PUBLIC LAW 110–109—OCT. 31, 2007 

THIRD HIGHER EDUCATION EXTENSION ACT 

OF 2007 

121 STAT. 1028 PUBLIC LAW 110–109—OCT. 31, 2007 

Public Law 110–109 

110th Congress 

An Act 

To temporarily extend the programs under the Higher Education Act of 1965, 

to amend the definition of an eligible not-for-profit holder, 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 2007’’. 

SEC. 2. EXTENSION OF PROGRAMS. 

Section 2(a) of the Higher Education Extension Act of 2005 

(Public Law 109–81; 20 U.S.C. 1001 note) is amended by striking 

‘‘October 31, 2007’’ and inserting ‘‘March 31, 2008’’. 

SEC. 3. 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 (Public Law 109– 

171) or by the College Cost Reduction and Access Act (Public 

Law 110–84) to the provisions of the Higher Education Act of 

1965 and the Taxpayer-Teacher Protection Act of 2004. 

SEC. 4. DEFINITION OF ELIGIBLE NOT-FOR-PROFIT HOLDER. 

Section 435(p) of the Higher Education Act of 1965 (20 U.S.C. 

1085(p)) is amended— 

(1) in paragraph (1), by striking subparagraph (D) and 

inserting the following: 

‘‘(D) acting as a trustee on behalf of a State, political 

subdivision, authority, agency, instrumentality, or other 

entity described in subparagraph (A), (B), or (C), regardless 

of whether such State, political subdivision, authority, 

agency, instrumentality, or other entity is an eligible lender 

under subsection (d).’’; and 

(2) in paragraph (2)— 

(A) in subparagraph (A)(i), by striking subclause (II) 

and inserting the following: 

‘‘(II) is acting as a trustee on behalf of a State, 

political subdivision, authority, agency, instrumentality, or other entity described in subparagraph 

(A), (B), or (C) of paragraph (1), regardless of 

whether such State, political subdivision, 

authority, agency, instrumentality, or other entity 

is an eligible lender under subsection (d), and such 

20 USC 1001 

note. 

Third Higher 

Education 

Extension Act of 

2007. 

20 USC 1001 

note. 

Oct. 31, 2007 

[S. 2258] 

PUBLIC LAW 110–109—OCT. 31, 2007 121 STAT. 1029 

State, political subdivision, authority, agency, 

instrumentality, or other entity, on the date of 

enactment of the College Cost Reduction and 

Access Act, was the sole beneficial owner of a 

loan eligible for any special allowance payment 

under section 438.’’; 

(B) in subparagraph (A)(ii), by inserting ‘‘of’’ after 

‘‘waive the requirements’’; 

(C) by amending subparagraph (B) to read as follows: 

‘‘(B) NO FOR-PROFIT OWNERSHIP OR CONTROL.— ‘‘(i) IN GENERAL.—No State, political subdivision, 

authority, agency, instrumentality, or other entity 

described in paragraph (1)(A), (B), or (C) shall be an 

eligible not-for-profit holder under this Act if such 

State, political subdivision, authority, agency, 

instrumentality, or other entity is owned or controlled, 

in whole or in part, by a for-profit entity. 

‘‘(ii) TRUSTEES.—A trustee described in paragraph 

(1)(D) shall not be an eligible not-for-profit holder 

under this Act with respect to a State, political subdivision, authority, agency, instrumentality, or other entity 

described in subparagraph (A), (B), or (C) of paragraph 

(1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity 

is an eligible lender under subsection (d), if such State, 

political subdivision, authority, agency, instrumentality, or other entity is owned or controlled, in whole 

or in part, by a for-profit entity.’’; 

(D) by amending subparagraph (C) to read as follows: 

‘‘(C) SOLE OWNERSHIP OF LOANS AND INCOME.—No 

State, political subdivision, authority, agency, instrumentality, trustee, or other entity described in paragraph (1)(A), 

(B), (C), or (D) shall be an eligible not-for-profit holder 

under this Act with respect to any loan, or income from 

any loan, unless— 

‘‘(i) such State, political subdivision, authority, 

agency, instrumentality, or other entity is the sole 

beneficial owner of such loan and the income from 

such loan; or 

‘‘(ii) such trustee holds the loan on behalf of a 

State, political subdivision, authority, agency, 

instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of 

whether such State, political subdivision, authority, 

agency, instrumentality, or other entity is an eligible 

lender under subsection (d), and such State, political 

subdivision, authority, agency, instrumentality, or 

other entity is the sole beneficial owner of such loan 

and the income from such loan.’’; 

(E) in subparagraph (D), by striking ‘‘an entity 

described in described in paragraph (1)(A), (B), or (C)’’ 

and inserting ‘‘a State, political subdivision, authority, 

agency, instrumentality, or other entity described in 

subparagraph (A), (B), or (C) of paragraph (1), regardless 

of whether such State, political subdivision, authority, 

agency, instrumentality, or other entity is an eligible lender 

under subsection (d),’’; and 

121 STAT. 1030 PUBLIC LAW 110–109—OCT. 31, 2007 

LEGISLATIVE HISTORY—S. 2258 (H.R. 3927): 

CONGRESSIONAL RECORD, Vol. 153 (2007): 

Oct. 30, considered and passed Senate and House. 

Æ 

(F) by amending subparagraph (E) to read as follows: 

‘‘(E) RULE OF CONSTRUCTION.—For purposes of subparagraphs (A), (B), (C), and (D) of this paragraph, a State, 

political subdivision, authority, agency, instrumentality, or 

other entity described in subparagraph (A), (B), or (C) 

of paragraph (1), regardless of whether such State, political 

subdivision, authority, agency, instrumentality, or other 

entity is an eligible lender under subsection (d), shall not— 

‘‘(i) be deemed to be owned or controlled, in whole 

or in part, by a for-profit entity; or 

‘‘(ii) lose its status as the sole owner of a beneficial 

interest in a loan and the income from a loan, 

by such State, political subdivision, authority, agency, 

instrumentality, or other entity, or by the trustee described 

in paragraph (1)(D), granting a security interest in, or 

otherwise pledging as collateral, such loan, or the income 

from such loan, to secure a debt obligation for which such 

State, political subdivision, authority, agency, instrumentality, or other entity is the issuer of the debt obligation.’’. 

Approved October 31, 2007.