113 
credits attributable to transactions entered into after 
the date of the enactment of this Act. 
SEC. 1410. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
The percentage under paragraph (1) of section 
202(b) of the Corporate Estimated Tax Shift Act of 2009 
in effect on the date of the enactment of this Act is in-
creased by 15.75 percentage points. 
Subtitle F—Other Provisions 
SEC. 1501. COMMUNITY COLLEGE AND CAREER TRAINING 
GRANT PROGRAM. 
Section 279(b) of the Trade Act of 1974 (19 U.S.C. 
2372a(b)) is amended by striking ‘‘SUPPLEMENT’’ and all 
that follows through ‘‘Funds’’ and inserting ‘‘There are’’ 
and by striking ‘‘pursuant’’ and all that follows and insert-
ing ‘‘$500,000,000 for each of fiscal years 2011, 2012, 
2013, and 2014 to carry out this subchapter, except that 
the limitations contained in section 278(a)(2) shall not 
apply to such funds and each State shall receive not less 
than 0.5 percent of the amount appropriated pursuant to 
this subsection for each such fiscal year.’’.
114 
TITLE II—EDUCATION AND 
HEALTH 
Subtitle A—Education 
SEC. 2001. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This subtitle may be cited as the 
‘‘SAFRA Act’’. 
(b) REFERENCES.—Except as otherwise expressly 
provided, whenever in this subtitle an amendment or re-
peal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 
PART I—INVESTING IN STUDENTS AND FAMILIES 
SEC. 2101. FEDERAL PELL GRANTS. 
(a) AMOUNT
OF
GRANTS.—Section 401(b) (20 
U.S.C. 1070a(b)) is amended— 
(1) by amending paragraph (2)(A) to read as 
follows: 
‘‘(A) The amount of the Federal Pell 
Grant for a student eligible under this part 
shall be— 
‘‘(i) the maximum Federal Pell Grant, 
as specified in the last enacted appropria-
tion Act applicable to that award year, 
plus
115 
‘‘(ii) the amount of the increase cal-
culated under paragraph (8)(B) for that 
year, less 
‘‘(iii) an amount equal to the amount 
determined to be the expected family con-
tribution with respect to that student for 
that year.’’; and 
(2) in paragraph (8)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), 
by striking ‘‘, to carry out subparagraph 
(B) of this paragraph’’; and 
(ii) by striking clauses (iii) through 
(x) and inserting the following: 
‘‘(iii) to carry out subparagraph (B) 
of this paragraph, such sums as may be 
necessary for fiscal year 2010 and each 
subsequent fiscal year to provide the 
amount of increase of the maximum Fed-
eral Pell Grant required by clauses (ii) and 
(iii) of subparagraph (B); and 
‘‘(iv) to carry out this section, 
$13,500,000,000 for fiscal year 2011.’’; 
(B) in subparagraph (B)—
116 
(i) in the matter preceding clause (i), 
by striking ‘‘subparagraph (A)’’ and insert-
ing ‘‘clauses (i) through (iii) of subpara-
graph (A)’’; 
(ii) in clause (ii), by striking ‘‘and 
2011–2012’’ and inserting ‘‘, 2011–2012, 
and 2012–2013’’; and 
(iii) by striking clause (iii) and insert-
ing the following: 
‘‘(iii) the amount determined under 
subparagraph (C) for each succeeding 
award year.’’; 
(C) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) ADJUSTMENT AMOUNTS.— 
‘‘(i) AWARD
YEAR
2013–2014.—For 
award year 2013–2014, the amount deter-
mined under this subparagraph for pur-
poses of subparagraph (B)(iii) shall be 
equal to— 
‘‘(I) $5,550 or the total max-
imum Federal Pell Grant for the pre-
ceding award year (as determined 
under clause (v)(II)), whichever is 
greater, increased by a percentage
117 
equal to the annual adjustment per-
centage for award year 2013–2014, 
reduced by 
‘‘(II) $4,860 or the maximum 
Federal Pell Grant for which a stu-
dent was eligible for the preceding 
award year, as specified in the last en-
acted appropriation Act applicable to 
that year, whichever is greater; and 
‘‘(III) rounded to the nearest $5. 
‘‘(ii) 
AWARD
YEARS
2014–2015 
THROUGH
2017–2018.—For each of the 
award years 2014–2015 through 2017– 
2018, the amount determined under this 
subparagraph for purposes of subpara-
graph (B)(iii) shall be equal to— 
‘‘(I) the total maximum Federal 
Pell Grant for the preceding award 
year (as determined under clause 
(v)(II)), increased by a percentage 
equal to the annual adjustment per-
centage for the award year for which 
the amount under this subparagraph 
is being determined, reduced by
118 
‘‘(II) $4,860 or the maximum 
Federal Pell Grant for which a stu-
dent was eligible for the preceding 
award year, as specified in the last en-
acted appropriation Act applicable to 
that year, whichever is greater; and 
‘‘(III) rounded to the nearest $5. 
‘‘(iii) SUBSEQUENT AWARD YEARS.— 
For award year 2018–2019 and each sub-
sequent award year, the amount deter-
mined under this subparagraph for pur-
poses of subparagraph (B)(iii) shall be 
equal to the amount determined under 
clause (ii) for award year 2017–2018. 
‘‘(iv) LIMITATION
ON
DECREASES.— 
Notwithstanding clauses (i), (ii), and (iii), 
if the amount determined under clause (i), 
(ii), or (iii) for a particular award year is 
less than the amount determined under 
this paragraph for the award year pre-
ceding that particular award year, then the 
amount determined under such clause for 
that particular award year shall be the 
amount determined under this paragraph 
for the preceding award year.
119 
‘‘(v) DEFINITIONS.—For purposes of 
this subparagraph— 
‘‘(I) the term ‘annual adjustment 
percentage’ as applied to an award 
year, is equal to the estimated per-
centage change in the Consumer Price 
Index (as determined by the Sec-
retary, using the definition in section 
478(f)) for the most recent calendar 
year ending prior to the beginning of 
that award year; and 
‘‘(II) the term ‘total maximum 
Federal Pell Grant’ as applied to a 
preceding award year, is equal to the 
sum of— 
‘‘(aa) the maximum Federal 
Pell Grant for which a student is 
eligible during an award year, as 
specified in the last enacted ap-
propriation Act applicable to that 
preceding award year; and 
‘‘(bb) the amount of the in-
crease in the maximum Federal 
Pell Grant required by this para-
120 
graph for that preceding award 
year.’’; 
(D) by striking subparagraph (E); and 
(E) by redesignating subparagraph (F) as 
subparagraph (E). 
(b) CONFORMING
AMENDMENTS.—Title IV (20 
U.S.C. 1070 et seq.) is further amended— 
(1) in section 401(b) (20 U.S.C. 1070a(b))— 
(A) in paragraph (4)— 
(i) by striking ‘‘maximum basic grant 
level specified in the appropriate appro-
priation Act’’ and inserting ‘‘maximum 
amount of a Federal Pell Grant award de-
termined under paragraph (2)(A)’’; and 
(ii) by striking ‘‘such level’’ each place 
it appears and inserting ‘‘such Federal Pell 
Grant amount’’ in each such place; and 
(B) in paragraph (6), by striking ‘‘the 
grant level specified in the appropriate Appro-
priation Act for this subpart for such year’’ and 
inserting ‘‘the maximum amount of a Federal 
Pell Grant award determined under paragraph 
(2)(A), for which a student is eligible during 
such award year’’;
121 
(2) in section 402D(d)(1) (20 U.S.C. 1070a– 
14(d)(1)), by striking ‘‘exceed the maximum’’ and 
all that follows through ‘‘Grant, for’’ and inserting 
‘‘exceed the Federal Pell Grant amount, determined 
under section 401(b)(2)(A), for which a student is 
eligible, or be less than the minimum Federal Pell 
Grant amount described in section 401(b)(4), for’’; 
(3) in section 435(a)(5)(A)(i)(I) (20 U.S.C. 
1085(a)(5)(A)(i)(I)), by striking ‘‘one-half the max-
imum Federal Pell Grant award for which a student 
would be eligible’’ and inserting ‘‘one-half the Fed-
eral Pell Grant amount, determined under section 
401(b)(2)(A), for which a student would be eligible’’; 
(4) in section 483(e)(3)(A)(ii) (20 U.S.C. 
1090(e)(3)(A)(ii)), by striking ‘‘based on the max-
imum Federal Pell Grant award at the time of appli-
cation’’ and inserting ‘‘based on the Federal Pell 
Grant 
amount, 
determined 
under 
section 
401(b)(2)(A), for which a student is eligible at the 
time of application’’; 
(5) in section 485E(b)(1)(A) (20 U.S.C. 
1092f(b)(1)(A)), by striking ‘‘of such students’ po-
tential eligibility for a maximum Federal Pell Grant 
under subpart 1 of part A’’ and inserting ‘‘of such 
students’ potential eligibility for the Federal Pell
123 
SEC. 2103. INVESTMENT IN HISTORICALLY BLACK COL-
LEGES AND UNIVERSITIES AND MINORITY- 
SERVING INSTITUTIONS. 
Section 371(b)(1)(A) (20 U.S.C. 1067q(b)(1)(A)) is 
amended by striking ‘‘and 2009.’’ and all that follows and 
inserting ‘‘through 2019. The authority to award grants 
under this section shall expire at the end of fiscal year 
2019.’’. 
PART II—STUDENT LOAN REFORM 
SEC. 2201. TERMINATION OF FEDERAL FAMILY EDUCATION 
LOAN APPROPRIATIONS. 
Section 421 (20 U.S.C. 1071) is amended— 
(1) in subsection (b), in the first sentence of 
the matter following paragraph (6), by inserting ‘‘, 
except that no sums may be expended after June 30, 
2010, with respect to loans under this part for which 
the first disbursement is after such date’’ after ‘‘ex-
pended’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) TERMINATION OF AUTHORITY TO MAKE OR IN-
SURE NEW LOANS.—Notwithstanding paragraphs (1) 
through (6) of subsection (b) or any other provision of 
law—
124 
‘‘(1) no new loans (including consolidation 
loans) may be made or insured under this part after 
June 30, 2010; and 
‘‘(2) no funds are authorized to be appro-
priated, or may be expended, under this Act or any 
other Act to make or insure loans under this part 
(including consolidation loans) for which the first 
disbursement is after June 30, 2010, 
except as expressly authorized by an Act of Congress en-
acted after the date of enactment of the SAFRA Act.’’. 
SEC. 2202. TERMINATION OF FEDERAL LOAN INSURANCE 
PROGRAM. 
Section 424(a) (20 U.S.C. 1074(a)) is amended by 
striking ‘‘September 30, 1976,’’ and all that follows and 
inserting ‘‘September 30, 1976, for each of the succeeding 
fiscal years ending prior to October 1, 2009, and for the 
period from October 1, 2009, to June 30, 2010, for loans 
first disbursed on or before June 30, 2010.’’. 
SEC. 
2203. 
TERMINATION 
OF 
APPLICABLE 
INTEREST 
RATES. 
Section 427A(l) (20 U.S.C. 1077a(l)) is amended— 
(1) in the subsection heading, by inserting 
‘‘AND BEFORE JULY 1, 2010’’ after ‘‘2006’’; 
(2) in paragraph (1), by inserting ‘‘and before 
July 1, 2010,’’ after ‘‘July 1, 2006,’’;
125 
(3) in paragraph (2), by inserting ‘‘and before 
July 1, 2010,’’ after ‘‘July 1, 2006,’’; 
(4) in paragraph (3), by inserting ‘‘and that 
was disbursed before July 1, 2010,’’ after ‘‘July 1, 
2006,’’; and 
(5) in paragraph (4)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘July 1, 2012’’ and inserting 
‘‘July 1, 2010’’; and 
(B) by repealing subparagraphs (D) and 
(E). 
SEC. 2204. TERMINATION OF FEDERAL PAYMENTS TO RE-
DUCE STUDENT INTEREST COSTS. 
(a) HIGHER EDUCATION ACT OF 1965.—Section 428 
(20 U.S.C. 1078) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘for 
which the first disbursement is made before 
July 1, 2010, and’’ after ‘‘eligible institution’’; 
and 
(B) in paragraph (5), by striking ‘‘Sep-
tember 30, 2014,’’ and all that follows through 
the period and inserting ‘‘June 30, 2010.’’; 
(2) in subsection (b)(1)—
126 
(A) in subparagraph (G)(ii), by inserting 
‘‘and before July 1, 2010,’’ after ‘‘July 1, 
2006,’’; and 
(B) in subparagraph (H)(ii), by inserting 
‘‘and that are first disbursed before July 1, 
2010,’’ after ‘‘July 1, 2006,’’; 
(3) in subsection (f)(1)(A)(ii)— 
(A) by striking ‘‘during fiscal years begin-
ning’’; and 
(B) by inserting ‘‘and first disbursed be-
fore July 1, 2010,’’ after ‘‘October 1, 2003,’’; 
and 
(4) in subsection (j)(1), by inserting ‘‘, before 
July 1, 2010,’’ after ‘‘section 435(d)(1)(D) of this 
Act shall’’. 
(b) COLLEGE COST REDUCTION AND ACCESS ACT.— 
Section 303 of the College Cost Reduction and Access Act 
(Public Law 110–84) is repealed. 
SEC. 2205. TERMINATION OF FFEL PLUS LOANS. 
Section 428B(a)(1) (20 U.S.C. 1078–2(a)(1)) is 
amended by striking ‘‘A graduate’’ and inserting ‘‘Prior 
to July 1, 2010, a graduate’’. 
SEC. 2206. FEDERAL CONSOLIDATION LOANS. 
(a) IN GENERAL.—Section 428C (20 U.S.C. 1078– 
3) is amended—
127 
(1) in subsection (a)(4)(A), by inserting ‘‘, and 
first disbursed before July 1, 2010’’ after ‘‘under 
this part’’; 
(2) in subsection (b)— 
(A) in paragraph (1)(E), by inserting be-
fore the semicolon ‘‘, and before July 1, 2010’’; 
and 
(B) in paragraph (5), by striking ‘‘In the 
event that’’ and inserting ‘‘If, before July 1, 
2010,’’; 
(3) in subsection (c)(1)— 
(A) in subparagraph (A)(ii), by inserting 
‘‘and that is disbursed before July 1, 2010,’’ 
after ‘‘2006,’’; and 
(B) in subparagraph (C), by inserting 
‘‘and disbursed before July 1, 2010,’’ after 
‘‘1994,’’; and 
(4) in subsection (e), by striking ‘‘September 
30, 2014.’’ and inserting ‘‘June 30, 2010. No loan 
may be made under this section for which the dis-
bursement is on or after July 1, 2010.’’. 
(b) TEMPORARY LOAN CONSOLIDATION AUTHOR-
ITY.—Part D of title IV (20 U.S.C. 1087a et seq.) is 
amended by inserting after section 459A (20 U.S.C. 
1087i) the following:
128 
‘‘SEC. 459B. TEMPORARY LOAN CONSOLIDATION AUTHOR-
ITY. 
‘‘(a) TEMPORARY LOAN CONSOLIDATION AUTHOR-
ITY.— 
‘‘(1) IN GENERAL.—A borrower who has 1 or 
more loans in 2 or more of the categories described 
in paragraph (2), and who has not yet entered re-
payment on 1 or more of those loans in any of the 
categories, may consolidate all of the loans of the 
borrower that are described in paragraph (2) into a 
Federal Direct Consolidation Loan during the period 
described in paragraph (3). 
‘‘(2) CATEGORIES
OF
LOANS
THAT
MAY
BE 
CONSOLIDATED.—The categories of loans that may 
be consolidated under paragraph (1) are— 
‘‘(A) loans made under this part; 
‘‘(B) loans purchased by the Secretary 
pursuant to section 459A; and 
‘‘(C) loans made under part B that are 
held by an eligible lender, as such term is de-
fined in section 435(d). 
‘‘(3) TIME PERIOD IN WHICH LOANS MAY BE 
CONSOLIDATED.—The Secretary may make a Fed-
eral Direct Consolidation Loan under this section to 
a borrower whose application for such Federal Di-
129 
rect Consolidation Loan is received on or after July 
1, 2010, and before July 1, 2011. 
‘‘(b) TERMS OF LOANS.—A Federal Direct Consoli-
dation Loan made under this section shall have the same 
terms and conditions as a Federal Direct Consolidation 
Loan made under section 455(g), except that— 
‘‘(1) in determining the applicable rate of inter-
est on the Federal Direct Consolidation Loan made 
under this section (other than on a Federal Direct 
Consolidation Loan described in paragraph (2)), sec-
tion 427A(l)(3) shall be applied without rounding 
the weighted average of the interest rate on the 
loans consolidated to the nearest higher one-eighth 
of 1 percent as described in subparagraph (A) of 
section 427A(l)(3); and 
‘‘(2) if a Federal Direct Consolidation Loan 
made under this section that repays a loan which is 
subject to an interest rate determined under section 
427A(g)(2), (j)(2), or (k)(2), then the interest rate 
for such Federal Direct Consolidation Loan shall be 
calculated— 
‘‘(A) by using the applicable rate of inter-
est described in section 427A(g)(2), (j)(2), or 
(k)(2), respectively; and
130 
‘‘(B) 
in 
accordance 
with 
section 
427A(l)(3).’’. 
SEC. 2207. TERMINATION OF UNSUBSIDIZED STAFFORD 
LOANS FOR MIDDLE-INCOME BORROWERS. 
Section 428H (20 U.S.C. 1078–8) is amended— 
(1) in subsection (a), by inserting ‘‘that are 
first disbursed before July 1, 2010,’’ after ‘‘under 
this part’’; 
(2) in subsection (b)— 
(A) by striking ‘‘Any student’’ and insert-
ing ‘‘Prior to July 1, 2010, any student’’; and 
(B) by inserting ‘‘for which the first dis-
bursement is made before such date’’ after ‘‘un-
subsidized Federal Stafford Loan’’; and 
(3) in subsection (h), by inserting ‘‘and that are 
first disbursed before July 1, 2010,’’ after ‘‘July 1, 
2006,’’. 
SEC. 2208. TERMINATION OF SPECIAL ALLOWANCES. 
Section 438 (20 U.S.C. 1087–1) is amended— 
(1) in subsection (b)(2)(I)— 
(A) in the subclause heading, by inserting 
‘‘, AND BEFORE JULY 1, 2010’’ after ‘‘2000’’; 
(B) in clause (i), by inserting ‘‘and before 
July 1, 2010,’’ after ‘‘2000,’’;
131 
(C) in clause (ii)(II), by inserting ‘‘and be-
fore July 1, 2010,’’ after ‘‘2006,’’; 
(D) in clause (iii), by inserting ‘‘and before 
July 1, 2010,’’ after ‘‘2000,’’; 
(E) in clause (iv), by inserting ‘‘and that 
is disbursed before July 1, 2010,’’ after 
‘‘2000,’’; 
(F) in clause (v)(I), by inserting ‘‘and be-
fore July 1, 2010,’’ after ‘‘2006,’’; and 
(G) in clause (vi)— 
(i) in the clause heading, by inserting 
‘‘, AND BEFORE JULY 1, 2010’’ after ‘‘2007’’; 
and 
(ii) in the matter preceding subclause 
(I), by inserting ‘‘and before July 1, 
2010,’’ after ‘‘2007,’’; 
(2) in subsection (c)— 
(A) in paragraph (2)(B)— 
(i) in clause (iii), by inserting ‘‘and’’ 
after the semicolon; 
(ii) in clause (iv), by striking ‘‘; and’’ 
and inserting a period; and 
(iii) by striking clause (v); and
132 
(B) in paragraph (6), by inserting ‘‘and 
first disbursed before July 1, 2010,’’ after 
‘‘1992,’’; and 
(3) in subsection (d)(2)(B), by inserting ‘‘, and 
before July 1, 2010’’ after ‘‘2007’’. 
SEC. 2209. ORIGINATION OF DIRECT LOANS AT INSTITU-
TIONS OUTSIDE THE UNITED STATES. 
(a) LOANS
FOR STUDENTS ATTENDING INSTITU-
TIONS OUTSIDE THE UNITED STATES.—Section 452 (20 
U.S.C. 1087b) is amended by adding at the end the fol-
lowing: 
‘‘(d) 
INSTITUTIONS
OUTSIDE
THE
UNITED 
STATES.—Loan funds for students (and parents of stu-
dents) attending institutions outside the United States 
shall be disbursed through a financial institution located 
or operating in the United States and designated by the 
Secretary to serve as the agent of such institutions with 
respect to the receipt of the disbursements of such loan 
funds and the transfer of such funds to such institutions. 
To be eligible to receive funds under this part, an institu-
tion outside the United States shall make arrangements 
with the agent designated by the Secretary under this sub-
section to receive funds under this part.’’. 
(b) CONFORMING AMENDMENTS.—
133 
(1) AMENDMENTS.—Section 102 (20 U.S.C. 
1002), as amended by section 102 of the Higher 
Education Opportunity Act (Public Law 110–315) 
and section 101 of Public Law 111–39, is amend-
ed— 
(A) by striking ‘‘part B’’ each place the 
term appears and inserting ‘‘part D’’; 
(B) in subsection (a)(1)(C), by inserting ‘‘, 
consistent with the requirements of section 
452(d)’’ before the period at the end; and 
(C) in subsection (a)(2)(A)— 
(i) in the second sentence of the mat-
ter preceding clause (i), by striking ‘‘made, 
insured, or guaranteed’’ and inserting 
‘‘made’’; and 
(ii) in clause (iii)— 
(I) in subclause (III), by striking 
‘‘only Federal Stafford’’ and all that 
follows through ‘‘section 428B’’ and 
inserting ‘‘only Federal Direct Staf-
ford 
Loans 
under 
section 
455(a)(2)(A), Federal Direct Unsub-
sidized Stafford Loans under section 
455(a)(2)(D), 
or 
Federal 
Direct
134 
PLUS 
Loans 
under 
section 
455(a)(2)(B)’’; and 
(II) in subclause (V), by striking 
‘‘a Federal Stafford’’ and all that fol-
lows through ‘‘section 428B’’ and in-
serting ‘‘a Federal Direct Stafford 
Loan under section 455(a)(2)(A), a 
Federal Direct Unsubsidized Stafford 
Loan under section 455(a)(2)(D), or a 
Federal Direct PLUS Loan under 
section 455(a)(2)(B)’’. 
(2) EFFECTIVE DATE.—The amendments made 
by subparagraph (C) of paragraph (1) shall be effec-
tive on July 1, 2010, as if enacted as part of section 
102(a)(1) of the Higher Education Opportunity Act 
(Public Law 110–315) and subject to section 102(e) 
of such Act as amended by section 101(a)(2) of 
Public Law 111–39 (20 U.S.C. 1002 note). 
SEC. 2210. CONFORMING AMENDMENTS. 
(a) AMENDMENTS.—Section 454 (20 U.S.C. 1087d) 
is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (4); and
135 
(B) 
by 
redesignating 
paragraphs 
(5) 
through (7) as paragraphs (4) through (6), re-
spectively; and 
(2) in subsection (b)(2), by striking ‘‘(5), (6), 
and (7)’’ and inserting ‘‘(5), and (6)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on July 1, 2010. 
SEC. 2211. TERMS AND CONDITIONS OF LOANS. 
(a) IN GENERAL.—Section 455 (20 U.S.C. 1087e) is 
amended— 
(1) in subsection (a)(1), by inserting ‘‘, and 
first disbursed on June 30, 2010,’’ before ‘‘under 
sections 428’’; and 
(2) in subsection (g)— 
(A) by inserting ‘‘, including any loan 
made under part B and first disbursed before 
July 1, 2010’’ after ‘‘section 428C(a)(4)’’; and 
(B) by striking the third sentence. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a)(1) shall apply with respect to loans first dis-
bursed under part D of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1087a et seq.) on or after July 
1, 2010.
136 
SEC. 2212. CONTRACTS; MANDATORY FUNDS. 
(a) CONTRACTS.—Section 456 (20 U.S.C. 1087f) is 
amended— 
(1) in subsection (a)— 
(A) by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) SERVICING BY ELIGIBLE NOT-FOR-PROFIT 
SERVICERS.— 
‘‘(A) SERVICING CONTRACTS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall contract with each eligible not-for- 
profit servicer to service loans originated 
under this part, if the servicer— 
‘‘(I) meets the standards for 
servicing Federal assets that apply to 
contracts awarded pursuant to para-
graph (1); and 
‘‘(II) has the capacity to service 
the applicable loan volume allocation 
described in subparagraph (B). 
‘‘(ii) COMPETITIVE MARKET RATE DE-
TERMINATION
FOR
FIRST
100,000
BOR-
ROWER
ACCOUNTS.—The Secretary shall 
establish a separate pricing tier for each of 
the first 100,000 borrower loan accounts 
at a competitive market rate.
137 
‘‘(iii) INELIGIBILITY.—An eligible not- 
for-profit servicer shall no longer be eligi-
ble for a contract under this paragraph 
after July 1, 2014, if— 
‘‘(I) the servicer has not been 
awarded such a contract before that 
date; or 
‘‘(II) the servicer’s contract was 
terminated, and the servicer had not 
reapplied for, and been awarded, a 
contract under this paragraph. 
‘‘(B) ALLOCATIONS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall (except as provided in clause (ii)) al-
locate to an eligible not-for-profit servicer, 
subject to the contract of such servicer de-
scribed in subparagraph (A), the servicing 
rights for the loan accounts of 100,000 
borrowers (including borrowers who bor-
rowed loans in a prior year that were serv-
iced by the servicer). 
‘‘(ii) SERVICER
ALLOCATION.—The 
Secretary may reallocate, increase, reduce, 
or terminate an eligible not-for-profit 
servicer’s allocation of servicing rights
138 
under clause (i) based on the performance 
of such servicer, on the same terms as loan 
allocations provided by contracts awarded 
pursuant to paragraph (1).’’; and 
(2) by adding at the end the following: 
‘‘(c) DEFINITION
OF ELIGIBLE NOT-FOR-PROFIT 
SERVICER.—In this section: 
‘‘(1) IN GENERAL.—The term ‘eligible not-for- 
profit servicer’ means an entity— 
‘‘(A) that is not owned or controlled in 
whole or in part by— 
‘‘(i) a for profit entity; or 
‘‘(ii) a nonprofit entity having its 
principal place of business in another 
State; and 
‘‘(B) that— 
‘‘(i) as of July 1, 2009— 
‘‘(I) meets the definition of an el-
igible not-for-profit holder under sec-
tion 435(p), except that such term 
does not include eligible lenders de-
scribed in paragraph (1)(D) of such 
section; and 
‘‘(II) was performing, or had en-
tered into a contract with a third
139 
party servicer (as such term is defined 
in section 481(c)) who was per-
forming, student loan servicing func-
tions for loans made under part B of 
this title; 
‘‘(ii) notwithstanding clause (i), as of 
July 1, 2009— 
‘‘(I) is the sole beneficial owner 
of a loan for which the special allow-
ance rate is calculated under section 
438(b)(2)(I)(vi)(II) because the loan 
is held by an eligible lender trustee 
that is an eligible not-for-profit holder 
as 
defined 
under 
section 
435(p)(1)(D); and 
‘‘(II) was performing, or had en-
tered into a contract with a third 
party servicer (as such term is defined 
in section 481(c)) who was per-
forming, student loan servicing func-
tions for loans made under part B of 
this title; or 
‘‘(iii) is an affiliated entity of an eligi-
ble not-for-profit servicer described in 
clause (i) or (ii) that—
140 
‘‘(I) directly employs, or will di-
rectly employ (on or before the date 
the entity begins servicing loans under 
a contract awarded by the Secretary 
pursuant to subsection (a)(3)(A)), the 
majority of individuals who perform 
borrower-specific student loan serv-
icing functions; and 
‘‘(II) as of July 1, 2009, was 
performing, or had entered into a con-
tract with a third party servicer (as 
such term is defined in section 
481(c)) who was performing, student 
loan servicing functions for loans 
made under part B of this title. 
‘‘(2) AFFILIATED ENTITY.—For the purposes of 
paragraph (1), the term ‘affiliated entity’— 
‘‘(A) means an entity contracted to per-
form services for an eligible not-for-profit 
servicer that— 
‘‘(i) is a nonprofit entity or is wholly 
owned by a nonprofit entity; and 
‘‘(ii) is not owned or controlled, in 
whole or in part, by— 
‘‘(I) a for-profit entity; or
141 
‘‘(II) an entity having its prin-
cipal place of business in another 
State; and 
‘‘(B) may include an affiliated entity that 
is established by an eligible not-for-profit 
servicer after the date of enactment of the 
SAFRA Act, if such affiliated entity is other-
wise described in paragraph (1)(B)(iii)(I) and 
subparagraph (A) of this paragraph.’’. 
(b) MANDATORY FUNDS.— 
(1) AMENDMENTS.—Section 458(a) (20 U.S.C. 
1087h(a)) is amended— 
(A) by redesignating paragraph (5) as 
paragraph (8); 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (4) as paragraphs (3) through (5), re-
spectively; 
(C) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) MANDATORY FUNDS FOR ELIGIBLE NOT- 
FOR-PROFIT-SERVICERS.—For fiscal years 2010 
through 2019, there shall be available to the Sec-
retary, in addition to any other amounts appro-
priated to carry out this paragraph and out of any 
money in the Treasury not otherwise appropriated,
142 
funds to be obligated for administrative costs of 
servicing 
contracts 
with 
eligible 
not-for-profit 
servicers as described in section 456.’’; and 
(D) by inserting after paragraph (5), as 
redesignated by subparagraph (B) of this para-
graph, the following: 
‘‘(6) TECHNICAL ASSISTANCE TO INSTITUTIONS 
OF HIGHER EDUCATION.— 
‘‘(A) PROVISION
OF
ASSISTANCE.—The 
Secretary shall provide institutions of higher 
education participating, or seeking to partici-
pate, in the loan programs under this part with 
technical assistance in establishing and admin-
istering such programs. 
‘‘(B) FUNDS.—There are authorized to be 
appropriated, and there are appropriated, to 
carry out this paragraph (in addition to any 
other amounts appropriated to carry out this 
paragraph and out of any money in the Treas-
ury not otherwise appropriated), $50,000,000 
for fiscal year 2010. 
‘‘(C) DEFINITION.—In this paragraph, the 
term ‘assistance’ means the provision of tech-
nical support, training, materials, technical as-
sistance, and financial assistance.