[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4247 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4247
To simplify loan repayment for Federal student loans under title IV of
the Higher Education Act of 1965, to make it easier to apply for
Federal aid and making that aid predictable, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 21, 2020
Mr. Alexander introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To simplify loan repayment for Federal student loans under title IV of
the Higher Education Act of 1965, to make it easier to apply for
Federal aid and making that aid predictable, 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 ``Student Loan Repayment and FAFSA
Simplification Act''.
SEC. 2. SIMPLIFYING STUDENT LOAN REPAYMENT.
(a) In General.--Section 455 of the Higher Education Act of 1965
(20 U.S.C. 1087e) is amended--
(1) in subsection (d)(1)--
(A) in subparagraph (D), by striking ``and'' after
the semicolon;
(B) in subparagraph (E), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(F) notwithstanding any other provision of law,
in the case of a loan described in subsection (a) that
enters repayment on or after October 1, 2020, or for
which a borrower seeks to change to a different
repayment plan on or after October 1, 2020, only a
repayment plan described in subsection (r).''; and
(2) by adding at the end the following:
``(r) Repayment.--
``(1) In general.--For loans described under subsection (a)
that enter repayment on or after October 1, 2020, or for which
the borrower seeks to change to a different repayment plan on
or after October 1, 2020, only the following repayment options
shall be made available:
``(A) A standard repayment plan, with a fixed
annual repayment amount paid over a fixed period of
time, not to exceed 10 years.
``(B) An income determined repayment plan, with an
annual repayment amount in the amount determined in
accordance with paragraph (2).
``(2) Income determined repayment plans.--
``(A) In general.--An income determined repayment
plan under paragraph (1)(B) shall require a borrower to
pay an amount equal to 10 percent of the result
obtained by calculating, on at least an annual basis,
the amount by which--
``(i) the borrower's, and the borrower's
spouse's (if applicable), adjusted gross
income; exceeds
``(ii) 150 percent of the poverty line
applicable to the borrower's family size as
determined under section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2)).
``(B) Exceptions.--
``(i) Reduction for certain borrowers.--For
a borrower, and the borrower's spouse (if
applicable), whose adjusted gross income
exceeds 800 percent of the poverty line
applicable to the borrower's family size as
determined under section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2)), the percentage amount calculated
under subparagraph (A)(ii) shall decrease by 5
percent for each percentage point that the
borrower's adjusted gross income exceeds 800
percent.
``(ii) Unavailability to certain
borrowers.--The plan described in paragraph
(1)(B) shall not be available to the borrower
of a Federal Direct PLUS Loan made on behalf of
a dependent student or a Federal Direct
Consolidation Loan, if proceeds of such loan
were used to discharge the liability on such
Federal Direct PLUS Loan.
``(C) Repayment period.--The amount of time a
borrower is permitted to repay such loans under
paragraph (1)(B) may exceed 10 years.
``(D) Loan forgiveness.--
``(i) In general.--The Secretary shall
repay or cancel any outstanding balance of
principal and interest due on any loan repaid
under the repayment plan described under
paragraph (1)(B)--
``(I) for any undergraduate
borrower who has made payments under
such plan for 20 years; or
``(II) for any graduate borrower
who has made payments under such plan
for 25 years.
``(ii) Limitation.--Any period of time in
which a borrower is in delinquency or default
shall not count toward the repayment or
cancellation described in clause (i).
``(3) Monthly payments.--The Secretary shall determine the
borrower's monthly payment obligation to satisfy the payment
amount determined in accordance with subparagraphs (A) or (B)
of paragraph (1).
``(4) Borrower choice.--A borrower who is repaying a loan
under paragraph (1)(B) may elect, at any time, to terminate
repayment pursuant to the income determined repayment plan and
repay such loan under the standard repayment plan under
paragraph (1)(A).''.
(b) Public Service Loan Forgiveness Rules for Income-Determined
Repayment Plans.--Section 455(m) of the Higher Education Act of 1965
(20 U.S.C. 1087e(m)) is amended--
(1) in paragraph (1)(A)--
(A) in clause (iii), by striking ``or'' after the
semicolon;
(B) in clause (iv), by striking ``; and'' and
inserting ``; or''; and
(C) by adding at the end the following:
``(v) payments under an income determined
repayment plan or a standard repayment plan
under subsection (r), except as provided in
paragraph (3); and'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) Exception.--
``(A) In general.--To be eligible for loan
cancellation under this subsection, a borrower who
elects an income determined repayment plan under
subsection (r) shall remain in such plan for the
duration of repayment until such loan is cancelled.
``(B) Required notification and acknowledgement.--
``(i) Notification.--If a borrower who has
elected an income determined repayment plan
under subsection (r) subsequently indicates
that the borrower wishes to change repayment
plans, the Secretary shall notify the borrower
that changing repayment plans will cause any
monthly payments made prior to such change to
not qualify toward the 120 monthly payments
required for loan cancellation under this
subsection.
``(ii) Acknowledgement.--The Secretary
shall require acknowledgment of receipt of the
notification under clause (i) from any borrower
who has elected an income determined repayment
plan under subsection (r) and subsequently
indicates that the borrower wishes to change
repayment plans.''.
SEC. 3. 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 2022-2023, 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 Student Loan Repayment and FAFSA Simplification Act shall
take effect beginning with award year 2022-2023. 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) Cost of Attendance and Student Aid Index.--Sections 472 and 473
of the Higher Education Act of 1965 (20 U.S.C. 1087ll and 1087mm) are
amended to read as follows:
``SEC. 472. COST OF ATTENDANCE.
``(a) In General.--For the purpose of this title, the term `cost of
attendance' means--
``(1) tuition and fees normally assessed a student carrying
the same academic workload as determined by the institution,
and including costs for rental or purchase of any equipment,
materials, or supplies required of all students in the same
course of study;
``(2) an allowance for books, supplies, and transportation,
including a reasonable allowance for the documented rental or
purchase of suggested electronic equipment, as determined by
the institution;
``(3) an allowance for miscellaneous personal expenses, for
a student attending the institution on at least a half-time
basis, as determined by the institution;
``(4) an allowance for living expenses, including food and
housing costs, to be incurred by the student attending the
institution on at least a half-time basis, as determined by the
institution, which includes--
``(A) for students electing institutionally owned
or operated food services, such as board or meal plans,
shall be a standard allowance for such services that
provides the equivalent of three meals each day;
``(B) for students not electing institutionally
owned or operated food services, such as board or meal
plans, shall be a standard allowance for purchasing
food off campus that provides the equivalent of three
meals each day, which shall not exceed the standard
allowance provided in paragraph (A);
``(C) for students without dependents residing in
institutionally owned or operated housing, shall be a
standard allowance determined by the institution based
on average or median amount assessed to such residents
for housing charges, whichever is greater;
``(D) for students with dependents residing in
institutionally owned or operated housing, shall be a
standard allowance determined by the institution based
on the average or median amount assessed to such
residents for housing charges, whichever is greater;
``(E) for students living off campus, and not in
institutionally owned or operated housing, shall be a
standard allowance for rent or other housing costs,
which, if applicable, shall not exceed the standard
allowance provided in paragraph (C) or (D) with respect
to whether the student has dependents;
``(F) for dependent students residing at home with
parents shall be a standard allowance determined by the
institution;
``(G) for students who live in housing located on a
military base or for which a basic allowance is
provided under section 403(b) of title 37, United
States Code, shall be a standard allowance for food
based upon a student's choice of purchasing food on-
campus or off-campus (determined respectively in
accordance with subparagraph (A) or (B)), but not for
housing costs; and
``(H) for all other students shall be an allowance
based on the expenses reasonably incurred by such
students for housing and food;
``(5) for a student engaged in a program of study by
correspondence, only tuition and fees and, if required, books
and supplies, travel, and housing and food costs incurred
specifically in fulfilling a required period of residential
training;
``(6) for incarcerated students, only tuition, fees, books,
supplies, and the cost of obtaining a license, certification,
or a first professional credential in accordance with paragraph
(13);
``(7) for a student enrolled in an academic program in a
program of study abroad approved for credit by the student's
home institution, reasonable costs associated with such study
(as determined by the institution at which such student is
enrolled);
``(8) for a student with one or more dependents, an
allowance based on the estimated actual expenses incurred for
such dependent care, based on the number and age of such
dependents, except that--
``(A) such allowance shall not exceed the
reasonable cost in the community in which such student
resides for the kind of care provided; and
``(B) the period for which dependent care is
required includes, but is not limited to, class-time,
study-time, field work, internships, and commuting
time;
``(9) for a student with a disability, an allowance (as
determined by the institution) for those expenses related to
the student's disability, including special services, personal
assistance, transportation, equipment, and supplies that are
reasonably incurred and not provided for by other assisting
agencies;
``(10) for a student receiving all or part of the student's
instruction by means of telecommunications technology, no
distinction shall be made with respect to the mode of
instruction in determining costs;
``(11) for a student engaged in a work experience under a
cooperative education program, an allowance for reasonable
costs associated with such employment (as determined by the
institution);
``(12) for a student who receives a Federal student loan
made under this title or any other Federal law, to cover a
student's cost of attendance at the institution, an allowance
for the actual cost of any loan fee, origination fee, or
insurance premium charged to such student or such parent on
such loan; and
``(13) for a student in a program requiring professional
licensure, certification, or a first professional credential
the cost of obtaining the license, certification, or a first
professional credential.
``(b) Special Rule for Living Expenses for Less-Than-Half-Time
Students.--An institution of higher education may include an allowance
for living expenses, including food and housing costs in accordance
with subsection (a)(4) for up to three semesters, or the equivalent,
with no more than two semesters being consecutive.
``(c) Disclosure of Cost of Attendance Elements.--Each institution
shall make publicly available on the institution's website a list of
all the elements of cost of attendance described in subsection (a),
including, for a student with one or more dependents, an allowance
based on the estimated actual expenses incurred for dependent care, as
described in subsection (a)(8).
``SEC. 473. SPECIAL RULES FOR 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
that, 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) who is
not required to file a Federal tax return for the second preceding 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, received a benefit under 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.).
``(6) 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)).
``(7) Other means-tested programs determined by the
Secretary to be approximately consistent with the income
eligibility requirements of the means-tested programs under
paragraphs (1) through (6).
``(f) Special Rule for Nonfilers Who Are Also Recipients of Means-
Tested Benefits.--For an applicant (or, as applicable, and applicant
and spouse, or an applicant's parents) who is not required to file a
Federal tax return for the second preceding tax year and who at any
time during the previous 24-month period received a benefit under a
means-tested Federal benefit program, the Secretary shall, for the
purposes of this title, consider the student aid index as equal to
-$1,500 for the applicant.''.
(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 determined under paragraphs
(1), 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 the Internal Revenue Code of 1986.
``(3) Income protection allowance.--The income protection
allowance for award year 2021-2022 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 2021-2022 (to be adjusted for 2022-2023
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) Parents who live together.--Parental income and
assets in the case of student whose parents are married and not
separated, or who are unmarried but live together, 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 by including only the income
and assets of the parent who provides the greater portion of
the student's financial support.
``(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) Federal income taxes;
``(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 2021-2022; 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
the Internal Revenue Code of 1986.
``(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
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) 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 2021-2022; 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 2021-2022; 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 the Internal
Revenue Code of 1986.
``(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.--The 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 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 the Internal
Revenue Code of 1986.
``(3) Income protection allowance.--The income protection
allowance for award year 2021-2022 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 2021-2022 (to be adjusted for 2022-2023
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 2021-2022 (to be adjusted for 2022-2023
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.--
Notwithstanding any other provision of law, the Secretary shall not
have the authority to prescribe regulations to carry out this part
except--
``(1) to prescribe updated tables in accordance with
subsections (b) through (g); or
``(2) with respect to the definition of cost of attendance
under section 472, excluding section 472(a)(1).
``(b) Income Protection Allowance Adjustments.--For award year
2022-2023 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 for purposes of making determinations of assets as defined
under section 480(f) for award year 2021-2022 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 award year 2022-2023 and each
succeeding award year, 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 award
year 2022-2023 and each succeeding award year, 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 award year 2022-2023 and
each succeeding award year, 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 award year 2022-2023 and
each succeeding award year, 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.
``(4) Definitions.--In this section:
``(A) Schedule a.--The term Schedule A means a form
or information by a taxpayer to report itemized
deductions.
``(B) Schedule b.--The term Schedule B means a form
or information filed by a taxpayer to report interest
and ordinary dividend income.
``(C) Schedule c.--The term Schedule C means a form
or information filed by a taxpayer to report income or
loss from a business operated or a profession practiced
as a sole proprietor.
``(D) Schedule d.--The term Schedule D means a form
or information filed by a taxpayer to report sales,
exchanges or some involuntary conversions of capital
assets, certain capital gain distributions, and
nonbusiness bad debts.
``(E) Schedule e.--The term Schedule E means a form
or information filed by a taxpayer to report income
from rental properties, royalties, partnerships, S
corporations, estates, trusts, and residual interests
in real estate mortgage investment conduits.
``(F) Schedule f.--The term Schedule F means a form
or information filed by a taxpayer to report farm
income and expenses.
``(G) Schedule h.--The term Schedule H means a form
or information filed by a taxpayer to report household
employment taxes.''.
(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) In General.--
``(1) Authority of financial aid administrators.--A
financial aid administrator shall have the authority to, on the
basis of adequate documentation, make adjustments to any or all
of the following on a case-by-case basis--
``(A) for an individual eligible applicant with
special circumstances under subsection (b) to--
``(i) the cost of attendance;
``(ii) the values of the data used to
calculate the student aid index; or
``(iii) the values of the data used to
calculate the Federal Pell Grant award; or
``(B) for an individual eligible applicant with
unusual circumstances, as defined in section 480(d)(9),
under subsection (c) to the dependency status.
``(2) Limitations on authority.--
``(A) Use of authority.--No institution of higher
education or financial aid administrator shall maintain
a policy of denying all requests for adjustments under
this section.
``(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 section including the review of
any supplementary information or documentation of a
student or parent's special circumstances or a
student's unusual circumstances.
``(C) Rule of construction.--The authority to make
adjustments under paragraph (1)(A) shall not be
construed to permit financial aid administrators to
deviate from the cost of attendance, the values of data
used to calculate the student aid index or the values
of data used to calculate the Federal Pell Grant award
(or both) for awarding aid under this title in the
absence of special circumstances.
``(3) Adequate documentation.--Adequate documentation for
adjustments under this section shall substantiate the special
circumstances or unusual circumstances of individual students,
and may include, to the extent relevant and appropriate--
``(A) a documented interview between the student
and the financial aid administrator;
``(B) for the purposes of determining that a
student qualifies for an adjustment under paragraph
(1)(B)--
``(i) submission of a court order or
official Federal or State documentation that
the 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 welfare authority;
``(III) an independent living case
worker; or
``(IV) a public or private agency,
facility, or program servicing 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 written
statement from a representative 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) documents, such as utility bills or
health insurance documentation, that
demonstrate a separation from parents or legal
guardians; and
``(vi) in the absence of documentation
described in this subparagraph, other
documentation the financial aid administrator
determines is adequate to confirm the unusual
circumstances, as defined in section 480(d)(9);
and
``(C) supplementary information, as necessary,
about the financial status or personal circumstances of
eligible applicants as it relates to the special
circumstances or unusual circumstances based on which
the applicant is requesting an adjustment.
``(4) Special rule.--In making adjustments under paragraph
(1), a financial aid administrator may offer a dependent
student financial assistance under a Federal Direct
Unsubsidized Stafford Loan without requiring the parents of
such student to provide their parent information on the Free
Application for Federal Student Aid if the student does not
qualify for, or does not choose to uses, the unusual
circumstance option specified in accordance with section
480(d)(9), and the financial aid administrator determines that
the parents of such student ended financial support of such
student and refuse to file such form.
``(5) Public disclosure.--Each institution of higher
education shall make publicly available information that
students applying for aid under this title have the opportunity
to pursue adjustments under this section.
``(b) Adjustments for Students With Special Circumstances.--
``(1) Special circumstances for adjustments related to pell
grants.--Special circumstances for adjustments to calculate a
Federal Pell Grant award--
``(A) shall be conditions that differentiate an
individual student from a group of students rather than
conditions that exist across a group of students; and
``(B) 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);
``(iv) an 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;
``(v) receipt of substantial foreign income
of permanent residents or United States
citizens exempt from Federal taxation, or the
foreign income for which a permanent resident
or citizen received a foreign tax credit; or
``(vi) other changes or adjustments in the
income, assets, or size of a family, or a
student's dependency status.
``(2) 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--
``(A) shall be conditions that differentiate an
individual student from a group of students rather than
conditions that exist across a group of students; and
``(B) 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 not covered by the
dependent care cost allowance calculated in
accordance with section 472;
``(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;
and
``(x) receipt of substantial foreign income
of permanent residents or United States
citizens exempt from Federal taxation, or the
foreign income for which a permanent resident
or citizen receives a foreign tax credit; or
``(C) other changes or adjustments in the income,
assets, or size of a family, or a student's dependency
status.
``(3) Special rule.--The Secretary shall not consider
conditions that are widespread to a group of students due to a
major disaster or an emergency declared by the President under
section 401 or 501, respectively, of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170
and 5191) as special circumstances for adjustment for purposes
of paragraphs (1)(A) and (2)(A) for a time period determined by
such Secretary.
``(c) Unusual Circumstances Adjustments.--
``(1) In general.--Unusual circumstances for adjustments to
the dependency status of an individual eligible applicant shall
be--
``(A) conditions that differentiate an individual
student from a group of students; and
``(B) based on unusual circumstances, as defined by
section 480(d)(9).
``(2) Provisional independent students.--
``(A) Requirements for the secretary.--The
Secretary shall--
``(i) enable each student who, based on an
unusual circumstance specified in section
480(d)(9), may qualify for an adjustment under
subsection (a)(1)(B) that will result in a
determination of independence under this
section and section 479D 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 subsection (a)(3), for the
purpose of the final determination of the
award;
``(ii) upon completion of the Free
Application for Federal Student Aid provide an
estimate of the student's Federal Pell Grant
award, and other information as specified in
section 483(a)(3)(A), based on the assumption
that the student is determined to be an
independent student; and
``(iii) 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
clause (i) without meeting the unusual
circumstances to qualify for such a
determination.
``(B) 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
subparagraph (A), a financial aid administrator shall--
``(i) notify the student of the
institutional process, requirements, and
timeline for an adjustment under this section
and section 480(d)(9) 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;
``(ii) provide the student a final
determination of the student's dependency
status and Federal financial aid award as soon
as practicable after all requested
documentation is provided;
``(iii) retain all documents related to the
adjustment under this section and section
480(d)(9), including documented interviews, for
at least the duration of the student's
enrollment, and shall abide by all other
recordkeeping requirements of this Act; and
``(iv) presume that any student who has
obtained an adjustment under this section and
section 480(d)(9) 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.
``(d) Adjustments to Assets or Income Taken Into Account.--A
financial aid administrator shall be considered to be making a
necessary adjustment in accordance with this section 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.
``(e) 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, Bureau of Indian Affairs student
assistance programs, and employment and training programs under section
134 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174 et
seq.) 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.--The Higher Education Act of 1965 (20 U.S.C. 1001
et seq.) is amended--
(1) by inserting after section 479C the following:
``SEC. 479D. SPECIAL RULES FOR INDEPENDENT STUDENTS.
``(a) Determination Process for Unaccompanied Youth.--In making a
determination of independence under section 480(d)(8), a financial aid
administrator shall--
``(1) consider documentation of the student's circumstance
provided by an individual described by this subparagraph to be
acceptable in the absence of documented conflicting
information, such individuals include--
``(A) a local education 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;
``(B) the director or a recognized emergency
shelter, transitional living, street outreach program,
or other program serving individuals who are homeless
or a designee of the director;
``(C) 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; or
``(D) by a financial aid administrator at another
institution who documented the student's circumstance
in a prior award year;
``(2) if a student is unable to provide documentation from
any individual under paragraph (1), make a case-by-case
determination, which shall be--
``(A) based on a written statement from or a
documented interview with the student which confirms
that the student is homeless (as such term is defined
in section 725 of the McKinney-Vento Homeless
Assistance Act), or unaccompanied, at risk of
homelessness, and self-supporting; and
``(B) made independent from the reasons that the
student is homeless (as such term is defined in section
725 of the McKinney-Vento Homeless Assistance Act), or
unaccompanied, at risk of homelessness, and self-
supporting; and
``(3) consider a determination made under this paragraph as
distinct from a determination of independence under section
480(d)(9).
``(b) Documentation Process for Foster Care Youth.--If an
institution requires that a student provide documentation that they
were in foster care when the student was age 13 or older, a financial
aid administrator shall consider any of the following as adequate
documentation, in the absence of documented conflicting information:
``(1) Submission of a court order or official State
documentation that the student received Federal or State
support in foster care.
``(2) A documented phone call, written statement, or
verifiable electronic data match, which confirms the student
was in foster care at an applicable age, from--
``(A) 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.);
``(B) a State Medicaid agency; or
``(C) a public or private foster care placing
agency or foster care facility or placement.
``(3) 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.
``(4) 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).
``(c) Timing.--A determination of independence under paragraphs
(2), (8) or (9) of section 480(d) for a student--
``(1) shall be made as quickly as practicable;
``(2) may be made as early as the year before the award
year for which the student initially submits an application;
and
``(3) shall be made not later than during the award year
for which the student initially submits an application.
``(d) Use of Earlier Determinations.--
``(1) Earlier determination by the institution.--Any
student who is determined to be independent under paragraph
(2), (8) or (9) of section 480(d) for a preceding award year at
an institution shall be presumed to be independent for each
subsequent award year at the same institution unless--
``(A) the student informs the institution that
circumstances have changed; or
``(B) the institution has specific conflicting
information about the student's independence, and has
informed the student of this information.
``(2) Earlier determination by another institution.--
``(A) Simplifying the dependency override
process.--A financial aid administrator may make a
determination of independence under section 480(d)(9),
based upon a documented determination of independence
that was previously made by another financial aid
administrator under such paragraph in the same award
year.
``(e) Retention of Documents.--A financial aid administrator shall
retain all documents related to the determination of independence under
paragraphs (2) or (8) of section 480(d), including documented
interviews.''; and
(2) by striking section 480 and inserting the following:
``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; and
``(4) untaxed portion of pensions.
``(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.-- The term
`independent', when used with respect to a student, means any
individual who--
``(1) is 24 years of age or older by December 31 of the
award year;
``(2) is, or was at any time when the individual was 13
years of age or older;
``(A) an orphan;
``(B) ward of the court; or
``(C) in foster care;
``(3) 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;
``(4) 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;
``(5) is a graduate or professional student;
``(6) is married and not separated;
``(7) has legal dependents other than a spouse;
``(8) an unaccompanied youth 23 years of age or younger who
is homeless (as such term is defined in section 725 of the
McKinney-Vento Homeless Assistance Act), or unaccompanied, at
risk of homelessness, and self-supporting, or--
``(9) is a student for whom a financial aid administrator
makes a documented determination of independence by reason of
other unusual circumstances as described under section 479A(c)
in which the student is unable to contact a parent or where
contact with parents poses a risk to such student, which
includes circumstances of--
``(A) human trafficking, as described in the
Trafficking Victims Protection Act of 2000 (22 U.S.C.
7101 et seq.);
``(B) legally granted refugee or asylum status;
``(C) parental abandonment or estrangement; or
``(D) parental incarceration.
``(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 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 the Internal Revenue Code
of 1986, 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) 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).
``(5) Notwithstanding paragraph (1), emergency financial
assistance in an amount less than $1,500 provided to the
student for unexpected expenses that are a component of the
student's cost of attendance, and not otherwise considered when
the determination of the student's need is made, shall not be
treated as other financial assistance for purposes of section
471(a)(3).
``(j) Dependents.--
``(1) Except as otherwise provided, the term `dependent of
the parent' means the student who is deemed to be a dependent
students when applying for aid under this title, and any other
person who lives with and receives more than one-half of their
support from the parent (or parents) and will continue to
receive more than half of their support from the parent (or
parents) 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.
``(k) 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 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 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 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 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
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 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.
``(l) 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) Sex.
``(VIII) State of legal residence
and date of residency.
``(IX) The following information on
secondary school completion--
``(aa) 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;
``(bb) 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
``(cc) 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 the
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 in
accordance with section
480(d)(9).
``(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 individual
retirement plan (as defined in section
7701 of the Internal Revenue Code of
1986) distribution or from pensions or
annuities on a Federal tax return,
information as to how much of the
individual retirement plan distribution
or pension or annuity disbursement was
a qualified rollover.
``(iii) Prohibition against requesting
information more than once.--Any information
requested during the process of creating an
account for completing the 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 free
application except in the case of an unusual
situation.
``(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 not share 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) shall not share 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, except as required
under a process or procedure exercised in accordance with the
authority under section 479A.
``(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 the
Department's 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.
``(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 Student Loan Repayment and
FAFSA Simplification Act, 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 that the
Secretary consulted;
``(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 after
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.--Not later than 9 months after
the date of enactment of the Student Loan Repayment and
FAFSA Simplification Act, the Secretary shall begin
consumer testing the design of the Free Application for
Federal Student Aid under this section with prospective
first-generation college students, representatives of
students (including low-income students, first
generation college students, adult students, veterans,
servicemembers, and prospective students), students'
families (including low-income families, families with
first generation college students, and families with
prospective students), institutions of higher
education, secondary school and postsecondary
counselors, and nonprofit consumer groups.
``(B) Updates.--For award year 2021 and each fourth
succeeding award year thereafter, the Secretary shall
update the design of the Free Application for Federal
Student Aid based on additional consumer testing with
the populations described in subparagraph (A) in order
to improve the usability and accessibility of the
application.
``(3) Accessibility of the fafsa.--The Secretary shall--
``(A) in conjunction with the Director of the
Census Bureau, shall determine the most common
languages spoken at home in the United States;
``(B) develop versions of the Free Application for
Federal Student Aid form in each of the languages
determined in subparagraph (A); and
``(C) ensure the Free Application for Federal
Student Aid is compliant with the most recent Web
Content Accessibility Guidelines, or successor
guidelines.
``(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 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.
``(7) Studies.--The Secretary shall periodically conduct
studies on--
``(A) the effect of States requiring additional
information specified in clauses (ii) and (iii) of
paragraph (6)(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;
``(B) the most common barriers faced by
applications in completing the Free Applications for
Federal Student Aid; and
``(C) the most common reasons that students and
families do not fill out the Free Applications for
Federal Student Aid.
``(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)(8); and
``(B) the number of applicants described in
subparagraph (A), disaggregated--
``(i) by State; and
``(ii) by the sources of determination as
described in section 479D(b).
``(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
other 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 AND OUTREACH OF FINANCIAL AID ELIGIBILITY.
``(a) In General.--The Secretary shall implement early outreach
activities in order to provide prospective students and their families
with information about financial aid and estimates of financial aid.
Such early outreach activities shall include the activities described
in subsections (b), (c), and (d).
``(b) Pell Grant Early Awareness Estimates.--
``(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 2023-2024 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 on fafsa.--In accordance with
subsection (d)(5) of section 483, the Secretary shall maintain
an electronic method for applicants to enter income and family
size, and level of education sought information to calculate a
non-binding estimate (which may include a range or ceiling) of
the applicant's Federal financial aid available under this
title and shall place such calculator on a prominent location
on the FAFSA website and in a manner that encourages students
to fill out the FAFSA.
``(c) Early Awareness Plans.--The Secretary shall establish and
implement early awareness and outreach 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) Outreach plans for low-income families.--
``(A) In general.--The Secretary shall develop
plans for each population described in this
subparagraph 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) Content of plans.--The plans described in
paragraph (A) shall--
``(i) provide students and their families
with information on--
``(I) the availability of the
College Scorecard described in section
132;
``(II) the electronic estimates of
financial aid available under
subsection (b);
``(III) Federal financial aid
available to students, including
eligibility criteria for the Federal
financial aid and an explanation of the
Federal financial aid programs
(including applicable Federal
educational tax credits); and
``(IV) resources that can inform
students of financial aid that may be
available from State-based financial
aid, State-based college savings
programs, and scholarships and other
non-governmental sources; and
``(ii) describe how the dissemination of
information will be conducted by the Secretary.
``(C) 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.
``(D) 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
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) 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) 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);
``(iv) establish goals regarding the
effects of the activities to be implemented
under clause (iii); and
``(v) provide information on how students
and families can maintain access to Federal
programs that serve low-income individuals and
families operated by the agencies identified
under subsection (A) while attending an
institution of higher education.
``(C) Plan with secretary of the treasury.--The
interagency coordination plan under subparagraph (A)(i)
between the Secretary and the Secretary of the Treasury
shall further include specific methods to increase the
application for Federal financial aid under this title
from individuals who file Federal tax returns,
including collaboration with tax preparation entities
or other third parties, as appropriate.
``(D) Reporting and updates.--The Secretary shall
post the information about the interagency coordination
plans under paragraph (2) and associated goals publicly
on the Department of Education website. 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. The plans shall be updated not
less than once every 4 years.
``(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 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 and, at the option of the
Secretary, potential availability of State need-based financial
aid.
``(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.''.
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