[Congressional Record (Bound Edition), Volume 153 (2007), Part 20]
[Senate]
[Page 28699]
[From the U.S. Government Publishing Office, www.gpo.gov]




              THIRD HIGHER EDUCATION EXTENSION ACT OF 2007

  Mr. KENNEDY. Mr. President, I ask unanimous consent the Senate 
proceed to consideration of S. 2258, introduced earlier today.
  The ACTING PRESIDENT pro tempore. Without objection, the clerk will 
report the bill by title.
  The assistant legislative clerk read as follows:

       A 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.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. KENNEDY. Mr. President, I ask unanimous consent the bill be read 
three times, passed, the motion to reconsider be laid on the table, and 
any statements be printed in the Record.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The bill (S. 2258) was ordered to a third reading, was read the third 
time, and passed, 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 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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