this paragraph in order to enable stu-
dents in that State to participate in a program of student loan insur-
ance covered by such agreements. 
"(B) The Commissioner may enter into an agreement with a private 
nonprofit institution or organization for purposes of this paragraph 
under which such institution or organization— 
"(i) agrees to establish within such State at least one office 
with sufficient staff to handle written and telephone inquiries 
from students, eligible lenders, and other persons in the State, to 
encourage maximum commercial lender participation within the 
State, and to conduct periodic visits to at least the major eligible 
lenders within the State, 
"(ii) agrees that its insurance will not be denied any student 
because of his choice of eligible institutions or the student's lack of 
need, and 
"(iii) certifies that it is neither an institution, nor has any sub-
stantial affiliation with an institution. 
Agreement with 
private nonprofit 
institution or 
organization. 
EFFECTS o r ADEQUATE NON-FEDERAL PROGRAMS 
"SEC. 423. (a) Except as provided in subsections (b) and (c), the 20 U
S
C 1073. 
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 
under section 428(b), 
"(b) The Commissioner may issue certificates of insurance under 
section 429 to a lender in a State—• 
"(1) for insurance of a loan made to a student borrower who 
does not, by reason of his residence, have access to loan insurance 
under the loan insurance program of such State (or under any 
private nonprofit loan insurance program which has received an 
advance under section 422 for the benefit of students in such 
State), or 
" (2) for insurance of all of the loans made to student borrowers 
by a lender who satisfies the Commissioner that, by reason of the 
residence of such borrowers, such lender will not have access to any 
single State or nonprofit private loan insurance program which 
will insure substantially all of the loans such lender intends to 
make to such student borrowers. 
"(c) The Commissioner shall not deny, becaiise of any provision 
of this section, a certificate of insurance under section 429 to any eligi-
ble lender which is an eligible institution if such lender has previously 
executed an agreement with the Commissioner pursuant to section 433 
of this part, unless the Commissioner determines, based upon studies 
and surveys satisfactory to him, that access to a loan by all eligible 
students who make an active and diligent effort to obtain a loan under 
this part will be otherwise available. In order to carry out the provi-
sions of the preceding sentence the Conmiissioner shall periodically 
assess the availability of loans to eligible students through studies 
and surveys undertaken by him and through review of properly con-
ducted studies and surveys made available to him. 
SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM 
"SEC. 424. (a) The total principal amount of new loans made and 20 U
S
C 1074. 
installments paid pursuant to lines of credit (as defined in section 
435) to students covered by Federal loan insurance under this part 
90 STAT. 2104 
PUBLIC LAW 94-482—OCT. 12, 1976 
shall not exceed $1,400,000,000 for the fiscal year ending June 30,1972, 
$1,600,000,000 for the fiscal year ending June 30, 1973, $1,800,000,000 
for the fiscal year ending June 30, 1974, $2,000,000,000 for each of the 
fiscal years ending June 30, 1975, and 1976, and $2,000,000,000 for the 
u, 
period from July 1, 1976, to September 30, 1976, and for each of the 
succeeding fiscal years ending prior to October 1, 1981, Thereafter, 
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 
September 30, 1985. 
"(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, 
within 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 
.f; 
LOAN INSURANCE 
20 use 1075. 
"SEC. 425. (a) (1) The total of loans made to a student in any 
academic year or its equivalent (as determined by the Commissioner) 
which may be covered by Federal loan insurance under this part may 
not exceed $2,500 in the case of a student who has not successfully 
completed a program of undergraduate education, or $5,000 in the 
case of a graduate or professional student (as defined in regulations of 
the Commissioner), except— 
" (A) that in the case of a loan to a student who is or will be in 
his first year of a program of undergraduate education, and who 
has not previously enrolled in such a program which is made by 
an eligible lender as described in section 435(g) (1) (D) or which 
is made or originated (as defined in section 433(b)) by an eligible 
institution, the loan may not exceed the lesser of $2,500 or 50 per 
centum of the estimated cost of attendance (calculated in accord-
ance with the provisions of section 428(a) (2) (C) (i)), 
"(B) that in the case of a loan made or originated (as defined 
in section 433(b)) by an eligible institution which is made to a 
student for his first academic year of postsecondary education, 
the loan may exceed $1,500 only if it is to be disbursed in two or 
more installments none of which exceeds one-half of the loan, 
with the interval between the first and second of such installments 
being not less than one-third of the period of enrollment for 
which the student received the loan, and 
Regulations. 
"(C) in cases where the Commissioner determines, pursuant 
to regulations prescribed by him, that a higher amount is war-
ranted in order to carry out the purposes of this part with respect 
to students engaged in specialized training requiring exceptionally 
high cost of education. 
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) The aggregate insured unpaid principal amount for all such 
' ''•-•' 
insured loans made to any student shall not at any time exceed $7,500, 
in the case of any student who has not successfully completed a pro-
gram of undergraduate education, and $15,000 in the case of any 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2105 
graduate or professional student (as defined by regulations of the 
Commissioner and including any loans which are insured by the Com-
missioner under this part, or by a State or nonprofit institution or 
organization with which the Commissioner has an agreement under 
section 428(b), made to such person before he became a graduate or 
professional student). 
"(b)(1)(A) Except as provided in subparagraph (B), the insur-
ance 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 plus interest, except that— 
,. 
"(i) if, for any fiscal year, the total amount of payments under 
section 430 by the Commissioner to any eligible lender as described 
in section 435(g) (1) (D) exceeds 5 per centum of the sum of the 
loans made by such lender which are insured by the Commissioner 
and which were in repayment at the end of the preceding fiscal 
year, the insurance liability under this subsection for that portion 
of such excess which represents loans insured after the applicable 
date with respect to such loans, as determined under subparagraph 
(C), shall be equal to 90 per centum of the amount of such portion ; 
"(ii) if, for any fiscal year, the total amount of such payments 
to such a lender exceeds 9 per centum of such sum, the insurance 
liability under this subsection for that portion of such excess 
which represents loans insured after the applicable date with 
respect to such loans, as determined under subparagraph (c), 
shall be equal to 80 per centum of the amount of such portion. 
"(B) Notwithstanding subparagraph (A), the provisions of clauses 
(i) and (ii) shall not apply to an eligible lender as described in section 
435(g) (1) (D) for the fiscal year in which such lender begins to carry 
on a loan program insured by the Commissioner, or for any of the 
four succeeding fiscal years. 
"(C) The applicable date with respect to a loan made by an eligible 
lender as described in section 435(g) (1) (D) shall be— 
"(i) the 90th day after the adjournment of the next regular 
session of the appropriate State legislature which convenes after 
the date of enactment of the Education Amendments of 1976, or 
"(ii) if the primary source of lending capital for such lender 
is derived from the sale of bonds, and the constitution of the 
appropriate State prohibits a pledge of such State's credit as 
security against such bonds, the day which is one year after such 
90th day. 
"(2) For the purposes of this subsection, the sum of the loans made 
by a lender which are insured by the Commissioner and which are in 
repayment shall be the original principal amount of loans made by 
such lender which are insured by the Commissioner reduced by (A) 
the amount the Commissioner has been required to pay to discharge 
his insurance obligations under this part, (B) the original principal 
amount of loans insured by the Commissioner which have been fully 
repaid, (C) the original principal amount insured on those loans for 
which payment of first installment of principal has not become due 
pursuant to section 427(a) (2) (B) or such first installment need not 
be paid pursuant to section 427(a) (2) (C), and (D) the original prin-
cipal amount of loans repaid by the Commissioner under section 437. 
"(3) For the purposes of this subsection, payments by the Com-
missioner under section 430 to an assignee of the lender with respect to 
a loan shall be deemed payments made to such lender. 
" (4) The full faith and credit of the United States is pledged to the 
payment of all amounts which may be required to be paid under the 
provisions of section 430 or 437 of this part." 
90 STAT. 2106 
PUBLIC LAW 94-482—OCT. 12, 1976 
ii SOURCES OF rUNDS 
20 use 1076. 
"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. 
"ELIGIBILITY or STUDENT BORROWERS AND TERMS or FEDERALLY INSURED 
STUDENT LOANS 
20 use 1077. 
"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, (B) is carrying at least one-half of the normal 
fulltime workload as determined by the institution, and (C) has 
agreed to notify promptly the holder of the loan concerning any 
change of address; 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 or unless the student, during the nine- to twelve-
month period preceding the start of the repayment period, 
specifically requests that repayment be made over a shorter 
period) 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 agree-
ment evidencing it, 
"(iii) that the note or other written instrument may 
contain such provisions relating to repayment in the 
event of default in the payment of interest or in the pay-
ment 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, 
and 
" (iv) that the lender and the student, 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, may agree to a repayment schedule which 
begins earlier, or is of shorter duration, than required by 
this subparagraph, except that in the event a student 
has requested and obtained a repayment period of less 
than five years, he may at any time prior to the total re-
payment of the loan, have the repayment period extended 
so that the total repayment period is not less than five 
years, 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2107 
"(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 'eligible institution', or is pursuing a 
course of study pursuant to a graduate fellowship program 
approved 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, (iii) not in excess of three years 
during which the borrower is in service as a volunteer under 
the Peace Corps Act, (iv) not in excess of three years during 
which the borrower is in service as a full-time volunteer under 
the Domestic Volunteer Service Act of 1973, or (v) during a 42 USC 4951 
single period, not in excess of twelve months, at the request °°*®-
of the borrower, during which the borrower is seeking and 
unable to find full-time employment, and any such period 
shall not be included in determining the ten-year period or 
the fifteen-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 install-
ment of principal falls due, in which case interest that has so 
accrued during that period may be added on that date to the 
principal, 
"(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, and that the lender will enter into such agreements 
with the Commissioner as may be necessary for the purposes 
of section 437. 
"(F) entitles the student borrower to accelerate without 
penalty repayment of the whole or any part of the loan, 
"(G) provides that, in the case of each loan insured by 
the program, the eligible institution attended by the bor-
rower at the time of the loan will be notified of such insur-
ance and the name of the lender making the loan, and such 
notification will be made either by (i) the prompt transmittal 
,; 
of such information to the institution by the insurer or the 
lender, or (ii) a requirement of the insurer, as a condition 
of its insurance, that the lender shall transmit any checks 
for the proceeds of such loan directly to the eligible institu-
tion for delivery to the borrower; 
"(H) the funds borrowed by a student are disbursed by 
check payable to the order and requiring the endorsement of 
such student, and 
"(I) contains such other terms and conditions, consistent 
with the provisions of this part and with the regulations 
issued by 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 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. 
90 STAT. 2108 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(b) No maximum rate of interest prescribed and defined by the 
Secretary for the purposes of clause (2) (D) of subsection (a) may 
exceed 7 per centum per annum on the 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 under this part shall not 
unless the borrower and the lender otherwise agree, be less than $360 
or the balance of all of such loans (together with interest thereon), 
whichever amount is less, except that in the case of a husband and 
wife, both of whom have such loans outstanding, the total of the 
UMf, 
) 
combined payments for such a couple during any year shall not be 
less than $360 or the balance of all such loans, whichever is less. 
u 
FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS 
20 use 1078. 
"SEC. 428. (a) (1) Each student who has received a loan for study 
at an 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 which 
was contracted for, and paid to the student, within the period 
specified by paragraph (5) ; 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 (5), and which— 
" (i) in the case of a loan insured prior to July 1,1967, was 
made by an eligible lender and is insured under a program 
! 
which meets the requirements of subparagraph (E) of sub-
section (b) (1) and provides that repayment of 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 institution, or 
"(ii) in the case of a loan insured after June 30, 1967, is 
insured under a program covered by an agreement made 
pursuant to subsection (b), 
shall be entitled to have paid on his behalf and for his account to the 
holder of the loan a portion of the interest on such loan under circum-
stances described in paragraph (2). 
Interest 
"(2) (A) Each student qualifying for a portion of an interest pay-
payment, 
ment under paragraph (1) shall— 
"(i) have provided to the lender a statement from the eligible 
institution, at which the student has been accepted for enrollment, 
or at which he is in attendance in good standing (as determined 
by such institution), which— 
" (I) sets forth such student's estimated costs of attendance 
and 
"(II) sets forth such student's estimated financial assist-
ance; and 
"(ii) meet the requirements of subparagraph (B). 
"(B) For the purposes of clause (ii) of subparagraph (A), a stu-
dent shall qualify for a portion of an interest payment under para-
graph (1) if such student's adjusted family income at the time of 
execution of the note or written agreement evidencing such loan— 
" (i) is less than $25,000; or 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2109 
"(ii) is equal to or greater than $25,000 and the eligible institu-
tion has provided the lender with a statement evidencing a deter-
mination of need and recommending a loan in the amount of such 
need. 
"(C) For the purposes of paragraph (1) and this paragraph— 
Definitions. 
"(i) a student's estimated cost of attendance means, for the 
period for which the loan is sought, the tuition and fees applicable 
to such student together with the institution's estimate of other 
expenses reasonably related to attendance at such institution, 
including, but not limited to, the cost of room and board, reason-
able commuting costs, and costs for books; 
"(ii) a student's estimated financial assistance means, for the 
period for which the loan is sought, the amount of assistance such 
student will receive under parts A, C, and E of this title, plus 
other scholarship, grant, or loan assistance; 
"(iii) the term 'eligible institution' when used with respect to 
a student is the eligible institution at which the student has been 
accepted for enrollment or, in the case of a student who is in 
attendance at such an institution, at which the student is in good 
standing (as determined by such institution); 
"(iv) the determination of need and the amount of a loan rec-
ommended by an eligible institution under subparagraph (B) 
(ii) with respect to a student shall be determined by subtracting 
from the estimated cost of attendance at such institution the total 
of the expected family contribution with respect to such student 
(as determined by means other than one formidated by the Com-
missioner under subpart 1 of part A of this title) plus any other 
resources or student financial assistance reasonably available to 
such student. 
"(D) For the purposes of this paragraph, the adjusted family 
income of a student shall be determined pursuant to regulations of the 
Commissioner in effect at the time of the execution of the note or writ-
ten agreement evidencing the loan. Such regulations shall provide for 
taking into account such factors, including family size, as the Com-
missioner deems appropriate. In the absence of fraud by the lender, 
such determination of the need of a student under this paragraph 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. 
"(3) (A) Except as provided in paragraph (8), the portion of the 
in*-erest 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) of this subsection shall be equal to the total amount of the interest 
on the unpaid principal amount of the loan which accrues prior to the 
beginning of the repayment period of the loan, or which accrues dur-
ing a period in which principal need not be paid (whether or not such 
principal is in fact paid) by reason of a provision described in sub-
section (b) (1) (M) of this section or in section 427(a) (2) (C); but, 
except as provided in paragraph (8) of this subsection, 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 l3y 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 inter-
est 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 
90 STAT. 2110 
PUBLIC LAW 94-482—OCT. 12, 1976 
the account of the borrower at such times as may be specified in regula-
tions 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, 
.5,.., 
at such times as may be specified in regulations in force at the time the 
loan was paid to the student. 
"(B) If (i) a State student loan insurance program is covered by an 
agreement under subsection (b), (ii) a statute of such State limits 
the interest rate on loans insured by such program to a rate which is 
less than 7 per centum per annum on the unpaid principal balance, 
and (iii) the Commissioner determines that section 428(d) does not 
inake such statutory limitation inapplicable and that such statutory 
limitation threatens to impede the carrying out of the purposes of this 
part, then he may pay an administrative cost allowance to the holder 
of each loan which is insured under such program and which is made 
during the period beginning on the sixtieth day after the date of 
20 use 1001 
enactment of the Higher Education Amendments of 1968 and ending 
note. 
120 days after the adjournment of such State's first regular legis-
lative session which adjourns after January 1, 1969. Such administra-
tive cost allowance shall be paid over the term of the loan in an 
amount per annum (determined by the Commissioner) which shall 
not exceed 1 per centum of the unpaid principal balance of the loan. 
"(4) Each holder of a loan with respect to which payments of 
interest 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 
Commissioner to determine the amount of the payment which he 
must make with respect to that loan. 
"(5) The period referred to in subparagraphs (B) and (C) of 
paragraph (1) of this subsection shall begin on the date of enactment 
of this Act and end at the close of September 30, 1981, except that, in 
tlie case of a loan made or insui'ed under a student loan or loan insur-
ance program to enable a student who has obtained a prior loan made 
or insured under such program to continue his educational program, 
i-uch period shall end at the close of September 30,1985. 
"(6) 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 II of the National Defense PMucation Act of 1958 or part E of 
20 use 401 note, this title. 
20 use 1088. 
"(7) Nothing in this or any other Act shall be construed to pro-
hibit or require, unless otherwise specifically provided by law, a 
lender to evaluate the total financial situation of a student making 
application for a loan under this part, or to counsel a student with 
respect to any such loan, or to make a decision based on such evalua-
tion and counseling with respect to the dollar amount of any such 
loan. 
"(8) (A) In the case of any eligible lender (other than an eligible 
institution or an agency or'instrumentality of a State), which is 
approved by the Commissioner pursuant to subparagraph (B) of this 
paragraph for the purpose of authorizing multiple disbursements 
and which enters into a binding agreement with a student to make 
a loan— 
"(i) for which the student is entitled to have a portion of the 
interest paid on his behalf under this section, and 
"(ii) the proceeds of which loan are to be paid to the student 
in multiple disbursements over the period of enrollment for 
which the loan is made, but not to exceed twelve months, 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2111 
the amount of the interest payment and the amount of any special 
allowance payment to be paid under section 438 shall be determined 
as if the entire amount to be made available for that period of enroll-
ment had been disbursed on the date on which the first installment 
thereof was disbursed, and any increase in the rate of interest on the 
loan attributable to such multiple disbursements shall not be deemed 
to violate any provision of this part relating to the maximum rate of 
interest on such loan. The provisions of this paragraph shall apply 
only in the case of loans paid in multiple disbursements, in accord-
ance with regulations of the Commissioner, based on the need of the 
student for the proceeds of such loan over the course of the academic 
year. 
"(B) Tlie Commissioner may approve an eligible lender for the 
purposes of tliis paragraph if he determines— 
"(i) that such lender is making or will be making a substantial 
volume of loans on which an interest subsidy is payable under this 
section, and 
"(ii) that such lender has sufficient experience and administra-
tive capability in processing such loans to enable the lender to 
make such multiple disbursements in accordance with regulations 
issued by the Commissioner under this subparagraph. 
" (9) With respect to any loan for which a portion of the interest is 
payable under this section, in the case of a student attending an eligible 
institution which is located in other than a State, the determinations 
to be made (except determinations of good standing) and the statement 
to be provided by such institution under paragraph (2)(A)(i) and 
(2) (B) (ii) of this subsection shall be made and provided by (A) the 
Commissioner in the case of a loan described by paragraph (1) (A), 
(B) the State in the case of a loan described by paragraph (1) (B), 
or (C) the State or a nonprofit private institution or organization 
as the case may be, in the case of a loan described by paragraph 
(1)(C). 
" (b) (1) Any State or any nonprofit private institution or organiza-
tion may enter into an agreement with the Commissioner for the pur-
pose of entitling students who receive loans which are insured under 
a student loan insurance program of that State, institution, or orga-
nization 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 $2,500 in the case of a student who has not successfully com-
pleted a program of undergraduate education, or $5,000 in the 
case of a graduate or professional student (as defined in regula-
tions of the Commissioner), except— 
"(i) that the program may not authorize the insurance of 
a loan which is made by an eligible lender as described in 
section 435(g)(1)(D) or which is made or originated (as 
defined in section 433(b)) by an eligible institution to a stu-
dent who has not successfully completed a program of under-
graduate education in an amount in excess of $2,500 or 50 
per centum of the estimated cost of attendance (calculated 
in accordance with section 428(a) (2) (C) (i)), 
" (ii) that the program may not authorize the insurance of a 
loan in excess of $1,500 for an academic year which is made 
or originated (as defined in section 433(b)) by an eligible 
institution, and is made to a student for his first academic 
year of postsecondary education, unless the loan is to be dis-
bursed in two or more installments, none of which exceeds 
Eligible 
lender. 
Agreement 
with 
Commissioner. 
90 STAT. 2112 
PUBLIC LAW 94-482—OCT. 12, 1976 
one-half of the loan, with the interval between the first and 
second of such installments being not less than one-third of 
the period of enrollment for which the student received the 
loan, and 
"(iii) in cases where the Commissioner determines, pursu-
ant to regulations prescribed by him, that a higher amount 
is warranted in order to carry out the purposes of this part 
with respect to students engaged in specialized training 
requiring exceptionally high costs of education, 
but 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 years in excess 
of the annual limit; 
"(B) provides that the aggregate insured unpaid principal 
amount for all such insured loans made to any student shall not 
at any time exceed $7,500, in the case of any student who has not 
successfully completed a program of undergraduate education, 
and $15,000 in the case of any graduate or professional student (as 
defined by regulations of the Commissioner and including any 
loans which are insured by the Commissioner under this part, or 
by a State or nonprofit institution or organization with which the 
Commissioner has an agreement under section 428(b), made to 
such person before he became a graduate or professional student); 
"(C) authorizes the insurance of loans to any individual stu-
dent for at least six academic years of study or their equivalent 
(as determined under regulations of the Commissioner); 
"(D) provides that (i) the student borrower shall be entitled to 
accelerate without penalty the whole or any part of an insured 
loan, (ii) except as provided in subparagraph (M) of this para-
graph, the period of any insured loan may not exceed fifteen 
years from the date of execution of the note or other written evi-
dence of the loan, and (iii) the note or other written evidence 
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; 
"(E) subject to subparagraphs (D) and (L) of this para-
graph and except as provided by subparagraph (M) of this para-
graph, provides that repayment of loans shall be in installments 
over a period of not less than five years (unless the student, dur-
ing the nine- to twelve-month period preceding the start of the 
repayment period, specifically requests that repayment be made 
over a shorter period) nor more than ten years beginning not 
earlier than nine months nor later than one year after the student 
ceases to pureue a full-time course of study at an eligible institu-
tion, except— 
"(i) 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; 
"(ii) that the lender and the student, 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, may agree to a repayment schedule which begins 
earlier, or is of shorter duration, than required by this sub-
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2113 
paragraph, except that in the event a student has requested 
and obtained a repayment period of less than five years, he 
may at any time prior to the total repayment of the loan 
have the repayment period extended so that the total repay-
ment period is not less than five years; 
"(F) authorizes interest on the unpaid balance of the loan at 
a yearly rate not in excess of 7 per centum per annum on the 
unpaid principal balance of the loan (exclusive of any premium 
for insurance which may be passed on to the borrower) ; 
"(G) insures not less than 80 per centum of the unpaid prin-
cipal of loans insured under the program; 
"(H) does not provide for collection of an excessive insurance 
premium; 
"(I) provides that the benefits of the loan insurance program 
will not be denied any student who is eligible for interest benefits 
under section 428(a) (1) and (2) except in the case of loans made 
by an instrumentality of a State or eligible institution; 
"(J) provides that a student may obtain insurance under the 
program for a loan for any year of study at an eligible institution; 
"(K) in the case of a State program, provides that such State 
program is administered by a single State agency, or by one or 
more nonprofit private institutions or organizations imder super-
vision of a single State agency; 
"(L) provides that the total of the payments by a borrower 
during any year of any repayment period with respect to the ag-
gregate amount of all loans to that borrower which are insured 
under this part shall not be less than $360 or the balance of all 
such loans (together with interest thereon), whichever amount 
is less, unless the borrower and the lender otherwise agree, except 
that, in the case of a husband and wife, both of whom have such 
loans outstanding, the total of the combined payments for such a 
couple during any year shall not be less than $360 or the balance 
of all such loans, whichever is less; 
"(M) 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 eligible institution, or is pursuing a course 
of study pursuant to a graduate fellowship program approved 
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, (iii) not in excess of three years during which 
the borrower is in service as a volunteer under the Peace Corps 
Act, (iv) not in excess of three years during which the borrower 22 USC 2501 
is in service as a full-time volunteer under the Domestic Volun- "ote. 
teer Service Act of 1973, or (v) during a single period, not in 42 U
S
C 4951 
excess of twelve months, at the request of the borrower, during note, 
which the borrower is seeking and unable to find full-time 
employment; 
"(N) provides that in the case of each loan insured by the 
program that the eligible institution attended by the borrower 
at the time of the loan will be notified of such insurance and the 
name of the lender making the loan, and such notification will 
be made either by (i) the prompt transmittal of such information 
to the institution by the insurer or the lender, or (ii) a require-
ment of the insurer, as a condition of its insurance, that the lender 
shall transmit any checks for the proceeds of such loan directly 
to the eligible institution for delivery to the borrower; 
90 STAT. 2114 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(O) provides that funds borrowed by a student are disbursed 
by check payable to the order and requiring the endorsement of 
such student; 
"(P) provides that the borrower shall, within four months 
after ceasing to carry at an eligible institution at least one-half 
the normal full-time academic workload as determined by the 
institution, contact the holder of his loan to negotiate the terms 
of his repayment obligations, and 
"(Q) requires the borrower to promptly notify the holder of 
the loan concerning any change of address. 
"(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 determine 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 interests of the United States and promote 
the purposes of this part, including such provisions as may be 
necessary for the purpose of section 437, and as are agreed to by 
the Commissioner and the State or nonprofit private organiza-
tion 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 Commis-
sioner may find necessary to assure the correctness and verifica-
tion of such reports. 
"(c)(1)(A) The Commissioner may enter into a guaranty agree-
ment with any State or any nonprofit private institution or organiza-
tion with which he has an agreement pursuant to subsection (b), 
whereby the Commissioner shall undertake to reimburse it, under such 
tei-ms and conditions as he may establish, with respect to losses (result-
ing from the default of the student borrower) on the unpaid bal-
ance of the principal and accrued interest of any insured loan with 
respect to which a portion of the interest is payable by the Commis-
sioner under subsection (a), or would be payable under such subsec-
tion but for the borrower's lack of need. Except as provided in 
subparagraph (B) of this paragraph and in paragraph (7), the 
amount to be paid a State or nonprofit private institution or organiza-
tion as reimbursement under this subsection shall be equal to 80 per 
centum of the amount expended by it in discharge of its insurance 
obligation incurred under its loan insurance program. 
"(B) Any State or any nonprofit private institution or organiza-
tion which has entered into a supplementary agreement under section 
428A of this Act whereby the Commissioner agrees to reimburse the 
State or nonprofit private institution or organization, under such 
terms and conditions as he may establish, with respect to losses 
(resulting from the default of the student borrower) on the unpaid 
balance of the principal and accrued interest of any such insured loan 
in an amount equal to 100 per centum of the amount expended by it 
in the discharge of its insurance obligation incurred under its loan 
insurance program, except that— 
"(i) if, for any fiscal year, the amount of such reimbursement 
payments by the Commissioner under this subsection exceeds 5 per 
centum of the loans which are insured by such institution or orga-
nization under such program and which were in repayment at the 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2115 
r 
end of the preceding fiscal year, the amount to be paid as reim-
bursement under this subsection for such excess shall be equal to 
90 per centum of the amount of such excess; and 
"(ii) if, for any fiscal year, the amount of such reimbursement 
payments, exceed 9 per centum of such loans, the amount to be 
paid as reimbursement under this subsection for such excess shall 
be equal to 80 per centum of the amount of such excess. 
"(C) For purposes of this subsection, the amount of loans of a State 
or nonprofit private institution or organization which are in repay-
ment shall be the original principal amount of loans insured by it 
reduced by (i) the amount the insurer has been required to pay to 
discharge its insurance obligations under this part, (ii) the original 
principal amount of loans insured by it which have been fully repaid, 
• = • j 
(iii) the original principal amount insured on those loans for which 
r s 
payment of the first installment of principal has not become due 
pursuant to section 428(b) (1) (E) or such first installment need not 
be paid pursuant to section 428 (b) (1) (M), and (iv) the original prin-
cipal amount of loans repaid by the Commissioner under section 437. 
"(2) The guaranty agreement— 
Guaranty 
"(A) shall set forth such administrative and fiscal procedures agreement, 
as may be necessary to protect the United States from the risk of 
unreasonable loss thereunder, to insure proper and efficient 
administration of the loan insurance program, and to assure that 
due diligence will be exercised in the collection of loans insured 
under the program; 
"(B) shall provide for making such reports, in such form and Reports, 
containing such information, as the Commissioner may reason-
ably require to carry out his functions under this subsection, 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) shall set forth adequate assurance that, with respect to 
so much of any loan insured under the loan insurance program 
as may be guaranteed by the Commissioner pursuant to this sub-
section, the undertaking of the Commissioner under the guaranty 
. ,,, •
• 
agreement is acceptable in full satisfaction of State law or regula-
tion requiring the maintenance of a reserve; 
"(D) shall provide that if, after the Commissioner has made 
payment under the guaranty agreement pursuant to paragraj)h 
(1) of this subsection with respect to any loan, any payments are 
made in discharge of the obligation incurred by the borrower with 
respect to such loan (including any payments of interest accruing 
on such loan after such payment by the Commissioner), there shall 
be paid over to the Commissioner (for deposit in the fund estab-
lished by section 431) such proportion of the amounts of such 
payments as is determined (in accordance with paragraph (6)) 
to represent his equitable share thereof, but shall not otherwise 
•
> 
provide for subrogation of the United States to rights of any 
insurance beneficiary: Provided^ That, except as the Commis-
sioner may otherwise by or pursuant to regulation provide, 
amounts so paid by a borrower on such a loan shall be first applied 
^ 
in reduction of principal owing on such loan; 
"(E) shall set forth adequate assurance that an amount equal 
to each payment made under paragraph (1) will be promptly 
deposited in or credited to the accounts maintained for purposes 
of section 422(c) ; and 
"(F) may include such other provisions as may be necessary to 
/i 
promote the purposes of this part. 
90 STAT. 2116 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 use 981 
note. 
"(3) To the extent provided in regulations of the Commissioner, a 
guaranty agreement under this subsection may contain provisions 
which permit such forebearance for the benefit of the student bor-
rower as may be agreed upon by the parties to an insured loan and 
approved by the insurer. 
Definitions. 
"(4) For purposes of this subsection, the terms 'insurance benefi-
ciary' and 'default' shall have the meanings assigned to them by sec-
tion 430(e). 
"(5) In the case of any guaranty agreement entered into prior to 
September 1, 1969, with a State or nonprofit private institution or 
organization with which the Commissioner has in effect on that date 
an agreement pursuant to subsection (b) of this section, or section 
9(b) of the National Vocational Student Loan Insurance Act of 1965, 
made prior to the date of enactment of this subsection, the Commis-
sioner may, in accordance with the terms of this subsection, undertake 
to guarantee loans described in paragraph (1) which are insured by 
such State, institution, or organization and are outstanding on the date 
of execution of the guaranty agreement, but only with respect to 
defaults occurring after the execution of such guaranty agreement or, 
if later, after its effective date. 
"(6) (A) For the purpose of paragraph (2) (D) the Commissioner's 
equitable share of payments made by the borrower pursuant to such 
paragraph shall be that portion of the payments remaining after the 
State or the nonprofit private institution or organization with which 
the Commissioner has an agreement under this subsection has deducted 
from such payments (i) a percentage amount equal to the comple-
ment of the reinsurance percentage in effect when payment under the 
guaranty agreement was made with respect to the loan and (ii) an 
amount equal to the administrative costs of collection of the loan and 
the administrative costs of preclaims assistance for default prevention 
(as such terms are defined in subparagraph (B) of this subsection) 
reimbursed pursuant to subsection (f), to the extent such costs do not 
exceed 30 per centum of such payments. 
"(B) For the purpose of this paragraph, the term— 
"(i) 'administrative costs of collection of the loan' means any 
administrative costs incurred by a guaranty agency which are 
directly related to the collection of the loan on which a default 
claim has been paid to the participating lender, including the 
attributable compensation of collection personnel (and in the case 
of personnel who perform several functions for such an agency 
only the portion of compensation attributable to the collection 
activity), attorney's fees, fees paid to collection agencies, postage, 
equipment, supplies, telephone and similar charges, but does not 
include the overhead costs of such agency whether or not attribut-
able and 
"(ii) 'administrative costs of preclaim assistance for default 
prevention' means any administrative costs incurred by a guar-
anty agency which are directly related to providing collection 
assistance to the lender on a delinquent loan, prior to the loan's 
being legally in a default status, including the attributable com-
pensation of appropriate personnel (and in the case of personnel 
who perform several functions for such an agency only the por-
tion of compensation attributable to the collection activity), fees 
paid to locate a missing borrower, postage, equipment, supplies, 
telephone and similar charges, but does not include the overhead 
costs of such agency whether or not attributable, 
Regulation. 
subject to such additional criteria as the Commissioner may by regu-
lation prescribe. 
"Administrative 
costs of 
collection of 
the loan." 
"Administrative 
costs of 
preclaim 
assistance 
for default 
prevention." 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2117 
"(7) (A) Notwithstanding paragraph (1)(B), the amount to be 
paid a State or a nonprofit private institution or organization for any 
fiscal year—• 
"(i) which begins on or after the effective date of this para-
graph; and 
"(ii) which is either the fiscal year in which such State, insti-
tution, or organization begins to actively carry on a student loan 
insurance program which is subject to a guarantee agreement 
under this subsection, or is one of the four succeeding fiscal years, 
shall be 100 per centum of the amount expended by such State, orga-
nization, or institution in discharge of its insurance obligation insured 
under such program. 
"(B) The Commissioner shall continuously monitor the operations 
of those States and nonprofit private institutions or organizations to 
which the provisions of subparagraph (A) are applicable and revoke 
the application of such subparagraph to any such State or nonprofit 
private institution or organization which he determines has not exer-
cised reasonable prudence in the administration of such program. 
"(d) No provision of any law of the United States (other than 
sections 427(a) (2) (D) and 427(b) of this Act) or of any State (other 
than a statute applicable principally to such State's student loan 
insurance program) which limits the rate or amount of interest payable 
on loans shall apply to a loan— 
"(1) which bears interest (exclusive of any premium for 
insurance) on the unpaid principal balance at a rate not in excess 
of 7 per centum per annum, and 
" (2) which is insured (A) by the United States under this part, 
or (B) by a State or nonprofit private institution or organization 
under a program covered by an agreement made pursuant to sub-
section (b) of this section. 
"(e) (l) Each eligible institution shall be eligible to receive from 
the Commissioner the payment of $10 per academic year for each stu-
dent enrolled in that institution who is in receipt of a loan described in 
paragraph (1) of subsection (a) of this section, for that year. Pay-
ments received by an institution under this subsection shall be used 
first by the institution to carry out the provisions of section 493A of 
Post p. 2148. 
this Act and then for such additional administrative costs as that 
institution determines necessary. 
"(2) There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this subsection. If the sums 
appropriated for any fiscal year for making payments under this sub-
section are not sufficient to pay in full the amounts provided for in 
paragraph (1), then such amount will be ratably reduced. In case 
additional funds become available for making payments for any fiscal 
year during which the preceding sentence has been applied, such 
reduced amounts shall be increased on the same basis as they were 
reduced. 
"(f) (1) (A) The Commissioner is authorized to make payments in 
accordance with the provisions of this paragraph to any State or any 
nonprofit private institution or organization with which he has an 
agreement under subsection (b) of this section, for the purposes of— 
"(i) the administrative costs of promotion of commercial lender 
participation; 
" (ii) the administrative costs of collection of loans; 
"(iii) the administrative costs of preclaims assistance for 
default prevention; or 
" (iv) other such costs related to the student loan insurance pro-
gram subject to such agreement. 
90 STAT. 2118 
PUBLIC LAW 94-482—OCT. 12, 1976 
The total amount of payments for any fiscal year made under this par-
agraph shall not exceed one-half of 1 per centum of the total principal 
amount of the loans upon which insurance was issued under this part 
during- such fiscal year by such State, or institution or organization. If 
the sums appropriated for any fiscal year for making payments under 
this paragraph are not sufficient to pay in full the amounts provided 
for which such States, institutions, and organizations are eligible, then 
such amount wil I be ratably reduced. In case additional funds become 
available for making payments for any fiscal year during which the 
preceding sentence has been applied, such reduced amounts shall be 
increased on the same basis as they were reduced. 
"(B) Each State or nonprofit private institution or organization to 
which subparagraph (A) of this paragraph applies shall spend not 
less than y^ of the payments received pursuant to this paragraph on 
the purposes described in clause (i) or subparagraph (A), not less 
than 1/^ of such payments on the purposes described in clauses (ii) and 
(iii) o^ subparagraph (A), and the remaining amount of such pay-
ments on the purpose described in clause (iv) of such subparagraph. 
"(2) (A) The Commissioner is authorized to make payments in 
accordance with the provisions of this paragraph to any State or any 
nonprofit private institution or organization with which he has a sup-
plemental guaranty agreement under section 428A(a) (2) of this Act 
for the purposes of— 
" (i) the administrative costs of promotion of commercial lender 
participation; 
" (ii) the administrative costs of collection of loans; 
"(iii) the administrative costs of preclaims assistance for 
default prevention; or 
" (iv) other such costs related to the student loan insurance pro-
gram subject to such agreement. 
The total amount of payments for any fiscal year made under this par-
agraph shall not exceed an additional one-half of 1 per centum of the 
total principal amount of the loans upon which insurance was issued 
under this pait during such fiscal year by such State, or institution or 
organization. If the sums appropriated for any fiscal year for making 
payments under this paragraph are not sufficient to pay in full the 
amounts provided for which such States, institutions, and organiza-
tions are eligible, then such amount will be ratably reduced. In case 
additional funds become available for making payments for any fiscal 
year during which the preceding sentence has been applied, such 
reduced amounts shall be increased on the same basis as they were 
reduced. 
"(B) The provisions of subparagraph (B) of paragraph (1) shall 
apply to any payments made under subparagraph (A) of this 
paragraph. 
Definitions. 
" (3) For the purpose of this subsection, the term— 
"(A) 
'administrative costs of promotion of commercial 
lender participation' means any administrative costs incurred 
by an insurer which are directly related to supervising, training, 
or informing eligible lenders or prospective eligible lenders or 
inducing such lenders to improve or expand their program par-
ticipation, and such costs may include (i) the costs of planning 
and executing instructional seminars and the costs of attending 
other meetings with lenders, (ii) the costs of obtaining or pro-
ducing instructional or promotional materials or equipment for 
distribution to, or use with, lenders, (iii) postage costs asso-
ciated with the distribution of instructional or promotional 
materials to lenders, (iv) an appropriate share of the costs of 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2119 
establishing branch offices to serve the needs of lenders which 
are geographically distant from such insurer's primary business 
location, and (v) an appropriate share of the compensation of 
personnel whose primary responsibility is the training, super-
vising, or recruiting of lenders, but not including personnel whose 
primary responsibilities are the performing or supervising such 
duties as relate to the routine processing of borrower applica-
tions for loans or the maintenance of supporting records but in 
no case shall any such costs include any overhead expenses of such 
insurer associated with the insurer's primary business location. 
"(B) 'administrative costs of collection of loans' means any 
administrative costs incurred by a guaranty agency which are 
directly related to the collection of loans on which default claims 
have been paid to participating lenders, including the compensa-
tion of collection personnel (and in the case of personnel who 
perform several functions for such an agency only the portion of 
compensation attributable to collection activities), attorney's fees, 
fees paid to collection agencies, postage, equipment, supplies, tele-
phone and similar charges, but does not include the overhead costs 
of such agency, and 
"(C) 'administrative costs of preclaim assistance for default 
prevention' means any administrative costs incurred by a guar-
anty agency which are directly related to providing collection 
assistance to lenders on delinquent loans, prior to the loans being 
legally in a default status, including the compensation of appro-
priate personnel (and in the case of personnel who perform several 
functions for such an agency only the portion of compensation 
attributable to collection activities) fees paid to locate missing 
borrowers, postage, equipment, supplies, telephone and similar 
charges, but does not include the overhead costs of such agency, 
subject to such additional criteria as the Commissioner may by regu- Regulation, 
lation prescribe. 
"(4) (A) No payment may be made under paragraph (1) of this Application, 
subsection unless the State or the nonprofit private institution or orga-
nization submits to the Commissioner an application at such time, at 
least aimually, in such manner, and containing or accompanied by 
such information, as the Commissioner may reasonably require. Each 
such application shall— 
"(i) contain provisions designed to demonstrate the capability 
of carrying out a necessary and successful program of collection 
of and preclaim assistance for the loan program subject to that 
agreement; 
"(ii) set forth an estimate of the costs which are eligible for 
payment under the provisions of this subsection; 
"(iii) provide for such administrative and fiscal procedures, 
including an audit, as are necessary to carry out the provisions of 
this subsection; and 
"(iv) set forth assurances that the State or the nonprofit pri-
vate institution or organization will furnish such data and infor-
mation, including where necessary estimates, as the Commissioner 
may reasonably require to carry out the provisions of this 
subsection. 
"(B) No payment may be made under paragraph (2) of this subsec- Application, 
tion unless the State or the nonprofit private institution or organization 
submits to the Commissioner an application, at such time, at least 
annually, in such manner, and containing or accompanied by such 
information as the Commissioner may reasonably require. Each such 
application shall— 
90 STAT. 2120 
PUBLIC LAW 94-482—OCT. 12, 1976 
Notification to 
congressional 
committees. 
"(i) set forth assurances that the student loan insurance pro-
gram subject to the supplemental guaranty agreement complies 
with clauses (A) through (F) of paragraph (2) of section 428A 
"(ii) contain provisions designed to demonstrate the capability 
of carrying out a necessary and successful program of collection 
of and preclaim assistance for the loan program subject to that 
agreement; 
"(iii) set forth an estimate of the costs which are eligible for 
payment under the provisions of this subsection; 
"(iv) provide for such administrative and fiscal procedures, 
including an audit, as are necessary to carry out the provisions of 
this subsection; and 
"(v) set forth assurances that the State or the nonprofit private 
institution or organization will furnish such data and information, 
including where necessary estimates, as the Commissioner may 
reasonably require to carry out the provisions of this subsection. 
"(g) If a nonprofit private institution or organization (1) applies 
to enter into an agreement with the Commissioner under subsections 
(b) and (c) with respect to a student loan insurance program to be 
carried on in a State with which the Commissioner does not have an 
agreement under subsection (b), and (2) as provided in the applica-
tion, undertakes to meet the requirements of section 422(c) (6) (B) (i), 
(ii), and (iii), the Commissioner shall consider and act upon such 
application within 180 days, and shall forthwith notify the Committee 
on Labor and Public Welfare of the Senate and the Committee on 
Education and Labor of the House of Representatives of his actions. 
"IX)AN INSURANCE SUPPLEMENTAL GUARANTY AGREEMENT 
20 use 1078-1. 
"SEC. 428A. (a) (1) The Commissioner may enter into a supple-
mental guaranty agreement, annually, with any State or any non-
profit private institution or organization having a guaranty agreement 
under section 428(c) (1) whereby the Commissioner shall undertake to 
reimburse the State or nonprofit private institution or organization, 
under such terms and conditions as he may establish, in an amount 
determined in accordance with section 428(c) (1) (B), if the Commis-
sioner determines that the student loan insurance program— 
" (A) authorizes the insurance of loans in any amount up to a 
maximum of $2,500 (in the case of a student who has not success-
fully completed a program of undergraduate education) or $5,000 
(in the case of a graduate or professional student) to any indi-
vidual student in any academic year or its equivalent (as deter-
mined under regulations of the Commissioner), which limit shall 
not be deemed exceeded by a line of credit under which actual 
payments by the lender to the borrower will not be made in any 
such year in excess of such annual limit; and provides that the 
aggregate insured unpaid principal amount of all such insured 
loans made to any student shall be any amount up to a maximum 
of $7,500 in the case of any student who has successfully com-
pleted a program of undergraduate education, and $15,000 in the 
case of any graduate or professional student (as defined by regu-
lations of the Commissioner and including any loans which are 
insured by the Commissioner under this part, or by a State or non-
profit institution or organization with which the Commissioner 
has an agreement under this part, made to such person before he 
became a graduate or professional student); 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2121 
"(B) insures not less than 100 per centum of the unpaid prin-
cipal of the loans insured under the program, whether or not 
such loans are eligible for interest subsidies under this part; 
"(C) provides for the insurance of loans for part-time study 
at an eligible institution in the same manner as is provided under 
the Federal student loan insurance program; 
" ( D ) provides no restrictions with respect to the insurance of 
loans for students who are otherwise eligible for loans under 
such program if such a student is a legal resident of the State and 
if such a student is accepted for enrollment in or is attending an 
eligible institution outside that State; 
" ( E ) provides no restrictions with respect to eligible institu-
tions that are residential institutions which are more onerous 
than eligibility requirements for institutions under the Federal 
student loan insurance program, unless (i) that institution is 
ineligible under i-egulations for the limitation, suspension, or 
termination of eligible institutions under the Federal student 
loan insurance program or is ineligible pursuant to criteria issued 
under the student loan insurance program which are substan-
tially the same as regulations with respect to such eligibility 
issued under the Federal student loan insurance program, or (ii) 
there is a State constitutional prohibition affecting the eligibility 
of such an institution; and 
" ( F ) provides (i) for the eligibility of the eligible institu-
tions as lenders under reasonable criteria, unless (I) that eligible 
institution is eliminated as the lender under regulations for the 
limitation, suspension, or termination of eligible institutions 
under the Federal student loan insurance program or is elimi-
nated as a lender pursuant to criteria issued under the student 
loan insurance program which are substantially the same as reg-
ulations with respect to such eligibility as a lender issued under 
the Federal student loan insurance program, or (II) there is a 
State constitutional prohibition affecting the eligibility of such 
an institution as a lender, and (ii) assurances that the State Report to 
or nonprofit private institution or organization will report to Commissioner, 
the Commissioner not later than July 1, 1977, and annually 
thereafter, concerning such criteria, including any special require-
ments for the eligibility of such lenders, procedures in effect 
imder such program to limit, suspend, or terminate such lenders, 
a list of applications of such lenders, a summary of actions taken 
on such applications, and a list of the names of all such lenders 
within the State. 
"(2) The Commissioner may enter into a supplemental guaranty 
agreement, annually, with any State or any nonprofit private insti- 
I 
tution or organization having a guaranty agreement under section 
' 
428(c) (1) for the purpose of qualifying such State or nonprofit pri-
vate institution or organization for payment of administrative cost 
allowances under section 428(f)(2) if the Commissioner determines 
that the student loan insurance program— 
"(A) authorizes the insurance of loans in any amount up to a 
maximum of $2,500 (in the case of a student who has not success-
fully completed a program of undergr-aduate education) or $5,000 
(in the case of a graduate or professional student) to any indi-
vidual student in any academic year or its equivalent (as deter-
mined under regulations of the Commissioner), which limit shall 
not be deemed exceeded by a line of credit under which actual 
payments by the lender to the borrower will not be made in any 
such year in excess of such annual limit; and provides that the 
90 STAT. 2122 
PUBLIC LAW 94-482—OCT. 12, 1976 
Report to 
Commissioner. 
aggregate insured unpaid principal amount of all such insured 
loans made to any student shall be any amount up to a nuiximum 
of $7,500 in the case of any student who has successfully completed 
a program of undergraduate education, and $15,000 in the case of 
any graduate or professional student (as defined by regulations 
of the Commissioner and including any loans which are insured by 
the Commissioner under this part, or by a State or nonprofit 
institution or organization with which the Commissioner has an 
agreement under this part, made to such person before he became 
a graduate or professional student); 
"(B) insures not less than 100 per centum of the unpaid prin-
cipal of the loans insured under the program, whether or not such 
loans are eligible for interest subsidies under this part; 
"(C) provides for the insurance of loans for parttime study 
at an eligible institution in the same manner as is provided under 
the Federal student loan insurance program; 
"(D) provides no restrictions with respect to the insurance of 
loans for students who are otherwise eligible for loans under 
such program if such a student is a legal resident of the State, 
or if such a student is accepted for enrollment in or is attending 
an eligible institution within that State; 
" ( E ) provides no restrictions with respect to eligible institu-
tions that are residential institutions which are more onerous than 
eligibility requirements for eligible institutions under the Federal 
student loan insurance program, unless (i) that eligible institu-
tion is ineligible under regulations for the limitation, suspension, 
or termination of eligible institutions under the Federal student 
loan insurance program or is ineligible pursuant to criteria issued 
under the student loan insurance program which are substantially 
the same as regulations with respect to such eligibility issued 
under the Federal student loan insurance program, or (li) there 
is a State constitutional prohibition affecting the eligibility of 
such an institution; 
" ( F ) provides (i) for the eligibility of the eligible institu-
tions as lenders under reasonable criteria, unless (I) that eligible 
institution is eliminated as a lender under regulations for the 
limitation, suspension, or termination of eligible institutions 
under the Federal student loan insurance program or is elimi-
nated as a lender pursuant to criteria issued under the student 
loan insurance program which are substantially the same as 
regulations with respect to such eligibility as a lender issued 
under the Federal student loan insurance program, or (II) there 
is a State constitutional prohibition affecting the eligibility of 
such an institution as a lender, and (ii) assurances that the State 
or nonprofit private institution or organization will report to 
the Commissioner not later than July 1, 1977, and annually 
thereafter, concerning such criteria, including any special require-
ments for the eligibility of such lenders, procedures in effect 
under such program to limit, suspend, or terminate such lenders, 
a list of applications of such lenders, a summary of actions taken 
on such applications, and a list of the names of all such lenders 
within the State. 
"(b) Each supplemental guaranty agreement entered into under 
subsection (a) — 
" (1) shall set forth such administrative and fiscal procedures as 
may be necessary to protect the United States from the risk of 
unreasonable loss thereunder, to insure proper and efficient admin-
istration of the loan insurance program, and to insure that due 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2123 
diligence will be exercised in the collection of loans insured under 
the program; 
" (2) shall set forth adequate assurance that the requirements of 
paragraph (1) or paragraph (2) of subsection (a) of this section, 
as the case may be, are met; 
" (3) shall provide for the making of such reports, in such form, 
and containing such information as the Commissioner may reason-
ably 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 
•-- 'i • 
verification of such reports; 
"(4) shall set forth adequate assurance that, with respect to so 
much of any loan insured under the loan insurance program as 
may be guaranteed by the Commissioner pursuant to subsection 
(a) of this section, the undertaking of the Commissioner under 
the supplemental guaranty agreement is acceptable in full satis-
faction of State law or regulation requiring the maintenance of a 
reserve; 
"(5) shall provide that if, after the Commissioner has made 
payment under the supplemental guaranty agreement pursuant to 
this section with respect to any loan, any payments are made in 
discharge of the obligation incurred by the borrower with respect 
to such loan (including any payments of interest accruing on such 
loan after such payment by the Commissioner), there shall be paid 
over to the Commissioner (for deposit in the fund established by 
section 431) such portion of the amount of such payments as is 
determined (in accordance with regulations prescribed by the 
Commissioner) to represent his equitable share tliereof, but shall 
not otherwise provide for subrogation of the United States to the 
rights of any insurance beneficiary: Provided^ That, except as the 
Commissioner may otherwise by or pursuant to regulation pro-
vide, amovmts so paid by a borrower on such a loan shall be first 
applied in reduction of principal owing on such loan; and 
"(6) may include such other provisions as may be necessary to 
promote the purposes of this part. 
"(c) (1) To the extent provided in regulations of the Commissioner, 
a supplemental guaranty agreement under this section may contain 
provisions which permit such forbearance for the benefit of the stu-
dent borrower as may be agreed upon by the parties to an insured loan 
and approved by the insurer. 
"(2) For purposes of this section, the terms 'insurance beneficiary' Definitions, 
and 'default' shall have the meanings assigned to them by section 
430(e). 
"CERTIFICATE o r FEDERAL LOAN I N S U R A N C E 
^EFFECTIVE 
DATE OF INSURANCE 
"SEC. 429. (a) (1) If, upon application by an eligible lender, made 20 U
S
C 1079. 
upon such form, containing such information, and supported by such 
evidence as the Commissioner may require, and otherwise in con-
formity with this section, the Commissioner finds that the applicant 
has made a loan to an eligible student which is insui'able under the 
provisions 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 
the certificate, except that the Commissioner is authorized, in accord-
90 STAT. 2124 
PUBLIC LAW 94-482—OCT. 12, 1976 
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). 
Application. 
"(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 
issuing a separate certificate of insurance for each student loan made 
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) pro-
visions 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 defaidt therein, and including pro-
vision for confirmation by the Commissioner from time to time 
(through endoi'sement of the certificate) of the coverage of specific 
new loans by such certificate, which confirmation shall be incontestable 
by the Commissioner 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 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 in subsection (a) or by inclusion of such insurance on com-
prehensive 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 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2125 
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 permanently dis-
abled, if (1) notice of such default or other event has been duly given, 
and (2) requests 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 imder subsection 
(b), the Commissioner may amend that certificate accordingly. 
"DEFAULT 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, and prior to 
the commencement of suit or other enforcement proceedings upon 
security for that loan, the insurance beneficiary shall promptly notify 
the Commissioner, and the Commissioner shall if requested (at that 
time or after further collection efforts) by the beneficiary, or may on 
his own motion, if the insurance is still in effect, pay to the beneficiary 
the amount of the loss sustained by the insured upon that loan as soon 
as that amount 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 and interest accrued from the date of submission of a valid 
default claim (as determined by the Commissioner) to the date on 
which payment is authorized by the Commissioner, reduced to the 
extent required by section 425(b). Such beneficiary shall be required 
to meet the standards of due diligence in the collection of the loan. 
"(b) Upon payment of the amount of the loss pursuant to subsection 
(a), the United States shall be subrogated for 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 that recovery (including rea-
sonable administrative costs) exceeds the amount of the loss, the 
excess shall be paid over to the insured. The Commissioner may, in 
attempting to make recovery on such loans, contract with private busi-
ness concerns. State student loan insurance agencies, or State guaranty 
agencies, for payment for services rendered by such concerns or agen-
cies in assisting the Commissioner in making such recovery. Any con-
tract under this subsection entered into by the Commissioner shall 
provide that attempts to make recovery on such loans shall be fair and 
reasonable, and do not involve harassment, intimidation, false or mis-
leading representations, or unnecessary communications concern-
ing the existence of any such loan to persons other than the student 
borrower. 
Notification to 
Commissioner. 
20 use 1080. 
"Amount of the 
loss." 
9-194 O—78—pt. 2 
42 
90 STAT. 2126 
PUBLIC LAW 94-482—OCT. 12, 1976 
"Insurance 
beneficiary." 
"Default." 
"(c) Nothing in this section or in this part shall be construed to 
preclude any forebearance 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 forebearance by the 
Commissioner in the enforcement of the insured obligation after pay-
ment on that insurance. 
"(d) Nothing in this section or in 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) (4) and sec-
tion 429(a) (3), or to pay the required Federal loan insurance pre-
miums, 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 
existed for (A) one hundred and twenty days in the case of a 
loan which is repayable in monthly installments, or (B) one hun-
dred and eighty days in the case of a loan which is repayable in 
less frequent installments. 
u 
INSURANCE FUND 
Establishment. 
"SEC. 431. (a) There is hereby established a student loan insurance 
20 use 1081. 
fund (hereinafter in this section called the 'fund') which shall be 
available without fiscal j^ear limitation to the Commissioner for mak-
ing payments in connection with the default of loans insured by him 
under this part, or in connection with payments under a guaranty 
agreement under section 428(c). All amounts received by the Commis-
sioner as premium 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, any 
excess advances under section 422(c) (4) (C), 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 Com-
missioner under this part, or in connection with such guaranty agree-
Investments. 
ments shall be paid from the fund. ISIoneys 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. 
Notes or other 
"(b) If at any time the moneys in the fund are insufficient to make 
obligations. 
payments in connection with the default of any loan insured by the 
Commissioner imder this part, or in connection with any guaranty 
agreement made under section 428(c) or 428A (a)(1), the Commis-
sioner is authorized, to the extent provided in advance by appropria-
tions Acts, to issue to the Secretary of the Treasury notes or other 
obligations in such forms and denominations, bearing such matu-
rities, and subject to such terms and conditions as may be prescribed 
by the Commissioner with the approval of the Secretary of the Treas-
ury. Such notes or other obligations shall bear interest at a rate 
determined by the Secretary of the Treasury, taking into considera-
'
•
*
• -O h^t-M' 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2127 
tion the current average market yield on outstanding marketable 
obligations of the United States of comparable maturities during the 
month preceding the issuance of the notes or other obligations. The 
Secretary of the Treasury is authorized 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 the Second Liberty Bond 
Act, as amended, and the purposes for which securities may be issued 31 USC 774. 
under that Act, as amended, are extended to include any purchase 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. 
' . i i; J 
"LEGAL POWERS AND RESPONSIBILITIES 
''J 
"SEC. 432, (a) In the performance of, and with respect to, the func- 20 USC 1082. 
tions, powers, and duties vested in him by this part, the Commissioner 
may— 
"(1) prescribe such regulations as may be necessary to carry Regulations, 
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 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 
.i,^- ;
,
-
^ ^ ,-1. r-
in that office; but no attachment, injunction, garnishment, or 
other similar process, me^ne or final, shall be issued against the 
Commissioner 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 509, 517, 547, and 
2679 of title 28 of the United States Code; 
.,c^? a 
"(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 modification 
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 pay-
ment 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 or any guarantee agreement under 
f^r, '': 
section 428(c); and 
"(6) enforce pay, compromise, Avaive, or release any right, title, 
claim, lien, or demand, however acquired, including any equity or 
any right of redemption. 
90 STAT. 2128 
PUBLIC LAW 94-482—OCT. 12, 1976 
Budget program, 
submittal. 
31 u s e 841 note. 
Integral set of 
accounts, 
maintenance. 
31 u s e 850. 
Collection of 
data. 
Categories. 
Subcategories. 
Report. 
20 u s e 1221c. 
"(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 Govern-
ment 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 pro-
cedures applicable to commercial corporate transactions, as pro-
vided 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 pursu-
ant to section 428, and transactions related thereto and vouchers 
approved by the Commissioner in connection with such trans-
actions, shall be final and conclusive upon all accounting and other 
officers of the Government. 
"(c) (1) (A) For loans insured after December 31, 1976, or in the 
case of each insurer after such earlier date where the data required by 
this subsection are available, the Commissioner and all other insurers 
under this part shall collect and accumulate all data relating to (i) 
loan volume insured and (ii) defaults reimbursed or default rates 
according to the categories of loans listed in subparagraph (B) of this 
paragraph. 
"(B) The data indicated in subparagraph (A) of this paragraph 
shall be accumulated according to the category of lender making the 
loan and shall be accumulated separately for lenders who are (i) eli-
gible institutions, (ii) State or private, nonprofit direct lenders, (iii) 
commercial financial institutions who are banks, savings and loan asso-
ciations, or credit unions, and (iv) all other types of institutions or 
agencies. 
"(C) The Commissioner may designate such additional subcate-
gories within the categories specified in subparagraph (B) as he deems 
appropriate. 
"(D) The category or designation of a loan shall not be changed 
for any reason, including its purchase or acquisition by a lender of 
another category. 
"(2) (A) The Commissioner shall collect data under this subsection 
from all insurers under this part and shall publish not less often than 
once every fiscal year a report showing loan volume guaranteed and 
default data for each category specified in subparagraph (B) of para-
graph (1) of this subsection and for the total of all lenders. 
"(B) The reports specified in subparagraph (A) of this paragraph 
shall include a separate report for each insurer under this part includ-
ing the Commissioner, and where an insurer insures loans for lenders 
in more than one State, such insurer's report shall list all data sepa-
rately for each State. 
"(3) For purposes of clarity in communications, the Commissioner 
shall separately identify loans made by the lenders referred to in 
clause (i) and loans made by the lenders referred to in clause (ii) of 
paragraph (1) (B) of this subsection. 
"(d) (1) The functions of the Commissioner under this part listed 
in paragraph (2) of this subsection may be delegated to employees in 
the regional offices of the Office of Education established pursuant to 
section 403(c) (2) of the General Education Provisions Act. 
"(2) The functions which may be delegated pursuant to this sub-
section are— 
"(A) reviewing applications for loan insurance under section 
429 and issuing contracts for Federal loan insurance, certificates 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2129 
of insurance, and certificates of comprehensive insurance coverage 
to eligible lenders which are financial or credit institutions sub-
ject to examination and supervision by an agency of the United 
States or of amy State; 
"(B) 
receiving claims for payments under section 430(a), 
examining those claims, and pursuant to regulations of the Com-
missioner, approving claims for payment, or requiring lenders to 
take additional collection action as a condition for payment of 
claims; and 
"(C) certifying to the central office when collection of defaulted 
loans has been completed, compromising or agreeing to the modi-
fication of any Federal claim against a borrower (pursuant to 
regulations of the Commissioner issued under section 432(a)), 
and recommending litigation with respect to any such claim. 
"INSTITUTIONAL LENDERS 
"SEC. 433. (a) (1) An eligible institution may not act as an eligible 20 USC 1083. 
lender or originate loans under this part unless it has in effect an 
agreement with the Commissioner under which it agrees (A) to make 
such loans to no more than 50 per centum of the students in attendance 
at the institution who are not graduate or professional students (as 
defined in regulations of the Commissioner), and (B) that it will not 
make such a loan under this part to a student, other than a graduate or 
professional student (as defined in regulations of the Commissioner), 
who has not previously received a loan from such institution until 
such student has provided the institution with either (i) a statement 
from an eligible lender (other than an eligible institution or a State 
or an agency of a State or a private nonprofit agency designated by a 
State) that the borrower sought a loan from it and was denied such 
loan, or (ii) a sworn statement by the borrower that the lender from 
which he sought such a loan declined to provide the statement 
described in clause (i). 
"(2) Whenever the Commissioner determines that the termination 
of the eligible institution's status as a lender under paragraph (1) 
would be a hardship to the present or prospective students of the 
eligible institution after considering the management of that institu-
tion, the opportunities that institution provides to economically dis-
advantaged students, and related factors, the Commissioner shall waive 
the provisions of such paragraph with respect to that institution. 
"(b) (1) An eligible institution shall be deemed to have originated a 
loan for purposes of this section if it has had delegated to it by an 
eligible lender a substantial portion of the functions and responsibili-
ties normally performed by a lender prior to the making of a loan, such 
as interviewing the applicant for the loan, explaining the applicant's 
responsibilities under the loan, obtaining completion of necessary 
foims, obtaining necessary documentation, or verifying that the stu-
dent is eligible for the loan. 
"(2) For purposes of this section, a loan is made or originated on 
the date of the first disbursement of any proceeds of the loan. 
"PARTICIPATION BY FEDERAL CREDIT UNIONS I N FEDERAL, STATE, AND 
PRIVATE STUDENT LOAN INSURANCE PROGRAMS 
"SEC. 434. Notwithstanding any other provision of law. Federal 
20 USC 1084. 
credit unions shall, pursuant to regulations of the Director of the 
Bureau of Federal Credit Unions, have power to make insured loans 
to student members in accordance with the provisions of this part 
90 STAT. 2130 
PUBLIC LAW 94-482—OCT. 12, 1976 
relating to federally insured loans, or in accordance with the pro-
visions of any State or nonprofit private student loan insurance pro-
gram which meets the requirements of section 428(a) (1) (C). 
u 
20 use 1085. 
List of accrediting 
agencies or 
associations. 
DEFINITIONS FOR STUDENT LOAN INSURANCE PROGRAM 
"SEC. 435, As used in this part: 
"(a) The term 'eligible institution' means (1) an institution of 
higher education, (2) a vocational school, or (3^ with respect to 
students who are nationals of the United States, an institution outside 
the United States which is comparable to an institution of higher 
education or to a vocational school and which has been approved by the 
Commissioner for purposes of this part, except that such term does 
not include any such institution or school which employs or uses com-
missioned salesmen to promote the availability of any loan program 
described in section 428(a) (1) at that institution or school. 
"(b) 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 certificate, 
or who are beyond the age of compulsory school attendance, (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 association 
approved by the Commissioner for this purpose or, if not so accred-
ited, (A) is an institution with respect to which the Commissioner has 
determined that there is satisfactory assurance, considering the 
resources available to the institution, the period of time, if any, during 
which it has operated, the effort it is making to meet accreditation 
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 institu-
tions which are so accredited, for credit on the same basis as if trans-
ferred from an institution so accredited. Such term 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 (1), 
(2), (4), and (5). If the Commissioner determines that a particular 
category of such schools does not meet the requirements of clause (5) 
because there is no nationally recognized accrediting agency or associffc-
tion 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 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 
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 associa-
tions which he determines to be reliable authority as to the quality 
of training offered. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2131 
"(c) The term 'vocational school' means a business or trade school, 
or technical institution or other technical or vocational school, in any 
State, which (1) admits as regular students only persons who have 
completed or left elementary or secondary school and who have the 
ability to benefit from the training offered by such institution; (2) is 
legally authorized to provide, and provides within that State, a pro-
gram of postsecondary vocational or technical education designed to 
fit individuals for useful employment in recognized occupations; (3) 
has been in existence for two years or has been specially accredited by 
the Commissioner as an institution meeting the other requirements of 
this subsection; and (4) is accredited (A) by a nationally recognized 
accrediting agency or association listed by the Commissioner pursuant 
to this clause, (B) if the Commissioner determines that there is no 
nationally recognized accrediting agency or association qualified to 
accredit schools of a particular category, by a State agency listed by 
the Commissioner pursuant to this clause, and (C) if the Commis-
sioner determines there is no nationally recognized or State agency or 
association qualified to accredit schools of a particular category, by 
an advisory committee appointed by him and composed of persons 
specially qualified to evaluate training provided by schools of that 
category, which committee shall prescribe the standards of content, 
scope, and quality which must be met by those schools in order for 
loans to students attending them to be insurable under this part and 
shall also determine whether particular schools meet those standards. 
For the purpose of this subsection, the Commissioner shall publish a 
list of nationally recognized accrediting agencies or associations and 
State agencies which he determines to be reliable authority as to the 
quality of education or training afforded. 
"(d) 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 educa-
tion 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. 
"(e) 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. 
"(f) 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. 
"(g) (1) Except as provided in paragraphs (2), (3), and (4), the 
term 'eligible lender' means— 
"(A) a National or State chartered bank, a mutual savings 
bank, a savings and loan association, or a credit union which— 
"(i) is subject to examination and supervision by an agency 
of the United States or of the State in which its principal 
place of operation is established, and 
" (ii) does not have as its primary consumer credit function 
the making or holding of loans made to students under this 
part unless it is a bank which is wholly owned by a State; 
"(B) a pension fund as defined in the Employees Retirement 
Income Security Act; 
"(C) an insurance company which is subject to examination 
and supervision by an agency of the United States or a State; 
List of accrediting 
agencies or 
associations. 
29 use 1001 
note. 
90 STAT. 2132 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(D) in any State, a single agency of the State or a single 
nonprofit private agency designated by the State; 
"(E) an eligible institution which meets the requirements of 
paragraphs (2), (3), and (4) of this subsection and which has 
signed an agreement pursuant to section 433; and 
"(F) for purposes only of purchasing and holding loans made 
by other lenders under this part, the Student Loan Marketing 
Association or an agency of any State functioning as a secondary 
market. 
" (2) To be an eligible lender under this part, an eligible institution— 
"(A) shall employ at least one person whose full-time responsi-
bilities are limited to the administration of programs of financial 
aid for students attending such institution; and 
"(B) shall not be a home study school. 
"(3) The term eligible lender does not include any eligible institu-
tion in any fiscal year immediately after the fiscal year in which the 
Commissioner determines, after notice and opportunity for a hear-
ing, that for each of two consecutive years 15 per centum or more of 
the amount of the loan described in section 428(a)(1) made with 
respect to students at that institution and repayable in each such year 
is in default, as defined in section 430(e) (2). 
" (4) Whenever the Commissioner determines that— 
"(A) there is reasonable possibility that an eligible institution 
may, within one year after a determination is made under para-
graph (3), improve the collection of loans described in section 428 
(a)(1), so that the application of paragraph (3) would be a 
hardship to that institution, or 
"(B) the termination of the lender's status under paragraph 
(3) would be a hardship to the present or for prospective students 
of the eligible institution, after considering the management of 
that institution, the ability of that institution to improve the 
collection of loans, the opportunities that institution offers to 
economically disadvantaged students, and other related factors, 
Waiver. 
the Commissioner shall waive the provisions of paragraph (3) with 
respect to that institution. Any determination required under this 
paragraph shall be made by the Commissioner prior to the termina-
tion of an eligible institution as a lender under the exception of para-
graph (3). Whenever the Commissioner grants a waiver pursuant to 
this paragraph he shall provide technical assistance to the institution 
concerned in order to improve the collection rate of such loans. 
"Line of credit." 
"(h) The term 'line of credit' means an arrangement or agreement 
between the lender and the borrower whereby a loan is paid out by the 
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. 
"Due diligence." 
"(i) The term 'due diligence' requires the utilization by a lender, in 
the servicing and collection of loans insured under this part, of col-
lection practices at least as extensive and forceful as those generally 
practiced by financial institutions for the collection of consumer loans. 
" D I S T R I C T 
O F 
COLUMBIA 
STUDENT 
LOAN 
INSURANCE 
PROGRAM 
20 use 1086. 
"SEC. 436. (a) The government of the District of Columbia is 
D.C. Code 1-265. authorized (1) to establish a student loan insurance program which 
meets the requirements of this part for a State loan insurance program 
in order to enter into agreements with the Commissioner for the pur-
poses of this title, (2) to enter into such agreements with the Commis-
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2133 
sioner, (3) to use amounts appropriated for the purposes of this 
section to establish a fund for such purposes and for expenses in 
connection therewith, and (4) to accept and use donations for the 
purposes of this section. 
" (b) Notwithstanding the provisions of any applicable law, if the 
borrower, on any loan insured under the program established pursuant 
to this section, is a minor, any otherwise valid note or other written 
agreement executed by him for the purposes of such loan shall create a 
binding obligation. 
. . 
"(c) There are authorized to be appropriated such amounts as may Appropnation 
be necessary for the purposes of this section. 
authorization. 
" R E P A Y M E N T B Y T H E C O M M I S S I O N E R o r LOANS OF BANKRUPT, DECEASED, OR 
DISABLED BORROWERS 
"SEC. 437. (a) If a student borrower who has received a loan 20 USC 1087. 
described in clause (A), (B), or (C) of section 428(a)(1) dies or 
becomes permanently and totally disabled (as determined in accord-
ance with regulations of the Commissioner), then the Commissioner 
shall discharge the borrower's liability on the loan by repaying the 
amount owed on the loan. 
"(b) If a student borrower who has received a loan described in 
clause (A), (B),or (C) of section 428(a) (1) is relieved of his obliga-
tion to repay such loan, in whole or in part, through a discharge in 
bankruptcy, the Commissioner shall repay the amount of the loan so 
discharsfed. 
a SPECIAL ALLOWANCES 
"SEC. 438. (a) In order to assure (1) that the limitation on interest 20 USC 1087-.L. 
payments or other conditions (or both) on loans made or insured 
under this part, do not impede or threaten to impede the carrying out 
of the purposes of this part or do not cause the return to holders of 
loans to be less than equitable, (2) that incentive payments on such 
loans are paid promptly to eligible lenders, (3) that appropriate con-
sideration of relative administrative costs and money market condi-
tions is made in setting the quarterly rate of such payments, and 
(4) that participating lenders will have a better and more accurate 
way of assessing the rate of such payments for current and prospective 
quarters, the Congress finds it necessary to establish an improved 
M
r !: 
method for the determination of the quarterly rate of the special 
allowance on such loans, and to provide for a thorough, expeditious 
and objective examination of alternative methods for the determina-
tion of the quarterly rate of such allowance. 
"(b) (1) A special allowance shall be paid for each of the three- 
' 
month periods ending March 31, June 30, September 30, and Decem-
ber 31 of every year and the amount of such allowance paid to any 
holder with respect to any three-month period shall be a percentage 
of the unpaid balance of disbursed principal (not including unearned 
interest added to principal) of all eligible loans held by such holder 
during such period. 
"(2) (A) Subject to subparagraphs (B) and (C) and paragraph 
(4), the special allowance paid pursuant to this subsection shall be 
computed (i) by determining the average of the bond equivalent 
rates of the ninety-one-day Treasury bills auctioned for such three-
month period, (ii) by subtracting 3.5 per centum from such average, 
and (iii) by rounding the resultant per centum upward to the nearest 
one-eighth of 1 per centum. 
90 STAT. 2134 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(B) Except as provided in paragraph (4), if the special allowance 
computed according to subparagraph (A) would (i) cause the special 
allowance for any twelve-month period during the period ending 
September 30,1977, to exceed 3 per centum, the special allowance rate 
to be paid for such period shall be reduced to the highest one-eighth of 
1 per centum rate interval which would not cause such excess. 
"(C) Except as provided in subparagraph (4), if the special allow-
ance computed according to subparagraph (A) would (i) cause the 
special allowance for any twelve-month period after October 1, 1977, 
to exceed 5 per centum, the special allowance rate to be paid for such 
period shall be reduced to the highest one-eighth of 1 per centum 
rate which would not cause such excess. 
"(3) Subject to paragraph (4) the special allowance determined for 
any such three-month period shall be payable at such time, after the 
close of such period, as may be specified by or pursuant to regulations 
promulgated under this section. The holder of a loan with respect to 
which any such allowance is to be paid shall be deemed to have a 
contractual right, as against the United States, to receive such allow-
ance from the Commissioner. 
"(4) (A) If payment of the special allowance payable under this 
section or of interest payments under section 428(a) with respect to 
a loan have not been made within thirty days after the Commissioner 
has received an accurate, timely, and complete request for payment 
thereof, the special allowance payable to such holder shall be increased 
by an amount equal to the daily interest accruing on the special allow-
ance and interest benefits payments due the holder. 
"(B) Such daily interest shall be computed at the daily equivalent 
rate of the special allowance rate computed pursuant to paragraph 
(3) plus 7 per centum and shall be paid for the later of (i) the thirty-
first day after the receipt of such request for payment from the holder, 
or (ii) the thirty-first day after the final day of the period or periods 
covered by such request, and shall be paid for each succeeding day 
until, and including, the date on which the Commissioner authorizes 
payment. 
"(C) For purposes of reporting to the Congress the amounts of 
special allowances paid under this section, amounts of special allow-
ances paid pursuant to this subparagraph shall be segregated and 
reported separately. 
"Eligible loan." 
"(5) As used in this section, the term 'eligible loan' means a loan 
which is insured under this part, or made under a program covered 
by an agreement under section 428(b) of this Act. 
"(b) The Commissioner shall pay the holder of an eligible loan, 
at such time or times as are specified in regulations, a special allowance 
prescribed pursuant to subsection (a), subject to the condition that 
such holder shall submit to the Commissioner, at such time or times 
and in such manner as he may deem proper, such information as may 
be required by regulation for the purpose of enabling the Secretary 
and the Commissioner to carry out their functions under this section 
and to carry out the purposes of this section. 
"(c) The Commissioner shall adopt or amend appropriate regula-
tions pertaining to programs carried on under this part to prevent, 
where practicable, any practices which he finds have denied loans to 
a substantial number of students. Regulations issued under section 
2(a) (6) (B) (ii) of the Emergency Insured Student Loan Act of 
20 use 1078a. 
1969 shall remain in effect until superseded or amended under this 
subsection, but no payments shall be made under such Act after the 
effective date of this section. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2135 
"(d) There are authorized to be appropriated such sums as may 
be necessary for special allowances authorized by this section. 
"(e) In order to assure (i) that the limitation on interest payments 
or other conditions (or both) on loans made or insured under this 
part, do not impede or threaten to impede the carrying out of the 
purposes of this part or do not cause the return to holders of loans to 
be less than equitable, (ii) that incentive payments on such loans are 
paid promptly to eligible lenders, (iii) that appropriate considera-
tion of relative administrative costs and money market conditions is 
made in setting the quarterly rate of such payments, and (iv) that 
participating lenders will have a better and more accurate way of 
assessing the rate of such payments for current and prospective quar-
ters, there is established a Committee on the Process of Determining 
Student Loan Special Allowances (hereinafter in this section referred 
to as the 'Committee'). The Committee shall be composed of— 
"(1) the Commissioner of Education; 
"(2) the Secretary of Health, Education, and Welfare; 
"(3) the Secretary of Treasury; 
"(4) a representative of State and nonprofit private institu-
tions and organizations participating under an agreement under 
section 428(b); 
"(5) a student financial aid administrator of an eligible institu-
tion (as defined in section 435(g) (2)); 
"(6) a business officer of an eligible institution (as defined in 
section 435(g)(2)); 
"(7) a representative of participating eligible lenders other 
than one denned in section 435(g) (1) ( E ) ; 
"(8) a student at an eligible institution (as defined in section 
435(g)(2)); and 
"(9) a representative of the Student Loan Marketing Associ-
ation, designated by the Board of Directors of the Association. 
"(f) The Commissioner shall appoint the members of the Commit-
tee described in paragraphs (4), (5), (6), (7), and (8) of subsection 
(e) of this section, after consultation in the case of those members 
appointed under each such paragraph, with nationally-recognized 
organizations of such persons or agencies. 
"(g) (1) No later than October 1,1977, the Committee shall prepare 
and submit to the President of the Senate and the Speaker of the 
House of Representatives a report of their findings and recommenda-
tions for an improved method or methods for the determination of the 
quarterly rate of the special allowance paid under this Act w^hich 
they believe will carry out the objectives set forth in subsection (a) of 
this section. 
"(2) The Committee shall make every effort to reach a unanimous 
decision with respect to the method for the determination of the quar-
terly rate of the special allowance established under this section. 
"(3) In dcvelopm^ the method for the determination of the quar-
terly rate of the special allowance under this section, the Committee 
shall consider— 
"(A) the experiences of students, and eligible lenders under the 
method prescribed in this section, and under the method in opera-
tion prior to the enactment of this section, 
"(B) the administrative costs of various types of eligible 
lenders under this part, 
"(C) relevant and widely available financial indicators which 
accurately reflect the costs of capital invested in programs under 
this part, or substitute financial indicators whicn equitably rep-
resent the cost of such capital, 
Appropriation 
authorization. 
Committee on the 
Process of 
Determining 
Student Loan 
Special 
Allowances. 
Establishment. 
IH: 
''U 
Report to 
Congress. 
90 STAT. 2136 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 use 1071. 
Ante, p. 2081. 
"(D) an administrative mechanism necessary to produce a 
prompt and rapidly disseminated determination of the quarterly 
rate of the special allowance, in order to avoid delays in the deter-
mination and dissemination of that rate and in the actual payment 
of the special allowance to eligible lenders, and 
"(E) such other factors as the Committee considers necessary 
to carry out the purposes of this section. 
" (4) In carrying out its responsibilities under this section, the Com-
mittee shall be given the full cooperation and assistance of the official 
in the Office of Education directly responsible for the administration 
of this part B of title IV of the Higher Education Act of 1965 and 
such other appropriate officials of the Office of Education as the Com-
mittee deems appropriate. 
"(5) In order to assist the Committee to carry out its functions 
under this section, the Commissioner of Education is authorized to 
hire consultants, and to enter into contracts, and pay the costs of such 
contracts from funds regularly appropriated for the purpose of 
administering programs authorized by this part. 
" (6) The Commissioner of Education shall convene the first session 
of the Committee within sixty days after the date of enactment of the 
Education Amendments of 1976. The Chairman of the Committee 
shall be selected by those members who are not officials of the Federal 
Government from among themselves. 
"(7) The Committee is not authorized to employ permanent 
employees or to lease or obtain the use of permanent offices or to take 
other steps to extend its period of service beyond the time necessary 
to complete its responsibilities under this section. 
"(8) The Committee shall cease to exist ten days after the submis-
sion of the report prescribed in paragraph (1) of this subsection. 
"STUDEXT LOAN MARKETING ASSOCIATION 
20 use 1087-2. 
"SEC. 439. (a) The Congress hereby declared that it is the purpose 
of this section (1) to establish a Government-sponsored private cor-
poration which will be financed by private capital and which will serve 
as a secondary market and warehousing facility for insured student 
loans, insured" by the Commissioner under this part or by a State or 
nonprofit private institution or organization with which the Com-
missioner has an agreement under section 428(b), and which will pro-
vide liquidity for student loan investments; and (2) in order to 
facilitate secured transactions involving insured student loans, to pro-
vide for perfection of security interests in insured student loans either 
through the taking of possession or by notice filing. 
"(b) (1) There is hereby created a body corporate to be known as 
the Student Loan Marketing Association (hereinafter referred to as 
the 'Association'). The Association shall have succession until dis-
solved. It shall maintain its principal office in the District of Columbia 
and shall be deemed, for purposes of venue and jurisdiction in civil 
actions, to be a resident thereof. Offices may be established by the 
Association in such other place or places as it may deem necessary or 
appropriate for the conduct of its business. 
Taxation. 
»(2) The Association, including its franchise, capital, reserves, sur-
plus, mortgages, or other security holdings, and income shall be 
exempt from all taxation now or hereafter imposed by any State, terri-
tory, possession, Commonwealth, or dependency of the United States, 
or by the District of Columbia, or by any county, municipality, or 
local taxing authority, except that any real property of the Associa-
ereation of 
Association. 
PUBLIC LAW 94-4fi2—OCT. 12, 1976 
90 STAT. 2137 
Appropriation 
authorization. 
Appointment. 
tion shall be subject to State, territorial, county, municipal, or local 
taxation to the same extent according to its value as other real prop-
erty is taxed. 
"(3) There is hereby authorized to be appropriated to the Secretary 
of Ilealth, Education, and Welfare $5,000,000 for making advances for 
the purpose of helping to establish the Association. Such advances 
shall be repaid within such period as the Secretary may deem to be 
appropriate in light of the maturity and solvency of the Association. 
Such advances shall bear interest at a rate not less than (A) a rate 
determined by the Secretary of the Treasury taking into considera-
tion the current average market yield on outstanding marketable obli-
gations of the Ignited States with remaining period to maturity 
comparable to the maturity of such advances, adjusted to the nearest 
one-eighth of 1 per centum, plus (B) an alloAvance adequate in the 
judgment of the Secretary to cover administrative costs and probable 
losses. Repayments of such advances shall be deposited into miscel-
laneous receij)ts of the Treasury. 
"(c)(1) The Association shall have a Board of Directors which Chairman, 
shall consist of twenty-one persons, one of whom shall be designated 
Chairman by the President. 
"(2) An interim Board of Directors shall be appointed by the Presi-
dent, one of whom he shall designate as interim Chairman. The interim 
Board shall consist of twenty-one members, seven of whom shall be 
representative of banks or other financial institutions which are 
insured lendei's pursuant to this section, seven of whom shall be repre-
sentative of educational institutions, and seven of whom shall be rep-
resentative of the general public. The interim Board shall arrange 
for an initial offering of common and preferred stocks and take what-
ever other actions ai'e necessary to pr-oceed with the operations of the 
Association. 
"(3) When, in the judgment of the President, sufficient common Common stock, 
stock of the Association has been purchased by educational institu-
tions and banks or other financial institutions, the holders of common 
stock which are educational institutions shall elect seven members of 
the Board of Directors and the holders of common stock which are 
banks or other financial institutions shall elect seven members of the 
Board of Directors. The President shall appoint the remaining seven 
directors, who shall be representative of the general public. 
"(4) At the time the events described in paragraph (3) have 
occurred, the interim Board shall turn over the affairs of the Associa-
tion to the regular Board so chosen or appointed. 
"(5) The directors appointed by the President shall serve at the 
pleasure of the President and until their successors have been 
appointed and have qualified. The remaining directors shall each be 
elected for a term ending on the date of the next annual meeting of 
the common stockholders of the Association, and shall serve until 
their successors have been elected and have qualified. Any appointive 
seat on the Board which becomes vacant shall be filled by appomtment 
of the President. Any elective seat on the Board which becomes vacant 
after the aimual election of the directors shall be filled by the Board, 
but only for the unexpired portion of the term. 
"(6) The Board of Directors shall meet at the call of its Chairman, 
but at least semiannually. The Board shall determine the general 
policies which shall govern the operations of the Association. The 
Chairman of the Board shall, with the approval of the Board, select, 
appoint, and compensate qualified persons to fill the offices as may be 
provided for in the bylaws, with such executive functions, powers, and 
90 STAT. 2138 
PUBLIC LAW 94-482~0CT. 12, 1976 
duties as may be prescribed by the bylaws or by the Board of Direc-
tors, and such persons shall be the executive officers of the Association 
and shall discharge all such executive functions, powers, and duties. 
"(d) (1) The Association is authorized, subject to the provisions of 
this section, pursuant to commitments or otherwise, to make advances 
on the security of, purchase, service, sell, or otherwise deal in, at prices 
and on terms and conditions determined by the Association, student 
loans which are insured by the Commission under this part or by a 
State or nonprofit private institution or organization with which the 
Commissioner has an agreement under section 428(b). 
"(2) Any warehousing advance made under paragraph (1) of this 
subsection shall not exceed 80 per centum of the face amount on an 
insured loan. The proceeds from any such advance shall be invested in 
additional insured student loans. 
"(3) Notwithstanding the provisions of any State law to the con-
trary, including the Uniform Commercial Code as in effect in any 
State, a security interest in insured student loans created on behalf 
of the Association or any eligible lender as defined in section 435(a) 
may be perfected either through the taking of possession of such loans 
or by the filing of notice of such security interest in such loans in the 
manner provided by said State law for perfection of security interests 
in accounts. 
"(e) The Association, pursuant to such criteria as the Board of 
Directors may prescribe, shall make advances on security or purchase 
student loans pursuant to subsection (d) only after the Association 
is assured that the lender (A) does not discriminate by pattern or 
practice against any particular class or category of students by requir-
ing that, as a condition to the receipt of a loan, the student or his fam-
ily maintain a business relationship with the lender, except that this 
clause shall not apply in the case of a loan made by a credit union, 
savings and loan association, mutual savings bank, institution of 
higher education, or any other lender with less than $50,000,000 in 
deposits, and (B) does not discriminate on the basis of race, sex, color, 
creed, or national origin. 
Par value of 
"(f)(1) The Association shall have common stock having a par 
common stock. 
value of $100 per share which may be issued only to lenders under this 
part, pertaining to guaranteed student loans, who are qualified as 
insured lenders under this part or who are eligible institutions as 
defined in section 435(a) (other than an institution outside the United 
States), 
"(2) Each share of common stock shall be entitled to one vote with 
rights of cumulative voting at all elections of directors. Voting shall 
be by classes as described in subsection (c)(3). 
" (3) The common stock of the Association shall be transferable only 
as may be prescribed by regulations of the Secretary of Health, Edu-
cation, and Welfare, and, as to the Association, only on the books of 
the Association, The Secretary of Health, Education, and Welfare 
shall prescribe the maximum number of shares of common stock the 
Association may issue and have outstanding at any one time. 
" (4) To the extent that net income is earned and realized, subject to 
subsection (g) (2), dividends may be declared on common stock by the 
Board of Directors. Such dividends as may be declared by the Board 
shall be paid to the holders of outstanding shares of common stock, 
except that no such dividends shall be payable with respect to any 
share which has been called for redemption past the effective date of 
such call. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2139 
"(g)(1) The Association is authorized, with the approval of the Preferred stock. 
Secretary of Health, Education, and Welfare, to issue nonvoting pre-
ferred stock with a par value of $100 per share. Any preferred share 
issued shall be freely transferable, except that, as to the Association, 
it shall be transferred only on the books of the Association. 
"(2) The holders of the preferred shares shall be entitled to such 
rate of cumulative dividends and such shares shall be subject to such 
redemption or other conversion provisions as may be provided for at 
the time of issuance. No dividends shall be payable on any share of 
common stock at any time when any dividend is due on any share of 
preferred stock and has not been paid. 
"(3) In the event of any liquidation, dissolution, or winding up of 
the Association's business, the holders of the preferred shares shall be 
paid in full at par value thereof, plus all accrued dividends, before the 
holdeis of the common shares receive any payment. 
"(h)(1) The Association is authorized with the approval of the 
Secretary of Health, Education, and Welfare and the Secretary of the 
Treasury to issue and have outstanding obligations having such matu-
lities and bearing such rate or rates of interest as may be determined 
by the Association, Such obligations may be redeemable at the option 
of the Association before maturity in such manner as may be stipu-
lated therein. 
" (2) The Secretary of Health, Education, and Welfare is authorized, 
^;. 
prior to July 1, 1982, to guarantee payment when due of principal 
and interest on obligations issued by the Association in an aggregate 
amount determined by the Secretary in consultation with the Secretary 
of the Treasury. 
" (3) To enable the Secretary of Health, Education, and Welfare to 
discharge his responsibilities under guarantees issued by him, he 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 
Secretary of Health, Education, and Welfare with the approval of 
the Secretary of the Treasurj^. 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 out-
standing marketable obligations of the United States of comparable 
maturities during the months preceding the issuance of the notes or 
other obligations. The Secretary of the Treasury is authorized and 
directed to purchase any notes and other obligations issued hereunder 
and for that purpose he is authorized to use as a public debt trans-
action the proceeds from the sale of any securities issued under the 
Second Liberty Bond Act, as amended, and the purposes for which 31 U
S
C 774. 
securities may be issued under that Act, as amended, are extended 
to include any purchase of such notes and obligations. The Secretary 
of the Treasury may at any time sell any of the notes or other obli-
gations acquired by him under this subsection. All redemptions, pur-
chases, 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. There is authorized to be appropriated to the Secre-
ta,ry of Health, Education, and Welfare such sums as may be necessary 
to pay the principal and interest on the notes or obligations issued by 
him to the Secretary of the Treasury. 
" (i) The Association shall have power— 
Powers. 
"(1) to sue and be sued, complain and defend, in its corporate 
name and through its own counsel ; 
"(2) to adopt, alter, and use the corporate seal, which shall be 
judicially noticed; 
90 STAT. 2140 
PUBLIC LAW 94-482—OCT. 12, 1976 
Audit. 
Report to 
Treasury 
Secretary. 
Report to 
President and 
Congress. 
"(3) to adopt, amend, and repeal by its Board of Directors, 
bylaws, rules, and regulations as may be necessary for the conduct 
of its business; 
"(4) to conduct its business, carry on its operations, and have 
officers and exercise the power granted by this section in any 
State without regard to any qualification or similar statute in 
any State; 
"(5) to lease, purchase, or otherwise acquire, own, hold, 
improve, use, or otherwise deal in and with any property, real, 
personal, or mixed, or any interest therein, wherever situated; 
"(6) to accept gifts or donations of services, or of property, 
real, personal, or mixed, tangible or intangible, in aid of any of 
the purposes of the Association; 
"(7) to sell, convey, mortgage, pledge, lease, exchange, and 
otherwise dispose of its property and assets; 
"(8) to appoint such officers, attorneys, employees, and agents 
as may be required, to determine their qualifications, to define 
their duties, to fix their salaries, require bonds for them and fix 
the penalty thereof; and 
"(9) to enter into contracts, to execute instruments, to incur 
liabilities, and to do all things as are necessary or incidental to 
the proper management of its affairs and the proper conduct of its 
business, 
"(j) The accounts of the Association shall be audited annually. 
Such audits shall be conducted in accordance with generally accepted 
auditing standards by independent certified public accountants or by 
independent licensed public accountants, licensed on or before Decem-
ber 31, 1970, who are certified or licensed by a regulatory authority of 
a State or other political subdivision of the United States, except that 
independent public accountants licensed to practice by such regula-
tory authority after December 31, 1970, and persons who, although 
not so certified or licensed, meet, in the opinion of the Secretary, stand-
ards of education and experience representative of the highest stand-
ards prescribed by the licensing authorities of the several States which 
provide for the continuing licensing of public accountants and which 
are prescribed by the Secretary in appropriate regulations may per-
form such audits until December 31,1975. A report of each such audit 
shall be furnished to the Secretary of the Treasury. The audit shall 
be conducted at the place or places where the accounts are normally 
kept. The representatives of the Secretary shall have access to all 
books, accounts, financial records, reports, files, and all other papers, 
things, or property belonging to or in use by the Association and neces-
sary to facilitate the audit, and they shall be afforded full facilities for 
verifying transactions with the balances or securities held by deposi-
taries, fiscal agents, and custodians. 
"(k) A report of each such audit for a fiscal year shall be made by 
the Secretary of the Treasury to the President and to the Congress not 
later than six months following the close of such fiscal year. The 
report shall set forth the scope of the audit and shall include a state-
ment (showing intercorporate relations) of assets and liabilities, capi-
tal and surplus or deficit; a statement of surplus or deficit analysis; a 
statement of income and expense; a statement of sources and applica-
tion of funds; and such comments and information as may be deemed 
necessary to keep the President and the Congress informed of the 
operations and financial condition of the Association, together with 
such recommendations with respect thereto as the Secretary may deem 
advisable, including a report of any impairment of capital or lack of 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2141 
sufficient capital noted in the audit. A copy of each report shall be fur-
nished to the Secretary of Health, Education, and AVelfare and to the 
Association. 
"(1) All obligations issued by the Association shall be lawful invest-
ments, and may be accepted as security for all fiduciary, trust, and 
public funds, the investment or deposit of which shall be under 
authority or control of the United States or of any officer or officers 
thereof. All stock and obligations issued by the Association pursuant 
to this section shall be deemed to be exempt securities within the mean-
ing of laws administered by the Securities and Exchange Commission, 
to the same extent as securities which are direct obligations of, or 
obligations guaranteed as to principal or interest by, the United States. 
The Association shall, for the purposes of section 14(b) (2) of the Fed-
eral Reserve Act, be deemed to be an agency of the United States. 
" (m) In order to furnish obligations for delivery by the Association, 
the Secretary of the Treasury is authorized to prepai'e such obliga-
tions in such form as the Board of Directors may approve, such obli-
gations Avhen prepared to be held in the Treasury subject to delivery 
upon order by the Association. The engraved plates, dies, bed pieces, 
and so forth, executed in connection therewith shall remain in the cus-
tody of the Secretary of the Treasury. The Association shall reimburse 
the Secretary of the Treasury for any expenditures made in the prep-
aration, custody, and delivery of such obligations. 
"(n) The Association shall, as soon as practicable after the end of 
each fiscal year, transmit to the President and the Congress a report of 
its operations and activities during each year. 
12 use 355. 
Report to 
President and 
u 
FIVE-YEAR XONDISCIIAROEABILITY OF CERTAIN LOAN DEBTS 
"SEC. 439A. (a) A debt which is a loan insured or guaranteed under 20 U
S
C 1087-3. 
the authority of this part may be released by a discharge in bank-
ruptcy under the Bankruptcy Act only if such discharge is granted 
after the five-year period (exclusive of any applicable suspension of 
the repayment period) beginning on the date of commencement of the 
repayment period of such loan, except that prior to the expiration of 
that five-year period, such loan may be released only if the court in 
which the proceeding is pending determines that payment from future 
income or other wealth will impose an undue hardship on the debtor 
or his dependents. 
"(b) Subsection (a) of this section shall be effective with respect to Effective date, 
any proceedings begun under the Bankruptcy Act on or after Septem- H USC 1 note, 
ber 30, 1977. 
"CRIMIXAL PENALTIES 
"SEC. 440. (a) Any person who knowingly and willfully embez- 20 USC 1087-4.. 
zles, misapplies, steals, or obtains by fraud, false statement, or forgery 
any funds, assets or property provided or insured under this part shall 
be fined not more than $10,000 or imprisoned for not more than five 
years, or both; but if the amount so embezzled, misapplied, stolen or 
obtained by fraud, false statement, or forgery does not exceed $200, the 
fine shall be not more than $1,000 and imprisonment shall not exceed 
one year, or both. 
"' '' ' *'^ 
"(b) Any person who knowingly and willfully makes any false 
statement, furnishes any false information, or conceals any material 
information in connection with an application for a finding by the 
Commissioner under section 435 (b) (4) (A) or (B), for the purpose of 
90 STAT. 2142 
PUBLIC LAW 94-482—OCT. 12, 1976 
qualifyin": an educational institution as an eli<»:ible institution under 
this part shall, upon conviction thereof, be fined not more than $1,000 
or imprisoned not more than one year, or both. 
Penalty. 
"(c) Any person who knowingly and willfully makes any false state-
ment to, furnishes any false information to, or conceals any material 
information in connection with the assignment of a loan, which is 
insured under this part, to another eligible lender, shall, upon convic-
tion thereof, be fined not more than $1,000 or imprisoned not more 
than one year, or both. 
"(d) Any person who knowingly and willfully makes an unlawful 
payment to an eligible lender as an inducement to make, or to acquire 
by assignment, a loan insured under this part shall, upon conviction 
thereof, be fined not more than $1,000 or imprisoned not more than one 
year, or both. 
"(e) Any person who knowingly and willfully destroys any appli-
cation for a loan which is insured under this part, any application for 
insurance of a loan under this part, or destroys or conceals any other 
record relating to the making or insuring of loans under this part with 
intent to defraud the L^nited States or to prevent the United States 
from enforcing any right obtained by subrogation under this part, 
shall upon conviction thereof, be fined not more than $10,000 or impris-
oned not more than five years, or both.". 
Effective date. 
(b) The amendment made by subsection (a) of this section of this 
20 use 1071 
Act shall become effective October 1, 1976, except as otherwise pro-
note, 
vided therein, and to the extent such amendment makes changes in 
such part B which affect student loans, such changes shall apply to 
outstanding loans as well as to loans made after the amendment 
becomes effective, except that— 
(1) the changes made in sections 425(a), 427(a)(1)(C), 427 
(a) (2) (G) and 428(b) (1) (A), (B), and (P) shall become appli-
cable with respect to loans to cover the costs of education for 
periods of enrollments beginning on or after October 1,1976; 
(2) section 422(c) shall become effective October 1, 1977; 
(3) section 428(f) shall become effective October 1,1976; 
(4) the changes made in section 428(a) (2) shall become appli-
cable with respect to the determination of interest subsidies on 
loans to cover the costs of education for periods of enrollment 
beginning on or after 30 days after the date of enactment of this 
Act; 
(5) the new section 433 shall become effective with respect to 
loans made to cover the costs of education for periods of enroll-
ment beginning on or after October 1, 1976; 
(6) the changes in section 428(c) with respect to the amount of 
t 
Federal guarantee payments shall become effective with respect 
to payments to reimburse States and nonprofit private institu-
tions and organizations with which the Commissioner has an 
agreement under section 428(c) of such part which are made on 
or after October 1, 1976; and 
(7) section 438, shall become effective with respect to fiscal 
quarters beginning after December 31, 1976. 
20 use 1078a. 
(c) (1). Section 2(a) (7) of the Emergency Insured Student Loan 
Act of 1969 is amended by striking out "October 1,1976" and inserting 
in lieu thereof "January 1,1977." 
Repeal. 
(2) Effective October 1,1977, the Emergency Insured Student Loan 
83 Stat. 141. 
Act of 1969 is repealed. 
20 use 1078a 
note. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2143 
WORK-STUDY PROGRAM 
SEC. 128. (a) Section 441 (b) of the Act is amended— 
42 USC 2751. 
(1) by striking out the Avord "and" after "1974,", and 
(2) by inserting before the period a comma and the following: 
"$420,000,000 for the fiscal year ending June 30, 1976, and the 
transitional period beginning July 1, 1976, and ending Septem-
ber 30, 1976, $450,000,000 for the fiscal year ending September 30, 
1977, $570,000,000 for the fiscal year ending September 30, 1978, 
$600,000,000 for the fiscal year ending September 30, 1979, 
$630,000,000 for the fiscal year ending September 30, 1980, 
$670,000,000 for the fiscal year ending September 30, 1981, and 
$720,000,000 for the fiscal year ending September 30, 1982. 
(b) Section 443(b) of the Act is amended by striking "461" and 42 USC 2753. 
inserting in lieu thereof "491", and by inserting before the period at 
the end thereof the following: ", and includes a combination of such 
institutions which have entered into a cooperative arrangement, or 
have designated or created a public or private nonprofit agency, 
institution, or organization to act on their behalf.". 
(c) (1) Section 444(a) (1) of the Act is amended by striking out the 42 USC 2754. 
word "public" the second time it appears and by inserting in lieu 
thereof "Federal, State, or local public agency", and by inserting 
"agency or" before the word "organization" the second time it appears 
in such section. 
(2) Section 444(a) (2) of the Act is amended to read as follows: 
"(2) provide that funds granted an institution of higher 
education, pursuant to section 443, may be used only to make 
payments to students participating in work-study programs, 
except that an institution may use a portion of the sums granted 
to it to meet administrative expenses in accordance with section 
493 of this Act, may use a portion of the sums granted to it to 
meet the cost of a job location and development program in 
accordance with section 447 of this part, and may transfer funds /n/ra-
in accordance with the provisions of section 496 of this Act;". 
(3) Section 444(a) (4) of the Act is amended to read as follows: 
"(4) provide that no student in a work-study program under 
this part shall be required to terminate that employment during 
a semester (or other regular enrollment period) at the time 
income derived from any additional employment together with 
such work-study income is in excess of the determination of the 
amount of such student's need for that semester under clause (3) 
of this subsection, but when such excess income equals $200 or 
i'i: 
more, continued employment under a work-study program shall 
H
^
i 
not be subsidized with funds appropriated under this part;". 
(4) Section 444(a) (7) of the Act is amended to read as follows: 
"(7) include provisions to make employment under such work-
study program reasonably available (to the extent of available 
funds) to all eligible students in the institution in need thereof, 
and to make equivalent employment offered or arranged by the 
institution reasonably available (to the extent of available funds) 
'
* '*"' 
to all students in the institution who desire such employment; 
and". 
(d) Section 447 of the Act is amended to read as follows: 
42 U
S
C 2756a. 
"JOB LOCATIOX AND DEVELOPMENT PROGRAMS 
"SEC. 447. (a) The Commissioner is authorized to enter into agree- Agreements, 
ments with eligible institutions under which such institution may use 
90 STAT. 2144 
PUBLIC LAW 94-482—OCT. 12, 1976 
not more than 10 per centum or $15,000 of its allotment under section 
,. 
446, whichever is less, to establish or expand a program under which 
such institution, separately, in combination with other eligible insti-
tutions, or through a contract with a nonprofit organization, locates 
and develops jobs for currently enrolled students which are suitable 
to the scheduling and other needs of such students. 
"(b) Agreements under subsection (a) shall— 
"(1) provide that the Federal share of the cost of any pro-
gram under thig section will not exceed 80 per centum of such 
cost; 
"(2) provide satisfactory assurance that funds available under 
this section will not be used to locate or develop jobs at an eligible 
institution; 
"(3) provide satisfactory assurance that the institution will 
continue to spend in its own job location and development pro-
grams, from sources other than funds received under this section, 
not less than the average expenditures per year made during the 
most recent three fiscal years preceding the effective date of the 
,. 
agreement; 
"(4) provide satisfactory assurance that funds available under 
this section will not be used for the location or development of 
jobs for students to obtain upon graduation, but rather for the 
location and development of jobs available to students during and 
between periods of attendance at such institution; 
" (5) provide satisfactory assurance that the location or develop-
ment of jobs pursuant to programs assisted under this section will 
not result in the displacement of employed workers or impair 
existing contracts for services; 
"(6) provide satisfactory assurance that Federal funds used for 
the purposes of this section can realistically be expected to help 
generate student wages exceeding in the aggregate the amount of 
such funds and that if such funds are used to contract with another 
organization, appropriate performance standards are part of such 
contract; and 
"(7) provide that the institution will submit to the Commis-
sioner an annual report on the uses made of funds provided 
under this section and an evaluation of the effectiveness of such 
program in benefiting the students of such institution.". 
COOPERATIVE EDUCATION 
20 use 
SEC. 129. (a) Title IV of the Act is further amended by striking 
1087a-1087c. 
out part D and any references thereto. 
(b) Title VIII of the Act is amended to read as follows: 
"TITLE VIII—COOPERATIVE EDUCATION 
"APPROPRIATIONS AUTHORIZED 
20 use 1133. 
"SEC. 801. (a) There are authorized to be appropriated— 
"(1) for the fiscal year ending June 30, 1976, and the period 
beginning July 1, 1976, and ending September 30, 1976, 
$13,000,000; 
" (2) for the fiscal year 1977, $15,000,000; 
" (3) for the fiscal year 1978, $20,000,000; 
" (4) for the fiscal year 1979, $25,000,000; and 
" (5) for each of the fiscal years 1980,1981, and 1982, $25,000,000, 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2145 
to enable the Commissioner to make grants pursuant to section 802 to 
institutions of higher education, or to combinations of such institu-
tions, for the planning, establishment, expansion, or carrying out by 
such institutions or combinations of programs of cooperative educa-
tion. Such programs shall provide alternating periods of academic 
study and of public or private employment, the latter affording stu-
dents not only the opportunity to earn the funds necessary for con-
tinuing and completing their education but, so far as practicable, 
giving them work experience related to their academic or occupational 
objectives. 
"(b) There are further authorized to be appropriated— 
(1) $1,000,000 for the fiscal year ending June 30, 1976, and 
the period beginning July 1,1976, and ending September 30,1976 ; 
" (2) $1,500,000 for the fiscal year 1977; 
" (3) $2,500,000 for the fiscal year 1978; and 
" (4) $3,000,000 for each of the fiscal years 1978,1979,1980,1981, 
and 1982, 
to enable the Commissioner to make training, demonstration, or 
research grants or contracts pursuant to section 803. 
"(c) Appropriations under this title shall not be available for the 
payment of compensation of students for employment by employers 
under arrangements pursuant to this part. 
a 
GRANTS FOR PROGRAMS OF COOPERATIVE EDUCATION 
"SEC. 802. (a) From the sums appropriated pursuant to subsec- 20 U
S
C 1133a. 
tion (a) of section 801, and for the purposes set forth therein, the 
Commissioner is authorized to make grants to institutions of higher 
education that have applied therefor in accordance with subsection (b) 
of this section, in amounts not in excess of $175,000 to any one such in-
stitution for any fiscal year, and to combinations of such institutions 
(that have so applied) in amounts not to exceed an amount equal to the 
product of $125,000 times the number of institutions participating in 
such combination, for any fiscal year. 
"(b) Each application for a grant authorized by subsection (a) of Application, 
this section shall be filed with the Commissioner at such time or times 
as he may prescribe and shall— 
"(1) set forth programs or activities for which a grant is 
authorized under this section; 
"(2) specify the portion or portions of such programs or activ-
ities which will be performed by a nonprofit organization or 
institution other than the applicant and the compensation to be 
paid for such performance; 
"(3) provide that the applicant will expend during such fiscal 
year for the purpose of such program or activity not less than 
was expended for such purpose during the previous fiscal year; 
"(4) provide that the applicant shall make such reports and 
keep such records as are essential to insure that the applicant's 
(! «e' 
programs or activities are conducted in accordance with the pro-
visions of this part; 
"(5) provide 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 part; and 
< 
- • 
"(6) include such other information as is essential to carry 
out the provisions of this part. 
"(c) No institution of higher education may receive, individually 
or as a participant in a combination of such institutions, grants under 
90 STAT. 2146 
PUBLIC LAW 94-482—OCT. 12, 1976 
.BI'CI i.-!jr 
this section for more than five fiscal years. No such institution or com-
bination thereof may receive— 
"(1) a grant in excess of 100 per centum of the total adminis-
trative cost for the first of such fiscal years; 
" (2) a grant in excess of 90 per centum of such cost for the sec-
ond of such years; 
"(3) a grant in excess of 80 per centum of such cost for the 
third of such years; 
'' 
" (4) a grant in excess of 60 per centum of such cost for the 
fourth of such years; or 
"(5) a grant in excess of 30 per centum of such cost for the 
fifth of such years. 
Any provision of law to the contrary notwithstanding, the Com-
missioner shall not waive the provisions of this subsection. 
"(d) In approving applications under this section, the Commis-
sioner shall give special consideration to applications from institutions 
of higher education for programs which show the greatest promise 
of success because of— 
"(1) the extent to which programs in the academic discipline 
with respect to which the application is made have had a favor-
able reception by employers, 
"(2) the commitment of the institution of higher education 
to cooperative education as demonstrated by the plans which such 
institution has made to continue the program after the termina-
tion of Federal financial assistance, and 
"(3) such other factors as are consistent with the purposes of 
this section. 
ii^ 
GRANTS AND CONTRACTS FOR TRAINING AND RESEARCH 
20 use 1133b. 
" S E C 803. From the sums appropriated pursuant to subsection 
(b) of section 801, the Commissioner is authorized, for the training 
of persons in the planning, establishment, administration, or coordi-
nation of programs of cooperative education, for projects demonstrat-
' 
ing or exploring the feasibility or value of innovative methods of 
cooperative education, or for research into methods of improving, 
developing, or promoting the use of cooperative education programs 
in institutions of higher education, to— 
"(1) make grants to or contracts with institutions of higher 
education, or combinations of such institutions, and 
"(2) make grants to or contracts with other public or private 
nonprofit agencies or organizations, when such grants or contracts 
will make an especially significant contribution to attaining the 
objectives of this section.". 
DIRECT LOAN PROGRAM 
20 use 1087aa. 
SEC. 130. (a) Section 461(b) of the Act is amended by striking out 
"July 1,1975" and inserting in lieu thereof "October 1,1979". 
(b) Section 461(b)(2) of the Act is amended by striking out 
"June 30, 1976" and inserting in lieu thereof "September 30, 1979", 
and by striking out "July 1, 1975" and inserting in lieu thereof 
"October 1, 1979". 
20 use 1087cc. 
(c) Section 463(a) of the Act is amended by redesignating clauses 
(4) and (5) as clauses (5) and (6), respectively, and inserting imme-
diately after paragraph (3) the following new clause: 
" (4) provide that where a note or written agreement evidencing 
a note has been in default for (A) one hundred and twenty days, 
PUBLIC LAW 94-4«2—OCT. 12, 1976 
90 STAT. 2147 
-i 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, notice of such default 
shall be given to the Commissioner in a report describing the 
total number of loans from such fund which are in such default, 
and made to the Commissioner at least semiannually;". 
(d) Section 464(b) of the Act is amended by striking ", upon notice 20 USC 1087dd. 
to the Commissioner,". 
(e) Section 464(c)(1)(A) of the Act is amended by inserting 
;
> 
immediately before the semicolon at the end thereof the following: 
", except that such period may begin earlier than nine months after 
such date upon the request of the borrower". 
(f) Section 464(c) (1) (C) of the Act is amended to read as follows: 
"(C) may provide, at the option of the institution in accord-
ance with regulations of the Commissioner, that during the repay-
ment period of the loan, payments of principal and interest by 
the borrower with respect to all outstanding loans made to him 
from a student loan fund assisted under this part shall be at a 
rate equal to not less than $30 per month, except that the institu-
tion may, subject to such regulations, permit a borrower to pay 
less than $30 per month for a period of not more than one year 
where necessary to avoid hardship to the borrower, but without 
extending the ten-year maximum repayment period provided for 
in clause (A) of this paragraph;" 
(g) (1) Section 464(c) (1) of the Act is amended by redesignating 
clauses (F) and (G) as (G) and (H), respectively, and by inserting 
after clause (E) the following new clause: 
"(F) shall provide that the liability to repay the loan shall be 
canceled upon the death of the borrower, or if he becomes per-
manently and totally disabled as determined in accordance with 
regulations of the Commissioner;". 
(2) The amendments made by this subsection shall take effect on 
June 23,1972. 
(h) (1) Section 466 of the Act is amended by striking out "June 30, 
1980" wherever it appears and inserting in lieu thereof "September 30, 
1984". 
(2) Section 466 of the Act is further amended by striking out 
"December 31,1980" wherever it appears and inserting in lieu thereof 
"March 31,1985". 
(3) Section 466(b) of the Act is amended by striking out "June 30, 
1974" and inserting in lieu thereof "September 30,1978". 
(4) Section 466(c) of the Act is amended by striking out "July 1, 
1980" and inserting in lieu thereof "October 1,1984". 
Effective date. 
20 USC 1087dd 
note. 
20 USC 1087ff. 
STUDENT CONSUMER 
INFORMATION 
SEC. 131. (a) Section 493 of the Act is amended— 
20 USC 1088b. 
(1) by striking out "3 per centum" in subsection (a) and 
inserting in lieu thereof "4 per centum"; 
(2) by inserting "(1)" following "1958," and by inserting 
before tne period a comma and the following: "and (2) shall be 
used by such institution to carry out the provisions of section 
493AofthisAct"; 
(3) by striking "$125,000" in subsection (b) and inserting in 
lieu thereof, "$325,000"; and 
(4) by adding at the end of said section, the following new 
subsection: 
"(c) Payment received by an institution under this section shall be 
used first to carry out the provisions of section 493A of this Act and Post, p. 2148. 
90 STAT. 2148 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 
use 
1088b-l. 
20 
use 
1070a. 
Ante, p. 2108. 
20 
use 
1088b. 
"Prospective 
student." 
then for such additional administrative costs as the institution of 
higher education determines necessary.". 
(b) Subpart 1 of part F of title IV of the Act is further amended 
by inserting immediately after section 493 the following new sections: 
"INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR STUDENTS 
"SEC. 493A. 
(a)(1) Effective July 1, 1977, each institution of 
higher education and each eligible institution which receives pay-
ments under sections 411(d), 428(e) or 493 of this title, as the case 
may be, shall carry out information dissemination activities to pro-
spective students and to enrolled students who request information 
regarding financial assistance under this title. The information 
required by this section shall be produced and be made readily avail-
able, through appropriate publications and mailings, to all current 
students and to any prospective student upon request. The informa-
tion required by this section shall accurately describe— 
"(A) the student financial assistance programs available to 
students who enroll at such institution, 
"(B) the method by which such assistance is distributed among 
student recipients who enroll at such institution, 
"(C) any means, including forms, by which application for 
student financial assistance is made and requirements for accu-
rately preparing such applications and the review standards 
employed to make awards for student financial assistance, 
"(D) the rights and responsibilities of students receiving 
financial assistance under this title, 
"(E) the cost of attending the institution, including (i) tuition 
and fees, (ii) books and supplies, (iii) estimates of typical stu-
dent room and board costs or typical community costs, and (iv) 
any additional cost of the program in which the student is enrolled 
or expresses a specific interest, 
"(F) the refund policy of the institution for the return of 
unearned tuition and fees or other refundable portion of cost, as 
described in clause (E) of this subsection, 
"(G) the academic program of the institution, including (i) 
the current degree programs and other educational and training 
programs, (ii) the instructional, laboratory, and other physical 
plant facilities which relate to the academic program, (iii) the 
faculty and other instructional personnel, and (iv) data regard-
ing student retention at the institution and, when available, the 
number and percentage of students completing the programs in 
which the student is enrolled or expresses interest, and 
"(H) each person designated under subsection (b) of this sec-
tion, and the methods by which and locations in w hich any person 
so designated may be contacted by students and prospective stu-
dents who are seeking information required by this subsection. 
"(2) For purposes of this section, the term 'prospective student' 
means any individual who has contacted an institution of higher edu-
cation or an eligible institution requesting information for the pur-
pose of enrolling in that institution. 
"(b) Effective July 1, 1977, each institution of higher education or 
eligible institution, as the case may be, which receives payments 
authorized, under section 411(d), 428(e), or section 493 of this title 
shall designate an employee or group of employees who shall be avail-
able on a full-time basis to assist students or potential students in 
obtaining information as specified in the preceding subsection. The 
Commissioner may, by regulation, waive the requirement that an 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2149 
employee or employees be available on a full-time basis for carrying 
out responsibilities required under this section whenever an institution 
of higher education or eligible institution, as the case may be, in which 
the total enrollment, or the portion of the enrollment participating in 
programs under this title at that institution, is too small to necessitate 
such employee or employees being available on a full-time basis. No 
such waiver may include permission to exempt any such institution 
from designating a specific individual or a group of individuals to 
carry out the provisions of this section. 
"(c) Within 120 days after the date of enactment of the Education 
Amendments of 1976, the Commissioner shall begin to make available Ante, p. 2081. 
to institutions of higher education and eligible institutions descrip-
tions of Federal student assistance programs including the rights and 
responsibilities of student and institutional participants, in order to 
(1) assist students in gaining information through 
institutional 
sources, and (2) assist institutions in carrying out the provisions of 
this section, so that individual and institutional participants will be 
fully aware of their rights and responsibilities under such programs. 
"' 
u. 
STUDEXT AID INFORMATION SERVICES 
"SEC. 493B. In order to assist in the expansion and improvement of 
campus student aid information services, the Commissioner shall— 
"(1) survey institutional practices of providing students with 
complete and accurate information about student financial aid, 
including the employment of part-time financial aid counselors 
under work-study programs, hiring other part-time persons from 
the community, using campus or community volunteers, and com-
municating through use of publications or technology; collect 
institutional evaluations of such practices; and disseminate the 
information described in this clause; 
"(2) convene meetings of financial aid administrators, students, 
and other appropriate representatives to explore means of expand-
ing campus financial aid information services and improving the 
training of part-time individuals involved in such services; 
"(3) whenever possible, include student peer counselors and 
other part-time financial aid personnel in training programs spon-
sored by the Office of Education; and 
" (4) make recommendations to Congress not later than Octo-
ber 1, 1977, concerning his findings and legislative proposals for 
improving the use and quality of services of part-time campus 
financial aid personnel. 
20 use 
1088b-2. 
Recommendations 
to Congress. 
" S T U D E N T FINANCIAL ASSISTANCE TRAINING PROGRAM 
"SEC. 493C. (a) It is the purpose of this section to make incentive 
grants available to the States to be administered, in consultation with 
statewide financial aid administrator organizations, for the purpose of 
designing and developing programs to increase the proficiency of insti-
tutional and State financial aid administrators in all aspects of student 
financial 
aid. 
"(b) There are hereby authorized to be appropriated $280,000 for 
each year ending prior to October 1,1978, for equal division among the 
States. 
"(c) To receive a grant under this section a State must provide 
appropriate assurance to the Commissioner that the grant will be 
matched from State funds by an amount at least equal to the amount 
of the grant. 
Grants. 
20 use 
1088b-3. 
Appropriation 
authorization. 
90 STAT. 2150 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 
use 
1070b, 
1087a, 1088. 
Application. 
"(d) From the funds otherwise allotted to the States for subpart 2 
of part A, and for part C and part E of this title for States which 
have obtained a grant under this section, the Commissioner shall trans-
fer to such State an amount equal to .05 per centum of such funds or 
$10,000, whichever is less, and shall reduce such State allotment by 
that amount. 
"(e) A State which desires to obtain a grant under this section for 
any fiscal year shall submit an application therefor through or by the 
State agency administering its program of student grants, or if such 
agency does not exist, through or by any agency or organization des-
ignated for such purpose by the State, at such time or times, and con-
taining such information as may be required by such regulations as the 
Commissioner may prescribe for the purpose of enabling the Commis-
sioner to disburse the funds.". 
ELIGIBILITY FOR STUDENT ASSISTANCE 
20 use 1088f. 
SEC. 132. Section 497 of the Act is amended by adding at the end 
thereof the following new subsection: 
"(e) Any student assistance received by a student under this title 
shall entitle the student receiving it to payments only if— 
"(1) that student is maintaining satisfactory progress in the 
course of study he is pursuing, according to the standards and 
practices of the institution at which the student is in attendance, 
and 
"(2) that student does not owe a refund on grants previously 
received at such institution under this title, or is not in default 
on any loan from a student loan fund at such institution provided 
for in part E, or a loan made, insured, or guaranteed by the Com-
missioner under this title for attendance at such institution.". 
FISCAL RESPONSIBILITY 
SEC. 133. (a) Title IV of the Act is further amended by adding 
after section 497 the following new sections: 
"FISCAL ELIGIBILITY OF INSTITUTIONS 
Regulations. 
"SEC. 497A. (a) Notwithstanding any other provisions of this title, 
20 use 1088f-l. or of section 434(c) of the General Education Provisions Act, the 
Ante, p. 2129. 
Commissioner is authorized to prescribe such regulations as may be 
necessary to provide for— 
"(1) a fiscal audit of an eligible institution with regard to any 
funds obtained by it under this title or obtained from a student 
who has a loan insured or guaranteed by the Commissioner under 
this title; 
"(2) the establishment of reasonable standards of financial 
responsibility and appropriate institutional capability for the 
administration by an eligible institution of a program of student 
financial aid under this title; 
"(3) the establishment by each eligible institution under part 
B responsible for furnishing to the lender the statement required 
Ante, p. 2108. 
by section 428 (a) (2)(A)(i),of policies and procedures by which 
the latest known address and enrollment status of any student 
who has had a loan insured under this part and who has either 
formally terminated his enrollment, or failed to re-enroll on at 
least a half-time basis, at such institution, shall be furnished either 
to the holder (or if unknown, the insurer) of the note, not later 
than sixty days after such termination or failure to re-enroll; and 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2151 
" (4) the limitation, suspension or termination of the eligibility 
for any program under this title of any otherwise eligible institu-
tion, whenever the Commissioner has determined, after reasonable 
notice and opportunity for hearing on the record, that such insti-
tution has violated or failed to carry out any provision of this 
title or any regulation prescribed under this title, except that no 
period of suspension under this section shall exceed sixty days 
unless the institution and the Commissioner agree to an extension 
or unless limitation or termination proceedings are initiated by 
the Commissioner within that period of time. 
"(b) The Commissioner shall, for the purpose of carrying out the 
provisions of this section with respect to subpart 1 of part A of this 
title, enter into special arrangements with institutions of higher edu-
cation at which students receiving basic grants under that subpart are 
enrolled. The Commissioner shall include special provisions designed 
to carry out the provisions of this section in agreements with institu-
tions of higher education under section 413C, in agreements with eligi-
ble institutions under section 443, and in agreements with institutions 
of higher education under section 463. 
"(c) Upon determination that an eligible institution has engaged in 
substantial misrepresentation of the nature of its educational program, 
its financial charges, or the employability of its graduates, the Com-
missioner may suspend or terminate the eligibility status for any or 
all programs under this title of any otherwise eligible institution, in 
accordance with procedures specified in paragraph (a)(3), until he 
finds that such practices have been corrected. 
"(d) The Commissioner shall publish a list of State agencies which 
he determines to be reliable authority as to the quality of public post-
secondary vocational education in their respective States for the pur-
pose of determining eligibility for all Federal student assistance 
programs. 
"(e) For the purpose of this section the term 'eligible institution' 
means any such institution described in section 435(a) of this Act.", 
(b) (1) Any regulations for the carrying out of section 438, as in 
effect on the date immediately prior to the effective date of this sub-
section shall be deemed to remain in force until amended or superseded 
by new regulations of the Commissioner. 
(2) Within 120 days of the effective date of this subsection, the 
Commissioner is directed to issue a comprehensive revision of the 
regulations heretofore prescribed for the carrying out of section 438, 
for the purpose of modifying such regulations, to the extent possible, 
to make them applicable to all programs under title IV of the Act. 
PART E.—EDUCATION PROFESSIONS DEVELOPMENT 
REVISION o r TITLE V 
SEC. 151. (a)(1) The heading of title V of the Act is amended 
to read as follows: 
"TITLE V—TEACHER CORPS AND TEACHER TRAINING 
PROGRAMS". 
20 use 107()a. 
20 
use 
,
j 
1070b-l. 
42 
use 
2753. 
20 
use 
1087CC. 
"Eligible 
institution." 
Ante, p. 2130. 
Ante, p. 2133. 
20 use 1087-1 
note. 
20 use 1061. 
(2) Part A of such title is repealed. 
(3) Title V of the Act is amended— 
(A) by striking out 
Repeal. 
20 use 
1091-1092. 
90 STAT. 2152 
PUBLIC LAW 94-4fi2—OCT. 12, 1976 
Repeal. 
20 use 
1108-1110c, 
1111-1117, 
1119-1119b-l. 
20USC1119C-4. 
Repeal. 
20 use 
1119c-1119c-4. 
Infra. 
20 use 1102. 
20 use 1103. 
Effective date. 
20 use 1101 
note. 
20 use 1101. 
Appropriation 
authorization. 
20 use 1103. 
"PART B—ATTRACTING AND QUALIFYING TEACHERS", 
and 
' 
(B) by striking out 
"Subpart 1—Teachers Corps". 
* 
(4) (A) Subpart 2 of part B, and parts C, D, and E of such title are 
repealed. 
(B) Part F of title V of the Act is amended by adding at the end 
thereof a new section: 
u 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 555. There are authorized to be appropriated for the purposes 
of carrying out this part $25,000,000 for each of the fiscal years ending 
prior to October 1,1977.". 
(C) Effective September 30, 1977, part F of such title is repealed. 
(5) (A) Section 511(a) of the Act (as amended by section 152(a) 
(1)) is amended by striking out "subpart" and inserting in lieu 
thereof "part". 
(B) Section 512 of the Act is amended by striking out "subpart" 
and inserting in lieu thereof "part". 
(C) Section 513 of the Act is amended by striking out "subpart" 
and inserting in lieu thereof "part". 
(b) The amendments made by subsection (a) (except the amend-
ment made by paragraph 4(C) thereof) shall take effect on Septem-
ber 30, 1976. 
TEACHER CORPS 
SEC. 152. (a) (1) Section 511 of the Act is amended by inserting 
"(a)" after the section designation and by adding at the end thereof 
the following: 
"(b) For the purpose of carrying out the provisions of this part 
there are authorized to be appropriated $50,000,000 for the fiscal year 
1977, $75,000,000 for the fiscal year 1978, and $100,000,000 for the fiscal 
year 1979.". 
(2) Section 511(a) of the Act (as redesignated by paragraph (1) 
of this subsection) is further amended by striking out the words "and 
teacher aides" both places they appear and inserting in lieu thereof 
a comma and the following: "teacher aides, and other educational 
personnel". 
(b) Section 513 (a) of the Act is amended— 
(1) by striking out "two" the first time it appears in paragraph 
(1), and inserting in lieu thereof "five" and by inserting after 
"teacher aides" the following: "and other educational personnel"; 
(2) by striking out in paragraph (3) "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 
training program carried out under the guidance of an experi-
enced teacher" and inserting in lieu thereof "Teacher Corps pro-
grams each of which shall include teacher-intern teams led by 
experienced teachers, and may include additional experienced 
teachers, teacher aides, and other educational personnel, who may 
be afforded time by the local educational agency for a training 
program carried out"; and 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2153 
(3) by amending paragraph (7) to read as follows: 
"(7) (A) make available technical assistance to State and local 
educational agencies and institutions of higher education for 
carrying out arrangements entered into under this title; and 
"(B) provide planning, technical assistance, monitoring, docu-
menting, disseminating, and evaluation services for arrangements 
made under this title;". 
(c) Section 513(b) of the Act is amende^ by striking out "for 20 U
S
C 1103. 
teacher-interns while teaching" and inserting in lieu thereof "for 
Teacher Corps members while serving". 
(d) Section 513 of the Act is further amended by adding at the end 
thereof the following new subsections: 
"(e) (1) No arrangement may be entered into under the provisions 
of paragraph (1), (2), (3), (5), or (6) of subsection (a) of this 
section unless that arrangement is prepared with the participation of 
an elected council which shall be representative of the community in 
which the project subject to that arrangement is located and of the 
parents of the students of the elementary or secondary schools, or both, 
to be served by any such project. 
"(2) Each council selected pursuant to this subsection shall partici- 
,^ , ^^ ;-
pate with the local educational agency or institution of higher educa- 
'. -
tion, or both, in the planning, carrying out, and evaluation of projects 
subject to arrangements under paragraphs (1), (2), (3), (5), and (6) 
of subsection (a) of this section. 
"(3) The Commissioner is authorized in each fiscal year to arrange 
for the payment of necessary secretarial and administration expenses 
of each council elected pursuant to the provisions of this subsection 
for the purposes of carrying out its functions under this subsection. 
"(f) The Commissioner shall establish procedures seeking, with 
respect to the Teacher Corps members enrolled after the date of enact-
ment of the Education Amendments of 1976, goal of having approxi- Ante, p. 2081. 
mately five individuals who are at the time of enrollment, or who 
previously have been, employed as teachers by local educational 
agencies to one individual who has not been so employed. The Com-
missioner may waive the procedure established under this subsection 
if he makes a determination that there are insufficient qualified appli-
cants to maintain the goal sought by this subsection, or that there are 
insufficient employment opportunities for individuals who are not so 
employed, and submits a report to the Congress of such a 
determination. 
"(g) Notwithstanding any other provision of law, the Commmis-
sioner shall develop and establish specific criteria for entering into 
arrangements under this part in order to assist applicants for assist-
ance under this part to develop proposals to be submitted. Criteria 
established under this subsection shall be used by the Commissioner in 
selecting proposals under this title.". 
(e) Section 514 of the Act is amended by adding at the end thereof 20 USC 1104. 
the following new subsection: 
"(f) The Commissioner is authorized to compensate local educa-
tional agencies for released time for educational personnel of the 
agency who are being trained in Teacher Corps projects assisted under 
this title.". 
TEACHER TRAINING PROGRAMS 
SEC. 153. (a) Title V of the Act is further amended by inserting 
immediately before the heading of section 511 the following: 
90 STAT. 2154 
PUBLIC LAW 94-482—OCT. 12, 1976 
"PART A—TEACHER CORPS PROGRAM" 
and by adding at the end thereof the following new part: 
"PART B—TEACHER TRAINING PROGRAMS 
Grants. 
20 u s e 1119a. 
"Teacher 
center." 
" A U T H O R I Z A T I O N OF APPROPRIATIONS 
20 use 1119. 
"SEC. 531. There are authorized to be appropriated $75,000,000 for 
the fiscal year 1977 and for each of the fiscal years ending prior to 
October 1, 1979, to carry out the provisions of this part. Of the sums 
so appropriated for any fiscal year not less than 10 per centum shall 
be available for each of the programs authorized by sections 532 and 
533. 
"TEACHER CENTERS 
"SEC. 532. (a) (1) The Commissioner is authorized to make grants 
to local educational agencies in accordance with the provisions of this 
section to assist such agencies in planning, establishing, and operating 
teacher centers. 
"(2) For the purpose of this section, the term 'teacher center' 
means any site operated by a local educational agency (or a combina-
tion of such agencies) which serves teachers, from public and non-
public schools of a State, or an area or community within a State, in 
which teachers, with the assistance of such consultants and experts 
as may be necessary, may— 
"(A) develop and produce curricula designed to meet the edu-
cational needs of the persons in the community, area, or State 
' 
being served, including the use of educational research findings 
or new or improved methods, practices, and techniques in the 
development of such curricula; and 
-'-'*' 
"(B) provide training to improve the skills of teachers to en-
able such teachers to meet better the special educational needs 
of persons such teachers serve, and to familiarize such teachers 
with developments in curriculum development and educational 
research, including the manner in which the research can be 
used to improve their teaching skills. 
"(b) Each teacher center shall be operated under the supervision 
of a teacher center policy board, the majority of which is representa-
tive of elementary and secondary classroom teachers to be served by 
such center fairly reflecting the make-up of all schoolteachers, includ-
ing special education and vocational education teachers. Such board 
shall also include individuals representative of, or designated by, the 
school board of the local educational agency served by such center, 
and at least one representative designated by the institutions of higher 
education (with departments or schools of education) located in the 
area. 
Application. 
"(c)(1) Any local educational agency desiring to receive a grant 
under this section shall make application therefor at such time, in 
such manner, and containing or accompanied by such information, as 
the Commissioner may by regulation require. Each application shall 
be submitted through the State educational agency of the State in 
which the applicant is located. Each such State agency shall review 
the application, make comments thereon, and recommend each applica-
tion the State agency finds should be approved. Only applications so 
recommended shall be transmitted to the Commissioner for his 
approval. 
PUBLIC LAW 94-4«2—OCT. 12, 1976 
90 STAT. 2155 
"(2) Any local educational agency which has submitted an appli-
cation in accordance with paragraph (1) of this subsection which is 
dissatisfied with the action of the appropriate State educational agency 
may petition the Commissioner to request further consideration by the 
State educational agency. 
"(d) In approving any application under this section, the Commis-
sioner shall insure that there is adequate provision for the furnishing 
of technical assistance to, and dissemination of information derived 
from, the proposed teacher center by the appropriate State educational 
agency. Such State agency shall be adequately compensated by the 
Commissioner for such review of applications, recommendations, sub-
missions, technical assistance, and dissemination services. 
"(e) Any local educational agency having an application approved 
under this section may contract with an institution of higher educa-
tion to carry out activities under, or provide technical assistance in 
connection with, such application. 
"(f) Notwithstanding the provisions of subsection (a)(1) of this 
section with respect to the requii-ement that teacher centers be operated 
by local educational agencies, 10 per centum of the funds expended 
under this section may be expended directly by the Commissioner to 
make grants to institutions of higher education to operate teacher 
centers, subject to the other provisions of this section. 
"TRAINING FOR HIGHER EDUCATION PERSONNEL 
"SEC. 533. (a) The Commissioner is authorized to make grants to 
institutions of higher education to assist such institutions in the 
training of individuals— 
"(1) preparing to serve as teachers, including guidance and 
counseling personnel, administrative personnel, or education 
specialists in institutions of higher education if such individuals 
are (A) from cultural or educational backgrounds which have 
hindered such individuals in achieving success in the field of 
education, or (B) preparing to serve in educational programs 
designed to meet the special needs of students from such back-
grounds; or 
"(2) serving as teachers, including guidance and counseling 
personnel, administrative personnel, or education specialists in 
institutions of higher education, if such individuals are to be 
trained to meet changing personnel needs, such as in areas deter-
mined to be national priority areas pursuant to section 532 of 
this title. 
"(b) Grants made under this section may be used only to assist in 
paying the cost of courses of training or study, including short term or 
regular institutes, symposia or other inservice training, for teachers, 
including guidance and counseling personnel, administrative person-
nel, or educational specialists in institutions of higher education.". 
PART F—FINANCIAL ASSISTANCE FOR THE IMPROVEMENT OF 
/ 
UNDERGRADUATE INSTRUCTION 
Grants. 
20 use 
1119a-l. 
'J^u -^}S. 
:m'j fM 
EXTENSION OF AUTHORIZATION 
SEC. 156. (a) Section 601(b) of the Act is amended by striking out 20 USC 1121. 
that part of the text thereof which precedes "to enable" and inserting 
in lieu thereof the following: "There are authorized to be appropri-
ated $60,000,000 for each of the fiscal years ending prior to 
October 1,1979,". 
90 STAT. 2156 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 use 1121. 
20 use 1124. 
Grants. 
(b) Section 601(c) of the Act is amended by striking out that part 
of the text thereof which precedes "to enable"' and inserting in lieu 
thereof the following: "There are authorized to be appropriated 
$10,000,000 for each of the fiscal years ending prior to October 1, 
1979,". 
REVISION OF MAIXTEXAXCE OF EFFORT 
SEC. 157. (a) Section 604(b) of the Act is amended by striking out 
all after the first sentence of such section and inserting in lieu thereof 
the following: "The Commissioner shall establish basic criteria for 
making determinations under this subsection.". 
(b) Section 604 of the Act is amended by adding at the end thereof 
the following new subsection: 
"(c) 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 has expended from current funds available for that year 
for instructional and library purposes, other than personnel costs, 
during the preceding fiscal year an amount not less than the amount 
expended, per equivalent full-time student or in the aggregate, which-
ever is less, by such institution from current funds for such purposes 
during the second preceding fiscal year. A combination of institutions 
of higher education shall be eligible for such a grant in accordance with 
regulations of the Commissioner prescribing requirements for mainte-
nance of effort. The Commissioner shall establish basic criteria for 
making determinations under this subsection, and may waive so much 
of the requirement of this subsection as he determines is equitable in 
accordance with objective criteria of general applicability.". 
PxVRT G 
COXSTRUCTION OF ACADEMlC FACILITIES 
EXTEXSIOX OF PROGRAM 
20 use 1132a. 
SEC. 161. (a) Section 701(b) is amended by striking out "June 30, 
1974, and June 30, 1975" and inserting in lieu thereof "prior to 
October 1, 1979". 
20 use 1132b. 
(b) Section 721(b) is amended by striking out "for the fiscal year 
ending June 30, 1975" and inserting in lieu thereof "for each of the 
fiscal years ending prior to October 1, 1979". 
20 use 1132c. 
(c) Section 741(b) is amended by striking out "for the fiscal year 
ending June 30, 1975" and inserting in lieu thereof "for each of the 
fiscal years ending prior to October 1, 1979". 
20 use 1132C-4. 
(d)" Section 745(c) (2) is amended by striking out "July 1 of each of 
the four succeeding years" and inserting in lieu thereof, "the first day 
of each fiscal year during the period ending September 30, 1979". 
20 USeil32d-l. 
(e) Section 762(a) is amended by striking out "July 1, 1975" and 
inserting in lieu thereof "October 1, 1979". 
20 use 1132a, 
1132b, 1132c. 
REVISION OF PROGRAM 
SEC. 162. (a) Title V I I of the Act is amended— 
(1) by inserting ". RECONSTKUCTION AXD EEXOVA-
T I O N " immediately after "COXSTRUCTIOX" in the heading 
of such title; 
(2) by inserting ", RECOX^STRUCTIOX, AND EENOVATION" imme-
diately after "CONSTRUCTION" each place it appears in the head-
ings of Parts A, B and C of such title; 
(3) by inserting ", reconstruction, or renovation" immediately 
after "construction" each place it appears in sections 701(a), 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2157 
702(c)(1),703(c) (l),T04(a) (2) (A),705(a),705(b),706(a)(1), 
707(a) (2), 707(c) (1), 741(a) (2), 742(a) (3), 745(a), 745(e) (3), 
746(a) (1), 781(a), 781(b), 782(3), and 782(5); 
(4) by inserting "reconstructed or renovated" after 
"con-
structed," in section 705(b), section 781, and section 782(1); 
(5) by striking out "construction" in section 707(a) (2) (F) 
and inserting in lieu thereof, "project"; and 
(6) by inserting "reconstruct or renovate" after the word 
"construct" in section 742(a)(4). 
(b) Section 701(c) of the Act is amended by inserting "an appro-
priate amount, but in no case less than" immediately before "24 per 
centum". 
(c) Section 704(b) of the Act is amended to read as follows: 
"(b) The Commissioner shall not disapprove any State plan sub-
mitted under this section unless he determines after reasonable notice 
and opportunity for hearing and comment, that the plan is inconsist-
ent with a specific provision of this section or other relevant sections 
of this title." 
(d) Section 705(a) of the Act is amended by striking out "on the 
campus of such institution". 
(e) Section 721 (a) of the Act is amended by inserting " (1)" imme-
diately after " ( a ) " and by adding at the end thereof the following new 
paragraph: 
" (2) The Commissioner is authorized to make grants to or enter into 
contracts with institutions of higher education for the construction 
of facilities for model intercultural programs designed to integrate 
the educational requirements of substantive knowledge and language 
proficiency.". 
(f) Section 743 (b) (5) of the Act is amended by inserting before the 
semicolon the following: "including (A) the granting of a temporary 
moratorium on the repayment of principal or interest or both to any 
institution of higher education or higher education building agency the 
Commissioner finds to be temporarily unable to make such repayment 
without undue financial hardship, if such institution or agency pre-
sents, aiid the Commissioner approves, a specific plan to make such 
repayment including a schedule for such repayment, and (B) the 
granting to any such institution or agency for which he has author-
ized a loan under this part prior to January 1, 1976, of the option to 
pay into the fund established under section 744 an amount equal to 
75 per centum of the total current obligation of the institution or 
agency under this part, in full accord and satisfaction of such total 
current obligation, if such institution or agency desiring to exercise 
such an option makes payment from non-Federal sources prior to 
October 1, 1979.". 
(g) (1) Section 745(b) of the Act is amended by striking out "sec-
tion 744(b)(2)" and inserting in lieu thereof "section 742(b)". 
(2) Section 745 (c)(2) of the Act is amended by striking out "four" 
and inserting in lieu thereof "six", and by inserting before the period 
at the end thereof a comma and the following: "and October 1, 1977 
and on October 1 of each of the succeeding fiscal years". 
(h) Section 762(a) of the Act is amended by striking out "Office 
of Emergency Planning" and inserting in lieu thereof "Office of 
Emergency Preparedness". 
(i) Title VII of the Act is further amended by redesignating Part 
E and all references thereto as Part F and by inserting immediately 
after Part D the following new part: 
20 use 1132a-
1132a-6, 1132c, 
1132C-1, 1132c-
4, 11320-5, 
1132e, 1132e-l. 
20USC1132a-4, 
1132e, 1132e-l. 
20 use 1132a-6. 
20 use 11320-1. 
20 use 1132a. 
20 use 1132a~3. 
20USeil32a-4. 
20 use 1132b. 
Grants and 
contracts. 
20USeil32c-2. 
20 use 11320-3. 
20 use 11320-4. 
20 use 1132d-l. 
20 use 1132e. 
90 STAT. 2158 
PUBLIC LAW 94-482—OCT. 12, 1976 
Grants. 
20 use 
1132d-ll. 
20 use 1132a. 
20 use 1132b. 
20 use 1132c. 
20USeil32c-3. 
42 use 4151. 
20 use 
1132e-l. 
Definitions. 
"PART E—RECOXSTRUOTION AND RENOVATION 
"SEC. 771. (a) The Commissioner is authorized to make grants from 
funds appropriated under section 701(b), grants from funds appro-
priated under section 721(b), loans from funds appropriated under 
section 741(b), or loans, to the extent provided in advance by appro-
priations Acts, from any unused amounts in the fund established 
under section 744, notwithstanding any prior restrictions on the use 
of such unused amounts, to institutions of higher education and to 
higher education building agencies for the reconstruction or renova-
tion of academic facilities if the primary purpose of such reconstruc-
tion or renovation is— 
"(1) to enable such institutions to economize on the use of 
energy resources, or 
" (2) to enable such institutions to bring their academic facil-
ities into conformity with the requirements of— 
" ( A ) the Act of August 12, 1968, commonly known as 
the Architectural Barriers Act of 1968, or 
"(B) environmental protection or health and safety pro-
grams mandated by Federal, State or local law, if such 
requirements were not in effect at the time such facilities 
were constructed. 
"(b)(1) In determining whether the primary purpose of a pro-
posed reconstruction or renovation is to conserve energy, the Commis-
sioner shall consult with other Federal agencies which have specific 
expertise in energy conservation. 
"(2) In determining whether the primary purpose of a proj)Osed 
reconstruction or renovation is to enable such facility to meet environ-
mental protection standards or health or safety requirements imposed 
under law, the Commissioner shall consult with the appropriate Fed-
eral, State or local agency responsible for the administration of such 
law. 
"(3) In determining whether the primary purpose of a proposed 
reconstruction or renovation is to enable such facility to comply with 
the Act of August 12, 1968, the Commissioner shall consult with the 
Architectural and Transportation Barriers Compliance Board and 
the Administrator of General Services. 
"(c) A loan pursuant to this section shall be repaid within such 
period not exceeding twenty years as may be determined by the 
Commissioner." 
(j) Section 782 of the Act is amended— 
(1) by inserting immediately before the period at the end of 
paragraph (1) (B) in section 782 the following: ", except that 
the term 'academic facilities' may include any facility described 
in clause (v) to the degree that such facility is owned, operated, 
and maintained by the institution of higher education request-
ing the approval of a project; and that funds available for such 
facility under such project shall be used solely for the purpose 
of conversion or modernization of energy utilization techniques 
to economize on the use of energy resources; and that such project 
is not limited to facilities described in clause (v) of this subsec-
tion"; and 
(2) by striking out paragraph (2) of such section and inserting 
in lieu thereof the following: 
"(2) (A) The term 'construction' means (i) erection of new or 
expansion of existing structures, and the acquisition and installa-
tion of initial equipment therefor; or (ii) acquisition of existing 
structures not owned by the institution involved; or (iii) a combina-
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2159 
tion of either of the foregoing. For the purposes of the preceding sen- 
v.. i,;; 
tence, the term 'equipment' includes, in addition to machinery, utilities, 
and built-in equipment and any necessary enclosures or structures to 
house them, all other items necessary for the functioning of a par-
ticular facility as an academic facility, including necessary furniture, 
except books, curricular, and program materials, and items of current 
and operating expense such as fuel, supplies, and the like; the term 
'initial equipment means equipment acquired and installed in connec-
tion with construction; and the terms 'equipment', 'initial equipment', 
and 'built-in equipment' shall be more particularly defined by the 
Commissioner by regulation. 
"(B) The term 'reconstruction or renovation' means rehabilitation, 
alteration, conversion, or improvement (including the acquisition and 
installation of initial equipment, or modernization or replacement of 
such equipment) of existing structures. For the purposes of the preced- 
, 
;
C 
ing sentence, the term 'equipment' includes, in addition to machinery, 
utilities, and built-in equipment and any necessary enclosures or struc-
tures to house them, all other items necessary for the functioning of 
a particular facility as an academic facility, including necessary furni-
ture, except books, curricular and program materials, and items of 
'i '-^ •' 
current and operating expense such as fuel, supplies, and the like; the 
term 'initial equipment' means equipment acquired and installed either 
N 
in connection with construction as defined in paragraph (2) (A), or as 
part of the rehabilitation, alteration, conversion, or improvement of 
an existing structure, which structure would otherwise not be adequate 
for use as an academic facility; the terms 'equipment', 'initial equip-
ment', and 'built-in equipment' shall be more particularly defined by 
the Commissioner by regulation; and the term 'rehabilitation, altera-
tion, conversion, or improvement' includes such action as may be 
necessary to provide for the architectural needs of, or to remove archi-
tectural barriers to, handicapped persons with a view toward increasing 
the accessibility to, and use of, academic facilities by such persons.". 
PART H—GRADUATE PROGRAMS 
EXTENSION AND REVISION OF GRADUATE FELLOWSHIPS AND ASSISTANCE 
SEC. 171. (a) (1) Section 901 (a) (3) is amended by striking out 20 USC 1134. 
"clauses (2), (3), and (4)" and inserting in lieu thereof "clauses (1) 
and (2)". 
(2) Section 901(c) of the Act is amended to read as follows: 
"(c) There are authorized to be appropriated $50,000,000 for each 
of the fiscal years ending prior to October 1, 1979, for the purpose of 
this part.". 
(3) (A) Section 902(b) of the Act is amended by inserting " ( 1 ) " 20 USC 1134a. 
before "sets forth", and by inserting before the period a comma and 
the following: "and (2) provides assurances that the institution has 
notified the appropriate State commission (established or designated 
under section 1202 of this Act) and that the State commission has 
been given the opportunity to offer recommendations on the applica-
tion to the institution and to the Commissioner". 
(B) Section 902 of the Act is amended by adding at the end thereof 
the following new subsection: 
"(c) In considering an application under this part for a program 
.=, .; = j < L 
of activities from an institution of higher education within a State, 
tlie Commissioner shall assure that consideration is given to the degree 
to which such program will be consistent with State, regional, 
or national priorities.". 
90 STAT. 2160 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 use 1134b. 
(4) Section 903(b) of the Act is amended by striking out the word 
"and" at the end of clause (4), by striking out the period at the end of 
clause (5) and inserting in lieu thereof a semicolon and the word 
"and" and by adding at the end thereof the following new clauses: 
"(0) the development of proposed graduate and professional 
programs; and 
"(7) needed innovation in graduate and professional pro-
grams.", 
(b) Part B of title I X of the Act is amended to read as follows: 
"PART 
B—FELLOWSHIPS FOR GRADUATE AND PROFESSIONAL STUDY 
"APPROPRIATIONS AUTHORIZED 
20 use 1134d. 
"SEC. 921. There are authorized to be appropriated such sums as 
may be necessary to carry out the provisions of this part. 
NUMBER o r 
FELLOWSHIPS 
20 use 1134e. 
"SEC. 922. (a) During the fiscal year ending June 30, 1973, and 
each of the succeeding jEiscal years ending prior to October 1, 1979, 
the Commissioner is authorized to award not to exceed seven thousand 
five hundred fellowships to be used for study in graduate programs 
at institutions of higher education. Such fellowships may be awarded 
for such period of study as the Commissioner may determine but not 
in excess of thirty-six months except that the Commissioner may pro-
vide by regulation for the granting of such fellowships for a period 
of study not to exceed one twelve-month period in addition to the 
thirty-six month period set forth in this section under special circum-
stances which the Commissioner determines would most effectively 
serve the purposes of this part. The Commissioner shall make a deter-
mination to provide such twelve-month extension of an award to an 
individual fellowship recipient upon review of an application for such 
extension by the recipient. 
"(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 section but vacated prior to the end 
of the period for which they were awarded; except that each fellow-
ship 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. 
"(c) The Commissioner may allow a fellowship recipient to inter-
rupt his studies for a period not to exceed twelve months for the pur-
• 
pose of work, travel, or independent study away from the campus, if 
such independent study is supportive of the fellowship recipient's 
academic program, except that the Commissioner shall make no pay-
ments to the fellow^ship recipient for such period for stipends, travel 
expenses, or allowances for dependents or payments to institutions 
pursuant to the recipient's fellowship award. 
"AWARD OF FELLOWSHIPS AND APPROVAL OF GRADUATE PROGRAMS 
20 use 1134f. 
"SEC. 923. (a) The total number of fellowships authorized by section 
922(a) to be awarded during a fiscal year shall be awarded by the 
Commissioner on such bases as he may determine, except that recipi-
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2161 
ents of such fellowships shall be individuals who have been admitted 
or who are enrolled in graduate or professional programs approved 
by the Commissioner and who are pursuing, a course of study leading 
to a degree of doctor of philosophy, doctor of arts, or an equivalent 
degree. The Commissioner shall approve a graduate program of an 
institution of higher education only upon his finding that the applica-
tion contains satisfactory assurance that the institution will provide 
special orientations and practical experiences designed to prepare its 
fellowship recipients (1) for academic careers at some level of educa-
tion beyond the high school, or (2) for other than academic careers 
in professional career fields of importance to the national interest, as 
determined by the Commissioner. 
"(b) In determining priorities and procedures for the award of 
fellowships under this section the Commissioner shall— 
"(1) take into account present and projected needs for highly 
trained individuals in all areas of education beyond high school, 
"(2) take into account present and projected needs for highly 
trained individuals in other than academic career fields of high 
national priority, 
"(3) consider the need to prepare a larger number of individ-
uals from minority groups, especially from among such groups 
who have been traditionally underrepresented in colleges and uni-
versities, but nothing contained in this clause shall be interpreted 
to require any educational institution to grant preference or dis-
parate treatment to the members of one minority group on account 
of an imbalance which may exist with respect to the total number 
• 
or percentage of individuals of that group participating in or 
receiving the benefits of this program, in comparison with the 
total number or percentage of individuals of that group in any 
community. State, section, or other area, 
"(4) assure that consideration in awarding fellowships under 
this part is given (A) to individuals who have demonstrated their 
competence outside of a higher education setting for at least two 
years subsequent to the completion of their undergraduate studies, 
or (B) to individuals with varied backgrounds and experiences 
who have acquired such backgrounds and experiences in other 
than academic settings, 
"(5) seek to achieve a reasonably equitable geographical dis-
tribution of graduate programs approved under this section, 
based upon such factors as student enrollments in institutions 
of higher education and population. 
"(c) No fellowship shall be awarded under this part for study at a 
school or department of divinity. 
u 
FELLOWSHIP STIPENDS 
"SEC. 924. (a) The Commissioner shall pay to individuals awarded 
20 U
S
C 1134g. 
fellowships under this part such stipends (including such allowances 
for subsistence and other expenses for such persons and their depend-
ents) as he may determine to be consistent with prevailing practices 
under comparalale federally supported programs. 
"(b) The Commissioner shall (in addition to the stipends paid to 
individuals under subsection (a)) pay to the institution of higher 
education at which such person is pursuing his course of study such 
amounts as the Commissioner may determine to be consistent with 
prevailing practices under comparable federally supported programs, 
except that such amount charged to a fellowship recipient and col-
90 STAT. 2162 
PUBLIC LAW 94-482—OCT. 12, 1976 
lected from such recipient by the institution for tuition and other 
expenses required by the institution as part of the recipient's instruc-
tional program shall be deducted from the payments to the institution 
under this subsection. 
20 use 1134h. 
20 use 1134i. 
"FELLOWSHIP CONDITIONS 
"SEC. 925. (a) An individual awarded a fellowship under the pro-
visions of this part shall continue to receive payments provided in 
section 924 only_during such periods as the Commissioner finds that 
he is maintaining satisfactory proficiency in, and devoting essentially 
full time to, study or research in the field in which such fellowship 
was awarded, in an institution of higher education, and is not engag-
ing in gainful employment other than part-time employment by such 
institution in teaching, research, or similar activities, approved by 
the Commissioner. 
"(b) The Commissioner is authorized to require reports containing 
such information in such form and to file at such times as he deter-
mines necessary from any person awarded a fellowship under the 
provisions of this part. Such reports shall be accompanied by a certifi-
cate from an appropriate official at the institution of higher education, 
library, archive, or other research center approved by the Commis-
sioner, stating that such person is making satisfactory progress in, 
and is devoting essentially full time to the program for which the 
fellowship was awarded.". 
(c) (1) Section 941 of the Act is amended to read as follows: 
"AWARD OF PUBLIC SERVICE FELLOWSHIPS 
"SEC. 941. (a) During the fiscal year ending June 30,1973, and each 
of the succeeding fiscal years ending prior to October 1, 1979, the 
Commissioner is authorized to award not to exceed five hundred fel-
lowships in accordance with the provisions of this part for graduate 
or professional study for pei-sons who plan to pursue a career in public 
service. Such fellowships shall be awarded for such periods as the 
Commissioner may determine, but not in excess of thirty-six months 
except that the Commissioner may provide by regulation for the 
granting of such fellowships for a period of study not to exceed one 
twelve-month period in addition to the thirty-six month period set 
forth in this section under special circumstances which the Commis-
sioner determines would most effectively serve the purposes of this 
part. The Commissioner shall make a determination to provide such a 
twelve-month extension of an award to an individual fellowship 
recipient upon review of an application for such extension by the 
recipient. 
"(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 section but vacated prior to the end 
of the period for which they were awarded; except that each fellow-
ship 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. 
"(c) The Commissioner may allow a fellowship recipient to inter-
rupt his studies for a period not to exceed twelve months for the pur-
pose of work, travel, or independent study away from the campus, if 
such independent study is supportive of the fellowship recipient's 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2163 
Appropriation 
authorization. 
academic program, except that the Commissioner shall make no pay-
ments to the fellowship recipient for such period for stipend, travel 
expenses, or allowances for dependents or payments to institutions 
pursuant to the recipient's fellowship award. 
"(d) There are authorized to be appropriated such sums as may 
be necessary to carry out the provisions of this part.". 
(2) Section 942 of the Act is amended by striking out the "and" 20 USC 1134]. 
at the end of clause (1), by striking out the period at the end of 
clause (2) and inserting in lieu thereof a semicolon and the word 
"and" and by inserting at the end thereof the following new clauses: 
"(3) attract persons other than recent college graduates to 
pursue a career in public service; and 
"(4) provide additional training for individuals who by past 
activities, occupation, or training liave demonstrated a commit- 
^ 
ment to a career in public service.". 
(3) (A) Section 943 (4) (A) of the Act is amended by inserting after 20 USC 1134k. 
"enter" the following: "or continue in". 
(B) Section 943(4) (B) of the Act is amended by inserting after 
the word "enter" the following: "or continue in". 
(4) Section 944(b) of the Act is amended by inserting before the 20 U
S
C 1134/. 
period at the end thereof a comma and the following: except that 
such amount charged to a fellowship recipient and collected from 
such recipient by the institution for tuition and other expenses required 
by the institution as part of the recipient's instructional program shall 
be deducted from the payments to the institution under this 
subsection.". 
(d) (1) Section 961(b) (1) of the Act is amended by striking out 20 USC 1134n. 
"two" and by inserting after "fiscal years" the following: "ending 
prior to October 1, 1979". 
(2) The third sentence of section 961 (c) is amended by striking out 
"to exceed 3 years" and inserting in lieu thereof the following: "in 
excess of thirty-six months, except that the Commissioner may pro-
vide by regulation for the granting of such fellowships for a period 
of study not to exceed one twelve-month period in addition to the 
thirty-six-month period set forth in this section under special circum-
stances which the Commissioner determines would most effectively 
serve the purposes of this part. The Commissioner shall make a deter-
mination to provide such a twelve-month extension of an award to an 
individual fellowship recipient upon review of an application for such 
extension by the recipient". 
(3) Section 961 of the Act is amended by adding at the end thereof 
the following new subsection: 
"(d) The Commissioner may allow a fellowship recipient to inter-
rupt his studies for a period not to exceed twelve months for the pur-
pose of work, travel, or independent study away from the campus, if 
such independent study is supportive of the fellowship recipient's 
academic program, except that the Commissioner shall make no pay-
ments to the fellowship recipient for such period for stipends, travel 
expenses, or allowances for dependents or payments to institutions 
pursuant to the recipient's fellowship award.". 
(€) Section 963 of the Act is amended to read as follows: 
20 U
S
C 1134p. 
u 
STIPENDS AND INSTITUTIONS OF HIGHER EDUCATION ALLOWANCES 
"SEC. 963. (a) The Commissioner shall pay to persons awarded fel-
lowships under this part such stipends (including such allowances for 
90 STAT. 2164 
PUBLIC LAW 94-482—OCT. 12, 1976 
20USC1134r-l. 
20USC1134r-2. 
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) The Commissioner shall (in addition to the stipends paid to 
persons under subsection (a)) pay to the institution of higher educa-
tion at which such person is pursuing his course of study, such amounts 
as the Commissioner may determine to be consistent with prevailing 
practices under comparable federally supported programs, except 
that such amount charged to a fellowship recipient and collected from 
such recipient by the institution for tuition and other expenses required 
by the institution as part of the recipient's instructional program shall 
be deducted from 
the payments to the institution under 
this 
subsection.". 
(5) Section 966 of the Act is amended by striking out "July 1,1978" 
and inserting in lieu thereof "October 1,1979". 
(e) Title I X of the Act is amended by inserting after part D the 
following new part: 
"PART E — A N N U A L FELLOWSHIP KEPORT 
U-
REPORT ON GRADUATE FELLOWSHIPS AND ASSISTANCE 
"SEC. 971. (a) Within one hundred and twenty days after the end of 
each fiscal year during which grants or fellowships are awarded 
under the provisions of this title the Commissioner shall prepare 
and submit to the Congress a report which— 
"(1) specifies the authority for and amount of each grant or 
fellowship so awarded; 
"(2) identifies the institutions which received such grants; and 
"(3) identifies the institutions which students receiving such 
fellowships attended. 
"(b) Each report required by this section shall contain an evaluation 
which— 
"(1) examines the extent to which grants or fellowships 
awarded under this title emphasized studies relating to— 
"(A) innovation in the field of graduate education; 
"(B) emerging fields of knowledge; 
"(C) areas of overriding national concern; or 
" ( D ) the education and employment of personnel in areas 
which the Commissioner finds to be of special need; and 
"(2) examines the extent to which grants and fellowships 
awarded under this title made substantial progress toward achiev-
ing the purposes of the various parts of this title under which they 
were awarded.". 
LAW SCHOOL CLINICAL ASSISTANCE PROGRAM 
20 use 1136b. 
SEC. 172. Section 1103 of the Act is amended by striking out "July 1, 
1975" and inserting in lieu thereof "October 1,1979". 
PART I—COMMUNITY COLLEGES AND STATE POSTSECONDARY PLANNING 
EXTENSION AND REVISION OF TITLE X 
SEC. 176. (a) (1) The heading of title X of the Act is amended to 
read as follows: 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2165 
" 
"TITLE X—ESTABLISHMENT AND EXPANSION 
OF COMMUNITY COLLEGES". 
(2) Such title is amended by striking out 
"PART A—ESTABLISHMENT AND EXPANSION OF COMMUNITY COLUEGES 
"Subpart 1—Statewide Plans" 
and inserting in lieu thereof: 
"PART A—STATEWIDE PLANS". 
(3) Section 1001(a) of the Act is amended by striking out "sub-
part" and inserting in lieu thereof "part". 
(4) Section 1001(b) (1) of the Act is amended to read as follows: 
"(b)(1) There are authorized to be appropriated $15,700,000 for 
each of the fiscal years ending prior to October 1, 1979, to carry out 
the provisions of this section.". 
(5) Section 1001 of the Act is further amended by striking the 
last sentence of subsection (c) and inserting in lieu thereof: "The 
Commissioner shall not disapprove any plan unless he determines, 
after i-easonable notice and opportunity for hearing and comment, that 
it is inconsistent with the requirements set forth in this section.". 
(b) (1) Such title is further amended by striking out "Subpart 2" 
in the heading following section 1001 and inserting in lieu thereof 
"Part B". 
(2) (A) Section 1011(a) of the Act is amended by striking out 
"subpart" and inserting in lieu thereof "part". 
(B) Section 1011 (b) of the Act is amended to read as follows: 
"(b) For the purpose of carrying out this part, there are authorized 
to be appropriated $150,000,000 for each of the fiscal years ending 
prior to October 1,1979.". 
(3) Section 1012(b) of the Act is amended by striking out "sub-
part" and inserting in lieu thereof "part". 
(c) Part B of title X of the Act as in effect prior to the amendments 
made bv subsection (b) of this section is repealed. 
(d) The amendments made by paragraphs (1), (2), (3) of subsec-
tion (a), paragraphs (1), 2(A), (3) of subsection (b), and subsec-
tion (c) shall take effect on September 30,1977. 
EXPANSION GRANTS 
SEC. 177. Section 1014 of the Act is amended to read as follows: 
u 
EXPANSION GRANTS 
"SEC. 1014. (a) The Commissioner is authorized to make grants, 
consistent with the terms of the appropriate State plan approved 
under section 1001, to existing community colleges to enable them 
to carry out the provisions of subsections (b) and (c) of this section. 
Of the funds appropriated for subpart 2 of this part, the Commis-
sioner shall make grants pursuant to subsection (b), before making 
grants under any other subsection or section of this subpart, until 
such time as he determines all approved requests relating to subsec-
tion (b) have been funded. 
"(b) The Commissioner is authorized to make grants to eligible 
institutions to assist them in modifying their educational programs 
and instructional delivery systems to provide educational programs 
20 use 1135. 
Appropriation 
authorization. 
20 u s e 1135a. 
Appropriation 
authorization. 
20 u s e 1135a-l. 
Repeal. 
20 use 
1135b-1135b-9. 
Effective date. 
20 u s e 1135 
note. 
20 use 
1135a-3. 
90 STAT. 2166 
PUBLIC LAW 94-482—OCT. 12, 1976 
especially suited to those persons whose educational needs have been 
inadequately served, especially those among the handicapped, older 
persons, persons who can attend only part-time, and persons who 
otherwise would be unlikely to continue their education beyond the 
high school. Such programs may include, but are not limited to, 
methods designed to eliminate such barriers to student access as 
inflexible course schedules, location of instructional programs, and 
inadequate transportation. 
"(c) The Commissioner is also authorized to make grants to eligi-
ble institutions to assist them in expanding their enrollment capacity 
or in establishing new educational sites as documented in the State 
plan. Any grants related to facilities may only be made to institutions 
which have provided the Commissioner with such assurances as he re-
quires that they have first explored the possibilities of using existing 
facilities on the campus of the applying institution, existing facil-
ities in the community which are suitable and available for educa-
tional programs without unreasonable cost to the institution, and 
explored the willingness of other institutions within a reasonable 
commuting distance to provide educational programs, or space or 
other components of an educational delivery system, through contract 
or other agreement with the institution.". 
REVISION OF DEFINITION OF COMMUNITY COLLEGE 
20 use 
SEC. 178. Paragraphs (2) and (3) of section 1018 of the Act are 
1135a-7. 
amended to read as follows: 
"(2) admits as regular students persons who are high school 
a? ; 
graduates or the equivalent, or beyond the age of compulsory 
school attendance; 
"(3) provides a postsecondary education program leading to 
an associate degree or acceptable for credit toward a bachelor's 
degree;". 
AUTHORIZATION FOR STATEWIDE PLANNING 
20 use 1142b. 
SEC. 179. (a) Section 1203 of the Act is amended by redesignating 
subsection (c) as subsection (d) and by inserting immediately after 
subsection (b) the following new subsection: 
Grants. 
"(c) The Commissioner is authorized to make grants to State com-
missions established pursuant to section 1202(a), and to interstate 
compact postsecondary educational agencies approved by the Com-
missioner for the purpose of this subsection, applying jointly for the 
purpose of this subsection, to enable the participating commissions 
to plan, develop, and carry out interstate cooperative postsecondary 
education projects designed to increase the accessibility of postsec-
ondary educational opportunities for the residents of the participating 
States and to assist such States to carry out postsecondary education 
programs in a more effective and economical manner.". 
(b) Section 1203(d) of the Act (as redesignated by this section) is 
amended to read as follows: 
"(d) (1) There are authorized to be appropriated such sums as may 
be necessary for each fiscal year ending prior to October 1, 1979, to 
carry out the provisions of this section other than subsection (c) of this 
section. 
"(2) There are authorized to be appropriated $2,000,000 for each 
fiscal year ending prior to October 1,1979, to carry out the provisions 
of subsection (c) of this section.". 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2167 
PABT J—GENERAL PROVISIONS 
DEFINITIONS 
SEC. 181. Section 1201(a) of the Act is amended by inserting 20 USC 1141. 
immediately after the second sentence the following new sentence: 
"Such term also includes a public or nonprofit private educational 
institution in any State which, in lieu of the requirement in clause (1), 
admits as regular students persons who are beyond the age of com-
pulsory school attendance in the State in which the institution is 
j >; | 
located and who have the ability to benefit from the training offered 
by the institution.". 
ANTIDISCRIMINATION 
AMENDMENT 
SEC. 182. Title X I I of the Act is amended by adding at the end 
thereof the following new sections: 
u 
ANTmiSCRIMINATION 
"SEC. 1207. Institutions of higher education receiving Federal finan- 20 USC 1145b. 
cial assistance may not use sucn financial assistance whether directly 
or indirectly to undertake any study or project or fulfill the terms of 
any contract containing an express or implied provision that any per-
son or persons of a particular race, religion, sex, or national origin be 
barred from performing such study, project, or contract, except no 
institution shall be barred from conducting objective studies or proj-
ects concerning the nature, effects, or prevention of discrimination, or 
have its curriculum restricted on the subject of discrimination, against 
any such person.". 
FUNDING REQUIREMENT 
^ *' 
^ 
SEC. 183. Title X I I of the Act is amended by adding at the end 
thereof (after the section added by section 182) the following new 
section: 
* ; >'^ -. 
"FUNDING REQUIREMENT 
"SEC. 1208. (a) Except as provided in subsection (b)— 
"(1) if the sum of the appropriations available for carryiiij 
out subparts 1 and 2 of part A, and parts C and E, of title I" 
in fiscal year 1978 equals or exceeds an amount equal to the greater 
of— 
"(A) $2,800,000,000; or 
"(B) the sum of the appropriations available for carrying 
out subparts 1 and 2 of part A, and parts C and E, of title IV 
in fiscal year 1977, 
no payuients, awards, or grants may be made from the portion of 
the funds appropriated therefor in excess of such amount unless 
the sum of the appropriations available for carrying out title I, 
part C of title VII, and title X equals or exceeds 50 per centum 
of such amount; and 
"(2) if the sum of the appropriations available for carrying 
out subparts 1 and 2 of part A, and parts C and E, of title IV in 
fiscal year 1979 equals or exceeds an amount equal to the greater 
of— 
"rA) $3,100,000,000; or 
"(B) the sum of the appropriations available for carrying 
out subparts 1 and 2 of part A, and parts C and E, of title IV 
in fiscal year 1978, 
20 USC 1145c. 
20 USC 1070a, 
1070b; 
42 USC 2751; 
20 USC 1087aa. 
20 USC 1001, 
1132c, 1135. 
90 STAT. 2168 
PUBLIC LAW 94-482—OCT. 12, 1976 
no payments, awards, or grants may be made from the portion 
of the funds appropriated therefor in excess of such amount 
unless the sum of the appropriations available for carrying out 
20 use 1001, 
title I, part C of title VII, and title X equals or exceeds 50 per 
1132c, 1135. 
centum of such amount. 
"(b) The provisions of subsection (a) shall not be effective for any 
fiscal year in which the sum of the appropriations available for carry-
ing out title I, part C of title VII, and title X equals or exceeds 
$215,000,000. 
20 use 1226a. 
"(c) The provisions of section 414 of the General Education Pro-
vision Act shall not apply to the provisions of this section.". 
TITLE II—VOCATIONAL EDUCATION 
EXTENSION" 
OF CERTAIN VOCATIONAL EDUCATION PROGRAMS 
SEC. 201. (a) Section 102(a) of the Vocational Education Act of 
20 use 1242. 
1963 is amended by striking out the first sentence and inserting in lieu 
thereof: "There are authorized to be appropriated $500,000,000 for the 
fiscal year ending September 30,1977, for the purposes of carrying out 
parts B and C of this title.". 
(b) Section 102(b) of such Act is amended by striking out the first 
sentence and inserting in lieu thereof the following: "There are also 
authorized to be appropriated $30,000,000 for each fiscal year ending 
20 use 1262. 
prior to October 1, 1977 for the purpose of section 122(a) (4) (A).". 
(c) The first sentence of section 102 (c) of the Vocational Education 
Act of 1963 is amended by inserting immediately after "1975," the 
following: "and $40,000,000 for the fiscal year ending September 30, 
1977,". 
20 use 1243. 
(d) Section 103(d) (2) is amended by striking out the first sentence 
and inserting in lieu thereof the following: "The allotment ratios shall 
be promulgated by the Commissioner for each fiscal year between 
October 1 and December 31 of the preceding fiscal year.". 
20 use 1244. 
(e) Section 104(a) (4) of such Act is amended by striking out "five" 
and inserting in lieu thereof "seven". 
(f) Section 104(a)(5) of such Act is amended by striking out 
"1976" and inserting in lieu thereof "1977". 
20 use 1302. 
(g) Section 142(a) of such Act is amended by striking out "and" 
after "1970,", by striking out "five" and inserting in lieu thereof "six", 
and by inserting immediately after "succeeding fiscal years" the fol-
lowing: ", and $20,000,000 for the fiscal year ending September 30, 
1977". 
20 use 1321. 
(h) Section 151 (b) of such Act is amended by striking out "July 1, 
1975" and inserting in lieu thereof "October 1, 1976". 
20 use 1322. 
(i) Section 152(a)(1) of such Act is amended by striking out 
"July 1,1975," and inserting in lieu thereof "October 1,1976". 
20 use 1323. 
(j) Section 153(d) (2) of such Act is amended by striking out that 
part thereof which follows "not exceed $5,000,000" and inserting in 
lieu thereof the following: "for fiscal year 1976.". 
20 use 1341. 
(k) The first sentence of section 161(a) (1) of such Act is amended 
by striking out "and" after "$35,000,000", by striking out "July 1, 
1975" and inserting in lieu thereof "October 1,1976", and by inserting 
immediately after "$50,000,000," the following: "and for the fiscal 
year ending September 30,1977, $45,000,000,". 
(1) The first sentence of section 161(c) of such Act is amended by 
striking out "five" and inserting in lieu thereof "seven". 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2169 
(m) Section 172(a) of such Act is amended by striking out "and" 
20 U
S
C 1352. 
after "$50,000,000,", by striking out "July 1, 1975" and inserting in 
lieu thereof "October 1, 1976", and by inserting immediately after 
"$75,000,000," the following: "and for the fiscal year ending Septem-
ber 30,1977, $25,000,000,". 
(n) Section 181(a) of such Act is amended by striking out "July 1, 20 USC 1371. 
1975," and inserting in lieu thereof "October 1, 1976, and $15,000,000 
for the fiscal year ending September 30, 1977, for". 
(o) Section 189(b) of such Act is amended by striking out "and" 20 USC 1391. 
after "1969,", by striking out "July 1, 1975," and inserting in lieu 
thereof "October 1, 1976, and $5,000,000 for the fiscal year ending 
September 30,1977,". 
(p) Section 193 of such Act is amended by striking out "for the 20 USC 1393b. 
fiscal year ending June 30, 1975" and inserting in lieu thereof "for 
each of the fiscal years ending prior to October 1,1976, and $10,000,000 
for the fiscal year ending September 30, 1977,". 
(q) Part F of title V of the Higher Education Act of 1965 is 
amended by adding at the end thereof a new section to read as follows: 
a 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 555. There are authorized to be appropriated for the purposes 20 USC 
of carrying out this part $25,000,000 for each of the fiscal years ending 1119c-4. 
prior to October 1,1977.". 
REVISION o r THE VOCATIONAL EDUCATION ACT OF 1963 
SEC. 202. (a) The Vocational Education Act of 1963 is amended to 
read as follows: 
"TITLE I—VOCATIONAL EDUCATION 
"PART A—STATE VOCATIONAL EDUCATION PROGRAMS 
"DECLARATION OF PURPOSE 
"SEC. 101. It is the purpose of this part to assist States in improving 20 USC 2301. 
planning in the use of all resources available to them for vocational 
education and manpower training by involving a wide range of agen-
cies and individuals concerned with education and training within the 
State in the development of the vocational education plans. It is also 
the purpose of this part to authorize Federal grants to States to assist 
them— 
"(1) to extend, improve, and, where necessary, maintain exist-
ing programs of vocational education, 
"(2) to develop new programs of vocational education, 
" (3) to develop and carry out such programs of vocational edu-
cation within each State so as to overcome sex discrimination and 
sex stereotyping in vocational education programs (including pro-
grams of homemaking), and thereby furnish equal educational 
opportunities in vocational education to persons of both sexes, and 
"(4) to provide part-time employment for youths who need 
the earnings from such employment to continue their vocational 
training on a full-time basis, 
so that persons of all ages in all communities of the State, those in high 
school, those who have completed or discontinued their formal educa-
tion and are preparing to enter the labor market, those who have 
already entered the labor market, but need to upgrade their skills or 
90 STAT. 2170 
PUBLIC LAW 94-482—OCT. 12, 1976 
learn new ones, those with special educational handicaps, and those in 
postsecondary schools, will have ready access to vocational training 
or retraining which is of high quality, which is realistic in the light of 
actual or anticipated opportunities for gainful employment, and which 
is suited to their needs, interests, and ability to benefit from such 
training. 
"Subpart 1—General Provisions 
u 
AUTHORIZATION OF APPROPRIATIONS 
20 use 2302. 
"SEC. 102. (a) There are authorized to be appropriated $880,000,000 
for fiscal year 1978, $1,030,000,000 for fiscal year 1979, $1,180,000,000 
for fiscal year 1980, $1,325,000 for fiscal year 1981, and $1,485,000 for 
fiscal year 1982, for the purpose of carrying out subparts 2 and 3 of 
this part. 
"(b) There are also authorized to be appropriated $35,000,000 for 
fiscal year 1978, $40,000,000 for fiscal year 1979, $45,000,000 for fiscal 
year 1980, $50,000,000 for fiscal year 1981, and $50,000,000 for fiscal 
year 1982, for the purpose of carrying out subpart 4 of this part. 
"(c) There are also authorized to be appropriated $55,000,000 for 
fiscal year 1978, $65,000,000 for fiscal year 1979, $75,000,000 for fiscal 
year 1980, $80,000,000 for fiscal year 1981, and $80,000,000 for fiscal 
year 1982 for the purpose of carrying out subpart 5 of this part. 
"(d) There are also authorized to be appropriated $25,000,000 
for fiscal year 1978 and for each fiscal year ending prior to October 1, 
1982, for the purpose of assisting States in— 
"(1) preparing the five-year plans required under section 107; 
"(2) preparing the annual program plans and accountability 
reports, including the collection of necessary data, required to be 
submitted under section 108; 
"(3) conducting the evaluations required by section 112; and 
"(4) State administration of vocational education programs 
assisted under this act. 
u 
ALLOTMENTS AMONG STATES 
20 use 2303. 
"SEC. 103. (a) (1) (A) Subject to the provisions of subsection (d) of 
this section, from the sums appropriated pursuant to section 102(a), 
the Commissioner shall first reserve an amount equal to 5 per centum 
of such sums. From the amount so reserved, the Commissioner shall 
transfer an amount, not to be less than $3,000,000 but not to exceed 
$5,000,000 in any fiscal year, to the National Occupational Information 
Coordinating Committee established pursuant to section 161 and the 
remainder of the amount so reserved shall be used by the Commissioner 
for programs of national significance under subpart 2 of part B. 
"(B) (i) From the remainder of the sums appropriated pursuant to 
section 102(a), the Commissioner is authorized to reserve for purposes 
of this subparagraph an amount approximately equivalent to the same 
percentage of that appropriation as the population aged fifteen to 
twenty-four, inclusive, which is eligible to receive educational bene-
fits as Indians from the Bureau of Indian Affairs is to the total popu-
lation of all the States aged fifteen to twenty-four, inclusive, except 
that such amount shall not exceed 1 per centum of such remaining 
appropriation. 
"Act of April 16, 
"(ii) For purposes of this subparagraph, the term 'Act of April 16, 
1934." 
1934' means the Act entitled 'An Act authorizing the Secretary of the 
Interior to arrange with States or territories for the education, medi-
cal attention, relief of distress, and social welfare of Indians, and 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2171 
for other purposes', enacted April 16, 1934 (48 Stat. 596; 25 U.S.C. 
452-457). 
" (iii) The Commissioner is directed, upon the request of any Indian 
tribe which has contracted with the Secretary of the Interior for the 
administration of programs under the Indian Self-Determination Act 25 USC 450f 
or under the Act of Ajpril 16,1934, to enter into a contract or contracts "ot^-
with any tribal organization of any such Indian tribe to plan, conduct, 
and administer programs, or portions thereof, which are authorized 
by and consistent with the purposes of this Act, except that such con-
tracts shall be subject to the terms and conditions of section 102 of the 
Indian Self-Determination Act and shall be conducted in accordance 
with the provisions of sections 4, 5, and 6 of the Act of April 16,1934, 25 USC 
which are relevant to the programs administered under this sentence. 455-457. 
From any remaining funds reserved pursuant to division (i) of this 
subparagraph (B), the Commissioner is authorized to enter into an 
agreement with the Commissioner of the Bureau of Indian Affairs for 
the operation of vocational education programs authorized by this 
Act in institutions serving Indians described in division (i) of this 
subparagraph (B), and the Secretary of the Interior is authorized to 
receive these funds for that purpose. For the purposes of this Act, 
the Bureau of Indian Affairs shall be deemed to be a State board; and 
all the provisions of this Act shall be applicable to the Bureau as if it 
were a State board. 
"(2) From the remainder of the sums appropriated pursuant to 
section 102(a) and from all of the sums appropriated pursuant to 
sections 102 (b)j (c), and (d), the Commissioner shall allot to each 
State for each fiscal year— 
"(A) an amount which bears the same ratio to 50 per centum 
of the sums being allotted as the product of the population aged 
fifteen to nineteen, inclusive, in the State in the fiscal year pre-
ceding the fiscal year for which the determination is made and 
• 
the State's allotment ratio bears to the sum of the corresponding 
products for all the States; 
"(B) an amount which bears the same ratio to 20 per centum 
of the sums being allotted as the product of the population aged 
twenty to twenty-four, inclusive, in the State in the fiscal year 
preceding the fiscal year for which the determination is made and 
the State's allotment ratio bears to the sum of the corresponding 
products for all the States; 
"(C) an amount which bears the same ratio to 15 per centum 
of the sums being allotted as the product of the population aged 
twenty-five to sixty-five, inclusive, in the State in the fiscal year 
preceding the fiscal year for which the determination is made and 
the State's allotment ratio bears to the sum of the corresponding 
products for all the States; and 
"(D) an amount which bears the same ratio to 15 per centum 
of the sums being allotted as the amounts allotted to the State 
under subparagraphs (A), (B), and (C) for such years bears to 
the sum of the amounts allotted to all the States under subpara-
graphs (A), (B), and (C) for such year. 
"(b)(1) The amount of any State's allotment under subsection (a) 
for any fiscal year which is less than $200,000 shall be increased to that 
amount, the total of the increases thereby required being derived by 
proportionately reducing the allotments to each of the remaining 
States under such subsection, but with such adjustments as may be 
)iecessary to prevent the allotment of any of such remaining States 
V 
from being thereby reduced to less than that amount. 
90 STAT. 2172 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(2) The amount of any State's allotment under subsection (a) 
for any fiscal year which the Commissioner determines will not be 
required for such fiscal year for carrying out the program for which 
such amount has been allotted shall be available, from time to time, 
for reallotment, on such dates during such year as the Commissioner 
shall fix, on the basis of criteria established by regulation, among 
other States, except that funds appropriated under section 102(b) 
may only be reallotted for the use set forth in section 140. Any 
amount reallotted to a State under this subsection for any fiscal year 
shall remain available for obligation during the next succeeding fiscal 
year and shall be deemed to be part of its allotment for the year in 
which it is obligated. 
"(c)(1) The allotment ratio for any State shall be 1.00 less the 
product of— 
"(A) 0.50; and 
"(B) the quotient obtained by dividing the per capita income 
for the State by the per capita income for all the States (exclu-
sive of Puerto Rico, Guam, American Samoa, the Virgin Islands, 
and the Trust Territory of the Pacific Islands), except that (i) 
the allotment ratio in no case shall be more than 0.60 or less 
than 0.40, and (ii) the allotment ratio for Puerto Rico, Guam, 
American Samoa, the Virgin Islands, and the Trust Territory 
of the Pacific Islands shall be 0.60. 
"(2) The allotment ratios shall be promulgated by the Commis-
sioner for each fiscal year between October 1 and December 31 of 
the fiscal year preceding the fiscal year for which the determination 
is made. Allotment ratios shall be computed on the basis of the aver-
age of the appropriate per capita incomes for the three most recent 
consecutive fiscal years for which satisfactory data are available. 
"Per capita 
"(3) The term 'per capita income' means, with respect to a fiscal 
income." 
year, the total personal income in the calendar year ending in such 
year, divided by the population of the area concerned in such year. 
"(4) For the purposes of this section, population shall be deter-
mined by the Commissioner on the basis of the latest estimates avail-
able to him. 
"(d) The amount of any State's allotment under this section from 
appropriations provided under section 102, for any fiscal year shall 
not be less than the total amount of payments made to the State under 
allotments determined under this Act for the fiscal year ending 
June 30,1976. 
"(e) From the sums allotted to a State under this section from 
appropriations made under section 102(a), 80 per centum of such sums 
shall be available to each State for the purpose of carrying out sub-
part 2 of this part and 20 per centum shall be available for the pur-
pose of carrying out subpart 3 of this part. 
"STATE ADMINISTRATION 
20 use 2304. 
"SEC. 104. (a)(1) Any State desiring to participate in the programs 
authorized by this Act shall, consistent with State law, designate 
or establish a State board or agency (hereinafter in this Act referred 
to as the 'State board') which shall be the sole State agency responsible 
for the administration, or for the supervision of the administration, 
of such programs. The responsibilities of the State board shall 
include— 
"(A) the coordination of the development of policy with 
respect to such programs; 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2173 
"(B) the coordination of the development, and the actual sub-
mission to the Commissioner, of the five-year State plan required 
by section 107 and of the annual program plan and accountaDility 
report required by section 108; and 
"(C) the consultation with the State advisory council on voca-
tional education and other appropriate State agencies, councils, 
and individuals involved in the planning and reporting as 
required by sections 107 and 108. 
Except with respect to those functions set forth in the preceding sen-
tence, the State board may delegate any of its other responsibilities 
involving administration, operation, or supervision, in whole or in 
part, to one or more appropriate State agencies. 
" (2) Each State board shall certify to the Commissioner, as part of 
its annual program plan and accountability report submitted pursuant 
to section 108, any delegation of its responsibilities for administration, 
operation, or supervision of vocational education programs under this 
Act to other appropriate State agencies, setting forth the specific 
responsibility delegated and the specific agency involved. 
"(3) Each State board shall also certify to the Commissioner, as 
part of its five-year plan and as part of its annual program plan and 
accountability report, that each of the agencies, councils, and individ-
uals required to be involved in formulating the five-year plan and the 
annual plan and report have been afforded the opportunity to be 
involved in accordance with the provisions of this Act. 
"(b) (1) Any State desiring to participate in the programs author-
ized by this Act shall also assign such full-time personnel as may be 
necessary to assist the State board in fulfilling the purposes of this 
Act by— 
"(A) taking such action as may be necessary to create aware-
ness of programs and activities in vocational education that are 
designed to reduce sex stereotyping in all vocational education 
programs; 
"(B) gathering, analyzing, and disseminating data on the status 
of men and women, students and employees in the vocational edu-
cation programs of that State; 
"(C) developing and supporting actions to correct any prob-
lems brought to the attention of such personnel through activities 
carried out under clause (B) of this sentence; 
" (D) reviewing the distribution of grants by the State board to 
assure that the interests and needs of women are addressed in the 
projects assisted under this Act; 
"(E) reviewing all vocational education programs in the State 
for sex bias; 
"(F) monitoring the implementation of laws prohibiting sex 
discrimination in all hiring, firing, and promotion procedures 
within the State relating to vocational education; 
"(G) reviewing and submitting recommendations with respect 
to the overcoming of sex stereotyping and sex bias in vocational 
education programs for the annual program plan and report; 
"(H) assisting local educational agencies and other interested 
parties in the State in improving vocational education opportuni-
ties for women; and 
"(I) making readily available to the State board, the State and 
National Advisory Councils on Vocational Education, the State 
Commission on the Status of Women, the Commissioner and the 
general public, information developed pursuant to this subsection. 
" (2) From the funds appropriated to carry out subpart 2, each State 
shall reserve $50,000 in each fiscal year to carry out this subsection. 
89-194 O—78—pt. 2 
45 
90 STAT. 2174 
PUBLIC LAW 94-4«2—OCT. 12, 1976 
"State." 
"(3) For the purpose of this subsection, the term 'State' means any 
one of the fifty States and the District of Cohimbia. 
"STATE AND LOCAL ADVISORY COUNCILS 
20 use 2305. 
"SEC. 105. (a) Any State which desires to participate in programs 
under this Act for any fiscal year shall establish a State advisory 
council, which shall be appointed by the Governor or, in the case of 
States in which the members of the State board of education are 
elected (including election by the State legislature), by such board. 
Members of each State advisory council shall be appointed for terms 
of three years except that (1) in the case of the members appointed 
for fiscal year 1978, one-third of the membership shall be appointed 
for terms of one year each and one-third shall be appointed for terms 
of two years each, and (2) appointments to fill vacancies shall be for 
such terms as remain unexpired. Each State advisory council shall 
have as a majority of its members persons who are not educators or 
administrators in the field of education and shall include as membeis 
one or more individuals who— 
"(1) represent, and aie familiar with, the vocational needs and 
problems of management in the State; 
"(2) represent, and are familiar with, the vocational needs and 
problems of labor in the State; 
"(3) represent, and are familiar with, the vocational needs and 
problems of agriculture in the State; 
"(4) represent State industrial and economic development 
agencies; 
"(5) represent community and junior colleges; 
"(6) represent other institutions of higher education, area voca-
tional schools, technical institutes, and postsecondary agencies 
or institutions which provide programs of vocational or technical 
education and training; 
"(7) have special knowledge, experience, or qualifications with 
respect to vocational education but are not involved in the admin-
istration of State or local vocational education programs; 
"(8) represent, and are familiar with, public programs of v(x;a-
tional education in comprehensive secondary schools; 
" (9) represent, and are familiar with, nonprofit private schools; 
"(10) represent, and are familiar with, vocational guidance and 
counseling services; 
" (11) represent State correctional institutions; 
"(12) are vocational education teachers presently teaching in 
local educational agencies; 
"(13) are currently serving as superintendents or other admin-
istrators of local educational agencies; 
" (14) are currently serving on local school boards; 
"(15) represent the State Manpower Services Council estab-
lished pursuant to section 107 of the Comprehensive Employment 
29 use 817. 
and Training Act of 1973; 
"(16) represent school systems with large concentrations of 
persons who have special academic, social, economic, and cultural 
needs and of persons who have limited English-speaking ability; 
"(17) are women with backgrounds and experiences in employ-
ment and training programs, and who are knowledgeable with 
respect to the special experiences and problems of sex discrimina-
tion in job training and employment and of sex stereotyping in 
vocational education, including women who are members of minor-
ity groups and who have, in addition to such backgrounds and 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2175 
experiences, special knowledge of the problems of discrimination 
in job training and employment against women who are members 
of such groups; 
"(18) have special knowledge, experience, or c^ualifications with 
respect to the special educational needs of physically or mentally 
handicapped persons; 
"(19) represent the general public, including a person or per-
sons representing and knowledgeable about the poor and disad-
vantaged; and 
"(20) are vocational education students who are not qualified 
for membership under any of the preceding clauses of this 
paragraph. 
Members of the State advisory council may not represent more than 
one of the above-specified categories. In appointing the State advisory 
council the Governor or the State board of education, as the case may 
be, shall insure that there is appropriate representation of both sexes, 
racial and ethnic minorities, and the various geographic regions of the 
State. 
"(b) Not less than ninety days prior to the beginning of any fiscal 
year in which a State desires to receive a grant under this Act, the 
State shall certify the establishment of, and membership of, its State 
advisory council to the Commissioner. 
" (c) Each State advisory council shall meet within thirty days after 
certification has been accepted by the Commissioner and shall select 
from among its membership a Chairman. The time, place, and manner 
of meeting, as well as council operating procedures and staffing, shall 
be as provided by the rules of the State advisory council, except that 
such rules must provide for not less than one public meeting each year 
at which the public is given an opportunity to express views concern-
ing the vocational education program of the State. 
"(d) (1) Each State advisory council shall advise the State board 
in the development of the five-year State plan submitted under sec-
tion 107 and the annual program plan and accountability report sub-
mitted under section 108 and shall advise the State board on policy 
matters arising out of the administration of programs under such 
plans and reports. 
" (2) Each state advisory council shall also evaluate vocational edu-
cation programs, services, and activities assisted under this Act, and 
publish and distribute the results thereof. 
"(3) Each State advisory council shall prepare and submit to the Evaluation 
Commissioner and to the National Advisory Council created under report, 
section 162, through the State board, an annual evaluation report, Post, p. 2199. 
accompanied by such additional comments of the State board as the 
State board deems appropriate, which (A) evaluates the effectiveness 
of vocational education programs, services, and activities carried out 
in the year under review in meeting the program goals set forth 
in the five-year State plan submitted under section 107 and the 
annual program plan and accountability report submitted under sec-
tion 108, including a consideration of the program evaluation reports 
developed by the State pursuant to section 112 and of the analysis of 
the distribution of Federal funds within the State submitted by the 
State board pursuant to section 108, and (B) recommends such 
changes in such programs, services, and activities as may be deemed 
necessary. 
"(4) (A) Each State advisory council shall identify, after consulta-
tion with the State Manpower Services Council, the vocational edu-
cation and employment and training needs of the State and assess 
the extent to which vocational education, employment training, voca-
90 STAT. 2176 
PUBLIC LAW 94-482—OCT. 12, 1976 
29 use 817. 
Appropriation 
auUiorization. 
Local advisory 
councils. 
tional rehabilitation, and other programs assisted under this and 
related Acts represent a consistent, integrated, and coordinated 
approach to meeting such needs; and (B) comment, at least once 
annually, on the reports of the State Manpower Services Council, 
which comments shall be included in the annual report submitted by 
the State advisory council pursuant to this section and in the annual 
report submitted by the State council pursuant to section 107 of the 
Comprehensive Employment and Training Act of 1973. 
"(e) Each State advisory council is authorized to obtain the services 
of such professional, technical, and clerical personnel as may be neces-
sary to enable it to carry out its functions under this Act and to con-
tract for such services as may be necessary to carry out its evaluation 
functions, independent of programmatic and administrative control by 
other State boards, agencies, and individuals. 
"(f) (1) There are herebv authorized to be appropriated $8,000,000 
for fiscal year 1978, $8,500,000 for fiscal year 1979, $9,000,000 for fiscal 
year 1980, $10,000,000 for fiscal year 1981, and $8,000,000 for fiscal year 
1982, for the purpose of making grants to State advisory councils to 
carry out the functions specified in this section. From the sums appro-
priated pursuant to this subsection, the Commissioner shall, subject to 
the provisions of the following sentence, make grants to State advisory 
councils to carry out the functions specified in this section, and shall 
pay to each State advisory council an amount equal to the reasonable 
amounts expended by it in carrying out its functions under this Act in 
such fiscal year, except that no State advisory council shall receive an 
amount to exceed $200,000 or an amoimt less than $75,000. In the case 
of Guam, American Samoa, and the Trust Territory of the Pacific 
Islands, the Commissioner may pay the State advisory council in each 
such jurisdiction an amount less than the minimum specified in the 
preceding sentence if he determines that the council can perform its 
functions with a lesser amount. 
"(2) The expenditure of these funds is to be determined solely by 
the State advisory council for carrying out its functions under this 
Act, and may not be diverted or reprogramed for any other purpose 
by any State board, agency or individual. Each council shall designate 
an appropriate State agency or other public agency, eligible to receive 
funds under this Act, to act as its fiscal agent for purposes of disburse-
ment, accounting, and auditing. 
" (g) (1) Each eligible recipient receiving assistance under this Act to 
operate vocational education programs shall establish a local advisory 
council to provide such agency with advice on current job needs and 
on the relevancy of courses being offered by such agency in meeting 
such needs. Such local advisory councils shall be composed of members 
of the general public, especially of representatives of business, indus-
try, and labor; and such local advisory councils may be established for 
program areas, schools, communities, or regions, whichever the recip-
ient determines best to meet the needs of that recipient. 
"(2) Each State board shall notify eligible recipients within the 
State of the responsibilities of such recipients under the pi'ovisions of 
paragraph (1) ; and each State advisory council shall make available 
to such recipients and the local advisory councils of such recipients 
such technical assistance as such recipients may request to establish 
and operate such councils. 
a, 
GENERAL APPLICATION 
20 use 2306. 
"SEC. 106. (a) Any State desiring to receive the amount for which it 
is eligible for any fiscal year pursuant to this Act shall, through its 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2177 
State board, submit to, and maintain on file with, the Commissioner 
a general application providing assurances— 
"(1) that the State will provide for such methods of admin-
istration as are necessary for the proper and efficient administra-
tion of the Act; 
"(2) that the State board will cooperate with the State advi-
sory council on vocational education in carrying out its duties 
pursuant to section 105 and with the agencies, councils, and indi-
viduals specified in sections 107 and 108 to be involved in the 
formulation of the five-year State plan and of the annual pro-
gram plans and accountability reports; 
"(3) that the State will comply with any requests of the Com-
missioner for making such reports as the Commissioner may rea-
sonably require to carry out his functions under this Act; 
" (4) that funds will be distributed to eligible recipients on the 
basis of annual applications which— 
"(A) have been developed in consultation (i) with repre-
sentatives of the educational and training resources available 
in the area to be served by the applicant and (ii) with the 
local advisory council required to be established by this Act 
to assist such recipients, 
"(B) (i) describe the vocational education needs of po-
tential students in the area or community served by the appli-
cant and indicate how, and to what extent, the program 
proposed in the application will meet such needs, and (ii) 
describe how the findings of anj'^ evaluations of programs 
operated by such applicant during previous years, including 
those required by this Act, have been used to develop the 
program proposed in the application, 
"(C) describe how the activities proposed in the applica-
tion relate to manpower programs conducted in the area by 
a prime sponsor established under the Comprehensive 
Employment and Training Act of 1973, if any, to assure a 29 U
S
C 801 note, 
coordinated approach to meeting the vocational education and 
training needs of the area or community, and 
"(D) describe the relationship between vocational educa-
tion programs proposed to be conducted with funds under 
this Act and other programs in the area or community which 
are supported by State and local funds; 
and that any eligible recipient dissatisfied with final action with 
respect to any application for funds under this Act shall be given 
reasonable notice and opportunity for a hearing; 
"(5) (A) that the State shall, in considering the approval of 
such applications, give priority to those applicants which— 
"(i) are located in economically depressed areas and areas 
with high rates of unemployment, and are unable to provide 
the resources necessary to meet the vocational education needs 
of those areas without Federal assistance, and 
"(ii) propose programs which are new to the area to be 
served and which are designed to meet new and emerging 
manpower needs and job opportunities in the area and, where 
relevant, in the State and the Nation; and 
"(B) that the State shall, in determining the amount of funds 
available under this Act which shall be made available to those 
applicants approved for funding, base such distribution on eco-
nomic, social and demographic factors relating to the need for 
90 STAT. 2178 
PUBLIC LAW 94-482—OCT. 12, 1976 
vocational education among the various populations and the vari-
ous areas of the State, except that— 
"(i) the State will use as the two most important factors in 
determining this distribution (I) in the case of local educa-
tional agencies, the relative financial ability of such agencies 
to provide the resources necessary to meet the need for voca-
tional education in the areas they service and the relative 
number or concentration of low-income families or individ-
uals within such agencies, and (II) in the case of other eligi-
ble recipients, the relative financial ability of such recipients 
to provide the resources necessary to initiate or maintain 
vocational education programs to meet the needs of their stu-
dents and the relative number or concentration of students 
whom they serve whose education imposes higher than aver-
age costs, such as handicapped students, students from low-
income families, and students from families in which English 
is not the dominant language; and 
"(ii) the State will not allocate such funds among eligible 
recipients within the State on the basis of per capita enroll-
ment or through matching of local expenditures on a uniform 
percentage basis, or deny funds to any recipient which is 
making a reasonable tax effort solely because such recipient 
is unable to pay the non-Federal share of the cost of new 
programs; 
"(6) that Federal funds made available under this Act will be 
so used as to supplement, and to the extent practicable, increase 
the amount of State and local funds that would in the absence of 
such Federal funds be made available for the uses specified in 
the Act, and in no case supplant such State or local funds; 
"(7) that the State will make provision 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 (including such funds paid by the State to eligible 
recipients under this Act); 
"(8) that funds received under this Act will not be used for 
any program of vocational education (except personnel training 
programs under section 135, renovation programs under subpart 
4 of part B, and homemaking programs under subpart 5 of this 
part which cannot be demonstrated to prepare 
students 
tor employment, be necessary to prepare individuals for successful 
completion of such a program, or be of significant assistance to 
individuals enrolled in making an informed and meaningful 
occupational choice as an integral part of a program of orienta-
tion and preparation; 
"(9) that the State has instituted policies and procedures to 
insure that copies of the State plan and annual program plan and 
accountability report and all statements of general policies, rules, 
regulations, and procedures issued by the State board and by any 
State agencies to which any responsibility is delegated by the 
State board concerning the administration of such plan and report 
will be made reasonably available to the public; and 
"(10) that the funds used for purposes of section 110(a) are 
consistent with the State plan submitted pursuant to section 613 
(a) of the Education of tne Handicapped Act. 
"(b) Such general application shall be considered to be the general 
application required to be submitted by the State for funds received 
20 use 1241 
under the Vocational Education Act of 1963 under the provisions of 
^°^- 
subsection (b) of section 434 of the General Education Provisions Act. 
20 use 1233c. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2179 
a 
FIVE-YEAR STATE PLANS 
"SEC. 107. (a) (1) Any State desiring to receive funds under this 20 USC 2307. 
Act shall submit to the Commissioner, during fiscal year 1977 and 
during each fifth fiscal year occurring thereafter, a State plan for 
vocational education for the five fiscal years succeeding each such fiscal 
year. In formulating this plan, the State board shall involve the active 
participation of— 
" (A) a representative of the State agency having responsibil-
ity for secondary vocational education programs, designated by 
that agency; 
"(B) a representative of the State agency, if such separate 
agency exists, having responsibility for postsecondary vocational 
education programs, designated by that agency; 
"(C) a representative of the State agency, if such separate 
agency exists, having responsibility for community and junior 
colleges, designated hj that agency; 
"(D) a representative of the State agency, if such separate 
agency exists, having responsibility for institutions of higher 
education in the State, designated by that agency; 
"(E) a representative of a local school board or committee, as 
determined by State law; 
"(F) a representative of vocational education teachers, as 
determined by State law; 
"(G) a representative of local school administrators, as deter-
mined by State law; 
"(H) a representative of the State Manpower Services Coun-
cil appointed pursuant to section 107(a) (2) (A) (i) of the Com-
prehensive Employment and Training Act of 1973, designated by 29 USC 817. 
that council; 
"(I) a representative of the State agency or commission 
responsible for comprehensive planning in postsecondary educa-
tion, which planning reflects programs offered by public, private 
non-profit and proprietary institutions, and includes occupational 
programs at a less-than-baccalaureate degree level, if such sep-
arate agency or commission exists, designated by that agency or 
commission; and 
"(J) a representative of the State advisory council on voca-
tional education, designated by that council. 
This participation shall include at least four meetings during the 
planning year between representatives of the State board and rep-
resentatives of all of these agencies, councils, and individuals, meet-
ing as a group. The first of these meetings shall be before the plan is 
developed; the second meeting shall be to consider the first draft of the 
plan; the third meeting shall be to consider the draft of the plan 
rewritten to reflect the results of the second meeting; and the fourth 
meeting shall be to approve the final plan. If these agencies, councils, 
and individuals, and the State board are not able to agree upon the 
provisions of the State plan, the State board shall have the responsibil-
ity for reaching a final decision on those provisions; but the State 
board shall include in the plan (a) the recommendations rejected by 
the board, (b) the agency, council, or individual making each such 
recommendation, and (c) the reasons of the State board for rejecting 
these recommendations. Any agency or council described above which 
is dissatisfied with any final decision of the State board may appeal 
the board's decision to the Commissioner. In such a case the Commis-
sioner shall afford such agency or council and the State board reason-
able notice and opportunity for a hearing and shall determine whether 
90 STAT. 2180 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 use 1233c. 
Submittal to 
G>minis9ioner. 
the State board's decision is supported by substantial evidence, as 
shown in the State plan, and will best carry out the purposes of the 
Act. Any agency or State board dissatisfied with a final action of the 
Commissioner under this subsection may appeal to the United States 
Court of Appeals for the circuit in which the State is located in 
accordance with the procedure specified in section 434(d) (2) of the 
Greneral Education Provisions Act. 
"(2) The State board shall, during the years in which it formulates 
any five-year plan required under this section, conduct a series of 
public hearings, after giving sufficient public notice, throughout all 
regions of the State in order to permit all segments of the population 
to give their views on the goals which ought to be adopted in the State 
plan, including the courses to be offered, the allocations of responsi-
bility for these courses among the various levels of education and 
among the various institutions of the States, and the allocations of 
local, State, and Federal resources to meet those goals. These views 
shall be included in the final State plan with a description of how such 
views are reflected in the plan; and if particular views are not 
reflected, then the plan shall set out the reasons for rejecting them. 
"(b) The five-year State plans shall be submitted to the Commis-
sioner by the July 1st preceding the beginning of the first fiscal year 
for which such plan is to take effect and shall— 
"(1) assess the current and future needs for job skills within the 
State and, where appropriate, within the pertinent region of the 
country, through consideration of the latest available data of 
present and projected employment, including the data available 
under section 161; 
"(2) set out explicitly the goals the State will seek to achieve 
by the end of the five-year period of the State plan in meeting 
the need for particular job skills identified through the assess-
ment undertaken in accordance with paragraph (1), including 
(A) a description of these goals in terms of.— 
"(i) the courses and other training opportunities to be 
offered to achieve those skills, 
"(ii) the projected enrollments of those courses and other 
training opportunities, 
"(iii) the allocations of responsibility for the offering of 
those courses and training opportunities among the various 
levels of education and among the various institutions of the 
State, and 
"(iv) the allocations of all local. State, and Federal finan-
cial resources available in the State among these courses and 
training opportunities, levels of education, and institutions 
within the State, 
and (B) the reasons for choosing these courses and training 
opportunities, enrollments, allocations of responsibilities, and allo-
cations of resources; 
"(3) (A) set out explicitly the planned uses of Federal, State, 
and local vocational education funds for each fiscal year of the 
State plan and show how these uses will enable the State to achieve 
these goals, including (i) a description of these uses of funds in 
terms of the elements listed in clauses (2) (A) (i) through (2) 
(A) (iv) above, and (ii) the reasons for choosing these particular 
uses, except that the State will continue to use approximately the 
same amount of its State grant under subpart 2 of this part for 
programs in secondary schools during fiscal years 1978 and 1979 
as it had used during fiscal years 1975 and 1976 unless the State is 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2181 
able to demonstrate in its five-year plan the need to shift funds 
from such use; 
"(B) (i) set out explicitly the uses which the State intends to 
make of the funds available to it under this Act, as those uses 
are set out in sections 120,130,140, and 150, and set out the reasons 
for choosing such uses; and (ii) set out explicitly the uses which 
the State intends to make of these funds to meet the special needs 
of handicapped and disadvantaged persons and persons who have 
limited English-speaking ability; 
"(4) (A) set forth policies aiid procedures which the State will 
follow so as to assure equal access to vocational education pro-
grams by both women and men including— 
"(i) a detailed description of such policies and procedures, 
"(ii) actions to be taken to overcome sex discrimination 
and sex stereotyping in all State and local vocational educa-
tion programs, and 
"(iii) incentives, to be provided to eligible recipients so 
that such recipients will— 
"(I) encourage the enrollment of both women and 
men in nontraditional courses of study, and 
"(II) develop model programs to reduce sex stereo-
typing in all occupations; and 
"(B) set forth a program to assess and meet the needs of per-
sons described in section 120(b) (1) (L) which shall provide for 
(i) special courses for such persons in learning how to seek 
employment, and (ii) placement services for such graduates of 
vocational education programs and courses; and 
"(5) set out criteria which have been developed for coordinat-
ing manpower training programs conducted by prime sponsors 
established under the Comprehensive Employment and Train-
ing Act of 1973 with vocational education programs assisted 29 USC 801 note, 
under this Act and for coordinating such vocational education 
programs with such manpower training programs. 
"ANNUAL PROGRAM PLANS AND ACCOUNTABILITY REPORTS 
"SEC. 108. (a) (1) Any State desiring to receive funds under this 20 USC 2308. 
Act shall submit to the Commissioner an annual program plan and 
accountability report for each of the fiscal years included in the five-
year State plan. In formulating this plan and report, the State board 
shall involve the active participation of the agencies, councils, and 
individuals who are required to be involved in formulating the five-
year State plan as described in section 107. This participation 5hall 
include at least three meetings during each fiscal year between repre-
sentatives of the State board and representatives of all of these agen-
cies, councils, and individuals, meeting as a group. The first of these 
meetings shall be before the plan and report is developed; the second 
meeting shall be to consider the draft of the plan and report; and the 
third meeting shall be to approve the final plan and report. If these 
agencies, councils, and individuals, and the State board are not able to 
agree upon the provisions of the plan and report, the State board shall 
have the same responsibility for reaching a final decision on those pro-
visions as it has for reaching a final decision on the five-year State plan 
under section 107; and the same requirements shall be applicable con-
cerning inclusion of rejected recommendations, appeal of the board's 
decision to the Commissioner, and judicial review as are applicable to 
the five-year State plan under section 107. 
90 STAT. 2182 
PUBLIC LAW 94.-4«2—OCT. 12, 1976 
Public hearing. 
«(2) The State board shall, during each fiscal year, conduct a pub-
lic hearing, after giving sufficient public notice, on the annual plan-
ning and accountability report in order to permit all segments of the 
population to give their views on the provisions of the plan and report. 
These views shall be included in the final plan and report with a 
description of how such views are reflected in the plan and report; and 
if particular views are not reflected, then the plan and report shall set 
out the reasons for rejecting them. 
^^P"'^.*^ 
"(b) The annual program plan and accountability report shall be 
Lommissioner. 
submitted to the Commissioner by the July 1st preceding the begin-
ning of the fiscal year for which the plan is to be effective. This plan 
and report shall contain: 
" (1) planning provisions which— 
"(A) set out any updating of the five-year State plan 
deemed necessary to reflect later or more accurate employ-
ment data or a different level of funding than was antici-
pated ; 
"(B) (i) set out explicitly how the State during that fiscal 
year will comply with the uses of Federal, State, and local 
funds proposed for that fiscal year in the five-year plan, in-
cluding a description of these uses in terms of the elements 
listed in clauses (2) (A) (i) through (2) (A) (iv) of section 
107, and describe how these uses of funds may differ from 
those proposed in the five-year plan and give the reasons for 
any such changes; 
"(ii) set out explicitly the uses which the State intends to 
make of the funds available to it under this Act for that 
fiscal year, as those uses are set out in sections 120, 130, 140, 
and 160, and describe how those uses may differ from the uses 
proposed in the five-year plan and give the reasons for any 
such changes, and set out explicitly the proposed distribution 
of such funds among eligible recipients, together with an 
analysis of the manner in which such distribution complies 
with the assurance given in the general application under 
section 106(a)(5) relating to the distribution of Federal 
funds;and 
"(C) show the results of the— 
"(i) coordination of programs funded under this Act 
with manpower training programs and of manpower 
training programs with programs funded under this 
Act; 
"(ii) compliance of the State plan with the provision 
contained in section 107(b)(4)(A) concerning provid-
ing equal access to programs by both men and women; 
and 
"(iii) participation of local advisory councils required 
to be established under section 105 (g); and 
"(2) reporting provisions which— 
"(A) show explicitly the extent to which the State during 
the fiscal year preceding the submission of the plan and re-
port has achieved the goals of the five-year plan and the 
degree to which the uses of Federal, State, and local funds 
proposed for that fiscal year in the plan have been complied 
with, including a description of these goals and uses in terms 
of the elements listed in clauses (2) (A) (i) through (2) (A) 
(iv) of section 107(b); 
"(B) show explicitly how funds available under this Act 
have been used during that fiscal year, including a descrip-
tion of the uses of these funds among the authorized uses of 
u 
PUBLIC LAW 94-4«2—OCT. 12, 1976 
90 STAT. 2183 
funds set out in sections 120, 130, 140, and 150, and including 
a description of the distribution of these funds among local 
educational agencies and other eligible recipients in conform-
ity with the requirements contained in section 106(a) (5), and 
give the results achieved with these funds; and 
"(C) contain a summary of the evaluations of programs 
required to be conducted by section 112 and a description of 
how the information from these evaluations has been, or is 
being, used by the State board to improve its programs. 
SUBMISSION OF PLANS: WITHHOLDING AND JUDICIAL REVIEW 
"SEC. 109. (a) (1) The Commissioner shall not approve a five-year 20 USC 2309. 
State plan submitted under section 107 until he has made specific find-
ings, in writing, as to the compliance of such plan with the provi-
sions of this Act and he is satisfied that adequate procedures are set 
forth to insure that the assurances of the general application sub-
mitted under section 106 and the provisions of the State plan will be 
carried out. 
"(2) The Commissioner shall not approve an annual program plan 
and accountability report submitted under section 108 until he has 
made specific findings, in writing, as to the compliance of such plan 
and report with the provisions of this Act, he is satisfied that adequate 
procedures are set forth to insure that the assurances of the general 
application submitted under section 107 are being carried out, and 
he is satisfied that the annual plan and report shows progress in 
achieving the goals set forth in the five-year State plan. 
" (3) (A) In carrying out the provisions of this subsection, the Com-
missioner shall provide for appropriate review of each State's five-
year plan and annual program plan and report by the various agencies 
administering programs within the Office of Education related to the 
vocational education programs being proposed under the State plan or 
the program plan and report. 
"(B) In carrying out the provisions of this subsection, the Com-
missioner shall not approve a State plan or annual program plan and 
repoit until he has received assurances that the personnel assigned to 
review programs within the State to assure equal access by both men 
and w^omen under the provisions of section 104(b) have been afforded 
the opportunity to review the plan or program plan and report. 
"(C) In carrying out the provisions of this subsection, the Com-
missioner shall not approve a State plan or annual program plan and 
report unless the State has complied in compiling this plan or pro-
gram plan and report with the nationally uniform definitions and 
information elements which have been developed pursuant to sec-
tion 161. 
"(b) (1) The Commissioner shall not finally disapprove any State 
plan or program plan and report submitted under this Act, or any 
modification thereof, without first affording the State board submit-
ting the plan or program plan and report reasonable notice and 
opportunity for a hearing. 
"(2) The Commissioner shall not disapprove any plan or program 
plan and report submitted under this Act solely on the basis of the dis-
tribution of State and local expenditures for vocational education. 
"(c) Whenever the Commissioner, after reasonable notice and 
opportunity for hearing to the State board, finds that— 
"(1) the State plan or program plan and report has been so 
changed that it no longer complies with the provisions of this Act, 
90 STAT. 2184 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(2) in the administration of the plan or program plan and 
report there is a failure to comply substantially with any such 
provision, 
the Commissioner shall notify such State board that no further pay-
ments will be made to the State under this Act (or, in his discretion, 
further payments to the State will be limited to programs under or 
portions of the State plan or program plan and report not affected by 
such failure) until he is satisfied that there will no longer be any fail-
ure to comply. Until he is so satisfied, the Commissioner shall make no 
further payments to such State under this Act (or shall limit pay-
ments to programs under, or portions of, the State plan or program 
plan and report not affected by such failure). 
Petition for 
"(d) A State board which is dissatisfied with a final action of the 
appeal. 
Commissioner under this section may appeal to the United States 
court of appeals for the circuit in which the State is located, by filing 
a petition with such court within sixty days after such final action. 
A copy of the petition shall be forthwith transmitted by the clerk of 
the court to the Commissioner, or any officer designated by him for 
that purpose. 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. Upon the filing of such 
petition, the court shall have jurisdiction to affirm the action of the 
Commissioner or to set aside such action, in whole or in part, tempo-
rarily or permanently, but until the filing of the record the 
Commissioner may modify or set aside his action. The findings of the 
Commissioner as to the facts, if supported by substantial evidence, 
shall be conclusive, but the court, for good cause shown, may remand 
the case to the Commissioner to take further evidence, and the Com-
missioner may thereupon make new or modified findings of fact and 
may modify his previous action, and shall file in the court the record 
of the further proceedings. Such new or modified findings of fact shall 
likewise be conclusive if supported by substantial evidence. The judg-
ment of the court affirming or setting aside, in whole or in part, any 
action of the Commissioner shall be final, 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. The com-
mencement of proceedings under this subsection shall not, unless so 
specifically ordered by the court, operate as a stay of the Commis-
sioner's action. 
"(e) (1) If any eligible recipient is dissatisfied with the final action 
of the State board or other appropriate State administering agency 
with respect to approval of an application by such eligible recipient 
for a grant pursuant to this Act, such eligible recipient may, within 
sixty days after such final action or notice thereof, whichever is later, 
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 peti-
tion shall be forthwith transmitted by the clerk of the court to the 
State board or other appropriate State administering agency. The 
State board or such other agency thereupon shall file in the court the 
record of the proceedings on which the State board or such other 
agency based its action, as provided in section 2112 of title 28, United 
States Code. 
"(2) The findings of fact by the State board or other appropriate 
administering agency, if supported by substantial evidence, shall be 
conclusive; but the court, for good cause shown, may remand the case 
to the State board or other such agency to take further evidence, and 
the State board or such other agency may thereupon make new or 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2185 
modified findings of fact and may modify its previous action, and 
shall certify to the court the record of the further proceedings. 
"(3) The court shall have jurisdiction to affirm the action of the 
State board or other appropriate administering agency 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 section 1254 of title 28, United States Code. 
"(f) (1) The Commissioner shall prescribe and implement rules to 
assure that any hearing conducted under section 434(c) of the Gen-
eral Education Provisions Act in connection with funds made avail- 20 USC 1233c. 
able from appropriations under this Act shall be held within the State 
of the att'ected unit of local government or geographic area within 
the State. 
"(2) For the purposes of paragraph (1)— 
Definitions. 
'•(A) the term 'unit of local government' means a county, 
municipality, town, township, village, or other unit of general 
government below the State level; and 
"(B) the term 'geographic area within a State' means a special 
purpose district or other region recognized for governmental pur-
poses within such State which is not a unit of local government. 
NATIONAL TRIORITY PROGRAMS 
"SEC. 110. (a) For each fiscal year, at least 10 per centum of each 20 USC 2310. 
State's allotment under section 103 shall be used to pay 50 per centum 
of the cost of vocational education for handicapped persons, 
"(b) (1) For each fiscal year, at least 20 per centum of each State's 
allotment under section 103 shall be used to pay 50 per centum of the 
cost of vocational education for disadvantaged persons (other than 
handicapped persons), for persons who have limited English-speaking 
ability, and for providing stipends authorized under section 120(b) 
(1)(G)-
"(2) From the funds used by a State pursuant to paragraph (1), 
each State shall use an amount equivalent to the same percentage of 
the funds reserved pursuant to that paragraph as the population aged 
fifteen to twenty-four, inclusive, having limited English-speaking 
ability is to the total population of the fttate aged fifteen to twenty-
four, inclusive, for providing vocational education for such persons 
with limited English-speaking ability, except that such amount shall 
not exceed the full sum used pursuant to paragraph (1). 
"(c) For each fiscal year, at least 15 per centum of each State's 
allotment under section 103 shall be used to pay 50 per centum of the 
cost of vocational education for (1) persons who have completed or 
left high school and who are enrolled in organized programs of study 
for which credit is given toward an associate or other degree, but 
which programs are not designed as baccalaureate or higher degree 
programs, and (2) persons who have already entered the labor market, 
or are unemployed, or who have completed or left high school and 
who are not described in paragraph (1). 
"(d) Each State shall use, to the maximum extent possible, the 
funds required to be used for the purposes specified in subsections (a) 
and (b) to assist individuals described in those subsections to partici-
pate in regular vocational education programs. 
u 
PAYMENTS TO STATES 
"SEC. 111. (a) (1) The Commissioner shall pay, from the amount 20 USC 2311. 
available to each State for grants under this part (except subpart 5) 
to eligible recipients, an amount equal to— 
90 STAT. 2186 
PUBLIC LAW 94-482—OCT. 12, 1976 
" (A) 50 per centum of the cost of carrying out its annual pro-
gram plan as approved pursuant to section 109, other than pro-
grams and activities for persons described in section 110; 
"(B) 50 per centum of the cost of vocational education pro-
grams for persons with special needs described in section 110(a), 
(b), and (c); and 
"(C) 100 per centum of the cost of vocational education pro-
grams described in sections 122(f), 133(b), and 140; 
except that in the case of the Trust Territory of the Pacific Islands and 
American Samoa, such amount shall be equal to 100 per centum of 
such expenditures. 
"(2) (A) In addition, the Commissioner shall pay, from the amount 
available to each State for administration of State plans appropriated 
under section 102 (d), an amount equal to the Federal share of the cost 
of administration of such plan. 
"(B) For the purpose of this paragraph, the Federal share for any 
fiscal year shall be 50 per centum, except that (1) for fiscal year 1978 it 
shall be 80 per centum and for fiscal year 1979 it shall be 60 per centum, 
and (2) whenever the Commissioner determines in exceptional cir-
cumstances that for the fiscal year preceding fiscal year 1978 State and 
local expenditures for vocational education in a State exceed ten 
times the Federal expenditure for vocational education in that State, 
and that the State has an appropriate, economic, and eiRcient State 
administration of the program, the Commissioner shall set the Fed-
eral share for fiscal year 1978 for that State in excess of the Federal 
share specified in clause (1), but not to exceed 100 per centum, 
"(b) (1) No payments shall be made in any fiscal year under this 
Act to any local educational agency or to any State unless the Commis-
sioner finds, in the case of a local educational agency, that the combined 
fiscal effort per student or the aggregate expenditures of that agency 
and the State with respect to the provision of vocational education by 
that agency for the fiscal year preceding the fiscal year for which the 
determination was made was not less than such combined fiscal effort 
per student or the aggregate exiDcnditures for that purpose for the 
second preceding fiscal year or, in the case of a State, that the fiscal 
effort per student or the aggregate expenditures of that State for voca-
tional education in that State for the fiscal year preceding the fiscal 
year for which the determination was made was not less than such 
fiscal effort per student or the aggregate expenditures for vocational 
education for the second preceding fiscal year. 
"(2) No payments shall be made in an^ fiscal year under this Act to 
any postsecondary educational institution unless the Commissioner 
finds that the aggregate amount or the amount per student spent by 
such institution from current funds for vocational education purposes 
for the fiscal year preceding the fiscal year for which the determination 
was made was not less than such amount spent by such institution from 
current funds for the second preceding fiscal year. 
u 
FEDERAL 
AND 
STATE 
EVALUATIONS 
\ 
20 use 2312. 
"SEC. 112. (a) In order for the Federal government to assist the 
States in operating the best possible programs of vocational 
education— 
" (1) the Commissioner shall within four months of the receipt 
of a State's annual program plan and accountability report trans-
mit to that State board an analysis of such plan and report, includ-
ing suggestions for improvements in the State's programs and 
findings contained in any program or fiscal audits performed in 
that State pursuant to paragraph (2); and 
PUBLIC LAW 94-4«2—OCT. 12, 1976 
90 STAT. 2187 
"(2) the Bureau of Occupational and Adult Education shall, 
in at least ten States a fiscal year during the period beginning 
October 1,1977, and ending September 30,1982, conduct a review 
analyzing the strengths and weaknesses of the programs assisted 
with funds available under this Act within those States; and the 
Department of Health, Education, and Welfare shall, in the same 
period, conduct fiscal audits of such programs within those States. 
"(b) (1) In order for the States to assist local educational agencies 
and other recipients of funds in operating the best possible programs 
of vocational education— 
"(A) each State shall, during the five-year period of the State 
plan, evaluate the effectiveness of each program within the State 
being assisted with funds available under this Act; and the results 
of these evaluations shall be used to revise the State's programs, 
and shall be made readily available to the State advisory council; 
and 
"(B) each State shall evaluate, by using data collected, wherever 
possible, by statistically valid sampling techniques, each such pro-
gram within the State which purports to impart entry level job 
skills according to the extent to which program completers and 
leavers— 
"(i) find employment in occupations related to their train-
ing, and 
"(ii) are considered by their employers to be well-trained 
and prepared for employment, 
except that in no case can pursuit of additional education or 
training by program completers or leavers be considered nega-
tively in these evaluations. 
"(2) Each State, in formulating its plans to fulfill these require-
ments, shall annually consult with the State advisory council which 
shall assist the State in developing these plans, monitor the evaluations 
conducted by the State, and use the results of these evaluations in 
compiling its annual report required by section 105. 
"(c) The Commissioner shall prepare and submit annually to the Report to 
Congress, within nine months of the termination of each fiscal year, Congress, 
a report on the status of vocational education in the country during 
that fiscal year. This report shall include data on the information ele-
ments developed in the national vocational education data reporting 
and accounting system and an analysis of such data, and a summary 
of the findings of the reviews and audits required by paragraph (2) 
of subsection (a) and of the evaluations performed pursuant to para-
graphs (1) and (2) of subsection (b). 
"Subpart 2—Basic Grant 
"AUTHORIZATION OF GRANTS AND USES OF FUNDS 
"SEO. 120. (a) From the sums made available for grants under this 20 U
S
C 2330. 
subpart pursuant to section 103, the Commissioner is authorized to 
make grants to States to assist them in conducting vocational educa-
tion programs in accordance with the requirements of this subpart. 
"(b)(1) Grants to States under this subpart may be used, in 
accordance with five-year State plans and annual program plans 
approved pursuant to section 109, for the following purposes: 
"(A) vocational education programs; 
"(B) work study programs as described in section 121; 
"(C) cooperative vocational education programs as described 
in section 122; 
90 STAT. 2188 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(D) energy education programs as described in section 123 j 
"f E) construction of area vocational education school facilities j 
"(F) support of full-time personnel to perform the duties 
described in section 104(b); 
"(G) the provision of stipends, subject to the restriction con-
tained in paragraph (2), which shall not exceed reasonable 
amounts, as prescribed by the Commissioner pursuant to regula-
tions, for students entering or already enrolled in vocational edu-
cation programs, if those students have acute economic needs 
which cannot be met under work-study programs; 
"(H) placement services for students who have successfully 
completed vocational education programs, subject to the restric-
tion contained in paragraph (2); 
"(1) industrial arts programs where such programs will assist 
in meeting the purposes of this Act; 
"(J) support services for women who enter programs designed 
to prepare individuals for employment in jobs which have oeen 
traditionally limited to men, including counseling as to the nature 
of such programs and the difficulties which may be encountered 
by women in such programs, and job development and job 
f 
ollowup services; 
"(K) day care services for children of students in secondary 
and postsecondary vocational education programs; 
"(L) vocational education for— 
"(i) persons who had solely been homemakers but who 
now, because of 
dissolution of 
marriage, must seek 
employment; 
(ii) persons who are single heads of households and who 
lack adequate job skills; 
" (iii) persons who are currently homemakers and part-time 
workers but who wish to secure a full-time job; and 
"(iv) women who are now in jobs which have been tradi-
tionally considered jobs for females and who wish to seek 
employment in job areas which have not been traditionally 
considered for job areas for females, and men who are now in 
jobs which have been traditionally considered jobs for males 
and who wish to seek employment in job areas which have 
not been traditionally considered job areas for males; and 
"(M) construction and operation of residential vocational 
schools as described in section 124. 
" (2) No funds shall be used for the purposes specified in subpara-
graph (G) or (H) of paragraph (1) unless the State board first makes 
a specific finding in each instance of funding that the funding of this 
particular activity is necessary due to inadequate funding in other 
programs providing similar activities or due to the fact that other 
services in the area are inadequate to meet the needs. 
"WORK STUDY PROGRAMS 
20 use 2331. 
"SEC. 121. (a) Funds available to the States under section 120 may 
be used for grants to local educational agencies for work-study pro-
grams which— 
" (1) are administered by the local educational agencies and are 
made reasonably available (to the extent of available funds) to 
all youths in the area served by such agency who are able to meet 
the requirements of paragraph (2); 
"(2) provide that employment under such work-study pro-
grams shall be furnished only to a student who (A) has been 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2189 
accepted for enrollment as a full-time student in a vocational 
education program which meets the standards prescribed by the 
State board and the local educational agency for vocational 
education programs assisted under this Act, or in the case of a 
student already enrolled in such a program, is in good standing 
and in full-time attendance, (B) is in need of the earnings from 
such employment to commence or continue his vocational 
education program, and (C) is at least fifteen years of age and 
less than twenty-one years of age at the commencement of his 
employment, and is capable, in the opinion of the appropriate 
school authorities, of maintaining good standing in his vocational 
education program while employed under the work-study 
program; 
''(3) provide that, pursuant to regulations of the Commis-
sioner, no student shall be employed under such work-study pro-
gram for more than a reasonable number of hours in any week 
in which classes in which he is enrolled are in session, or for 
compensation which exceeds payments under comparable Federal 
programs, unless the student is attending a school that is not 
within a reasonable commuting distance from his home, when the 
compensation may be set by the Commissioner at a higher level; 
"(4) provide that employment under such work-study program 
shall be for the local educational agency or for some other public 
or nonprofit private agency or institution; and 
"(5) provide that, in each fiscal year during which such pro-
gram remains in effect, such agency shall expend (from sources 
other than payments from Federal funds under this section) for 
the employment of its students (whether or not in employment 
eligible for assistance under this section) an amount that is not 
less than its average annual expenditure for work-study programs 
of a similar character during the three fiscal years preceding the 
fiscal year in which its work-study program under this section is 
approved. 
"(b) Each State in operating work-study programs from funds 
made available under section 120 shall— 
"(1) adopt policies and procedures which assure that Federal 
funds used for this purpose will be expended solely for the pay-
ment or compensation of students employed pursuant to the work-
study programs meeting the requirements of subsection (a) ; and 
"(2) set forth principles for determining the priority to be 
accorded applications from local educational agencies for work-
study programs, which principles shall give preference to 
applications submitted by local educational agencies serving com-
munities having substantial numbers of youths who have dropped 
out of school or who are unemployed, and provide for underta!king 
such programs, insofar as financial resources available therefor 
make possible, in the order determined by the application of such 
principles. 
"(c) Students employed in work-study programs assisted pursuant 
to this section shall not by reason of such employment be deemed em-
ployees of the United States, or their service Federal service, for any 
reason. 
"COOPERATIVE VOCATIONAL EDUCATION PROGRAMS 
"SEC. 122. Funds available to the States under section 120 may be 20 USC 2332. 
used for establishing or expanding cooperative vocational education 
programs through local educational agencies with the participation of 
89-194 O—78—pt. 2 
46 
90 STAT. 2190 
PUBLIC LAW 94-482—OCT. 12, 1976 
public and private employers. Such, programs shall include provisions 
assuring that— 
"(a) funds will be used only for developing and operating 
cooperative vocational programs as defined in section 195(18) 
which provide training opportunities that may not otherwise be 
available and which are designed to serve persons who can benefit 
from such programs; 
"(b) necessary procedures are established for cooperation with 
employment agencies, labor groups, employers, and other com-
munity agencies in identifying suitable jobs for persons who 
enroll in cooperative vocational education programs; 
"(c) provision is made, where necessary, for reimbursement 
of added costs to employers for on-the-job training of students 
enrolled in cooperative programs, provided such on-the-job train-
ing is related to existing career opportunities susceptible of pro-
motion and advancement and which do do not displace other 
workers who perform such work; 
"(d) ancillary services and activities to assure quality in 
cooperative vocational education programs are provided for, such 
as preservice and inservice training for teacher coordinators, 
supervision, curriculum materials, travel of students and coordi-
nators necessary to the success of such programs, and evaluation; 
"(e) priority for funding cooperative vocational education pro-
grams through local educational agencies is given to areas that 
have high rates of school dropouts and youth unemployment; 
"(f) to the extent consistent with the number of students 
enrolled in nonprofit private schools in the area to be served, whose 
educational needs are of the type which the program or project 
involved is to meet, provision has been made for the participation 
of such students; 
"(g) Federal funds used for the purposes of this section will 
not be commingled with State or local fimds; and 
"(h) such accounting, evaluation, and followup procedures as 
the Commissioner deems necessary will be provided. 
(( 
ENERGY EDUCATION" 
20 use 2333. 
"SEC. 123. (a) (1) Funds available to States under section 120 may 
be used to make grants to postsecondary educational institutions to 
carry out programs for the training of miners, supervisors, technicians 
(particularly safety personnel), and environmentalists in the field of 
coal mining and coal mining technology, including acquisition of 
equipment necessary for the conduct of such program. 
"(2) Grants made under this section shall be made pursuant to 
applications which describe with particularity a program for the 
training of miners, supervisors, and technicians in the field of coal 
mining and coal mining technology, including provision for supple-
mentary demonstration projects or short-term seminars, which 
program may include such curriculums as (A) the extraction, prepa-
ration, and transportation of coal, (B) the reclamation of coal mined 
land, (C) the strengthening of health and safety programs for coal 
mine employees, (D) the disposal of coal mine wastes, and (E) the 
chemical and physical analysis of coal and materials, such as water 
and soil, that are involved in the coal mining process. 
"(b) Funds available under section 120 may also be used to make 
grants to postsecondary educational institutions to carry out programs 
for the training of individuals needed for the installation of solar 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2191 
energy equipment, including training necessary for the installation of 
glass paneled solar collectors and of wind energy generators, and for 
the installation of other related applications of solar energy. 
"RESIDENTIAL VOCATIONAL SCHOOLS 
"SEC. 124. (a) Funds available to the States under section 120 20 USC 2334. 
may be used for the construction, equipment, and operation of resi-
dential schools to provide vocational education (including room, 
board, and other necessities) for youths, at least fifteen years of age 
and less than twenty-one years of age at the time of enrollment, who 
need full-time study on a residential basis in order to benefit fully 
from such education. In using funds available under section 120 for 
this purpose, the States shall give special consideration to the needs 
of large urban areas and isolated rural areas having substantial 
numbers of youths who have dropped out of school or who are 
unemployed. 
"(b) No funds made available under section 120 may be used for 
the purposes of this section for residential vocational schools to which 
juveniles are assigned as the result of their delinquent conduct or in 
which the students are segregated because of race. 
"Subpart 3—Program Improvement and Supportive Services 
"AUTHORIZATION or GRANTS AND USES OF FUNDS 
"SEC. 130. (a) From the sums made available for grants under this 20 USC 2350. 
subpart pursuant to section 103 the Commissioner is authorized 
to make grants to States to assist them in improving their vocational 
education programs and in providing supportive services for such pro-
grams in accordance with the provisions of this subpart. 
"(b) Grants to States under this subpart may be used, in accord-
ance with five-year State plans, and annual program plans approved 
pursuant to section 109, for the following purposes: 
" (1) research programs as described in section 131; 
"(2) exemplary and innovative programs as described in sec-
tion 132; 
^ 
"(3) curriculum development programs as described in section 
133; 
" (4) provision of guidance and counseling services, programs, 
and activities as described in section 134; 
" (5) provision of pre-service and in-service training as described 
in section 135; and 
"(6) grants to overcome sex bias as described in section 136. 
"RESEARCH 
"SEC. 131. (a) Funds available to the States under section 130(a) 20 U
S
C 2351. 
may be used for support of State research coordination units and for 
contracts by those units pursuant to comprehensive plans of program 
improvement involving— 
" jl) applied research and development in vocational education; 
"(2) experimental, developmental, and pilot programs and 
projects designed to test the effectiveness of research findings, 
including programs and projects to overcome problems of sex 
bias and sex stereotyping; 
"(3) improved curriculum materials for presently funded pro-
grams in vocational education and new curriculum materials for 
90 STAT. 2192 
PUBLIC LAW 94-482—OCT. 12, 1976 
new and emerging job fields, including a review and revision of 
any curricula developed under this section to insure that such 
curricula do not reflect stereotypes based on sex, race, or national 
origin; 
"(4) projects in the development of new careers and occupa-
tions, such as— 
" (A) research and experimental projects designed to iden-
tify new careers in such fields as mental and physical health, 
crime prevention and correction, welfare, education, munici-
pal services, child care, and recreation, requiring less train-
ing than professional positions, and to delineate within such 
career roles with the potential for advancement from one 
level to another; 
"(B) training and development projects designed to 
demonstrate improved methods of securing the involvement, 
cooperation, and commitment of both the public and private 
sectors toward the end of achieving greater coordination and 
more effective implementation of programs for the employ-
ment of persons in the fields described in subparagraph (A), 
including programs to prepare professionals 
(including 
administrators) to work effectively with aides; and 
"(C) projects to evaluate the operation of programs for 
the training, development, and utilization of public service 
aides, particularly their effectiveness in providing satisfac-
tory work experiences and in meeting public needs; 
and 
"(5) dissemination of the results of the contracts made pur-
suant to paragraphs (1) through (4), including employment 
of persons to act as disseminators, on a local level, of these 
results. 
"(b) No contract shall be made pursuant to subsection (a) unless 
the applicant can demonstrate a reasonable probability that the con-
tract will result in improved teaching techniques or curriculum 
materials that will be used in a substantial number of classrooms or 
other learning situations within five years after the termination date 
of such contract. 
a 
EXEMPLARY AND INNOVATIVE PROGRAMS 
20 use 2352. 
"SEC. 132. (a) Funds available to the States under section 130(a) 
may be used for contracts, as part of the comprehensive plans of pro-
gram improvement mentioned in section 131(a), for the support of 
exemplary and innovative programs, including— 
"(1) programs designed to develop high quality vocational 
education programs for urban centers with high concentrations 
of economically disadvantaged individuals, unskilled workers, 
and unemployed individuals; 
"(2) programs designed to develop training opportunities for 
persons in sparsely populated rural areas and for individuals 
migrating from farms to urban areas; 
" (3) programs of effective vocational education for individuals 
with limited English-speaking ability; 
"(4) establishment 
of 
cooperative 
arrangements 
between 
public education and manpower agencies, designed to correlate 
vocational education opportunities with current and projected 
needs of the labor market; and 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2193 
"(5) programs designed to broaden occupational aspirations 
and opportunities for youth, with special emphasis given to youth 
who 
have 
academic, 
socioeconomic, 
or 
other 
handicaps, 
including— 
"(A) programs and projects designed to familiarize 
elementary and secondary school students with the broad 
range of occupations for which special skills are required, 
and the requisites for careers in such occupations; and 
"(B) programs and projects to facilitate the participation 
of employers and labor organizations in postsecondary voca-
tional education. 
"(b) Every contract made by a State for the purpose of funding 
exemplary and innovative projects shall give priority to programs 
and projects designed to reduce sex stereotyping in vocational educa-
tion and shall, to the extent consistent with the number of students 
enrolled in nonprofit private schools in the area to be served whose 
educational needs are of the type which the program or project 
involved is to meet, provide for the participation of such students; and 
such contract shall also provide that the Federal funds will not be 
commingled with State or local funds. 
"(c) The annual program plan and accountability report covering 
the final year of financial support by the State for any such program 
or project shall indicate the proposed disposition of the program or 
project following the cessation of Federal support and the means by 
which successful or promising programs or projects will be continued 
and expanded within the State. 
u 
CURRICULUM DEVELOPMENT 
"SEC. 133. (a) Funds available to the States under section 130(a) 
20 U
S
C 2353. 
may be used for contracts for the support of curriculum development 
projects, including— 
"(1) the development and dissemination of vocational educa-
tion curriculum materials for new and changing occupational 
fields and for individuals with special needs, as described in 
section 110; and 
"(2) the development of curriculum and guidance and testing 
materials designed to overcome sex bias in vocational education 
programs, and support services designed to enable teachers to 
meet the needs of individuals enrolled in vocational education 
programs traditionally limited to members of the opposite sex, 
"(b) No contract shall be made pursuant to subsection (a) unless 
the applicant can demonstrate a reasonable probability that the con-
tract will result in improved teaching techniques or curriculum 
materials that will be used in a substantial number of classrooms or 
other learning situations within five years after the termination date 
of such contract. 
((. 
VOCATIONAL GUIDANCE AND COUNSELING 
"SEC. 134. (a) Not less than 20 per centum of the funds available 20 USC 2354. 
to the States under section 130(a) shall be used to support programs 
for vocational development guidance and counseling programs and 
services which, subject to the provisions of subsection (b), shall 
include— 
"(1) initiation, implementation, and improvement of high 
quality vocational guidance and counseling programs and 
activities: 
90 STAT. 2194 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(2) vocational counseling for children, youth, and adults, 
leading to a greater understanding of educational and vocational 
options; 
"(3) provision of educational and job placement services, 
including programs to prej)are individuals for professional occu-
pations or occupations requiring a baccalaureate or higher degree, 
including followup services; 
"(4^ vocational guidance and counseling training designed to 
acquaint guidance counselors with (A) the changing work pat-
terns of women, (B) ways of effectively overcoming occupa-
tional sex stereotyping, and (C) ways of assisting girls and 
women in selecting careers solely on their occupational needs and 
interests, and to develop improved career counseling materials 
which are free; 
"(5) vocational and educational counseling for youth offenders 
and adults in correctional institutions; 
"(6) vocational guidance and counseling for persons of limited 
English-speaking ability; 
"(7) establishment of vocational resource centers to meet the 
special needs of out-of-school individuals, including individuals 
seeking second careers, individuals entering the job market late in 
life, handicapped individuals, individuals from economically 
depressed communities or areas, and early retirees; and 
"(8) leadership for vocational guidance and exploration pro-
grams at the local level. 
"(b) Each State which chooses to fund activities described in para-
graph (1) or (2) of subsection (a) of this section shall use those 
funds, insofar as is practicable, for funding programs, services, or 
activities by eligible recipients which bring individuals with experi-
ence in business and industry, the professions, and other occupational 
pursuits into schools as counselors or advisors for students, and which 
bring students into the work establishments of business and industry, 
the professions, and other occupational pursuits for the purpose of 
acquainting students Avith the nature of the work that is accomplished 
therein, and for funding projects of such recipients in which guidance 
counselors obtain experience in business and industry, the profes-
sions, and other occupational pursuits which will better enable those 
counselors to carry out their guidance and counseling duties. 
"VOCATIONAL EDUCATION PERSONNEL TRAINING 
20 use 2355. 
"SEC. 135. (a) Funds available to the States under section 130(a) 
may be used to support programs or projects designed to improve the 
qualifications of persons serving or preparing to serve in vocational 
education programs, including teachers, administrators, supervisors, 
and vocational guidance and counseling personnel, including programs 
or projects— 
"(1) to train or retrain teachers, and supervisors and trainers 
of teachers, in vocational education in new and emerging 
occupations; 
" (2) which provide in-service training for vocational education 
teachers and other staff members, to improve the quality of 
instruction, supervision, and administration of vocational educa-
tion programs, and to overcome sex bias in vocational education 
programs; 
"(3) which provide for exchange of vocational education teach-
ers and other personnel with skilled workers or supervisors in 
business, industry, and agriculture (including mutual arrange-
PUBLIC LAW 94-4«2—OCT. 12, 1976 
90 STAT. 2195 
ments for preserving employment and retirement status and other 
employment benefits during the period of exchange), and the 
development and operation of cooperative programs involving 
periods of teaching in schools providing vocational education and 
of experience in commercial, industrial, or other public or private 
employment related to the subject matter taught in such school; 
" (4) to prepare journeymen in the skilled trades or occupations 
for teaching positions; 
" (5) to train and to provide in-service training for teachers and 
supervisors and trainers of teachers in vocational education to 
improve the quality of instruction, supervision, and administra-
tion of vocational education for persons with limited English-
speaking ability and to train or retrain counseling and guidance 
personnel to meet the special needs of persons with limited Eng-
lish-speaking ability; and 
"(6) which provide short-term or regular-session institutes 
designed to improve the qualifications of persons entering or 
reentering the field of vocational education in new and emerging 
occupational areas in which there is a need for such personnel. 
"(b) A State may include in the terms of any grant or contract 
under this section provisions authorizing the payment, to persons 
participating in the training programs supported under this section, 
of such stipends (including allowances for subsistence and other 
expenses for such persons and their dependents) as the Commissioner 
may determine, pursuant to regulations, consistent with prevailing 
practices under comparable programs. 
u 
GRANTS TO ASSIST IN OVERCOMING SEX BIAS 
"SEC. 136. Funds available to the States under section 130(a) may 20 USC 2356. 
be used to support activities which show promise of overcoming sex 
stereotyping and bias in vocational education. 
"Subpart 4—Special Programs for the Disadvantaged 
"SPECIAL PROGRAMS FOR THE DISADVANTAGED 
"SEC. 140. (a) From the sums made available for grants under 20 U
S
C 2370. 
this subpart pursuant to sections 102 and 103, the Commissioner is 
authorized to make grants to States to assist them in conducting special 
programs for the disadvantaged (as defined in section 195(16)) in 
accordance with the requirements of this subpart. 
"(b) (1) Grants to States under this subpart shall be used, in accord-
ance with five-year State plans and annual program plans approved 
pursuant to section 109, for allocation within the State to areas of high 
concentrations of youth unemployment and school dropouts, and shall 
be used to pay the full cost of vocational education for disadvantaged 
persons. 
"(2) Such funds may be granted to eligible recipients only if (A) 
to the extent consistent with the number of students enrolled in non-
profit private schools in the area to be served whose educational needs 
are of the type which the program or project involved is to meet, pro-
vision has been made for the participation of such students, and (B) 
effective policies and procedures have been adopted which assure that 
Federal funds made available under this subpart to accommodate 
students in nonprofit private schools will not be commingled with 
State or local funds. 
90 STAT. 2196 
PUBLIC LAW 94-482—OCT. 12, 1976 
"Subpart 5—Consumer and Homemaking Education 
"CONSUMER AND HOMEMAKING EDUCATION 
20 use 2380. 
"SEC. 150. (a) From the sums made available for grants under this 
subpart pursuant to sections 102 and 103, the Commissioner is author-
ized to make grants to States to assist them in conducting consumer 
and homemaking education programs. 
"(b) Grants to States under this subpart may be used, in accord-
ance with five-year State plans and annual program plans approved 
pursuant to section 109, solely for (1) educational programs m con-
sumer and homemaking education consisting of instructional pro-
grams, services, and activities at all educational levals for the 
occupations of homemaking including but not limited to, consumer 
education, food and nutrition, family living and parenthood education, 
child development and guidance, housing and home management 
(including resource management), and clothing and textiles which 
(A) encourage participation of both males and females to prepare for 
combining the roles of homemakers and wage earners; (B) encourage 
elimination of sex stereotyping in consumer and homemaking educa-
tion by promoting the development of curriculum materials which deal 
(i) with increased numbers of women working outside the home, and 
increased numbers of men assuming homemaking responsibilities and 
the changing career patterns for women and men and (ii) with appro-
priate Federal and State laws relating to equal opportunity in educa-
tion and employment; (C) give greater consideration to economic, 
social, and cultural conditions and needs especially in economically 
depressed areas and such courses may include where appropriate 
bilingual instruction; (D) encourage outreach programs in communi-
ties for youth and adults giving considerations to special needs such 
as, but not limited to, aged, young children, school-age parents, single 
parents, handicapped persons, educationally disadvantaged persons, 
and programs connected with health care delivery systems, and pro-
grams providing services for courts and correctional institutions; (E) 
prepare males and females who have entered or are preparing to enter 
the work of the home; (F) emphasize consumer education, manage-
ment of resources, promotion of nutritional knowledge and food use, 
and parenthood education to meet the current societal needs, and (2) 
ancillary services, activities and other means of assuring quality in all 
homemaking education programs such as teacher training and super-
vision, curriculum development, research, program evaluation, special 
demonstration, and experimental programs, development of instruc-
tional materials, exemplary projects, provision of equipment, and State 
administration and leadership. 
"(c) Notwithstanding the provisions contained in section 111(a), 
from a State's allotment determined under section 103 for any fiscal 
year from the funds appropriated pursuant to section 102(c), the Com-
missioner shall pay to such State an amount equal to 50 per centum of 
the amount expended for the purposes set forth in subsection (b), 
except that the Commissioner shall pay an amount to each State equal 
to 90 per centum of the amount used in areas described in subsec-
tion (d). 
"(d) At least one-third of the Federal funds made available under 
this section to each State shall be used in economically depressed areas 
or areas with high rates of unemployment for programs designed to 
assist consumers and to help improve home environments and the 
quality of family life. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2197 
"PART B—NATIONAL PROGRAMS 
"Subpart 1—General Provisions 
a FEDERAL ADMINISTRATION 
"SEC. 160. (a) There is established in the United States Office of 20 USC 2390. 
Education a Bureau of Occupational and Adult Education (herein-
after in this Act referred to as the 'Bureau'), which shall be responsi-
ble for (1) the administration of all the programs authorized by this 
Act and the Adult Education Act, (2) functions of the Office of Edu- 20 USC 1201 
cation relating to manpower training and development, (3) functions note-
of that Office relating to postsecondary vocational, technical, and occu-
pational training funded under this Act, (4) the administration of any 
other Act of Congress vesting authority in the Commissioner for voca-
tional, occupational, and adult education, and (5) the administration 
of those portions of any Act of Congress relating to career education 
which are relevant to the purposes of other Acts of Congress admin-
istered by the Bureau. 
"(b)(1) The Bureau shall be headed by a person (appointed or 
designated by the Commissioner) who is highly qualified in the fields 
of vocational, technical, and occupational education, who is accorded 
the rank of Deputy Commissioner, and who shall be compensated at 
the rate specified for grade 18 of the General Schedule set forth in 
section 5332 of title 5, United States Code. 
5 USC 5332 note 
"(2) Additional positions are created for, and shall be assigned to, 
the Bureau as follows: 
"(A) three positions to be placed in grade 17 of such General 
Schedule, one of which shall be filled by a person with broad 
experience in the field of junior and community college 
education, 
"(B) seven positions to be placed in grade 16 of such General 
Schedule, at least two of which shall be filled by persons with 
broad experience in the field of postsecondary-occupational edu-
cation in community and junior colleges, at least one of which 
shall be filled by a person with broad experience in education in 
private proprietary institutions, and at least one of which shall 
be filled by a person with professional experience in occupational 
guidance and counseling, and 
"(C) three positions which shall be filled by persons at least 
one of whom is a skilled worker in a recognized occupation, 
another is a subprofessional technician in one of the branches of 
engineering, and the other is a subprofessional worker in one of 
the branches of social or medical services, who shall serve as 
senior advisers in the administration of the programs in the 
Bureau. 
"(3) The Commissioner shall assign to the Bureau, by the end of 
fiscal year 1978, at least 50 per centum more persons to directly admin-
ister the programs authorized under this Act than were assigned to 
directly administer this Act during fiscal year 1976. 
" V O C A T I O N A L 
E D U C A T I O N 
D A T A A N D OCCUPATIONAL INFORMATION DATA 
SYSTEMS 
"SEC. 161. (a) (1) The Commissioner and the Administrator of the 20 USC 2391. 
National Center for Education Statistics shall, by September 30,1977, 
jointly develop information elements and uniform definitions for a 
national vocational education data reporting and accounting system. 
90 STAT. 2198 
PUBLIC LAW 94-482—OCT. 12, 1976 
29 u s e 801 note. 
National 
Occupational 
Information 
Coordinating 
Committee. 
Establishment. 
This system shall include information resulting from the evaluations 
required to be conducted by section 112 (as such section will be in 
effect on October 1,1977) and other information on vocational— 
"(A) students (including information on their race and sex), 
"(B) programs, 
"(C) program completers and leavers, 
"(D) staff, 
"(E) facilities, and 
"(F) expenditures. 
"(2) In developing this system, the Commissioner and the Admin-
istrator shall endeavor as much as possible to make the system com-
patible with the occupational information data system developed 
pursuant to subsection (b) and other information systems involving 
data on programs assisted under the Comprehensive Employment and 
Training Act of 1973. 
"(3) (A) After the completion of the development of these infor-
mation elements and uniform definitions pursuant to paragraph (1), 
the Administrator shall immediately begin to design, implement,, 
and operate this information system which shall be in full operation 
for the fiscal year beginning October 1,1977. 
"(B) Any State receiving assistance under this Act shall cooperate 
with the Administrator in supplying the information required to be 
submitted by the Administrator and shall comply in its reports with 
the information elements and definitions developed jointly by the 
Administrator and the Commissioner pursuant to paragraph (1). 
Each State shall submit this data to the Administrator in whatever 
form he requires; and, whenever possible, this reporting shall include 
reporting of data by labor market areas within the State. 
"(4) The Administrator shall have the responsibility for updating 
this national vocational education information and accounting sys-
tem and for preparing annual acquisition plans of data for operating 
this system. These plans shall be submitted to the Commissioner for 
his review and comment. 
"(b)(1) There is hereby established a National Occupational 
Information Coordinating Committee which shall consist of the Com-
missioner, the Administrator, the Commissioner of Labor Statistics, 
and the Assistant Secretary for Employment and Training. This 
Committee, with funds available to it under section 103(a) (as such 
section will be in effect on October 1,1977), shall— 
"(A) in the use of program data and employment data, 
improve coordination between, and communication among, 
administrators and planners of programs authorized by this Act 
and by the Comprehensive Employment and Training Act of 
1973, employment security agency administrators, research per-
sonnel, and employment and training planning and administer-
ing agencies at the Federal, State, and local levels; 
"(B) develop and implement, by September 30, 1977, an 
occupational information system to meet the common occupa-
tional information needs of vocational education programs and 
employment and training programs at the national. State, and 
local levels, which system shall include data on occupational 
demand and supply based on uniform definitions, standardized 
estimating procedures, and standardized occupational classifica-
tions; and 
"(C) assist State occupational information coordinating com-
mittees established pursuant to paragraph (2). 
"(2) By September 30, 1977, each State receiving assistance under 
this Act and under the Comprehensive Employment and Training 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2199 
Act of 1973 shall establish a State occupational information coordi- 29 USC 801 note. 
nating committee composed of representatives of the State board, 
the State employment security agency, the State Manpower Services 
Council, and the agency administering the vocational rehabilitation 
program. This committee shall, with funds available to it from the 
National Coordinating Committee established pursuant to paragraph 
(1), implement an occupational information system in the State which 
will meet the common needs for the planning for, and the operation 
of, programs of the State board assisted under this Act and of the 
administering agencies under the Comprehensive Employment and 
Training Act of 1973. 
"NATIONAL ADVISORY COUNCIL ON VOCATIONAL EDUCATION 
"SEC. 162. (a) The National Advisory Council on Vocational Edu- 20 USC 2392. 
cation, established pursuant to section 104(a) of the Vocational 
Education Act of 1963, in effect prior to the enactment of the Educa- 20 USC 1244. 
tion Amendments of 1976, shall continue to exist during the period for 
which appropriations are authorized under this Act. Individuals who 
are members of the Council on the date of the enactment of this Act 
may continue to serve for the terms for which they were appointed. 
Members appointed to succeed such individuals shall be appointed by 
the President for terms of three years. The Council shall consist of 
twenty-one members, each of whom shall be designated as representing 
one of the categories set forth in the following sentence. The National 
Advisory Council shall include individuals— 
"(1) representative of labor and management, including per-
sons who have knowledge of semiskilled, skilled, and technical 
employment; 
"(2) representative of new and emerging occupational fields; 
"(3) knowledgeable in the field of vocational guidance and 
counseling; 
"(4) representing the National Commission for Manpower 
Policy created pursuant to title V of the Comprehensive Employ-
ment and Training Act of 1973; 
29 USC 951. 
"(5) representing nonprofit private schools; 
"(6) who are women with backgrounds and experiences in 
employment and training programs, who are knowledgeable with 
respect to problems of sex discrimination in job training and in 
employment, including women who are members of minority 
groups and who have, in addition to such backgrounds and experi-
ences, special knowledge of the problems of discrimination in job 
training and employment against women who are members of 
such groups; 
"(7) knowledgeable about the administration of State and 
local vocational education programs, including members of school 
boards and private institutions; 
" (8) experienced in the education and training of handicapped 
persons and of persons of limited English-speaking ability (as 
defined in section 703(a) of the Elementary and Secondary Edu-
cation Act of 1965) ; 
20 USC 880b-l. 
"(9) familiar with the special problems and needs of indi-
viduals disadvantaged by their socioeconomic backgrounds; 
"(10) having special knowledge of postsecondary and adult 
vocational education programs; 
"(11) familiar with the special problems of individuals in cor-
rectional institutions; and 
90 STAT. 2200 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(12) representative of the general public who are not Federal 
employees, including parents and students, except that they must 
not be representative of categories (1) through (11), and who 
shall constitute not less than one-third of the total membership. 
The National Council shall have as a majority of its members persons 
who are not educators or administrators in the field of education. In 
appointing the National Advisory Council, the President shall insure 
that there is appropriate representation of both sexes, racial and ethnic 
minorities, and the various geographic regions of the country. The 
President shall select the chairman. The National Advisory Council 
shall meet at the call of the Chairman, but not less than four times a 
year. 
" (b) The National Advisory Council shall— 
"(1) advise the President, Congress, Secretary, and Commis-
sioner concerning the administration of, preparation of general 
regulations and budget requests for, and operation of, vocational 
education programs supported with assistance under this Act; 
"(2) review the administration and operation of vocational 
education programs under this Act, and other pertinent laws 
affecting vocational education and manpower training (including 
the effectiveness of such programs in meeting the purposes for 
which they are established and operated), make recommendations 
with respect thereto, and make annual reports of its findings and 
recommendations (including recommendations for changes in the 
provisions of this Act and such other pertinent laws) to the Presi-
dent, Congress, Secretary, and Commissioner; 
"(3) make such other reports or recommendations to the Presi-
dent, Congress, Secretary, Commissioner, or head of any other 
Federal department or agency as it may deem desirable; 
"(4) (A) identify, after consultation with the National Com-
mission for Manpower Policy, the vocational education and 
employment and training needs of the Nation and assess the extent 
to which vocational education, employment training, vocational 
rehabilitation, and other programs under this and related Acts 
represent a consistent, integrated, and coordinated approach to 
meeting such needs; and (B) comment, at least once annually, on 
the reports of the National Commission, which comments shall be 
included in one of the reports submitted by the National Advisory 
Council pursuant to this section and in one of the reports sub-
mitted by the National Commission pursuant to section 505 of the 
29 use 955. 
Comprehensive Employment and Training Act of 1973; 
"(5) conduct such studies, hearings, or other activities as 
it deems necessary to enable it to formulate 
appropriate 
recommendations; 
"(6) conduct independent evaluations of programs carried out 
under this Act and publish and distribute the results thereof; and 
"(7) provide technical assistance and leadership to State 
advisory councils established pursuant to section 105, in order 
to assist them in carrying out their responsibilities under this Act. 
Appropriation 
"(c) There are authorized to be appropriated $450,000 for the fiscal 
authorization. 
year ending September 30, 1978, $475,000 for the fiscal year ending 
September 30, 1979, and $500,000 for each of the fiscal years ending 
prior to September 30, 1982 for the purposes of this paragraph. The 
Council is authorized to use the funds appropriated pureuant to the 
preceding sentence to cai-ry out its functions as set forth in this section 
and to engage such technical assistance as may be required to assist it 
in performing these functions. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2201 
"Subpart 2—Programs of National Significance 
"PROGRAM IMPROVEMENT 
"SEC. 171. (a) Funds reserved to the Commissioner under section 20 USC 2401. 
103 for programs under this part sliall be used primarily for contracts, 
and in some cases for grants, for— 
"(1) activities authorized by sections 131, 132, 133, 134, 135, 
and 136, if such activities are deemed to be of national significance 
by the Commissioner; 
"(2) support of a national center for research in vocational 
education, chosen once every five years, which center shall be a 
nonprofit agency, shall be assisted by an advisory committee 
appointed by the Commissioner, shall have such locations, includ-
ing contracts with one or more regional research centers, as shall 
be determined by the Commissioner after consultation with the 
national center and its advisory committee taking into considera-
tion the vocational education research resources available, 
geographical area to be served and the schools, programs, proj-
ects, and students and areas to be served by research activities, 
and shall, either directly or through other public agencies— 
"(A) conduct applied research and development on prob-
lems of national significance in vocational education; 
"(B) provide leadership development through an advanced 
study center and inservice education activities for State and 
local leaders in vocational education; . 
"(C) disseminate the results of the research and develop-
ment projects funded by the center; 
" (D) develop and provide information to facilitate national 
planning and policy development in vocational education; 
"(E) (i) act as a clearinghouse for information on con-
tracts made by the States pursuant to section 131, section 
132, and section 133 and on contracts made by the Commis-
sioner pursuant to this section; and (ii) compile an annotated 
bibliography of research, exemplary and innovative program 
projects, and curriculum development projects assisted with 
funds made available under this Act since July 1, 1970; and 
"(F) work with States, local educational agencies, and 
other public agencies in developing methods of evaluating 
programs, including the follow-up studies of program com-
pleters and leavers required by section 112, so that these agen-
cies can offer job training programs which are more closely 
related to the types of jobs available in their communities, 
regions, and States; and 
" (3) training and development programs as described in section 
172. 
"(b)(1) The Commissioner shall not make a grant pursuant to para-
graph (1) of subsection (a) unless the applicant can demonstrate a 
reasonable probability that such grant will result in improved teach-
ing techniques or curriculum materials that will be used in a substan-
tial number of classrooms or other learning situations within five 
years after the termination date of such grant. 
"(2) Every contract made by the Commissioner for the purpose of 
funding exemplary and innovative projects pursuant to paragraph 
(1) of subsection (a) shall, to the extent consistent with the number of 
students enrolled in nonprofit private schools in the area to be served 
whose educational needs are of the type which the project involved is 
to meet, provide for the participation of such students; and such con-
90 STAT. 2202 
PUBLIC LAW 94-482—OCT. 12, 1976 
Coordinating 
Committee on 
Research in 
Vocational 
Education. 
Establishment. 
tract shall also provide that the Federal funds will not be commingled 
with State or local funds. 
" (3) The Commissioner shall, from the funds made available to him 
under this section, make contracts to convert to use in local edu-
cational agencies, in private nonprofit schools, and in other public 
agencies, curriculum materials involving job preparation which have 
been prepared for use by the armed services of the United States. 
"(4) There is hereby established a Coordinating Committee on 
Research in Vocational Education within the Education Division of 
the Department of Health, Education, and Welfare which shall be 
composed of the Director of the National Institute of Education, the 
Commissioner, and the Director of the Fund for the Improvement of 
Postsecondary Education, or their representatives. This Committee 
shall— 
" (A) develop a plan for each fiscal year (i) establishing national 
priorities for the use of funds available to these agencies for 
vocational education research, career education research, educa-
tion and work research, development, exemplary and innovative 
program projects, and curriculum development projects; and 
(ii) coordinating the efforts of these agencies in seeking to achieve 
these national priorities in order to avoid duplication of effort; 
and 
"(B) develop an effective management information system on 
the projects funded pursuant to this plan in order to achieve the 
best possible monitoring and evaluation of these projects and the 
widest possible dissemination of their results. 
" (5) (A^ From the sums reserved to the Commissioner under section 
103 for this part, the Commissioner may pay all or part of the costs of 
contracts and grants authorized by this section. 
"(B) Funds reserved for contracts and grants under this section 
shall be available for expenditure until expended, unless a law is 
enacted in specific restriction of this subsection; and these funds may 
be used for contracts and grants for a period not to exceed three fiscal 
years. 
"TRAINING AND DEVELOPMENT PROGRAMS FOR VOCATIONAL 
EDUCATION PERSONNEL 
20 use 2402. 
"SEC. 172. (a) From funds available to him under section 103, the 
Commissioner shall provide (1) opportunities for experienced voca-
tional educators to spend full time in advanced study of vocational 
education for a period not to exceed three years in length; (2) oppor-
tunities for certified teachers who have been trained to teach in other 
fields to become vocational educators, if those teachers have skills 
and experience in vocational fields for which they can be trained to be 
vocational educators; and (3) opportunities for persons in industry 
who have skills and experience in vocational fields for which there is a 
need for vocational educators, but who do not necessarily have bacca-
laureate degrees, to become vocational educators. 
"(b) (1) In order to meet the needs in all States for qualified voca-
tional education personnel (such as administrators, supervisors, 
teacher educators, researchers, guidance and counseling personnel, and 
instructors in vocational education programs) the Commissioner shall 
make available leadership development awards in accordance with the 
provisions of this subsection only upon his determination that— 
"(A) persons selected for awards have had not less than two 
years of experience in vocational education or in industrial train-
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2203 
ing, or military technical training; or, in the case of researchers, 
experience in social science research which is applicable to voca-
tional education; 
"(B) persons receiving such awards are currently employed 
or are reasonably assured of employment in vocational education 
and have successfully completed, as a minimum, a baccalaureate 
degree program; and 
"(C) persons selected are recommended by their employer, or 
others, as having leadership potential in the field of vocational 
education and are eligible for admission as a graduate student to 
a program of higher education approved by the Commission 
under paragraph (2). 
"(2) (A) The Commissioner shall, for a period not to exceed three 
years, pay to persons selected for leadership development awards such 
stipends (including such allowances or subsistence and other expenses 
for such persons and their dependents) as he may determine to be con-
sistent with prevailing practices under comparable federally sup-
ported programs. 
"(B) The Commissioner shall, in addition to the stipends paid to 
persons under subparagraph (A), pay to the institution of higher 
education at which such person is pursuing his course of study 
such amount as the Commissioner may determine to be consistent with 
the prevailing practices under comparable federally supported pro-
grams not to exceed the equivalent of $4,500 per person per academic 
year or its equivalent, and $1,000 per person per summer session or its 
equivalent, but any amount charged such person for tuition and nonre-
fundable fees and deposits shall be deducted from the amount payable 
to the institution of higher education under this subsection. Any funds 
from grants received under this paragraph which remain after deduct-
ing normal tuition fees, and deposits attributable to such students, 
shall be used by the institution receiving such funds for the purpose of 
improving the program of vocational education offered by that 
institution. 
" (3) The Commissioner shall approve the vocational education lead-
ership development program of an institution of higher education 
only upon finding that— 
"(A) the institution offers a comprehensive program in voca-
tional education with adequate supporting services and disciplines 
such as education administration, guidance and counseling, 
research, and curriculum development; 
"(B) such program is designed to further substantially the 
objective of improving vocational education through providing 
opportunities for graduate training of vocational education teach-
ers, supervisors, and administrators, and of university level voca-
tional education teacher educators and researchers; and 
"(C) such programs are conducted by a school of graduate 
study in the institution of higher education. 
"(4) In order to meet the needs for qualified vocational education 
personnel such as teachers, administrators, supervisors, and teacher 
educators, in vocational education programs in all the States, the Com-
missioner in carrying out this section shall apportion leadership devel-
opment awards equitably among the States, taking into account such 
factors as the State's vocational education enrollments, and the inci-
dence of youth unemployment and school dropouts in the State. 
"(5) Persons receiving leadership awards under the provisions of 
this subsection shall continue to receive the payments provided in 
paragraph (3) only during such periods as the Commissioner finds 
90 STAT. 2204 
PUBLIC LAW 94-482—OCT. 12, 1976 
"Institution of 
higher 
education." 
20 use 1141. 
that they are maintaining satisfactory proficiency in, and devoting 
essentially full time to, study or research in the field of vocational 
education in an institution of higher education, and are not engaging 
in gainful employment, other than part-time employment by such 
institution in teaching, research, or similar activities, approved by the 
Commissioner. 
" (6) From the funds reserved to the Commissioner pursuant to sec-
tion 103 for this part, the Commissioner shall make awards meeting 
the requirements of paragraphs (1) through (5) of this subsection. 
"(7) In approving training and development programs for voca-
tional education personnel, the Commissioner shall give special con-
sideration to programs which are designed to familiarize awardees 
Avith new curricular materials in vocational education. 
"(8) For purposes of this subsection, the term 'institution of higher 
education' means any such institution as defined under section 1201 (a) 
of the Higher Education Act of 1965. 
"(c) (1) In order to meet the need to provide adequate numbers of 
teachers and related classroom instructors in vocational education and 
in order to take full advantage of the education which has been pro-
vided to already certified teachers who are unable to find employment 
in their fields of trainino; and of individuals employed in industry 
who have skills and experiences in vocational fields, the Commissioner 
shall make available fellowships in accordance with the provisions 
of this subsection to such individuals upon his determination that— 
"(A) individuals selected for such fellowships are presently 
certified, or had been so certified within the last ten years, by a 
State as teachers in elementary and secondary schools or in com-
munity and junior colleges, and have past or current skills and 
experiences in vocational fields for which they can be trained to be 
vocational educators; or 
"(B) individuals selected for such fellowships are individuals 
employed in industry (who need not be baccalaureate degree 
holders) who have skills and experiences in vocational fields for 
which there is a need for vocational educators, and that individ-
uals receiving such awards have been accepted by a teacher train-
ing institution in a program to assist those persons in gaining the 
skills to become a vocational educator. 
"(2) (A) The Commissioner shall, for a period not to exceed two 
years, pay to persons selected for fellowships under this subsection 
stipends (including such allowances for subsistence and other expenses 
for such person and their dependents) as he may determine to be 
consistent with prevailing practices under comparable federally sup-
ported programs. 
"(B) The Commissioner shall, in addition to the stipends paid to 
persons under paragraph (1), pay to the institution of hiofher edu-
cation at which such person is pursuing his course of study such 
amount as the Commissioner may determine to be consistent with the 
prevailing practices under comparable federally supported programs 
not to exceed the equivalent of $4,500 per person per academic year 
or its equivalent, and $1,000 per person per summer session or its 
equivalent, but any amount charged such person for tuition and nonre-
fundable fees and deposits shall be deducted from the amount payable 
to the institution of higher education under this subsection. Any funds 
from grants received under this paragraph which remain after deduct-
ing normal tuition, fees, and deposits attributable to such students, 
shall be used by the institution receiving such funds for the purpose 
of improving the program of vocational education offered by that 
institution. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2205 
"(3) The Commissioner shall approve the program at an institution 
of higher education which has as its purpose assisting certified teach-
ers or assisting persons from industry in becoming vocational educa-
tion teachers only upon finding that— 
"(A) the institution offers a comprehensive program in voca-
tional education with adequate supporting services and disciplines 
such as education administration, guidance and counseling, 
research, and curriculum development; and 
"(B) such program is available to persons receiving these fel-
lowships so that they can receive the same type of education and 
training being offered in the institution for undergraduate stu-
dents who are preparing to become vocational education teachers. 
"(4) In order to meet the needs for qualified vocational education 
teachers in vocational education programs in all the States, the Com-
missioner in carrying out this subsection shall apportion fellowships 
equitably among the States, taking into account such factors as the 
State's vocational education enrollments, and the incidence of youth 
unemployment and school dropouts in the State. 
" (5) Persons receiving fellowships under the provisions of this sub-
section shall continue to receive the payments provided in paragraph 
(2) only during such periods as the Commissioner finds that they are 
maintaining satisfactory proficiency in, and devoting essentially full 
time to, study or research in the field of vocational education in an 
institution of higher education, and are not engaging in gainful 
employment, other than part-time employment by such institution in 
teaching, research, or similar activities, approved by the Commissioner. 
"(6) From the funds reserved to the Commissioner pursuant to 
section 103 for this part, the Commissioner shall make awards meeting 
the requirements of paragraphs (1) through (5) of this subsection. 
" (7) In carrying out this subsection, the Commissioner shall, before 
the beginning of each fiscal year, publish a listing of the areas of 
teaching in vocational education which are presently in need of addi-
tional personnel and of the areas which will have need of additional 
personnel in the future; and the Commissioner shall, in making the 
fellowships under the authority of this subsection, grant these fellow-
ships, to the maximum degree possible, to persons who are seeking to 
become teachers in the areas identified by the Commissioner as needing 
additional teachers. 
"Subpart 3—Bilingual Vocational Training 
"STATEMENT OF FINDINGS 
"SEC. 181. The Congress hereby finds that one of the most acute 20 USC 2411. 
problems in the United States is that which involves millions of citi-
zens, both children and adults, whose efforts to profit from vocational 
education are severely restricted by their limited English-speaking 
ability because they came from environments where the dominant 
language is other than English; that such persons are therefore 
unable to help to fill the critical need for more and better educated 
personnel in vital occupational categories; and that such persons are 
unable to make their maximum contribution to the Nation's economy 
and must, in fact, suffer the hardships of unemployment or under-
employment. The Congress further finds that there is a critical short-
age of instructors possessing both the job knowledge and skills and the 
dual language capabilities required for adequate vocational instruc-
tion of such language-handicapped persons and to prepare such per-
sons to perform adequately in a work environment requiring English 
89-194 O—78—Dt. 2 
47 
90 STAT. 2206 
PUBLIC LAW 94-482—OCT. 12, 1976 
language skills, and a corresponding shortage of instructional mate-
rials and of instructional methods and techniques suitable for such 
instruction. 
<
( 
GENERAL RESPONSIBILITIES OF THE 
COMMISSIONER 
20 use 2412. 
"SEC. 182. (a) The Commissioner and the Secretary of Labor 
together shall— 
"(1) develop and disseminate accurate information on the 
status of bilingual vocational training in all parts of the United 
States; 
"(2) evaluate the impact of such bilingual vocational training 
on the shortages of well-trained personnel, the unemployment 
or underemployment of persons with limited English-speaking 
ability, and the ability of such persons to acquire sufficient job 
skills and English language skills to contribute fully to the econ-
omy of the United States; and 
Report to 
(3) report their findings annually to the President and the 
President and 
Congress. 
Congress. 
"(b) The Commissioner shall consult with the Secretary of Labor 
with respect to the administration of this part. Regulations and guide-
lines promulgated by the Commissioner to carry out this part shall 
be consistent with those promulgated by the Secretary of Labor pursu-
ant to section 301 (b) of the Comprehensive Employment and Training 
29 use 871. 
Act of 1973 and shall be approved by the Secretary of Labor before 
issuance. 
"AUTHORIZATION or APPROPRIATIONS 
20 use 2413. 
"SEC. 183. There are authorized to be appropriated $60,000,000 for 
the fiscal year ending September 30. 1978, $70,000,000 for the fiscal 
year ending September 30,1979, $80,000,000 for the fiscal year ending 
September 30, 1980, $90,000,000 for the fiscal year ending Septem-
ber 30, 1981, and $80,000,000 for the fiscal year ending September 30, 
1982, to carry out the provisions of sections 184, 186, and 188 of this 
part, except that 65 per centum of such amounts shall be available only 
for grants and contracts under section 184, 25 per centum shall be 
available only for grants and contracts under section 186, and 10 per 
centum shall be available only for grants and contracts under section 
188. 
"AUTHORIZATION or GRANTS 
20 use 2414. 
"SEC. 184. (a) From the sums made available for grants under this 
section pursuant to section 183, the Commissioner is authorized to make 
grants to and enter into contracts with appropriate State agencies, 
local educational agencies, postsecondary education institutions, pri-
vate nonprofit vocational training institutions, and to other nonprofit 
organizations especially created to serve a group whose language as 
normally used is other than English in supplying training in recog-
nized occupations and in new and emerging occupations, which shall 
include instruction in the English language designed to insure that 
participants in the training will be assisted to pursue such occupations 
in environments w^here English is the language normally used, and to 
enter into contracts with private for-profit agencies and organizations, 
to assist them in conducting bilingual vocational training programs 
for persons of all ages in all communities of the United States which 
are designed to insure that vocational training programs are available 
to all individuals who desire and need such bilingual vocational 
education. 
PUBLIC LAW 94-462—OCT. 12, 1976 
90 STAT. 2201 
"(b) The Commissioner shall pay to each applicant which has an 
application approved under section 189B an amount equal to the total 
sums expended by the applicant for the purposes described in section 
185 and set forth in that application. 
u 
USE OF FEDERAL FUNDS 
"SEC. 185. Grants and contracts under section 184 may be used, in 20 USC 2415, 
accordance with applications approved under section 189B, for— 
"(1) bilingual vocational training programs for persons who 
have completed or left elementary or secondary school and who 
are available for education by a postsecondary educational 
institution; 
"(2) bilingual vocational training programs for persons who 
have already entered the labor market and who desire or need 
training or retraining to achieve year-i-ound employment, 
adjust to changing manpoAver needs, expand their range of skills, 
or advance in employment; and 
"(3) training allowances for participants in bilingual voca-
tional training programs subject to the same conditions and lim-
itations as are set forth in section 111 of the Comprehensive 
Employment and Training Act of 1973. 
29 USC 821. 
u 
AUTHORIZATION OF GRANTS FOR INSTRUCTOR ITJAINING PROGRAMS 
"SEC. 186. (a) From the sums made available for grants and con- 20 USC 2416. 
tracts under this^ection pursuant to section 183, the Commissioner is 
authorized to make grants to and enter into contracts with States, 
or educational institutions, either public or private, to assist them in 
conducting training for instructors of bilingual vocational training 
programs, and whenever the Commissioner determines that it will 
contribute to carrying out the purposes of this part, to make grants to, 
and enter into contracts with, States or educational institutions either 
public or private, to assist them in conducting training for instructors 
in bilingual vocational education programs. 
"(b) The Commissioner shall pay to each applicant which has an 
application approved under section 189B an amount equal to the total 
sums expended by the applicant for the purposes described in section 
187 and set forth in that application. 
" U S E 
O F 
F E D E R A L 
FUNDS 
"SEC. 187. Grants and contracts under section 186 may be used, in 20 USC 2417. 
accordance with applications approved under section 189B, for— 
" (1) providing preservice training designed to prepare persons 
to participate in bilingual vocational training or vocational edu-
cation programs as instructors, aides, or other ancillary personnel 
such as counselors, and inservice and development programs 
designed to enable such personnel to continue to improve their 
qualifications while participating in such programs; and 
"(2) fellowships or traineeships for persons engaged in such 
preservice or inservice training. 
" A U T H O R I Z A T I O N 
O F GRANTS FOR DEVELOPMENT OF INSTRUCTIONAL 
MATERIALS, METHODS, AND TECHNIQUES 
"SEC. 188. (a) From the sums made available for grants and con- 20 USC 2418. 
tracts under this section pursuant to section 183, the Commissioner is 
authorized to make grants and enter into contracts with States, public 
90 STAT. 2208 
PUBLIC LAW 94-482—OCT. 12, 1976 
and private educational institutions, and to other appropriate non-
profit organizations, and to enter into contracts with private for-profit 
individuals and organizations, to assist them in developing instruc-
tional material, methods, or techniques for bilingual vocational 
training. 
"(b) The Commissioner shall pay to each applicant which has an 
application approved under section 189B an amount equal to the total 
sums expended by the applicant for the purposes described in section 
189 and set forth in that application. 
"USE OF FEDERAL FUNDS 
20 use 2419. 
"SEC. 189. Grants and contracts under section 188 may be used, in 
accordance with applications approved under section 189B, for— 
"(1) research in bilingual vocational training; 
"(2) training programs designed to familiarize State agencies 
and training institutions with research findings and successful 
pilot and demonstration projects in bilingual vocational training; 
"(3) experimental, developmental, and pilot programs and 
projects designed to test the effectiveness of research findings; and 
"(4) other demonstration and dissemination projects. 
"APPLICATIONS 
20 use 2420. 
"SEC. 189A. (a) A grant or contract for assistance under this part 
may be made only upon application to the Commissioner at such time, 
in such manner, and containing or accompanied by such information 
as the Commissioner deems necessary. Each such application shall— 
" (1) provide that the activities and services for which assistance 
under this part is sought will be administered by or under the 
supervision of the applicant; 
"(2) (A) in the case of assistance under section 184, set forth a 
program for carrying out the purposes described in section 185, 
"(B) in the case of assistance under section 186, set forth a pro-
gram for carrying out the purposes described in section 187, and 
"(C) in the case of assistance under section 188, set forth a pro-
gram for carrying out the purposes described in section 189; 
"(3) in the case of assistance under section 184, set forth a pro-
gram of such size, scope, and design as will make a substantial 
contribution toward carrying out the purposes of this part; 
" (4) in the case of assistance under section 186— 
"(A) describe the capabilities of the applicant institution, 
including a listing of the vocational training or vocational 
education courses offered by that institution, together with 
appropriate accreditation by regional or national associations, 
if any, and approval by appropriate State agencies of the 
course offered, 
"(B) set forth the qualifications of the principal staff who 
will be responsible for the training program, and 
"(C) contain a statement of the minimum qualifications of 
the persons to be enrolled in the training program, a descrip-
tion of the selection process for such persons, and the amounts 
of the fellowships or traineeships, if any, to be granted to 
persons so enrolled; and 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2209 
"(5) in the case of assistance under section 188, set forth the 
qualifications of the staff who will be responsible for the program 
for which assistance is sought. 
"(b) No grant or contract may be made under section 184 directly 
to a local educational agency or a postsecondary educational institu-
tion or a private vocational training institution or any other eligible 
agency or organization unless that agency, institution, or organization 
has submitted the application to the State board established under sec-
tion 104 of this Act, or in the case of a State that does not have such 
a board, the similar State agency, for comment and includes the com-
ment of that board or agency with the application. 
"APPLICATION APPROVAL BY THE COMMISSIONER 
"SEC. 189B. (a) The Commissioner may approve an application for 20 USC 2421. 
assistance under this subpart only if— 
"(1) the application meets the requirements set forth in subsection 
(a) of the previous section; 
" (2) in tne case of an application submitted for assistance under sec-
tion 184 to an agency, institution, or organization other than the State 
board established under section 104 of this Act, the requirement of sub-
section (b) of the previous section is met; 
"(3) in the case of an application submitted for assistance under 
section 184 or section 186 the Commissioner determines that the pro-
gram is consistent with criteria established by him, where feasible, 
after consultation with the State board established under section 104 
of this Act, for achieving equitable distribution of assistance under 
this subpart within that State; and 
"(4) in the case of an application submitted for assistance under 
section 186 the Commissioner determines that the applicant institution 
actually has an ongoing vocational training program in the field for 
which persons are being trained; and that the applicant institution 
can provide instructors with adequate language capabilities in the 
language other than English to be used in the bilingual job training 
program for which the persons are being trained. 
"(b) An amendment to an application shall, except as the Commis-
sioner may otherwise provide, be subject to approval in the same 
manner as the original application. 
"Subpart 4—Emergency Assistance for Remodeling and Eenovation 
of Vocational Education Facilities 
"PURPOSE 
"SEC. 191. It is the purpose of this part to provide emergency assist- 20 USC 2441. 
ance, for a limited period of time, to local educational agencies in 
urban and rural areas which are unable to provide vocational educa-
tion designed to meet today's manpower needs due to the age of their 
vocational education facilities or the obsolete nature of the equipment 
used for vocational training, in order to assist such agencies in the 
modernization of facilities and equipment and the conversion of aca-
demic facilities necessary to assure that such facilities will be able to 
offer vocational eductation programs which give reasonable promise of 
of employment, including the remodeling and renovation of such 
facilities to make the facilities comply with the requirements of the 
Act of August 2,1968, commonly known as the Architectural Barriers 
Act of 1968. 
42 USC 4151. 
90 STAT. 2210 
PUBLIC LAW 94-482—OCT. 12, 1976 
u 
AUTHORIZATION OF APPROPRIATIONS 
20 use 2442. 
"SEC. 192. There are authorized to be appropriated $25,000,000 for 
fiscal year 1978, $50,000,000 for fiscal year 1979, $75,000,000 for fiscal 
year 1980, and $100,000,000 for fiscal year 1981, to carry out the 
purpose of this part. 
"APPLICATIONS 
20 use 2443. 
"SEC. 193. (a) Any local educational agency desiring to receive 
assistance under this subpart shall submit to the Commissioner, 
through its State board, an application therefor, which application 
shall set forth— 
" (1) a description of the facility to be remodeled or renovated, 
including the date of construction of such facility and the extent 
of reconstruction necessary to enable such facility to provide a 
modern program of vocational education; 
"(2) a description of the equipment to be replaced or modern-
ized with the assistance of funds made available under this 
subpart; 
"(3) a description of the extent to which the modernization or 
conversion of facilities and equipment, if assisted with funds made 
available under this subpart, would be consistent with, and 
further the goals of, the five-year State plan developed pursuant 
to section 107; 
"(4) the financial ability of the local educational agency to 
undertake such modernization without Federal assistance; 
"(5) assurances that the facility to be remodeled or renovated 
will meet standards adopted pursuant to the Act of August 12, 
1968; 
"(6) the extent of State and local funds available to match 
Federal funds made available under this subpart, together 
with the sources and amounts of such funds; 
" (7) such other information as the State board determines to be 
appropriate; and 
"(8) such other information as the Commissioner may require 
by regulation. 
"(b) In approving applications submitted under this subpart, 
the Commissioner shall apply only the following criteria: 
"(1) the need for such assistance, taking into account such 
factors as— 
"(A) the age and obsolescence of the facilities and equip-
ment for which emergency modernization assistance is sought, 
"(B) the rate of youth unemployment in the labor market 
\ 
area served by the local educational agency, 
\ 
"(C) the number of youth aged seventeen through twenty-
one residing in the labor market area served by the local 
educational agency who are unemployed, and 
"(D) the percentage such youth represent, as compared 
with the vocational education enrollment in the local educa-
tional agency, 
"(E) the ability of the facility to comply with the stand-
ards adopted pursuant to the Act of August 12, 1968 (42 
IT.S.C. 4151^156), commonly known as the Architectural 
Barriers Act of 1968; and 
"(2) the degree to which the modernization of facilities and 
equipment proposed in the application afford promise of achiev-
PUBLIC LAW 94-4«2—OCT. 12, 1976 
90 STAT. 2211 
ing the goals set forth in the five-year State plan developed 
pursuant to section 107. 
"(c) The Commissioner shall rank all approved applications 
according to their relative need for assistance and, except as provided 
in subsection (d), shall pay, from sums appropriated for this part, 
75 per centum of the cost of such approved applications, until such 
appropriation shall be exhausted. 
"(d) The Commissioner shall consult with the Administrator of Consultation. 
General Services and the Architectural and Transportation Barriers 
Compliance Board to determine whether the proposed remodeling or 
renovation will meet standards adopted pursuant to the Act of 
August 12, 1968, commonly known as the Architectural Barriers Act 
of 1968. 
"(e) Upon a finding, in writing, that a local educational agency with 
an approved application is suifering from extreme financial need and 
would not, because of the limitation of Federal financial assistance to 
75 per centum of the cost of the approved project, be able to participate 
in the program authorized by this subpart, the Commissioner may 
waive such limitation and may pay the full cost of the approved 
project. 
"PAYMENT 
42 use 4151. 
Waiver. 
"SEC. 194. (a) Upon his approval of an application for assistance 
under this subpart, the Commissioner shall reserve from the appro-
priation available therefor the amount required for the payment of 
the Federal share of tlie cost of such application as determined under 
subsection (c) or (d) of section 193. 
"(b) The Commissioner shall pay to the applicant such reserved 
amount, in advance or by way of reimbursement, and in such install-
ments consistent Avith established practice, as he may determine. 
"PART C—DEFINITIONS 
20 use 2444. 
u 
DEFINITIONS 
"SEC. 195. As used in this Act— 
"(1) The term 'vocational education' means organized educational 
programs which are directly related to the preparation of individuals 
for paid or unpaid employment, or for additional preparation for a 
career requiring other than a baccalaureate or advanced degree; 
and, for purposes of this paragraph, the term 'organized education 
program' means only (A) instruction related to the occupation or 
occupations for which the students are in training or instruction neces-
sary for students to benefit from such training, and (B) the acquisi-
tion, maintenance, and repair of instructional supplies, teaching aids 
and equipment; and the term 'vocational education' does not mean 
the construction, acquisition or initial equipment of buildings, or the 
acquisition or rental of land. 
"(2) The term 'area vocational education school' means— 
"(A) a specialized high school used exclusively or principally 
for the provision of vocational education to persons who are 
available for study in preparation for entering the labor market, 
or 
"(B) the department of a high school exclusively or princi-
pally used for providing vocational education in no less than five 
different occupational fields to persons who are available for study 
in preparation for entering the labor market, or 
20 use 2461. 
90 STAT. 2212 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(C) a technical or vocational school used exclusively or prin-
cipally for the provision of vocational education to persons who 
have completed or left high school and who are available for study 
in preparation for entering the labor market, or 
"(D) the department or division of a junior college or com-
munity college or university operating under the policies of the 
State board and which provides vocational education in no less 
than five different occupational fields, leading to immediate 
employment but not necessarily leading to a baccalaureate degree, 
if it is available to all residents of the State or an area of the 
State designated and approved by the State board, and if, in the 
case of a school, department, or division described in (C) or (D), 
if it admits as regular students both persons who have completed 
high school and persons who have left high school. 
"(3) The term 'school facilities' means classrooms and related 
facilities (including initial equipment) and interests in lands on 
which such facilities are constructed. Such term shall not include 
any facility intended primarily for events for which admission is to 
be charged to the general public. 
"(4) The term 'construction' includes construction of new build-
ings and acquisition, expansion, remodeling, and alteration of existing 
buildings, and includes site grading and improvement and architect 
j fees. 
"(5) The term 
'Commissioner' means the Commissioner of 
-- 
Education. 
"(6) The term 'Secretary' means the Secretary of Health, Educa-
tion, and Welfare. 
"(7) The term 'handicapped', when applied to persons, means per-
sons who are mentally retarded, hard of hearing, deaf, speech 
impaired, visually handicapped, seriously emotionally disturbed, crip-
pled, or other health impaired persons who by reason thereof require 
special education and related services, and who, because of their handi-
capping condition, cannot succeed in the regular vocational education 
r" 
program without special education assistance or who require a modi-
fied vocational education program. 
"(8) The term 'State' includes, in addition to the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, and the Trust Territory of 
the Pacific Islands. 
"(9) The term 'State board' means a State board designated or 
created by State law as the sole State agency responsible for the admin-
istration of vocational education, or for supervision of the adminis-
tration of vocational education in the State. 
"(10) The term 'local educational agency' means a board of educa-
tion or other legally constituted local school authority having adminis-
trative control and direction of public elementary or secondary schools 
in a city, county, township, school district, or political subdivision in a 
State, or any other public educational institution or agency having 
administrative control and direction of a vocational education 
program. 
"(11) The term 'State educational agency' 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 
Governor or by State law, 
"(12) The term 'postsecondary educational institution' means a 
nonprofit institution legally authorized to provide postsecondary edu-
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2213 
cation within a State for persons sixteen years of age or older, who 
have graduated from or left elementary or secondary school. 
"(13) The term'eligible recipient'means a local educational agency 
or a postsecondary educational institution. 
"(14) The term 'National Advisory Council' means the Js'ational 
Advisory Council on Vocational Education continued under section 
162. 
"(15) The term 'industrial aits education programs' means those 
education programs (A) which pertain to the body of related subject 
matter, or related courses, organized for the development of under-
standing about all aspects of industry and technology, including 
learning experiences involving activities such as experimenting, 
' 
designating, constructing, evaluating, and using tools, machines, 
materials, and processes and (B) which assist individuals in the 
making of informed and meaningful occupational choices or which 
prepare them for entry into advanced trade and industrial or technical 
education programs. 
"(16) The term 'disadvantaged' means persons (other than handi-
capped persons) who have academic or economic handicaps and who 
require special services and assistance in order to enable them to suc-
ceed in vocational education programs, under criteria developed by 
the Commissioner based on objective standards and the most recent 
available data. 
^-
" (17) The term 'low-income family or individual' means such fami-
lies or individuals who are determined to be low-income according to 
the latest available data from the Department of Commerce. 
"(18) The term 'cooperative education' means a program of voca-
tional education for persons who, through written cooperative 
arrangements between the school and employers, receive instruction, 
including required academic courses and related vocational instruction 
by alternation of study in school with a job in any occupational field, 
but these two experiences must be planned and supervised by the school 
and employers so that each contributes to the student's education and 
to his or her employability. Work periods and school attendance may 
be on alternate half days, full days, weeks, or other periods of time in 
fulfilling the cooperative program. 
" (19) The term 'curriculum materials' means materials consisting of 
a series of courses to cover instruction in any occupational field which 
are designed to prepare persons for employment at the entry level or 
to upgrade occupational competencies of those previously or presently 
employed in any occupational field. 
" (20) For the purposes of this Act, the term 'administration' means 
activities of a State necessary for the proper and efficient performance 
of its duties under this Act, including supervision, but not including 
ancillary services." 
RELATED AMENDMENTS 
SEC. 203. (a)(1) Section 107(a)(2)(A) of the Comprehensive 
; 
Employment and Training Act of 1973 is amended by redesignating 29 USC 817. 
clauses (iii) through (vii) (and any cross references thereto) as 
clauses (iv) through (viii) respectively, and by inserting immediately 
after clause (ii) the following new clause: 
"(iii) one representative of the State Advisory Council on 
Vocational Education created pursuant to section 105 of the 
Vocational Education Act of 1963;". 
Ante, p. 2174. 
(2) Section 107(b) of the Comprehensive Employment and Train-
ing Act of 1973 is amended by adding at the end thereof a new para-
graph (4) to read as follows: 
90 STAT. 2214 
PUBLIC LAW 94-4e2~0CT. 12, 1976 
"(4)(i) identify, after consultation with the State Advisory 
Council on Vocational Education, the employment and training 
and vocational education needs of the State and assess the extent 
to which employment training, vocational education, vocational 
rehabilitation, and other programs assisted under this and related 
Acts represent a consistent, integrated, and coordinated approach 
to meeting such needs; and (ii) comment at least once annually, 
on the reports of the State Advisory Council on Vocational 
Education, which comments shall be included in the annual report 
submitted by the Council pursuant to this section and in the 
annual report submitted by the State Advisory Council pursuant 
Ante, p. 2174. 
to section 105 of the Vocational Education Act of 1963.". 
(b) (1) Section 502(a) of the Comprehensive Employment and 
29 use 952. 
Training Act of 1973 is amended by striking out "eleven members" 
in paragraph (2) and inserting in lieu thereof "ten members", by 
redesignating such paragraph (2) (andany cross reference thereto) as 
paragraph (3), and by inserting immediately after paragraph (1) 
the following new paragraph: 
"(2) a representative of the National Advisory Council on 
Vocational Education created pursuant to section 162 of the 
Vocational Education Act of 1963; and". 
(2) Section 503 of the Comprehensive Employment and Training 
29 use 953. 
Act of 1973 is amended by striking out "and" after paragraph (4), 
redesignating paragraph (5) (and any cross reference thereto) as 
paragraph (6), and by inserting immediately after paragraph (4) the 
following new paragraph: 
" (5) (i) identify, after consultation with the National Advisory 
Council on Vocational Education, the employment and training 
and vocational education needs of the Nation and assess the extent 
to which employment training, vocational education, vocational 
rehabilitation, and other programs assisted under this and related 
Acts represent a consistent, integrated, and coordinated approach 
to meeting such needs; and (ii) comment, at least once annually, 
on the reports of the National Advisory Council on Vocational 
Education, which comments shall be included in one of the reports 
submitted by the National Commission pursuant to this section 
and in one of the reports submitted by the National Advisory 
Council on Vocational Education pursuant to section 162 of the 
Ante, p. 2199. 
Vocational Education Act of 1963; and". 
EFFECTIVE DATES AND REPEALERS 
20 use 1242 
SEC. 204. (a)(1) Section 201 shall be effective upon date of 
20 use 2301 
(2) Sections 202 and 203 shall be effective on October 1, 1977, 
note; 29 use 817 except that— 
°°*®" 
(A) the amendments made by the revised section 102(d) (relat-
20 use 2302 
in^ to an authorization of appropriations for planning) and sec-
note, 2307 note. 
^ion 107 (relating to planning during fiscal year 1977) shall be 
effective upon enactment, and 
20 use 2303 
(B) the amendments made by section 103(a)(1) (relating to 
note, 2391 note. 
reserving funds for the National Occupational Information 
Coordinating Committee) and section 161 (relating to the 
national vocational education data reporting and accounting sys-
tem and the National Occupational Information Coordinating 
Committee and similar State committees) shall be effective upon 
enactment. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2215 
(b) Upon the effective date of section 202, individuals who are mem-
bers of the State advisory councils on vocational education may con-
tinue to serve for the terms for which they were appointed, except that 
no such member may serve for more than two fiscal years after such 
effective date unless reappointed pursuant to the amendments con-
tained in that section. 
(c) Effective October 1, 1977, there are hereby repealed— 
(1) title V, part F of the Education Professions Development 
Act. 
(2) title X, part B of the Higher Education Act, and 
(3) section 1071 of the Higher Education Act. 
TITLE III—EXTENSIONS AND KEVISIONS OF OTHER 
EDUCATION PROGRAMS 
PART A—EXTENSION AND REVISION OF RELATED PROGRAMS 
20 use 2301 
note. 
Repeals. 
20 use 
1119c-1119c-4. 
20 use 
1135b-1135b-9. 
20 use 1135c. 
EXTENSION o r TITLE III OF THE NATIONAL DEFENSE EDUCATION ACT OF 1958 
SEC. 301. (a) The first sentence of section 301 of the National 
Defense Education Act of 1958 is amended by striking out "June 30, 
1977" and inserting in lieu thereof "September 30,1978". 
(b) The second sentence of such section is amended by striking out 
"July 1, 1977" and inserting in lieu thereof "October 1, 1978". 
20 use 441. 
E X T E N S I O N AND REVISION OF TITLE VI OF THE NATIONAL DEFENSE 
EDUCATION ACT OF 1958 
SEC. 302. (a) The heading of title VI of the National Defense Edu-
cation Act of 1958 is amended to read as follows: "TITLE VI—FOR-
EIGN STUDIES AND LANGUAGE DEVELOPMENT". 
(b) Title VI of the National Defense Education Act of 1958 is 
amended by redesignating section 603 as section 604 and by inserting 
after section 602 the following new section: 
"GRANT PROGRAM TO PROMOTE CULTURAL UNDERSTANDING 
"SEC. 603. (a) The Congress finds that— 
"(1) the well-being of the LFnited States and its citizens is 
affected by policies adopted and actions taken by, or with respect 
to, other nations and areas; and 
"(2) the United States must afford its citizens adequate access 
to the information which will enable them to make informed 
judgments with respect to the international policies and actions 
of the United States. 
It is, therefore, the purpose of this section to support educational pro-
grams which will increase the availability of such information to 
students in the United States. 
"(b) The Commissioner is authorized, by grant or contract, to stimu-
late locally designed educational programs to increase the understand-
ing of students in the United States about the cultures and actions of 
other nations in order to better evaluate the international and domestic 
impact of major national policies. 
(c) Grants or contracts under this section— 
"(1) may be made to any public or private agency or organiza-
tion, including, but not limited to, institutions of higher education. 
State and local educational agencies, professional associations, 
educational consortia, and organizations of teachers; 
20 use 512a. 
90 STAT. 2216 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(2) may include assistance for in-service training of teachers 
and other education personnel, the compilation of existing infor-
mation and resources about other nations in forms useful to vari-
ous types of educational programs, and the dissemination of 
information and resources to educators and educational officials 
upon their request, but shall not be used for the development of 
new curriculums or the acquisition of equipment or remodeling 
of facilities; and 
"(3) may be made for projects and programs at all levels of 
^ 
education, and may include projects and programs carried on as 
part of community, adult, and continuing education programs.". 
20 use 513. 
(c) Section 604 of such Act (as so redesignated by subsection (b) 
of this section) is amended by striking out everything after 
"$75,000,000" and inserting in lieu thereof the following: "for each 
fiscal year ending prior to October 1,1977, to carry out the provisions 
of this title, except that no funds shall be made available in any fiscal 
year for carrying out programs under section 603 until at least 
$15,000,000 has been made available in such fiscal year for carrying out 
the provisions of sections 601 and 602.". 
20 use 512. 
(d) Section 602 of such Act is amended by adding in the first sen-
tence, after "directly or by", the following: "grant or". 
EXTENSION OF THE INTERNATIONAL EDUCATION ACT OF 1966 
20 use 1176. 
SEC. 303. Section 105 (a) of the International Education Act of 1966 
is amended to read as follows: 
"SEC. 105. (a) There are authorized to be appropriated $10,000,000 
for fiscal year 1977, for the purpose of carrying out the provisions of 
this title.". 
PART B—OTHER EDUCATION PROGRAMS 
EXTENSION 
A N D REVISION OF THE EMERGENCY SCHOOL AID ACT 
20 use 1603. 
SEC. 321. (a) Section 704(a) of the Emergency School Aid Act is 
amended by inserting after "1976" a comma and the following: "and 
$1,000,000,000 for the period beginning July 1,1976, and ending Sep-
tember 30, 1979, except that of the sums available under section 708 
(a), the Assistant Secretary is limited in the use of such sums to an 
amount, not more than 5 percent, which may be used for providing 
compensatory services to students who had previously received such 
services funded in whole or in part under title I of the Elementary 
and Secondary Education Act of 1965, but who are no longer receiving 
such services as a result of attendance area changes under a desegrega-
tion order or plan issued after August 21,1974". 
(b) Section 704 of the Emergency School Aid Act is amended by 
inserting "(b)" immediately before "From" and by inserting at the 
end thereof the following: 
Appropriation 
" (c) There are authorized to be appropriated, in addition to the sums 
authorization. 
authorized under subsection (a) of this section, $50,000,000 for fiscal 
year 1977, and $100,000,000 for fiscal year 1978, for the purpose of 
carrying out section 708(a), relating to special programs and projects. 
The provisions of section 705, relating to apportionment among the 
States, shall not apply to sums appropriated pursuant to this 
subsection.". 
(c) (1) Section 704 of the Emergency School Aid Act is amended 
by adding at the end thereof (following the subsection added by sub-
section (b) of this section) the following new subsection: 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2217 
20 use 1606. 
20 use 1619. 
'Magnet school.,' 
"(d) There are authorized to be appropriated in addition to the 
Appropriation 
sums authorized under subsection (a) of this section $25,000,000 for 
authorization, 
fiscal year 1977 and $50,000,000 for fiscal year 1978, for the purpose of 
carrying out activities specified in paragraphs (13) through (15) of 
section 707(a) of this Act. The provisions of section 705, relating to 
apportionment among the States, shall not apply to sums appropriated 
pursuant to this subsection.". 
(2) Section 707(a) of such Act is amended by adding after para-
graph (12) of such section the following new paragraphs: 
"(13) Planning and design of, and conduct of programs in, 
magnet schools. 
" (14) The pairing of schools and programs with specific colleges 
and universities and with leading businesses. 
"(15) The development of plans for neutral site schools.". 
(3) Section 720 of such Act is amended— 
(A) by inserting after paragraph 
(8) the following new 
paragraph: 
"(9) The term 'magnet school' means a school or education center 
that offers a special curriculum capable of attracting substantial num-
bers of students of different racial backgrounds.": 
(B) by redesignating paragraphs (9) and (10) as paragraphs 
(10) and (11), respectively; 
(C) by inserting after paragraph (11) (as redesignated by this 
paragraph) the following: 
"(12) The term 'neutral site school' means a school that is located so 
as to be accessible to substantial numbers of students of different racial 
backgrounds."; and 
(D) by redesignating paragraphs (11), (12), (13), (14), and 
(15) as paragraphs (13), (14), (15), (16), and (17), respectively. 
(d) Section 716(b) of the P^mergency School Aid Act is amended 
by striking out "September 30, 1976" and inserting in lieu thereof 
"September 30, 1979". 
EXTENSION OF THE ALLEN J. ELLENDER FELLOWSHIP PROGRAM 
SEC. 322. Section 5 of the joint resolution approved October 19,1972 
(Public Law 92-506; 86 Stat. 908), relating to the Allen J. Ellender 
fellowship program, is amended by striking out "two" and by insert-
ing after "years" the following: "ending prior to October 1, 1976, 
$750,000 for each of the fiscal years 1977 and 1978, and $1,000,000 for 
fiscal year 1979 and for each of the fiscal years ending prior to 
October 1,1982". 
MAINTENANCE OF EFFORT 
SEC. 323. (a) (1) Section 143(c) (2) of the Elementary and Second-
ary Education Act of 1965 is amended by inserting "per student or 
20 USe 241g. 
the aggregate expenditures" immediately after "combined fiscal effort" 
each time that term occurs. 
(2) Section 307 (e) of such Act is amended by inserting "per student 
20 USe 845. 
or the aggregate expenditures" after "fiscal effort" each time that 
term occurs. 
(3) Section 403(a) (11) of such Act is amended to read as follows: 
20 USe 1803. 
"(11) gives satisfactory assurance that the aggregate amount 
to be expended per student or the aggregate expenditure by the 
State, its local educational agencies, and private schools in such 
State from funds derived from non-Federal sources for pro-
grams described in section 421(a) and section 431(a) for the pre- 20 USe 1821, 
^ ^ 
^ 
1831. 
"Neutral site 
school." 
20 use 1615. 
90 STAT. 2218 
PUBLIC LAW 94-482—OCT. 12, 1976 
ceding fiscal year were not less than the amount per student 
expended or the aggregate expenditure for the second preceding 
year.". 
20 use 1206. 
(4) Section 307(b) of the Adult Education Act is amended to read 
as follows: 
"(b) No payment shall be made to any State from its allotment 
for any fiscal year unless the Commissioner finds that the fiscal effort 
per student or the amount available for expenditure by such State for 
adult education from non-Federal sources for the preceding fiscal year 
was not less than such fiscal effort per student or such amount avail-
able for expenditure for such purposes from such sources during the 
second preceding fiscal year, but no State shall be required to use its 
funds to supplant any portion of the Federal share.". 
20 use 1609. 
(5) Section 710(a) (13) of the Emergency School Aid Act is 
amended to read as follows: 
"(13) provides that the applicant has not reduced its fiscal 
effort per student or the aggregate expenditure for the provision 
,; 
of free public education for children in attendance at the school 
of such agencv for the fiscal year for which assistance is sought 
under this title to less than that of the second preceding fiscal 
year;". 
(b) The General Education Provisions Act is amended by inserting 
after section 431 the following new section: 
(( 
MAINTENANCE OF EFFORT DETERMINATION 
20 use 1232-1. 
"SEC. 431A. (a) (1) In prescribing regulations for carrying out the 
requirements of section 403(a) (11) of the Elementary and Secondary 
20 use 1803, 
Education Act of 1965 and section 307 (b) of the Adult Education Act, 
1206. 
the Commissioner shall— 
"(A) determine the amount so expended on the basis of per 
pupil or aggregate expenditures; 
"(B) prescribe that the requirement for each such section is met 
for any fiscal year for which notification is given under subpara-
graph (C) if, for such year, the fiscal effort per student or 
the amount expended is not less than the allowable percentage 
reduction for that agency from its fiscal effort per student or the 
amount expended by that agency in its base year; and 
"(C) requires that each agency intending to use the provisions 
of this section shall notify the Commissioner. 
"(2) For purposes of paragraph (1) (B) of this subsection— 
"(A) an agency's base year for the period in which such para-
graph is effective shall be the fiscal year determined by that agency 
to be such base year in the first fiscal year for which such notifica-
tion is given by that agency, except that such base year so deter-
mined shall be— 
"(i) the fiscal year preceding such fiscal year for which 
notification is given; or 
"(ii) the second fiscal year preceding such year of notifica-
tion; and 
"(B) an agency's allowable percentage reduction for any fiscal 
f 
year shall be a percentage reduction from the fiscal effort per 
student or the amount expended in its base year determined by 
that agency which, when added to the sum of any such percentage 
reductions previously determined by that agency for purposes of 
paragraph (1) (B), does not exceed 5 percent. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2219 
20 use 1803, 
1206. 
"(b)(1)(A) In any case in which exceptional circumstances exist, 
the Commissioner may, in accordance with the provisions of this sub-
paragraph, waive, for any fiscal year, the requirement of section 
403(a) (11) of the Elementary and Secondary Education Act of 
1965, of section 307 (b) of the Adult Education Act, and of this section, 
if he determines such waiver to be equitable in order to reflect such 
circumstances, including those resulting from decreasing enrollments 
or fiscal resources of the relevant local educational agency, or the 
State, or both. In any case in which a waiver under this subparagraph 
is granted, the Commissioner shall reduce the amount of the Federal 
payment for the current fiscal year in the exact proportion to which the 
fiscal effort per student or the amount expended was less than 100 
percent for the second preceding fiscal year as required by section 
403(a) (11) of the Elementary and Secondary Education Act of 1965, 
and by section 307 (b) of the Adult Education Act. 
"(13) In any case in which very exceptional circumstances exist, 
the Commissioner may waive, for any fiscal year, the requirement 
of section 403(a) (11) of the Elementary and Secondary Education 
Act of 1965, of section 307 (b) of the Adult Education Act, and of this 
section, if he determines such waiver to be equitable in order to re-
flect such circumstances, including those resulting from decreasing 
enrollments or fiscal resources of the relevant local educational 
agency, or the State, or both. 
"(2) (A) In any case in which exceptional circumstances exist with 
respect to a local educational agency, the Commissioner may, in 
accordance with the provisions of this subparagraph, waive, for one 
fiscal year only with respect to such local educational agency, the 
requirement of section 143(c) (2) of the Elementary and Secondary 
Education Act of 1965 if he determines such waiver to be equitable 20 USC 241g. 
in order to reflect such circumstances, including those resulting from 
decreasing enrollments or fiscal resources of the relevant local educa-
tional agency or the State, or both. In any case in which a waiver 
under this subparagraph is granted, the Commissioner shall, for one 
fiscal year only, reduce the amount of the Federal payment for the 
current fiscal year in the exact proportion to which the fiscal effort 
per student of that agency or the amount expended by that agency 
was less than 100 percent for the second preceding fiscal year as 
required by section 143(c)(2) of the Elementary and Secondary 
Education Act of 1965. 
"(B) In any case in which very exceptional circumstances exist 
with respect to a local educational agency, the Commissioner may 
waive for one fiscal year only, with respect to such local educational 
agency the requirement of section 143(c) (2) of the Elementary and 
Secondary Education Act of 1965 if he determines such waiver to be 
equitable in order to reflect such circumstances, including those from 
decreasing enrollments or fiscal resources of such local educational 
agency. 
"(3) The Commissioner shall establish objective criteria of general 
applicability to carry out the waiver authority contained in this 
subsection, 
"(c) This section shall be effective with respect to each requirement Effective date, 
to which it applies, during the period which begins on the date of the 
enactment of the Education Amendments of 1976, and ends on the 
date of termination of the program to which the requirement applies. 
For purposes of the preceding sentence, a program shall be considered 
to terminate on September 30 of the fiscal year, if any, during which 
such program is automatically extended pursuant to section 414 of the 
General Education Provisions Act.". 
20 USC 1226a. 
90 STAT. 2220 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 
use 
1806. 
20 
use 
1866. 
PARTICIPATION 
OF NONPUBLIC 
SCHOOL 
CHILDREN 
SEC. 324. Section 406(e) of the Elementary and Secondary Educa-
tion Act of 1965 is amended by inserting after "he" the following, 
"may waive such requirements and". 
W O M E N ' S EDUCATIONAL EQUITY 
SEC. 325. (a) The first sentence of section 408(f) (1) of the Educa-
tion Amendments of 1974 (the Women's Educational Equity Act of 
1974) is amended by striking out "an" and inserting in lieu thereof "a 
National". 
(b) Section 408(f)(3) of the Education Amendments of 1974 is 
amended.— 
(1) by striking out "and" at the end of clause (C) of such 
section, 
(2) by striking out the period at the end of clause (D) and 
inserting in lieu thereof a semicolon, and 
(3) by inserting at the end thereof the following new clauses: 
" ( E ) make such reports as the Council determines appro-
priate to the President and the Congress on the activities of 
the Council; and 
" ( F ) disseminate information concerning the activities of 
the Council under this section.". 
(c) Section 408(f) of the Education Amendments of 1974 is amended 
by striking out the subsection designation " ( f ) " the second time it 
appears in such section and inserting in lieu thereof " ( g ) " . 
STATE EQUALIZATION 
PLANS 
20 use 246. 
SEC. 326. Section 842(a) (1) of the Education Amendments of 1974, 
relating to assistance to States for State equalization plans, is amended 
by striking out "July 1,1977" and inserting in lieu thereof "October 1, 
1978". 
20 use 1225 
note. 
20 use 1226a. 
Ante, p. 1225. 
20 use 1211b 
note. 
20 use 1801. 
Appropriation 
authorization. 
20 use 1802. 
20 use 821, 
841, 861, 887, 
887a. 
20 use 441. 
INDOCHINA 
REFUGEE CHILDREN ASSISTANCE ACT OF 19 7 6 
AND SIMILAR 
PROGRAMS 
SEC. 327. The provisions of section 414 of the General Education 
Provisions Act, relating to the contingent extension of applicable pro-
grams, shall not apply to the Indochina Refugee Children Assistance 
Act of 1976, or to any program of financial assistance for educational 
purposes for Indochinese refugee children, 
HOLD HARMLESS RELATING TO TITLE IV OF ELEMENTARY AND 
SECONDARY 
EDUCATION ACT OF 
1965 
S E C 328. Section 401 of the Elementary and Secondary Education 
Act of 1965 is amended by adding at the end thereof the following new 
subsection; 
"(d) There are authorized to be appropriated for obligation by the 
Commissioner during the fiscal year ending September 30, 1978, such 
sums as may be necessary for the purpose of increasing the allotment 
under section 402(a) (2) for that year to any State to a level of fund-
ing which equals the amounts of funds received by that State for the 
fiscal year ending June 30,1974, for programs under title II, title I I I , 
title V, and sections 807 and 808 of this Act, and title I I I (except for 
section 305) of the National Defense Education Act of 1958.". 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2221 
AMENDMENT TO ADUIiT EDUCATION ACT 
SEC. 329. Section 309 of the Adult Education Act is amended by 20 USC 1208. 
striking out "15 per centum" and inserting in lieu thereof "10 per 
centum". 
AMENDMENTS RELATING TO PUBLIC LAW 8 74, EIGHTY-FIRST CONGRESS 
SEC. 330. (a) Section 5(d)(2) of the Act of September 30, 1950 
(Public Law 874, Eighty-first Congress), is amended by adding at 20 USC 240. 
the end thereof the following new subparagraph: 
"(C) In the application of subparagraph (A) of this para-
graph to any State having a program described in such subpara-
graph (A) in effect on the date of the enactment of the Education 
Amendments of 1976, no payment may be withheld from and no 
repayment may be required of any State or local educational 
agency for any period prior to promulgation of final regulations, 
or, if the State is not in conformance with such regulations, until 
July 1, 1977.". 
(b) (1) Section 5(c) (1) of the Act of September 30, 1950 (Public 
Law 874, Eighty-first Congress) is amended to read as follows: 
"(1) He shall first allocate to each local educational agency 
which is entitled to a payment under section 2 an amount equal to 
100 per centum of the amount to which it is entitled as computed 
under that section for such fiscal year and he shall further allocate 
to each local educational agency which is entitled to a payment 
under section 3 an amount equal to 25 per centum of the amount 
to which it is entitled as computed under section 3(d) for such 
fiscal year.". 
(2) Section 5(c) (2) of such Act is amended (A) by striking out 
"; and" at the end of clause (F) and inserting in lieu thereof a period, 
and (B) by striking out clause (G). 
(3) Section 5(c)(3) of such Act, as so amended, is amended by 
striking out "sections 2, 3, and 4" and inserting in lieu thereof "sec-
tions 3 and 4". 
(4) The amendments made by this subsection shall take effect on Effective date. 
July 1, 1975. 
20 USC 240 note. 
PART C—CAREER EDUCATION AND CAREER DEVELOPMENT 
PURPOSE 
. 
„ 
SEC. 331. It is the purpose of this part to provide Federal assistance 20 USC 2501. 
to States to enable them to plan for the development of career educa-
tion and career development programs and activities for individuals 
of all ages, and to plan for the improvement of existing programs and 
activities, in the areas of awareness, exploration, planning, and deci-
sionmaking of individuals served with regard to career opportunities 
and career development throughout the lifetimes of such individuals, 
through—• 
(1) planning for the development of information on the needs 
for career education and career development for all individuals; 
* 
(2) planning for the promotion of a national dialogue on career 
education and career development designed to encourage each 
State and local educational agency to determine and adopt the 
approach best suited to the needs of the individuals served by each 
such agency; 
89-194 O—78—pt. 2 
48 
90 STAT. 2222 
PUBLIC LAW 94-482—OCT. 12, 1976 
(3) planning for the assessment of the status of career educa-
tion and career development programs and practices, including a 
reassessment of the stereotyping of career opportunities by race 
or by sex; 
(4) planning for the demonstration of the best of the current 
career education and career development programs and practices 
by planning to develop and test exemplary programs and prac-
tices using various theories, concepts, and approaches with respect 
to career education and through planning for a nationwide system 
of regional career education centers; 
(5) planning for the training and retraining of persons for 
conducting career education and career development programs; 
and 
(6) developing State and local plans for implementing pro-
grams designed to ensure that every person has the opportunity 
to gain the knowledge and skills necessary for gainful or maxi-
mum employment and for full participation in our society accord-
ing to his or her ability. 
20 use 2502. 
20 use 1231c. 
'State. 
AUTHORIZATION OF APPROPRIATIONS; ALLOTMENT 
SEC. 332. (a) There are authorized to be appropriated for the pur-
pose of this part $10,000,000 for fiscal year 1978. The provisions of 
section 414 of the General Education Provisions Act shall not apply 
to the authorization made by this subsection. 
(b) (1) From the sums appropriated under this part, the Com-
missioner of Education shall reserve an amount not to exceed 
$2,000,000, for the purpose of carrying out section 335 of this part. 
(2) From the remainder of the sums appropriated under this part, 
the Commissioner shall reserve such amount, not to exceed 3 per 
centum thereof, as he may determine necessary and shall allot such 
amount among the Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, American Samoa, and the Trust Territory of the Pacific 
Islands, according to their relative need for assistance under this part. 
(3) (A) Of the remainder of the sums appropriated, the Commis-
sioner shall allot to each State $100,000, and of the remainder of the 
sums appropriated the Commissioner shall allot to each State an 
amount which bears the same ratio to such sums for such year as the 
population of the State bears to the population of all States, for 
purposes of carrying out section 331. 
(B) For purposes of this paragraph, the term "State" means any 
of the several States and the District of Columbia. 
(c) The Federal share of funds allotted to States under this part 
shall not exceed 80 per centum of the total cost of the planning under-
taken pursuant to this part. 
PROGRAM ADMINISTRATION 
20 use 2503. 
SEC. 333. The provisions of this part shall be carried out by the 
Commissioner through the Office of Career Education established 
20 use 1865. 
pursuant to section 406(c) of the Education Amendments of 1974. 
Report to 
eommissioner. 
20 use 2504. 
rrSE OF FUNDS 
SEC. 334. Any State desiring to receive the amount for which it is 
eligible for any fiscal year pursuant to this part shall agree to submit 
to the Commissioner by December 31,1978, a report on any planning 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2223 
undertaken pursuant to this part. Such report shall be in such form 
as the State may desire, and may include planning proposals for— 
(1) extending career education and career development pro-
grams and services to all individuals in the State; 
(2) extending the concept of the education process beyond the 
school into the area of employment and community affairs, and 
relating the subject matter curriculums of schools to the needs of 
individuals to function in society; 
(3) the implementation of new concepts in career education 
and career development and for the replication of concepts which 
have demonstrated success; 
' 
S 
(4) the development of training programs, including inservice 
training programs, for teachers, counselors, other educators, and 
administrators; 
(5) fostering cooperative arrangements with such community 
groups and agencies as the public employment services, vocational 
rehabilitation service, community mental health agencies, educa-
tion opportunity centers, and other community resources con-
cerned with vocational development guidance and counseling, in 
order to avoid unnecessary duplication in the provision of services 
in the community or area to be served; and 
(6) inventories of State, local, and private resources available 
for the development of career education and career development 
programs and services. 
CAREER INFORMATION 
SEC. 335. (a) The Commissioner shall provide, either directly or by 20 USC 2505. 
grant or contract, for— 
(1) the gathering, cataloging, storing, analyzing, and dis-
seminating information related to the availability of, and prep-
aration for, careers in the United States, including information 
concerning current career options, future career trends, and career 
education; 
(2) the ongoing analysis of career trends and options in the 
United States, using information from both the public and private 
sectors, including such sources as the Bureau of Labor Statistics, 
the Department of Commerce, the Tariff Commission, economic 
analysts, labor unions, and private industry; 
(3) the publication of periodic reports and reference works 
using analysis prepared pursuant to this section and containing 
exemplary materials from the career education field, including 
research findings, results, and techniques from successful projects 
and programs, and highlights of ongoing analyses of career trends 
in the United States; and 
-^ 
(4) the conduct of seminars, workshops, and career information 
sessions for the purpose of disseminating to teachers, guidance 
counselors, other career educators, administrators, other educa-
tion personnel, and the general public information compiled and 
analyzed under this section. 
(b) In carrying out the provisions of this part, and to the extent 
practicable, the Commissioner shall (1) make use of existing offices, 
centers, clearinghouses, and research capabilities, (2) coordinate 
among the offices, centers, clearinghouses, and research capabilities in 
-
carrying out his career information responsibilities, and (3) use the 
career information capabilities of the Education Division. 
90 STAT. 2224 
PUBLIC LAW 94-482—OCT. 12, 1976 
NATIONAL ADVISORY COUNCIL 
20 use 2506. 
SEC. 336. The National Advisory Council for Career Education 
established pursuant to section 406(g) of the Education Amend-
20 use 1865. 
ments of 1974 shall, in addition to its duties under that section, advise 
the Commissioner with respect to the implementation of this part. 
PART D—GUIDANCE AND COUNSELING 
FINDINGS 
20 use 2531. 
SEC. 341. The Congress finds that— 
(1) guidance and counseling activities are an essential com-
ponent to assure success in achieving the goals of many education 
programs: 
(2) lack of coordination among guidance and counseling activ-
ities supported jointly or separately by Federal programs and by 
State and local programs has resulted in an underutilization of 
resources available for such activities; and 
(3) increased and improved preparation of education profes-
sionals is needed in guidance and counseling, including adminis-
tration of guidance and counseling programs at the State and 
local levels, with special emphasis on inservice training which 
takes educational professionals into the workplaces of business 
and industry, the professions, and other occupational pursuits, 
and that increased and improved use of individuals employed in 
such pursuits are needed for effective guidance and counseling 
programs, including (A) bringing persons employed in such pur-
suits into schools, and (B) bringing students into such workplaces 
for observation of, and participation in, such pursuits, in order to 
acquaint the students with the nature of the work. 
APPROPRIATIONS AUTHORIZED 
20 use 2532. 
SEC. 342. (a) There are authorized to be appropriated $20,000,000 
for each of the fiscal years 1978 and 1979, to carry out the provisions of 
this part. 
(b) (1) There are authorized to be appropriated $3,000,000 for fiscal 
year 1977, for purposes of grants to States made by the Commissioner 
for programs, projects, and leadership activities designed to expand 
and strengthen counseling and guidance services in elementary and 
secondary schools. 
(2) No sums are authorized to be appropriated under section 401 (a) 
20 use 1801. 
of the Elementary and Secondary Education Act of 1965 for fiscal 
year 1977, for the purpose of making grants under part B (Libraries 
20 use 1821. 
and Learning Resources) of title IV of such Act, for such fiscal year 
which represent the amount authorized to be appropriated under para-
graph (1) of this subsection. 
(3) (A) The Commissioner shall allot the amounts appropriated 
under this subsection among Guam, American Samoa, the Virgin 
Islands, and the Trust Territory of the Pacific Islands according to 
their respective needs for assistance under this subsection. In addi-
tion, he shall allot from such amounts to (i) the Secretary of the 
Interior the amounts necessary for the programs, projects, and activi-
ties authorized by this subsection for children and teachers in elemen-
tary and secondary schools operated for Indian children by the 
Department of the Interior; and (ii) the Secretary of Defense the 
amounts necessary for the programs, projects, and activities author-
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2225 
ized by this subsection for children and teachers in the overseas 
dependents schools of the Department of Defense. The terms upon 
which payment for such purposes shall be made to the Secretary of 
the Interior and the Secretary of Defense shall be determined pursu-
ant to such criteria as the Commissioner determines will best carry 
out the purposes of this subsection. 
(B) From the amounts appropriated to cany out this subsection, 
the Commissioner shall allot to each State from such amounts an 
amount which bears the same ratio to such amounts as the number of 
children aged five to seventeen, inclusive, in the State bears to the 
number of such children in all the States. For the purposes of this "State." 
subparagraph, the term "State" shall not include Guam, American 
Samoa, the Virgin Islands, and the Trust Territory of the Pacific 
Islands. The number of children aged five to seventeen, inclusive, in 
a State and in all the States shall be determined by the Commissioner 
on the basis of the most recent satisfactory data available to him. 
(C) The amount of any State's allotment under subparagraph (A) 
or subparagraph (B) to carry out this subsection which the Commis-
sioner determines will not be required to carrjr out this subsection 
shall be available for reallotment from time to time, on such dates as 
the Commissioner may fix, to other States in proportion to the orig-
inal allotments to such States under subparagraph (A) or subpara-
graph (B) but with such proportionate amount for any of such other 
States being reduced to the extent it exceeds the sum the Commissioner 
estimates such State needs and will be able to use. The total of such 
reductions shall be similarly reallotted among the States whose pro-
portionate amounts were not so reduced. Any amounts reallotted to a 
State under this subparagraph from funds appropriated under this 
subsection shall be deemed a part of its allotment under subparagraph 
(A) or subparagraph (B). 
ADMINISTRATION 
SEC. 343. (a) The Commissioner shall establish or designate an 20 USC 2533,, 
administrative unit within the Education Division for purposes of— 
(1) carrying out provisions of this section; 
(2) providing information regarding guidance and counseling 
as a profession, guidance and counseling activities of the Federal 
Government, and, to the extent practicable, activities of State and 
local programs of guidance and counseling; and 
(3) advising the Commissioner on coordinating guidance and 
counseling activities included in all programs which he is author-
ized to carry out, and, to the extent he deems practicable, how such 
activities may be coordinated with other programs of the Federal 
Government and State and local guidance and counseling 
programs. 
(b) The Commissioner may reserve an amount not to exceed 5 per 
centum of the sums appropriated under this part to carry out the pro-
visions of this section. 
PROGRAM AUTHORIZED 
SEC. 344. (a) The Commissioner is authorized, on a competitive 20 U
S
C 2534. 
basis, to enter into contracts and make grants to State and local educa-
tional agencies, to institutions of higher education, and to private non-
profit organizations to assist them in conducting institutes, work 
shops, and seminars designed to improve the professional guidance 
90 STAT. 2226 
PUBLIC LAW 94-482—OCT. 12, 1976 
qualifications of teachers and counselors in State and local educational 
agencies and nonpublic elementary and secondary school systems, in-
cluding opportunities for teachers and guidance counselors in such 
agencies and systems to obtain experience m business and industry, the 
professions, and other occupational pursuits, and including, for the 
purpose of such improvement, such programs, services, or activities 
which bring individuals with experience in such pursuits into schools 
as counselors or advisors for students, and which bring students into 
the workplaces of such pursuits to acquaint students with the nature 
of the work and to provide training for supervisory and technical 
personnel in such agencies and systems having responsibilities for 
guidance and counseling, and to improve supervisory services in the 
field of guidance and counseling. 
(b) The Commissioner is authorized to make grants to States to 
assist them in carrying out programs to coordinate new and existing 
programs of guidance and counseling in the States. 
TITLE IV—GENERAL EDUCATION PROVISIONS 
SURVEY o r AVAILABILITY OF QUALIFIED I'EACHERS 
20 use 
SEC. 401. (a) Section 406(b) of the General Education Provisions 
1221e-l. 
^ct is amended by striking out "and" at the end of paragraph (3), 
by striking out the period at the end of paragraph (4) and inserting 
in lieu thereof "; and", and by adding at the end thereof the following 
new subparagraph: 
"(5) conduct a continuing survey of institutions of higher edu-
cation and local educational agencies to determine the demand 
for, and the availability of, qualified teachers and administrative 
personnel, especially in critical areas within education which are 
developing or are likely to develop, and assess the extent to which 
programs administered in the Education Division are helping to 
meet the needs identified as a result of such continuing survey.". 
(b) Section 406(d) (1) of the General Education Provisions Act is 
amended by striking out "and" at the end of subparagraph (B), by 
striking out the period at the end of subparagraph (C) and inserting 
in lieu thereof "; and", and by adding at the end thereof the following 
new subparagraph: 
"(D) clearly sets forth areas of critical need for additional 
qualified education personnel in local education agencies and, 
after discussion and review b^ the Advisory Council on Educa-
tion Statistics, identifies priorities within projected areas of need, 
and includes recommendations of the Council with respect to the 
most effective manner in which the Nation and the Federal Gov-
ernment may address such needs.". 
(c) Section 406(g) of the General Education Provisions Act is 
amended by striking out "for the fiscal year ending June 30, 1977" 
each time it appears and inserting in lieu thereof "for each of the 
fiscal years ending prior to October 1,1978". 
EXTENSION o r FUND FOR IMPROVEMENT OF POSTSECONDARY EDUCATION 
20 use 1221d. 
^ SEC. 402. (a) Section 404 of the General Education Provisions Act 
is amended by striking out "SUPPORT FOR" in the heading of such sec-
tion and inserting in lieu thereof "FUND FOR THE". 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2227 
(b) Section 404 (e) of the General Education Provisions Act is 20 U
S
C 1221(1. 
amended by striking out "for the fiscal year ending June 30,1975" and 
inserting in lieu thereof "for each succeeding fiscal year ending prior 
to October 1,1979". 
NATIONAL INSTITUTE OF EDUCATION 
SEC. 403. (a) Section 405(b) (2) of the General Education Provi-
sions Act is amended to read as follows: 
^ 20 USC 122 le. 
"(2) The Institute shall, in accordance with the provisions of this 
section, seek to improve education in the United States through con-
centrating the resources of the Institute on the following priority 
research and development needs— 
" (A) improvement in student achievement in the basic educa-
tional skills, including reading and mathematics; 
"(B) 
overcoming problems of finance, productivity, and 
management in educational institutions; 
^ 
' 
"(C) improving the ability of schools to meet their responsi-
bilities to provide equal educational opportunities for students of 
limited English-speaking ability, women, and students who are 
socially, economically, or educationally disadvantaged; 
"(D) preparation of youths and adults for entering and pro-
gressing m careers; and 
"(E) improved dissemination of the results of, and knowledge 
gained from, educational research and development, including 
assistance to educational agencies and institutions in the applica-
tion of such results and knowledge.". 
(b) (1) Section 405 (c) (1) of the General Education Provisions Act 
is amended by striking out "Eight members" and inserting in lieu 
thereof "A majority of the members", and by adding at the end 
thereof the following new sentence: "The members of the Council shall 
be appointed so that the Council shall be broadly representative of 
the general public; of the education professions, including practi-
tioner's and researchers; and of the various fields of education, includ-
ing preschool, elementary and secondary, postsecondary, continuing, 
vocational, special, and compensatory education.". 
(2) Section 405(c) (2) of the General Education Provisions Act is 
amended by striking out "and" immediately before "(B)" in the 
first sentence and by inserting immediately before the period at the 
end of sii "li sentence the following: ", and (C) the term of office of 
each meribor shall expire on September 30 of the year in which such 
term A\onld otherwise expire, unless a successor to such member has 
not been appointed and confirmed by the Senate by such date, in which 
case sucli : icmber shall continue to serve until a successor has been 
appointed and confirmed". 
(3) Section 405(c) (3) of the General Education Provisions Act is 
amended by adding at the end thereof the following new sentence: 
"The Council may employ, without the approval of the Director, 
without regard to the provisions of title 5, United States Code, gov-
erning appointments in the competitive service, and without regard 
to the provisions of chapter 51 and subchapter III of chapter 53 of 
such title relating to classification and General Schedule pay rates, 5 USC 5101, 
not to exceed seven technical and professional employees, as the Coun- 
5331, 5332 note, 
cil deems necessary to carry out its functions.". 
(c) Section 405(e) of the General Education Provisions Act is 
amended by redesignating paragraphs (2) and (3) as paragraphs (4) 
and (5), respectively, and by inserting immediately after paragraph 
(1) the following new paragraphs: 
90 STAT. 2228 
PUBLIC LAW 94-482—OCT. 12, 1976 
"(2) Funds appropriated pursuant to subsection (b) for any fiscal 
year may be expended on projects and activities to disseminate (A) 
information on the results of educational research and development; 
and (B) other educational information. Projects and activities funded 
under this paragraph may include cooperative and jointly funded 
arrangements for such dissemination utilizing individuals who may 
be designated as 'Education Extension Agents'. Employment oppor-
tunities at the local level which are generated and funded through 
projects and activities carried out under the preceding sentence of this 
paragraph shall be made available to residents of the area to be served, 
if any such residents are qualified for, and apply for, such employment. 
Research 
"(3) The Director may establish and maintain research fellowships 
fellowships. 
j ^ ^he Institute, with such stipends and allowances, including travel 
and subsistence expenses, as the Director may deem necessary to pro-
cure the assistance of highly qualified research fellows from the United 
States and abroad.". 
20 use 1221e. 
(d) Section 405 of the General Education Provisions Act is amended 
by redesignating subsection (g) and subsection (h), and any refer-
ence thereto, as subsection (i) and subsection (j), respectively, and 
by inserting immediately after subsection (e) the following new 
subsections: 
"(f) (1) In carrying out the functions of the Institute under this 
section, the Director shall, in accordance with the provisions of this 
subsection, make grants to, and enter into contracts with— 
"(A) regional educational laboratories established by public 
agencies or private nonprofit organizations; and 
"(B) research and development centers established by institu-
tions of higher education or by interstate agencies established by 
compact which operate subsidiary bodies established to conduct 
postsecondary educational research and development. 
" (2) No grants shall be made and no contract entered into under this 
subsection unless— 
" (A) proposals for assistance under this subsection are solicited 
from regional educational laboratories and research and develop-
ment centers by the Director; 
"(B) proposals for such assistance are developed by the 
regional educational laboratories and the research and develop-
ment centers in consultation with the Director ; 
"(C) proposals are submitted in an application, containing or 
accompanied by such information as is essential to carry out the 
provisions of this section, including assurances that the laboratory 
or center involved will— 
"(i) be responsible for the conduct of the research and 
development activities; 
"(ii) prepare a long-range plan relating to the conduct of 
such research and development activities; 
"(iii) ensure that information developed as a result of 
such research and development activities, including new edu-
cational methods, practices, techniques, and products, be 
disseminated; 
"(iv) provide technical assistance to appropriate educa-
tional agencies and institutions; and 
"(v) to the extent practicable, provide training for indi-
viduals, emphasizing training opportunities for women and 
members of minority groups, in the use of new educational 
methods, practices, techniques, and products developed in 
connection with such activities; and 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2229 
"(D) the Director determines that the proposed activities will 
be consistent with the education research and development pro-
gram and dissemination activities which are being conducted by 
the Institute. 
"(3) (A) The Director shall establish a Panel for the Keview of 
Laboratory and Center Operations composed of not less than 10 mem-
bers nor more than 20 members who shall be appointed by the 
Director from written recommendations submitted by educational 
laboratories and research and development centers which have sub-
mitted applications under the provisions of this subsection, and by 
associations of professional, commercial, scholarly, and educational 
associations, particularly associations or organizations engaged in 
educational research. 
"(B) The Panel shall— 
"(i) review, and prepare recommendations on, initial long-
range plans suljmitted under paragraph (2) (C) (ii); 
" (ii) review the operation of the laboratories and centers receiv-
ing assistance under this subsection and make recommendations 
for the improvement and continuation of individual laboratories 
and centers and for the support of new laboratories and centers; 
and 
"(iii) not later than January 1, 1979, submit a final report 
to the Director and to the Congress containing such recommenda-
tions as the Panel considers appropriate and such interim reports 
as the Panel considers appropriate. 
"(C) Each member of the Panel who is not an officer or employee 
of the United States shall, while engaged in the business of the Panel, 
be entitled to receive compensation at not to exceed the daily rate 
specified at the time of such service for Grade GS-18 under section 
5332 of title 5, United States Code, including traveltime. While so 
serving on the business of the Panel away from his home or regular 
place of business, each such member shall be allowed travel expenses, 
including per diem in lieu of subsistence, as authorized by section 5703 
of title 5, United States Code, for persons intermittently employed in 
the Government service. 
"(D) The Director, for the use of the Panel, and pursuant to the 
recommendations of the Panel, is authorized— 
"(i) to appoint, without regard to the provisions of title 5, 
United States Code, governing appointments in competitive serv-
ice, and fix the compensation for, without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of such title relat-
ing to classification and general pay rates, such professional, tech-
nical, and clerical personnel as may be necessary; and 
"(ii) to procure the services of experts and consultants in 
accordance with section 3109 of title 5, United States Code. 
"(4) No regional edcational laboratory or research and develop-
ment center receiving assistance under this subsection shall by reason 
of the receipt of such assistance be ineligible to receive any other 
assistance from the Institute authorized by law. 
"(g) (1) There is established within the Institute a Federal Coun-
cil on Educational Eesearch and Development (hereinafter in this 
subsection referred to as the 'Federal Council'), 
"(2) The Federal Council shall be composed of representatives of 
Federal agencies engaged in research and development relating to edu-
cation, and shall include, but not be limited to, a representative desig-
Panel for the 
Review of 
Laboratory and 
Center 
Operations. 
Establishment. 
Federal Council 
on Educational 
Research and 
Development. 
Establishment. 
90 STAT. 2230 
PUBLIC LAW 94-4S2--0CT. 12, 1976 
nated by the Secretary of Defense, a representative designated by the 
Secretary of Labor, the Director of the National Institutes of Educa-
tion, the Director of the National Institute of Health, the Director of 
the National Science Foundation, the Director of the Office of Child 
Development of the Department of Health, Education, and Welfare, 
and the Commissioner of Education. 
"(3) The President shall designate the Director of the Institute to 
be the Chairman of the Federal Council, 
"(4) The President shall appoint additional representatives of Fed-
eral agencies and may alter the membership of the Federal Council 
from time to time as he considers necessary to meet changes in Fed-
eral programs or in the organization of the executive branch of the 
Federal Government. 
"(5) The Federal Council shall— 
"(A) advise, and consult w^ith, the Director of the Institute 
with respect to major problems arising in connection vs^ith carry-
ing out the purposes of the Institute; 
"(B) promote coordination between the programs and activities 
of the Institute and related programs and activities of other Fed-
eral agencies, including the joint support of activities to the extent 
such support is appropriate; 
"(C) make an annual report to the Congress and the President 
on the status of educational research and development in the 
United States, including (i) a catalog of federally assisted pro-
grams in educational research and development; (ii) a report of 
the most significant findings of such research and development; 
and (iii) recommendations with respect to the manner in which 
such Federal research and development efforts may be improved; 
and 
"(D) make recommendations to the Congress and the President 
with respect to effective means for the dissemination throughout 
the United States of information relating to educational research 
and development, and carry out an assessment of existing 
efforts used by Federal agencies for the dissemination of such 
information. 
"(h)(1) In conducting educational research under subsection (e) 
which deals with specific education programs or the target populations 
of such programs, the Director shall consult with the appropriate 
administrators of such programs within appropriate Federal agencies. 
"(2) The head of any Federal agency which conducts educational 
research or provides financial assistance for such research shall con-
sult with the Director with respect to the design of programs of such 
research.". 
20 use 1221e. 
(e) Section 405(j) of the General Education Provisions Act, as so 
redesignated by subsection (d), is amended by adding at the end 
thereof the following new sentence: "There are also authorized to be 
appropriated for such purpose $100,000,000 for fiscal year 1977 and 
$200,000,000 for each of fiscal years 1978 and 1979.". 
TECHNICAL REVISION RELATING TO PROHIBITION AGAINST FEDERAL CONTROL 
20 use 1230. 
SEC. 404. (a) Section 421 of the General Education Provisions Act 
is amended by inserting " (except as otherwise provided)" after "part". 
20 use 1232a. 
(b) Section 432 of the General Education Provisions Act is amended 
by striking out all the matter preceding "shall" and inserting in lieu 
thereof the following: "No provision of any applicable program". 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2231 
REGULATIONS 
SEC. 405. (a) (1) Section 431 of the General Education Provisions 
Act is amended by striking out "SEC. 431. (a)" and inserting in lieu 20 USC 1232. 
thereof "(2)" and by inserting immediately after the section heading 
the following: 
"§EC. 431. (a) (1) For the purpose of this section, the term 'regula-
tion' means any rules, regulations, guidelines, interpretations, orders, 
or 
requirements 
of 
general 
applicability 
prescribed 
by the 
• 
Commissioner.". 
(2) (A) Section 431(a)(2) of such Act, as redesignated by this 
section, is amended by striking out "Kules, regulations, guidelines, or 
other published interpretations or orders" and inserting in lieu thereof 
"Regulations". 
(B) Such section 431(a)(2) is further amended by striking out 
"rules, regulations, guidelines, interpretations, or orders and inserting 
in lieu thereof "regulations". 
(b) (1) Section 431(b) (1) of such Act is amended by striking out 
"standard, rule, regulation, or requirement of general applicability" 
and inserting in lieu thereof "proposed regulation". 
(2) Section 431(b) (2) (A) of such Act is amended by striking out 
"standard, rule, regulation, or general requirement" and inserting in 
lieu thereof "regulation". 
(c) Section 431(c) of such Act is amended by striking out "rules, 
regulations, guidelines, interpretations, or orders" and inserting in 
lieu thereof "regulations". 
(d) (1) Section 431(d) (1) of such Act is amended by striking out 
"standard, rule, regulation, or requirement of general applicability" 
and inserting in lieu thereof "regulation". 
(2) Section 431(d) (1) of such Act is further amended by striking 
out "standard, rule, regulation, or requirement" each time it appears 
and inserting in lieu thereof "regulation". 
(3) Section 431(d)(2) of such Act is amended by striking out 
"standard, rule, regulation, or requirement" each time it appears and 
inserting in lieu thereof "regulation". 
(e)(1) Section 431(e) of such Act is amended by striking out 
"standard, rule, regulation, or requirement" and inserting in lieu 
thereof "regulation". 
(2) Section 431(e) of such Act is further amended by striking out 
"proposed standard, rule, regulation, or requirement of general appli-
cability" and inserting in lieu thereof "final regulation". 
(f) Section 431(g) of such Act is amended by striking out "rules, 
regulations, and guidelines" each time it appears and inserting in lieu 
thereof "final regulations". 
(g) The heading of section 431 of such Act is amended to read as 
follows: 
"REGULATIONS: REQUIREMENTS AND ENEORCEMENT". 
CONTROL OF PAPERWORK 
SEC. 406. Section 406 of the General Education Provisions Act is 20 USC 
amended by redesignating subsection (g) as subsection (h) and by 1221e-l. 
inserting after subsection (f) the following new subsection: 
"(g) (1) (A) In order to eliminate excessive detail and unnecessary 
or redundant information requests, the Secretary and the Commis-
sioner shall, in accordance with the provision of this subsection, coordi-
nate the collection of information and data acquisition activities of 
the Education Division and the Office for Civil Rights. 
90 STAT. 2232 
PUBLIC LAW 94-482—OCT. 12, 1976 
Information 
collection and 
data acquisition. 
Definitions. 
"(B) For the purpose of this Subsection, the term— 
"(i) 'information' has the meaning given it by section 3502 of 
title 44, United States Code; and 
"(ii) 'educational agency or institution' means any public or 
private agency or institution which is the recipient of funds under 
any applicable program, including any preschool program. 
"(C) The Commissioner shall establish and provide staff personnel 
to operate information collection and data acquisition review and 
coordination procedures to be directed by the Administrator for the 
National Center for Education Statistics. The procedures shall be 
designed to review proposed collection of information and data acqui-
sition activities in order to advise the Commissioner and the Secretary 
with respect to whether such activities are excessive in detail or 
unnecessary or redundant. 
" (2) (A) The Administrator shall assist each bureau or agency 
directly responsible for an applicable program, and the Office for Civil 
Rights, in performing the coordination required by this subsection, 
and shall require of each such bureau, agency, and office— 
"(i) a detailed justification of how information once collected 
will be used; and 
"(ii) an estimate of the man-hours required by each educa-
tional agency or institution to complete the requests. 
"(B) Each educational agency or institution subject to a request 
under the collection of information and data acquisition activity and 
their representative organizations shall have an opportunity, during 
the 30-day period before the transmittal of the request to the Director 
of the Office of Management and Budget, to comment to the Adminis-
trator on the collection of information and data acquisition activity. 
"(C) Nothing in this subsection shall be construed to interfere with 
the enforcement of the provisions of the Civil Rights Act of 1964 or 
any other nondiscrimination provisions of Federal law. 
" (3) The Administrator shall, insofar as practicable, and in accord-
ance with the provisions of this title, provide educational agencies and 
institutions with summaries of the information collected and the data 
acquired by the Education Division and the Office for Civil Rights'. 
"(4) The Administrator shall, insofar as practicable, develop a 
common set of definitions and terms after consultation with the head 
of each bureau or agency directly responsible for the administration 
of an applicable program. 
Report to 
"(5) The Commissioner shall prepare as part of the annual report 
Congress. 
to the Congress provisions relating to the progress made by the Secre-
tary, the Commissioner, and the Administrator in meeting the objec-
tives of this subsection and make to the Congress whatever legislative 
recommendations necessary for meeting the objectives.". 
42 u s e 2000a 
note. 
ADMINISTRATIVE HEARINGS 
20 use 1232i. 
SEC. 407. Section 440 of the General Education Provisions Act is 
amended by inserting ''(a)" immediately after "SEC. 440" and by 
adding at the end thereof the following new subsection: 
"(b) The extension of Federal financial assistance to a local educa-
tional agency may not be limited, deferred, or terminated by the Sec-
retary on the ground of noncompliance with title VI of the Civil 
42 use 2000d. 
Rights Act of 196i or any other nondiscrimination provision of Fed-
eral law unless such agency is accorded the right of due process of law, 
which shall include— 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2233 
"(1) at least 30 days prior written notice of deferral to the 
agency, setting forth the particular program or programs which 
the Secretary finds to be operated in noncompliance with a specific 
provision of Federal law; 
"(2) the opportunity for a hearing on the record before a duly Hearing, 
appointed administrative law judge within a 60-day period 
(unless such period is extended by mutual consent of the Secretary 
and such agency) from the commencement of any deferral; 
"(3) the conclusion of such hearing and the rendering of a 
decision on the merits by the administrative law judge within a 
period not to exceed 90 days from the commencement of such hear-
ing, unless the judge finds by a decision that such hearing cannot 
• S 
be concluded or such decision cannot be rendered within such 
period, in which case such judge may extend such period for not 
to exceed 60 additional days; 
" (4) the limitation of any deferral of Federal financial assist-
ance which may be imposed by the Secretary to a period not to 
exceed 15 days after the rendering of such decision unless there 
has been an express finding on such record that such agency has 
.^ , ,,, 
failed to comply with any such nondiscrimination provision of 
Federal law; and 
"(5) procedures, which shall be established by the Secretary, to 
ensure the availability of sufficient funds, without regard to any 
fiscal year limitations, to comply with the decision of such judge.". 
STUDENT ADMISSION PRACTICES 
SEC. 408. Section 440 of the General Education Provisions Act, as 20 USC 1232i. 
amended by section 407, is further amended by adding at the end 
thereof the following new subsection: 
"(c) It shall be unlawful for the Secretary to defer or limit any 
Federal financial assistance on the basis of any failure to comply with 
the imposition of quotas (or any other numerical requirements which 
have the effect of imposing quotas) on the student admission practices 
of an institution of higher education or community college receiving 
Federal financial assistance.". 
EXTENSION OF REPORTING DATES FOR CERTAIN PROGRAMS 
SEC. 409. (a) Section 403(c)(3) of the General Education Pro-
visions Act is amended by striking out "November 1" and inserting in 20 USC 1221c. 
lieu thereof "February 1". 
(b) Section 422(b) of the General Education Provisions Act is 20 USC 1231a. 
amended by striking out "March 31" and inserting in lieu thereof 
"June 30". 
(c) Section 4(b) (1) of the Special Projects Act is amended by strik- 20 USC 1853. 
ing out "February 1" and inserting in lieu thereof "March 1". 
(d)(1) Section 825(a) of the Education Amendments of 1974 is 20 USC 241a 
amended by striking out "June 30,1976" and inserting in lieu thereof «ote. 
"August 31, 1977". 
(2) Section 825(c) of such Act is amended by striking out "Decem-
ber 1, 1976" and inserting in lieu thereof "August 31, 1977". 
TREATMENT OF INDIAN POSTSECONDARY SCHOOLS 
. . . 
SEC. 410. The Act of November 2, 1921 (25 U.S.C. 13) is amended 
by adding at the end thereof the following new undesignated 
paragraph: 
90 STAT. 2234 
PUBLIC LAW 94-482—OCT. 12, 1976 
"Notwithstanding any other provision of this Act or any other law, 
postsecondary schools administered by the Secretary of the Interior 
for Indians, and which meet the definition of an 'institution of higher 
20 use 1141. 
education' under section 1201 of the Higher Education Act of 1965, 
shall be eligible to participate in and receive appropriated funds under 
20 use 1001 
any program authorized by the Higher Education Act of 1965 or any 
°o*®- 
other applicable program for the benefit of institutions of higher edu-
cation, community colleges, or postsecondary educational institutions.". 
PRESIDENTIAL ADVISORY COUNCILS 
20 use 1233b. 
SEC. 411. Section 443(b) of the General Education Provisions Act 
is amended to read as follows: 
"(b) Members of Presidential advisory councils shall continue to 
serve, regardless of any other provision of law limiting their terms, 
until the President appoints other members to fill their positions.". 
AMENDMENT RELATING TO SEX DISCRIMINATION 
20 use 1681. 
SEC. 412. (a) Section 901 (a) of the Education Amendments of 1972 
is amended— 
(1) by striking out "and" at the end of paragraph (5) : 
(2) by striking out "This" in paragraph (6) and inserting in 
lieu thereof "this"; 
(3) by striking out the period at the end of paragraph (6) and 
inserting in lieu thereof a semicolon; and 
(4) by adding at the end thereof the following new paragraphs: 
" (7) this section shall not apply to— 
"(A) any program or activity of the American Legion 
undertaken in connection with the organization or operation 
of any Boys State conference, Boys Nation conference. Girls 
State conference, or Girls Nation conference; or 
"(B) any program or activity of any secondary school or 
educational institution specifically for— 
" (i) the promotion of any Boys State conference. Boys 
Nation conference, Girls State conference, or Girls 
Nation conference; or 
: 
"(ii) the selection of students to attend any such 
• 
conference; 
"(8) this section shall not preclude father-son or mother-
daughter activities at an educational institution, but if such activ-
ities are provided for students of one sex, opportunities for 
reasonably comparable activities shall be provided for students of 
the other sex; and 
"(9) this section shall not apply with respect to any scholar-
ship or other financial assistance awarded by an institution of 
higher education to any individual because such individual has 
received such award in any pageant in which the attainment of 
such award is based upon a combination of factors related to the 
personal appearance, poise, and talent of such individual and in 
which participation is limited to individuals of one sex only, so 
long as such pageant is in compliance with other nondiscrimina-
tion provisions of Federal law.". 
Effective date. 
(b) The amendment made by subsection (a) shall take effect upon 
20 use 1681 
the date of the enactment of this Act. 
note. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2235 
TITLE V—TECHNICAL AND MISCELLANEOUS 
PKOVISIONS 
PART A—TECHNTCAI. AMENDMENTS 
TECHNICAL AMENDMENTS 
SEC. 501. (a) The Education Amendments of 1974 is amended— 
(1) in section 101(a) (3) by inserting '', 122, and 123" immedi-
ately after "121" and by inserting 
, 127, 128, respectively", 
immediately after "126" and before the period; 
(2) in section 103(a)(2) by inserting "of section 301(b)'" 
immediately after "The second sentence" and by striking out "and 
each of the five succeeding fiscal years,"; 
(3) in section 305(a) by inserting "(b) (1)" immediately 
before "The amendments made by paragraphs (1) and (2)" which 
follows the matter in quotation marks in paragraph (3) of such 
subsection; 
(4) in section 402(a) (2) by striking out "July 24, 1954" and 
inserting in lieu thereof "July 26,1954"; 
(5) in section 405 by striking out "(f) (1) The Commissioner 
shall establish or designate a clearing-" the second time it appears 
therein and by inserting in lieu thereof " (3) Appointments to the 
advisory council shall be completed"; 
(6) in section 406(e) by striking out "November 1, 1975" and 
inserting in lieu thereof "May 1,1976"; 
(7) in section 406(g) (4) by striking out "November 1, 1975" 
and inserting in lieu thereof "May 1,1976"; 
(8) (A) in section 408(d)(2)(B) by striking out "(a)" and 
inserting in lieu thereof "(d)(1)"; 
(B) in section 408(d) by striking out paragraph (3) and redes-
ignating paragraph (4) as paragraph (3); 
(C) in the third sentence of section 408(f)(1) by inserting 
"from among the members indicated in clause (A)" after 
"Chairman"; 
(D) in section 408(f)(4) by striking out "not later than a 
year" and inserting in lieu thereof "not later than twenty 
months"; 
(9) in section 511(b) by striking out "July 1,1974" and insert-
ing in lieu thereof "July 1,1975"; 
(10) in section 516(a) by striking out "433" and inserting in 
lieu thereof "443"; 
(11) in section 612(b)(1) by striking out "to the Office" in 
the second sentence and inserting in lieu thereof "to the Bureau"; 
(12) in section 645 by striking out "Elementary" and inserting 
in lieu thereof "Emergency"; 
(13) in section 821(c) by amending the first sentence thereof 
to read as follows: "The Institute shall make interim reports to 
the President and to the Congress not later than December 31, 
1976, and September 30,1977, and shall make a final report there-
to no later than September 30, 1978, on the result of its study 
conducted under this section."; 
(14) (A) in section 822(^a) by striking out "one year after the 
date of enactment of this Act" and inserting in lieu thereof 
"December 31, 1976"; 
20 use 241d-l, 
241d-2. 
20 use 841. 
20 use 238 note. 
88 Stat. 544. 
20 use 1864. 
20 use 1865. 
20 use 1866. 
20 use 1232c 
note. 
20 use 1233b. 
20 use 1402 
note. 
20 use 1607. 
20 use 1221e 
note. 
20 use 241c 
note. 
90 STAT. 2236 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 use 241c 
note. 
20 use 241a 
note. 
20 use 1135. 
20 use 880b-l 
note. 
20 use 1209. 
20 
use 
241C-5. 
20 
use 
241d. 
20 
use 
241e. 
20 
use 
241o. 
20 use 241C-5 
note. 
20 use 824. 
(B) in section 822(b) by striking out "one year after the date 
of enactment of this Act" and inserting in lieu thereof "six 
months after the completion of the survey authorized by sub-
section ( a ) " ; 
(15) in section 823(2) by striking out "than one year after 
the effective date of this Act" and by inserting in lieu thereof 
"than December 31,1975": 
(16) in section 824(b) by striking out "one year after the date 
of enactment of this Acit" and by inserting in lieu thereof 
"January 31,1976"; 
(17) by amending the first sentence of section 825(b) to read as 
follows: "The Secretary shall request each State educational 
agency to take the steps necessary to establish and maintain 
appropriate records to facilitate the compilation of information 
specified in subsection (a) and to submit such information to him 
no later than June 1,1976."; 
(18) in section 826 (a) by— 
(A) inserting "of a representative sample of school" after 
"investigation and study"; and 
(B) striking out in paragraph (1) "sixty days after the 
enactment of this Act" and inserting in lieu thereof "July 1, 
1975"; 
(19) in section 826(b) by striking out "Within fifty days after 
the enactment of this Act, the" and by inserting in lieu thereof 
"The", by striking out "sixty days after the date of enactment of 
this xAct" and by inserting in lieu thereof "July 1, 1975", and by 
striking out in the second sentence "the date of enactment of this 
Act" and by inserting in lieu thereof "such date"; 
(20) in section 837 by inserting "of the Higher Education Act 
of 1965" after "section 1001(b) (1)"; 
(21) in section 845(c) by striking out "708(a)" and by insert-
ing in lieu thereof "732(a)" and by striking out "continued" and 
inserting in lieu thereof "continue"; and 
(22) m section 845(f) by striking out "310(b)" and by insert-
ing in lieu thereof "311 (b)". 
(b) (1) Title I of the Elementary and Secondary Education Act of 
1965 is amended— 
(A) in section 125 by striking out "Except as provided in 
section 843 of the Education Amendments of 1974, no" and 
inserting in lieu thereof "No"; 
(B) in section 126(b) by striking out "clauses (2), (5), (6), 
and (7) of section 103(a)," and inserting in lieu thereof "sections 
103(a) (2), 121,122, and 123,"; 
(C) in section 141(a) (13) by striking out "140" and inserting 
in lieu thereof "150"; 
(D) in section 141(a) (14) (A) by inserting "eligible" after 
"children"; and 
(E) in section 151(g) by striking out "January 31, 1975" and 
inserting in lieu thereof "February 1, 1975", and by striking out 
"January 31" the second time it appears and inserting in lieu 
thereof "February 1"; 
(2) The amendment made by paragraph (1) (A) shall take effect on 
July 1, 1975. 
(c) Section 204(b) of the Elementary and Secondary Education 
Act of 1965 is amended by striking out "1973" and inserting in lieu 
thereof "1978". 
(d) Title VII of the Elementary and Secondary Education Act of 
1965 is amended— 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2237 
(1) in section 731(c) by striking out "November 1, 1975" and 
inserting in lieu thereof "November 1, 1976" and by striking out 
"of 1977" and by inserting in lieu thereof "February 1, 1978"; 
(2) in section 732(c) by striking out "November 1" and insert-
ing in lieu thereof "March 31"; and 
(3) in section 742 by inserting "of the National Institute of 
Education" after "Director" each place it appears. 
(e) (1) Section 403(b) of the Elementary and Secondary Education 
Act of lOOf) is amended by inserting at the end thereof the following 
new paragraph: 
"(5) During the fiscal year preceding the first fiscal year for which 
funds are appropriated pursuant to any part of this title, the State 
educational agency may use administrative funds available to the 
State uuder any program specified in section 401(c) for the purpose 
of carrying out tlie requirements of this subsection.". 
(2) Section 431(a)(2) of the Elementary and Secondary Educa-
tion Act of 1965 is amended by striking out "or private educational 
organizations". 
(f) I'he General Education Provisions Act is amended— 
(1) in section 434(b) (1) (A) by adding after the first sentence 
the following new sentence: "The provisions of the preceding 
sentence shall also apply in the case of a State or other jurisdic-
tion in which there is only one local educational agency or in 
which the State educational agency is also the only local educa-
tional agency."; 
(2) in section 437(a) by striking out "within sixty days" and 
inserting in lieu thereof "witliin ninety days"; and 
(3) in section 437(b) by striking out "October 15" and inserting 
in lieu thereof "March 31". 
(g) Section 310A (b) (2) (A) of the Adult Education Act is amended 
by stiiking out "approval" and inserting in lieu thereof "approved". 
•(h) Sections 652(b) (3), 652(b) (4) and 652(b) (5) of the Education 
of the Handicapped Act eacli are amended by striking out "grant and 
contract" and inserting in lieu thei'eof "grant or contract". 
(i) Section 709(a) of the Emergency School Aid Act is amended by 
inserting "Assistant" before "Secretarv". 
(j) (1) Section 194(b) of the Vocational PMucation Act of 1963 is 
amended by striking out "Secretary" and inserting in lieu thereof 
"Conunissioner". 
(2) Section 197(a) (2) of such Act is amended by striking out "to an 
agency" and inserting in lieu thereof "by an agency". 
(k) (1) Section 301 of the National Defense P^ducation Act of 1958 
is amended by striking out "1977" and inserting in lieu thereof "1978". 
(2) Section 651 (a) of the Education Amendments of 1974 is amended 
by striking out "1977" and inserting in lieu thereof "1978". 
(3) The amendments made by paragraph (1) of this subsection shall 
be effective on and after July l/l974. 
(1) Section 801 (j) of the Elementary and Secondary P'ducation Act 
of 1965 is amended by inserting "IV," after "titles IT, III,". 
(m) (1) Section 103(a) of the National Defense Education Act of 
1958 is amended by striking out "Puerto Kico," after "such term does 
not include". 
(2) Section 402(a)(1) of such Act is amended by striking out "3 
per centum" and inserting "1 per centum" in lieu thereof. 
(3) Section 1008 (A) of such Act is amended bv striking out "Puerto 
Rico,". 
(n) Section 403(17) of the Act of September 30, 1950 (Public Law 
874, P^ighty-first Congress) is amended by striking out "(but not 
20 use 
880b-10. 
20 use 
880b-ll. 
20 use 
880b-13. 
20 use 1803. 
20 use 1801. 
20 use 1831. 
20 use 1232c. 
20 use 1232f. 
20 use 1208b. 
20 use 1452. 
20 use 1608. 
20 use 1393c. 
20 use 1393f. 
20 use 441. 
20 use 441 note. 
20 use 881. 
20 use 403. 
20 use 462. 
20 use 588. 
20 use 244. 
89-194 O—78—pt. 2 
49 
90 STAT. 2238 
PUBLIC LAW 94-482—OCT. 12, 1976 
20 use 241C-5. 
20 use 241o. 
20 use 
1221e-l. 
20 use 1806. 
including" and inserting in lieu thereof "; but at the option of a local 
educational agency, such term need not include", and by striking out 
"residing in nonproject areas)" and inserting in lieu thereof "residing 
in nonproject areas". 
(o) Section 125 of the Elementary and Secondary Education Act 
of 1965 is amended by striking out "State agency" both places it 
appears and inserting in lieu thereof "State". 
(p) Section 151 (i) of the Elementary and Secondary Education 
Act is amended by adding at the end thereof the following new sen-
tence : "In carrying out the provisions of this section, the Commissioner 
shall place priority on assisting States and local educational agencies 
to conduct evaluations and shall, only as funds are available after ful-
filling that purpose, seek to conduct any national evaluations of the 
program.". 
(q) Section 406(g) of the General Education Provisions Act is 
amended by striking out "for the fiscal year ending June 30, 1977" 
both times it appears and by inserting in lieu thereof "for each of the 
fiscal years ending prior to October 1,1978". 
(r) Section 406(e) of the Elementary and Secondary Education 
Act of 1965 is amended by inserting after "he" the following: "may 
waive such requirements and". 
PART B—MISCELLANEOUS 
AMENDMENTS 
Reports to 
eongress. 
20 use 2561. 
20 use 1070d, 
1070d-l. 
29 use 873. 
Study. 
20 use 2562. 
REPORTS ON HIGH SCHOOL EQUIVALENCY PROGRAM AND COLLEGE ASSISTANCE 
MIGRANT PROGRAM 
SEC. 521. (a)(1) The Secretary of Health, Education, and Welfare, 
in consultation, where appropriate, with the Secretary of Labor, shall 
prepare and submit to the Congress not later than six months after the 
date of the enactment of this Act reports on programs and activities 
authorized by sections 417A and 417B of the Higher Education 
Act of 1965, and on programs operated by the Department of Labor 
known as the High School Equivalency Program and College Assist-
ance Migrant Program authorized under section 303 of the Compre-
hensive Employment and Training Act of 1973. The reports required 
by this subsection may include material from existing studies as well 
as such material prepared by Federal agencies and by contractors, con-
sultants, and experts, as the Secretary of Health, Education, and Wel-
fare deems necessary. 
(2) The reports required by this subsection shall examine the pur-
poses, administration, and effectiveness of the programs described in 
paragraph (1) and shall determine if and to what extent each of such 
programs should be administered by the Office of Education, and if 
so, how the administration of such programs in the Office of Education 
should be structured to best achieve the purposes of such programs. 
(b) The Secretary of Labor shall administer and directly fund the 
existing programs known as the High School Equivalency Program 
and the College Assistance Migrant Program from the national 
account portion of funds appropriated for title I I I , section 303 of the 
Comprehensive Employment and Training Act of 1973 during fiscal 
year 1977, at the level at which they were funded during fiscal year 
1976. 
REPORT ON REORGANIZATION OF EDUCATION DIVISION 
SEC. 522. (a) The Secretary of Health, Education, and Welfare 
shall conduct a study in order to determine the extent to which reorga-
nization of the Education Division of the Department of Health, 
Education, and Welfare is necessary or appropriate. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2239 
(b) The Secretary of Health, Education, and Welfare shall transmit 
to the Committee on Labor and Public Welfare of the Senate and the 
Committee on Education and Labor of the House of Representatives, 
no later than June 30,1977, a report with respect to the study required 
by subsection (a), together with such recommendations as the Secre-
tary deems appropriate. 
STUDIES o r VOCATIONAL EDUCATION 
SEC. 523. (a) The Commissioner of Education shall carry out a 
study of the extent to which sex discrimination and sex stereotyping 
exist in all vocational education programs assisted under the Voca-
tional Education Act of 1963, and of the progress that has been made 
to reduce or eliminate such discrimination and stereotyping in such 
programs and in the occupations for which such programs prepare stu-
dents. The Commissioner shall report the results of such study, 
together with any recommendations with respect thereto, to the Con-
gress within two years after the date of the enactment of this Act. 
(b)(1) In addition to the other authorities, responsibilities, and 
duties conferred upon the National Institute of Education (herein-
after in this section referred to as the "Institute") by section 405 of 
the General Education Provisions Act, as amended by this Act, the 
Institute shall undertake a thorough evaluation and study of voca-
tional education programs, including such programs conducted by the 
States, and such programs conducted under the Vocational Educa-
tion Act of 1963, and other related programs conducted under the 
Comprehensive Employment and Training Act of 1973 and by the 
State Post-Secondary Commissions authorized by the Education 
Amendments of 1972. Such a study shall include— 
(A) a study of the distribution of vocational education funds 
in terms of services, occupations, target populations, enrollments, 
and educational and governmental levels and what such distribu-
tion should be in order to meet the greatest human resource needs 
for the next 10 years; 
(B) an examination of how to achieve compliance with, and 
enforcement of, the provisions of applicable laws of the United 
States; 
(C) an analysis of the means of assessing program quality and 
effectiveness; 
(D) depending on the level of funding available to the Insti-
tute, not more than three experimental studies to be administered 
by the Institute, in cases where the Institute determines that such 
experimental programs are necessary to carry out the purpose of 
clauses (A) through (C) and the Commissioner of Education and 
the Secretary of Labor are authorized, notwithstanding any pro-
vision of any other law, at the request of the Institute, to approve 
the use of grants which educational or other agencies are eligible 
to receive under such Acts (in cases where such agencies agree 
to the uses of such grants), in order to carry out such experi-
mental programs; 
(E) findings and recommendations, including recommenda-
tions for changes in such Acts or for new legislation, with respect 
to the matters studied under clauses (A) through (E); and 
(F) a review and evaluation of the effectiveness of programs 
funded under subpart 5 of part A of the Vocational Education 
Act of 1963 (as such Act is in effect on October 1, 1977), and to 
make recommendations for the redirection and the improvement 
of programs at all levels funded under such subpart. 
Report to 
congressional 
committees. 
Sex 
discrimination. 
20 u s e 2563. 
Ante, p. 2169. 
Report to 
Congress. 
Ante, p. 2227. 
29 u s e 801 note. 
20 u s e 1001 
note. 
Ante, p. 2196. 
90 STAT. 2240 
PUBLIC LAW 94-482—OCT. 12, 1976 
Report to 
President and 
Congress. 
20 use 1242. 
20 use 1243. 
Plan, submittal to 
eongress. 
(2) The Institute shall make an interim report to the President and 
to the Congress not later than September 30, 1979, and shall make a 
final report to the President and to the Congress no later than Septem-
ber 30, 1980, on the result of its study conducted under this section, 
except that the report required pursuant to paragraph (1) (F) shall 
be transmitted to the President and the Congress not later than Janu-
ary 15, 1979. Any other provision of law, rule, or regulation to the 
contrary notwithstanding, such reports shall not be submitted to any 
review outside of the Institute before their transmittal to the Congress, 
but the President and the Commissioner may make to the Congress 
such recommendations with respect to the content of the reports as 
each may deem appropriate. 
(3) Sums made available pursuant to section 102 of the Vocational 
Education Act of 1963 (as such Act is in effect on the date of the enact-
ment of this Act) and sections 102 and 103 of the Vocational Educa-
tion Act of 1963 (as such Act is in effect on October 1, 1977) shall 
be available to carry out the administrative and direct cost require-
ments of the provisions of this section. These funds shall not exceed 
$1,000,000 per year for each of the fiscal years ending prior to Octo-
ber 1, 1979. Ten per centum of the funds made available under this 
section shall be made available for purposes of carrying out the pro-
visions of paragraph (1) (F). 
(4) (A) The Institute shall submit to the Congress, within 10 
months after the date appropriations become available to carry out 
this section, a plan for the study to be conducted under this section. 
The Institute shall not commence such study until the first day after 
the close of the first period of 30 calendar days of continuous session 
of the Congress after the date of the delivery of such plan to the 
Congress. 
(B) For purposes of subparagraph (A) — 
(i) continuity of session is broken only by an adjournment of 
the Congress sine die; and 
(ii) the days on which either House is not in session because of 
an adjournment of more than 30 days to a day certain are 
excluded in the computation of the 30-day period. 
DEPARTMENTAL DAY CARE CENTER 
20 use 2564. 
SEC. 524. Notwithstanding any other provision of law, the Secretary 
of Health, Education, and Welfare is authorized by contract or other-
wise to establish, equip, and operate day care center facilities for the 
purpose of serving children who are members of households of 
employees of the Department of Health, Education, and Welfare. The 
Secretary is authorized to establish or provide for the establishment of 
appropriate fees and charges to be chargeable against the Department 
employees or others who are beneficiaries of services provided by such 
facilities to pay for the cost of their operation and to accept money, 
equipment, or other property donated for use in connection with the 
facilities. No appropriated funds may be used for the equipping or 
operation of any centers provided under this authority. The prohibi-
tion made by the preceding sentence shall not preclude the provision 
of appropriate donated space nor the purchase of the initial equip-
ment for the centers, except that the cost of such equipment shall be 
reimbursed over the expected life of such equipment, not to exceed 10 
years. 
PUBLIC LAW 94-482—OCT. 12, 1976 
90 STAT. 2241 
WAYNE MORSE CHAIR OF LAW AND POLITICS 
SEC. 525. (a) The Commissioner of Education (hereinafter in this 
section referred to as the "Commissioner") is authorized to provide 
financial assistance in accordance with the provisions of this section to 
assist in establishing the Wayne Morse Chair of Law and Politics 
at the University of Oref^on, of Eugene, Oregon. 
(b) (1) For purposes of this section, the Federal share of the 
cost of establishing the Wayne Morse Chair of Law and Politics shall 
not exceed 50 per centum. 
(2) Xo financial assistance under this section may be made except 
upon an application at such time, in such manner, and containing or 
accompanied by such information, as the Commissioner may reason-
ably require. 
(c) There are authorized to be appropriated such sums, not to exceed 
$500,000, as may be necessary to carry out the provisions of this sec-
tion. Funds appropriated pursuant to this section shall remain avail-
able until expended. 
PART C—TRANSITION PERIOD; EFFECTIVE 
DATES 
20 use 2565. 
Appropriation 
authorization. 
TRANSITION 
PERIOD 
SEC. 531. There are authorized to be appropriated such sums as may 
be necessary for the period July 1, 1976, through September 30, 1976, 
to carry out each program authorized by this Act and each program 
amended by this Act, except for any program which is to become effec-
tive in fiscal vear 1977 or thereafter. 
Appropriation 
authorization. 
20 use 1001 
note. 
EFFECTIVE 
DATES 
SEC. 532. The provisions of this Act and the amendments made by 
this Act shall take effect 30 days after the date of the enactment of this 
Act except— 
(1) as specifically otherAvise provided; and 
(2) that each amendment made by this Act (not subject to 
clause (1) of this section) providing for authorization of appro-
priations shall take effect July 1,1976. 
Approved October 12, 1976. 
20 use 1001 
note. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-1085 accompanying H.R. 12835, No. 94-1086 accompany-
ing H.R. 12851 and No. 94-1232 accompanying H.R. 14070 (all 
from eomm. on Education and Labor) and No. 94-1701 (eomm. of 
eonference). 
SENATE REPORT No. 94-882 (eomm. on Labor and Public Welfare). 
eONGRESSIONAL REeORD, Vol. 122 (1976): 
Aug. 26, 27, considered and passed Senate. 
Aug. 31, considered and passed House, amended, in lieu of H.R. 12835, H.R. 
12851, and H.R. 14070. 
Sept. 28, Senate agreed to conference report. 
Sept. 29, House agreed to conference report.