Statute

H. R. 6138

One Hundred Ninth Congress
of the
United States of America
AT T H E S E C O N D S E S S I O N
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—

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‘‘(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

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(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

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(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 TaxpayerTeacher Protection Act of 2004.

Speaker of the House of Representatives.

Vice President of the United States and
President of the Senate.