An Act to amend chapter 35 of title 38, United States Code, to provide that after the expiration of the Korean conflict veterans education and training program, approval of courses under the war orphans educational assistance program shall be by State approving agencies
PL 88-126 (S.330), enacted 09/23/1963

158 
PUBLIC LAW 88-126-SEPT. 23, 1963 
[77 STAT. 
Public Law 88-126 
September 2 3, 1963. 
[S. 330] 
AN ACT 
Veterans. 
Education pro-
grams. 
72 Stat. 1193. 
38 
use 1701-
1768. 
72 
Stat. 1174. 
38 
use 1601-
1669. 
72 
Stat. 
1199. 
38 
use 1740-
1743. 
To amend chapter 35 of title 38, United States Code, to provide that after the 
expiration of the Korean conflict veterans' education and training program, 
approval of courses under the war orphan's educational assistance program 
shall be by State approving agencies. 
Be it enacted by the Seriate and House of Representatives 
of the 
United States of America in Congress assembled^ That chapter 35 of 
title 38, United States Code, is amended by adding at the end thereof 
the follovs^ing: 
"Subchapter VII—State Approving Agencies 
"§ 1771. Designation 
"(a) Unless otherwise established by the law of the State concerned, 
the chief executive of each State is requested to create or designate 
a State department or agency as the 'State approving agency' for 
his State for the purposes of this chapter after the date for the 
expiration of all education and training provided for in chapter 33 of 
this title. Such agency may be the agency designated or created in 
accordance with section 1641 of this title. 
"(b)(1) If any State fails or declines to create or designate a 
State approving agency, the provisions of this chapter which refer 
to the State approving agency shall, with respect to such State, be 
deemed to refer to the Administrator. 
"(2) In the case of courses subject to approval by the Administra-
tor under section 1772 of this title, the provisions of this chapter 
which refer to a State approving agency shall be deemed to refer 
to the Administrator. 
"§ 1772. Approval of courses 
"(a) An eligible person shall receive the benefits of this chapter 
while enrolled in a course of education offered by an educational 
institution only if (1) such course is approved as provided in this 
chapter by the State approving agency for the State where such 
educational institution is located, or by the Administrator, or (2) 
such course is approved (A) for the enrollment of the particular 
individual under the provisions of section 1737 of this title or (B) 
for special restorative training under subchapter V of this chapter. 
Approval of courses by State approving agencies shall be in accord-
ance with the provisions of this chapter and such other regulations 
and policies as the State approving agency may adopt. 
Each State 
approving agency shall furnish the Administrator with a current 
list of educational institutions specifying courses which it has 
approved, and, in addition to such list, it shall furnish such other infor-
mation to the Administrator as it and the Administrator may deter-
mine to be necessary to carry out the purposes of this chapter. 
Each State approving agency shall notify the Administrator of the 
disapproval of any course previously approved and shall set forth the 
reasons for such disapproval. 
"(b) The Administrator shall be responsible for the approval of 
courses of education offered by any agency of the Federal Govern-
ment authorized under other laws to supervise such education. 
The 
Administrator may approve any course in any other educational 
institution in accordance with the provisions of this chapter. 
"§ 1773. Cooperation 
"(a) The Administrator and each State approving agency shall 
take cognizance of the fact that definite duties, functions, and respon-
sibilities are conferred upon the Administrator and each State 
77 STAT. ] 
PUBLIC L
A
W 88-126-SEPT. 23, 1963 
159 
approving agency under the educational programs established under 
this chapter, 
l o assure that such programs are effectively £i,iid 
efficiently administered, the cooperation of the Administrator and 
the State approving agencies is essential. It is necessary to estab-
lish an exchange of information pertaining to activities of educa-
tional institutions, and particular attention should be given to the 
enforcement of approval standards, enforcement of enrollment 
restrictions, and fraudulent and other criminal activities on the part 
of persons connected with educational institutions in which eligible 
persons are enrolled under this chapter. 
" (b) The Administrator will furnish the State approving agencies 
with copies of such Veterans' Administration informational material 
as may aid them in carrying out this chapter. 
"§ 1774. Reimbursement of expenses 
"The Administrator is authorized to enter into contracts or agree-
ments with State and local agencies to pay such State and local 
agencies for reasonable and necessary expenses of salary and travel 
incurred by employees of such agencies in (1) rendering necessaiy 
services in ascertaining the qualifications of educational institutions 
for furnishing courses of education to eligible persons under this 
chapter, and in the supervision of such educational institutions, and 
(2) furnishing, at the request of the Administrator, any other serv-
ices in connection with this chapter. 
Each such contract or agree-
ment shall be conditioned upon compliance with the standards and 
provisions of this chapter. 
"§ 1775. Approval of accredited courses 
"(a) A State approving agency may approve the courses offered 
by an educational institution when— 
"(1) such courses have been accredited and approved by a 
nationally recognized accrediting agency. or association; 
"(2) such courses are conducted under sections 11-28 of 
title 20; or 
"(3) such courses are accepted by the State department of 
education for credit for a teacher's certificate or a teacher's 
degree. 
For the purposes of this chapter the Commissioner of Education 
shall publish a list of nationally recognized accrediting agencies and 
associations which he determines to be reliable authority as to the 
quality of training offered by an educational institution and the 
State approving agencies may, upon concurrence, utilize the accredi-
tation of such accrediting associations or agencies for approval of 
the courses specifically accredited and approved by such accrediting 
association or agency. 
In making application for approval, the 
institution shall transmit to the State approving agency copies of its 
catalog or bulletin. 
"(b) As a condition to approval under this section, the State 
approving agency must find that adequate records are kept by the 
educational institution to show the progress of each eligible person. 
The State approving agency must also find that the educational 
institution maintains a written record of the previous education and 
training of the eligible person and clearly indicates that appropriate 
credit has been given by the institution for previous education and 
training, with the training period shortened proportionately and 
the eligible person and the Administrator so notified. 
*
*
§ 1776. Approval of nonaccredited courses 
"(a) No course of education which has not been approved by a 
State approving agency pn^'eiiant to section 1653 or 1775 of this title, 
72 stat. use. 
160 
PUBLIC LAW 88-126-SEPT. 23, 1963 
[77 STAT. 
which is offered by a public or private, profit or nonprofit, educa-
tional institution shall be approved for the purposes of this chapter 
unless the educational institution offering such course submits to 
the appropriate State approving agency a written application for 
approval of such course in accordance with the provisions of this 
chapter. 
"(b) Such application shall be accompanied by not less than two 
copies of the current catalog or bulletin which is certified as true and 
correct in content and policy by an authorized owner or official and 
includes the following: 
"(1) Identifying data, such as volume number and date of 
publication; 
"(2) Names of the institution and its governing body, officials 
and faculty; 
"(3) A calendar of the institution showing legal holidays, 
beginning and ending date of each quarter, term, or semester, 
and other important dates; 
"(4) Institution policy and regulations on enrollment with 
respect to enrollment dates and specific entrance requirements 
for each course; 
"(5) Institution policy and regulations relative to leave, 
absences, class cuts, makeup work, tardiness and interruptions 
for unsatisfactory attendance; 
"(6) Institution policy and regulations relative to standards 
of progress required of the student by the institution (this policy 
will define the grading system of the institution, the minimum 
grades considered satisfactory, conditions for interruption for 
unsatisfactory grades or progress and a description of the proba-
tionary period, if any, allowed by the institution, and conditions 
of reentrance for those students dismissed for unsatisfactory 
progress. A statement will be made regarding progress records 
kept by the institution and furnished the student) ; 
"(7) Institution policy and regulations relating to student 
conduct and conditions for dismissal for unsatisfactory conduct; 
"(8) Detailed schedules of fees, charges for tuition, books, 
supplies, tools, student activities, laboratory fees, service charges, 
rentals, deposits, and all other charges; 
"(9) Policy and regulations of the institution relative to the 
refund of the unused portion of tuition, fees, and other charges 
in the event the student does not enter the course or withdraws 
or is discontinued therefrom; 
"(10) A description of the available space, facilities, and 
equipment; 
"(11) A course outline for each course for which approval 
is requested, showing subjects or units in the course, type of work 
or skill to be learned, and approximate time and clock hours to 
be spent on each subject or unit; and 
"(12) Policy and regulations of the institution relative to 
granting credit for previous educational training. 
"(c) The appropriate State approving agency may approve the 
application of such institution when the institution and its non-
accredited courses are found upon investigation to have met the 
following criteria: 
"(1) The courses, curriculum, and instruction are consistent 
in quality, content, and length with similar courses in public 
schools and other private schools in the State, with recognized 
accepted standards. 
77 STAT. ] 
PUBLIC LAW 88-126-SEPT. 23, 1963 
161 
"(2) There is in the institution adequate space, equipment, 
instructional material, and instructor personnel to provide train-
ing of good quality. 
"(3) Educational and experience qualifications of directors, 
administrators, and instructors are adequate. 
"(4) The institution maintains a written record of the 
previous education and training of the eligible person and 
clearly indicates that appropriate credit has been given by the 
institution for previous education and training, with the train-
ing period shortened proportionately and the eligible person and 
the Administrator so notified. 
"(5) A copy of the course outline, schedule of tuition, fees, 
and other charges, regulations pertaining to absence, grading 
policy, and rules of operation and conduct w^ll be furnished the 
eligible person upon enrollment. 
"(6) Upon completion of training, the eligible person is 
given a certificate by the institution indicating the approved 
course and indicating that training w^as satisfactorily completed. 
"(7) Adequate records as prescribed by the State approving 
agency are kept to show^ attendance and progress or grades, and 
satisfactory standards relating to attendance, progress, and 
conduct are enforced. 
"(8) The institution complies with all local, city, county, 
municipal. State, and Federal regulations, such as fire codes, 
building and sanitation codes. 
The State approving agency 
may require such evidence of compliance as is deemed necessary. 
"(9) The institution is financially sound and capable of ful-
filling its commitments for training. 
"(10) The institution does not utilize advertising of any type 
which is erroneous or misleading, either by actual statement, 
omission, or intimation. 
The institution shall not be deemed 
to have met this requirement until the State approving agency 
(A) 
has ascertained from the Federal Trade Commission 
whether the Commission has issued an order to the institution 
to cease and desist from any act or practice, and (B) has, if such 
an order has been issued, given due weight to that fact. 
"(11) The institution does not exceed its enrollment limita-
tions as established by the State approving agency. 
"(12) The institution's administrators, directors, owners, and 
instructors are of good reputation and character. 
"(13) The institution has and maintains a policy for the 
refund of the unused portion of tuition, fees, and other charges 
in the event the eligible person fails to enter the course or with-
draws or is discontinued therefrom at any time prior to com-
pletion and such policy must provide that the amount charged 
to the eligible person for tuition, fees, and other charges for a 
portion of the course shall not exceed the approximate pro rata 
portion of the total charges for tuition, fees, and other charges 
that the length of the completed portion of the course bears to 
its total length. 
"(14) Such additional criteria as may be deemed necessary 
by the State approving agency. 
93-025 0-64-13 
162 
PUBLIC LAW 88-126-SEPT. 23, 1963 
[77 STAT. 
"§ 1777. Notice of approval of courses 
"The State approving agency, upon determining that an educa-
tional institution has complied with all the requirements of this 
chapter, will issue a letter to such institution setting forth the 
courses which have been approved for the purposes of this chapter, 
and will furnish an official copy of such letter and any subsequent 
amendments to the Administrator. 
The letter of approval shall be 
accompanied by a copy of the catalog or bulletin of the institution, 
as approved by the State approving agency, and shall contain the 
following information: 
" (1) date of letter and effective date of approval of courses; 
" (2) proper address and name of each educational institution; 
"(3) authority for approval and conditions of approval, 
referring specifically to the approved catalog or bulletin pub-
lished by the educational institution; 
" (4) name of each course approved; 
"(5) where applicable, enrollment limitations such as maxi-
mum numbers authorized and student-teacher ratio; 
"(6) signature of responsible official of State approving 
agency; and 
"(7) such other fair and reasonable provisions as are con-
sidered necessary by the appropriate State approving agency. 
"§ 1778. Disapproval of courses 
"(a) Any course approved for the purposes of this chapter which 
fails to meet any of the requirements of this chapter shall be imme-
diately disapproved by the appropriate State approving agency. 
An educational institution which has its courses disapproved by 
a State approving agency will be notified of such disapproval 
by a certified or registered letter of notification and a return receipt 
secured. 
"(b) Each State approving agency shall notify the Administrator 
of each course which it has disapproved under this section. 
The 
Administrator shall notify the State approving agency of his disap-
72 Stat. 1171. 
proval of any educational institution under chapter 31 of this title." 
38 use 1501- 
SEC. 2. Section 1735 of title 38, United States Code, is amended 
7
2 Stat. 1199. 
(1) by Striking out "An" in subsection (a) and inserting in lieu 
(hereof "Until the date for the expiration of all education and train-
ing under chapter 33 of this title, and"; (2) by inserting immediately 
after "this section" in subsection (a) the following "or subchapter 
VII of this chapter"; (3) by inserting immediately after "section 
1656" in subsection (b) the following "or section 1778"; and (4) 
by striking out subsection (c). 
SEC. 3. Section 1736 of title 38, United States Code, is amended 
(1) by inserting " ( a ) " immediately before "The Administrator"; 
(2) by striking out "or any of the standards and criteria of sections 
1653 and 1654 of this title"; and (3) by adding at the end thereof 
the following: 
"(b) Until the date for the expiration of all education and 
72 Stat. 1174. 
training under chapter 33 of this title, the Administrator may dis-
ss use 1601- 
continue the educational assistance allowance of any eligible person 
if he finds that the course of education in which the eligible person 
is enrolled fails to meet any of the standards and criteria of sections 
1653 and 1654 of this title." 
SEC. 4. Section 1737 of title 38, United States Code, is amended by 
striking out "Notwithstanding the provisions of subsections (b) and 
(c) of section 1735 of this title, the^^ and inserting in lieu thereof 
"The". 
1510. 
1669. 
77 STAT.] 
PUBLIC LAW 88-127-SEPT. 23, 1963 
163 
SEC. .5. The analysis of chapter H5 of title 88, United States (^ode, 
is amended by adding at the end thereof the following: 
"SriBCHAPTKK Vll—STATE APPROVING AGENCIES 
•'1771. Desigiirttiou. 
"1772. Approval of courses. 
•'1773. C'oopei'atioii. 
"1774. Reimbursement of expenses. 
"1775. Approval of accredited courses. 
"1776. Approval (•f uonaccre<lited courses. 
"1777. Notice of approval of courses. 
"1778. Disapproval of cour.ses." 
Approved September 23, 1963. 
Public Law 88-127 
A N A C T 
September 23, 1963 
I'o extend and broaden the authority to insure mortgages under sections 809 and 
^^" ^^^^^ 
810 of the National Housing Act. 
Be it eTioGted hy the Sermte and House of Representatives 
of the 
United States of America in Congress assembled^ That section 809 of 
the National Housing Act is amended— 
(1) by striking out "October 1, 1963" in subsection (f) and 
inserting in lieu thereof "October 1, 1965"; 
(2) by striking out the first sentence of subsection (g) (1) and 
inserting in lieu thereof the following: "A mortgage secured by 
property which is intended to provide housing for a person (i) 
employed or assigned to duty at or in connection with any 
research or development installation of the National Aeronau-
tics and Space Administration and which is located at or near 
such installation, or (ii) employed at any research or develop-
ment installation of the Atomic Energy Commission and which is 
located at or near such installation, may (if the mortgage other-
wise meets the requirements of this section) be insured by the 
Commissioner under the provisions of this section."; and 
(3) by striking out clause (B) in subsection (g)(2)(iii) and 
inserting in lieu thereof the following: "(B) persons employed at 
or in connection with any research or development installation of 
the Atomic Energy Commission, as the case may be;". 
SEC. 2. Section 810 of the National Housing Act is amended— 
(1) by striking out clause (1) of subsection (b) and inserting 
in lieu thereof the following: "(1) the housing which is covered 
by the insured mortgage is necessary in the interest of national 
security in order to provide adequate housing for (A) military 
personnel and essential civilian personnel serving or employed in 
connection with any installation of one of the armed services of 
the United States, or (B) essential personnel employed or 
assigned to duty at or in connection with any research or develop-
ment installation of the National Aeronautics and 
Space 
Administration or of the Atomic Energy Commission,"; 
(2) by striking out in the second sentence of subsection (d) 
"and employees of contractors for the armed services", and insert-
ing in lieu thereof the following: "employees of contractors for 
the armed services, and persons described in clause (1)(B) of 
subsection (b) of this section"; and 
(3) by striking out "October 1, 1963" in subsection (k) and 
inserting in lieu thereof "October 1,1965". 
Approved September 23, 1963. 
National Housing 
Act, amendment. 
Mortgages. 
70 Stat. 273; 
76 Stat. 418. 
12 u s e 1748h-l. 
74 Stat. 915. 
12 u s e 1748h-l. 
73 Stat. 683; 
75 Stat. 180. 
12 u s e 1748h-2. 
12 u s e 1748h-2. 
73 Stat. 683; 
76 Stat. 418. 
12 u s e 1748h-2.