[United States Statutes at Large, Volume 121, 110th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

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 1029]]
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 1030]]
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):
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CONGRESSIONAL RECORD, Vol. 153 (2007):
Oct. 30, considered and passed Senate and House.