PUBLIC LAW 107–122—JAN. 15, 2002

HIGHER EDUCATION RELIEF OPPORTUNITIES

FOR STUDENTS ACT OF 2001

115 STAT. 2386 PUBLIC LAW 107–122—JAN. 15, 2002

Public Law 107–122

107th Congress

An Act

To provide the Secretary of Education with specific waiver authority to respond

to conditions in the national emergency declared by the President on September

14, 2001.

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 ‘‘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

Higher Education

Relief

Opportunities for

Students Act of

2001.

20 USC 1070

note.

Jan. 15, 2002

[S. 1793]

PUBLIC LAW 107–122—JAN. 15, 2002 115 STAT. 2387

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

Deadline.

Federal Register,

publication.

115 STAT. 2388 PUBLIC LAW 107–122—JAN. 15, 2002

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

that 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) is serving on National Guard duty during the

national emergency;

(C) 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

(D) 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 EMER- GENCY.—The term ‘‘serving on active duty during the national

emergency’’ shall include service by 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.

PUBLIC LAW 107–122—JAN. 15, 2002 115 STAT. 2389

LEGISLATIVE HISTORY—S. 1793 (H.R. 3086):

CONGRESSIONAL RECORD, Vol. 147 (2001):

Dec. 14, considered and passed Senate.

Dec. 19, 20, considered and passed House.

Æ

(6) SERVING ON NATIONAL GUARD DUTY DURING THE

NATIONAL EMERGENCY.—The term ‘‘serving on National Guard

duty during the national emergency’’ shall include performing

training or other duty authorized by section 502(f) of title

32, United States Code, as a member of the National Guard,

at the request of the President, for or in support of an operation

during the national emergency.

SEC. 6. TERMINATION OF AUTHORITY.

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

Approved January 15, 2002.