institution, is in good standing and in full-time attendance there either as an undergraduate, graduate, or professional student;

"(3) provide that no student shall be employed under such work-study program for more than fifteen hours in any week in which classes in which he is enrolled are in session;

"(4) provide that, in each fiscal year during which the agreement remains in effect, the institution shall expend (from sources other than payments by the Commissioner under this part) for the employment of its students (whether or not in employment eligible for assistance under this part) an amount that is not less than its average annual expenditure for such employment during the three fiscal years preceding the fiscal year in which the agreement is entered into;

“(5) provide for payment by the Commissioner, within the limits of the applicable allocation with respect to such institution under section 222 (b), of one-half (hereafter in this part referred to as the Commissioner's share) of the compensation of each student employed in the work-study program in accordance with the agreement, but not to exceed $500 as the Commissioner's share in the case of any undergraduate student, or $1,000 in the case of any graduate or professional student, in any academic year or its equivalent; and, subject to section 224, provide that the institution undertakes to act, if so requested by the Commissioner, as his agent for the payment of the Commissioner's share of the student's compensation;

"(6) provide for the making of such reports, in such form and containing such information, as the Commissioner may reasonably require to carry out his functions under this part, and for the keeping of such records and for affording such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports;

"(7) include such other provisions as may be necessary to carry out the purposes of this part and as are agreed to by the Commissioner and the institution; and

"(8) include provisions designed to make work financed under the program covered by the agreement, or equivalent work offered by the institution, reasonably available (to the extent of available funds) to all eligible students in the institution in need thereof.

"PAYMENTS TO STUDENTS

"SEC. 224. (a) The Commissioner's share of a student's compensation for work performed in employment covered by an agreement under this part may be paid directly by him to the student; or it may be paid through the employing institution as paying agent for the Commissioner. If the institution is utilized as paying agent, the Commissioner's share may be paid to the institution in advance or by way of reimbursement, in accordance with regulations prescribed by the Commissioner, and the Commissioner may authorize the institution to combine the Commissioner's share and the remainder of the student's compensation in a single payment to the student.

"(b) Regardless of the method of payment under this section, students employed in a work-study program covered by an agreement under this part shall not by reason of such employment be deemed employees of the United States, or their service Federal service, for any purpose.

"(c) Nothing in this part shall be construed as restricting the source (other than this part) from which the institution may pay its share of the compensation of a student employed in accordance with an agreement under this part. "(d) Financial transactions of the Commissioner pursuant to this part, and vouchers approved by him in connection with such financial transactions, shall be final and conclusive upon all officers of the Government; except that all such transactions shall be subject to audit by the General Accounting Office at such times and in such manner as the Comptroller General may by regulation prescribe."

PART D-GRADUATE FELLOWSHIPS

NUMBERS OF FELLOWSHIPS

SEC. 161. Effective July 1, 1963, section 402 of the National Defense Education Act of 1958 (20 U.S.C. 462) is amended to read as follows:

"NUMBER OF FELLOWSHIPS

"SEC. 402. (a) (1) During the fiscal year ending June 30, 1964, and each of the two succeeding fiscal years, the Commissioner is authorized to award ten thousand fellowships to be used for study in graduate programs at institutions of higher education. Such fellowships may be awarded for such periods of study, not in excess of three academic years, as the Commissioner may determine. "(2) In addition to the number of fellowships authorized to be awarded by paragraph (1) of this subsection, the Commissioner is authorized to award fellowships equal to the number previously awarded during any fiscal year under this subsection but vacated prior to the end of the period for which they were awarded; except that each fellowship awarded under this paragraph 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.

"(b) During the fiscal year ending June 30, 1964, and each of the two succeeding fiscal years, the Commissioner is authorized to award two thousand fellowships for study during summer sessions in graduate programs at institutions of higher education."

AWARDS OF FELLOWSHIPS AND APPROVAL OF INSTITUTIONS

SEC. 162. (a) The first sentence of subsection (a) of section 403 of the National Defense Education Act of 1958 (20 U.S.C. 463) is amended to read as follows: "Of the total number of fellowships authorized by section 402 (a) (1) to be awarded during a fiscal year (A) not less than one thousand five hundred shall be awarded to individuals accepted for study in graduate programs approved by the Commissioner under this section, and (B) the remainder shall be awarded on such bases as he may determine." The second sentence of such subsection (a) is amended by striking out all that folows clause (2), and by striking out", and” at the end of clause (2) and inserting in lieu thereof a period. (b) Subsection (b) of such section 403 is amended by striking out "this title" and inserting in lieu thereof "subsection (a) of this section".

(c) Such section 403 is further amended by adding at the end thereof the folowing new subsections:

"(c) A fellowship authorized to be awarded under subsection (b) of section 402 may be awarded by the Commissioner only to an individual who did not hold a fellowship, under this part or under any other Federal program, for the preceding academic year and is not expected to hold one for the succeeding academic year and who (1) during the preceding or succeeding academic year, was (or is expected to be) devoting essentially full time to study or research in the field in which such fellowship is awarded in an institution of higher education and was not (or is not expected to be) engaging in gainful employment other than part-time employment by such institution in teaching, research, or similar activities approved by the Commissioner or (2) was serving as a teacher in an institution of higher education during the preceding academic year.

"(d) In the selection of recipients for fellowships under this part, preference shall be given to persons who are interested in teaching, or continuing to teach, in institutions of higher education or who are pursuing a course of study leading to a degree of doctor of philosophy or an equivalent degree."

(d) The amendments made by this section shall be become effective July 1, 1963.

FELLOWSHIPS STIPENDS

SEC. 163. (a) Section 404 of the National Defense Education Act of 1958 (20 U.S.C. 464) is amended to read as follows:

"FELLOWSHIP STIPENDS

"SEC. 404. (a) Persons awarded fellowships under this part shall receive stipends, including allowances for dependents, in such amounts as may be prescribed by the Commissioner from time to time pursuant to regulations.

"(b) In addition to the amounts paid to persons pursuant to subsection (a), there shall be paid to the institution of higher education at which any such person is pursuing his course of study such amount as the Commissioner determines and specifies in regulations after considering the average cost of educating various categories of such fellows at institutions of higher education. Any amount which an institution of higher education charges a person holding a fellowship under this part for tuition or other required fees shall be deducted from payments made to such institution under this subsection, and the amount so deducted shall be added to the stipend to which such person is entitled under subsection (a) of this section."

(b) The amendment made by this section shall apply in the case of stipends and payments to institutions of higher education under section 404 of the National Defense Education Act of 1958 which are paid for academic years or summer sessions beginning after the enactment of this Act.

TITLE II-EXPANSION AND IMPROVEMENT OF HIGHER EDUCATION

PART A-HIGHER EDUCATION FACILITIES

LENDING AUTHORITY

SEC. 201. The Commissioner may, in accordance with the provisions of this part, make loans to institutions of higher education or higher education building agencies for construction of academic facilities, including any such facility jointly sponsored by two or more institutions.

LOAN LIMIT FOR ANY STATE

SEC. 202. Not more than 121⁄2 per centum of the funds provided for in this part in the form of loans may be used for loans to institutions of higher education or higher education building agencies within any one State.

ELIGIBILITY CONDITIONS, AMOUNTS, AND TERMS OF LOANS, AND PROGRAM CEILING

SEC. 203. (a) No loan pursuant to this part shall be made unless the Commissioner finds (1) that not less than one-fourth of the cost of construction of the facility will be financed from non-Federal sources, (2) that the applicant is unable to secure the amount of such loan from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this part, and (3) that the construction will be undertaken in an economical manner and that it will not be of elaborate or extravagant design or materials.

(b) A loan pursuant to this part shall be secured in such manner, and shall be repaid within such period not exceeding fifty years, as may be determined by the Commissioner; and shall bear interest at a rate determined by the Commissioner which shall not be less than an annual rate that is one-quarter of 1 percentage point above the average annual interest rate on all interestbearing obligations of the United States forming a part of the public debt as computed at the end of the fiscal year next preceding the approval of the application for such loan, adjusted to the nearest one-eighth of 1 per centum. (c) In order to enable the Commissioner to make loans for the construction of academic facilities in accordance with the provisions of this part, there is authorized to be appropriated, for the period of three fiscal years beginning July 1, 1963, and ending June 30, 1966, the aggregate sum of $1,000,000,000. Any sums appropriated under the preceding sentence shall remain available for obligation until June 30, 1966, inclusive.

GENERAL PROVISIONS FOR LOAN PROGRAM

SEC. 204. (a) Such financial transactions of the Commissioner as the making of loans, and vouchers approved by the Commissioner in connection with such financial transactions, shall be final and conclusive on all officers of the Government.

(b) The Commissioner is authorized (1) to prescribe a schedule of fees which, in his judgment, would be adequate in the aggregate to cover necessary expenses of making inspections (including audits) and providing representatives at the site of projects in connection with loans under this part, and (2) to condition the making of such loans on agreement by the applicant to pay such fees. For the purpose of providing such services, the Commissioner may utilize any Federal or other agency or person in accordance with an appropriate agreement, and such agency or person may accept reimbursement or payment for such services from such applicant or (if agreed to by the Commissioner) from the Commissioner, and may, if a Federal agency, credit such amounts to the appropriation or fund against which expenditures by such agency for such services have been charged.

(c) In the performance of, and with respect to, the functions, powers, and duties vested in him by this part, the Commissioner, notwithstanding the provisions of any other law, may

(1) prescribe such rules and regulations as may be necessary to carry 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 controversy, and any 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 in such office; but no attachment, injunction, garnishment, or other similar process, mesne 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 507 (b) and 2679 of title 28 of the United States Code and of section 367 of the Revised Statutes (5 U.S.C. 316);

(3) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale any property in connection with which he has made a loan pursuant to this part, and, in the event any such acquisition (and notwithstanding any other provisions of law relating to the acquisition, handling, or disposal of real property by the United States), complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property: Provided, That any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction in and over such property or impair the civil rights under the State or local laws of the inhabitants on such property;

(4) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;

(5) subject to the specific limitations in this part, consent to the modification, with respect to the rate of interest, time of payment of any installment of principal or interest, security, or any other term, of any contract or agreement to which he is a party or which has been transferred to him pursuant to this action; and

(6) include in any contract or instrument made pursuant to this part such other covenants, conditions, or provisions (including provisions designed to assure against use of the facility, constructed with the aid of a loan under this part, for purposes described in section 205(a) (2)) as he may deem necessary to assure that the purposes of this part will be achieved.

DEFINITIONS FOR LOAN PROGRAM

SEC. 205. As used in this part

(a) (1) Except as provided in subparagraph (2) of this paragraph, the term "academic facilities" means structures suitable for use as classrooms, laboratories, libraries, and related facilities necessary or appropriate for instruction

of students, or for research, or for administration of the educational or research programs, of an educational institution, and maintenance, storage, or utility facilities essential to operation of the foregoing facilities.

(2) The term “academic facilities” shall not include (A) any facility intended primarily for events for which admission is to be charged to the general public, or (B) any facility used or to be used for sectarian instruction or as a place for religious worship, or (C) any facility which (although not a facility described in the preceding clause) is used or to be used primarily in connection with any part of the program of a school or department of divinity. For the purposes of this subparagraph, the term "school or department of divinity" means an institution, or a department or branch of an institution, whose program is spe cifically for the education of students to prepare them to become ministers of religion or to enter upon some other religious vocation or to prepare them to teach theological subjects.

(b) The term "higher education building agency" means (1) an agency, public authority, or other instrumentality of a State authorized to provide, or finance the construction of, academic facilities for institutions of higher education (whether or not also authorized to provide or finance other facilities for such or other educational institutions, or for their student or faculty), or (2) any corporation (no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual) (A) established by an institution of higher education for the sole purpose of providing academic facilities for the use of such institution, and (B) upon dissolution of which all title to any property purchased or built from the proceeds of any loan made under this part will pass to such institution.

PART B-PUBLIC COMMUNITY COLLEGE ACADEMIC FACILITIES

AUTHORIZATION OF APPROPRIATIONS

SEC. 221. For the purpose of making grants to States under this part for the construction of public community college facilities, there are authorized to be appropriated $50,000,000 for the fiscal year ending June 30, 1964, and such sums as the Congress may determine for each of the next two fiscal years.

ALLOTMENTS TO STATES

SEC. 222. (a) The sums appropriated pursuant to section 221 shall be allotted among the States on the basis of the income per person and the number of high school graduates of the respective States as follows: The Commissioner shall allot to each State for each fiscal year an amount which bears the same ratio to the sums appropriated pursuant to section 221 for such year as the product of

(1) the number of high schol graduates of the State (as determined under subsection (d) of this section), and

(2) the State's allotment ratio (as determined under subsection (c) of this section)

bears to the sum of the corresponding products for all the States.

(b) The allotment to any State under this section for any fiscal year shall, subject to the matching requirement of section 223, be available until the end of the succeeding fiscal year for reservation under section 225 of the amounts certified by the State agency, not later than the end of the fiscal year for which the allotment was made, as the Federal share of the cost of constructing public community college facilities under the State plan approved pursuant to section 224. Any part of an allotment under this section with respect to which the State agency has made no such certification prior to the end of the fiscal year for which the allotment was made to the State shall be reallotted by the Commissioner in the next fiscal year, on the basis of such factors as he determines to be equitable and reasonable, among those States which, as determined by the Commissioner, are able to use without delay any amounts so reallotted. Any such reallotment shall until the end of the fiscal year in which the reallotment was made, be available for reservation pursuant to section 225 on the basis of certifications made by the State agency of the reallottee State in that year. (c) For purposes of this part

(1) the "allotment ratio" for any State shall be 1.00 less the product of (A) .50 and (B) the quotient obtained by dividing the income per person for the State by the income per person for all the States (not including