NATIONAL EDUCATION IMPROVEMENT ACT MONDAY, FEBRUARY 4, 1963 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 9:45 a.m., pursuant to notice, in room 429, Cannon Building, Hon. Adam C. Powell (chairman of the committee) presiding. Present: Representatives Powell, Perkins, Landrum, Green, Holland, Dent, Pucinski, Brademas, Carey, Hawkins, Sickles, Gibbons, Brown, Frelinghuysen, Ayres, Griffin, Quie, Goodell, Bruce, Ashbrook, Martin, and Bell. Also present: Dr. Deborah P. Wolfe, education chief; Russell Derricksen, staff director; Richard Burress, minority clerk. The CHAIRMAN. We will come to order. As we celebrate this year the centennial of the Emancipation Proclamation, it is my duty to reemphasize the concept of free education, which was born as a result of the freeing of the slaves. The U.S. Congress had no Committee on Education until the post bellum years, as the chart on the wall will indicate. This committee was born in 1867. It was founded as a direct outgrowth of the need for free education and Federal participation in it. Therefore, it is highly fitting that we here today consider the entire panorama of education and Federal participation in it. Education is democracy's most important business. Already in many strategic areas the United States is becoming a second-class education power. Without massive Federal participation and assistance, this deterioration will continue, and the tempo will accelerate. It is important that during these hearings we will hear eight or nine major voices in the field of education, most of whom, of course, will be concerned with only one aspect of this bill. But nevertheless it is the hope of the chairman that either through their statements or through the questioning by members of this committee we can bring about the views of all of the leaders of education on the total picture of education so that for the first time there will be heard one voice in the land speaking for education. But then for no other reason, the introduction of H.R. 3000 at the request of the President of the United States by the chairman will serve a great purpose. Furthermore, I am in favor of the omnibus approach to the problems of education because it has been stated by me publicly that our approach in previous years has been too fragmented, thus losing the impact. Through this bill, the goals of American education are expressed in one document. 1 Education can now be viewed as a social function answering the growing, changing, and complex needs of our land which it must serve. It is presented now for the first time as an integrated whole. It portrays the unity of all education for all ages and for all peoples. The startling reality is upon us that the population explosion is now placing undue stress and strain on our already overburdened institutions of learning. At all points the emphasis must be on strengthening, expanding, and improving the quality of education, as well as providing the mechanical equipment. Now, therefore, we shall sit as a full committee in an attempt to look at this entire field of education for the next 2 weeks. We agree with the President when he said: Education is a keystone in the arch of freedom and progress-education cannot easily or wisely be divided into separate parts. Each part is linked to the other. The college is dependent upon the work of the school; the school is dependent upon the colleges for teachers; vocational and technical education is not separate from general education. However, I want to be politically realistic and point out that this bill as it is now before us might not come out of the Committee on Education and Labor, probably would not get a rule, and if it did, would be emasculated on the floor of the House or in conference. We shall go into executive session the week of February 17 to evaluate our findings and to plan subsequent action. We hope that all of the parts of this bill shall become law, either in the omnibus bill or in two or three other omnibus bills. Finally, it is my prayer that the knotty problem of church and state in the field of education shall be brought to a definite conclusion once and for all. If we fail to pass education in this session of this Congress, then it is my firm belief that, after these many years of laboring and having brought forth nothing, education for our generation as far as Federal assistance is concerned is finished. This will be a sorry day, for as I return now to my opening remarks, it will mean the definite decline of the West in general and the United States in particular, and the turning over of the leadership of first-class education to the forces who would use it not to free men's minds but to enslave them. (Text of H.R. 3000 follows:) [H.R. 3000, 88th Cong., 1st sess.] A BILL To strengthen and improve educational quality and educational opportunities in the Nation Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act, with the following table of contents, may be cited as the "National Education Improvement Act of 1963". TABLE OF CONTENTS TITLE I. EXPANSION OF OPPORTUNITIES FOR INDIVIDUALS IN HIGHER EDUCATION Part A-Student loans Part B-Student loan insurance Part C-Student work-study programs Part D -Graduate fellowships TITLE II. EXPANSION AND IMPROVEMENT OF HIGHER EDUCATION Part A-Higher education facilities Part B-Public community college academic facilities Part C-College level technical education Part D-College and university libraries Part E-Graduate schools Part F-Modern foreign language training and research TITLE III. IMPROVEMENT OF EDUCATIONAL QUALITY Part A-Institutes for advanced study for teachers Part B-Teacher preparation programs Part C-Specialized training for teachers and related educational personnel Part E-State statistical services TITLE IV. STRENGTHENING ELEMENTARY AND SECONDARY EDUCATION Part A-Public elementary and secondary education Part B-Science, mathematics, and modern foreign language instruction equipment Part D-Federally affected areas TITLE V. EXPANSION AND IMPROVEMENT OF VOCATIONAL AND SPECIAL EDUCATION Part A-Vocational education Part B-Education of handicapped children TITLE VI. EXPANSION OF CONTINUING EDUCATION Part A-General university extension education Part B-Adult basic education Part C-Public community libraries TITLE VII. GENERAL PROVISIONS TITLE I-EXPANSION OF OPPORTUNITIES FOR INDIVIDUALS IN HIGHER EDUCATION PART A-STUDENT LOANS APPROPRIATIONS AUTHORIZED SEC. 101. The first sentence of section 201 of the National Defense Education Act of 1958 (20 U.S.C. 421) is amended by striking out "$90,000,000 each for the fiscal year ending June 30, 1962, and for the two succeeding fiscal years, and such sums for the fiscal year ending June 30, 1965, and each of the three succeeding fiscal years as may be necessary to enable students who have received a loan for any school year ending prior to July 1, 1964, to continue or complete their education" and inserting in lieu thereof "$90,000,000 each for the fiscal year ending June 30, 1962, and the next fiscal year, $135,000,000 for the fiscal year ending June 30, 1964, and such sums for each of the next six fiscal years as the Congress may determine, except that the sums so appropriated for the fiscal year ending June 30, 1967, and each of the next three fiscal years shall be only those which are necessary to enable students who have received loans for school years ending prior to July 1, 1966, to continue or complete their education". ALLOTMENTS TO STATES SEC. 102. Section 202 of the National Defense Education Act of 1958 (20 U.S.C. 422) is amended by striking out "1964" wherever it appears therein and inserting in lieu thereof "1966". PAYMENT OF FEDERAL CAPITAL CONTRIBUTIONS SEC. 103. Effective with respect to fiscal years beginning after June 30, 1963, section 203 of the National Defense Education Act of 1958 is further amended by striking out subsection (b) and by striking out “(a)” after "SEC. 203.". CONDITIONS OF AGREEMENTS SEC. 104. (a) Subparagraph (4)(A) of section 204 of the National Defense Education Act of 1958 is amended by inserting ", or in institutions of higher education" after "in elementary or secondary schools." (b) The amendment made by this subsection shall apply to the selection of students under title II of the National Defense Education Act of 1958 made in or after the second month following the month in which this Act is enacted. TERMS OF LOANS SEC. 105. (a) Subsection (a) of section 205 of the National Defense Education Act of 1958 is amended to read as follows: "(a) The total of the loans for any academic year or its equivalent, as determined under regulations of the Commissioner, made by institutions of higher edu cation from loan funds established pursuant to agreements under this part may not exceed $2,500 in the case of any graduate or professional student (as defined in regulations of the Commissioner), or $1,000 in the case of any other student. The aggregate of the loans for all years from such funds may not exceed $10,000 in the case of any graduate or professional student (as so defined, and including any loans from such funds made to such person before he became a graduate or professional student), or $5,000 in the case of any other student." (b) (1) Subparagraph (1)(C) of subsection (b) of such section 205 is amended by striking out "either as an undergraduate or graduate student" and inserting in lieu thereof "as an undergraduate, graduate, or professional student". (2) Subparagraph (2) (A) (i) of such subsection (b) of such section 205 is amended by inserting "or at a comparable institution outside the States approved for this purpose by the Commissioner" after "at an institution of higher education". (3) Subparagraph (3) of such subsection (b) of such section 205 is amended to read as follows: "(3) for service as a full-time teacher in a public or nonprofit private elementary or secondary school in a State or in an institution of higher education, there shall be canceled not to exceed 50 per centum of the amount of any such loan plus interest thereon, which was unpaid on the first day of such service, (A) at the rate of 25 per centum for each complete academic year, or its equivalent (as determined under regulations of the Commissioner), of such service in the case of a person who, at some time during the two-year period preceding his attendance at an institution of higher education to pursue the course of study in connection with which the loan was made, was engaged as a full-time teacher in a public or nonprofit private elementary or secondary school in a State or in an institution of higher education, or (B) at the rate of 10 per centum for each complete academic year, or its equivalent (as so determined), of such service in the case of any other person ;". (c) The amendment made by subsection (a) shall apply for purposes of determining the amount of any loans under title II of the National Defense Education Act of 1958 for academic years beginning after the date of enactment of this Act. The amendment made by paragraph (2) of subsection (b) shall apply to any loan (under an agreement under title II of the National Defense Education Act of 1958) outstanding on the date of enactment of this Act only with the consent of the institution which made the loan. The amendment made by paragraph (3) of subsection (b) shall apply with respect to service as a teacher (described in such section 205 (b) (3) of the National Defense Education Act of 1958) performed during academic years beginning after the enactment of this Act, whether the loan was made before or after such enactment. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS SEC. 106. Section 206 of the National Defense Education Act of 1958 (20 U.S.C. 426) is amended by striking out "1968” wherever it appears therein and inserting in lieu thereof "1970". NATIONAL STUDY TO DETERMINE REASONS WHY ABLE STUDENTS FAIL TO ATTEND OR COMPLETE COLLEGE SEC. 107. (a) The Commissioner shall, directly or by contract, conduct a study (1) on the extent to which students with the capacity to obtain a baccalaureate degree fail to attend institutions of higher education or leave before obtaining such a degree; and (2) as to the reasons therefor, with particular attention to the need for a Federal program of scholarship grants to aid students who fail to attend such institutions or to continue their studies because of financial need. (b) The Commissioner shall submit a report of his findings made pursuant to the study carried out under this section, together with such recommendations as he may deem appropriate, to the Secretary of Health, Education, and Welfare for transmission to the Congress within two years after the date of enactment of this section. PART B-INSURANCE OF STUDENT LOANS SEC. 121. (a) Title II of the National Defense Education Act of 1958, as amended, is further amended by striking "TITLE II-LOANS TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION" as it appears as the heading of that title, and inserting in lieu thereof, "TITLE II-LOANS, LOAN INSURANCE, AND WORK-STUDY PROGRAMS FOR STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION "PART A-LOANS TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION" (b) The words "this part" are substituted for "this title" wherever the latter words may appear in sections 201 to 209, inclusive, of that Act. (c) There is inserted, immediately following such section 209, the following: "PART B INSURANCE OF LOANS TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION "SCOPE AND DURATION OF LOAN INSURANCE PROGRAM "SEC. 211. (a) For the purpose of facilitating loans to students in institutions of higher education, eligible lenders may be insured by the Commissioner, on behalf of the United States, against losses on loans made by them to such students, on or after July 1, 1963, if made upon the conditions and within the limits specified in this part. The total principal amount of new loans to students covered by insurance under this part in any fiscal year ending before July 1, 1966, shall not exceed $25,000,000 in the fiscal year ending June 30, 1964, $50,000,000 in the fiscal year ending June 30, 1965, and $75,000,000 in the fiscal year ending June 30, 1966. Thereafter, insurance pursuant to this part may be granted only for loans made (or for loan installments paid pursuant to lines of credit as defined in section 212) to enable students, who have obtained prior loans insured under this part, to continue or complete their educational program; but no insurance may be granted for any such loan made or installment paid after June 30, 1970. "(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), insurance quotas applicable to eligible lenders, or to States or areas, and may from time to time reassign unused portions of such quotas. For purposes of this part, the term 'eligible lender' means an institution of higher education, or a financial or credit institution (including an insurance company) which is subject to examination and supervision by an agency of the United States or of any State. "LIMITATIONS ON INDIVIDUAL LOANS AND ON INSURANCE "SEC. 212. (a) No loan or loans by one or more eligible lenders in excess of $2,000 in the aggregate to any student in any academic year or its equivalent shall be covered by insurance under this part, and the aggregate insured unpaid principal amount of all loans made to any student shall not exceed $10,000 at any time. 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 such annual limit. As used in this section and hereinafter in this part, 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. "(b) The insurance liability on any loan insured under this part shall be limited to 90 per centum of the unpaid balance of such loan, including 90 per centum of the interest accrued and unpaid. "SOURCES OF FUNDS "SEC. 213. Loans made by eligible lenders in accordance with this part shall be insurable 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. |