Native American Indian Education Act - Amends the Higher Education Act of 1965 to direct the Secretary of Education to pay institutions of higher education the out-of-state tuition of their Indian students if the schools are required to provide a tuition-free education, with the support of their state, to Native American Indian students in fulfillment of a condition under which the college or state received its original grant of land and facilities from the federal government.

Limits that payment each fiscal year to the institution's total out-of-state tuition for Native American Indian students in academic year 2012-2013.

Treats such payments as reimbursements to such institutions from their states.

Rescinds unobligated discretionary appropriations to offset the costs of this program.