[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

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--

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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 1342]]
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

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