Page:United States Statutes at Large Volume 120.djvu/207

 120 STAT. 176

PUBLIC LAW 109–171—FEB. 8, 2006 of section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)). (2) MEANS-TESTED FEDERAL BENEFIT PROGRAM.—For each 3-year period, the Secretary of Education shall evaluate the impact of including the receipt of benefits by a student or parent under a means-tested Federal benefit program (as defined in section 479(d) of the Higher Education Act of 1965 (20 U.S.C. 1087ss(d)) as a factor in determining eligibility under subsections (b) and (c) of section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss(b) and (c)).

SEC. 8019. ADDITIONAL NEED ANALYSIS AMENDMENTS.

(a) TREATING ACTIVE DUTY MEMBERS OF THE ARMED FORCES AS INDEPENDENT STUDENTS.—Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by inserting before the semicolon at the end the following: ‘‘or is currently serving on active duty in the Armed Forces for other than training purposes’’. (b) DEFINITION OF ASSETS.—Section 480(f)(1) (20 U.S.C. 1087vv(f)(1)) is amended by inserting ‘‘qualified education benefits (except as provided in paragraph (3)),’’ after ‘‘tax shelters,’’. (c) TREATMENT OF FAMILY OWNERSHIP OF SMALL BUSINESSES.— Section 480(f)(2) (20 U.S.C. 1087vv(f)(2)) is amended— (1) in subparagraph (A), by striking ‘‘or’’; (2) in subparagraph (B), by striking the period at the end and inserting ‘‘; or’’; and (3) by adding at the end the following new subparagraph: ‘‘(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.’’. (d) ADDITIONAL DEFINITIONS.—Section 480(f) is further amended by adding at the end the following new paragraphs: ‘‘(3) A qualified education benefit shall not be considered an asset of a student for purposes of section 475. ‘‘(4) In determining the value of assets in a determination of need under this title (other than for subpart 4 of part A), the value of a qualified education benefit shall be— ‘‘(A) the refund value of any tuition credits or certificates purchased under a qualified education benefit; and ‘‘(B) in the case of a program in which contributions are made to an account that is established for the purpose of meeting the qualified higher education expenses of the designated beneficiary of the account, the current balance of such account. ‘‘(5) In this subsection: ‘‘(A) The term ‘qualified education benefit’ means— ‘‘(i) a qualified tuition program (as defined in section 529(b)(1)(A) of the Internal Revenue Code of 1986) or other prepaid tuition plan offered by a State; and ‘‘(ii) a Coverdell education savings account (as defined in section 530(b)(1) of the Internal Revenue Code of 1986). ‘‘(B) The term ‘qualified higher education expenses’ has the meaning given the term in section 529(e) of the Internal Revenue Code of 1986.’’. (e) DESIGNATED ASSISTANCE.—Section 480(j) (20 U.S.C. 1087vv(j)) is amended— (1) in the subsection heading, by striking ‘‘; TUITION PREPAYMENT PLANS’’;

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