II 
109TH CONGRESS 
2D SESSION 
H. R. 6138 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 28, 2006 
Received 
AN ACT 
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, 
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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 (P.L. 109–81; 20 U.S.C. 1001 note) is amended 
by striking ‘‘September 30, 2006’’ and inserting ‘‘June 
30, 2007’’. 
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 an in-
stitution of higher education, unless— 
‘‘(A) the eligible lender is serving as trust-
ee for that institution or organization as of the 
date of enactment of the Third Higher Edu-
cation Extension Act of 2006 under a contract 
that was originally entered into before the date 
of enactment of such Act and that continues in 
effect or is renewed after such date; and 
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‘‘(B) the institution or organization, and 
the eligible lender, with respect to its duties as 
trustee, each comply on and after January 1, 
2007, with the requirements of paragraph (2), 
except that— 
‘‘(i) the requirements of clauses (i), 
(ii), (vi), and (viii) of paragraph (2)(A) 
shall, subject to clause (ii) of this subpara-
graph, only apply to the institution (includ-
ing both an institution for which the lender 
serves as trustee and an institution affili-
ated with an organization for which the 
lender serves as trustee); 
‘‘(ii) in the case of an organization af-
filiated with an institution— 
‘‘(I) the requirements of clauses 
(iii) and (v) of paragraph (2)(A) shall 
apply to the organization; and 
‘‘(II) the requirements of clause 
(viii) of paragraph (2)(A) shall apply 
to the institution or the organization 
(or both), if the institution or organi-
zation receives (directly or indirectly) 
the proceeds described in such clause; 
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‘‘(iii) the requirements of clauses (iv) 
and (ix) of paragraph (2)(A) shall not 
apply to the eligible lender, institution, or 
organization; and 
‘‘(iv) the eligible lender, institution, 
and organization shall ensure that the 
loans made or held by the eligible lender as 
trustee for the institution or organization, 
as the case may be, are included in a com-
pliance audit in accordance with clause 
(vii) of paragraph (2)(A).’’. 
(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) DEFINITION 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)— 
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(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 
(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 
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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 
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. 
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(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.— 
(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; 
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(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. 
(2) METHOD
OF
DISCHARGE
OR
CANCELLA-
TION.—A loan required to be discharged or canceled 
under paragraph (1) shall be discharged or canceled 
by the method used under section 437(a), 455(a)(1), 
or 464(c)(1)(F) of the Higher Education Act of 
1965 
(20 
U.S.C. 
1087(a), 
1087e(a)(1), 
1087dd(c)(1)(F)), whichever is applicable to such 
loan. 
(c) FACILITATION
OF
CLAIMS.—The Secretary 
shall— 
(1) establish procedures for the filing of appli-
cations for discharge or cancellation under this sec-
tion by regulations that shall be prescribed and pub-
lished within 90 days after the date of enactment of 
this Act and without regard to the requirements of 
section 553 of title 5, United States Code, and sec-
tion 437 of the General Education Provisions Act 
(20 U.S.C. 1232); and 
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(2) take such actions as may be necessary to 
publicize the availability of discharge or cancellation 
of Federal student loan indebtedness under this sec-
tion. 
(d) AVAILABILITY
OF FUNDS
FOR PAYMENTS.— 
Funds available for the purposes of making payments to 
lenders in accordance with section 437(a) for the dis-
charge of indebtedness of deceased or disabled individuals 
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, except that nothing in this section shall be con-
strued to authorize any refunding of any repayment of a 
loan. 
(f) DEADLINES AND PROCEDURES.—Sections 482(c) 
and 492 of the Higher Education Act of 1965 (20 U.S.C. 
1089(c), 1098(a)) shall not apply to any regulations re-
quired by this section. 
SEC. 7. RULE OF CONSTRUCTION. 
Nothing in this Act, or in the Higher Education Ex-
tension Act of 2005 as amended by this Act, shall be con-
strued to limit or otherwise alter the authorizations of ap-
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propriations for, or the durations of, programs contained 
in the amendments made by the Higher Education Rec-
onciliation Act of 2005 (P.L. 109–171) to the provisions 
of the Higher Education Act of 1965 and the Taxpayer- 
Teacher Protection Act of 2004. 
Passed the House of Representatives September 27, 
2006. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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