An Act to amend the Higher Education Act of 1965 to authorize Federal incentive payments to lenders with respect to insured student loans when necessary, in the light of economic conditions, in order to assure that students will have reasonable access to such loans for financing their education
PL 91-95 (H.R.13194), enacted 10/22/1969

82 Stat. 453. 
83 STAT. ] 
PUBLIC L
A
W 91-95-OCT. 22, 1969 
141 
Public Law 91-94 
J O I N T RESOLUTION 
October 20, 1969 
To amend section 19(e) of the Securities Exchange Act of 1934. 
[s.j. Res. 112] 
Whereas additional time is required for the Securities and Exchange 
Commission to complete its institutional investors study, and file a 
report with respect thereto, pursuant to section 19 (e) of the Secu-
rities Exchange Act of 1934: Now, therefore, be it 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assembled, That section 19(e) of the chan^gTA'ct^of"" 
Securities Exchange Act of 1934 (15 U.S.C. 78s(e)) is amended— 
^^^^ of^^^l^f" 
*
* 
(1) by striking out in paragraph (1) "September 1,1969" and 
inserting in lieu thereof "September 1,1970"; and 
(2) by striking out in paragraph (4) "$875,000" and inserting 
in lieu thereof "$945,000". 
Approved October 20, 1969. 
Public Law 91-95 
AN ACT 
October 22, 1969 
To authorize special allowances for lenders with respect to insured student 
[H. R. 13194] 
loans under title IV-B of the Higher Education Act of 1965 when necessary 
in the light of economic conditions in order to assure that students will have 
reasonable access to such loans for financing their education, and to increase 
the authorizatiojis for certain other student assistance programs. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may Emergency 
be cited as the "Emergency Insured Student Loan Act of 1969". 
i^o^n^ct of^1*969. 
INCENTIVE PAYMENTS ON INSURED STUDENT LOANS 
f SEC. 2. (a)(1) Whenever the Secretary of Health, Education, and 
Welfare determines that the limitations on interest or other condi-
tions (or both) applicable under part B of title IV of the Higher 
Education Act of 1965 (Public Law 89-329) to student loans eligible 
^^ stau U36^ 
for insurance by the Commissioner of Education or under a State or io87. 
nonprofit private insurance program covered by an agreement under 
section 428(b) of such Act, considered in the light of the then current 
economic conditions and in particular the relevant money market, 
are impeding or threatening to impede the carrying out of the pur-
poses of such part B and have caused the return to holders of such 
loans to be less than equitable, he is hereby authorized, by regulation 
applicable to a three-month period specified therein, to prescribe 
(after consultation with the Secretary of the Treasury and the heads 
of other appropriate agencies) a special allowance to be paid by the 
Commissioner of Education to each holder of an eligible loan or loans. 
The amount of such allowance to any holder with respect to such 
Amount. 
j^riod shall be a percentage, specified in such regulation, of the aver-
age unpaid balance of disbursed principal (not including interest 
added to principal) of all eligible loans held by such holder during 
such period, which balance shall be computed in a manner specified 
142 
PUBLIC LAW 91-95-OCT. 22, 1969 
[83 
STAT. 
National or 
regional allow-
ance rates. 
Effective date 
of payment. 
82 Stat. 1063. 
20 use 1001 
note. 
Publication 
in Federal 
Register. 
Discrimination. 
79 Stat. 1236. 
20 use 1071-
1087. 
Report to 
Congress. 
Financial as-
sistance oppoi^ 
tunities. 
Regulations by 
H
E
W Secretary. 
in such, regulation; Tnit no such percentage slialllBe set at a rate in 
excess of 3 per centum per annum. 
(2) A determination pursuant to paragraph (1) may be made by the 
Secretary of Health, Education, and Welfare, on a national, regional, 
or other appropriate basis and the regulation based thereon may, 
accordingly, set differing allowance rates for different regions or other 
areas or classifications of lenders, within the limit of the maximum rate 
set forth in paragraph (1). 
(3) For each three-month period with respect to which the Secre-
tary of Health, Education, and Welfare prescribes a si^ecial allowance, 
the determination required by paragraph (1) shall be made, and the 
percentage rate applicable thereto shall be set, by promulgation of a 
new regulation or by amendment to a regulation applicable to a prior 
period or periods. 
(4) The special allowance established 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 
Act. 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 allowance from the Commissioner. 
(5) Each regulation or amendment, prescribed under this Act, 
which establishes a special allowance with respect to a three-month, 
period specified in the regulation or amendment shall, notwithstanding 
section 505 of the Higher Education Amendments of 1968, apply to 
the three-month period immediately preceding the period in which 
such regulation or amendment is j)ublished in the Federal Register, 
except that the first such regulation may be made effective as of 
August 1, 1969, and notAvithstanding other provisions of this section 
requiring a three-month period, may be made effective for a period of 
less than three months. 
(6) (A) The Secretary of Healtli, Education, and Welfare shall 
determine, with respect to the student insured loan program as author-
ized under part B of title IV of the Higher Education Act of 1965 and 
this Act, whether there are any practices of lending institutions which 
may result in discrimination against particular classes or categories of 
students, including the requirement that as a condition to the receipt 
of a loan the student or his family maintain a business relationship 
with the lender, the consequences of such requirement, and the prac-
tice of refusing to make loans to students for their freshman year of 
study, and also including any discrimination on the basis of sex, color, 
creed, or national origin. The Secretary shall make a report with 
respect to such determination, and his recommendations, to the Con-
gress on or before March 1,1970. 
(B) If, after making such determination, the Secretary finds that, in 
any area, a substantial number of eligible students are denied a fair 
opportunity to obtain an insured student loan because of practices of 
lending institutions in the area which limit student participation, (i) 
he shall take such steps as may be appropriate, after consultation with 
the appropriate State guarantee agencies and the Advisory Council on 
Financial Aid to Students, relating to such practices and to encourage 
the development in such area of a plan to increase the availability of 
financial assistance opportunities for such students, and (ii) he shall, 
within sixty days after making such determination, adopt or amend 
83 STAT. ] 
PUBLIC LAW 91-95-OCT. 22, 1969 
_ 
143 
appropriate regulations pertaining to the student insured loan pro-
gram to prevent, where practicable, any practices which he finds have 
denied loans to a substantial number of students. 
(7) As used in this Act, the term "eligible loan" means a loan made Jan."^'^^^ 
on or after August 1,1969^ and prior to Julv 1,1971, which is insured 
under title IV-B of the Higher Education Act of 1965, or made under 
a program covered by an agreement under section 428(b) of such Act. 
^o use lors. 
(b) The Commissioner of Education shall pay to the holder of an 
eligible loan, at such time or times as are specified in regulations, a spe-
cial 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 infor-
mation as may be required by regulation for the purpose of enabling 
the Secretary of Health, Education, and Welfare and the Commis-
sioner to carry out their functions under this Act and to carry out the 
purposes of this Act. 
(c) (1) There are hereby authorized to be appropriated for special 
Appropriation. 
allowances as authorized by this section not to exceed $20,000,000 for the 
fiscal year ending June 30,1970, $40,000,000 for the fiscal year ending 
June 30, 1971, and for succeeding fiscal years such sums as may be 
necessary. 
(2) Sums available for expenditure pursuant to appropriations 
made for the fiscal year ending June 30, 1969, under section 421(b) 
(other than clause (1) thereof) of the Higher Education Act of 1965 82^stat!*io2'u^' 
shall be available for payment of special allowances under this Act. 
20 use loy'i. 
The authorization in paragraph (1) shall be reduced by the amount 
made available pursuant to this paragraph. 
INCREASED AUTHORIZATION FOR THE NATIONAL DEFENSE STUDENT LOAN 
PROGRAM 
SEC. 3. Section 201 of the National Defense Education Act of 1958 f
^ ^^s^c*'/^"^'*' 
is amended by striking out "$275,000,000 for the fiscal year ending 
June 30, 1970, and, $300,000,000 for the fiscal year ending June 30, 
1971" and inserting in lieu thereof "$325,000,000 for the fiscal year end-
ing June 30,191'0, and $375,000,000 for the fiscal year ending June 30, 
1971". 
INCREASED AUTHORIZATION FOR THE EDUCATIONAL OPPORTUNITY GRANT 
PROGRAM 
SEC. 4. Section 401(b) of the Higher Education Act of 1965 is 
IH'^'-1^^^-
amended by striking out "$100,000,000 for the fiscal year ending June 
30,1970, and $140,000,000 for the fiscal year ending June 30,1971" and 
inserting in lieu thereof "$125,000,000 for the fiscal year ending June 
30,1970, and $170,000,000 for the fiscal year ending June 30, 1971". 
INCREASED AUTHORIZATION FOR THE WORK-STUDY PROGRAM 
SEC. 5. Section 441(b) of the Higher Education Act of 1965 is 
Hfj^i^'lfi^-
amended by striking out "$250,000,000 for the fiscal year ending June 
30,1970, and $285,000,000 for the fiscal year ending June 30,1971" and 
inserting in lieu thereof "$275,000,000 for the fiscal year ending June 
30,1970, and $320,000,000 for the fiscal year ending June 30, 1971". 
Approved October 22, 1969.