To provide the Secretary of Education with specific waiver authority to respond to conditions in the national emergency declared by the President of the United States on September 14, 2001.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Higher Education Relief 
Opportunities for Students Act of 2001''.

SEC. 2. WAIVER AUTHORITY FOR RESPONSE TO NATIONAL EMERGENCY.

    (a) Waivers and Modifications.--
            (1) In general.--Notwithstanding any other provision of 
        law, unless enacted with specific reference to this section, 
        the Secretary of Education (referred to in this Act as the 
        `Secretary') may waive or modify any statutory or regulatory 
        provision applicable to the student financial aid programs 
        under title IV of the Higher Education Act of 1965 (20 U.S.C. 
        1070 et seq.) as the Secretary deems necessary in connection 
        with the national emergency to provide the waivers or 
        modifications authorized by paragraph (2).
            (2) Actions authorized.--The Secretary is authorized to 
        waive or modify any provision described in paragraph (1) as may 
        be necessary to ensure that--
                    (A) borrowers of Federal student loans who are 
                affected individuals are not placed in a worse position 
                financially in relation to those loans because of their 
                status as affected individuals;
                    (B) administrative requirements placed on affected 
                individuals who are borrowers of Federal student loans 
                are minimized, to the extent possible without impairing 
                the integrity of the student loan programs, to ease the 
                burden on such borrowers and avoid inadvertent, 
                technical violations or defaults;
                    (C) the calculation of ``annual adjusted family 
                income'' and ``available income'', as used in the 
                determination of need for student financial assistance 
                under title IV of the Higher Education Act of 1965 (20 
                U.S.C. 1070 et seq.) for any such affected individual 
                (and the determination of such need for his or her 
                spouse and dependents, if applicable), may be modified 
                to mean the sums received in the first calendar year of 
                the award year for which such determination is made, in 
                order to reflect more accurately the financial 
                condition of such affected individual and his or her 
                family; and
                    (D) institutions of higher education, eligible 
                lenders, guaranty agencies, and other entities 
                participating in the student assistance programs under 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070 et seq.) that are located in, or whose operations 
                are directly affected by, areas that are declared 
                disaster areas by any Federal, State, or local official 
                in connection with the national emergency may be 
                granted temporary relief from requirements that are 
                rendered infeasible or unreasonable by the national 
                emergency, including due diligence requirements and 
                reporting deadlines.
    (b) Notice of Waivers or Modifications.--
            (1) In general.--Notwithstanding section 437 of the General 
        Education Provisions Act (20 U.S.C. 1232) and section 553 of 
        title 5, United States Code, the Secretary shall, by notice in 
        the Federal Register, publish the waivers or modifications of 
        statutory and regulatory provisions the Secretary deems 
        necessary to achieve the purposes of this section.
            (2) Terms and conditions.--The notice under paragraph (1) 
        shall include the terms and conditions to be applied in lieu of 
        such statutory and regulatory provisions.
            (3) Case-by-case basis.--The Secretary is not required to 
        exercise the waiver or modification authority under this 
        section on a case-by-case basis.
    (c) Impact Report.--The Secretary shall, not later than 15 months 
after first exercising any authority to issue a waiver or modification 
under subsection (a), report to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on Health, 
Education, Labor and Pensions of the Senate on the impact of any 
waivers or modifications issued pursuant to subsection (a) on affected 
individuals and the programs under title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1070 et seq.), and the basis for such determination, 
and include in such report the Secretary's recommendations for changes 
to the statutory or regulatory provisions that were the subject of such 
waiver or modification.
    (d) No Delay in Waivers and Modifications.--Sections 482(c) and 492 
of the Higher Education Act of 1965 (20 U.S.C. 1089(c), 1098a) shall 
not apply to the waivers and modifications authorized or required by 
this Act.

SEC. 3. TUITION REFUNDS OR CREDITS FOR MEMBERS OF ARMED FORCES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) all institutions offering postsecondary education 
        should provide a full refund to students who are members of the 
        Armed Forces serving on active duty during the national 
        emergency, for that portion of a period of instruction such 
        student was unable to complete, or for which such individual 
        did not receive academic credit, because he or she was called 
        up for such service; and
            (2) if affected individuals withdraw from a course of study 
        as a result of such service, such institutions should make 
        every effort to minimize deferral of enrollment or 
        reapplication requirements and should provide the greatest 
        flexibility possible with administrative deadlines related to 
        those applications.
    (b) Definition of Full Refund.--For purposes of this section, a 
full refund includes a refund of required tuition and fees, or a credit 
in a comparable amount against future tuition and fees.

SEC. 4. USE OF PROFESSIONAL JUDGMENT.

    At the time of publishing any waivers or modifications pursuant to 
section 2(b), the Secretary shall publish examples of measures which 
institutions may take in the appropriate exercise of discretion under 
section 479A of the Higher Education Act of 1965 (20 U.S.C. 1087tt) to 
adjust financial need and aid eligibility determinations for affected 
individuals.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Active duty.--The term `active duty' has the meaning 
        given such term in section 101(d)(1) of title 10, United States 
        Code, except that such term does not include active duty for 
        training or attendance at a service school.
            (2) Affected individual.--The term `affected individual' 
        means an individual who--
                    (A) is serving on active duty during the national 
                emergency;
                    (B) resides or is employed in an area that is 
                declared a disaster area by any Federal, State, or 
                local official in connection with the national 
                emergency; or
                    (C) suffered direct economic hardship as a direct 
                result of the national emergency, as determined under a 
                waiver or modification issued under this Act.
            (3) Federal student loan.--The term `Federal student loan' 
        means a loan made, insured, or guaranteed under part B, D, or E 
        of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 
        et seq., 20 U.S.C. 1087a et seq., and 20 U.S.C. 1087aa et 
        seq.).
            (4) National emergency.--The term `national emergency' 
        means the national emergency by reason of certain terrorist 
        attacks declared by the President on September 14, 2001, or 
        subsequent national emergencies declared by the President by 
        reason of terrorist attacks.
            (5) Serving on active duty during the national emergency.--
        The term `serving on active duty during the national emergency' 
        shall include an individual who is--
                    (A) a Reserve of an Armed Force ordered to active 
                duty under section 12301(a), 12301(g), 12302, 12304, or 
                12306 of title 10, United States Code, or any retired 
                member of an Armed Force ordered to active duty under 
                section 688 of such title, for service in connection 
                with such emergency or subsequent actions or 
                conditions, regardless of the location at which such 
                active duty service is performed; and
                    (B) any other member of an Armed Force on active 
                duty in connection with such emergency or subsequent 
                actions or conditions who has been assigned to a duty 
                station at a location other than the location at which 
                such member is normally assigned.

SEC. 6. TERMINATION OF AUTHORITY.

    The provisions of this Act shall cease to be effective on September 
30, 2003.

            Passed the House of Representatives October 23, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Higher Education Relief Opportunities for Students Act of 2001 - Authorizes the Secretary of Education to waive or modify certain requirements of student financial aid programs under title IV of the Higher Education Act of 1965 as the Secretary deems necessary in connection with the national emergency declared by the President with respect to the terrorist attacks of September 11, 2001, or any subsequent national emergency declared by reason of terrorist attacks . Authorizes such waivers or modifications in order to provide relief from certain financial and administrative burdens to affected individuals who: (1) are serving on active duty during the emergency. (2) reside or are employed in a disaster area declared by any Federal, State, or local official in connection with the emergency. Or (3) suffered direct economic hardship as a direct result of the emergency, as determined under a waiver or modification issued under this Act. Authorizes waiver or modification of certain reporting requirements for institutions of higher education, lenders, guarantee agencies, and other entities participating in such programs, if such entities are located in such declared disaster areas connected to the emergency. Expresses the sense of Congress that: (1) all institutions offering postsecondary education should provide a full refund to students who are members of the Armed Forces serving on active duty during the national emergency, for that portion of a period of instruction such student was unable to complete, or for which such individual did not receive academic credit, because he or she was called up for such service. And (2) if affected individuals withdraw from a course of study as a result of such service, such institutions should make every effort to minimize deferral of enrollment or reapplication requirements and should provide the greatest flexibility possible with administrative deadlines related to those applications.