text: 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.''.
  
                                 Speaker of the House of Representatives.
  
                              Vice President of the United States and    
                                                 President of the Senate.
target: Third Higher Education Extension Act of 2007 - Amends the Higher Education Extension Act of 2005 to extend the programs under the Higher Education Act of 1965 through March 31, 2008.
  
  Amends the Higher Education Act of 1965 to consider trustees acting on behalf of certain governmental or tax-exempt entities as eligible nonprofit holders of Federal Family Education Loans (FFELs), regardless of whether or not such entities are eligible FFEL lenders.
feat_title: A bill 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.