1.This Act may be cited as the
Third Higher Education Extension Act
of 2007
.
2.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
.
3.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.
4.Definition of eligible not-for-profit
holderSection 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)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)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
incomeNo 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)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..
Speaker of the House of Representatives
Vice President of the United States and President of the
Senate