I 
109TH CONGRESS 
2D SESSION 
H. R. 6138 
To temporarily extend the programs under the Higher Education Act of 
1965, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 21, 2006 
Mr. KELLER (for himself, Mr. MCKEON, and Mr. TIBERI) introduced the fol-
lowing bill; which was referred to the Committee on Education and the 
Workforce 
A BILL 
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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Third Higher Edu-
cation Extension Act of 2006’’. 
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 ‘‘September 30, 2006’’ and inserting 
‘‘June 30, 2007’’. 
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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.—Notwith-
standing 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 edu-
cation, or for an organization affiliated with that in-
stitution of higher education, unless— 
‘‘(A) the 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 ef-
fect or is renewed after such date; and 
‘‘(B) the institution and the eligible lender, 
with respect to its duties as trustee, each com-
ply on and after January 1, 2007, with the re-
quirements of paragraph (2), except that— 
‘‘(i) the requirements of clauses (i), 
(ii), (vi), and (viii) of paragraph (2)(A) 
shall only apply to the institution; and 
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‘‘(ii) the requirements of clauses (iv) 
and (ix) of paragraph (2)(A) shall not 
apply to either the institution or the eligi-
ble lender.’’. 
(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) DEFINITIONAL 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 applica-
tion,’’; 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 sub-
paragraph (B) and inserting a period; and 
(D) by striking subparagraph (C); and 
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(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 SEP-
TEMBER 11, 2001, ATTACKS. 
(a) DEFINITIONS.—For purposes of this section: 
(1) ELIGIBLE PUBLIC SERVANT.—The term ‘‘el-
igible 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 mem-
ber of the Armed Forces; and 
(B) died (or dies) or became (or becomes) 
permanently and totally disabled due to injuries 
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suffered in the terrorist attack on September 
11, 2001. 
(2) ELIGIBLE VICTIM.—The term ‘‘eligible vic-
tim’’ means an individual who, as determined in ac-
cordance with regulations of the Secretary, died (or 
dies) or became (or becomes) permanently and to-
tally 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, in-
sured, or guaranteed under part B, D, or E of title 
IV of the Higher Education Act of 1965. 
(b) RELIEF FROM INDEBTEDNESS.— 
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(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 serv-
ant 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 deter-
mined 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 in-
curred on behalf of an eligible victim; and 
(D) the PLUS loan indebtedness of an eli-
gible parent that was incurred on behalf of an 
eligible victim. 
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