University Suspends Use of NDEA Loan Funds

The University has frozen all federal funds granted for student loans under the National Defense Education Act and will take "a fresh look" at Harvard's continued participation in the loan program, President Pusey told the CRIMSON yesterday.

President Pusey has several times publicly opposed the "loyalty oath" section of the Act, which requires students requesting loan funds to subscribe to a disclaimer affidavit. He said that the U.S. Senate's failure to take action on Sen. Kennedy's bill to repeal the oath requirement has made the University "reconsider" its participation. The move involves funds totalling $385,000.

After recent consultation with the Corporation, Pusey stated that "we are suspending use of the funds until the entire policy is reviewed."

Dean Bundy stated that both Pusey and members of the Faculty have requested the Committee on Educational Policy to discuss participation in the NDEA, and that the CEP will talk about the matter at its meeting today. Bundy commented that the disclaimer affidavit is an "offensive requirement."

It was also learned that the Committee of Deans had a similar discussion yesterday. An informed source said the Committee decided that each Dean would bring the oath requirement before his faculty according to his own "desire." A wide spectrum of opinion was reportedly expressed at the Deans meeting.

It seems extremely likely that the oath requirement will be discussed by the Faculty of Arts and Sciences when it meets on October 20.

After Faculty and Administration discussions and, presumably. Corporation action, the University could adopt one of a number of courses. After unfreezing the funds, it could continue to distribute the loan money and administer the oaths; or the University could withdraw from the program and return the funds to the federal government. A third, and more unlikely alternative, would be to encourage court action in order to test the legality of the loyalty oaths.

Of the $385,000 which has been frozen, $250,000 is "still in Washington" and has not yet been received from the government. The bulk of the remainder is "in the bank" but has not yet been allocated.