[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6138 Enrolled Bill (ENR)]
H.R.6138
One Hundred Ninth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and six
An Act
To temporarily extend the programs under the Higher Education Act of
1965, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Third Higher Education Extension Act
of 2006''.
SEC. 2. EXTENSION OF PROGRAMS.
Section 2(a) of the Higher Education Extension Act of 2005 (P.L.
109-81; 20 U.S.C. 1001 note) is amended by striking ``September 30,
2006'' and inserting ``June 30, 2007''.
SEC. 3. ELIGIBLE LENDER TRUSTEE RELATIONSHIPS WITH ELIGIBLE
INSTITUTIONS.
(a) Amendment.--Section 435(d) of the Higher Education Act of 1965
(20 U.S.C. 1085(d)) is amended by adding at the end the following new
paragraph:
``(7) Eligible lender trustees.--Notwithstanding any other
provision of this subsection, an eligible lender may not make or
hold a loan under this part as trustee for an institution of higher
education, or for an organization affiliated with an institution of
higher education, unless--
``(A) the eligible lender is serving as trustee for that
institution or organization as of the date of enactment of the
Third Higher Education Extension Act of 2006 under a contract
that was originally entered into before the date of enactment
of such Act and that continues in effect or is renewed after
such date; and
``(B) the institution or organization, and the eligible
lender, with respect to its duties as trustee, each comply on
and after January 1, 2007, with the requirements of paragraph
(2), except that--
``(i) the requirements of clauses (i), (ii), (vi), and
(viii) of paragraph (2)(A) shall, subject to clause (ii) of
this subparagraph, only apply to the institution (including
both an institution for which the lender serves as trustee
and an institution affiliated with an organization for
which the lender serves as trustee);
``(ii) in the case of an organization affiliated with
an institution--
``(I) the requirements of clauses (iii) and (v) of
paragraph (2)(A) shall apply to the organization; and
``(II) the requirements of clause (viii) of
paragraph (2)(A) shall apply to the institution or the
organization (or both), if the institution or
organization receives (directly or indirectly) the
proceeds described in such clause;
``(iii) the requirements of clauses (iv) and (ix) of
paragraph (2)(A) shall not apply to the eligible lender,
institution, or organization; and
``(iv) the eligible lender, institution, and
organization shall ensure that the loans made or held by
the eligible lender as trustee for the institution or
organization, as the case may be, are included in a
compliance audit in accordance with clause (vii) of
paragraph (2)(A).''.
(b) Effective Date.--The amendment made by subsection (a) shall not
apply with respect to any loan under part B of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1071 et seq.) disbursed before January
1, 2007.
SEC. 4. HISPANIC-SERVING INSTITUTIONS.
(a) Definition Changes.--Section 502(a) of the Higher Education Act
of 1965 (20 U.S.C. 1101a(a)) is amended--
(1) in paragraph (5)--
(A) by inserting ``and'' after the semicolon at the end of
subparagraph (A);
(B) in subparagraph (B)--
(i) by striking ``at the time of application,''; and
(ii) by inserting ``at the end of the award year
immediately preceding the date of application'' after
``Hispanic students'';
(C) by striking ``; and'' at the end of subparagraph (B)
and inserting a period; and
(D) by striking subparagraph (C); and
(2) by striking paragraph (7).
(b) Wait-Out Period Eliminated.--Section 504(a) of such Act (20
U.S.C. 1101c(a)) is amended to read as follows:
``(a) Award Period.--The Secretary may award a grant to a Hispanic-
serving institution under this title for 5 years.''.
SEC. 5. GUARANTY AGENCY ACCOUNT MAINTENANCE FEES.
Section 458(b) of the Higher Education Act of 1965 (20 U.S.C.
1087h(b)) is amended by striking ``shall not exceed'' and inserting
``shall be calculated on''.
SEC. 6. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SURVIVORS OF
VICTIMS OF THE SEPTEMBER 11, 2001, ATTACKS.
(a) Definitions.--For purposes of this section:
(1) Eligible public servant.--The term ``eligible public
servant'' means an individual who, as determined in accordance with
regulations of the Secretary--
(A) served as a police officer, firefighter, other safety
or rescue personnel, or as a member of the Armed Forces; and
(B) died (or dies) or became (or becomes) permanently and
totally disabled due to injuries suffered in the terrorist
attack on September 11, 2001.
(2) Eligible victim.--The term ``eligible victim'' means an
individual who, as determined in accordance with regulations of the
Secretary, died (or dies) or became (or becomes) permanently and
totally disabled due to injuries suffered in the terrorist attack
on September 11, 2001.
(3) Eligible parent.--The term ``eligible parent'' means the
parent of an eligible victim if--
(A) the parent owes a Federal student loan that is a
consolidation loan that was used to repay a PLUS loan incurred
on behalf of such eligible victim; or
(B) the parent owes a Federal student loan that is a PLUS
loan incurred on behalf of an eligible victim.
(4) Secretary.--The term ``Secretary'' means the Secretary of
Education.
(5) Federal student loan.--The term ``Federal student loan''
means any loan made, insured, or guaranteed under part B, D, or E
of title IV of the Higher Education Act of 1965.
(b) Relief From Indebtedness.--
(1) In general.--The Secretary shall provide for the discharge
or cancellation of--
(A) the Federal student loan indebtedness of the spouse of
an eligible public servant, as determined in accordance with
regulations of the Secretary, including any consolidation loan
that was used jointly by the eligible public servant and his or
her spouse to repay the Federal student loans of the spouse and
the eligible public servant;
(B) the portion incurred on behalf of the eligible victim
(other than an eligible public servant), of a Federal student
loan that is a consolidation loan that was used jointly by the
eligible victim and his or her spouse, as determined in
accordance with regulations of the Secretary, to repay the
Federal student loans of the eligible victim and his or her
spouse;
(C) the portion of the consolidation loan indebtedness of
an eligible parent that was incurred on behalf of an eligible
victim; and
(D) the PLUS loan indebtedness of an eligible parent that
was incurred on behalf of an eligible victim.
(2) Method of discharge or cancellation.--A loan required to be
discharged or canceled under paragraph (1) shall be discharged or
canceled by the method used under section 437(a), 455(a)(1), or
464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C.
1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is applicable to
such loan.
(c) Facilitation of Claims.--The Secretary shall--
(1) establish procedures for the filing of applications for
discharge or cancellation under this section by regulations that
shall be prescribed and published within 90 days after the date of
enactment of this Act and without regard to the requirements of
section 553 of title 5, United States Code, and section 437 of the
General Education Provisions Act (20 U.S.C. 1232); and
(2) take such actions as may be necessary to publicize the
availability of discharge or cancellation of Federal student loan
indebtedness under this section.
(d) Availability of Funds for Payments.--Funds available for the
purposes of making payments to lenders in accordance with section
437(a) for the discharge of indebtedness of deceased or disabled
individuals shall be available for making payments under section 437(a)
to lenders of loans as required by this section.
(e) Applicable to Outstanding Debt.--The provisions of this section
shall be applied to discharge or cancel only Federal student loans
(including consolidation loans) on which amounts were owed on September
11, 2001, except that nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
(f) Deadlines and Procedures.--Sections 482(c) and 492 of the
Higher Education Act of 1965 (20 U.S.C. 1089(c), 1098(a)) shall not
apply to any regulations required by this section.
SEC. 7. RULE OF CONSTRUCTION.
Nothing in this Act, or in the Higher Education Extension Act of
2005 as amended by this Act, shall be construed to limit or otherwise
alter the authorizations of appropriations for, or the durations of,
programs contained in the amendments made by the Higher Education
Reconciliation Act of 2005 (P.L. 109-171) to the provisions of the
Higher Education Act of 1965 and the Taxpayer-Teacher Protection Act of
2004.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.