This bill proposes an amendment to the Higher Education Act of 1965, specifically addressing the definition of a nonprofit institution of higher education. It mandates that any institution of higher education that is recognized as a 501(c)(3) organization under the Internal Revenue Code, and is exempt from taxation, will automatically be deemed a nonprofit institution for all purposes of the Higher Education Act. This change aims to provide legal clarity and consistency, ensuring that federally recognized tax-exempt educational entities are uniformly classified as nonprofit under federal higher education law. The amendment streamlines the classification process for these institutions within the Act's framework.