Federal Correctional Education Assistance Act - Authorizes the Commissioner of Education to make grants to State and local educational agencies, institutions of higher education, and other public and private nonprofit agencies for the Federal share of the cost of specified educational programs for criminal offenders. Limits the Federal share to a maximum of 90 percent of such cost.

Authorizes the appropriation for the grant program of $50,000,000 for fiscal year 1979, and of $75,000,000 for each of fiscal years 1980 through 1983.