An Act to make certain technical and miscellaneous amendments to provisions relating to higher education contained in the Education Amendments of 1976.
PL 95-43 (H.R.6774), enacted 06/15/1977

PUBLIC LAW 95-43—JUNE 15, 1977 
91 STAT. 213 
Public Law 95-43 
95th Congress 
An Act 
To make certain technical and miscellaneous amendments to provisions relating 
to higher education contained in the Education Amendments of 1976. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That (a) the Higher 
Education Act of 1965 is amended as follows: 
(1) Section 103(a) of the Higher Education Act of 1965 is amended 
by striking out "July 1, 1975" and inserting in lieu thereof "July 1, 
1974". 
(2) Section 104 of such Act is amended by striking out the comma 
after "material sharing programs". 
(3) Section 105(a) (6) of such Act is amended by inserting "pro-
vide" immediately before "assurances". 
(4) Section 133(a)(7) of such Act is amended by striking out 
"Commissioner's" and inserting in lieu thereof "Assistant Secretary's". 
(5) (A) Section 411(b) (3) (B) of the Act is amended by redesig-
nating divisions (ii), (iii), and (iv) as divisions (iii), (iv), and (v), 
respectively, and by inserting after division (i) the following: 
"(ii) If, during any fiscal year, funds available for making 
payments under this subpart exceed the amount necessary to make 
the payments prescribed in division (i), such excess shall be paid 
with respect to each entitlement under this subpart in proportion 
to the degree to which that entitlement is unsatisfied.". 
(B) Subparagraphs (A) and (B) of section 411(b) (4) of the Act 
are each amended by inserting ", at the end of a fiscal year," after 
(6) Section 415C(b)(4) of such Act is amended by striking out 
"July 1,1977" and inserting in lieu thereof "October 1,1978". 
(7) Section 415E of such Act is amended by striking out "having 
an agreement under section 428(b)" and inserting in lieu thereof 
"operating, through an agency of the State or through a nonprofit 
private institution or organization designated by a State, a program 
under section 428 (b)". 
(8) Section 421(a) of such Act is amended by striking out "428(c) 
(1) (A)" and inserting in lieu thereof "428(a) (1) (C)". 
(9) Sections 421(b)(3) and 427(a) (2) (E) of such Act are each 
amended by striking out the period at the end thereof and inserting 
in lieu thereof a comma. 
(10) Section 421(c)(1) of such Act is amended by inserting 
"(whether operated by an agency of the State or by a nonprofit 
private institution or organization designated by the State)" after 
"by each State". 
(11) Section 422(c) (2) of such Act is amended— 
(A) in subparagraph (A)— 
(i) by striking out "the greater of (i) $50,000, or (ii)"; 
(ii) by inserting "of loans made by lenders and" after "10 
per centum of the principal amount"; 
(B) in subparagraph (B), by inserting at the end thereof the 
following new sentence: "Notwithstanding subparagraph (A) 
and the preceding sentence of this subparagraph, but subject to 
subparagraph (D) of this paragraph, the amount of any advance 
June 15, 1977 
[H.R. 6774] 
Higher Education 
Act of 1965, 
amendments. 
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Post, p. 215. 
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91 STAT. 214 
PUBLIC LAW 95-43—JUNE 15, 1977 
to a State described in paragraph (5) (A) for the first year of its 
eligibility under snch paragraph, and the amount of any advance 
to any State described in paragraph (5) (B) for each year of its 
eligibility under such paragraph, shall not be less than $50,000."; 
• --• 
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V, 
a n d 
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(C) by adding after subparagraph (C) the following new 
subparagraph: 
"(D) If the sums appropriated for any fiscal year for paying the 
amounts determined under subparagraphs (A) and (B) are not suffi-
cient to pay such amounts in full, then such amounts shall be reduced— 
" (i) by ratably reducing that portion of the amount allocated to 
each State which exceeds $50,000; and 
"(ii) if further reduction is required, by equally reducing the 
'' <• 
$50,{)00 minimum allocation of each State, 
If additional sums become available for paying such amounts 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.". 
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(12) Section 422(c) (5) (B) of such Act is amended by inserting 
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' - after "effective date of this subsection" the following: "or which is 
not actively carrying on a program under an agreement pursuant to 
such section on such date". 
(13) Section 422(c) (6) (B) (iii) of such Act is amended by inserting 
"eligible" inmiediately before "institution" each place it appears. 
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(^i^^ Section 423(b) of such Act is amended by striking out "or" 
at the end of paragraph (1), by striking out the period at the end of 
paragraph (2) and inserting in lieu thereof ", or", and by adding 
after such paragraph the following: 
" (3) under such circumstances as may be approved by the State 
or nonprofit private institution or organization in such State with 
Post, p. 215. " 
>
* which the Commissioner has an agreement under section 428(b), 
for the insurance of a loan to a borrower for whom such lender 
:. 
previously was issued such a certificate if the loan covered by such 
certificate is not yet repaid.". 
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(15) Section 425(a)(1) (A) of such Act is amended— 
(A) by striking out "a loan to a student who is or will be in his 
first year of a program of undergraduate education" and insert-
• • ' • • ''•' 
ing in lieu thereof "loans to a student for his first academic year of 
a program of postsecondary education"; 
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• • 
(B) by striking out "program which is" and inserting in lieu 
'r~.' thereof "program, which are"; 
(C) by striking out "or which is" and inserting in lieu thereof 
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i 
"or which are"; and 
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(D) by striking out "the loan" and inserting in lieu thereof "the 
total of such loans". 
(16) Section 425(a) (1) (B) of such Act is amended by striking out 
" 
"to a student for his first academic year of postsecondary education" 
and inserting in lieu thereof "to such a first-year student". 
(17) Section 425(a) (1) of such Act is amended by inserting after 
the last sentence thereof the following: "For the purpose of clause 
(B), all loans made within any period of 90 days shall be considered a 
single loan.". 
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(18) Section 427(a) (2) (G) of such Act is amended by striking out 
the semicolon at the end thereof and inserting in lieu thereof a comma. 
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(19) The last sentence of section 428(a)(8)(A) of such Act is 
amended by striking out "over the course of the academic year" and 
inserting in lieu thereof "over the period of enrollment for which the 
loan is made". 
PUBLIC LAW 95-43—JUNE 15, 1977 
91 STAT. 215 
(20) Section 428(a) (9) of such Act is amended— 
20 USC 1078. 
(A) by inserting "a determination must be made as to whether" 
after "for which"; 
(B) by striking out "the determinations to be made (except the 
determinations of good standing)" and inserting in lieu therof 
"the determination to be made"; and 
(C) by striking out "(2) (A) (i) and". 
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(21) Section 428(b) (1) (A) of such Act is amended— 
(A) by inserting "in any academic year or its equivalent (as 
determined under regulations of the Commissioner)" after "(A) 
authorizes the insurance"; 
• 
(B) in division (i) — 
(i) by striking out "a loan which is made" and inserting in 
lieu thereof "loans which are made"; 
(ii) by striking out "or which is" and inserting in lieu 
thereof "or which are"; and 
(iii) by striking out "to a student who has not successfully 
completed a program of undergraduate education in an 
amount in excess" and inserting in lieu thereof "to a student 
for his first academic year of a program of postsecondary 
education, and who has not previously enrolled in such a 
program, in an amount in excess of the lesser"; 
(C) in division (ii), by striking out "to a student for his first 
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academic year of postsecondary education" and inserting in lieu 
thereof "to such a first-year student"; and 
(D) by inserting immediately before the semicolon at the end 
thereof the following: ", and all loans issued within any period of 
90 days shall be considered as a single loan for purposes of 
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division (ii)". 
(22) Section 428 (b) (1) of sucli Act is amended— 
(A) by inserting "and" at the end of subparagraph (O) ; 
(B) by striking out subparagraph (P); and 
(C) by redesignating subparagraph (Q) as subparagraph (P). 
(23) Subparagraph (C) of section 428(c)(1) of such Act is 
amended— 
(A) by striking out "insured by it" and inserting in lieu thereof 
"made by a lender which are insured by such an institution or 
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organization"; and 
(B) by inserting "and" at the end of clause (ii), and by striking 
out ", and" at the end of clause (iii) and the remainder of such 
subparagraph and inserting in lieu thereof a period. 
(24) Section 428 (c) (5) of such Act is amended— 
(A) by striking out "entered into prior to September 1,1969"; 
and 
(B) by striking out "in effect on that date" and everything that 
follows through "the Commissioner may" and inserting in lieu 
, 
* 
thereof "an agreement pursuant to subsection (b) of this section, 
the Commissioner may". 
(25) Section 428 (c)(6) of such Act is amended— 
• ''•"' 
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(A) in subparagraph (A), by inserting "and for the purpose 
of section 428A(b)(5)" after "For the purpose of paragraph 20 USC 1078-1. 
(2) (D)" and by striking out "pursuant to such paragraph"; 
(B) in subparagraph (A) (ii)— 
(i) by striking out "of the loan" and inserting in lieu 
,., , 
thereof "of loans reimbursed under this subsection"; 
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(ii) by striking out "reimbursed pursuant to subsection 
(f)"; and 
91 STAT. 216 
PUBLIC LAW 95-43—JUNE 15, 1977 
a u j JcJ ' 
(jij) by inserting immediately before the period at the 
• :•'- 
end thereof ''and have not been reimbursed under subsec-
tion ( f ) " ; and 
(C) in subparagraph (B) (i), by striking out "costs of collec-
tion of the loan' " and inserting in lieu thereof "costs of collection 
of loans' ". 
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(26) Section 428(c) (7) (A) (ii) of such Act is amended by striking 
out "guarantee agreement under this subsection" and by inserting in 
lieu thereof "guarantee agreement under subsection (b) of this 
section". 
(27) Section 428(f)(1) is amended— 
(1) by striking out "Each" in subparagraph (B) and inserting 
, 
in lieu thereof "Except as provided in subparagraph (C), each"; 
and 
(2) by inserting after such subparagraph (B) the following: 
"(C) For any State which is eligible to receive a reserve fund 
Ante, p. 214. 
advance under section 422(c) (5) (B), the spending minimum required 
by subparagraph (B) with respect to purposes described in clauses 
(ii) and (iii) of subparagraph (A) shall, for the first year of such 
eligibility, not be applicable and shall, for the second and third years 
of such eligibility, be an amount equal to 20 per centum of the pay-
ments received under this paragraph.". 
(28) Paragraph (2) of section 428(f) of such Act is amended by 
striking out "(2) ( A ) " and inserting in lieu thereof " ( 2 ) " , and by 
striking out subparagraph (B). 
(29) Section 428(f) (3) (A) of such Act is amended by striking out 
the period at the end thereof and inserting in lieu thereof a comma. 
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(30) Paragraphs (1) (A) and (2) (A) of section 428A(a) of such 
Act are each amended by inserting "who is carrying at an eligible 
institution at least one-half the normal full-time academic workload 
(as determined under regulations of the Commissioner)" after "to any 
individual student" and by inserting "not" immediately before "suc-
cessfully completed". 
(31) Paragraphs (1) and (2) of section 428A(a) of such Act are 
each amended by striking out clause (C) and by inserting in lieu 
thereof, in each such paragraph, the following: 
Eligible lenders. 
"(C) with respect to lenders which are eligible institutions, 
provides for the insurance of loans by only such institutions as 
are located within the geographic area served by such State or 
nonprofit private institution or organization;". 
(32) Section 428A(b) (5) of such Act is amended by inserting, 
within the parentheses, "consistent with section 428 ( c ) ( 6 ) " after "reg-
ulations prescribed by the Commissioner". 
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(33) Section 430 (a) of such Act is amended by striking out "interest 
accrued" and inserting in lieu thereof "accrued interest, including 
interest accruing". 
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(34) Section 433 (a) (2) of such Act is amended by inserting "clause 
(A) of" immediately before "paragraph (1)". 
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(35) Section 435(g) (1) (B) of such Act is amended by striking 
out "Employees" and inserting in lieu thereof "Employee". 
.1-3?-; DJ-jsB 
(36) Section 435(g)(3) of such Act is amended by striking out 
"the amount of the loan described in section 428(a)(1) made" and 
inserting in lieu thereof "the total amount of such loans as are 
described in section 428 (a)(1) made by the institution". 
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(37) Section 438 of such Act is amended— 
(A) by striking out "unpaid balance of disbursed principal" 
in subsection (b)(1) and inserting in lieu thereof "average unpaid 
balance of principal"; 
PUBLIC LAW 95-43—JUNE 15, 1977 
91 STAT. 217 
(B) by striking" out '%nd" at the end of clause (ii) of sub-
' 
section (b) (2) (A) and by inserting immediately before the 
period at the end of clause (iii) of such subsection the following 
new clause: ", and (iv) by dividing the resultant per centum by 
four"; 
(C) by striking out "subparagraph (4)" in subsection (b) (2) 
(C) and inserting in lieu thereof "paragraph (4)"; 
(D) by striking out "paragraph (3)" in subsection (b) (4) (B) 
and inserting in lieu thereof "paragraph (2)"; 
(E) by striking out "subparagraph" in subsection (b) (4) (C) 
and inserting in lieu thereof "paragraph"; and 
(F) by redesignating the matter following paragraph (5) of 
subsection (b) as paragraph (6) and by striking out, in such 
K 
matter, "subsection ( a ) " and inserting in lieu thereof "this 
subsection". 
(38) Section 439(b) (1) of the Act is amended by inserting "and 
citizen" after "resident". 
(39) Section 464(c)(2) of such Act is amended by striking out 
"title V I I I of the Economic Opportunity Act of 1964" and inserting 
in lieu thereof "the Domestic Volunteer Act of 1973". 
(40) (A) The first sentence of section 493 (a) of such Act is amended 
(i) striking out "part A or C" and inserting in lieu thereof 
i 
"subpart 2 of part A, part C, or part E " ; 
(ii) striking out "either" and inserting in lieu thereof "any"; 
and 
(iii) striking out "in lieu of reimbursement for its expenses 
during such fiscal year in administering programs assisted under 
such part" and inserting in lieu thereof "for the purposes set forth 
in subsection (c)". 
(B) The second sentence of such section 493 (a) is amended by add-
ing before the period at the end thereof a comma and the following: 
"plus (C) the principal amount of loans made during such fiscal year 
from its student loan fund established under part E". 
(C) Section 493 (b) of such Act is amended to read as follows: 
"(b) The aggregate amount paid to an institution for a fiscal year 
under this section may not exceed $325,000.". 
(41) Section 497A (c) of such Act is amended by striking out "para-
graph (a) (3)" and inserting in lieu thereof "subsection (a) (4)". 
(42) Section 533(a)(2) of such Act is amended by striking out 
"section 532 of this title" and inserting in lieu thereof "section 406(d) 
(1) (D) of the General Education Provisions Act". 
(43) Section 771 of such Act is amended— 
(A) by striking out "grants from funds appropriated under 
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section 721(b)," in subsection ( a ) ; 
(B) by striking out "In determining" each place it appears in 
• 
subsection (b) and inserting in lieu thereof "In establishing cri-
teria for determining"; and 
(C) by adding at the end thereof the following new sub-
sections : 
"(d) Grants and loans awarded for the purposes of this part shall 
not be subject to the provisions of subsections (a) and (b) of section 
781. The Commissioner shall, with respect to each such grant or loan, 
determine the period which shall be deemed to be the period of Federal 
interest in the facility reconstructed or renovated. If, within such 
period, such facility ceases to be used as an academic facility, the 
TTnited States shall recover from the applicant (or its successor in title 
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note. 
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1132d-ll. 
Grants and loans. 
Post, p. 218. 
91 STAT. 218 
PUBLIC LAW 95-43—JUNE 15, 1977 
Funds. 
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note. 
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use 1075. 
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use 1078. 
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use 1077. 
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90 Stat. 2153. 
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90 Stat. 2167. 
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note. 
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90 Stat. 2099. 
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or possession) an amount representing the depreciated value of the 
improvements made with such grant or loan, determined in accordance 
with the procedures set forth in the last sentence of section 781(b). 
"(e) Funds appropriated under section 701(b) available for grants 
under this part may be used for graduate and undergraduate facilities 
and may be used without regard to whether such funds will increase 
or create enrollment capacity, health care capacity, or capacity to 
carry out extension and containing education programs.". 
(44) Section 781 of such Act is amended by striking out ", recon-
struction, or renovation" each place it appears in such section and 
by striking out "reconstructed or renovated" each place it appears 
in subsections (a) and (b) of such section. 
(b)(1) Section 101(b) of the Education Amendments of 1976 is 
amended by striking out paragraph (5) (A) and by redesignating 
paragraph (5) (B) as paragraph (5). 
(2) Paragraph (6) (A) of section 101(b) of such Amendments 
is amended by striking out "institution" and inserting in lieu thereof 
"institutions". 
(3) Section 123(a) of such Amendments is amended by striking 
out "by adding at the end thereof the following new paragraph:" 
and inserting m lieu thereof "by amending paragraph (3) to read 
as follows:", 
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(4) Section 127(b) of such Amendments is amended— 
(A) by striking out paragraph (1) and inserting in lieu thereof 
the following: 
"(1) The changes made in— 
"(A) sections 425(a) (other than paragraphs (1) 
(A) 
and (B) thereof) and 428(b)(1)(A) other than divisions 
.^,. . 
(i) and (ii) thereof, and sections 427(a)(1)(C) and 428 
( b ) ( 1 ) ( B ) shall become applicable wdth respect to loans 
to cover the costs of education for periods of enrollment 
beginning on or after October 1, 1976; 
,,. I. 
"(B) sections 425(a)(1) 
(A) and (B) and 428(b)(1) 
(A) (i) and (ii) shall become applicable with respect to 
loans made on or after February 12, 1977, to cover such costs 
. I. 
for such periods beginning on or after November 12, 1976; 
"(C) sections 427(a)(2) 
(G) a n d ( H ) 
and 428(b) (1) 
(N), (O), and (P) shall become applicable with respect to 
loans made on or after June 1, 1977;" and 
(B) in paragraph (5), by inserting "on or after February 12, 
1977" after "loans made", and by striking out "October 1, 1976" 
and inserting in lieu thereof "November 12, 1976". 
(5) Section 153 of such Amendments is amended by striking out 
"(a) "after "SEC. 153.". 
(6) Section 162(g) of such Amendments is amended by striking 
out " ( 1 ) " after " ( g ) " and by striking out paragraph (2). 
(7) Section 181 of such Amendments is amended by inserting " ( a ) " 
after "SEC. 181." and by adding at the end thereof the following: 
"(b) Neither the amendment made by subsection (a) of this sec-
tion nor the amendment made to section 435(b) (1) of the Act (by sec-
tion 127(a) of this Act) shall be construed to authorize terminating 
the eligibility of an institution which was deemed to be an institu-
tion of h'gher education for purposes of sections 435(b) (1) and 1201 
(a) on the date of enactment of this Act. The preceding sentence of 
this section shall not be construed to impair the authority of the Com-
missioner to limit, suspend, or terminate such eligibility for the rea-
sons and as provided by section 497 of the Act.". 
PUBLIC LAW 95-43—JUNE 15, 1977 
91 STAT. 219 
(8) Section 343(a) (1) of such Amendments is amended by striking 
out "this section" and inserting in lieu thereof "this part". 
(c) Section 604 of the National Defense Education Act of 1958 
is amended by striking out "October 1, 1977" and inserting in lieu 
thereof "October 1,1979,". 
(d) Section 448 of the General Education Provisions Act is 
amended by striking out "March 31" and inserting in lieu thereof 
"June 30". 
SEC. 2. (a) Except as provided in subsection (b), the amendments 
made by the first section of this Act shall take effect October 12,1976. 
(b)(1) Except as provided in paragraph (2), amendments made 
by the first section of this Act to part B of title IV of the Higher 
Education Act of 1965 shall take effect as provided by subsection 
(b) of section 127 of the Education Amendments of 1976, as amended 
by this Act, and shall, for purposes of such subsection, collectively be 
deemed to be an amendment made by subsection (a) of such section. 
(2) The amendments made by paragraphs (17), (20), and (21) (D) 
of subsection (a) of the first section of this Act shall take effect thirty 
days after the date of its enactment. No determination made pursuant 
to section 428(a) (9) of the Higher Education Act of 1965 as in effect 
between September 30, 1976, and such thirtieth day after enactment 
of this Act shall be invalid if such determination, at a minimum, com-
plies with such section as amended by such paragraph (20). 
Approved June 15, 1977. 
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Effective date. 
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note. 
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note. 
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LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-269 (eomm. on Education and Labor). 
eONGRESSIONAL REeORD, VoL 123 (1977): 
May 9, considered and passed House. 
May 25, considered and passed Senate, amended. 
June 1, House concurred in Senate amendments.