REMARKS, ON AGREEMENT WITH THE U. S. COMMIS-
SIONER OF EDUCATION UNDER THE STUDENT LOAN
PROVISIONS OF HIGHER EDUCATION ACT OF 1965

ANNAPOLIS
May 12, 1966

I am very happy that Maryland is one of the first states to qualify
for a permanent agreement with the Commissioner of Education
under the provisions of the Higher Education Act of 1965.

This agreement which replaces the interim agreement which was
signed on March 31st will bring additional benefits to the college
students of the State. Under its provisions the federal government
will pay the interest on all loans approved by the Maryland Higher
Education Loan Corporation since November 8, 1965, where the stu-
dent's adjusted family income is less than $15, 000. Today's signing
also makes Maryland's student loan program eligible to receive $294, -
756 in federal funds for the purpose of strengthening its reserve. This
amount added to the present reserve will increase the loan capacity
of Maryland Higher Education Loan Corporation to over five mil-
lion dollars.

The Maryland higher education loan program recently has been
expanded to meet the requirements of the federal act and now will
include freshmen and some part-time students. The loan maximum
has been raised to $1500 a year for graduate students and the total
amount any student can borrow has been increased to $7500. Since
its beginning last July, Maryland Higher Education Loan Corpora-
tion was guaranteed 785 student loans, amounting to $475, 000. They
were made by 31 Maryland banks to students who are attending 106
colleges in 24 states. Eighty-three percent of them are enrolled in
Maryland institutions.

We expect that the impetus given to the already expanding Mary-
land program by this permanent agreement will make it possible for
many more qualified Maryland young people to continue their edu-
cation.

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