[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2258 Considered and Passed Senate (CPS)]







110th CONGRESS
  1st Session
                                S. 2258

 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 30, 2007

   Mr. Kennedy introduced the following bill; which was read twice, 
              considered, read the third time, and passed

_______________________________________________________________________

                                 A BILL


 
 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, 
                                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 such 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 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), 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.'';
                    (D) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Sole ownership of loans and income.--No 
                State, political subdivision, authority, agency, 
                instrumentality, 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 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 
                        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
                    (F) by amending subparagraph (E) to read as 
                follows:
                    ``(E) Rule of construction.--For purposes of 
                subparagraphs (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, 
                instrumentality, or other entity is the issuer of the 
                debt obligation.''.
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