TABLE OF CONTENTS: Title I: Older Americans Act of 1965 Title II: Extension of Programs; Museums and Libraries Subtitle A: Extension of Programs Subtitle B: Museums and Libraries Subtitle C: Museum Services Title III: Higher Education Subtitle A: Debt Reduction Subtitle B: Financial Responsibility Standards Title I: Older Americans Act of 1965 - Amends the Older Americans Act of 1965 to revise the definition of "reservation" for purposes of Indian employment. Authorizes the Assistant Secretary on Aging to waive or exempt certain Act reporting requirements for applicants serving Indian populations in geographically-isolated areas or applicants serving small Indian populations. Requires the Assistant Secretary, when considering approval of applications for nutrition services expenditures under the Act, to provide maximum flexibility to applicants seeking to take into account subsistence Indian populations. Requires, in determining Act compliance, that applicants provide only a narrative description of the area to be served and assurances of non-duplicative services. Title II: Extension of Programs; Museums and Libraries - Subtitle A: Extension of Programs - Amends the National Literacy Act of 1991 to extend the authorization of appropriations for FY 1997 for grants for: (1) the National Workforce Literacy Assistance Collaborative; and (2) functional literacy and life skills programs for State and local prisoners. (Sec. 202) Amends the Adult Education Act to: (1) add the definition family literacy services; (2) extend basic program provisions for adult education programs through FY 1997; (3) make grants to States for family literacy services activities; (4) extend the authorization of appropriations for State Literacy Resource Centers through FY 1997; and (5) extend the authorization of appropriations for business, industry, labor, and education partnerships for workplace literacy through FY 1997; and (6) establish the National Institute for Literacy as well as the National Institute for Literacy Advisory Board. Directs the Institute to improve the quality and accountability of the adult basic skills and literacy delivery system, make grants, and award fellowships. Authorizes appropriations for the Institute and the Advisory Board. (Sec. 203) Extends the authorization of appropriations under the Carl D. Perkins Vocational and Applied Technology Education Act through FY 1997. Subtitle B: Museums and Libraries - Amends the Museum Services Act to revise and rename it as the Museum and Library Services Act (MLSA). Museum and Library Services Act - Establishes within the National Foundation on the Arts and the Humanities (NFAH) an Institute of Museum and Library Services (IMLS), consisting of an Office of Museum Services (OMS) and an Office of Library Services (OLS), with a National Museum Services Board in OMS. Provides for an IMLS Director and Deputy Directors for OMS and OLS. Library Services and Technology Act - Provides for Library Services and Technology under MLSA, with an emphasis on library services and technology, access, and literacy programs for underserved communities. Authorizes appropriations to the Secretary of Education for grants to States for information access through technology and information empowerment through special services. Directs the Secretary to transfer such funds to the Director to carry out such library services and technology programs. Sets forth basic program requirements for reservations and allotments, payments, 66 percent Federal share, maintenance of effort, and State five-year plans. Sets forth requirements and authorized activities for such library programs of grants to States for: (1) information access through technology; and (2) information empowerment through special services (including special services for children in poverty who are served by libraries). Sets forth administrative provisions for such library grants programs, including State evaluation of assisted activities, State advisory councils, Federal grants for library services for Indian tribes, and a program of national leadership and evaluation activities. Subtitle C: Museum Services - Sets forth MLSA provisions for Museum Services. Continues to authorize: (1) grants to museums to increase and improve museum services through specified types of activities; and (2) contracts and cooperative agreements with appropriate entities for projects to strengthen museum services. Continues to limit the Federal share to 50 percent, allowing the Director to use up to 20 percent of funds to make such grants, contracts, or cooperative agreements where the Federal share may be 100 percent. Requires the Director to undertake an assessment of the collaborative possibilities museums can engage in to serve the public more broadly and effectively. Authorizes the Director to make an annual National Award for Museum Service to outstanding museums that have made significant contributions in service to their communities. Includes the Director as a member of the National Museum Services Board. (which gives policy direction or advice to the Director with respect to grants, contracts, and other matters). Authorizes appropriations to the Director to carry out Museum services under MLSA. (Sec. 212) Amends the National Commission on Libraries and Information Science Act to make such Commission responsible for advising the IMLS Director on general policies with respect to IMLS duties and powers relating to library services. Directs the Commission to meet jointly with the National Museum Services Board at least once a year to advise on general policy with respect to financial assistance for joint projects of OLS and OMS. Includes the IMLS Director as an ex officio, nonvoting member of such Commission. Requires that nonprofessional members have special competence in or knowledge of (currently, interest in) society's need for library and information services. Requires that at least one of the nonprofessional members be knowledgeable about the library and information service and science needs of the elderly. (Sec. 213) Transfers functions from the Institute of Museum Services (IMS) and Library Programs in the Office of Educational Research and Improvement in the Department of Education to the Institute of Museum and Library Services (IMLS). (Sec. 214) Provides that the current IMS Director shall serve as the first IMLS Director. (Sec. 215) Requires the IMLS Director, in appointing OLS employees, to give strong consideration to individuals with experience in administering State-based and national library and information services programs. Title III: Higher Education - Subtitle A: Debt Reduction - Amends the Higher Education Act of 1965 to permit lenders under the unsubsidized Federal Family Education Loan program to pay origination fees on behalf of borrowers and charge them for such fees. Requires each lender to assess the same fee to all student borrowers, but allows a lesser fee to be assessed for borrowers demonstrating greater financial need. Directs the Secretary of Education to submit to the Congress a legislative proposal that would permit the Secretary to allocate the right to make subsidized and unsubsidized student loans on the basis of competitive bidding. Requires such proposal to include provisions to ensure that any payments received from competitive bidding are equally allocated to deficit reduction and to pro rata reduction of origination fees in both guaranteed and direct student loans. (Sec. 302) Directs the Secretary to conduct, and report to the Congress on, a statistical analysis of the subsidized and unsubsidized student loan programs under HEA to gather data on lenders' use of loan fees and to determine if there are any anomalies that would indicate any institutional, programmatic, or socioeconomic discrimination in the assessing or waiving of such fees. Subtitle B: Financial Responsibility Standards - Extends until December 1996 the public comment period on rules published in the Federal Register relating to financial responsibility standards for institutions participating in higher education programs. Requires that such rules be published in final form by February 1997.