To provide higher education relief to individuals and institutions affected by Hurricanes Katrina and Rita, and for other purposes.

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.