201 
shall be available for making payments under section 
437(a) to lenders of loans as required by this section. 
(e) APPLICABLE TO OUTSTANDING DEBT.—The pro-
visions of this section shall be applied to discharge or can-
cel only Federal student loans (including consolidation 
loans) on which amounts were owed on September 11, 
2001. Nothing in this section shall be construed to author-
ize any refunding of any repayment of a loan. 
SEC. 2133. INDEPENDENT EVALUATION OF DISTANCE EDU-
CATION PROGRAMS. 
(a) INDEPENDENT EVALUATION.—The Secretary of 
Education shall enter into an agreement with the National 
Academy of Sciences to conduct a scientifically correct and 
statistically valid evaluation of the quality of distance edu-
cation programs, as compared to campus-based education 
programs, at institutions of higher education. Such eval-
uation shall include— 
(1) identification of the elements by which the 
quality of distance education, as compared to cam-
pus-based education, can be assessed, including ele-
ments such as subject matter, interactivity, and stu-
dent outcomes; 
(2) identification of distance and campus-based 
education program success, with respect to student
202 
achievement, in relation to the mission of the insti-
tution of higher education; and 
(3) identification of the types of students (in-
cluding classification of types of students based on 
student age) who most benefit from distance edu-
cation programs, the types of students who most 
benefit from campus-based education programs, and 
the types of students who do not benefit from dis-
tance education programs, by assessing elements in-
cluding access to higher education, job placement 
rates, undergraduate graduation rates, and graduate 
and professional degree attainment rates. 
(b) SCOPE.—The National Academy of Sciences shall 
select for participation in the evaluation under subsection 
(a) a diverse group of institutions of higher education with 
respect to size, mission, and geographic distribution. 
(c) INTERIM AND FINAL REPORTS.—The agreement 
under subsection (a) shall require that the National Acad-
emy of Sciences submit to the Secretary of Education, the 
Committee on Health, Education, Labor and Pensions of 
the Senate, and the Committee on Education and the 
Workforce of the House of Representatives— 
(1) an interim report regarding the evaluation 
under subsection (a) not later than December 31, 
2007; and
203 
(2) a final report regarding such evaluation not 
later than December 31, 2009. 
SEC. 2134. DISBURSEMENT OF STUDENT LOANS. 
Section 422(d) of the Higher Education Amendments 
of 1998 (Public Law 105–244; 112 Stat. 1696) is amend-
ed by adding at the end the following new sentence: ‘‘Such 
amendments shall also be effective on and after July 1, 
2006.’’. 
PART 2—HIGHER EDUCATION RELIEF 
SEC. 2141. REFERENCES. 
References in this part to ‘‘the Act’’ are references 
to the Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.). 
SEC. 2142. WAIVERS AND MODIFICATIONS. 
Notwithstanding any other provision of law, unless 
enacted with specific reference to this section, the Sec-
retary of Education is authorized to waive or modify any 
statutory or regulatory provision applicable to the student 
financial assistance programs under title IV of the Act, 
or any student or institutional eligibility provisions in the 
Act, as the Secretary of Education deems necessary in 
connection with a Gulf hurricane disaster to ensure that— 
(1) the calculation of expected family contribu-
tion under section 474 of the Act used in the deter-
mination of need for student financial assistance
204 
under title IV of the Act for any affected student 
(and the determination of such need for his or her 
family, if applicable), is modified to reflect any 
changes in the financial condition of such affected 
student and his or her family resulting from a Gulf 
hurricane disaster; and 
(2) institutions of higher education, systems of 
institutions, or consortia of institutions that are lo-
cated in an area affected by a Gulf hurricane dis-
aster, or that are serving affected students, are eligi-
ble, notwithstanding section 486(d) of the Act, to 
apply for participation in the distance education 
demonstration program under section 486 of the 
Act, except that the Secretary of Education shall in-
clude in reports under section 486(f) of the Act an 
identification of those institutions, systems, and con-
sortia that were granted participation in the dem-
onstration program due to a Gulf hurricane disaster. 
SEC. 2143. CANCELLATION OF INSTITUTIONAL REPAYMENT 
BY COLLEGES AND UNIVERSITIES AFFECTED 
BY A GULF HURRICANE DISASTER. 
Notwithstanding any provision of title IV of the Act 
or any regulation issued thereunder, the Secretary of Edu-
cation shall cancel any obligation of an affected institution 
to return or repay any funds the institution received be-
205 
fore the date of enactment of this Act for, or on behalf 
of, its students under subpart 1 or 3 of part A or parts 
B, C, D, or E of title IV of the Act for any cancelled 
enrollment period. 
SEC. 2144. CANCELLATION OF STUDENT LOANS FOR CAN-
CELLED ENROLLMENT PERIODS. 
(a) LOAN FORGIVENESS AUTHORIZED.—Notwith-
standing any provision of title IV of the Act, the Secretary 
shall discharge all loan amounts under parts B and D of 
title IV of the Act, and cancel any loan made under part 
E of such title, disbursed to, or on behalf of, an affected 
student for a cancelled enrollment period. 
(b) REIMBURSEMENT.—The Secretary of Education 
shall— 
(1) reimburse each affected institution for any 
amounts discharged under subsection (a) with re-
spect to a loan under part E of title IV of the Act 
in the same manner as is required by section 465(b) 
of the Act with respect to a loan cancelled under sec-
tion 465(a) of the Act; and 
(2) reimburse lenders for the purpose of dis-
charging any loan amounts disbursed to, or on be-
half of, an affected student under part B of title IV 
of the Act for a cancelled enrollment period.
206 
(c) LIMITATION ON CONSOLIDATION LOANS.—A loan 
amount for a loan made under section 428C of the Act 
or a Federal Direct Consolidation Loan may be eligible 
for discharge under this section only to the extent that 
such loan amount was used to repay a loan to an affected 
student for a cancelled enrollment period. 
(d) CONSTRUCTION.—Nothing in this section shall be 
construed to authorize any refunding of any repayment 
of a loan. 
SEC. 2145. TEMPORARY DEFERMENT OF STUDENT LOAN 
REPAYMENT. 
An affected individual who is a borrower of a quali-
fied student loan or a qualified parent loan shall be grant-
ed a deferment, not in excess of 6 months, during which 
periodic installments of principal need not be paid, and 
interest— 
(1) shall accrue and be paid by the Secretary, 
in the case of a loan made under section 428, 428B, 
428C, or 428H of the Act; 
(2) shall accrue and be paid by the Secretary 
to the Perkins loan fund held by the institution of 
higher education that made the loan, in the case of 
a loan made under part E of title IV of the Act; and 
(3) shall not accrue, in the case of a Federal 
Direct Loan made under part D of such title.
207 
SEC. 2146. NO AFFECT ON GRANT AND LOAN LIMITS. 
Notwithstanding any provision of title IV of the Act 
or any regulation issued thereunder, no grant or loan 
funds received by an affected student under title IV of 
the Act for a cancelled enrollment period shall be counted 
against such affected student’s annual or aggregate grant 
or loan limits for the receipt of grants or loans under that 
title. 
SEC. 2147. TEACHER LOAN RELIEF. 
The Secretary of Education may waive the require-
ment of sections 428J(b)(1) and 460(b)(1)(A) of the 
Higher Education Act of 1965 that the 5 years of quali-
fying service be consecutive academic years for any teach-
er whose employment was interrupted if— 
(1) the teacher was employed in qualifying serv-
ice, at the time of a Gulf hurricane disaster, in a 
school located in an area affected by a Gulf hurri-
cane disaster; and 
(2) the teacher resumes qualifying service not 
later than the beginning of academic year 2006– 
2007 in that school or any other school in which em-
ployment is qualifying service under such section. 
SEC. 2148. EXPANDING INFORMATION DISSEMINATION RE-
GARDING ELIGIBILITY FOR PELL GRANTS. 
(a) IN GENERAL.—The Secretary of Education shall 
make special efforts, in conjunction with State efforts, to
208 
notify affected students and if applicable, their parents, 
who qualify for means-tested Federal benefit programs, of 
their potential eligibility for a maximum Pell Grant, and 
shall disseminate such informational materials as the Sec-
retary of Education deems appropriate. 
(b) 
MEANS-TESTED
FEDERAL
BENEFIT
PRO-
GRAM.—For the purpose of this section, the term ‘‘means- 
tested Federal benefit program’’ means a mandatory 
spending program of the Federal Government, other than 
a program under the Act, in which eligibility for the pro-
gram’s benefits, or the amount of such benefits, or both, 
are determined on the basis of income or resources of the 
individual or family seeking the benefit, and may include 
such programs as the supplemental security income pro-
gram under title XVI of the Social Security Act, the food 
stamp program under the Food Stamp Act of 1977, the 
free and reduced price school lunch program established 
under the Richard B. Russell National School Lunch Act, 
the temporary assistance to needy families program estab-
lished under part A of title IV of the Social Security Act, 
and the women, infants, and children program established 
under section 17 of the Child Nutrition Act of 1966, and 
other programs identified by the Secretary of Education.
209 
SEC. 2149. PROCEDURES. 
(a) DEADLINES AND PROCEDURES.—Sections 482(c) 
and 492 of the Act (20 U.S.C. 1089(c), 1098a) shall not 
apply to any waivers, modifications, or actions initiated 
by the Secretary of Education under this part. 
(b) CASE-BY-CASE BASIS.—The Secretary of Edu-
cation is not required to exercise any waiver or modifica-
tion authority under this part on a case-by-case basis. 
SEC. 2150. TERMINATION OF AUTHORITY. 
The authority of the Secretary of Education to issue 
waivers or modifications under this part shall expire at 
the conclusion of the 2005–2006 academic year, but the 
expiration of such authority shall not affect the continuing 
validity of any such waivers or modifications after such 
academic year. 
SEC. 2151. DEFINITIONS. 
For the purposes of this part, the following terms 
have the following meanings: 
(1) AFFECTED
INDIVIDUAL.—The term ‘‘af-
fected individual’’ means an individual who has ap-
plied for or received student financial assistance 
under title IV of the Higher Education Act of 1965, 
and— 
(A) who is an affected student; or
210 
(B) whose primary place of employment or 
residency was, as of August 29, 2005, in an 
area affected by a Gulf hurricane disaster. 
(2) AFFECTED
INSTITUTION.—The term ‘‘af-
fected institution’’ means an institution of higher 
education that— 
(A) is located in an area affected by a Gulf 
hurricane disaster; and 
(B) has temporarily ceased operations as a 
consequence of a Gulf hurricane disaster, as de-
termined by the Secretary of Education. 
(3) AFFECTED
STATE.—The term ‘‘affected 
State’’ means the State of Alabama, Florida, Lou-
isiana, Mississippi, or Texas. 
(4) AFFECTED STUDENT.—The term ‘‘affected 
student’’ means an individual who has applied for or 
received student financial assistance under title IV 
of the Higher Education Act of 1965, and who— 
(A) was enrolled or accepted for enroll-
ment, as of August 29, 2005, at an institution 
of higher education in an area affected by a 
Gulf hurricane disaster; 
(B) was a dependent student enrolled or 
accepted for enrollment at an institution of 
higher education that is not in an area affected
211 
by a Gulf hurricane disaster, but whose parents 
resided or were employed, as of August 29, 
2005, in an area affected by a Gulf hurricane 
disaster; or 
(C) was enrolled or accepted for enrollment 
at an institution of higher education, as of Au-
gust 29, 2005, and whose attendance was inter-
rupted because of a Gulf hurricane disaster. 
(5) AREA AFFECTED BY A GULF HURRICANE 
DISASTER.—The term ‘‘area affected by a Gulf hur-
ricane disaster’’ means a county or parish, in an af-
fected State, that has been designated by the Fed-
eral Emergency Management Agency for disaster as-
sistance for individuals and households as a result of 
Hurricane Katrina or Hurricane Rita. 
(6) CANCELLED
ENROLLMENT
PERIOD.—The 
term ‘‘cancelled enrollment period’’ means any pe-
riod of enrollment at an affected institution during 
the academic year 2005. 
(7) GULF
HURRICANE
DISASTER.—The term 
‘‘Gulf hurricane disaster’’ means a major disaster 
that the President declared to exist, in accordance 
with section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, and that was 
caused by Hurricane Katrina or Hurricane Rita.
212 
(8) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given such term in section 102 of the High-
er Education Act of 1965, except that the term does 
not include institutions under subsection (a)(1)(C) 
of that section. 
(9) QUALIFIED
STUDENT
LOAN.—The term 
‘‘qualified 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, other than 
a loan under section 428B of such title or a Federal 
Direct Plus loan. 
(10) QUALIFIED
PARENT
LOAN.—The term 
‘‘qualified parent loan’’ means a loan made under 
section 428B of title IV of the Higher Education 
Act of 1965 or a Federal Direct Plus loan. 
Subtitle C—Pensions 
SEC. 2201. INCREASES IN PBGC PREMIUMS. 
(a) FLAT-RATE PREMIUMS.—Clause (i) of section 
4006(a)(3)(A) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1306(a)(3)(A)) is amended 
by striking ‘‘$19’’ and inserting ‘‘$30’’. 
(b) ADJUSTMENT FOR INFLATION.—Paragraph (3) 
of section 4006(a) of such Act (29 U.S.C. 1306(a)) is
213 
amended by adding at the end the following new subpara-
graph: 
‘‘(F) For each plan year beginning after 2006, there 
shall be substituted for the $30 dollar amount in subpara-
graph (A)(i) the amount equal to the product derived by 
multiplying the premium rate, as in effect under this para-
graph immediately prior to such plan year for basic bene-
fits guaranteed by the corporation under section 4022 for 
single-employer plans, by the ratio of— 
‘‘(i) the national average wage index (as defined 
in section 209(k)(1) of the Social Security Act) for 
the first of the 2 calendar years preceding the cal-
endar year in which such plan year begins, to 
‘‘(ii) the national average wage index (as so de-
fined) for the first of the 3 calendar years preceding 
the calendar year in which the plan year begins, 
with such product, if not a multiple of $1, being rounded 
to the next higher multiple of $1 where such product is 
a multiple of $0.50 but not of $1, and to the nearest mul-
tiple of $1 in any other case.’’. 
(c) ADDITIONAL DISCRETIONARY INCREASE.—Para-
graph (3) of section 4006(a) of such Act (as amended by 
subsection (b) of this section) is further amended by add-
ing at the end the following new subparagraph:
214 
‘‘(G)(i) The corporation may increase under this sub-
paragraph, effective for plan years commencing with or 
during any calendar year after 2006, the premium rate 
otherwise in effect under this section for basic benefits 
guaranteed by it under section 4022 for single-employer 
plans if the corporation determines that such increase is 
necessary to achieve actuarial soundness in the plan termi-
nation insurance program under this title. 
‘‘(ii) The amount of any premium rate described in 
clause (i), as increased under this subparagraph for plan 
years commencing with or during any calendar year, may 
not exceed by more than 20 percent the amount of the 
premium rate, in effect under this paragraph for plan 
years commencing with or during such calendar year for 
basic benefits guaranteed by the corporation under section 
4022 for single-employer plans, as determined for plan 
years commencing with or during such calendar year with-
out regard to this subparagraph. 
‘‘(iii) The preceding provisions of this subparagraph 
shall apply in connection with plan years commencing with 
or during any calendar year only if— 
‘‘(I) the corporation transmits to each House of 
the Congress and to the Comptroller General its pro-
posal for the increase in the premium rate for plan 
years commencing with or during such calendar
215 
year, subject to Congressional review under chapter 
8 of title 5 of the United States Code (relating to 
Congressional review of agency rulemaking) not later 
than 120 calendar days after the beginning of the 
preceding calendar year, and 
‘‘(II) a joint resolution disapproving such in-
crease has not been enacted as provided in section 
802 of such title, within the 60-day period described 
in section 802(a) of such title. 
The proposal transmitted by the corporation shall include 
a description of the methodologies and assumptions used 
in formulating its proposal. At the time of the transmittal 
of any such proposal to each House of the Congress pursu-
ant to subclause (I), the corporation shall transmit a copy 
of such proposal to the Committee on Education and the 
Workforce and the Committee on Ways and Means of the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions and the Committee on Fi-
nance of the Senate. Any such proposal shall, for purposes 
of chapter 8 of such title 5, be treated as a rule which 
is a major rule.’’. 
(d) PREMIUM RATE FOR CERTAIN TERMINATED SIN-
GLE-EMPLOYER PLANS.—Subsection (a) of section 4006 
of such Act (29 U.S.C. 1306) is amended by adding at 
the end the following:
216 
‘‘(7) PREMIUM RATE FOR CERTAIN TERMINATED 
SINGLE-EMPLOYER PLANS.— 
‘‘(A) IN GENERAL.—If there is a termination of 
a single-employer plan under clause (ii) or (iii) of 
section 4041(c)(2)(B) or section 4042, there shall be 
payable to the corporation, with respect to each ap-
plicable 12-month period, a premium at a rate equal 
to $1,250 multiplied by the number of individuals 
who were participants in the plan immediately before 
the termination date. Such premium shall be in ad-
dition to any other premium under this section. 
‘‘(B) SPECIAL RULE FOR PLANS TERMINATED 
IN BANKRUPTCY REORGANIZATION.—If the plan is 
terminated under 4041(c)(2)(B)(ii) or under section 
4042 and, as of the termination date, a person who 
is (as of such date) a contributing sponsor of the 
plan or a member of such sponsor’s controlled group 
has filed or has had filed against such person a peti-
tion seeking reorganization in a case under title 11 
of the United States Code, or under any similar law 
of a State or a political subdivision of a State (or 
a case described in section 4041(c)(2)(B)(i) filed by 
or against such person has been converted, as of 
such date, to such a case in which reorganization is 
sought), subparagraph (A) shall not apply to such
217 
plan until the date of the discharge of such person 
in such case. 
‘‘(C) APPLICABLE
12-MONTH
PERIOD.—For 
purposes of subparagraph (A)— 
‘‘(i) IN
GENERAL.—The term ‘applicable 
12-month period’ means— 
‘‘(I) the 12-month period beginning 
with the first month following the month 
in which the termination date occurs, and 
‘‘(II) each of the first two 12-month 
periods immediately following the period 
described in subclause (I). 
‘‘(ii) PLANS TERMINATED IN BANKRUPTCY 
REORGANIZATION.—In any case in which the 
requirements of subparagraph (B) are met in 
connection with the termination of the plan 
with respect to 1 or more persons described in 
such subparagraph, the 12-month period de-
scribed in clause (i)(I) shall be the 12-month 
period beginning with the first month following 
the month which includes the earliest date as of 
which each such person is discharged in the 
case described in such clause in connection with 
such person. 
‘‘(D) COORDINATION WITH SECTION 4007.—
218 
‘‘(i) Notwithstanding section 4007— 
‘‘(I) premiums under this paragraph 
shall be due within 30 days after the be-
ginning of any applicable 12-month period, 
and 
‘‘(II) the designated payor shall be the 
person who is the contributing sponsor as 
of immediately before the termination date. 
‘‘(ii) The fifth sentence of section 4007(a) 
shall not apply in connection with premiums de-
termined under this paragraph.’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 4006(a)(2) of such Act (29 U.S.C. 
1306(a)(2)) is amended, in the matter following sub-
paragraph (E), by inserting ‘‘paragraph (3)(G) of 
this subsection or’’ after ‘‘Except as provided in’’. 
(2) Section 4006(b)(1) of such Act (29 U.S.C. 
1306(b)(1)) is amended by inserting ‘‘or a proposal 
for a premium rate increase under subsection 
(a)(3)(G)’’ after ‘‘or (E)’’. 
(f) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to plan years beginning after 
December 31, 2005.