The House unanimously approved legislation (H.R. 1777) yesterday that makes technical amendments to the Higher Education Act. The House approval came after the Senate unanimously approved the bill earlier in the day. The House and Senate's action clear the bill to be signed into law by President Obama.

"This legislation expands a valuable college aid program to help the children of our brave men and women who have given their lives in the service of our country in Iraq or Afghanistan. It also removes a main roadblock facing student borrowers struggling to move out of default on their loan and back into normal repayment," said Senator Edward M. Kennedy.

The text of the bill was not available when this article was written, but NASFAA expects to publish additional details about the bill in tomorrow's Today's News as the text becomes available.

However, Kennedy highlighted two provisions in the bill that will benefits students:

• Expand Grants to Survivors of Soldiers killed in Iraq and Afghanistan. The 2008 Higher Education Opportunity Act made children of soldiers killed in the Iraq and Afghanistan Wars since 2001, who qualify for Pell Grants, eligible for the maximum Pell award ($5,350 for the 2008-9 school year). H.R. 1777 provides a comparable grant of the same size as the maximum Pell award to survivors whose incomes do not make them are not eligible for Pell Grants. As a result, these children will be eligible for more than $20,000 in grants for college over four years.

• Authorize the Department of Education to Purchase Rehabilitated Loans. When students default on a college loan held by a private lender, guaranty agencies work with them to re-establish their loan repayments. Once the students have made nine consecutive, on-time monthly payments, they are considered to have "rehabilitated" their loan. Historically guaranty agencies have sold these rehabilitated loans in secondary markets, allowing the default to be removed from the borrower's credit report. In recent months, however, there have not been enough buyers for these loans. H.R. 1777 enables guaranty agencies to sell these rehabilitated loans to the Department of Education, so that the agencies will have the capital to work with new defaulted borrowers.

Earlier versions of the bill included the following provisions:

• Parent PLUS Loan Auction Suspension. Included a one-year suspension of the pilot auction program to sell the rights to make federal Parent PLUS Loans in a state for a two-year period. The program was scheduled to begin on July 1, 2009 and the Department planned to hold the auction on April 15. The bill postpones the auction program until July 1, 2010.

  Excluding Veteran Education Benefits. Changed the date (from July 2010 to July 2009) for financial aid offices to begin excluding veteran education benefits when determining eligibility for student loans and campus-based aid. This would ensure that benefits provided by the Post 9/11 GI Bill - that goes into effect this July - does not reduce veterans' eligibility for additional aid.

  Delaying EZ FAFSA Implementation. Delayed implementation of the simplified Free Application for Federal Student Aid (FAFSA) for one year - to 2010-11. The shortened form, known as the EZ FAFSA, would make it easier for some students to apply for federal aid.

Posted 06/24/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.