Third Higher Education Extension Act of 2006
Latest Action
Became Public Law No: 109-292.
Official Summary
(This measure has not been amended since it was passed by the House on September 27, 2006. The summary of that version is repeated here.) Third Higher Education Extension Act of 2006 - Amends the Higher Education Extension Act of 2005 to extend the programs under the Higher Education Act of 1965 through June 30, 2007. Amends the Higher Education Act of 1965 to bar trustees of institutions of higher education (IHEs), or of institution-affiliated organizations, from serving as eligible lenders under the Federal Family Education Loan (FFEL) program, unless the trusteeship continues pursuant to a contract entered into before the enactment of this Act. Imposes specified requirements on exempt lender-trustees and the IHEs or institution-affiliated organizations they serve. Subjects exempt lender-trustee loans to compliance audits. Alters the grant program for Hispanic-serving IHEs to: (1) move the time at which at least 25% of their full-time students must be Hispanic, from the time such IHEs apply for a new grant back to the end of the preceding grant year; (2) eliminate the requirement that at least 50% of their Hispanic students be poor; and (3) eliminate the two-year waiting period between grant applications. Requires that account maintenance fees payable to guarantee agencies under the FFEL program be calculated on the basis of .10% of the original principal amount of such outstanding loans on which insurance was issued. (Currently, such fees are capped at such percentage.) Directs the Secretary of Education to discharge or cancel the federal student loan indebtedness of spouses and parents of individuals who died (or die) or who became (or become) permanently and totally disabled from injuries suffered in the terrorist attacks on September 11, 2001. States that, in the case of a consolidation loan used jointly by a victim of such attacks and his or her spouse, the discharge or cancellation shall apply only to that portion of debt incurred on behalf of the victim; except that, where the victim served as a police officer, firefighter, other safety or rescue personnel, or member of the Armed Forces, all of the debt on such loan shall be discharged or canceled.
GovScope Watchdog™
AI Government Intelligence™The Third Higher Education Extension Act of 2006 extends existing programs under the Higher Education Act of 1965 through June 30, 2007. It prohibits trustees of higher education institutions or affiliated organizations from serving as eligible lenders under the Federal Family Education Loan (FFEL) program unless grandfathered by pre-existing contracts, and imposes compliance audits on exempt lender-trustees. The bill modifies grant eligibility and application timing for Hispanic-serving institutions, adjusts account maintenance fee calculations for FFEL guarantee agencies, and mandates discharge or cancellation of federal student loan debt for spouses and parents of individuals who died or became permanently disabled due to the September 11, 2001 terrorist attacks, with specific provisions for consolidation loans involving victims and their spouses.
This law extends higher education programs, reforms lender eligibility and oversight under the FFEL program, adjusts Hispanic-serving institution grants, and provides targeted student loan debt relief related to 9/11 victims.
- Extends Higher Education Act of 1965 programs through June 30, 2007.
- Prohibits trustees of institutions or affiliated organizations from being FFEL eligible lenders unless under prior contracts, with compliance audits for exempt cases.
- Modifies Hispanic-serving institution grant requirements by changing timing, removing poverty percentage requirements, and eliminating waiting periods between applications.
- Changes FFEL guarantee agency account maintenance fees to be based on 0.10% of original principal on outstanding insured loans.
- Requires discharge or cancellation of federal student loan debt for spouses and parents of 9/11 victims or permanently disabled individuals, with special rules for consolidation loans involving first responders and military personnel.
['Institutions of higher education and institution-affiliated organizations under the FFEL program (through grandfathered contracts).', 'Hispanic-serving institutions applying for federal grants.', 'Spouses and parents of individuals who died or became permanently disabled due to the September 11, 2001 terrorist attacks.', 'FFEL program guarantee agencies receiving account maintenance fees.']
['Implementation complexity in auditing exempt lender-trustees and enforcing trustee eligibility restrictions.', 'Potential administrative burden and cost implications for guarantee agencies due to changes in fee calculations.', 'Oversight challenges in ensuring accurate and timely discharge of loans related to 9/11 victims and affected family members.', 'Policy tradeoffs in modifying grant eligibility criteria for Hispanic-serving institutions, potentially affecting funding distribution.']
This bill was passed by the House on September 27, 2006, and became Public Law No: 109-292 on September 30, 2006. It amends prior legislation, specifically the Higher Education Extension Act of 2005 and the Higher Education Act of 1965, reflecting ongoing congressional efforts to extend and refine federal higher education programs and student loan policies. The inclusion of provisions related to 9/11 victims aligns with federal responses to the terrorist attacks.
Hidden impact flags detected: 2
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['Potential increased administrative workload for the Department of Education to conduct compliance audits and manage loan discharges.', 'Changes in grant eligibility timing and criteria for Hispanic-serving institutions may influence institutional planning and student demographics.', 'Altered fee structures for guarantee agencies could impact their financial management and operations within the FFEL program.']
The bill introduces new oversight responsibilities related to trustee eligibility and loan compliance audits, which require transparent reporting and monitoring to ensure enforcement. The targeted loan discharge provisions necessitate clear criteria and documentation to prevent errors or misuse. Changes to grant eligibility and fee calculations should be tracked to assess their impact on funding distribution and program sustainability.
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