[Congressional Record Volume 153, Number 166 (Tuesday, October 30, 2007)]
[House]
[Pages H12193-H12195]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1445
              THIRD HIGHER EDUCATION EXTENSION ACT OF 2007

  Mr. YARMUTH. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (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.
  The Clerk read the title of the Senate bill.
  The text of the Senate bill is as follows:

                                S. 2258

       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

[[Page H12194]]

     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.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kentucky (Mr. Yarmuth) and the gentleman from California (Mr. McKeon) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Kentucky.


                             General Leave

  Mr. YARMUTH. Mr. Speaker, I request 5 legislative days during which 
Members may insert material relevant to S. 2258 into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kentucky?
  There was no objection.
  Mr. YARMUTH. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. YARMUTH asked and was given permission to revise and extend his 
remarks.)
  Mr. YARMUTH. Mr. Speaker, I rise in support of S. 2258, a bill to 
extend programs under the Higher Education Extension Act of 1965.
  In addition to extending the current programs under the Higher 
Education Act for 5 months until March 31, 2009, the bill also makes a 
necessary technical correction to the College Cost Reduction and Access 
Act with respect to nonprofit lenders. This language will ensure the 
designation of a nonprofit lender will go to those that Congress 
intended.
  During this Congress we have made significant commitments to our 
Nation's students and families by putting resources in the hands of 
those most in need. H.R. 2669, as passed and signed by the President, 
does more to help Americans pay for college than any effort since the 
GI Bill at no new cost to taxpayers.
  Specifically, the legislation provided a landmark investment of $20 
million in additional funding for Pell Grants, reductions in the 
interest rate on student loans, and the creation of programs to help 
students manage debt, as well as encourage individuals to pursue public 
service.
  Providing this critical funding is a large part of our efforts to 
increase access on affordability to higher education. The next step is 
to work on policies that further support access and affordability, such 
as campus-based aid, TRIO, GEAR-UP, teacher education and the other 
programs that make up the Higher Education Act.
  Additionally, we realize that millions of Americans are deeply 
worried about whether they can afford to send their kids to college or 
how they will be able to pay the bills while also paying off 
substantial student loan debt. Looking at how the Federal Government 
can assist in addressing the rising cost of college will also be a key 
part of the reauthorization of the Higher Education Act.
  I look forward to working with Chairman Miller and the other members 
of the committee to complete work on the Higher Education Act.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the House began this exercise last week granting a 
temporary extension of programs under the Higher Education Act. We did 
the same thing in July of this year and in June, and we did it a half 
dozen times before that. For the most part, these extensions have been 
clean, simply maintaining current law. Unfortunately, they are now 
becoming more complicated.
  Earlier this year, Congress passed a package of student aid reforms 
cloaked in the guise of a budget reconciliation bill. Instead of moving 
through regular order, the new majority took a shortcut. That shortcut 
has cost us dearly. Budget reconciliation bills have strict limitations 
designed to prevent them from being abused as a tool to enact policy, 
rather than budgetary reform.
  Judging by this year's bill, those rules are not strict enough. 
Nonetheless, the budget reconciliation process chosen by the majority 
prevented us from including fundamental reforms to the bulk of the 
Higher Education Act.
  A few weeks ago, committee Republicans introduced H.R. 3746, the 
College Access and Opportunity Act of 2007.

[[Page H12195]]

This bill is an updated version of the reauthorization bill that passed 
the House last Congress. H.R. 3746 would strengthen the Pell Grant 
program, empower parents and students through ``sunshine'' and 
transparency and college costs and accreditation, improve college 
access programs and much more. Unfortunately, the House has yet to act 
on comprehensive reforms.
  The budget bill enacted earlier this year was a missed opportunity of 
epic proportions. But worse than that, it was a classic example of how 
a secretive rushed legislative process can produce harmful unintended 
consequences.
  In rushing to the floor with the reconciliation bill, Democrats made 
mistakes. Several provisions included in the reconciliation bill need 
to be fixed so that everyone is treated fairly under the law and the 
law can be implemented as Congress intended. Additionally, the 
Department of Education has already reached out to Congress to discuss 
one of the new grant programs, which they see as near to impossible to 
implement as written.
  Had Congress had time to contemplate the impact of the provisions in 
the new programs, we may have been able to avoid all the confusion that 
now must be corrected. Today, in addition to extending these programs, 
we are being forced to fix mistakes made by the flawed budget 
reconciliation bill. Some of these mistakes can be corrected because 
the Department of Education has yet to act on them, despite the October 
1 implementation date. Other legislative errors have already been 
implemented by the Department of Education, rendering a correction 
costly, if not impossible.
  Already our hands are tied, and we are unable to fairly and fully 
correct the problems created through reconciliation. Rather than repeat 
this rushed process again, I hope that we will move forward with the 
Higher Education Act reauthorization in a bipartisan and thoughtful 
manner.
  I look forward to working with Chairmen Miller and Hinojosa and 
Ranking Member Keller, and all of my colleagues on the Education and 
Labor Committee, in completing our work in the coming months.
  In the meantime, however, I urge my colleagues to join me in 
supporting this extension.
  Mr. Speaker, I yield back the balance of my time.
  Mr. YARMUTH. Mr. Speaker, I will close by once again strongly 
encouraging my colleagues to support this important legislation, 
thanking the distinguished ranking member of the Education and Labor 
Committee.
  Mr. Speaker I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kentucky (Mr. Yarmuth) that the House suspend the rules 
and pass the Senate bill, S. 2258.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the Senate bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________