[110th Congress Public Law 109]
[From the U.S. Government Printing Office]


[DOCID: f:publ109.110]

[[Page 1027]]

              THIRD HIGHER EDUCATION EXTENSION ACT OF 2007

[[Page 121 STAT. 1028]]

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 <<NOTE: Oct. 31, 2007 -  [S. 2258]>> other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Third Higher Education 
Extension Act of 2007. 20 USC 1001 note.>> 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. <<NOTE: 20 USC 1001 note.>> 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

[[Page 121 STAT. 1029]]

                                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

[[Page 121 STAT. 1030]]

                    (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.''.

    Approved October 31, 2007.

LEGISLATIVE HISTORY--S. 2258 (H.R. 3927):
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 153 (2007):
            Oct. 30, considered and passed Senate and House.

                                  <all>