administrative expenses

administrative expenses Sec. 172. Effective for fiscal years ending on or after June 30, 1970— (1) Section 204 of the National Defense Education Act of 1958 is amended by inserting “(a)” after “Sec. 204.”, and by striking out in paragraph (3) “(C) routine expenses” and all that follows down through “whichever is the lesser” and inserting in lieu thereof “(C) administrative expenses as provided in subsection (b)”. (2) Section 204 of such Act is amended by adding at the end thereof the following new subsection: “(b) An institution of higher education that has entered into an agreement, with the Commissioner under this section shall be entitled for each fiscal year during which it makes any student loans from a student loan fund established under this title to a payment in lieu of reimbursement for its expenses during such fiscal year in administering its student loan program assisted under this title. Such payment (1) shall be payable from its student loan fund in accordance with regulations of the Commissioner, and (2) (except as provided in section 463(b) of the Higher Education Act of 1965) shall be an amount, equal to 3 per centum of the principal amount of loans made from such fund during a fiscal year.”