Third Higher Education Extension Act of 2007
PL 110-109 (S.2258), enacted 10/31/2007

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, instrumen-
tality, 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] 
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121 STAT. 1029 
PUBLIC LAW 110–109—OCT. 31, 2007 
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 subdivi-
sion, authority, agency, instrumentality, or other entity 
described in subparagraph (A), (B), or (C) of paragraph 
(1), regardless of whether such State, political subdivi-
sion, authority, agency, instrumentality, or other entity 
is an eligible lender under subsection (d), if such State, 
political subdivision, authority, agency, instrumen-
tality, 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, instrumen-
tality, 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 subpara-
graph (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 
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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. 
(F) by amending subparagraph (E) to read as follows: 
‘‘(E) RULE OF CONSTRUCTION.—For purposes of sub-
paragraphs (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, instrumen-
tality, or other entity is the issuer of the debt obligation.’’. 
Approved October 31, 2007. 
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