[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2667 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2667
To amend the Higher Education Act of 1965 to make it easier to apply
for Federal student aid, to make that aid predictable, to amend the
Federal Pell Grant program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 22, 2019
Mr. Alexander (for himself and Mr. Jones) introduced the following
bill; which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to make it easier to apply
for Federal student aid, to make that aid predictable, to amend the
Federal Pell Grant program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``FAFSA Simplification Act of 2019''.
SEC. 2. MAKING IT EASIER TO APPLY FOR FEDERAL AID AND MAKING THAT AID
PREDICTABLE.
(a) Need Analysis.--
(1) In general.--Section 471 of the Higher Education Act of
1965 (20 U.S.C. 1087kk) is amended to read as follows:
``SEC. 471. AMOUNT OF NEED.
``(a) In General.--Except as otherwise provided therein, beginning
with award year 2021-2022, the amount of need of any student for
financial assistance under this title (except subpart 1 or 2 of part A)
is equal to--
``(1) the cost of attendance of such student, minus
``(2) the student aid index (as defined in section 473) for
such student, minus
``(3) other financial assistance not received under this
title (as defined in section 480(j)).
``(b) Effective Date of Changes.--The amendments made to this title
under the FAFSA Simplification Act of 2019 shall take effect beginning
with award year 2021-2022. The amounts provided under such amendments
for award year 2020-2021 shall be used solely as a base to determine
adjustments for subsequent award years.''.
(2) Maximum aid under part d.--Section 451 of the Higher
Education Act of 1965 (20 U.S.C. 1087a) is amended by adding at
the end the following:
``(c) Maximum Aid.--The maximum dollar amount of financial
assistance provided under this part to a student shall not exceed the
cost of attendance for such student.''.
(3) Guidance to states.--The Secretary of Education shall
issue guidance for States on interpretation and implementation
of the terminology and formula adjustments made under the
amendments made by this Act, including the student aid index,
formerly known as the expected family contribution, and the
need analysis formulas.
(b) Student Aid Index.--Section 473 of the Higher Education Act of
1965 (20 U.S.C. 1087mm) is amended to read as follows:
``SEC. 473. STUDENT AID INDEX.
``(a) In General.--For the purpose of this title, other than
subpart 1 or 2 of part A, the term `student aid index' means, with
respect to a student, an index that reflects an evaluation of a
student's approximate financial resources to contribute toward the
student's postsecondary education for the academic year, as determined
in accordance with this part.
``(b) Special Rule for Students Eligible for the Total Maximum Pell
Grant.--The Secretary shall consider an applicant to automatically have
a student aid index equal to zero if the applicant is eligible for the
total maximum Federal Pell Grant under subpart 1 of part A, except if
the applicant has a calculated student aid index of less than zero the
Secretary shall consider the negative number as the student aid index
for the applicant.
``(c) Special Rule for Nonfilers.--For an applicant (or, as
applicable, an applicant and spouse, or an applicant's parents) not
required filed a Federal tax return for the applicable tax year, the
Secretary shall for the purposes of this title consider the student aid
index as equal to -$1,500 for the applicant.
``(d) Special Rule for Recipients of Means-Tested Benefits.--For an
applicant (including the student, the student's parent, or the
student's spouse, as applicable) who at any time during the previous
24-month period was a recipient of a means-tested Federal benefit
program, the Secretary shall consider an applicant to automatically
have a student aid index equal to zero, except if the applicant has a
calculated student aid index of less than zero the Secretary shall
consider the negative number as the student aid index for the
applicant.
``(e) Means-Tested Federal Benefit Program.--In this section, the
term `means-tested Federal benefit program' means any of the following:
``(1) The supplemental security income program under title
XVI of the Social Security Act (42 U.S.C. 1381 et seq.).
``(2) The supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
``(3) The program of block grants for States for temporary
assistance for needy families established under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.).
``(4) The special supplemental nutrition program for women,
infants, and children established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786).
``(5) The Medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).''.
(c) Determination of Student Aid Index.--Section 474 of the Higher
Education Act of 1965 (20 U.S.C. 1087nn) is amended to read as follows:
``SEC. 474. DETERMINATION OF STUDENT AID INDEX.
``The student aid index--
``(1) for a dependent student shall be determined in
accordance with section 475;
``(2) for a single independent student or a married
independent student without dependents (other than a spouse)
shall be determined in accordance with section 476; and
``(3) for an independent student with dependents other than
a spouse shall be determined in accordance with section 477.''.
(d) Student Aid Index for Dependent Students.--Section 475 of the
Higher Education Act of 1965 (20 U.S.C. 1087oo) is amended to read as
follows:
``SEC. 475. STUDENT AID INDEX FOR DEPENDENT STUDENTS.
``(a) Computation of Student Aid Index.--
``(1) In general.--For each dependent student, the student
aid index is equal to (except as provided in paragraph (2)) the
sum of--
``(A) the assessment of the parents' adjusted
available income (determined in accordance with
subsection (b));
``(B) the assessment of the student's available
income (determined in accordance with subsection (g));
and
``(C) the student's available assets (determined in
accordance with subsection (h)).
``(2) Exception.--If the sum of paragraphs (1), (2), and
(3) with respect to a dependent student is less than -$1,500,
the student aid index for the dependent student shall be
-$1,500.
``(b) Assessment of Parents' Adjusted Available Income.--The
assessment of parents' adjusted available income is equal to the amount
determined by--
``(1) computing adjusted available income by adding--
``(A) the parents' available income (determined in
accordance with subsection (c)); and
``(B) the parents' available assets (determined in
accordance with subsection (d));
``(2) assessing such adjusted available income in
accordance with the assessment schedule set forth in subsection
(e); and
``(3) considering such assessment resulting under paragraph
(2) as the amount determined under this subsection.
``(c) Parents' Available Income.--
``(1) In general.--The parents' available income is
determined by subtracting from total income (as defined in
section 480)--
``(A) Federal income taxes;
``(B) an allowance for payroll taxes, determined in
accordance with paragraph (2);
``(C) an income protection allowance, determined in
accordance with paragraph (3); and
``(D) an employment expense allowance, determined
in accordance with paragraph (4).
``(2) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the total amount earned by the parents,
multiplied by the rate of tax under section 3101(b) of
the Internal Revenue Code of 1986; and
``(B) the amount earned by the parents that does
not exceed such contribution and benefit base (twice
such contribution and benefit base, in the case of a
joint return) for the year of the earnings, multiplied
by the rate of tax applicable to such earnings under
section 3101(a) of such Code.
``(3) Income protection allowance.--The income protection
allowance for award year 2020-2021 and each succeeding award
year shall equal the amount determined in the following table,
as adjusted by the Secretary pursuant to section 478(b):
``Income Protection Allowance 2020-2021 (to be adjusted for 2021-2022
and succeeding years)
------------------------------------------------------------------------
Family Size (including student) Amount
------------------------------------------------------------------------
2.......................................................... $19,080
3.......................................................... $23,760
4.......................................................... $29,340
5.......................................................... $34,620
6.......................................................... $40,490
For each additional add.................................... $4,750.
------------------------------------------------------------------------
``(4) Employment expense allowance.--The employment expense
allowance is equal to the lesser of $4,000 or 35 percent of the
single parent's earned income or married parents' combined
earned income (or is equal to a successor amount as adjusted by
the Secretary pursuant to section 478(g)).
``(d) Parents' Available Assets.--
``(1) In general.--
``(A) Determination.--Except as provided in
subparagraph (B), the parents' available assets are
equal to--
``(i) the difference between the parents'
net assets and the education savings and asset
protection allowance (determined in accordance
with paragraph (2)); multiplied by
``(ii) 12 percent.
``(B) Not less than zero.--Parents' available
assets under this subsection shall not be less than
zero.
``(2) Education savings and asset protection allowance.--
The education savings and asset protection allowance is
calculated according to the following table (or a successor
table prescribed by the Secretary under section 478(d)):
``Education Savings and Asset Protection Allowances for Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
And there are
-------------------------------------------------
two parents one parent
If the age of the oldest parent is-- -------------------------------------------------
then the allowance is--
----------------------------------------------------------------------------------------------------------------
25 or less.................................................... $0 $0
26............................................................ $300 $100
27............................................................ $700 $200
28............................................................ $1,000 $300
29............................................................ $1,300 $500
30............................................................ $1,600 $600
31............................................................ $2,000 $700
32............................................................ $2,300 $800
33............................................................ $2,600 $900
34............................................................ $2,900 $1,000
35............................................................ $3,300 $1,100
36............................................................ $3,600 $1,200
37............................................................ $3,900 $1,300
38............................................................ $4,200 $1,500
39............................................................ $4,600 $1,600
40............................................................ $4,900 $1,700
41............................................................ $5,100 $1,700
42............................................................ $5,200 $1,700
43............................................................ $5,300 $1,800
44............................................................ $5,400 $1,800
45............................................................ $5,500 $1,900
46............................................................ $5,700 $1,900
47............................................................ $5,800 $1,900
48............................................................ $6,000 $2,000
49............................................................ $6,100 $2,000
50............................................................ $6,300 $2,100
51............................................................ $6,400 $2,100
52............................................................ $6,600 $2,200
53............................................................ $6,800 $2,200
54............................................................ $6,900 $2,300
55............................................................ $7,100 $2,300
56............................................................ $7,300 $2,400
57............................................................ $7,500 $2,500
58............................................................ $7,700 $2,500
59............................................................ $7,900 $2,600
60............................................................ $8,200 $2,700
61............................................................ $8,400 $2,700
62............................................................ $8,600 $2,800
63............................................................ $8,900 $2,900
64............................................................ $9,200 $2,900
65 or more.................................................... $9,400 $3,000.
----------------------------------------------------------------------------------------------------------------
``(e) Assessment Schedule.--The assessment of the parents' adjusted
available income (as determined under subsection (b)(1) and hereafter
in this subsection referred to as `AAI') is calculated according to the
following table (or a successor table prescribed by the Secretary under
section 478(e)):
``Parents' Contribution From AAI
------------------------------------------------------------------------
Then the parents' contribution
If the parents' AAI is-- from AAI is--
------------------------------------------------------------------------
Less than -$6,820...................... -$1,500
-$6,820 to $17,000..................... 22% of AAI
$17,001 to $21,400..................... $3,740 + 25% of AAI over
$17,000
$21,401 to $25,700..................... $4,840 + 29% of AAI over
$21,400
$25,701 to $30,100..................... $6,087 + 34% of AAI over
$25,700
$30,101 to $34,500..................... $7,583 + 40% of AAI over
$30,100
$34,501 or more........................ $9,343 + 47% of AAI over
$34,500.
------------------------------------------------------------------------
``(f) Consideration of Parental Income.--
``(1) Married parents.--Parental income and assets in the
case of student whose parents are married and not separated
shall include the income and assets of both parents.
``(2) Divorced or separated parents.--Parental income and
assets for a student whose parents are divorced or separated,
but not remarried, is determined:
``(A) By including only the income and assets of
the parent with whom the student resided for the
greater portion of the 12-month period preceding the
date of the application.
``(B) If the preceding criterion does not apply,
include only the income and assets of the parent who
provided the greater portion of the student's support
for the 12-month period preceding the date of
application.
``(C) If neither of the preceding criteria apply,
include only the income and assets of the parent who
provided the greater support during the most recent
calendar year for which parental support was provided.
``(3) Death of a parent.--Parental income and assets in the
case of the death of any parent is determined as follows:
``(A) If either of the parents has died, the
surviving parent shall be considered a single parent,
until that parent has remarried.
``(B) If both parents have died, the student shall
not report any parental income or assets.
``(4) Remarried parents.--If a parent whose income and
assets are taken into account under paragraph (2), or if a
parent who is a widow or widower and whose income is taken into
account under paragraph (3), has remarried, the income of that
parent's spouse shall be included in determining the parent's
assessment of adjusted available income if the student's parent
and the stepparent are married as of the date of application
for the award year concerned.
``(5) Single parent who is not divorced or separated.--
Parental income and assets in the case of a student whose
parent is a single parent but who is not divorced, separated,
or remarried, shall include the income and assets of such
single parent.
``(g) Student's Available Income.--
``(1) In general.--The student's available income is equal
to--
``(A) the difference between the student's total
income (determined in accordance with section 480) and
the adjustment to student income (determined in
accordance with paragraph (2)); multiplied by
``(B) 50 percent.
``(2) Adjustment to student income.--The adjustment to
student income is equal to the sum of--
``(A) the Federal income taxes of the student;
``(B) an allowance for payroll taxes determined in
accordance with paragraph (3);
``(C) an income protection allowance that is equal
to--
``(i) $9,110 for award year 2020-2021; and
``(ii) for each succeeding award year, the
amount adjusted pursuant to section 478(b); and
``(D) an allowance for parents' negative available
income, determined in accordance with paragraph (4).
``(3) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the total amount earned by the student,
multiplied by the rate of tax under section 3101(b) of
the Internal Revenue Code of 1986; and
``(B) the amount earned by the student that does
not exceed such contribution and benefit base for the
year of the earnings, multiplied by the rate of tax
applicable to such earnings under section 3101(a) of
such Code.
``(4) Allowance for parents' negative available income.--
The allowance for parents' negative available income is the
amount, if any, by which the sum of the amounts deducted under
subparagraphs (A) through (D) of subsection (c)(1) exceeds the
sum of the parents' total income (as defined in section 480)
and the parents' available assets (as determined in accordance
with subsection (d)).
``(h) Student's Assets.--The student's assets are determined by
calculating the net assets of the student and multiplying such amount
by 20 percent, except that the result shall not be less than zero.''.
(e) Student Aid Index for Independent Students Without Dependents
Other Than a Spouse.--Section 476 of the Higher Education Act of 1965
(20 U.S.C. 1087pp) is amended to read as follows:
``SEC. 476. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITHOUT
DEPENDENTS OTHER THAN A SPOUSE.
``(a) Computation of Student Aid Index.--
``(1) In general.--For each independent student without
dependents other than a spouse, the student aid index is equal
to (except as provided in paragraph (2)) the sum of--
``(A) the family's available income (determined in
accordance with subsection (b)); and
``(B) the family's available assets (determined in
accordance with subsection (c)).
``(2) Exception.--If the sum of paragraphs (1) and (2) with
respect to a independent student without dependents other than
a spouse is less than -$1,500, the student aid index for the
independent student shall be -$1,500.
``(b) Family's Available Income.--
``(1) In general.--The family's available income is
determined by--
``(A) deducting from total income (as defined in
section 480)--
``(i) Federal income taxes;
``(ii) an allowance for payroll taxes,
determined in accordance with paragraph (2);
``(iii) an income protection allowance that
is equal to--
``(I) in the case of a single
independent student without
dependents--
``(aa) $14,190 for award
year 2020-2021; and
``(bb) for each succeeding
award year, the amount adjusted
pursuant to section 478(b); and
``(II) in the case of a married
independent student without
dependents--
``(aa) $22,750 for award
year 2020-2021; and
``(bb) for each succeeding
award year, the amount adjusted
pursuant to section 478(b); and
``(iv) in the case of a married independent
student, an employment expense allowance, as
determined in accordance with paragraph (3);
and
``(B) multiplying the amount determined under
subparagraph (A) by 50 percent.
``(2) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the total amount earned by the student (and
spouse, if appropriate), multiplied by the rate of tax
under section 3101(b) of the Internal Revenue Code of
1986; and
``(B) the amount earned by the student (and spouse,
if appropriate) that does not exceed such contribution
and benefit base (twice such contribution and benefit
base, in the case of a joint return) for the year of
the earnings, multiplied by the rate of tax applicable
to such earnings under section 3101(a) of such Code.
``(3) Employment expenses allowance.--The employment
expense allowance is equal to the following:
``(A) If the student is married, such allowance is
equal to the lesser of $4,000 or 35 percent of the
couple's combined earned income (or is equal to a
successor amount as adjusted by the Secretary pursuant
to section 478(g)).
``(B) If the student is not married, the employment
expense allowance is zero.
``(c) Family's Available Assets.--
``(1) In general.--
``(A) Determination.--Except as provided in
subparagraph (B), the family's available assets are
equal to--
``(i) the difference between the family's
assets (as defined in section 480(f)) and the
asset protection allowance (determined in
accordance with paragraph (2)); multiplied by
``(ii) 20 percent.
``(B) Not less than zero.--Family's available
assets under this subsection shall not be less than
zero.
``(2) Asset protection allowance.--The asset protection
allowance is calculated according to the following table (or a
successor table prescribed by the Secretary under section
478(d)):
``Asset Protection Allowances for Families and Students
----------------------------------------------------------------------------------------------------------------
And the student is
-------------------------------------------------
married single
If the age of the student is-- -------------------------------------------------
then the allowance is--
----------------------------------------------------------------------------------------------------------------
25 or less.................................................... $0 $0
26............................................................ $300 $100
27............................................................ $700 $200
28............................................................ $1,000 $300
29............................................................ $1,300 $500
30............................................................ $1,600 $600
31............................................................ $2,000 $700
32............................................................ $2,300 $800
33............................................................ $2,600 $900
34............................................................ $2,900 $1,000
35............................................................ $3,300 $1,100
36............................................................ $3,600 $1,200
37............................................................ $3,900 $1,400
38............................................................ $4,200 $1,500
39............................................................ $4,600 $1,600
40............................................................ $4,900 $1,700
41............................................................ $5,100 $1,700
42............................................................ $5,200 $1,700
43............................................................ $5,300 $1,800
44............................................................ $5,400 $1,800
45............................................................ $5,500 $1,900
46............................................................ $5,700 $1,900
47............................................................ $5,800 $1,900
48............................................................ $6,000 $2,000
49............................................................ $6,100 $2,000
50............................................................ $6,300 $2,100
51............................................................ $6,400 $2,100
52............................................................ $6,600 $2,200
53............................................................ $6,800 $2,200
54............................................................ $6,900 $2,300
55............................................................ $7,100 $2,300
56............................................................ $7,300 $2,400
57............................................................ $7,500 $2,500
58............................................................ $7,700 $2,500
59............................................................ $7,900 $2,600
60............................................................ $8,200 $2,700
61............................................................ $8,400 $2,700
62............................................................ $8,600 $2,800
63............................................................ $8,900 $2,900
64............................................................ $9,200 $2,900
65 or more.................................................... $9,400 $3,000.
----------------------------------------------------------------------------------------------------------------
``(d) Computations in Case of Separation, Divorce, or Death.--In
the case of a student who is divorced or separated, or whose spouse has
died, the spouse's income and assets shall not be considered in
determining the family's available income or assets.''.
(f) Student Aid Index for Independent Students With Dependents
Other Than a Spouse.--Section 477 of the Higher Education Act of 1965
(20 U.S.C. 1087qq) is amended to read as follows:
``SEC. 477. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITH DEPENDENTS
OTHER THAN A SPOUSE.
``(a) Computation of Student Aid Index.--For each independent
student with dependents other than a spouse, the student aid index is
equal to the amount determined by--
``(1) computing adjusted available income by adding--
``(A) the family's available income (determined in
accordance with subsection (b)); and
``(B) the family's available assets (determined in
accordance with subsection (c));
``(2) assessing such adjusted available income in
accordance with an assessment schedule set forth in subsection
(d); and
``(3) considering such assessment resulting under paragraph
(2) as the amount determined under this subsection.
``(b) Family's Available Income.--
``(1) In general.--The family's available income is
determined by deducting from total income (as defined in
section 480)--
``(A) Federal income taxes;
``(B) an allowance for payroll taxes, determined in
accordance with paragraph (2);
``(C) an income protection allowance, determined in
accordance with paragraph (3); and
``(D) an employment expense allowance, determined
in accordance with paragraph (4).
``(2) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the amount earned by the student (and spouse,
if appropriate), multiplied by the rate of tax under
section 3101(b) of the Internal Revenue Code of 1986;
and
``(B) the amount earned by the student (and spouse,
if appropriate) that does not exceed such contribution
and benefit base (twice such contribution and benefit
base, in the case of a joint return) for the year of
the earnings, multiplied by the rate of tax applicable
to such earnings under section 3101(a) of such Code.
``(3) Income protection allowance.--The income protection
allowance for award year 2020-2021 and each succeeding award
year shall equal the amount determined in the following table,
as adjusted by the Secretary pursuant to section 478(b):
``(A) In the case of a married independent student
with dependents:
``Income Protection Allowance 2020-2021 (to be adjusted for 2021-2022
and succeeding years)
------------------------------------------------------------------------
Family Size (including student) Amount
------------------------------------------------------------------------
3.......................................................... $44,470
4.......................................................... $55,260
5.......................................................... $65,190
6.......................................................... $76,230
For each additional add.................................... $8,610.
------------------------------------------------------------------------
``(B) In the case of a single independent student
with dependents:
``Income Protection Allowance 2020-2021 (to be adjusted for 2021-2022
and succeeding years)
------------------------------------------------------------------------
Family Size (including student) Amount
------------------------------------------------------------------------
2.......................................................... $43,128
3.......................................................... $54,364
4.......................................................... $66,312
5.......................................................... $78,228
6.......................................................... $91,476
For each additional add.................................... $10,332.
------------------------------------------------------------------------
``(4) Employment expense allowance.--The employment expense
allowance is equal to the lesser of $4,000 or 35 percent of the
student's earned income or the combined earned income of the
student and the student's spouse (or is equal to a successor
amount as adjusted by the Secretary under section 478(g)).
``(c) Family's Available Assets.--
``(1) In general.--
``(A) Determination.--Except as provided in
subparagraph (B), the family's available assets are
equal to--
``(i) the difference between the family's
assets (as defined in 480(f)) and the asset
protection allowance (determined in accordance
with paragraph (2)); multiplied by
``(ii) 7 percent.
``(B) Not less than zero.--Family's available
assets under this subsection shall not be less than
zero.
``(2) Asset protection allowance.--The asset protection
allowance is calculated according to the following table (or a
successor table prescribed by the Secretary under section
478(d)):
``Asset Protection Allowances for Families and Students
----------------------------------------------------------------------------------------------------------------
And the student is
-------------------------------------------------
married single
If the age of the student is-- -------------------------------------------------
then the allowance is--
----------------------------------------------------------------------------------------------------------------
25 or less.................................................... $0 $0
26............................................................ $300 $100
27............................................................ $700 $200
28............................................................ $1,000 $300
29............................................................ $1,300 $500
30............................................................ $1,600 $600
31............................................................ $2,000 $700
32............................................................ $2,300 $800
33............................................................ $2,600 $900
34............................................................ $2,900 $1,000
35............................................................ $3,300 $1,100
36............................................................ $3,600 $1,200
37............................................................ $3,900 $1,400
38............................................................ $4,200 $1,500
39............................................................ $4,600 $1,600
40............................................................ $4,900 $1,700
41............................................................ $5,100 $1,700
42............................................................ $5,200 $1,700
43............................................................ $5,300 $1,800
44............................................................ $5,400 $1,800
45............................................................ $5,500 $1,900
46............................................................ $5,700 $1,900
47............................................................ $5,800 $1,900
48............................................................ $6,000 $2,000
49............................................................ $6,100 $2,000
50............................................................ $6,300 $2,100
51............................................................ $6,400 $2,100
52............................................................ $6,600 $2,200
53............................................................ $6,800 $2,200
54............................................................ $6,900 $2,300
55............................................................ $7,100 $2,300
56............................................................ $7,300 $2,400
57............................................................ $7,500 $2,500
58............................................................ $7,700 $2,500
59............................................................ $7,900 $2,600
60............................................................ $8,200 $2,700
61............................................................ $8,400 $2,700
62............................................................ $8,600 $2,800
63............................................................ $8,900 $2,900
64............................................................ $9,200 $2,900
65 or more.................................................... $9,400 $3,000.
----------------------------------------------------------------------------------------------------------------
``(d) Assessment Schedule.--The assessment of adjusted available
income (as determined under subsection (a)(1) and hereafter in this
subsection referred to as `AAI') is calculated according to the
following table (or a successor table prescribed by the Secretary
pursuant to section 478(e)):
``Assessment From Adjusted Available Income
------------------------------------------------------------------------
If AAI is-- Then the assessment is--
------------------------------------------------------------------------
Less than -$6,820...................... -$1,500
-$6,820 to $17,000..................... 22% of AAI
$17,001 to $21,400..................... $3,740 + 25% of AAI over
$17,000
$21,401 to $25,700..................... $4,840 + 29% of AAI over
$21,400
$25,701 to $30,100..................... $6,087 + 34% of AAI over
$25,700
$30,101 to $34,500..................... $7,583 + 40% of AAI over
$30,100
$34,501 or more........................ $9,343 + 47% of AAI over
$34,500.
------------------------------------------------------------------------
``(e) Computations in Case of Separation, Divorce, or Death.--In
the case of a student who is divorced or separated, or whose spouse has
died, the spouse's income and assets shall not be considered in
determining the family's available income or assets.''.
(g) Regulations; Updated Tables.--Section 478 of the Higher
Education Act of 1965 (20 U.S.C. 1087rr) is amended to read as follows:
``SEC. 478. REGULATIONS; UPDATED TABLES.
``(a) Authority To Prescribe Regulations Restricted.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary shall not have the authority to prescribe
regulations to carry out this part except--
``(A) to prescribe updated tables in accordance
with subsections (b) through (g); or
``(B) to propose modifications in the need analysis
methodology required by this part.
``(2) Notification and approval.--Any regulation proposed
by the Secretary that updates tables in a manner that does not
comply with subsections (b) through (g), or that proposes
modifications under paragraph (1)(B), shall not be effective
unless subject to notification and approval by the authorizing
committees not less than 90 days before such regulation is
published in the Federal Register in accordance with section
482.
``(b) Income Protection Allowance Adjustments.--For award year
2021-2022 and each succeeding award year, the Secretary shall publish
in the Federal Register revised income protection allowances for the
purposes of subsections (c)(3) and (g)(2)(C) of section 475, subclauses
(I) and (II) of section 476(b)(1)(A)(iii), and section 477(b)(3), by
increasing the income protection allowances in each of such provisions,
by a percentage equal to the percentage increase in the Consumer Price
Index, as defined in subsection (f), between April 2019 and the April
prior to the beginning of the award year and rounding the result to the
nearest $10.
``(c) Adjusted Net Worth of a Farm or Business.--
``(1) Table.--The table of the net worth of a business or
farm (hereafter in this subsection referred to as `NW') for
purposes of making determinations of assets as defined under
section 480(f) for award year 2020-2021 is the following:
``Business/Farm Net Worth Adjustment
------------------------------------------------------------------------
If the net worth of a business or farm Then the adjusted net worth is--
is--
------------------------------------------------------------------------
Less than $1........................... $0
$1 to $135,000......................... 40% of net worth of business/
farm
$135,001 to $410,000................... $54,000 + 50% of net worth over
$135,000
$410,001 to $680,000................... $191,500 + 60% of net worth
over $410,000
$680,001 or more....................... $353,500 + 100% of net worth
over $680,000.
------------------------------------------------------------------------
``(2) Revised tables.--For each award year after award year
2020-2021, the Secretary shall publish in the Federal Register
a revised table of adjusted net worth of a farm or business for
purposes of section 480(f). Such revised table shall be
developed--
``(A) by increasing each dollar amount that refers
to net worth of a farm or business by a percentage
equal to the percentage increase in the Consumer Price
Index between April 2019 and the April prior to the
beginning of such award year, and rounding the result
to the nearest $5,000; and
``(B) by adjusting the dollar amounts in the column
referring the adjusted net worth to reflect the changes
made pursuant to subparagraph (A).
``(d) Education Savings and Asset Protection Allowance.--For each
award year after award year 2020-2021, the Secretary shall publish in
the Federal Register a revised table of allowances for the purpose of
sections 475(d)(2), 476(c)(2), and 477(c)(2). Such revised table shall
be developed by determining the present value cost, rounded to the
nearest $100, of an annuity that would provide, for each age cohort of
40 and above, a supplemental income at age 65 (adjusted for inflation)
equal to the difference between the moderate family income (as most
recently determined by the Bureau of Labor Statistics), and the current
average social security retirement benefits. For each age cohort below
40, the allowance shall be computed by decreasing the allowance for age
40, as updated, by one-fifteenth for each year of age below age 40 and
rounding the result to the nearest $100. In making such
determinations--
``(1) inflation shall be presumed to be 6 percent per year;
``(2) the rate of return of an annuity shall be presumed to
be 8 percent; and
``(3) the sales commission on an annuity shall be presumed
to be 6 percent.
``(e) Assessment Schedules and Rates.--For each award year after
award year 2020-2021, the Secretary shall publish in the Federal
Register a revised table of assessments from adjusted available income
for the purpose of sections 475(e) and 477(d). Such revised table shall
be developed--
``(1) by increasing each dollar amount that refers to
adjusted available income by a percentage equal to the
percentage increase in the Consumer Price Index between April
2019 and the April prior to the beginning of such academic
year, rounded to the nearest $100; and
``(2) by adjusting the other dollar amounts to reflect the
changes made pursuant to paragraph (1).
``(f) Consumer Price Index Defined.--In this section, the term
`Consumer Price Index' means the Consumer Price Index for All Urban
Consumers published by the Department of Labor. Each annual update of
tables to reflect changes in the Consumer Price Index shall be
corrected for misestimation of actual changes in such Index in previous
years.
``(g) Employment Expense Allowance.--For each award year after
award year 2020-2021, the Secretary shall publish in the Federal
Register a revised table of employment expense allowances for the
purpose of sections 475(c)(4), 476(b)(3), and 477(b)(4). Such revised
table shall be developed by increasing the dollar amount specified in
sections 475(c)(4), 476(b)(3), and 477(b)(4) to reflect the
inflationary adjustment that is used for the income protection
allowances in subsection (b).''.
(h) Applicants Exempt From Asset Reporting.--Section 479 of the
Higher Education Act of 1965 (20 U.S.C. 1087ss) is amended to read as
follows:
``SEC. 479. APPLICANTS EXEMPT FROM ASSET REPORTING.
``(a) In General.--Notwithstanding any other provision of law, this
section shall be effective for each individual seeking to apply for
Federal financial aid under this title, as part of the simplified
application for Federal student financial aid under section 483.
``(b) Applicants Exempt From Asset Reporting.--
``(1) In general.--Except as provided in paragraph (3), in
carrying out section 483, the Secretary shall not use asset
information from an eligible applicant or, as applicable, the
parent or spouse of an eligible applicant.
``(2) Eligible applicants.--In this subsection, the term
`eligible applicant' means an applicant who meets at least one
of the following criteria:
``(A) Is an applicant who qualifies for an
automatic zero student aid index or automatic negative
student aid index under subsection (b), (c), or (d) of
section 473.
``(B) Is an applicant who is a dependent student
and the student's parents have a total adjusted gross
income (excluding any income of the dependent student)
that is less than $75,000 and do not file a Schedule A,
B, D, E, F, or H (or equivalent successor schedules),
with the Federal income tax return for the second
preceding tax year, and--
``(i) do not file a Schedule C (or the
equivalent successor schedule) with the Federal
income tax return for the second preceding tax
year; or
``(ii) file a Schedule C (or the equivalent
successor schedule) with net business income of
not more than a $10,000 loss or gain with the
Federal income tax return for the second
preceding tax year.
``(C) Is an applicant who is an independent student
and the student (and including the student's spouse, if
any) has a total adjusted gross income that is less
than $75,000 and does not file a Schedule A, B, C, D,
E, F, or H (or equivalent successor schedules), with
the Federal income tax return for the second preceding
tax year, and--
``(i) does not file a Schedule C (or the
equivalent successor schedule) with the Federal
income tax return for the second preceding tax
year; or
``(ii) files a Schedule C (or the
equivalent successor schedule) with net
business income of not more than a $10,000 loss
or gain with the Federal income tax return for
the second preceding tax year.
``(3) Special rule.--An eligible applicant shall not be
exempt from asset reporting under this section if the applicant
is a dependent student and the students' parents do not--
``(A) reside in the United States or a United
States territory; or
``(B) file taxes in the United States or a United
States territory, except if such nonfiling is due to
not being required to file a Federal tax return for the
applicable tax year due to a low income.''.
(i) Discretion of Student Financial Aid Administrators.--Section
479A of the Higher Education Act of 1965 (20 U.S.C. 1087tt) is amended
to read as follows:
``SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
``(a) Authority of Financial Aid Administrator.--
``(1) General authority.--A financial aid administrator
shall have the authority to, on the basis of documentation,
make adjustments on a case-by-case basis to the cost of
attendance or the values of the data used to calculate the
student aid index or Federal Pell Grant award (or both) for an
individual eligible applicant with special circumstances. In
making adjustments described in this paragraph, a financial aid
administrator may--
``(A) request and use supplementary information, as
necessary, about the financial status or personal
circumstances of eligible applicants as it relates to
the special circumstances based on which the applicant
is requesting an adjustment; or
``(B) offer a dependent student financial
assistance under a Federal Direct Unsubsidized Stafford
Loan without requiring the parents of such student to
file the Free Application for Federal Student Aid if
the student does not qualify for, or chooses not
utilize, the unusual circumstance option specified in
accordance with section 480(d)(1)(I), and the financial
aid administrator determines that the parents of such
student ended financial support of such student and
refuse to file such form.
``(2) Limitation relating to authority of the financial aid
administrator.--In the absence of special circumstances as
described in subparagraphs (A) and (B) of this paragraph, the
authority under paragraph (1) shall not be construed to permit
financial aid administrators to deviate from the cost of
attendance, the values of the data used to calculate the
student aid index or the values of the data used to calculate
the Federal Pell Grant award (or both) for awarding aid under
this title.
``(A) Special circumstances for adjustments related
to pell grants.--Special circumstances for adjustments
to calculate a Federal Pell Grant award--
``(i) shall be conditions that
differentiate an individual student from a
class of students rather than conditions that
exist across a class of students; and
``(ii) may include--
``(I) recent unemployment of a
family member or an independent
student;
``(II) a student or family member
who is a dislocated worker (as defined
in section 3 of the Workforce
Innovation and Opportunity Act);
``(III) a change in housing status
that results in an individual being a
homeless child or youth (as defined in
section 725 of the McKinney-Vento
Homeless Assistance Act); or
``(IV) other changes or adjustments
in the income, assets, or size of a
family, or a student's dependency
status.
``(B) Special circumstances for adjustments related
to cost of attendance and student aid index.--Special
circumstances for adjustments to the cost of attendance
or the values of the data used to calculate the student
aid index--
``(i) shall be conditions that
differentiate an individual student from a
class of students rather than conditions that
exist across a class of students; and
``(ii) may include--
``(I) tuition expenses at an
elementary school or secondary school;
``(II) medical, dental, or nursing
home expenses not covered by insurance;
``(III) unusually high child care
or dependent care costs;
``(IV) recent unemployment of a
family member or an independent
student;
``(V) a student or family member
who is a dislocated worker (as defined
in section 3 of the Workforce
Innovation and Opportunity Act);
``(VI) the number of family members
enrolled in a degree, certificate, or
other program leading to a recognized
educational credential at an
institution with a program
participation agreement under section
487;
``(VII) a change in housing status
that results in an individual being a
homeless child or youth (as defined in
section 725 of the McKinney-Vento
Homeless Assistance Act);
``(VIII) in the case of a dependent
student, a recent condition of severe
disability of the student, the
dependent student's parent or guardian,
or an independent student's dependent
or spouse;
``(IX) unusual amount of claimed
losses against income on the Federal
tax return that substantially lower
adjusted gross income, such as
business, investment, or real estate
losses; or
``(X) other changes or adjustments
in the income, assets, or size of a
family, or a student's dependency
status.
``(3) Use of authority.--No institution of higher education
or financial aid administrator shall maintain a policy of
denying all requests for adjustments under this subsection.
``(4) Documentation and prohibition on fees.--
``(A) In general.--Documentation for adjustments
under paragraph (1) shall substantiate the special
circumstances of individual students, and may include a
documented interview between the student and the
financial aid administrator.
``(B) No additional fee.--No student or parent
shall be charged a fee for a documented interview of
the student by the financial aid administrator or for
the review of a student or parent's request for
adjustments under this subsection including the review
of any supplementary information or documentation of a
student or parent's special circumstance.
``(C) Disclosure.--Each institution of higher
education shall make publicly available information
that students applying for aid under this title shall
have the opportunity to pursue adjustments under this
subsection, such as through an easily accessible notice
on the institution's website or direct disclosures to
students.
``(b) Provisional Independent Students.--
``(1) Requirements for the secretary.--The Secretary
shall--
``(A) enable each student who, based on an unusual
circumstance specified in accordance with section
480(d)(1)(I), may qualify for an adjustment under
subsection (a) that will result in a determination of
independence under this section and section
480(d)(1)(I) to complete the Free Application for
Federal Student Aid as an independent student for the
purpose of a provisional determination of the student's
Federal financial aid award, but subject to the
authority under paragraph (2)(E), for the purpose of
the final determination of the award;
``(B) upon completion of the Free Application for
Federal Student Aid provide an estimate of the
student's Federal Pell Grant award, based on the
assumption the student is determined to be an
independent student; and
``(C) specify, on the Free Application for Federal
Student Aid, the consequences under section 490(a) of
knowingly and willfully completing the Free Application
for Federal Student Aid as an independent student under
subparagraph (A) without meeting the unusual
circumstances to qualify for such a determination.
``(2) Requirements for financial aid administrators.--With
respect to a student accepted for admission who completes the
Free Application for Federal Student Aid as an independent
student under paragraph (1)(A), a financial aid administrator--
``(A) shall notify the student of the institutional
process, requirements, and timeline for an adjustment
under this section and section 480(d)(1)(I) that will
result in a review of the student's request for an
adjustment and a determination of the student's
dependency status under such sections within a
reasonable time after the student completes the Free
Application for Federal Student Aid;
``(B) shall provide the student a final
determination of the student's dependency status and
Federal financial aid award within a reasonable amount
of time after all requested documentation is provided;
``(C) may consider as adequate verification that a
student qualifies for an adjustment under this section
and section 480(d)(1)(I)--
``(i) submission of a court order or
official Federal or State documentation that
the student's parents or legal guardians are
incarcerated in any Federal or State penal
institution;
``(ii) a documented phone call or a written
statement, which confirms the specific unusual
circumstances with--
``(I) a child welfare agency
authorized by a State or county;
``(II) a Tribal child welfare
authority;
``(III) an independent living case
worker; or
``(IV) a public or private agency,
facility, or program serving the
victims of abuse, neglect, assault, or
violence;
``(iii) a documented phone call or a
written statement from an attorney, a guardian
ad litem, or a court appointed special
advocate, which confirms the specific unusual
circumstances and documents the person's
relationship to the student;
``(iv) a documented phone call or a written
statement from a representative of a program
under chapter 1 or 2 of subpart 2 of part A,
which confirms the specific unusual
circumstances and documents the person's
relationship to the student; or
``(v) in the absence of documentation
described in this subparagraph, other
documentation the financial aid administrator
determines is adequate and appropriate to
confirm the unusual circumstances;
``(D) shall retain all documents related to the
adjustment under this section and section 480(d)(1)(I),
including documented interviews, for at least the
duration of the student's enrollment, and shall abide
by all other record keeping requirements of this Act;
and
``(E) shall presume that any student who has
obtained an adjustment under this section and section
480(d)(1)(I) and a final determination of independence
for a preceding award year at an institution to be
independent for a subsequent award year at the same
institution unless--
``(i) the student informs the institution
that circumstances have changed; or
``(ii) the institution has specific
conflicting information about the student's
independence.
``(c) Adjustments to Assets or Income Taken Into Account.--A
financial aid administrator shall be considered to be making a
necessary adjustment in accordance with subsection (a) if--
``(1) the administrator makes adjustments excluding from
family income or assets any proceeds or losses from a sale of
farm or business assets of a family if such sale results from a
voluntary or involuntary foreclosure, forfeiture, or bankruptcy
or a voluntary or involuntary liquidation; or
``(2) the administrator makes adjustments for a student
with a disability so as to take into consideration the
additional costs such student incurs as a result of such
student's disability.
``(d) Refusal or Adjustment of Loan Certifications.--On a case-by-
case basis, an eligible institution may refuse to use the authority
provided under this section, certify a statement that permits a student
to receive a loan under part D, certify a loan amount, or make a loan
that is less than the student's determination of need (as determined
under this part), if the reason for the action is documented and
provided in written form to the student. No eligible institution shall
discriminate against any borrower or applicant in obtaining a loan on
the basis of race, national origin, religion, sex, marital status, age,
or disability status.''.
(j) Disregard of Student Aid in Other Programs.--Section 479B of
the Higher Education Act of 1965 (20 U.S.C. 1087uu) is amended to read
as follows:
``SEC. 479B. DISREGARD OF STUDENT AID IN OTHER PROGRAMS.
``Notwithstanding any other provision of law, student financial
assistance received under this title, or under Bureau of Indian Affairs
student assistance programs, shall not be taken into account in
determining the need or eligibility of any person for benefits or
assistance, or the amount of such benefits or assistance, under any
Federal, State, or local program financed in whole or in part with
Federal funds.''.
(k) Native American Students.--Section 479C of the Higher Education
Act of 1965 (20 U.S.C. 1087uu-1) is amended to read as follows:
``SEC. 479C. NATIVE AMERICAN STUDENTS.
``In determining the student aid index for Native American
students, computations performed pursuant to this part shall exclude--
``(1) any income and assets of $2,000 or less per
individual payment received by the student (and spouse) and
student's parents under Public Law 98-64 (25 U.S.C. 117a et
seq.; 97 Stat. 365) (commonly known as the `Per Capita Act') or
the Indian Tribal Judgment Funds Use or Distribution Act (25
U.S.C. 1401 et seq.); and
``(2) any income received by the student (and spouse) and
student's parents under the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.) or the Maine Indian Claims Settlement
Act of 1980 (25 U.S.C. 1721 et seq.).''.
(l) Definitions.--Section 480 of the Higher Education Act of 1965
(20 U.S.C. 1087vv) is amended to read as follows:
``SEC. 480. DEFINITIONS.
``In this part:
``(a) Total Income.--The term `total income' means the amount equal
to adjusted gross income for the second preceding tax year plus untaxed
income and benefits for the second preceding tax year minus excludable
income for the second preceding tax year. The factors used to determine
total income shall be derived from the Federal income tax return, if
available, except for the applicant's ability to indicate a qualified
rollover in the second preceding tax year as outlined in section 483.
``(b) Untaxed Income and Benefits.--The term `untaxed income and
benefits' means--
``(1) deductions and payments to self-employed SEP, SIMPLE,
Keogh, and other qualified individual retirement accounts
excluded from income for Federal tax purposes, except such term
shall not include payments made to tax-deferred pension and
retirement plans, paid directly or withheld from earnings, that
are not delineated on the Federal tax return;
``(2) tax-exempt interest income;
``(3) untaxed portion of individual retirement account
distributions;
``(4) untaxed portion of pensions; and
``(5) untaxed contributions to health savings accounts.
``(c) Veteran.--The term `veteran' has the meaning given the term
in section 101(2) of title 38, United States Code.
``(d) Independent Students and Determinations.--
``(1) Definition.--The term `independent', when used with
respect to a student, means any individual who--
``(A) is 24 years of age or older by December 31 of
the award year;
``(B) is an orphan, in foster care, or a ward of
the court, or was an orphan, in foster care, or a ward
of the court at any time when the individual was 13
years of age or older;
``(C) is, or was immediately prior to attaining the
age of majority, an emancipated minor or in legal
guardianship as determined by a court of competent
jurisdiction in the individual's State of legal
residence;
``(D) is a veteran of the Armed Forces of the
United States (as defined in subsection (c)) or is
currently serving on active duty in the Armed Forces
for other than training purposes;
``(E) is a graduate or professional student;
``(F) is married and not separated;
``(G) has legal dependents other than a spouse;
``(H) has been verified as either an unaccompanied
youth 23 years of age or younger who is a homeless
child or youth (as such term is defined in section 725
of the McKinney-Vento Homeless Assistance Act), or as
unaccompanied, at risk of homelessness, and self-
supporting, by--
``(i) by a local educational agency
homeless liaison, designated pursuant to
section 722(g)(1)(J)(ii) of the McKinney-Vento
Homeless Assistance Act or a designee of the
liaison;
``(ii) by the director of a recognized
emergency shelter, transitional living, street
outreach program, or other program serving
individuals who are homeless or a designee of
the director;
``(iii) by the director of a Federal TRIO
program or a Gaining Early Awareness and
Readiness for Undergraduate program under
chapter 1 or 2 of subpart 2 of part A or a
designee of the director;
``(iv) by a financial aid administrator who
verified the student's circumstance in a prior
award year; or
``(v) pursuant to paragraph (3); or
``(I) is a student for whom a financial aid
administrator makes a documented determination of
independence by reason of other unusual circumstances
in which the student is unable to contact a parent or
where contact with parents poses a risk to such
student, which may include circumstances of--
``(i) human trafficking, as described in
the Trafficking Victims Protection Act of 2000
(22 U.S.C. 7101 et seq.);
``(ii) legally granted refugee or asylum
status;
``(iii) parental abandonment; or
``(iv) parental imprisonment.
``(2) Simplifying the dependency override process.--A
financial aid administrator may make a determination of
independence under paragraph (1)(I) based upon a documented
determination of independence that was previously made by
another financial aid administrator under such paragraph in the
same award year.
``(3) Determination process for unaccompanied youth.--A
financial aid administrator shall make a case-by-case
determination under paragraph (1)(H) if a student does not
have, and cannot get, documentation from any of the other
designated authorities described in such paragraph. A financial
aid administrator may verify, in the absence of conflicting
information, a status described in paragraph (1)(H). Such a
determination shall be--
``(A) distinct from a determination of independence
under paragraph (1)(I);
``(B) based on, and limited to, the definitions
outlined in paragraph (1)(H);
``(C) based on a written statement from or a
documented interview with the student which confirms
the student's status as an unaccompanied youth; and
``(D) made independent from the reasons for the
student's homelessness.
``(4) Verification process for foster care youth.--If an
institution requires documentation to verify that a student was
in foster care when the student was age 13 or older, as
described in paragraph (1)(B), a financial aid administrator
shall consider any of the following as adequate verification,
in the absence of documented conflicting information:
``(A) Submission of a court order or official State
documentation that the student received Federal or
State support in foster care.
``(B) A documented phone call, written statement,
or verifiable electronic data match, which confirms the
student was in foster care at an applicable age, from--
``(i) a State or tribal agency
administering a program under part B or E of
title IV of the Social Security Act (42 U.S.C.
621 et seq. and 670 et seq.);
``(ii) a State Medicaid agency; or
``(iii) a public or private foster care
placing agency or foster care facility or
placement.
``(C) A documented phone call or a written
statement from an attorney, a guardian ad litem, or a
Court Appointed Special Advocate that confirms that the
student was in foster care at an applicable age, and
documents the person's relationship to the student.
``(D) Verification of the student's eligibility for
an education and training voucher under the John H.
Chafee Foster Care Program under section 477 of the
Social Security Act (42 U.S.C. 677).
``(5) Timing; use of earlier determination.--
``(A) Timing.--A determination under subparagraph
(B), (H), or (I) of paragraph (1) for a student--
``(i) shall be made as quickly as
practicable;
``(ii) may be made as early as the year
before the award year for which the student
initially submits an application; and
``(iii) shall be made not later than during
the award year for which the student initially
submits an application.
``(B) Use of earlier determination.--Any student
who is determined to be independent under subparagraph
(B), (H), or (I) of paragraph (1) for a preceding award
year at an institution shall be presumed to be
independent for each subsequent award year at the same
institution unless--
``(i) the student informs the institution
that circumstances have changed; or
``(ii) the institution has specific
conflicting information about the student's
independence, and has informed the student of
this information.
``(6) Retention of documents.--A financial aid
administrator shall retain all documents related to the
determination of independence under subparagraph (B) or (H) of
paragraph (1), including documented interviews.
``(e) Excludable Income.--The term `excludable income' means an
amount equal to the education credits described in paragraphs (1) and
(2) of section 25A(a) of the Internal Revenue Code of 1986.
``(f) Assets.--
``(1) In general.--The term `assets' means cash on hand,
including the amount in checking and savings accounts, time
deposits, money market funds, trusts, stocks, bonds,
derivatives, other securities, mutual funds, tax shelters,
qualified education benefits (except as provided in paragraph
(3)), the annual amount of child support received and the net
value of real estate, income producing property, and business
and farm assets, determined in accordance with section 478(c).
``(2) Exclusions.--With respect to determinations of need
under this title, the term `assets' shall not include the net
value of the family's principal place of residence.
``(3) Qualified education benefit.--A qualified education
benefit shall be considered an asset of--
``(A) the student if the student is an independent
student; or
``(B) the parent if the student is a dependent
student and the account is designated for the student,
regardless of whether the owner of the account is the
student or the parent.
``(g) Net Assets.--The term `net assets' means the current market
value at the time of application of the assets (as defined in
subsection (f)), minus the outstanding liabilities or indebtedness
against the assets.
``(h) Treatment of Income Taxes Paid to Other Jurisdictions.--
``(1) The tax on income paid to the Governments of the
Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin
Islands, or the Commonwealth of the Northern Mariana Islands,
the Republic of the Marshall Islands, the Federated States of
Micronesia, or Palau under the laws applicable to those
jurisdictions, or the comparable tax paid to the central
government of a foreign country, shall be treated as Federal
income taxes.
``(2) References in this part to title 26, Federal income
tax forms, and the Internal Revenue Service shall, for purposes
of the tax described in paragraph (1), be treated as references
to the corresponding laws, tax forms, and tax collection
agencies of those jurisdictions, respectively, subject to such
adjustments as the Secretary may provide by regulation.
``(i) Current Balance.--The term `current balance of checking and
savings accounts' does not include any funds over which an individual
is barred from exercising discretion and control because of the actions
of any State in declaring a bank emergency due to the insolvency of a
private deposit insurance fund.
``(j) Other Financial Assistance.--
``(1) For purposes of determining a student's eligibility
for funds under this title, other financial assistance not
received under this title shall include all scholarships,
grants, loans, or other assistance known to the institution at
the time the determination of the student's need is made,
including national service educational awards or post-service
benefits under title I of the National and Community Service
Act of 1990 (42 U.S.C. 12511 et seq.).
``(2) Notwithstanding paragraph (1), a tax credit taken
under section 25A of the Internal Revenue Code of 1986, or a
distribution that is not includable in gross income under
section 529 of such Code, under another prepaid tuition plan
offered by a State, or under a Coverdell education savings
account under section 530 of such Code, shall not be treated as
other financial assistance for purposes of section 471(a)(3).
``(3) Notwithstanding paragraph (1) and section 472,
assistance not received under this title may be excluded from
both other financial assistance and cost of attendance, if that
assistance is provided by a State and is designated by such
State to offset a specific component of the cost of attendance.
If that assistance is excluded from either other financial
assistance or cost of attendance, it shall be excluded from
both.
``(4) Notwithstanding paragraph (1), payments made and
services provided under part E of title IV of the Social
Security Act to or on behalf of any child or youth over whom
the State agency has responsibility for placement, care, or
supervision, including the value of vouchers for education and
training and amounts expended for room and board for youth who
are not in foster care but are receiving services under section
477 of such Act, shall not be treated as other financial
assistance for purposes of section 471(a)(3).
``(k) Dependents.--
``(1) Except as otherwise provided, the term `dependent of
the parent' means the student, dependent children of the
student's parents, including those children who are deemed to
be dependent students when applying for aid under this title,
and other persons who live with and receive more than one-half
of their support from the parent and will continue to receive
more than half of their support from the parent during the
award year.
``(2) Except as otherwise provided, the term `dependent of
the student' means the student's dependent children and other
persons (except the student's spouse) who live with and receive
more than one-half of their support from the student and will
continue to receive more than half of their support from the
student during the award year.
``(l) Family Size.--
``(1) Dependent student.--Except as provided in paragraph
(3), in determining family size in the case of a dependent
student--
``(A) if the parents are not divorced or separated,
family members include the student's parents, and any
dependent (within the meaning of section 152 of the
Internal Revenue Code of 1986 or was an eligible
individual for purposes of the credit under section 32
of the Internal Revenue Code of 1986) of the student's
parents for the taxable year used in determining the
amount of need of the student for financial assistance
under this title;
``(B) if the parents are divorced or separated,
family members include the parent whose income is
included in computing available income and any
dependent (within the meaning of section 152 of the
Internal Revenue Code of 1986 or was an eligible
individual for purposes of the credit under section 32
of the Internal Revenue Code of 1986) of that parent
for the taxable year used in determining the amount of
need of the student for financial assistance under this
title;
``(C) if the parents are divorced and the parents
whose income is so included is remarried, or if the
parent was a widow or widower who has remarried, family
members also include, in addition to those individuals
referred to in paragraph (B), and any dependent (within
the meaning of section 152 of the Internal Revenue Code
of 1986 or was an eligible individual for purposes of
the credit under section 32 of the Internal Revenue
Code of 1986) of the new spouse for the taxable year
used in determining the amount of need of the student
for financial assistance under this title, if that
spouse's income is included in determining the parent's
adjusted available income; and
``(D) if the student is not considered as a
dependent (within the meaning of section 152 of the
Internal Revenue Code of 1986 or was an eligible
individual for purposes of the credit under section 32
of the Internal Revenue Code of 1986) of any parent,
the parents' family size shall include the student and
the family members applicable to the parents' situation
under subparagraph (A), (B), or (C).
``(2) Independent student.--Except as provided in paragraph
(3), in determining family size in the case of an independent
student--
``(A) family members include the student, the
student's spouse, and any dependent (within the meaning
of section 152 of the Internal Revenue Code of 1986 or
was an eligible individual for purposes of the credit
under section 32 of the Internal Revenue Code of 1986)
of that student for the taxable year used in
determining the amount of need of the student for
financial assistance under this title; and
``(B) if the student is divorced or separated,
family members do not include the spouse (or ex-
spouse), but do include the student and any dependent
(within the meaning of section 152 of the Internal
Revenue Code of 1986 or was an eligible individual for
purposes of the credit under section 32 of the Internal
Revenue Code of 1986) of that student for the taxable
year used in determining the amount of need of the
student for financial assistance under this title.
``(3) Procedures and modification.--The Secretary shall
provide procedures for determining family size in cases in
which information for the taxable year used in determining the
amount of need of the student for financial assistance under
this title has changed or does not accurately reflect the
applicant's current household size.
``(m) Business Assets.--The term `business assets' means property
that is used in the operation of a trade or business, including real
estate, inventories, buildings, machinery, and other equipment,
patents, franchise rights, and copyrights.''.
(m) FAFSA.--Section 483 of the Higher Education Act of 1965 (20
U.S.C. 1090) is amended to read as follows:
``SEC. 483. FREE APPLICATION FOR FEDERAL STUDENT AID.
``(a) Simplified Application for Federal Student Financial Aid.--
``(1) In general.--Each individual seeking to apply for
Federal financial aid under this title for any award year shall
file a free application with the Secretary, known as the `Free
Application for Federal Student Aid', to determine eligibility
for such aid, as described in paragraph (2), and in accordance
with section 479.
``(2) Free application.--
``(A) In general.--The Secretary shall make
available, for the purposes of paragraph (1), a free
application to determine the eligibility of a student
for Federal financial aid under this title.
``(B) Information required by the applicant.--
``(i) In general.--The applicant, and, if
necessary, the parents or spouse of the
applicant, shall provide the Secretary with the
applicable information described in clause (ii)
in order to be eligible for Federal financial
aid under this title.
``(ii) Information to be provided.--The
information described in this clause is the
following:
``(I) Name.
``(II) Contact information,
including address, phone number, email
address, or other electronic address.
``(III) Social security number.
``(IV) Date of birth.
``(V) Marital status.
``(VI) Citizenship status,
including alien registration number, if
applicable.
``(VII) Gender.
``(VIII) State of legal residence
and date of residency.
``(IX) Name and location of the
high school from which the applicant
received, or will receive prior to the
period of enrollment for which aid is
sought, a regular high school diploma,
name and location of the entity from
which the applicant received, or will
receive prior to the period of
enrollment for which aid is sought, a
recognized equivalent of a regular high
school diploma, or if the applicant
completed or will complete prior to the
period of enrollment for which aid is
sought, a secondary school education in
a home school setting that is treated
as a home school or private school
under State law.
``(X) Name of each institution
where the applicant intends to apply
for enrollment or continue enrollment.
``(XI) Year in school for period of
enrollment for which aid is sought,
including whether applicant will have
finished first bachelor's degree prior
to the period of enrollment for which
aid is sought.
``(XII) Whether one or both of an
applicant's parents attended college.
``(XIII) Any required asset
information, unless exempt under
section 479, in which the applicant
shall indicate--
``(aa) the annual amount of
child support received, if
applicable; and
``(bb) all required asset
information not described in
item (aa).
``(XIV) The number of members of
the applicant's family who will also be
enrolled in an eligible institution of
higher education on at least a half-
time basis during the same enrollment
period as the applicant.
``(XV) If the applicant meets any
of the following designations:
``(aa) Homeless, at risk of
being homeless, or an
unaccompanied youth.
``(bb) Emancipated minor.
``(cc) In legal
guardianship.
``(dd) Dependent ward of
the court at any time since the
applicant turned 13.
``(ee) In foster care at
any time since the applicant
turned 13.
``(ff) If both parents have
died since the applicant turned
13.
``(gg) Is a veteran of the
Armed Forces of the United
States or is serving (on the
date of the application) on
active duty in the Armed Forces
for other than training
purposes.
``(hh) Has a dependent
child or relative and is under
the age of 24.
``(ii) Does not have access
to parental income due to an
unusual circumstance.
``(XVI) If the applicant receives
or has received any of the following
means-tested Federal benefits within
the last two years:
``(aa) The supplemental
security income program under
title XVI of the Social
Security Act (42 U.S.C. 1381 et
seq.).
``(bb) The supplemental
nutrition assistance program
under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et
seq.).
``(cc) The free and reduced
price school lunch program
established under the Richard
B. Russell National School
Lunch Act (42 U.S.C. 1751 et
seq.).
``(dd) The program of block
grants for States for temporary
assistance for needy families
established under part A of
title IV of the Social Security
Act (42 U.S.C. 601 et seq.).
``(ee) The special
supplemental nutrition program
for women, infants, and
children established by section
17 of the Child Nutrition Act
of 1966 (42 U.S.C. 1786).
``(ff) The Medicaid program
under title XIX of the Social
Security Act (42 U.S.C. 1396 et
seq.).
``(gg) Federal housing
assistance programs, including
tenant-based assistance under
section 8(o) of the United
States Housing Act of 1937 (42
U.S.C. 1437f(o)), and public
housing, as defined in section
3(b)(1) of such Act (42 U.S.C.
1437a(b)(1)).
``(hh) Any other means-
tested program determined by
the Secretary to be
appropriate.
``(XVII) If the applicant, or, if
necessary, the parents or spouse of the
applicant, reported receiving tax
exempt payments from an IRA
distribution or from pensions or
annuities on a Federal tax return the
Secretary shall request the applicant,
or, if necessary, the parents or spouse
of the applicant to provide information
as to how much of the IRA distribution
or the pension or annuity disbursement
was a qualified rollover and the
applicant, or, if necessary, the
parents or spouse of the applicant
shall provide such information to the
Secretary for the purpose of the need
analysis.
``(iii) Prohibition against requesting
information more than once.--Any information
requested during the process of creating an
account for completing the web-based free
application under this subsection, shall not be
required a second time for the same award year,
or in a duplicative manner, when completing
such web-based free application.
``(iv) Change in family size.--The
Secretary shall provide a process by which an
applicant shall confirm the accuracy of family
size or update the family size with respect to
such applicant for purposes of determining the
need of such applicant for financial assistance
under this title based on a change in family
size from the tax year data used for such
determination.
``(v) Single question for homeless
status.--The Secretary shall ensure that--
``(I) on the form developed under
this section for which the information
is applicable, there is a single,
easily understood screening question to
identify an applicant who is an
unaccompanied homeless child or youth
(as such term is defined in section 725
of the McKinney-Vento Homeless
Assistance Act) or an unaccompanied
youth who is self-supporting and at
risk of homelessness; and
``(II) such question is distinct
from those relating to an individual
who does not have access to parental
income due to an unusual circumstance.
``(vi) Adjustments.--The Secretary shall
disclose on the FAFSA that the student may, on
a case-by-case basis, qualify for an adjustment
under section 479A to the cost of attendance or
the values of the data items required to
calculate the student aid index for the student
or parent.
``(C) Notification of request for tax return
information.--The Secretary shall advise students and
borrowers who submit an application for Federal student
financial aid under this title (as well as parents and
spouses who sign such an application or request or a
Master Promissory Note on behalf of those students and
borrowers) of the authority of the Secretary to request
that the Internal Revenue Service disclose their tax
return information as described in section 494.
``(D) Authorizations available to the applicant.--
``(i) Authorization to release and transmit
to institution.--An applicant and, if
necessary, the parents or spouse of the
applicant shall provide the Secretary with
authorization to release and transmit to an
institution, as specified by the applicant, in
order for the applicant's eligibility for
Federal financial aid programs to be
determined, the following:
``(I) Information described under
section 6103(l)(13) of the Internal
Revenue Code of 1986.
``(II) All information provided by
the applicant on the application
described by this subsection to
determine the applicant's eligibility
for Federal financial aid under this
title and for the application, award,
and administration of such Federal
financial aid.
``(ii) Authorization to release and
transmit to state and institution.--
``(I) In general.--An applicant
and, if necessary, the parents or
spouse of the applicant may provide the
Secretary with authorization to release
and transmit to the State of residence
of the applicant and to any institution
specified by the applicant, in order
for the applicant's eligibility for
State student financial aid programs or
institution-based student financial aid
programs to be determined, the
following:
``(aa) Information
described under section
6103(l)(13) of the Internal
Revenue Code of 1986.
``(bb) All information
provided by the applicant on
the application described by
this subsection for the
application, award, and
administration of financial aid
by a State or an institution of
higher education.
``(II) Special rule.--An
institution to which an applicant
selects to release and transmit
information under subclause (I) shall
not be disclosed to any other
institution.
``(iii) Authorization to release and
transmit to benefits programs.--An applicant
and, if necessary, the parents or spouse of the
applicant may provide the Secretary with
authorization to release and transmit to means-
tested Federal benefit programs, as defined in
section 473(e), the following:
``(I) Information described under
section 6103(l)(13) of the Internal
Revenue Code of 1986.
``(II) All information provided by
the applicant on the application
described by this subsection to
determine the applicant's eligibility
for the application, award, and
administration of such means-tested
Federal benefits programs.
``(E) Action by the secretary.--Upon receiving--
``(i) an application under this section,
the Secretary shall, as soon as practicable,
perform the necessary functions with the
Commissioner of Internal Revenue to calculate
the applicant's student aid index and scheduled
award for a Federal Pell Grant, if applicable,
assuming full-time enrollment for an academic
year, and note to the applicant the assumptions
relationship to the scheduled award; and
``(ii) an authorization under subparagraph
(D), the Secretary shall, as soon as
practicable, release and transmit the
information described under such subparagraph
to the State of residence of the applicant or
an institution, as specified by the applicant,
in order for the applicant's eligibility for
Federal, State, or institutional student
financial aid programs to be estimated or
determined.
``(3) Information to be supplied by the secretary of
education.--
``(A) In general.--Upon receiving and timely
processing a free application that contains the
information described in paragraph (2), the Secretary
shall provide to the applicant (and the parents of a
dependent student applicant, or spouse of the
independent student applicant, if applicable) the
following information based on full-time attendance for
an academic year:
``(i) The estimated dollar amount of a
Federal Pell Grant scheduled award for which
the applicant is eligible for such award year.
``(ii) Information on other types of
Federal financial aid for which the applicant
may be eligible (including situations in which
the applicant could qualify for 150 percent of
a schedule Federal Pell Grant award and loans
made under this title) and how the applicant
can find additional information regarding such
aid.
``(iii) Information regarding each
institution selected by the applicant in
accordance with paragraph (2)(B)(ii)(X),
including the following:
``(I) The following information, as
collected through the Integrated
Postsecondary Education Data System or
a successor Federal data system as
designated by the Secretary:
``(aa) Net price by income
quintile.
``(bb) Median debt of
students upon completion.
``(cc) Graduation rate.
``(dd) Retention rate.
``(ee) Transfer rate, if
available.
``(II) Institutional default rate,
as calculated under section 435.
``(iv) If the student is eligible for a
student aid index of less than or equal to zero
under section 473 but has not indicated that
they receive Federal means-tested benefits, a
notification of the Federal means-tested
benefits for which they may be eligible.
``(v) Information on education tax credits
described in paragraphs (1) and (2) of section
25A(a) of the Internal Revenue Code of 1986.
``(vi) If the individual identified as a
veteran, or as serving (on the date of the
application) on active duty in the Armed Forces
for other than training purposes, information
on benefits administered by the Department of
Veteran Affairs or Department of Defense,
respectively.
``(vii) If applicable, the applicant's
current outstanding balance of loans under this
title.
``(B) Information provided to the state.--
``(i) In general.--The Secretary shall
provide, with authorization from the applicant
in accordance with paragraph (2)(D)(ii), to a
State agency administering State-based
financial aid and serving the applicant's State
of residence, the information described under
section 6103(l)(13) of the Internal Revenue
Code of 1986 and information described in
paragraph (2)(B) for the application, award,
and administration of grants and other aid
provided directly from the State to be
determined by such State, such information
shall include the list of institutions provided
by the applicant on the application.
``(ii) Use of information.--A State agency
administering State-based financial aid--
``(I) shall use the information
provided under clause (i) solely for
the application, award, and
administration of State-based financial
aid for which the applicant is eligible
and for State agency research that does
not release any individually
identifiable information on any
applicant to promote college
attendance, persistence, and
completion;
``(II) may use identifying
information for student applicants to
determine whether or not a graduating
secondary student has filed the
application in coordination with local
educational agencies or secondary
schools to encourage students to
complete the application; and
``(III) shall be prohibited from
sharing application information with
any other entity without the explicit
written consent of the applicant,
except as provided in subclause (II).
``(iii) Limitation on consent process.--A
State may provide a consent process whereby an
applicant may elect to share the information
described in clause (i) through explicit
written consent to Federal, State, or local
government agencies or tribal organizations to
assist such applicant in applying for and
receiving Federal, State, or local government
assistance, or tribal assistance for any
component of the applicant's cost of attendance
which may include financial assistance or non-
monetary assistance.
``(iv) Prohibition.--Any entity that
receives applicant information under clause
(iii) shall not sell, share, or otherwise use
applicant information other than for the
purposes outlined in clause (iii).
``(C) Information provided to the institution.--
``(i) In general.--The Secretary shall
provide, with authorization from the applicant
in accordance with paragraph (2)(D)(ii), to
each institution selected by the applicant on
the application, the information described
under section 6103(l)(13) of the Internal
Revenue Code of 1986 and information described
in paragraph (2)(B) for the application, award,
and administration of grants and other aid
provided directly from the institution to be
determined by such institution and grants and
other aid provided directly from the State or
Federal Government.
``(ii) Use of information.--An
institution--
``(I) shall use the information
provided to it under clause (i) solely
for the application, award, and
administration of financial aid to the
applicant, and for institutional
research that does not release any
individually identifiable information
on any applicant, to promote college
attendance, persistence and completion;
and
``(II) be prohibited from sharing
such information with any other entity
without the explicit written consent of
the applicant.
``(iii) Limitation on consent process.--An
institution may provide a consent process
whereby an applicant can elect to share the
information described in clause (i) with
explicit written consent to a scholarship
granting organization, including a tribal
organization (defined in section 4 of the
Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5304)), or to
Federal, State, or local government agencies or
tribal organizations to assist the applicant in
applying for and receiving private assistance,
or Federal, State, local government assistance,
or tribal assistance for any component of the
applicant's cost of attendance which may
include financial assistance or non-monetary
assistance.
``(iv) Prohibition.--Any entity that
receives applicant information under clause
(iii) shall not sell, share, or otherwise use
applicant information other than for the
purposes outlined in clause (iii).
``(4) Development of form and information exchange.--Prior
to the design of the free application under this subsection,
the Secretary shall, to the maximum extent practicable, on an
annual basis--
``(A) consult with stakeholders to gather
information about innovations and technology available
to--
``(i) ensure an efficient and effective
process;
``(ii) mitigate unintended consequences;
and
``(iii) determine the best practices for
outreach to students and families during the
transition to the streamlined process for the
determination of Federal financial aid and
Federal Pell Grant eligibility while reducing
the data burden on applicants and families; and
``(B) solicit public comments for the format of the
free application that provides for adequate time to
incorporate feedback prior to development of the
application for the succeeding award year.
``(5) No additional information requests permitted.--In
carrying out this subsection, the Secretary may not require
additional information to be submitted by an applicant (or the
parents or spouse of an applicant) for Federal financial aid
through other requirements or reporting.
``(6) State-run programs.--
``(A) In general.--The Secretary shall conduct
outreach to States in order to research the benefits to
students of States relying solely on the financial data
made available, upon authorization by the applicant, as
a result of an application for aid under this
subsection for determining the eligibility of the
applicant for State provided financial aid.
``(B) Secretarial review.--If a State determines
that there is a need for additional data elements
beyond those provided pursuant to this subsection for
determining the eligibility of an applicant for State
provided financial aid, the State shall forward a list
of those additional data elements determined necessary,
but not provided by virtue of the application under
this subsection, to the Secretary. The Secretary shall
make readily available to the public through its
websites and other means--
``(i) a list of States that do not require
additional financial information separate from
the Free Application for Federal Student Aid
and do not require asset information from
students who qualify for the exemption from
asset reporting under section 479 for the
purposes of awarding State scholarships and
grant aid;
``(ii) a list of States that require asset
information from students who qualify for the
exemption from asset reporting under section
479 for the purposes of awarding State
scholarships and grant aid;
``(iii) a list of States that have
indicated that they require additional
financial information separate from the Free
Application for Federal Student Aid for
purposes of awarding State scholarships and
grant aid; and
``(iv) with the publication of the lists
under this subparagraph, information about
additional resources available to applicants,
including links to such State websites.
``(C) Studies.--The Secretary shall conduct studies
on the effect of States requiring additional
information specified in clauses (ii) and (iii) of
subparagraph (B) on the determination of State
financial aid awards and whether the additional
information required is a barrier to college enrollment
by examining--
``(i) how much financial aid awards would
change if the additional information were not
required;
``(ii) the number of students who started
but did not finish the Free Application for
Federal Student Aid, compared to the baseline
year of 2021; and
``(iii) the number of students who--
``(I) started a Free Application
for Federal Student Aid but did not
receive financial assistance under this
title for the applicable academic year;
and
``(II) if available, did not enroll
in an institution of higher education
in the applicable academic year.
``(7) Institution-run financial aid.--
``(A) In general.--The Secretary shall conduct
outreach to institutions of higher education to
describe the benefits to students of relying solely on
the financial data made available, upon authorization
for release by the applicant, as a result of an
application for aid under this subsection for
determining the eligibility of the applicant for
institutional financial aid. The Secretary shall make
readily available to the public through its websites
and other means--
``(i) a list of institutions that do not
require additional financial information
separate from the Free Application for Federal
Student Aid and do not require asset
information from students who qualify for the
exemption from asset reporting under section
479 for the purpose of awarding institution-run
financial aid;
``(ii) a list of institutions that require
asset information from students who qualify for
the exemption from asset reporting under
section 479 for the purpose of awarding
institution-run financial aid;
``(iii) a list of institutions that require
additional financial information separate from
the Free Application for Federal Student Aid
for the purpose of awarding institution-run
financial aid; and
``(iv) with the publication of the list in
clause (iii), information about additional
resources available to applicants.
``(8) Security of data.--The Secretary shall, in
consultation with the Secretary of the Treasury, take all steps
necessary to--
``(A) safeguard the data required to be transmitted
for the purpose of this section between Federal
agencies and to States and institutions of higher
education;
``(B) secure the transmittal of such data; and
``(C) provide guidance to States and institutions
of higher education regarding their obligation to
ensure the security of the data provided under this
section.
``(9) Report to congress.--
``(A) In general.--Not later than one year after
the date of enactment of the FAFSA Simplification Act
of 2019, the Secretary shall report to the Committee on
Health, Education, Labor, and Pensions of the Senate
and the Committee on Education and Labor of the House
of Representatives on the progress of the Secretary in
carrying out this subsection, including planning and
stakeholder consultation. Such report shall include--
``(i) benchmarks for implementation;
``(ii) entities and organization to which
the Secretary reached out for consultation;
``(iii) system requirements for such
implementation and how they will be addressed;
``(iv) any areas of concern and potential
problem issues uncovered that may hamper such
implementation; and
``(v) solutions determined to address such
issues.
``(B) Quarterly updates.--The Secretary shall
provide updates to the Committees described in
subparagraph (A)--
``(i) as to the progress and planning
described in subparagraph (A) prior to
implementation of the Free Application for
Federal Student Aid under this subsection not
less often than quarterly; and
``(ii) at least 6 months and 1 year post
implementation of the Free Application for
Federal Student Aid.
``(b) Adjustments and Improvements.--
``(1) In general.--The Secretary shall disclose in a
consumer-tested format, upon completion of the Free Application
for Federal Student Aid under this section, that the student
may, on a case-by-case basis, qualify for an adjustment under
section 479A to the cost of attendance or the values of the
data items required to calculate the Federal Pell Grant or the
need analysis for the student or parent. Such disclosure shall
specify--
``(A) examples of the special circumstances under
which a student or family member may qualify for such
adjustment or determination of independence; and
``(B) additional information regarding the steps a
student or family member may take in order to seek an
adjustment under section 479A.
``(2) Consumer testing.--
``(A) In general.--The development of the Free
Application for Federal Student Aid under this section
shall be consumer tested with prospective first-
generation college students and families as well as
low-income individuals and families.
``(B) Updates.--For award year 2021 and each fourth
succeeding award year thereafter, the design of the
Free Application for Federal Student Aid shall be
updated based on additional consumer testing with the
populations described in subparagraph (A) in order to
improve communication.
``(3) Languages for fafsa.--The Secretary, in conjunction
with the Director of the Census Bureau, shall determine the
most common languages spoken at home in the United States and
shall develop versions of the Free Application for Federal
Student Aid form in each of those languages.
``(4) Reapplication in a succeeding academic year.--In
order to streamline applicant's experience applying for
financial aid, the Secretary shall allow an applicant who
electronically applies for financial assistance under this
title for an academic year subsequent to an academic year for
which such applicant applied for financial assistance under
this title to automatically electronically import all of the
applicant's (including parents, guardians, or spouses, as
applicable) identifying, demographic, and school data from the
previous application and to update such information to reflect
any circumstances that have changed.
``(5) Technology accessibility.--The Secretary shall make
the application under this section available through the
prevalent technology. Such technology shall, at a minimum,
enable applicants to--
``(A) save data; and
``(B) submit the application under this title to
the Secretary through such technology.
``(6) Verification burden.--The Secretary shall--
``(A) to the maximum extent practicable, streamline
and simplify the process of verification for applicants
for Federal financial aid;
``(B) in establishing policies and procedures to
verify applicants' eligibility for Federal financial
aid, consider--
``(i) the burden placed on low-income
applicants;
``(ii) the risk to low-income applicants of
failing to enroll or complete from being
selected for verification;
``(iii) the effectiveness of the policies
and procedures in safeguarding against a net
cost to taxpayers; and
``(iv) the reasons for the source of any
improper payments; and
``(C) issue a report not less often than annually
sharing the percentage of applicants subject to
verification, whether the applicants ultimately
received Federal financial aid disbursements, and
whether the student aid index changed enough to affect
the applicant's award of any Federal financial aid
under this title.
``(c) Data and Information.--
``(1) In general.--The Secretary shall publish data in a
publicly accessible manner--
``(A) annually on the total number of Free
Applications for Federal Student Aid submitted by
application cycle, disaggregated by demographic
characteristics, type of institution or institutions of
higher education to which the applicant applied, the
applicant's State of legal residence, and high school
and public school district;
``(B) quarterly on the total number of Free
Applications for Federal Student Aid submitted by
application cycle, disaggregated by type of institution
or institutions of higher education to which the
applicant applied, the applicant's State of legal
residence, and high school and public school district;
``(C) weekly on the total number of Free
Applications for Federal Student Aid submitted,
disaggregated by high school and public school
district; and
``(D) annually on the number of individuals who
apply for Federal financial aid pursuant to this
section who indicated they are a homeless child or
youth (as defined in section 725 of the McKinney-Vento
Homeless Assistance Act), an unaccompanied youth, or a
foster care youth.
``(2) Contents.--The data described in paragraph (1) with
respect to homeless children and youth shall include, at a
minimum, for each application cycle--
``(A) the total number of all applicants who were
determined to be individuals described in section
480(d)(1)(H); and
``(B) the number of applicants described in
subparagraph (A), disaggregated--
``(i) by State; and
``(ii) by the sources of determination as
described in clauses (i) through (iv) of
section 480(d)(1)(H).
``(3) Data sharing.--The Secretary may enter into data
sharing agreements with the appropriate Federal or State
agencies to conduct outreach regarding, and connect applicants
directly with, the means-tested Federal benefit programs
described in subsection (a)(2)(B)(ii)(XVI) for which the
applicants may be eligible.
``(d) Ensuring Form Usability.--
``(1) Signature.--Notwithstanding any other provision of
this title, the Secretary may permit the Free Application for
Federal Student Aid to be submitted without a signature, if a
signature is subsequently submitted by the applicant, or if the
applicant uses an access device provided by the Secretary.
``(2) Free preparation authorized.--Notwithstanding any
provision of this title, an applicant may use a preparer for
consultative or preparation services for the completion of the
Free Application for Federal Student Aid without charging a fee
to the applicant if the preparer--
``(A) includes, at the time the application is
submitted to the Department, the name, address or
employer's address, social security number or employer
identification number, and organizational affiliation
of the preparer on the applicant's form;
``(B) is subject to the same penalties as an
applicant for purposely giving false or misleading
information in the application;
``(C) clearly informs each individual upon initial
contact, that the Free Application for Federal Student
Aid is a free form that may be completed without
professional assistance; and
``(D) does not produce, use, or disseminate any
other form for the purpose of applying for Federal
financial aid other than the Free Application for
Federal Student Aid form developed by the Secretary
under this section.
``(3) Charges to students and parents for use of forms
prohibited.--The need and eligibility of a student for
financial assistance under this title may be determined only by
using the Free Application for Federal Student Aid developed by
the Secretary under this section. Such application shall be
produced, distributed, and processed by the Secretary, and no
parent or student shall be charged a fee by the Secretary, a
contractor, a third-party servicer or private software
provider, or any other public or private entity for the
collection, processing, or delivery of Federal financial aid
through the use of such application. No data collected on a
form for which a fee is charged shall be used to complete the
Free Application for Federal Student Aid prescribed under this
section, except that a Federal or State income tax form
prepared by a paid income tax preparer or preparer service for
the primary purpose of filing a Federal or State income tax
return may be used to complete the Free Application for Federal
Student Aid prescribed under this section.
``(4) Application processing cycle.--The Secretary shall
enable students to submit a Free Application for Federal
Student Aid developed under this section and initiate the
processing of such application, not later than January 1 of the
student's planned year of enrollment, to the maximum extent
practicable, on or around October 1 prior to the student's
planned year of enrollment.
``(5) Early estimates.--The Secretary shall maintain an
electronic method for applicants to enter income and family
size information to calculate a non-binding estimate of the
applicant's Federal financial aid available under this title
and shall place such calculator on a prominent location at the
beginning of the Free Application for Federal Student Aid.''.
(n) Student Eligibility.--Section 484 of the Higher Education Act
of 1965 (20 U.S.C. 1091) is amended--
(1) by striking subsection (q) and inserting the following:
``(q) Use of Income Data With IRS.--The Secretary, in cooperation
with the Secretary of the Treasury, shall fulfill the data transfer
requirements under section 6103(l)(13) of the Internal Revenue Code of
1986.'';
(2) by striking subsection (r);
(3) by redesignating subsections (s) and (t) as subsections
(r) and (s), respectively; and
(4) by adding at the end the following:
``(t) Exception to Required Registration With the Selective Service
System.--Notwithstanding section 12(f) of the Military Selective
Service Act (50 U.S.C. 3811(f)), an individual shall not be ineligible
for assistance or a benefit provided under this title if the individual
is required under section 3 of such Act (50 U.S.C. 3802) to present
himself for and submit to registration under such section and fails to
do so in accordance with any proclamation issued under such section, or
in accordance with any rule or regulation issued under such section.''.
(o) Institutional and Financial Assistance Information for
Students.--Section 485 of the Higher Education Act of 1965 (20 U.S.C.
1092) is amended by striking subsection (k).
(p) Early Awareness of Financial Aid Eligibility.--Section 485E of
the Higher Education Act of 1965 (20 U.S.C. 1092f) is amended to read
as follows:
``SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
``(a) In General.--The Secretary shall implement early outreach
activities in order to provide prospective students and families with
early information about financial aid and estimates of such prospective
students' eligibility for financial aid. Such early outreach activities
shall include the activities described in subsections (b), (c), and
(d).
``(b) Pell Grant Early Awareness.--
``(1) In general.--The Secretary shall produce a consumer-
tested method of estimating student eligibility for Federal
Pell Grants outlined in section 401(b) utilizing the variables
of family size and adjusted gross income, and presented in
electronic format. There shall be a method for students to
indicate whether they are, or will be in--
``(A) a single-parent household;
``(B) a household with two parents; or
``(C) a household with no children or dependents.
``(2) Consumer testing.--
``(A) In general.--The method of estimating
eligibility described in paragraph (1) shall be
consumer tested with prospective first-generation
students and families as well as low-income individuals
and families.
``(B) Updates.--For award year 2022-2023 and each
fourth succeeding award year thereafter, the design of
the method of estimating eligibility shall be updated
based on additional consumer testing with the
populations described in subparagraph (A).
``(3) Distribution.--The method of estimating eligibility
described in paragraph (1) shall be--
``(A) made publicly and prominently available on
the Department of Education website; and
``(B) actively shared by the Secretary with--
``(i) institutions of higher education
participating in programs under this title;
``(ii) all middle and secondary schools
eligible for funds under part A of title I of
the Elementary and Secondary Education Act of
1965; and
``(iii) local educational agencies and
middle schools and secondary schools that serve
students not less than 25 percent of whom meet
a measure of poverty as described in section
1113(a)(5) of the Elementary and Secondary
Education Act of 1965.
``(4) Electronic estimator.--In accordance with subsection
(d)(5) of section 483, the Secretary shall maintain an
electronic method for applicants to enter income and family
size information to calculate a non-binding estimate of the
applicant's Federal financial aid available under this title
and shall place such calculator on a prominent location on the
FAFSA website.
``(c) Early Awareness Plans.--The Secretary shall establish and
implement early awareness plans to provide early information about the
availability of Federal financial aid and estimates of prospective
students' eligibility for Federal financial aid as well as to promote
the attainment of postsecondary education specifically among
prospective first-generation students and families as well as low-
income individuals and families, as follows:
``(1) Awareness plans for low-income children.--
``(A) In general.--The Secretary shall develop
plans to disseminate information about the availability
of Federal financial aid under this title, in addition
to and in coordination with the distribution of the
method of estimating eligibility under subsection (b),
to--
``(i) all middle schools and secondary
schools eligible for funds under part A of
title I of the Elementary and Secondary
Education Act of 1965;
``(ii) local educational agencies and
middle schools and high schools that serve
students not less than 25 percent of whom meet
a measure of poverty as described in section
1113(a)(5) of the Elementary and Secondary
Education Act; and
``(iii) households receiving assistance
under the supplemental nutrition assistance
program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
``(B) Reporting and updates.--The Secretary shall
post the information about the plans under subparagraph
(A) and associated goals publicly on the Department of
Education website. On an annual basis, the Secretary
shall report qualitative and quantitative outcomes
regarding the implementation of the plans under
subparagraph (A). The Secretary shall review and update
such plans not less often than every 4 award years with
the goal of progressively increasing the impact of the
activities under this paragraph.
``(C) Partnership.--The Secretary may partner with
States, State systems of higher education, institutions
of higher education, or college access organizations to
carry out this paragraph.
``(2) Interagency coordination plans.--
``(A) In general.--The Secretary shall develop
interagency coordination plans in order to inform more
prospective students and families, including low-income
individuals or families, about the availability of
Federal financial aid under this title through
participation in existing Federal programs or tax
benefits that serve low-income individuals or families,
in coordination with the following Secretaries:
``(i) The Secretary of the Treasury.
``(ii) The Secretary of Labor.
``(iii) The Secretary of Health and Human
Services.
``(iv) The Secretary of Agriculture.
``(v) The Secretary of Housing and Urban
Development.
``(vi) The Secretary of Commerce.
``(vii) The Secretary of Veterans Affairs.
``(B) Process, activities, and goals.--Each
interagency coordination plan under subparagraph (A)
shall--
``(i) establish a process to identify
opportunities in which low-income individuals
and families could be informed of the
availability of Federal financial aid under
this title through access to other Federal
programs that serve low-income individuals and
families;
``(ii) establish a process to identify
methods to effectively inform low-income
individuals and families of the availability of
Federal financial aid for postsecondary
education under this title;
``(iii) develop early awareness activities
that align with the opportunities and methods
identified under clauses (ii) and (iii); and
``(iv) establish goals regarding the
effects of the activities to be implemented
under clause (iii).
``(C) Reporting and updates.--The Secretary shall
post the information about the interagency coordination
plans under subparagraph (B) and associated goals
publicly on the Department of Education website. On not
less often than a quadrennial basis, the Secretary
shall publicly report qualitative and quantitative
outcomes regarding the implementation of the plans on
the Department of Education website. The Secretary
shall review and update the plans not less often than
upon each change in Secretarial leadership with an
agency that is party to a plan. Updates to the plans
shall have the goal of progressively increasing the
impact of the activities under this paragraph by
increasing the number of low-income applicants for, and
recipients of, Federal financial aid.
``(3) Nationwide participation in early awareness plans.--
``(A) In general.--The Secretary shall solicit
voluntary public commitments from entities, such as
States, State systems of higher education, institutions
of higher education, and other interested
organizations, to carry out early awareness plans,
which shall include goals, to--
``(i) notify prospective and existing
students who are low-income individuals and
families about their eligibility for Federal
aid under this title, as well as State-based
financial aid, if applicable, on an annual
basis;
``(ii) increase the number of prospective
and current students who are low-income
individuals and families filing the Free
Application for Federal Student Aid; and
``(iii) increase the number of prospective
and current students who are low-income
individuals and families enrolling in
postsecondary education.
``(B) Reporting and updates.--Each entity that
makes a voluntary public commitment to carry out an
early awareness plan may submit quantitative and
qualitative data based on the entity's progress toward
the goals of the plan annually prior to a date selected
by the Secretary.
``(C) Early awareness champions.--Based on data
submitted by entities, the Secretary shall select and
designate entities submitting public commitments,
plans, and goals, as Early Awareness Champions on an
annual basis. Those entities designated as Early
Awareness Champions shall provide one or more case
studies regarding the activities the entity undertook
under this paragraph which shall be made public by the
Secretary on the Department of Education website to
promote the spread of best practices.
``(d) Public Awareness Campaign.--
``(1) In general.--The Secretary shall develop and
implement a public awareness campaign designed using current
and relevant independent research regarding strategies and
media platforms found to be most effective in communicating
with low-income populations in order to increase national
awareness regarding the availability of Federal Pell Grants and
financial aid under this title.
``(2) Coordination.--The public awareness campaign
described in paragraph (1) shall leverage the activities in
subsections (b) and (c) to highlight eligibility among low-
income populations. In developing and implementing the
campaign, the Secretary may work in coordination with States,
institutions of higher education, early intervention and
outreach programs under this title, other Federal agencies,
organizations involved in college access and student financial
aid, secondary schools, local educational agencies, public
libraries, community centers, businesses, employers, workforce
investment boards, and organizations that provide services to
individuals that are or were homeless, in foster care, or are
disconnected youth.
``(3) Reporting.--The Secretary shall report on the success
of the public awareness campaign described in paragraph (1)
annually regarding the extent to which the public and target
populations were reached using data commonly used to evaluate
advertising and outreach campaigns and data regarding whether
the campaign produced any increase in applicants for Federal
aid under this title publicly on the Department of Education
website.''.
SEC. 3. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; APPLICATIONS.
(a) Federal Pell Grants.--Beginning on the effective date described
in subsection (b), section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) is amended to read as follows:
``SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS;
APPLICATIONS.
``(a) Purpose; Definitions.--
``(1) Purpose.--The purpose of this subpart is to provide a
Federal Pell Grant to low-income students.
``(2) Definitions.--In this section--
``(A) the term `adjusted gross income' means--
``(i) in the case of a dependent student,
the adjusted gross income (as defined in
section 62 of the Internal Revenue Code of
1986) of the student's parents in the second
tax year preceding the academic year; and
``(ii) in the case of an independent
student, the adjusted gross income (as defined
in section 62 of the Internal Revenue Code of
1986) of the student (and the student's spouse,
if applicable) in the second tax year preceding
the academic year;
``(B) the term `family size' has the meaning given
the term in section 480(l);
``(C) the term `poverty line' means the poverty
line (as determined under the poverty guidelines
updated periodically in the Federal Register by the
Department of Health and Human Services under the
authority of section 673(2) of the Community Services
Block Grant Act (42 U.S.C. 9902(2))) applicable to the
student's family size and applicable to the second tax
year preceding the academic year;
``(D) the term `single parent' means--
``(i) a parent of a dependent student who
was a head of household (as defined in section
2(b) of the Internal Revenue Code of 1986) or a
surviving spouse (as defined in section 2(a) of
the Internal Revenue Code of 1986) or was an
eligible individual for purposes of the credit
under section 32 of such Code, in the second
tax year preceding the academic year; or
``(ii) an independent student who was a
head of household (as defined in section 2(b)
of the Internal Revenue Code of 1986) or a
surviving spouse (as defined in section 2(a) of
the Internal Revenue Code of 1986) or was an
eligible individual for purposes of the credit
under section 32 of such Code, in the second
tax year preceding the academic year;
``(E) the term `total maximum Federal Pell Grant'
means the total maximum Federal Pell Grant award per
student for any academic year described under paragraph
(5); and
``(F) the term `minimum Federal Pell Grant' means
the minimum amount of a Federal Pell Grant that shall
be awarded to a student eligible under this subpart for
any academic year in which that student is attending
full time, which shall be equal to 10 percent of the
total maximum Federal Pell Grant for such academic
year.
``(b) Amount and Distribution of Grants.--
``(1) Determination of amount of a federal pell grant.--
Subject to paragraphs (2) and (3), the amount of a Federal Pell
Grant for a student eligible under this subpart shall be
determined in accordance with the following:
``(A) A student eligible under this subpart shall
be eligible for a total maximum Federal Pell Grant for
an academic year in which the student is enrolled in an
eligible program full time--
``(i) if the student or, in the case of a
dependent student, the dependent student's
parent, is not required to file a Federal
income tax return in the second year preceding
the academic year;
``(ii) if the student or, in the case of a
dependent student, the dependent student's
parent, is a single parent, if the adjusted
gross income is equal to or less than 210
percent of the poverty line; or
``(iii) if the student or, in the case of a
dependent student, the dependent student's
parent, is not a single parent, if the adjusted
gross income is equal to or less than 160
percent of the poverty line.
``(B) A student eligible under this subpart who is
not eligible for a total maximum Federal Pell Grant
under subparagraph (A) for an academic year, shall be
eligible for a Federal Pell Grant for an academic year
in which the student is enrolled in an eligible program
full time in an amount that is not more than the amount
determined in accordance with the following:
``(i) If the student or, in the case of a
dependent student, the dependent student's
parent, is a single parent and the adjusted
gross income is greater than 210 percent of the
poverty line and is less than 310 percent of
the poverty line, the amount shall be equal to
the greater of--
``(I) the minimum Federal Pell
Grant for the academic year; and
``(II) the total maximum Federal
Pell Grant for the academic year, minus
the product of--
``(aa) the adjusted gross
income, less an amount equal to
210 percent of the poverty
line; and
``(bb) the total maximum
Federal Pell Grant for the
academic year, divided by an
amount equal to 100 percent of
the poverty line.
``(ii) If the student or, in the case of a
dependent student, the dependent student's
parent, is not a single parent and the adjusted
gross income is greater than 160 percent of the
poverty line and is less than 260 percent of
the poverty line, the amount shall be equal to
the greater of--
``(I) the minimum Federal Pell
Grant for the academic year; and
``(II) the total maximum Federal
Pell Grant for the academic year, minus
the product of--
``(aa) the adjusted gross
income, less an amount equal to
160 percent of the poverty
line; and
``(bb) the total maximum
Federal Pell Grant for the
academic year, divided by an
amount equal to 100 percent of
the poverty line.
``(2) Less than full-time enrollment.--In any case where a
student is enrolled in an eligible program of an institution of
higher education on less than a full-time basis (including a
student who attends an institution of higher education on less
than a half-time basis) during any academic year, the amount of
the Federal Pell Grant to which that student is entitled shall
be reduced in direct proportion to the degree to which that
student is not so enrolled on a full-time basis, rounded to the
nearest whole percentage point, as provided in a schedule of
reductions published by the Secretary computed in accordance
with this subpart. Such schedule of reductions shall be
published in the Federal Register in accordance with section
482 of this Act. Such reduced Federal Pell Grant for a student
enrolled on a less than full-time basis shall also apply
proportionally to students who are otherwise eligible to
receive the minimum Federal Pell Grant, if enrolled full-time.
``(3) Award may not exceed cost of attendance.--No Federal
Pell Grant under this subpart shall exceed the cost of
attendance (as defined in section 472) at the institution at
which that student is in attendance. If, with respect to any
student, it is determined that the amount of a Federal Pell
Grant for that student exceeds the cost of attendance for that
year, the amount of the Federal Pell Grant shall be reduced
until the Federal Pell Grant does not exceed the cost of
attendance at such institution.
``(4) Study abroad.--Notwithstanding any other provision of
this subpart, the Secretary shall allow the amount of the
Federal Pell Grant to be exceeded for students participating in
a program of study abroad approved for credit by the
institution at which the student is enrolled when the
reasonable costs of such program are greater than the cost of
attendance at the student's home institution, except that the
amount of such Federal Pell Grant in any fiscal year shall not
exceed the maximum amount of a Federal Pell Grant for which a
student is eligible under paragraph (1) or (2) during such
award year. If the preceding sentence applies, the financial
aid administrator at the home institution may use the cost of
the study abroad program, rather than the home institution's
cost, to determine the cost of attendance of the student.
``(5) Total maximum federal pell grant.--
``(A) In general.--For award year 2021-2022, and
each subsequent award year, the total maximum Federal
Pell Grant award per student shall be equal to the sum
of--
``(i) $1,060; and
``(ii) the amount specified as the maximum
Federal Pell Grant in the last enacted
appropriation Act applicable to that award
year.
``(B) Rounding.--The total maximum Federal Pell
Grant for any award year shall be rounded to the
nearest $5.
``(6) Funds by fiscal year.--To carry out this section for
each of fiscal years 2021 through 2030--
``(A) there are authorized to be appropriated and
are appropriated (in addition to any other amounts
appropriated to carry out this section and out of any
money in the Treasury not otherwise appropriated) such
sums as are necessary to carry out paragraph (5)(A)(i);
and
``(B) such sums as may be necessary are authorized
to be appropriated to carry out paragraph (5)(A)(ii).
``(7) Appropriation.--
``(A) In general.--In addition to any funds
appropriated under paragraph (6) and any funds made
available for this section under any appropriations
Act, there are authorized to be appropriated, and there
are appropriated (out of any money in the Treasury not
otherwise appropriated) to carry out this section,
$1,145,000,000 for fiscal year 2021 and each subsequent
award year.
``(B) No effect on previous appropriations.--The
amendments made to this section by the FAFSA
Simplification Act of 2019 shall not--
``(i) increase or decrease the amounts that
have been appropriated or are available to
carry out this section for fiscal year 2017,
2018, 2019, or 2020 as of the day before the
effective date of such Act; or
``(ii) extend the period of availability
for obligation that applied to any such amount,
as of the day before such effective date.
``(8) Method of distribution.--
``(A) In general.--For each fiscal year through
fiscal year 2030, the Secretary shall pay to each
eligible institution such sums as may be necessary to
pay each eligible student for each academic year during
which that student is in attendance at an institution
of higher education as an undergraduate, a Federal Pell
Grant in the amount for which that student is eligible.
``(B) Alternative disbursement.--Nothing in this
section shall be interpreted to prohibit the Secretary
from paying directly to students, in advance of the
beginning of the academic term, an amount for which
they are eligible, in the cases where an eligible
institution does not participate in the disbursement
system under subparagraph (A).
``(9) Additional payment periods in same award year.--
``(A) Effective in the 2017-2018 award year and
thereafter, the Secretary shall award an eligible
student not more than one and one-half Federal Pell
Grants during a single award year to permit such
student to work toward completion of an eligible
program if, during that single award year, the student
has received a Federal Pell Grant for an award year and
is enrolled in an eligible program for one or more
additional payment periods during the same award year
that are not otherwise fully covered by the student's
Federal Pell Grant.
``(B) In the case of a student receiving more than
one Federal Pell Grant in a single award year under
subparagraph (A), the total amount of Federal Pell
Grants awarded to such student for the award year may
exceed the total maximum Federal Pell Grant available
for an award year.
``(C) Any period of study covered by a Federal Pell
Grant awarded under subparagraph (A) shall be included
in determining a student's duration limit under
subsection (d)(5).
``(D) In any case where an eligible student is
receiving a Federal Pell Grant for a payment period
that spans 2 award years, the Secretary shall allow the
eligible institution in which the student is enrolled
to determine the award year to which the additional
period shall be assigned, as it determines is most
beneficial to students.
``(c) Special Rule.--
``(1) In general.--Notwithstanding any other provision of
this title, the total maximum Federal Pell Grant shall be
provided to a student described in paragraph (2).
``(2) Applicability.--Paragraph (1) shall apply to any
dependent or independent student--
``(A) who is eligible to receive a Federal Pell
Grant for the award year for which the determination is
made;
``(B) whose parent or guardian was--
``(i) an individual who, on or after
September 11, 2001, died in the line of duty
while serving on active duty as a member of the
Armed Forces; or
``(ii) actively serving as a public safety
officer and died in the line of duty while
performing as a public safety officer; and
``(C) who is less than 33 years of age.
``(3) Information.--Notwithstanding any other provision of
law, the Secretary shall establish the necessary data-sharing
agreements with the Secretary of Veterans Affairs and the
Secretary of Defense, as applicable, to provide the information
necessary to determine which students meet the requirements of
paragraph (2).
``(4) Treatment of pell amount.--Notwithstanding section
1212 of the Omnibus Crime Control and Safe Streets Act of 1968
(34 U.S.C. 10302), in the case of a student who receives an
increased Federal Pell Grant amount under this section, the
total amount of such Federal Pell Grant, including the increase
under this subsection, shall not be considered in calculating
that student's educational assistance benefits under the Public
Safety Officers' Benefits program under subpart 2 of part L of
title I of such Act.
``(5) Definition of public safety officer.--For purposes of
this subsection, the term `public safety officer' means--
``(A) a public safety officer, as defined in
section 1204 of title I of the Omnibus Crime Control
and Safe Streets Act of 1968 (34 U.S.C. 10284); or
``(B) a fire police officer, defined as an
individual who--
``(i) is serving in accordance with State
or local law as an officially recognized or
designated member of a legally organized public
safety agency;
``(ii) is not a law enforcement officer, a
firefighter, a chaplain, or a member of a
rescue squad or ambulance crew; and
``(iii) provides scene security or directs
traffic--
``(I) in response to any fire
drill, fire call, or other fire,
rescue, or police emergency; or
``(II) at a planned special event.
``(d) Period of Eligibility for Grants.--
``(1) In general.--The period during which a student may
receive Federal Pell Grants shall be the period required for
the completion of the first undergraduate baccalaureate course
of study being pursued by that student at the institution at
which the student is in attendance, except that any period
during which the student is enrolled in a noncredit or remedial
course of study, as described in paragraph (2), shall not be
counted for the purpose of this paragraph.
``(2) Noncredit or remedial courses; study abroad.--Nothing
in this section shall exclude from eligibility courses of study
which are noncredit or remedial in nature (including courses in
English language instruction) which are determined by the
institution to be necessary to help the student be prepared for
the pursuit of a first undergraduate baccalaureate degree or
certificate or, in the case of courses in English language
instruction, to be necessary to enable the student to utilize
already existing knowledge, training, or skills. Nothing in
this section shall exclude from eligibility programs of study
abroad that are approved for credit by the home institution at
which the student is enrolled.
``(3) No concurrent payments.--No student is entitled to
receive Pell Grant payments concurrently from more than one
institution or from the Secretary and an institution.
``(4) Postbaccalaureate program.--Notwithstanding paragraph
(1), the Secretary may allow, on a case-by-case basis, a
student to receive a Federal Pell Grant if the student--
``(A) is carrying at least one-half the normal
full-time work load for the course of study the student
is pursuing, as determined by the institution of higher
education; and
``(B) is enrolled or accepted for enrollment in a
postbaccalaureate program that does not lead to a
graduate degree, and in courses required by a State in
order for the student to receive a professional
certification or licensing credential that is required
for employment as a teacher in an elementary school or
secondary school in that State,
except that this paragraph shall not apply to a student who is
enrolled in an institution of higher education that offers a
baccalaureate degree in education.
``(5) Maximum period.--
``(A) In general.--Except as provided in
subparagraph (B), the period during which a student may
receive Federal Pell Grants shall not exceed 12
semesters, or the equivalent of 12 semesters, as
determined by the Secretary by regulation. Such
regulations shall provide, with respect to a student
who received a Federal Pell Grant for a term but was
enrolled at a fraction of full time, that only that
same fraction of such semester or equivalent shall
count towards such duration limits.
``(B) Exception.--
``(i) In general.--Any Federal Pell Grant
that a student received during a period
described in subclause (I) or (II) of clause
(ii) shall not count towards the student's
duration limits under this paragraph.
``(ii) Applicable periods.--Clause (i)
shall apply with respect to any Federal Pell
Grant awarded to a student to enroll in an
eligible program at an institution--
``(I) during a period of a
student's attendance at an
institution--
``(aa) at which the student
was unable to complete a course
of study due to the closing of
the institution; or
``(bb) for which the
student was falsely certified
as eligible for Federal aid
under this title; or
``(II) during a period--
``(aa) for which the
student received a loan under
this title; and
``(bb) for which the loan
described in item (aa) is
discharged under--
``(AA) section
437(c)(1) or section
464(g)(1); or
``(BB) section
432(a)(6).
``(e) Applications for Grants.--
``(1) Deadlines.--The Secretary shall from time to time set
dates by which students shall file the Free Application for
Federal Student Aid under this subpart.
``(2) Application.--Each student desiring a Federal Pell
Grant for any year shall file the Free Application for Federal
Student Aid containing the information necessary to enable the
Secretary to carry out the functions and responsibilities of
this subpart.
``(f) Distribution of Grants to Students.--Payments under this
section shall be made in accordance with regulations promulgated by the
Secretary for such purpose, in such manner as will best accomplish the
purpose of this section. Any disbursement allowed to be made by
crediting the student's account shall be limited to tuition and fees,
and food and housing if that food and housing is institutionally owned
or operated. The student may elect to have the institution provide
other such goods and services by crediting the student's account.
``(g) Insufficient Appropriations.--If, for any fiscal year, the
funds appropriated for payments under this subpart are insufficient to
satisfy fully all entitlements, as calculated under subsection (b) (but
at the maximum grant level specified in such appropriation), the
Secretary shall promptly transmit a notice of such insufficiency to
each House of the Congress, and identify in such notice the additional
amount that would be required to be appropriated to satisfy fully all
entitlements (as so calculated at such maximum grant level).
``(h) Use of Excess Funds.--
``(1) 15 percent or less.--If, at the end of a fiscal year,
the funds available for making payments under this subpart
exceed the amount necessary to make the payments required under
this subpart to eligible students by 15 percent or less, then
all of the excess funds shall remain available for making
payments under this subpart during the next succeeding fiscal
year.
``(2) More than 15 percent.--If, at the end of a fiscal
year, the funds available for making payments under this
subpart exceed the amount necessary to make the payments
required under this subpart to eligible students by more than
15 percent, then all of such funds shall remain available for
making such payments but payments may be made under this
paragraph only with respect to entitlements for that fiscal
year.
``(i) Treatment of Institutions and Students Under Other Laws.--Any
institution of higher education which enters into an agreement with the
Secretary to disburse to students attending that institution the
amounts those students are eligible to receive under this subpart shall
not be deemed, by virtue of such agreement, a contractor maintaining a
system of records to accomplish a function of the Secretary. Recipients
of Pell Grants shall not be considered to be individual grantees for
purposes of subtitle D of title V of Public Law 100-690.
``(j) Institutional Ineligibility Based on Default Rates.--
``(1) In general.--No institution of higher education shall
be an eligible institution for purposes of this subpart if such
institution of higher education is ineligible to participate in
a loan program under part B or D as a result of a final default
rate determination made by the Secretary under part B or D
after the final publication of cohort default rates for fiscal
year 1996 or a succeeding fiscal year.
``(2) Sanctions subject to appeal opportunity.--No
institution may be subject to the terms of this subsection
unless the institution has had the opportunity to appeal the
institution's default rate determination under regulations
issued by the Secretary for the loan program authorized under
part B or D, as applicable. This subsection shall not apply to
an institution that was not participating in the loan program
authorized under part B or D on October 7, 1998, unless the
institution subsequently participates in the loan programs.''.
(b) Effective Date.--This section, and the amendments made by this
section, shall take effect on July 1, 2021.
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