United States Scholarship Program for Developing Countries Act

United States Scholarship Program for Developing Countries Act - Directs the President, acting through the U.S. Information Agency (USIA), to provide an undergraduate scholarship program for citizens and nationals of developing countries to study at U.S. institutions of higher education. Requires that half of each payment to a student shall be in the form of a loan with repayment to be forgiven upon the student's prompt return to his or her country of origin for a period of no less than the number of years spent studying in the United States plus one. Sets forth guidelines for implementing the program. Directs the President, before allocating any funds, to consult with U.S. educational institutions, educational exchange organizations, U.S. missions, and the governments of participating countries on how to implement the guidelines. Authorizes the President to enter into agreements with foreign governments to further the scholarship program.

Urges the Administrator of the agency primarily responsible for administering development assistance programs, in implementing such programs, to increase assistance for undergraduate scholarships for students of limited financial means from developing countries to study in the United States. Urges the Director of the USIA to expand opportunities for students from developing countries to receive financial aid for postgraduate study at U.S. institutions of higher education. Urges the President to take steps to expand the opportunities for Americans from all economic classes to study in developing countries.

Authorizes the President to establish counseling and orientation services: (1) abroad to prepare foreign students for study in the United States; and (2) at U.S. schools to help them while they are in the United States.

Directs the Board of Foreign Scholarships to advise and assist the President in the discharge of programs authorized by this Act.

Requires the public and private sectors in the United States to be encouraged to contribute to the costs of the programs financed under this Act. Directs the President to engage the public and private sectors of developing countries in programs to maximize the use of program participants upon their return to their own countries. Authorizes the President to publicize the scholarship program abroad. Directs the President to encourage U.S. schools attended by students receiving scholarships under this Act to provide opportunities for U.S. students to develop their knowledge of the foreign students' cultures.

Authorizes the President to provide English instruction abroad when necessary.

Requires the President to report annually to the Congress on the activities taken pursuant to this Act.

Requires the undergraduate scholarship program financed by the USIA for students from Central America for FY 1986 and 1987 to be conducted in accordance with this Act. Provides for funding to carry out other scholarship programs under this Act.