Amends the Higher Education Opportunity Act to make the date of such Act's enactment, August 14, 2008, the effective date of its revisions to the general definition of institutions of higher education (IHEs). Makes prerequisites for foreign nursing school participation in the Act's Federal Family Education Loan (FFEL) program inapplicable, until July 1, 2012, to foreign nursing schools that were participating in the FFEL program on August 13, 2008.

Excludes Howard University, which receives assistance under other specified federal law, from eligibility for capacity-building grants to Predominantly Black Institutions under title III of the Act.

Increases amounts authorized and appropriated in FY2013 and FY2015 for increases in the maximum Pell Grant award. Directs the Secretary of Education to award scholarships, to be known as Iraq and Afghanistan Service Grants, to individuals whose parent or guardian died as a result of performing military service for the U.S. Armed Forces in Iraq or Afghanistan after September 11, 2001. Makes such scholarships equal to the maximum Pell Grant award.

Revises the FFEL default reduction program to allow guaranty agencies to assign rehabilitated loans to the Secretary of Education, until October 2011, if: (1) they have not been able to sell the loans to eligible lenders; and (2) the Secretary determines that market conditions unduly limit their ability to do so. Requires the holder of a rehabilitated loan to request the consumer reporting agency to which the default of the loan was reported to remove the record of default from a borrower's credit history. Prohibits eligible FFEL lenders from offering inducements to any individuals or entities in order to secure FFEL applicants. (Currently, IHEs and their employees may not be offered such inducements.)

Authorizes the Secretary to purchase, or enter into forward commitments to purchase, rehabilitated FFELs that eligible lenders purchased under the FFEL default reduction program from October 2003 through June 2010, provided such purchase does not result in any net cost to the federal government. Conditions the purchase of such loans on the agreement of lenders to use the funds from such purchases to originate new federal loans to students or to purchase rehabilitated loans under the default reduction program.

States that, beginning with the 2009-2010 school year, the expected family contribution, used in determining a student's eligibility for federal student aid, shall be zero for students who are eligible for Pell grants and whose parent or guardian was killed while performing military service in Iraq or Afghanistan after September 11, 2001. Updates the list of programs providing veterans' education benefits that are to be excluded from students' income in determining their eligibility for student aid under title IV. Advances the date, from July 2010 to July 2009, by which veterans' education benefits not received under title IV must be excluded from consideration as available financial assistance in title IV need analyses.

Delays the implementation of the EZ FAFSA (Free Application for Federal Student Aid), a simplified format for use in applying for federal student aid, until the 2010-2011 school year. Requires the Secretary to determine that an IHE's participation as an experimental site under the Quality Assurance program (which allows certain IHEs to implement their own comprehensive student aid management systems) is a success if such participation has reduced the IHEs administrative burdens and benefited its students, without creating costs for the taxpayer. Gives existing sites that have not yet been deemed successful until June 30, 2010, to reach that goal.

Makes certain rulemaking requirements and the master calendar of actions the Secretary must take regarding student aid inapplicable to amendments made by this title or regulations promulgated under such amendments.

Requires IHEs offering comprehensive transition and postsecondary programs for students with intellectual disabilities to integrate such students socially and academically with non-disabled students, to the maximum extent possible.

Makes technical amendments to the Higher Education Amendments of 1998 and the Education of the Deaf Act of 1986.