Third Higher Education Extension Act of 2006

(This measure has not been amended since it was passed by the House on September 27, 2006. The summary of that version is repeated here.)

Third Higher Education Extension Act of 2006 - Amends the Higher Education Extension Act of 2005 to extend the programs under the Higher Education Act of 1965 through June 30, 2007.

Amends the Higher Education Act of 1965 to bar trustees of institutions of higher education (IHEs), or of institution-affiliated organizations, from serving as eligible lenders under the Federal Family Education Loan (FFEL) program, unless the trusteeship continues pursuant to a contract entered into before the enactment of this Act. Imposes specified requirements on exempt lender-trustees and the IHEs or institution-affiliated organizations they serve. Subjects exempt lender-trustee loans to compliance audits.

Alters the grant program for Hispanic-serving IHEs to: (1) move the time at which at least 25% of their full-time students must be Hispanic, from the time such IHEs apply for a new grant back to the end of the preceding grant year; (2) eliminate the requirement that at least 50% of their Hispanic students be poor; and (3) eliminate the two-year waiting period between grant applications.

Requires that account maintenance fees payable to guarantee agencies under the FFEL program be calculated on the basis of .10% of the original principal amount of such outstanding loans on which insurance was issued. (Currently, such fees are capped at such percentage.)

Directs the Secretary of Education to discharge or cancel the federal student loan indebtedness of spouses and parents of individuals who died (or die) or who became (or become) permanently and totally disabled from injuries suffered in the terrorist attacks on September 11, 2001.

States that, in the case of a consolidation loan used jointly by a victim of such attacks and his or her spouse, the discharge or cancellation shall apply only to that portion of debt incurred on behalf of the victim; except that, where the victim served as a police officer, firefighter, other safety or rescue personnel, or member of the Armed Forces, all of the debt on such loan shall be discharged or canceled.

[109th Congress Public Law 292]
[From the U.S. Government Publishing Office]


[DOCID: f:publ292.109]

[[Page 1339]]

              THIRD HIGHER EDUCATION EXTENSION ACT OF 2006

[[Page 120 STAT. 1340]]

Public Law 109-292
109th Congress

                                 An Act


 
  To temporarily extend the programs under the Higher Education Act of 
 1965, and for other purposes. <<NOTE: Sept. 30, 2006 -  [H.R. 6138]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Third 
Higher Education Extension Act of 2006. 20 USC 1001 note.>> 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--

[[Page 120 STAT. 1341]]

                                    ``(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) <<NOTE: 20 USC 1085 note.>> 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

[[Page 120 STAT. 1342]]

                    (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 <<NOTE: Procedures. Regulations. Deadline.>> 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

[[Page 120 STAT. 1343]]

            (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. <<NOTE: 20 USC 1001 note.>> 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.

    Approved September 30, 2006.

LEGISLATIVE HISTORY--H.R. 6138:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 152 (2006):
            Sept. 27, considered and passed House.
            Sept. 29, considered and passed Senate.

                                  <all>