text: SECTION 1. REFERENCES.
  
      References in this Act to ``the Act'' are references to the Higher 
  Education Act of 1965 (20 U.S.C. 1001 et seq.).
  
  SEC. 2. WAIVERS AND MODIFICATIONS.
  
      Notwithstanding any other provision of law, unless enacted with 
  specific reference to this section, the Secretary is authorized to 
  waive or modify any statutory or regulatory provision applicable to the 
  student financial assistance programs under title IV of the Act, or any 
  student or institutional eligibility provisions in the Act, as the 
  Secretary deems necessary in connection with a Gulf hurricane disaster 
  to ensure that--
              (1) the calculation of expected family contribution under 
          section 474 of the Act used in the determination of need for 
          student financial assistance under title IV of the Act for any 
          affected student (and the determination of such need for his or 
          her family, if applicable), is modified to reflect any changes 
          in the financial condition of such affected student and his or 
          her family resulting from a Gulf hurricane disaster; and
              (2) institutions of higher education, systems of 
          institutions, or consortia of institutions that are located in 
          an area affected by a Gulf hurricane disaster, or that are 
          serving affected students, are eligible, notwithstanding 
          section 486(d) of the Act, to apply for participation in the 
          distance education demonstration program under section 486 of 
          the Act, except that the Secretary shall include in reports 
          under section 486(f) of the Act an identification of those 
          institutions, systems, and consortia that were granted 
          participation in the demonstration program due to a Gulf 
          hurricane disaster.
  
  SEC. 3. CANCELLATION OF INSTITUTIONAL REPAYMENT BY COLLEGES AND 
                UNIVERSITIES AFFECTED BY A GULF HURRICANE DISASTER.
  
      Notwithstanding any provision of title IV of the Act or any 
  regulation issued thereunder, the Secretary shall cancel any obligation 
  of an affected institution to return or repay any funds the institution 
  received before the date of enactment of this Act for, or on behalf of, 
  its students under subpart 1 or 3 of part A or parts B, C, D, or E of 
  title IV of the Act for any cancelled enrollment period.
  
  SEC. 4. CANCELLATION OF STUDENT LOANS FOR CANCELLED ENROLLMENT PERIODS.
  
      (a) Loan Forgiveness Authorized.--Notwithstanding any provision of 
  title IV of the Act, the Secretary shall discharge all loan amounts 
  under parts B and D of title IV of the Act, and cancel any loan made 
  under part E of such title, disbursed to, or on behalf of, an affected 
  student for a cancelled enrollment period.
      (b) Reimbursement.--The Secretary shall--
              (1) reimburse each affected institution for any amounts 
          discharged under subsection (a) with respect to a loan under 
          part E of title IV of the Act in the same manner as is required 
          by section 465(b) of the Act with respect to a loan cancelled 
          under section 465(a) of the Act; and
              (2) reimburse lenders for the purpose of discharging any 
          loan amounts disbursed to, or on behalf of, an affected student 
          under part B of title IV of the Act for a cancelled enrollment 
          period.
      (c) Limitation on Consolidation Loans.--A loan amount for a loan 
  made under section 428C of the Act or a Federal Direct Consolidation 
  Loan may be eligible for discharge under this section only to the 
  extent that such loan amount was used to repay a loan to an affected 
  student for a cancelled enrollment period.
      (d) Construction.--Nothing in this section shall be construed to 
  authorize any refunding of any repayment of a loan.
  
  SEC. 5. TEMPORARY DEFERMENT OF STUDENT LOAN REPAYMENT.
  
      An affected individual who is a borrower of a qualified student 
  loan or a qualified parent loan shall be granted a deferment, not in 
  excess of 6 months, during which periodic installments of principal 
  need not be paid, and interest--
              (1) shall accrue and be paid by the Secretary, in the case 
          of a loan made under section 428, 428B, 428C, or 428H of the 
          Act;
              (2) shall accrue and be paid by the Secretary to the 
          Perkins loan fund held by the institution of higher education 
          that made the loan, in the case of a loan made under part E of 
          title IV of the Act; and
              (3) shall not accrue, in the case of a Federal Direct Loan 
          made under part D of such title.
  
  SEC. 6. NO AFFECT ON GRANT AND LOAN LIMITS.
  
      Notwithstanding any provision of title IV of the Act or any 
  regulation issued thereunder, no grant or loan funds received by an 
  affected student under title IV of the Act for a cancelled enrollment 
  period shall be counted against such affected student's annual or 
  aggregate grant or loan limits for the receipt of grants or loans under 
  that title.
  
  SEC. 7. TEACHER LOAN RELIEF.
  
      The Secretary may waive the requirement of sections 428J(b)(1) and 
  460(b)(1)(A) of the Act that the 5 years of qualifying service be 
  consecutive academic years for any teacher whose employment was 
  interrupted if--
              (1) the teacher was employed in qualifying service, at the 
          time of a Gulf hurricane disaster, in a school located in an 
          area affected by a Gulf hurricane disaster; and
              (2) the teacher resumes qualifying service not later than 
          the beginning of academic year 2006-2007 in that school or any 
          other school in which employment is qualifying service under 
          such section.
  
  SEC. 8. EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR 
                PELL GRANTS.
  
      (a) In General.--The Secretary shall make special efforts, in 
  conjunction with State efforts, to notify affected students and if 
  applicable, their parents, who qualify for means-tested Federal benefit 
  programs, of their potential eligibility for a maximum Pell Grant, and 
  shall disseminate such informational materials as the Secretary deems 
  appropriate.
      (b) Means-Tested Federal Benefit Program.--For the purpose of this 
  section, the term ``means-tested Federal benefit program'' means a 
  mandatory spending program of the Federal Government, other than a 
  program under the Act, in which eligibility for the program's benefits, 
  or the amount of such benefits, or both, are determined on the basis of 
  income or resources of the individual or family seeking the benefit, 
  and may include such programs as the supplemental security income 
  program under title XVI of the Social Security Act, the food stamp 
  program under the Food Stamp Act of 1977, the free and reduced price 
  school lunch program established under the Richard B. Russell National 
  School Lunch Act, the temporary assistance to needy families program 
  established under part A of title IV of the Social Security Act, and 
  the women, infants, and children program established under section 17 
  of the Child Nutrition Act of 1966, and other programs identified by 
  the Secretary.
  
  SEC. 9. PROCEDURES.
  
      (a) Deadlines and Procedures.--Sections 482(c) and 492 of the Act 
  shall not apply to any waivers, modifications, or actions initiated by 
  the Secretary under this Act.
      (b) Case-by-case Basis.--The Secretary is not required to exercise 
  any waiver or modification authority under this Act on a case-by-case 
  basis.
  
  SEC. 10. TERMINATION OF AUTHORITY.
  
      The authority of the Secretary to issue waivers or modifications 
  under this Act shall expire at the conclusion of the 2005-2006 academic 
  year, but the expiration of such authority shall not affect the 
  continuing validity of any such waivers or modifications after such 
  academic year.
  
  SEC. 11. DEFINITIONS.
  
      For purposes of this Act, except as otherwise specifically provided 
  in this Act, the following terms have the following meanings:
              (1) Affected individual.--The term ``affected individual'' 
          means an individual who has applied for or received student 
          financial assistance under title IV of the Higher Education Act 
          of 1965, and--
                      (A) who is an affected student; or
                      (B) whose primary place of employment or residency 
                  was, as of August 29, 2005, in an area affected by a 
                  Gulf hurricane disaster.
              (2) Affected institution.--The term ``affected 
          institution'' means an institution of higher education that--
                      (A) is located in an area affected by a Gulf 
                  hurricane disaster; and
                      (B) has temporarily ceased operations as a 
                  consequence of a Gulf hurricane disaster, as determined 
                  by the Secretary.
              (3) Affected state.--The term ``affected State'' means the 
          State of Alabama, Florida, Louisiana, Mississippi, or Texas.
              (4) Affected student.--The term ``affected student'' means 
          an individual who has applied for or received student financial 
          assistance under title IV of the Higher Education Act of 1965, 
          and who--
                      (A) was enrolled or accepted for enrollment, as of 
                  August 29, 2005, at an institution of higher education 
                  in an area affected by a Gulf hurricane disaster;
                      (B) was a dependent student enrolled or accepted 
                  for enrollment at an institution of higher education 
                  that is not in an area affected by a Gulf hurricane 
                  disaster, but whose parents resided or were employed, 
                  as of August 29, 2005, in an area affected by a Gulf 
                  hurricane disaster; or
                      (C) was enrolled or accepted for enrollment at an 
                  institution of higher education, as of August 29, 2005, 
                  and whose attendance was interrupted because of a Gulf 
                  hurricane disaster.
              (5) Area affected by a gulf hurricane disaster.--The term 
          ``area affected by a Gulf hurricane disaster'' means a county 
          or parish, in an affected State, that has been designated by 
          the Federal Emergency Management Agency for disaster assistance 
          for individuals and households as a result of Hurricane Katrina 
          or Hurricane Rita.
              (6) Cancelled enrollment period.--The term ``cancelled 
          enrollment period'' means any period of enrollment at an 
          affected institution during the academic year 2005.
              (7) Gulf hurricane disaster.--The term ``Gulf hurricane 
          disaster'' means a major disaster that the President declared 
          to exist, in accordance with section 401 of the Robert T. 
          Stafford Disaster Relief and Emergency Assistance Act, and that 
          was caused by Hurricane Katrina or Hurricane Rita.
              (8) Institution of higher education.--The term 
          ``institution of higher education'' has the meaning given such 
          term in section 102 of the Higher Education Act of 1965, except 
          that the term does not include institutions under subsection 
          (a)(1)(C) of that section.
              (9) Qualified student loan.--The term ``qualified student 
          loan'' means any loan made, insured, or guaranteed under part 
          B, D, or E of title IV of the Higher Education Act of 1965, 
          other than a loan under section 428B of such title or a Federal 
          Direct Plus loan.
              (10) Qualified parent loan.--The term ``qualified parent 
          loan'' means a loan made under section 428B of title IV of the 
          Higher Education Act of 1965 or a Federal Direct Plus loan.
              (11) Secretary.--The term ``Secretary'' means the Secretary 
          of Education.
target: Authorizes the Secretary of Education to waive or modify requirements under the Higher Education Act of 1965 for student financial assistance programs, or other student or institutional eligibility provisions, as necessary to reflect changes in the financial condition of affected students and their families resulting from Hurricane Katrina or Hurricane Rita (a Gulf hurricane disaster).
  
  Cancels: (1) certain institutional repayments by institutions of higher education affected by a Gulf hurricane disaster; and (2) student loans for affected students during certain cancelled enrollment periods. Provides for: (1) temporary deferment of student loan repayment by affected individuals; and (2) waiver of consecutive service requirements for affected individuals under a program of student loan forgiveness for school teachers.
  
  Directs the Secretary to make special efforts to notify affected students who qualify for a means-tested federal benefit program of their potential eligibility for a maximum Pell Grant and to disseminate informational materials regarding such eligibility.
feat_title: To provide higher education relief to individuals and institutions affected by Hurricanes Katrina and Rita, and for other purposes.