[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6425 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 6425
To amend the Higher Education Act of 1965 to increase the maximum
Federal Pell Grant amount, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 19, 2022
Mr. DeFazio introduced the following bill; which was referred to the
Committee on Education and Labor, and in addition to the Committees on
Agriculture, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to increase the maximum
Federal Pell Grant amount, 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 ``Achieving Independence through
Degrees Act'' or the ``AID Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--ADJUSTMENTS TO FEDERAL PELL GRANTS
Sec. 101. Increase in maximum Federal Pell Grant amount.
Sec. 102. Increase in total semesters of Federal Pell Grant
eligibility.
Sec. 103. Extending Federal Pell Grant eligibility of certain short-
term programs.
Sec. 104. Full exclusion from gross income for Pell Grants.
Sec. 105. Expanding the use for Pell Grants.
TITLE II--FINANCIAL AID COUNSELING FOR BORROWERS
Sec. 201. Annual financial aid counseling.
Sec. 202. Exit counseling.
Sec. 203. Online counseling tools.
Sec. 204. Longitudinal study on the effectiveness of student loan
counseling.
TITLE III--ADJUSTMENTS TO THE FAFSA FORM
Sec. 301. Provisional independence for certain students.
Sec. 302. Revision of FAFSA form.
TITLE IV--FINANCIAL AID SHOPPING SHEET
Sec. 401. Secretarial requirements.
Sec. 402. Requirements for institutions of higher education.
TITLE V--SNAP AND HIGHER EDUCATION
Sec. 501. SNAP treatment of living expenses included in educational
loans.
Sec. 502. Eligibility of students to participate in the supplemental
nutrition assistance program.
TITLE VI--ADJUSTMENTS TO CAMPUS-BASED STUDENT FINANCIAL AID PROGRAMS
Part 1--Federal Supplemental Educational Opportunity Grants
Sec. 601. Purpose; appropriations authorized.
Sec. 602. Allocation of funds.
Part 2--Federal Work-Study Programs
Sec. 610. Purpose; authorization of appropriations.
Sec. 611. Allocation formula.
Sec. 612. Grants for Federal work-study programs.
Sec. 613. Flexible use of funds.
Sec. 614. Job location and development programs.
Sec. 615. Community service.
Sec. 616. Pilot grant program.
Sec. 617. Department activities.
Sec. 618. Study and report.
TITLE I--ADJUSTMENTS TO FEDERAL PELL GRANTS
SEC. 101. INCREASE IN MAXIMUM FEDERAL PELL GRANT AMOUNT.
(a) Award Year 2022-2023.--Section 401(b)(7)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)) is amended by striking
clauses (ii) and (iii) and inserting the following:
``(ii) Award year 2022-2023.--For award
year 2022-2023, the amount determined under
this subparagraph for purposes of subparagraph
(B)(iii) shall be increased to $13,000.''.
(b) Award Year 2023-2024, and Each Subsequent Award Year.--Section
401(b)(5) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)),
as amended by the FAFSA Simplification Act under section 703 of
division FF of Public Law 116-260, is further amended to read as
follows:
``(5) Total maximum federal pell grant.--
``(A) Award year 2023-2024.--For award year 2023-
2024, the total maximum Federal Pell Grant award per
student shall be equal to the sum of--
``(i) $13,000; and
``(ii) the amount specified as the maximum
Federal Pell Grant in the last enacted
appropriation Act applicable to that award
year.
``(B) Award year 2024-2025, and each subsequent
award year.--For award year 2024-2025 and each
subsequent award year, the total maximum Federal Pell
Grant award per student shall be equal to the sum of--
``(i)(I) for award year 2024-2025, $13,000,
increased by a percentage equal to the annual
adjustment percentage for award year 2024-2025;
and
``(II) for award year 2025-2026 and each
subsequent award year, the amount determined
under this clause for the preceding year,
increased by a percentage equal to the annual
adjustment percentage for the award year for
which the amount under this clause is being
determined; and
``(ii) the amount specified as the maximum
Federal Pell Grant in the last enacted
appropriation Act applicable to that award
year.
``(C) Rounding.--The total maximum Federal Pell
Grant for any award year shall be rounded to the
nearest $5.
``(D) Annual adjustment percentage defined.--In
this paragraph, the term `annual adjustment percentage'
as applied to an award year, is equal to the estimated
percentage change in the Consumer Price Index (as
determined by the Secretary, using the definition in
section 478(f)) for the most recent calendar year
ending prior to the beginning of that award year.''.
SEC. 102. INCREASE IN TOTAL SEMESTERS OF FEDERAL PELL GRANT
ELIGIBILITY.
(a) Award Year 2022-2023.--Section 401(c)(5) of the Higher
Education Act of 1965 (20 U.S.C. 1070a(c)(5)) is amended by striking
``12'' both places it appears and inserting ``15''.
(b) Award Year 2023-2024, and Each Subsequent Award Year.--Section
401(d)(5)(A) of the Higher Education Act of 1965 (20 U.S.C.
1070a(d)(5)(A)), as amended by the FAFSA Simplification Act under
section 703 of division FF of Public Law 116-260, is further amended by
striking ``12'' both places it appears and inserting ``15''.
SEC. 103. EXTENDING FEDERAL PELL GRANT ELIGIBILITY OF CERTAIN SHORT-
TERM PROGRAMS.
(a) Award Year 2022-2023.--Section 401 of the Higher Education Act
of 1965 (20 U.S.C. 1070a), is amended by inserting after subsection (j)
the following:
``(k) Job Training Federal Pell Grant Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible career pathway program.--The term
`eligible career pathway program' means a program
that--
``(i) meets the requirements of section
484(d)(2);
``(ii) is a program of training services
listed under included on the list established
under section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3152(d)); and
``(iii) is part of a career pathway, as
defined in section 3 of such Act (29 U.S.C.
3102).
``(B) Job training program.--The term `job training
program' means a career and technical education program
at an institution of higher education that--
``(i) provides not less than 150, and not
more than 600, clock hours of instructional
time over a period of not less than 8, and not
more than 15, weeks;
``(ii) provides training aligned with the
requirements of employers in the State or local
area, which may include in-demand industry
sectors or occupations, as defined in section 3
of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3102), in the State or local area
(as defined in such section);
``(iii) is a program of training services
that is provided through an eligible provider
of training services listed under section
122(d) of such Act (29 U.S.C. 3152(d));
``(iv) provides a student, upon completion
of the program, with a recognized postsecondary
credential, as defined in section 3 of such
Act, that is recognized by employers in the
relevant industry, including credentials
recognized by industry or sector partnerships
in the State or local area where the industry
is located;
``(v) has been determined, by the
institution of higher education, to provide
academic content, an amount of instructional
time, and a recognized postsecondary credential
that are sufficient to--
``(I) meet the hiring requirements
of potential employers; and
``(II) satisfy any applicable
educational prerequisite requirement
for professional licensure or
certification, so that the student who
completes the program and seeks
employment qualifies to take any
licensure or certification examination
needed to practice or find employment
in an occupation that the program
prepares students to enter;
``(vi) may include integrated or basic
skills courses; and
``(vii) may be offered as part of an
eligible career pathway program.
``(2) Grant program.--For the award year beginning on July
1, 2022, and each subsequent award year, the Secretary shall
carry out a program through which the Secretary shall award job
training Federal Pell Grants to students in job training
programs. Each job training Federal Pell Grant awarded under
this subsection shall have the same terms and conditions, and
be awarded in the same manner, as a Federal Pell Grant awarded
under subsection (a), except as follows:
``(A) A student who is eligible to receive a job
training Federal Pell Grant under this subsection is a
student who--
``(i) has not yet attained a baccalaureate
degree or postbaccalaureate degree;
``(ii) attends an institution of higher
education;
``(iii) is enrolled, or accepted for
enrollment, in a job training program at such
institution of higher education; and
``(iv) meets all other eligibility
requirements for a Federal Pell Grant (except
with respect to the type of program of study,
as provided in clause (iii)).
``(B) The amount of a job training Federal Pell
Grant for an eligible student shall be determined under
subsection (b)(2)(A), except that--
``(i) the maximum Federal Pell Grant
awarded under this subsection for an award year
shall be 50 percent of the maximum Federal Pell
Grant awarded under subsection (b)(2)(A)
applicable to that award year; and
``(ii) subsection (b)(4) shall not apply.
``(3) Inclusion in total eligibility period.--Any period
during which a student receives a job training Federal Pell
Grant under this subsection shall be included in calculating
the student's period of eligibility for Federal Pell Grants
under subsection (c), and any regulations under such subsection
regarding students who are enrolled in an undergraduate program
on less than a full-time basis shall similarly apply to
students who are enrolled in a job training program at an
eligible institution on less than a full-time basis.''.
(b) Award Year 2023-2024, and Each Subsequent Award Year.--Section
401 of the Higher Education Act of 1965 (20 U.S.C. 1070a), as amended
by the FAFSA Simplification Act under section 703 of division FF of
Public Law 116-260, is further amended by inserting after subsection
(j), the following:
``(k) Job Training Federal Pell Grant Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible career pathway program.--The term
`eligible career pathway program' means a program
that--
``(i) meets the requirements of section
484(d)(2);
``(ii) is a program of training services
listed under included on the list established
under section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3152(d)); and
``(iii) is part of a career pathway, as
defined in section 3 of such Act (29 U.S.C.
3102).
``(B) Job training program.--The term `job training
program' means a career and technical education program
at an institution of higher education that--
``(i) provides not less than 150, and not
more than 600, clock hours of instructional
time over a period of not less than 8, and not
more than 15, weeks;
``(ii) provides training aligned with the
requirements of employers in the State or local
area, which may include in-demand industry
sectors or occupations, as defined in section 3
of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3102), in the State or local area
(as defined in such section);
``(iii) is a program of training services
that is provided through an eligible provider
of training services listed under section
122(d) of such Act (29 U.S.C. 3152(d));
``(iv) provides a student, upon completion
of the program, with a recognized postsecondary
credential, as defined in section 3 of such
Act, that is recognized by employers in the
relevant industry, including credentials
recognized by industry or sector partnerships
in the State or local area where the industry
is located;
``(v) has been determined, by the
institution of higher education, to provide
academic content, an amount of instructional
time, and a recognized postsecondary credential
that are sufficient to--
``(I) meet the hiring requirements
of potential employers; and
``(II) satisfy any applicable
educational prerequisite requirement
for professional licensure or
certification, so that the student who
completes the program and seeks
employment qualifies to take any
licensure or certification examination
needed to practice or find employment
in an occupation that the program
prepares students to enter;
``(vi) may include integrated or basic
skills courses; and
``(vii) may be offered as part of an
eligible career pathway program.
``(2) Grant program.--For the award year beginning on July
1, 2023, and each subsequent award year, the Secretary shall
carry out a program through which the Secretary shall award job
training Federal Pell Grants to students in job training
programs. Each job training Federal Pell Grant awarded under
this subsection shall have the same terms and conditions, and
be awarded in the same manner, as a Federal Pell Grant awarded
under subsection (a), except as follows:
``(A) A student who is eligible to receive a job
training Federal Pell Grant under this subsection is a
student who--
``(i) has not yet attained a baccalaureate
degree or postbaccalaureate degree;
``(ii) attends an institution of higher
education;
``(iii) is enrolled, or accepted for
enrollment, in a job training program at such
institution of higher education; and
``(iv) meets all other eligibility
requirements for a Federal Pell Grant (except
with respect to the type of program of study,
as provided in clause (iii)).
``(B) The amount of a job training Federal Pell
Grant for an eligible student shall be determined under
subsection (b)(1), except that--
``(i) the maximum Federal Pell Grant
awarded under this subsection for an award year
shall be 50 percent of the maximum Federal Pell
Grant awarded under subsection (b)(5),
applicable to that award year; and
``(ii) the requirements related to the
minimum Federal Pell Grant (as defined in
section (a)(2)(F)) requirements shall not
apply.
``(3) Inclusion in total eligibility period.--Any period
during which a student receives a job training Federal Pell
Grant under this subsection shall be included in calculating
the student's period of eligibility for Federal Pell Grants
under subsection (d), and any regulations under such subsection
regarding students who are enrolled in an undergraduate program
on less than a full-time basis shall similarly apply to
students who are enrolled in a job training program at an
eligible institution on less than a full-time basis.''.
(c) Additional Safeguards.--Section 496(a)(4) of the Higher
Education Act of 1965 (20 U.S.C. 1099b(a)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon;
(2) in subparagraph (B)(ii), by inserting ``and'' after the
semicolon; and
(3) by adding at the end the following:
``(C) if such agency or association has or seeks to
include within its scope of recognition the evaluation
of the quality of institutions of higher education
participating in the job training Federal Pell Grant
program under section 401(k), such agency or
association shall, in addition to meeting the other
requirements of this subpart, demonstrate to the
Secretary that, with respect to such job training
programs--
``(i) the agency or association's standards
include a process for determining whether the
program provides training aligned with the
requirements of employers in the State or local
area served by the program; and
``(ii) the agency or association requires a
demonstration that the program--
``(I) has identified each
recognized postsecondary credential
offered and the corresponding industry
or sector partnership that actively
recognizes each credential in the
relevant industry in the State or local
area where the industry is located; and
``(II) provides the academic
content and amount of instructional
time that is sufficient to--
``(aa) meet the hiring
requirements of potential
employers; and
``(bb) satisfy any
applicable educational
prerequisites for professional
licensure or certification
requirements so that the
student who completes the
program and seeks employment
qualifies to take any licensure
or certification examination
that is needed to practice or
find employment in an
occupation that the program
prepares students to enter;''.
SEC. 104. FULL EXCLUSION FROM GROSS INCOME FOR PELL GRANTS.
Section 117(b) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(3) Special rule for pell grants.--Amounts received under
a Federal Pell Grant under subpart 1 of part A of title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.)
shall be treated as an amount received as a qualified
scholarship notwithstanding whether such amount was used for
qualified tuition and related expenses.''.
SEC. 105. EXPANDING THE USE FOR PELL GRANTS.
(a) Award Year 2022-2023.--Section 401(e) of the Higher Education
Act of 1965 (20 U.S.C. 1070a(e)) is amended by striking ``Any
disbursement allowed to be made by crediting the student's account
shall be limited to tuition and fees and, in the case of
institutionally owned housing, room and board. The student may elect to
have the institution provide other such goods and services by crediting
the student's account.'' and inserting ``Payments under this section
may be used by the student for living and nontuition expenses.''.
(b) Award Year 2023-2024, and Each Subsequent Award Year.--Section
401(f) of the Higher Education Act of 1965 (20 U.S.C. 1070a), as
amended by the FAFSA Simplification Act under section 703 of division
FF of Public Law 116-260, is further amended by striking ``Any
disbursement allowed to be made by crediting the student's account
shall be limited to tuition and fees, and food and housing if that food
and housing is institutionally owned or operated. The student may elect
to have the institution provide other such goods and services by
crediting the student's account.'' and inserting ``Payments under this
section may be used by the student for living and nontuition
expenses.''.
TITLE II--FINANCIAL AID COUNSELING FOR BORROWERS
SEC. 201. ANNUAL FINANCIAL AID COUNSELING.
Section 485(l) of the Higher Education Act of 1965 (20 U.S.C.
1092(l)) is amended to read as follows:
``(l) Annual Financial Aid Counseling.--
``(1) Annual disclosure required.--
``(A) In general.--Each eligible institution shall
ensure that each individual who receives a loan made
under part D (other than a Federal Direct Consolidation
Loan) receives comprehensive information on the terms
and conditions of such loan and the responsibilities
the individual has with respect to such loan. Such
information shall be provided, for each award year for
which the individual receives such loan, in a simple
and understandable manner--
``(i) during a counseling session conducted
in person;
``(ii) online, with the individual
acknowledging receipt of the information; or
``(iii) through the use of the online
counseling tool described in subsection
(k)(1)(B).
``(B) Use of interactive programs.--In the case of
institutions not using the online counseling tool
described in subsection (k)(1)(B), the Secretary shall
require such institutions to carry out the requirements
of subparagraph (A) through the use of interactive
programs, during an annual counseling session that is
in person or online, that test the individual's
understanding of the terms and conditions of the loan
awarded to the individual, using simple and
understandable language and clear formatting.
``(2) All individuals.--The information to be provided
under paragraph (1)(A) to each individual receiving counseling
under this subsection shall include the following:
``(A) An explanation of how the individual may
budget for typical educational expenses and a sample
budget based on the cost of attendance for the
institution.
``(B) An explanation that an individual has a right
to annually request a disclosure of information
collected by a consumer reporting agency pursuant to
section 612(a) of the Fair Credit Reporting Act (15
U.S.C. 1681j(a)).
``(C) Based on the most recent data available from
the American Community Survey available from the
Department of Commerce, the estimated average income
and percentage of employment in the State of domicile
of the individual for individuals with--
``(i) a high school diploma or equivalent;
``(ii) some postsecondary education without
completion of a degree or certificate; and
``(iii) a bachelor's degree.
``(D) An introduction to the financial management
resources provided by the Financial Literacy and
Education Commission.
``(3) Borrowers receiving loans made under part d (other
than parent plus loans).--The information to be provided under
paragraph (1)(A) to a borrower of a loan made under part D
(other than a Federal Direct PLUS Loan made on behalf of a
dependent student) shall include the following:
``(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the eligibility
of the borrower for other forms of student financial
assistance.
``(B) An explanation of the use of the master
promissory note.
``(C) An explanation that the borrower is not
required to accept the full amount of the loan offered
to the borrower.
``(D) An explanation that the borrower should
consider accepting any grant, scholarship, or State or
Federal work-study jobs for which the borrower is
eligible prior to accepting Federal student loans.
``(E) A recommendation to the borrower to exhaust
the borrower's Federal student loan options prior to
taking out private education loans, an explanation that
Federal student loans typically offer better terms and
conditions than private education loans, an explanation
of treatment of loans made under part D and private
education loans in bankruptcy, and an explanation that
if a borrower decides to take out a private education
loan--
``(i) the borrower has the ability to
select a private educational lender of the
borrower's choice;
``(ii) the proposed private education loan
may impact the borrower's potential eligibility
for other financial assistance, including
Federal financial assistance under this title;
and
``(iii) the borrower has a right--
``(I) to accept the terms of the
private education loan within 30
calendar days following the date on
which the application for such loan is
approved and the borrower receives the
required disclosure documents, pursuant
to section 128(e) of the Truth in
Lending Act (15 U.S.C. 1638(e)); and
``(II) to cancel such loan within 3
business days of the date on which the
loan is consummated, pursuant to
section 128(e)(7) of such Act (15
U.S.C. 1638(e)(7)).
``(F) An explanation of the approved educational
expenses for which the borrower may use a loan made
under part D.
``(G) Information on the annual and aggregate loan
limits for Federal Direct Stafford Loans and Federal
Direct Unsubsidized Stafford Loans.
``(H) Information on how interest accrues and is
capitalized during periods when the interest is not
paid by either the borrower or the Secretary.
``(I) In the case of a Federal Direct PLUS Loan or
a Federal Direct Unsubsidized Stafford Loan, the option
of the borrower to pay the interest while the borrower
is in school.
``(J) The definition of half-time enrollment at the
institution, during regular terms and summer school, if
applicable, and the consequences of not maintaining at
least half-time enrollment.
``(K) An explanation of the importance of
contacting the appropriate offices at the institution
of higher education if the borrower withdraws prior to
completing the borrower's program of study so that the
institution can provide exit counseling, including
information regarding the borrower's repayment options
and loan consolidation.
``(L) For a first-time borrower--
``(i) a statement of the anticipated
balance on the loan for which the borrower is
receiving counseling under this subsection;
``(ii) based on such anticipated balance,
the anticipated monthly payment amount under,
at minimum--
``(I) the standard repayment plan;
and
``(II) an income-based repayment
plan under section 493C, as determined
using regionally available data from
the Bureau of Labor Statistics of the
average starting salary for the
occupation in which the borrower has an
interest in or intends to be employed;
``(iii) an estimate of the projected
monthly payment amount under each repayment
plan described in clause (ii), based on the
average cumulative indebtedness at graduation
for borrowers of loans made under part D who
are in the same program of study as the
borrower; and
``(iv) an explanation of how interest
accrues once a student borrower enters into
repayment status.
``(M) For a borrower with an outstanding balance of
principal or interest due on a loan made under this
title--
``(i) a current statement of the amount of
such outstanding balance and interest accrued;
``(ii) based on such outstanding balance,
the anticipated monthly payment amount under,
at minimum, the standard repayment plan and,
using regionally available data from the Bureau
of Labor Statistics of the average starting
salary for the occupation the borrower intends
to be employed, an income-based repayment plan
under section 493C;
``(iii) an estimate of the projected
monthly payment amount under each repayment
plan described in clause (ii), based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
student is receiving counseling under
this subsection;
``(III) a projection for any other
loans made under part D that the
borrower is reasonably expected to
accept during the borrower's program of
study based on at least the expected
increase in the cost of attendance of
such program; and
``(iv) an explanation of how interest
accrues once a student borrower enters into
repayment status.
``(N) The obligation of the borrower to repay the
full amount of the loan, regardless of whether the
borrower completes or does not complete the program in
which the borrower is enrolled within the regular time
for program completion.
``(O) The likely consequences of default on the
loan, including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation, and a notice of the institution's most
recent cohort default rate (defined in section 435(m)),
an explanation of the cohort default rate, the most
recent national average cohort default rate, and the
most recent national average cohort default rate for
the category of institution described in section
435(m)(4) to which the institution belongs.
``(P) Information on the National Student Loan Data
System and how the borrower can access the borrower's
records.
``(Q) The contact information for the institution's
financial aid office or other appropriate office at the
institution the borrower may contact if the borrower
has any questions about the borrower's rights and
responsibilities or the terms and conditions of the
loan.
``(4) Borrowers receiving parent plus loans for dependent
students.--The information to be provided under paragraph
(1)(A) to a borrower of a Federal Direct PLUS Loan made on
behalf of a dependent student shall include the following:
``(A) The information described in subparagraphs
(A) through (C) and (N) through (Q) of paragraph (3).
``(B) The option of the borrower to pay the
interest on the loan while the loan is in deferment.
``(C) For a first-time borrower of such loan--
``(i) a statement of the anticipated
balance on the loan for which the borrower is
receiving counseling under this subsection;
``(ii) based on such anticipated balance,
the anticipated monthly payment amount under
the standard repayment plan; and
``(iii) an estimate of the projected
monthly payment amount under the standard
repayment plan, based on the average cumulative
indebtedness of other borrowers of Federal
Direct PLUS Loans made on behalf of dependent
students who are in the same program of study
as the student on whose behalf the borrower
borrowed the loan.
``(D) For a borrower with an outstanding balance of
principal or interest due on such loan--
``(i) a statement of the amount of such
outstanding balance;
``(ii) based on such outstanding balance,
the anticipated monthly payment amount under
the standard repayment plan; and
``(iii) an estimate of the projected
monthly payment amount under the standard
repayment plan, based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
borrower is receiving counseling under
this subsection; and
``(III) a projection for any other
Federal Direct PLUS Loan made on behalf
of the dependent student that the
borrower is reasonably expected to
accept during the program of study of
such student based on at least the
expected increase in the cost of
attendance of such program.
``(E) Debt management strategies that are designed
to facilitate the repayment of such indebtedness.
``(F) An explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans.
``(G) For each Federal Direct PLUS Loan made on
behalf of a dependent student for which the borrower is
receiving counseling under this subsection, the contact
information for the loan servicer of the loan and a
link to such servicer's website.
``(5) Annual loan acceptance.--Prior to making the first
disbursement of a loan made under part D (other than a Federal
Direct Consolidation Loan) to a borrower for an award year, an
eligible institution, shall, as part of carrying out the
counseling requirements of this subsection for the loan, ensure
that after receiving the applicable counseling under paragraphs
(2), (3), and (4) for the loan the borrower accepts the loan
for such award year by--
``(A) signing the master promissory note for the
loan;
``(B) signing and returning to the institution a
separate written statement that affirmatively states
that the borrower accepts the loan; or
``(C) electronically signing an electronic version
of the statement described in subparagraph (B).''.
SEC. 202. EXIT COUNSELING.
Section 485(b) of the Higher Education Act of 1965 (20 U.S.C.
1092(b)) is amended--
(1) in paragraph (1)(A)--
(A) in the matter preceding clause (i), by striking
``through financial aid offices or otherwise'' and
inserting ``through the use of an interactive program,
during an exit counseling session that is in person or
online, or through the use of the online counseling
tool described in subsection (k)(1)(A)'';
(B) by redesignating clauses (i) through (ix) as
clauses (iv) through (xii), respectively;
(C) by inserting before clause (iv), as so
redesignated, the following:
``(i) a summary of the outstanding balance of principal and
interest due on the loans made to the borrower under part B, D,
or E;
``(ii) an explanation of the grace period preceding
repayment and the expected date that the borrower will enter
repayment;
``(iii) an explanation that the borrower has the option to
pay any interest that has accrued while the borrower was in
school or that may accrue during the grace period preceding
repayment or during an authorized period of deferment or
forbearance, prior to the capitalization of the interest; and
``(iv) an explanation of how interest accrues once a
student borrower enters into repayment status, and an
estimation of how much interest will accrue over time under the
standard repayment plan and an income-based repayment plan
under section 493C;'';
(D) in clause (iv), as so redesignated--
(i) by striking ``sample information
showing the average'' and inserting
``information, based on the borrower's
outstanding balance described in clause (i),
showing the borrower's''; and
(ii) by striking ``of each plan'' and
inserting ``of at least the standard repayment
plan and the income-based repayment plan under
section 493C'';
(E) in clause (ix), as so redesignated--
(i) by inserting ``decreased credit
score,'' after ``credit reports,''; and
(ii) by inserting ``reduced ability to rent
or purchase a home or car, potential difficulty
in securing employment,'' after ``Federal
law,'';
(F) in clause (x), as so redesignated, by striking
``consolidation loan under section 428C or a'';
(G) in clauses (xi) and (xii), as so redesignated,
by striking ``and'' at the end; and
(H) by adding at the end the following:
``(xiii) for each of the borrower's loans made under part
B, D, or E for which the borrower is receiving counseling under
this subsection, the contact information for the loan servicer
of the loan and a link to such servicer's website; and
``(xiv) an explanation that an individual has a right to
annually request a disclosure of information collected by a
consumer reporting agency pursuant to section 612(a) of the
Fair Credit Reporting Act (15 U.S.C. 1681j(a)).'';
(2) in paragraph (1)(B)--
(A) by inserting ``online or'' before ``in
writing''; and
(B) by adding before the period at the end the
following: ``, except that in the case of an
institution using the online counseling tool described
in subsection (k)(1)(A), the Secretary shall attempt to
provide such information to the student in the manner
described in subsection (k)(3)(C)''; and
(3) in paragraph (2)(C), by inserting ``, such as the
online counseling tool described in subsection (k)(1)(A),''
after ``electronic means''.
SEC. 203. ONLINE COUNSELING TOOLS.
Section 485(k) of the Higher Education Act of 1965 (20 U.S.C. 1092)
is amended to read as follows:
``(k) Online Counseling Tools.--
``(1) In general.--Beginning not later than 1 year after
the date of the enactment of the Achieving Independence through
Degrees Act, the Secretary shall maintain--
``(A) an online counseling tool that provides the
exit counseling required under subsection (b) and meets
the applicable requirements of this subsection; and
``(B) an online counseling tool that provides the
annual counseling required under subsection (l) and
meets the applicable requirements of this subsection.
``(2) Requirements of tools.--In maintaining the online
counseling tools described in paragraph (1), the Secretary
shall ensure that each such tool is--
``(A) consumer tested, in consultation with other
relevant Federal agencies, to ensure that the tool is
effective in helping individuals understand their
rights and obligations with respect to borrowing a loan
made under part D;
``(B) understandable to students who are borrowers
of loans made under part D; and
``(C) freely available to all eligible
institutions.
``(3) Record of counseling completion.--The Secretary
shall--
``(A) use each online counseling tool described in
paragraph (1) to keep a record of which individuals
have received counseling using the tool, and notify the
applicable institutions of the individual's completion
of such counseling;
``(B) in the case of a borrower who receives annual
counseling for a loan made under part D using the tool
described in paragraph (1)(B), notify the borrower by
when the borrower should accept, in a manner described
in subsection (l)(6), the loan for which the borrower
has received such counseling; and
``(C) in the case of a borrower described in
subsection (b)(1)(B) at an institution that uses the
online counseling tool described in paragraph (1)(A) of
this subsection, the Secretary shall attempt to provide
the information described in subsection (b)(1)(A) to
the borrower through such tool.''.
SEC. 204. LONGITUDINAL STUDY ON THE EFFECTIVENESS OF STUDENT LOAN
COUNSELING.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Education, acting through the
Director of the Institute of Education Sciences, shall begin conducting
a rigorous, longitudinal study of the impact and effectiveness of the
student loan counseling--
(1) provided under subsections (b), (l), and (k) of section
485 of the Higher Education Act of 1965 (20 U.S.C. 1092), as
amended by this Act; and
(2) provided through such other means as the Secretary of
Education may determine.
(b) Contents.--
(1) Borrower information.--The longitudinal study carried
out under subsection (a) shall include borrower information, in
the aggregate and disaggregated by race, ethnicity, gender,
income, and status as an individual with a disability, on--
(A) student persistence;
(B) degree attainment;
(C) program completion;
(D) successful entry into student loan repayment;
(E) cumulative borrowing levels; and
(F) such other factors as the Secretary of
Education may determine.
(2) Exception.--The disaggregation under paragraph (1)
shall not be required in a case in which the number of
borrowers in a category is insufficient to yield statistically
reliable information or the results would reveal personally
identifiable information about an individual borrower.
(c) Interim Reports.--Not later than 18 months after the
commencement of the study under subsection (a), and annually
thereafter, the Secretary of Education shall evaluate the progress of
the study and report any short-term findings to the appropriate
committees of Congress.
TITLE III--ADJUSTMENTS TO THE FAFSA FORM
SEC. 301. PROVISIONAL INDEPENDENCE FOR CERTAIN STUDENTS.
(a) Award Year 2022-2023.--Section 483 of the Higher Education Act
of 1965 (20 U.S.C. 1090) is amended--
(1) in subsection (h)(1), by inserting the following before
the semicolon: ``, including the special circumstances under
which a student may qualify for a determination of
independence''; and
(2) by adding at the end the following:
``(i) Provisional Independent Students.--
``(1) Requirements for the secretary.--The Secretary
shall--
``(A) enable each student who, based on the special
circumstance specified in subsection (h)(1), may
qualify for an adjustment under section 479A that will
result in a determination of independence under such
section and section 480(d)(1)(I), to complete the forms
developed by the Secretary under subsection (a) as an
independent student for the purpose of a provisional
determination of the student's Federal financial aid
award, but subject to verification under paragraph
(2)(E) for the purpose of the final determination of
the award;
``(B) upon completion of the forms developed by the
Secretary under subsection (a), provide an estimate of
the student's Federal Pell Grant award, based on the
assumption the student is determined to be an
independent student;
``(C) ensure that, on each form developed under
this section, there is a single and easily understood
screening question to identify an applicant for aid who
wishes to provisionally apply for independent status
under sections 479A and 480(d)(1)(I); and
``(D) specify, on the forms, the consequences under
section 490(a) of knowingly and willfully completing
the forms as an independent student under subparagraph
(A) without meeting the special circumstances to
qualify for such a determination.
``(2) Requirements for financial aid administrators.--With
respect to a student accepted for admission who completes the
forms as an independent student under paragraph (1)(A), a
financial aid administrator--
``(A) shall notify the student of the institutional
process and requirements for an adjustment under
sections 479A and 480(d)(1)(I) that will result in a
determination of independence under such sections
within a reasonable time after the student completes
the forms developed by the Secretary under subsection
(a) as an independent student for the purpose of a
provisional determination of the student's Federal
financial aid award;
``(B) may make an adjustment under sections 479A
and 480(d)(1)(I) for a determination of independence in
the absence of conflicting information;
``(C) shall provide a final determination of the
student's Federal financial aid award to the student in
the same manner as, and by not later than the date
that, the administrator provides most other
provisionally independent students their final
determinations of Federal financial aid awards, or
during the award year in which the student initially
submits an application, whichever comes sooner;
``(D) shall, in making a final determination of the
student's Federal financial aid award, use the
discretion provided under sections 479A and
480(d)(1)(I) to verify whether the student meets the
special circumstances to qualify as an independent
student;
``(E) in accordance with paragraph (B), may
consider as adequate verification that a student
qualifies for an adjustment under sections 479A and
480(d)(1)(I)--
``(i) submission of a court order or
official Federal or State documentation that
the student's parent or legal guardian is
incarcerated in any Federal or State penal
institution;
``(ii) a documented phone call with, or a
written statement from--
``(I) a child welfare agency
authorized by a State or county;
``(II) a Tribal child welfare
authority;
``(III) an independent living case
worker; or
``(IV) a public or private agency,
facility, or program serving the
victims of abuse, neglect, assault, or
violence;
``(iii) a documented phone call with, or a
written statement from, an attorney, a guardian
ad litem, or a court appointed special
advocate, documenting that person's
relationship to the student;
``(iv) a documented phone call with, or a
written statement from, a representative of a
program under chapter 1 or 2 of subpart 2 of
part A; or
``(v) submission of a copy of the student's
biological or adoptive parents' or legal
guardians'--
``(I) certificates of death; or
``(II) verified obituaries;
``(F) if a student does not have, and cannot get,
documentation from any of the designated authorities
described in subparagraph (E) of whether a student may
qualify for an adjustment under sections 479A and
480(d)(1)(I) that will result in a determination of
independence, may base the verification and final
determination on--
``(i) a documented interview with the
student that is limited to whether the student
meets the requirements, and not about the
reasons for the student's situations; and
``(ii) an attestation from the student that
they meet the requirements, which includes a
description of the approximate dates that the
student ended the financial or caregiving
relationship with their parent or legal
guardian, to the best of the student's
knowledge;
``(G) retain all documents related to the
adjustment under sections 479A and 480(d)(1)(I),
including documented interviews, for the duration of
the student's enrollment at the institution and for a
minimum of 1 year after the student is no longer
enrolled at the institution; and
``(H) shall presume that any student who has
obtained an adjustment under sections 479A and
480(d)(1)(I) and a final determination of independence
for a preceding award year at an institution to be
independent for a subsequent award year at the same
institution unless--
``(i) the student informs the institution
that circumstances have changed; or
``(ii) the institution has specific
conflicting information about the student's
independence.''.
(b) Award Year 2023-2024, and Each Subsequent Award Year.--Section
483 of the Higher Education Act of 1965 (20 U.S.C. 1090), as amended by
the FAFSA Simplification Act under section 703 of division FF of Public
Law 116-260, is further amended--
(1) in subsection (b)(1)(A), by inserting the following
before the semicolon: ``, including the special circumstances
under which a student may qualify for a determination of
independence''; and
(2) by adding at the end the following:
``(e) Provisional Independent Students.--
``(1) Requirements for the secretary.--The Secretary
shall--
``(A) enable each student who, based on the special
circumstance specified in subsection (b)(1)(A), may
qualify for an adjustment under section 479A that will
result in a determination of independence under such
section and section 480(d), to complete the forms
developed by the Secretary under subsection (a) as an
independent student for the purpose of a provisional
determination of the student's Federal financial aid
award, but subject to verification under paragraph
(2)(E) for the purpose of the final determination of
the award;
``(B) upon completion of the forms developed by the
Secretary under subsection (a), provide an estimate of
the student's Federal Pell Grant award, based on the
assumption the student is determined to be an
independent student;
``(C) ensure that, on each form developed under
this section, there is a single and easily understood
screening question to identify an applicant for aid who
wishes to provisionally apply for independent status
under sections 479A and 480(d); and
``(D) specify, on the forms, the consequences under
section 490(a) of knowingly and willfully completing
the forms as an independent student under subparagraph
(A) without meeting the special circumstances to
qualify for such a determination.
``(2) Requirements for financial aid administrators.--With
respect to a student accepted for admission who completes the
forms as an independent student under paragraph (1)(A), a
financial aid administrator--
``(A) shall notify the student of the institutional
process and requirements for an adjustment under
sections 479A and 480(d) that will result in a
determination of independence under such sections
within a reasonable time after the student completes
the forms developed by the Secretary under subsection
(a) as an independent student for the purpose of a
provisional determination of the student's Federal
financial aid award;
``(B) may make an adjustment under sections 479A
and 480(d) for a determination of independence in the
absence of conflicting information;
``(C) shall provide a final determination of the
student's Federal financial aid award to the student in
the same manner as, and by not later than the date
that, the administrator provides most other
provisionally independent students their final
determinations of Federal financial aid awards, or
during the award year in which the student initially
submits an application, whichever comes sooner;
``(D) shall, in making a final determination of the
student's Federal financial aid award, use the
discretion provided under sections 479A(c) and 480(d)
to verify whether the student meets the special
circumstances to qualify as an independent student;
``(E) in accordance with paragraph (B), may
consider as adequate verification that a student
qualifies for an adjustment under sections 479A(c) and
480(d)--
``(i) submission of a court order or
official Federal or State documentation that
the student's parent or legal guardian is
incarcerated in any Federal or State penal
institution;
``(ii) a documented phone call with, or a
written statement from--
``(I) a child welfare agency
authorized by a State or county;
``(II) a Tribal child welfare
authority;
``(III) an independent living case
worker; or
``(IV) a public or private agency,
facility, or program serving the
victims of abuse, neglect, assault, or
violence;
``(iii) a documented phone call with, or a
written statement from, an attorney, a guardian
ad litem, or a court appointed special
advocate, documenting that person's
relationship to the student;
``(iv) a documented phone call with, or a
written statement from, a representative of a
program under chapter 1 or 2 of subpart 2 of
part A; or
``(v) submission of a copy of the student's
biological or adoptive parents' or legal
guardians'--
``(I) certificates of death; or
``(II) verified obituaries;
``(F) if a student does not have, and cannot get,
documentation from any of the designated authorities
described in subparagraph (E) of whether a student may
qualify for an adjustment under sections 479A and
480(d) that will result in a determination of
independence, may base the verification and final
determination on--
``(i) a documented interview with the
student that is limited to whether the student
meets the requirements, and not about the
reasons for the student's situations; and
``(ii) an attestation from the student that
they meet the requirements, which includes a
description of the approximate dates that the
student ended the financial or caregiving
relationship with their parent or legal
guardian, to the best of the student's
knowledge;
``(G) retain all documents related to the
adjustment under sections 479A and 480(d), including
documented interviews, for the duration of the
student's enrollment at the institution and for a
minimum of 1 year after the student is no longer
enrolled at the institution; and
``(H) shall presume that any student who has
obtained an adjustment under sections 479A and 480(d)
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.''.
SEC. 302. REVISION OF FAFSA FORM.
(a) Award Year 2022-2023.--Section 483 of the Higher Education Act
of 1965 (20 U.S.C. 1090), as amended by section 301, is further amended
by adding at the end the following:
``(j) Convictions.--The Secretary shall not include any question
about the conviction of an applicant for the possession or sale of
illegal drugs on the FAFSA (or any other form developed under
subsection (a)).''.
(b) Award Year 2023-2024, and Each Subsequent Award Year.--Section
483 of the Higher Education Act of 1965 (20 U.S.C. 1090), as amended by
the FAFSA Simplification Act under section 703 of division FF of Public
Law 116-260, is further amended by adding at the end the following:
``(f) Convictions.--The Secretary shall not include any question
about the conviction of an applicant for the possession or sale of
illegal drugs on the Free Application for Federal Student Aid (or any
other form developed under this section).''.
TITLE IV--FINANCIAL AID SHOPPING SHEET
SEC. 401. SECRETARIAL REQUIREMENTS.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Education, in consultation with
the Secretaries of Defense and Veterans Affairs, shall develop and
finalize a financial shopping sheet that ensures each institution of
higher education provides meaningful information about the financial
cost and quality of such institution to students (including students
who have authorized the Department of Education to send the student's
Institutional Student Information Record to such institution) to assist
such students in determining how to use financial aid to attend such
institution, and which--
(1) is standardized so that it can be used by all
institutions of higher education;
(2) is consumer tested, and presented in a manner that is
simple and easily understandable; and
(3) is personalized for each student who receives such
sheet by including--
(A) the cost of attendance of the educational
program in which the student is enrolled or seeks to be
enrolled;
(B) the type of Federal educational benefits
available to assist in covering such cost of
attendance, including loans and grants under title IV
of the Higher Education Act of 1965;
(C) the amount of financial aid, including Federal,
State, institutional, or other aid that can be used to
assist in covering such cost of attendance;
(D) information about student outcomes for students
who graduate from such educational program, including,
based upon the most recent data available--
(i) the graduation rate;
(ii) the loan repayment rate; and
(iii) the estimated loan debt upon
graduation; and
(E) any other information that facilitates
comparison of aid packages offered by different
institutions of higher education.
(b) Definitions.--In this subsection:
(1) Cost of attendance.--The term ``cost of attendance''
has the meaning given the term in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll).
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
SEC. 402. REQUIREMENTS FOR INSTITUTIONS OF HIGHER EDUCATION.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)) is amended by adding at the end the following:
``(30) The institution will use a financial aid shopping
sheet described in 401(a) of the Achieving Independence through
Degrees Act as its sole financial award letter or include such
sheet as a supplemental cover to such financial award
letter.''.
TITLE V--SNAP AND HIGHER EDUCATION
SEC. 501. SNAP TREATMENT OF LIVING EXPENSES INCLUDED IN EDUCATIONAL
LOANS.
Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is
amended--
(1) in subsection (d)--
(A) in paragraph (3)(B) by striking ``other than''
and inserting ``including''; and
(B) in the proviso of paragraph (5) by striking ``,
and no portion'' and all that follows through
``expenses,''; and
(2) in subsection (k)--
(A) by striking paragraph (3); and
(B) by redesignating paragraph (4) as paragraph
(3).
SEC. 502. ELIGIBILITY OF STUDENTS TO PARTICIPATE IN THE SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM.
Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is
amended--
(1) in subsection (e)--
(A) in paragraph (4), by striking ``employed'' and
inserting ``attending an institution of higher
education (as defined in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)) or employed, in
the aggregate,'';
(B) in paragraph (7), by striking ``or'' at the
end;
(C) in paragraph (8), by striking the period at the
end and inserting a semicolon; and
(D) by adding at the end the following:
``(9) has an expected family contribution of zero, as
determined by the procedures established in part F of title IV
of the Higher Education Act of 1965 (20 U.S.C. 1087kk-1087vv);
or
``(10) is determined to be `independent' based on one of
the criteria specified in subparagraphs (B), (C), (D), (G), and
(H) of section 480(d)(1) of the Higher Education Act (20 U.S.C.
1087vv).''; and
(2) in subsection (o)(2)(A), by striking ``work'' and
inserting ``attending an institution of higher education (as
defined in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002)) or work, in the aggregate,''.
TITLE VI--ADJUSTMENTS TO CAMPUS-BASED STUDENT FINANCIAL AID PROGRAMS
PART 1--FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS
SEC. 601. PURPOSE; APPROPRIATIONS AUTHORIZED.
Section 413A of the Higher Education Act of 1965 (20 U.S.C. 1070b)
is amended--
(1) by amending subsection (a) to read as follows:
``(a) Purpose of Subpart.--It is the purpose of this subpart to--
``(1) provide, through institutions of higher education,
supplemental grants to assist in making available the benefits
of postsecondary education to qualified students who
demonstrate financial need in accordance with the provisions of
part F of this title; and
``(2) to establish demonstration projects at various
institutions of higher education, as defined in section 101, to
determine best practices and policies regarding the
distribution of emergency grant aid to assist students in
completing their program of study, notwithstanding aid they may
have received in accordance with the provisions of part F of
this title.'';
(2) in subsection (b)(1), by striking ``appropriated'' and
all that follows through the end and inserting ``appropriated--
``(A) $1,150,000,000 for fiscal year 2022;
``(B) $1,300,000,000 for fiscal year 2023;
``(C) $1,450,000,000 for fiscal year 2024;
``(D) $1,600,000,000 for fiscal year 2025; and
``(E) $1,750,000,000 for fiscal year 2026 and each
succeeding fiscal year.'';
(3) by redesignating paragraph (2) as paragraph (3); and
(4) by inserting after paragraph (1) the following:
``(2) For the purpose of enabling the Secretary to fund
demonstration projects under section 413(F), there are
allocated, from funds authorized under paragraph (b)(1),
$1,250,000 for fiscal year 2022 and each of the 3 succeeding
fiscal years.''.
SEC. 602. ALLOCATION OF FUNDS.
Section 413D of the Higher Education Act of 1965 (20 U.S.C. 1070b-
3) is amended to read as follows:
``SEC. 413D. ALLOCATION OF FUNDS.
``(a) Allocation Formula for Fiscal Years 2022 Through 2026.--
``(1) In general.--From the amount appropriated under
section 413A(b)(1) for a fiscal year, the Secretary shall
allocate to each institution--
``(A) for fiscal year 2022, an amount equal to the
greater of--
``(i) 90 percent of the amount the
institution received under subsection (a) for
fiscal year 2021, as such subsection was in
effect with respect to such fiscal year (in
this subparagraph referred to as `the 2021
amount for the institution'); or
``(ii) the fair share amount for the
institution determined under subsection (c);
``(B) for fiscal year 2023, an amount equal to the
greater of--
``(i) 80 percent of the 2021 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (c);
``(C) for fiscal year 2024, an amount equal to the
greater of--
``(i) 60 percent of the 2021 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (c);
``(D) for fiscal year 2025, an amount equal to the
greater of--
``(i) 40 percent of the 2021 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (c);
and
``(E) for fiscal year 2026, an amount equal to the
greater of--
``(i) 20 percent of the 2021 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (c).
``(2) Ratable reduction.--
``(A) In general.--If the amount appropriated under
section 413A(b)(1) for a fiscal year is less than the
amount required to be allocated to the institutions
under this subsection, then the amount of the
allocation to each institution shall be ratably
reduced.
``(B) Additional appropriations.--If the amounts
allocated to each institution are ratably reduced under
subparagraph (A) for a fiscal year and additional
amounts are appropriated for such fiscal year, the
amount allocated to each institution from the
additional amounts shall be increased on the same basis
as the amounts under subparagraph (A) were reduced
(until each institution receives the amount required to
be allocated under this subsection).
``(b) Allocation Formula for Fiscal Year 2027 and Each Succeeding
Fiscal Year.--From the amount appropriated under section 413A(b)(1) for
fiscal year 2027 and each succeeding fiscal year, the Secretary shall
allocate to each institution the fair share amount for the institution
determined under subsection (c).
``(c) Determination of Fair Share Amount.--
``(1) In general.--Subject to paragraph (2), the fair share
amount for an institution for a fiscal year shall be equal to
the sum of the institution's undergraduate student need
described in paragraph (2) for the preceding fiscal year.
``(2) Institutional undergraduate student need.--The
undergraduate student need for an institution for a fiscal year
shall be equal to the sum of the following:
``(A) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of Federal Pell Grant funds awarded at the
institution for the preceding fiscal year bears to the
total amount of Federal Pell Grant funds awarded at all
institutions participating under this part for the
preceding fiscal year.
``(B) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of the undergraduate student need at the
institution for the preceding fiscal year bears to the
total amount of undergraduate student need at all
institutions participating under this part for the
preceding fiscal year.
``(3) Eligibility for fair share amount.--The Secretary may
not allocate funds under this part to any institution that, for
2 or more fiscal years during any 3 fiscal year period
beginning not earlier than the first day of the first fiscal
year that is 2 years after the date of the enactment of this
paragraph, has a student population with less than 7 percent of
undergraduate students who are recipients of Federal Pell
Grants.''.
PART 2--FEDERAL WORK-STUDY PROGRAMS
SEC. 610. PURPOSE; AUTHORIZATION OF APPROPRIATIONS.
Section 441 of the Higher Education Act of 1965 (20 U.S.C. 1087-51)
is amended--
(1) in subsection (b), by striking ``part, such sums as may
be necessary for fiscal year 2009 and each of the five
succeeding fiscal years.'' and inserting ``part--
``(1) $1,500,000,000 for fiscal year 2022;
``(2) $1,750,000,000 for fiscal year 2023;
``(3) $2,000,000,000 for fiscal year 2024;
``(4) $2,250,000,000 for fiscal year 2025; and
``(5) $2,500,000,000 for fiscal year 2026 and each
succeeding fiscal year.'';
(2) in subsection (c)--
(A) in paragraph (3), by striking ``and'';
(B) in paragraph (4)(C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(5) work-based learning designed to give students
experience in any activity described in paragraph (1), (2),
(3), or (4), whether or not credit is awarded.''; and
(3) by adding at the end the following:
``(d) Work-Based Learning Defined.--For purposes of this part, the
term `work-based learning' means sustained interactions with industry,
community, or academic professionals in real workplace settings that--
``(1) foster in-depth, first-hand engagement with the tasks
required of a given career field that are aligned to a
student's field of study; and
``(2) may include internships, fellowships, and
apprenticeships.''.
SEC. 611. ALLOCATION FORMULA.
Section 442 of the Higher Education Act of 1965 (20 U.S.C. 1087-52)
is amended to read as follows:
``(a) Reservations.--
``(1) Reservation for improved institutions.--
``(A) Amount of reservation for improved
institutions.--Beginning with the first fiscal year
that is 2 years after the date of the enactment of the
AID Act, for a fiscal year in which the amount
appropriated under section 441(b) exceeds $700,000,000,
the Secretary shall--
``(i) reserve the lesser of--
``(I) an amount equal to 20 percent
of the amount by which the amount
appropriated under section 441(b)
exceeds $700,000,000; or
``(II) $150,000,000; and
``(ii) allocate the amount reserved under
clause (i) to each improved institution in an
amount equal to the greater of the following:
``(I) The amount that bears the
same proportion to the amount reserved
under clause (i) as the total amount of
all Federal Pell Grant funds awarded at
the improved institution for the second
preceding fiscal year bears to the
total amount of Federal Pell Grant
funds awarded at improved institutions
participating under this part for the
second preceding fiscal year.
``(II) $5,000.
``(B) Improved institution described.--For purposes
of this paragraph, an improved institution is an
institution that, on the date the Secretary makes an
allocation under subparagraph (A)(ii)--
``(i) is an institution of higher education
(as defined under section 101);
``(ii) meets the requirements of subsection
(d)(5); and
``(iii) is with respect to--
``(I) the completion rate or
graduation rate of Federal Pell Grant
recipients at the institution, in the
top 75 percent of all institutions
participating under this part for the
preceding fiscal year;
``(II) the percentage of Federal
Pell Grant recipients at the
institution, in the top 50 percent of
the institutions described in subclause
(I); and
``(III) the annual increase in the
completion rate or graduation rate of
Federal Pell Grant recipients at the
institution, in the top 50 percent of
the institutions described in
subclauses (I) and (II).
``(C) Completion rate or graduation rate.--For
purposes of determining the completion rate or
graduation rate under this section, a Federal Pell
Grant recipient who is either a full-time student or a
part-time student shall be counted as a completer or
graduate if, within 150 percent of the normal time for
completion of or graduation from the program, the
student has completed or graduated from the program, or
enrolled in any program of an institution participating
in any program under this title for which the prior
program provides substantial preparation.
``(2) Reservation for grant program.--From the amount
appropriated under section 441(b) for a fiscal year and
remaining after the Secretary reserves funds under subparagraph
(A), the Secretary shall reserve $30,000,000 to carry out
grants under section 449.
``(3) Reallocation of amount returned by improved
institutions.--If an institution returns to the Secretary any
portion of the sums allocated to such institution under this
subsection for any fiscal year, the Secretary shall reallot
such excess to improved institutions on the same basis as under
paragraph (1)(A).
``(4) Publication.--Beginning 1 year after the first
allocations are made to improved institutions under paragraph
(1)(A) and annually thereafter, the Secretary shall make
publicly available--
``(A) a list of the improved institutions that
received funding under such paragraph in the prior
fiscal year;
``(B) the percentage of students at each such
improved institution that are Federal Pell Grant
recipients;
``(C) the completion rate or graduation rate for
the students described in subparagraph (B) with respect
to each such improved institution; and
``(D) a comparison between the information
described in subparagraphs (A), (B), and (C) for the
prior fiscal year for such improved institution, and
such information for the year prior to such year.
``(b) Allocation Formula for Fiscal Years 2022 Through 2026.--
``(1) In general.--From the amount appropriated under
section 441(b) for a fiscal year and remaining after the
Secretary reserves funds under subsection (a), the Secretary
shall allocate to each institution--
``(A) for fiscal year 2022, an amount equal to the
greater of--
``(i) 90 percent of the amount the
institution received under this subsection and
subsection (a) for fiscal year 2022, as such
subsections were in effect with respect to such
fiscal year (in this subparagraph referred to
as `the 2022 amount for the institution'); or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(B) for fiscal year 2023, an amount equal to the
greater of--
``(i) 80 percent of the 2022 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(C) for fiscal year 2024, an amount equal to the
greater of--
``(i) 60 percent of the 2022 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
``(D) for fiscal year 2025, an amount equal to the
greater of--
``(i) 40 percent of the 2022 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d);
and
``(E) for fiscal year 2026, an amount equal to the
greater of--
``(i) 20 percent of the 2022 amount for the
institution; or
``(ii) the fair share amount for the
institution determined under subsection (d).
``(2) Ratable reduction.--
``(A) In general.--If the amount appropriated under
section 441(b) for a fiscal year and remaining after
the Secretary reserves funds under subsection (a) is
less than the amount required to be allocated to the
institutions under this subsection, then the amount of
the allocation to each institution shall be ratably
reduced.
``(B) Additional appropriations.--If the amounts
allocated to each institution are ratably reduced under
subparagraph (A) for a fiscal year and additional
amounts are appropriated for such fiscal year, the
amount allocated to each institution from the
additional amounts shall be increased on the same basis
as the amounts under subparagraph (A) were reduced
(until each institution receives the amount required to
be allocated under this subsection).
``(c) Allocation Formula for Fiscal Year 2027 and Each Succeeding
Fiscal Year.--Except as provided in subsection (d)(5), from the amount
appropriated under section 441(b) for fiscal year 2027 and each
succeeding fiscal year and remaining after the Secretary reserves funds
under subsection (a), the Secretary shall allocate to each institution
the fair share amount for the institution determined under subsection
(d).
``(d) Determination of Fair Share Amount.--
``(1) In general.--Subject to paragraph (2), the fair share
amount for an institution for a fiscal year shall be equal to
the sum of--
``(A) 100 percent of the institution's
undergraduate student need described in paragraph (2)
for the preceding fiscal year; and
``(B) 25 percent of the institution's graduate
student need described in paragraph (3) for the
preceding fiscal year.
``(2) Institutional undergraduate student need.--The
undergraduate student need for an institution for a fiscal year
shall be equal to the sum of the following:
``(A) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of Federal Pell Grant funds awarded at the
institution for the preceding fiscal year bears to the
total amount of Federal Pell Grant funds awarded at all
institutions participating under this part for the
preceding fiscal year.
``(B) An amount equal to 50 percent of the amount
that bears the same proportion to the available
appropriated amount for such fiscal year as the total
amount of the undergraduate student need at the
institution for the preceding fiscal year bears to the
total amount of undergraduate student need at all
institutions participating under this part for the
preceding fiscal year.
``(3) Institutional graduate student need.--The graduate
student need for an institution for a fiscal year shall be
equal to the amount that bears the same proportion to the
available appropriated amount for such fiscal year as the total
amount of the graduate student need at the institution for the
preceding fiscal year bears to the total amount of graduate
student need at all institutions participating under this part
for the preceding fiscal year.
``(4) Eligibility for fair share amount.--The Secretary may
not allocate funds under this part to any institution that, for
two or more fiscal years during any three fiscal year period
beginning not earlier than the first day of the first fiscal
year that is 2 years after the date of the enactment of this
paragraph, has--
``(A) a student population with less than 7 percent
of undergraduate students who are recipients of Federal
Pell Grants; or
``(B) if the institution only enrolls graduate
students, a student population with less than 5 percent
of students that have an expected family contribution
of zero.
``(5) Definitions.--In this subsection:
``(A) Available appropriated amount.--In this
section, the term `available appropriated amount'
means--
``(i) the amount appropriated under section
441(b) for a fiscal year, minus
``(ii) the amounts reserved under
subsection (a) for such fiscal year.
``(B) Average cost of attendance.--The term
`average cost of attendance' means, with respect to an
institution, the average of the attendance costs for a
fiscal year for students which shall include--
``(i) tuition and fees, computed on the
basis of information reported by the
institution to the Secretary, which shall
include--
``(I) total revenue received by the
institution from undergraduate and
graduate tuition and fees for the
second year preceding the year for
which it is applying for an allocation;
and
``(II) the institution's enrollment
for such second preceding year;
``(ii) standard living expenses equal to
150 percent of the difference between the
income protection allowance for a family of
five with one in college and the income
protection allowance for a family of six with
one in college for a single independent
student; and
``(iii) books and supplies, in an amount
not exceeding $1,000.
``(C) Graduate student need.--The term `graduate
student need' means, with respect to a graduate student
for a fiscal year, the lesser of the following:
``(i) The amount equal to (except the
amount computed by this clause shall not be
less than zero)--
``(I) the average cost of
attendance for the preceding fiscal
year, minus
``(II) each such graduate student's
expected family contribution (computed
in accordance with part F of this
title) for the preceding fiscal year.
``(ii) The total loan limit for a Federal
Direct Unsubsidized Stafford Loan.
``(D) Undergraduate student need.--The term
`undergraduate student need' means, with respect to an
undergraduate student for a fiscal year, the lesser of
the following:
``(i) The total of the amount equal to
(except the amount computed by this clause
shall not be less than zero)--
``(I) the average cost of
attendance for the fiscal year, minus
``(II) each such undergraduate
student's expected family contribution
(computed in accordance with part F of
this title) for the preceding fiscal
year.
``(ii) The total loan limit for a Federal
Direct Unsubsidized Stafford Loan and a Federal
Direct Loan.
``(e) Return of Surplus Allocated Funds.--
``(1) In general.--Except with respect to funds returned
under subsection (a)(3), if an institution returns to the
Secretary any portion of the sums allocated to such institution
under this section for any fiscal year, the Secretary shall
reallot such excess to institutions that used at least 10
percent of the total amount of funds granted to such
institution under this section to compensate students employed
during a qualified period of nonenrollment (as such term is
defined in section 443(f)) on the same basis as excess eligible
amounts are allocated under subsection (d).
``(2) Use of funds.--Funds received by institutions
pursuant to this subsection shall be used to compensate
students employed in work-based learning positions.
``(3) Retained funds.--
``(A) Amount returned.--If an institution returns
more than 10 percent of its allocation under paragraph
(1), the institution's allocation for the next fiscal
year shall be reduced by the amount returned.
``(B) Waiver.--The Secretary may waive this
paragraph for a specific institution if the Secretary
finds that enforcing this paragraph would be contrary
to the interest of the program.
``(f) Filing Deadlines.--The Secretary may require applications
under this section, at such time, in such manner, and containing such
information as the Secretary may require.''.
SEC. 612. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
Section 443 of the Higher Education Act of 1965 (20 U.S.C. 1087-53)
is amended--
(1) in subsection (b)--
(A) by amending paragraph (2)(A) to read as
follows:
``(A) for fiscal year 2022 and succeeding fiscal
years, an institution shall (unless the Secretary
determines that enforcing this subparagraph would cause
hardship for students at the institution) use--
``(i) at least 7 percent of the total
amount of funds granted to such institution
under this section for such fiscal year to
compensate students employed in work-based
learning positions; and
``(ii) at least 3 percent of the total
amount of funds granted to such institution
under this section for such fiscal year to
compensate students who have exceptional need
(as defined in section 413C(c)(2)) and are
employed in a work-based learning position
during a qualified period of nonenrollment, as
defined in subsection (f).'';
(B) in paragraph (4)--
(i) by striking ``$300'' and inserting
``$500''; and
(ii) by inserting ``except as provided
under subsection (f),'' before ``provide'';
(C) in paragraph (5), by striking ``75 percent''
each place it appears and inserting ``75 percent in the
first year after the date of the enactment of the AID
Act, 65 percent in the first succeeding fiscal year, 60
percent in the second succeeding fiscal year, 55
percent in the third succeeding fiscal year, and 50
percent each succeeding fiscal year'';
(D) in paragraph (6)--
(i) by inserting ``who demonstrate
exceptional need (as defined in section
413C(c)(2))'' after ``students''; and
(ii) by inserting after ``institution'',
``and prioritize employment for students who
are currently or formerly homeless children and
youths (as such term is defined in section 725
of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a)) or foster care children and
youth'';
(E) in paragraph (7), by striking ``vocational''
and inserting ``career'';
(F) in paragraph (8)(A)(i), by striking ``or
vocational goals'' and inserting ``career goals'';
(G) in paragraph (10), by striking ``; and'' and
inserting a semicolon;
(H) in paragraph (11), by striking the period at
the end and inserting a semicolon; and
(I) by adding at the end the following:
``(12) provide assurances that compensation of students
employed in the work-study program in accordance with the
agreement shall include reimbursement for reasonable travel
(not including the purchase of a vehicle) directly related to
such work-study program;
``(13) provide assurances that the institution will
administer and use feedback from the surveys required under
section 450, to improve the experiences of students employed in
the work-study program in accordance with the agreement;
``(14) provide assurances that the institution will collect
data from students and employers such that the employment made
available from funds under this part will, to the maximum
extent practicable, complement and reinforce the educational
goals or career goals of each student receiving assistance
under this part; and
``(15) provide assurances that if the institution receives
funds under section 442(a)(1)(A), such institution shall--
``(A) use such funds to compensate students
employed in the work-study program in accordance with
the agreement; and
``(B) prioritize the awarding of such funds (and
increasing the amount of each award) to students--
``(i) who demonstrate exceptional need (as
defined in section 413C(c)(2)); and
``(ii) who are employed in work-based
learning opportunities through the work-study
program in accordance with the agreement.'';
(2) in subsection (c)--
(A) by striking paragraph (2);
(B) by inserting after paragraph (1) the following:
``(2) provide assurances that compensation of students
employed in the work-study program in accordance with the
agreement shall include reimbursement for reasonable travel
(not including the purchase of a vehicle) directly related to
such work-study program.''; and
(C) in paragraph (4), by inserting ``and complement
and reinforce the educational goals or career goals of
each student receiving assistance under this part''
after ``academically relevant'';
(3) in subsection (d)(1)--
(A) by striking ``In any academic year to which
subsection (b)(2)(A) applies, an institution shall
ensure that'' and inserting ``An institution may use
the''; and
(B) by striking ``travel'' and inserting
``reasonable travel (not including the purchase of a
vehicle)'';
(4) in subsection (e)(3), by striking ``75'' and inserting
``50''; and
(5) by adding at the end the following:
``(f) Qualified Period of Nonenrollment.--
``(1) In general.--A student may be awarded work-study
employment during a qualified period of nonenrollment if--
``(A) the student demonstrates exceptional need (as
defined in section 413C(c)(2)) in the award year prior
to the qualified period of nonenrollment;
``(B) the student is employed in a work-based
learning position; and
``(C) the employment--
``(i) involves less than 25 percent
administrative work; and
``(ii) is for at least 20 hours per week,
unless the institution waives such
requirement--
``(I) at the request of the
student; or
``(II) based on a finding by the
institution that such requirement
presents a hardship in finding a work-
based learning position for the
student.
``(2) Funds earned.--
``(A) In general.--Any funds earned by a student
(beyond standard living expenses (as such term is
described in section 413D(c)(3)(C))) during the
qualified period of nonenrollment less than or equal to
$2,500 may not be applied to such student's cost of
attendance for the next period in which the student is
enrolled.
``(B) Excess funds.--Any funds earned by a student
(beyond standard living expenses (as such term is
described in section 413D(c)(3)(C))) during the
qualified period of nonenrollment in excess of $2,500
shall be applied to such student's cost of attendance
for the next period in which the student is enrolled.
``(3) Definition of qualified period of nonenrollment.--In
this subsection, the term `qualified period of nonenrollment'
means, with respect to a student, a period of nonenrollment
that--
``(A) occurs between a period of enrollment and a
period of anticipated enrollment; and
``(B) the duration of which is no longer than 6
months.''.
SEC. 613. FLEXIBLE USE OF FUNDS.
Section 445 of the Higher Education Act of 1965 (20 U.S.C. 1087-55)
is amended--
(1) in subsection (a), by adding at the end the following:
``(3) In addition to the carry-over sums authorized under
paragraph (1) of this section, an institution may permit a
student who completed the previous award period to continue to
earn unearned portions of the student's work-study award from
that previous period if--
``(A) any reduction in the student's need upon
which the award was based is accounted for in the
remaining portion; and
``(B) the student is currently employed in a work-
based learning position.''; and
(2) by striking ``10 percent'' both places it appears and
inserting ``20 percent''.
SEC. 614. JOB LOCATION AND DEVELOPMENT PROGRAMS.
(a) Amendments.--Section 446 of the Higher Education Act of 1965
(20 U.S.C. 1087-56) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``10 percent or
$75,000'' and inserting ``20 percent or $150,000''; and
(B) in paragraph (2), by striking ``vocational''
and inserting ``career''; and
(2) in subsection (b)--
(A) by striking paragraphs (1) and (2);
(B) by inserting before paragraph (3) the
following:
``(1) provide satisfactory assurance that the institution
will prioritize placing students with exceptional need (as
defined in section 413C(c)(2)) and Federal work-study
recipients in jobs located and developed under this section;
and
``(2) provide satisfactory assurances that the funds
available under this section will be used to locate and develop
work-based learning positions;''; and
(C) in paragraph (6), by striking the period and
inserting ``, including--
``(A) the number of students employed in work-based
learning positions through such program;
``(B) the number of students demonstrating
exceptional need (as defined in section 413C(c)(2)) and
Federal work-study recipients employed through such
program; and
``(C) the number of students demonstrating
exceptional need (as defined in section 413C(c)(2)) and
Federal work-study recipients employed in work-based
learning positions through such program.''.
(b) Clarification on Carry-Over Authority.--Of the sums granted to
an eligible institution under part C of title IV of the Higher
Education Act (20 U.S.C. 1087-51) for any fiscal year, 10 percent may,
at the discretion of the institution, remain available for expenditure
during the succeeding fiscal year to carry out programs under such
part, including the job location and development programs under section
446 of such Act (20 U.S.C. 1087-56).
SEC. 615. COMMUNITY SERVICE.
Section 447 of the Higher Education Act of 1965 (20 U.S.C. 1087-57)
is amended to read as follows:
``SEC. 447. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK-STUDY
PROGRAMS.
``Each institution participating under this part may use up to 10
percent of the funds made available under section 489(a) and
attributable to the amount of the institution's expenditures under this
part to conduct that institution's program of community service-
learning, including--
``(1) development of mechanisms to assure the academic
quality of the student experience;
``(2) assuring student access to educational resources,
expertise, and supervision necessary to achieve community
service objectives;
``(3) assuring, to the maximum extent practicable, that the
community service-learning program will support the educational
goals or career goals of students participating in such
program;
``(4) collaboration with public and private nonprofit
agencies, and programs assisted under the National and
Community Service Act of 1990 in the planning, development, and
administration of such programs; and
``(5) to recruit and compensate students for community
service-learning (including compensation for time spent in
training and for reasonable travel (not including the purchase
of a vehicle) directly related to such community service).''.
SEC. 616. PILOT GRANT PROGRAM.
Part C of title IV of the Higher Education Act (20 U.S.C. 1087-51
et seq.) is amended by adding at the end the following:
``SEC. 449. WORK-BASED LEARNING OPPORTUNITIES PILOT GRANT PROGRAM.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish a program
to provide grants to eligible institutions participating under
this part to establish or expand a program to develop work-
based learning positions.
``(2) Limitations.--
``(A) Duration.--A grant awarded under this section
shall be for a period of not more than 4 years, but may
be renewed by the Secretary for a period of 2 years.
``(B) Amount.--A grant under this section may not
be in an amount greater than $1,000,000.
``(b) Application.--To be selected to receive a grant under this
section an eligible institution participating under this part shall
submit an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require, including
a plan that describes how the eligible institution will establish or
expand a program to develop work-based learning positions that will--
``(1) benefit students who demonstrate exceptional need (as
defined in section 413C(c)(2));
``(2) identify high-demand occupations (as determined by
the Bureau of Labor and Statistics, State departments of labor,
and local workforce investment boards) and develop partnerships
with high-demand employers (including nonprofit organizations,
for-profit firms, or public agencies);
``(3) involve participating employers in evaluating and
improving such program;
``(4) track and report academic and employment outcomes for
participating students; and
``(5) be able to continue after the end of the grant term.
``(c) Use of Funds.--Grant funds awarded under this program shall
be used to pay wages for students participating under this program and
develop work-based learning positions that--
``(1) are for a period of at least 12 weeks;
``(2) serve students who demonstrate exceptional need (as
defined in section 413C(c)(2));
``(3) limit administrative work to no more than 25 percent
of such position;
``(4) provide a minimum of 15 hours of work per week during
periods of enrollment and 30 hours per week during periods of
nonenrollment, except such requirement may be waived by the
institution in consultation with a student;
``(5) include career coaching from participating employers
(including mock interviews, resume writing assistance, and
counseling on applying for and attaining employment); and
``(6) provide participating students with opportunities to
meet with employers in fields or industries related to those of
participating employers.
``(d) Report.--On a date that is before the date on which the
period of the grant received by an eligible institution under this
section terminates, such institution shall submit a report to the
Secretary including--
``(1) the graduation rate or completion rate (as described
under section 442(a)(1)(C)) with respect to students
participating in work-based learning positions under the pilot
program; and
``(2) the results of the work-based learning opportunities
program for which such institution received such grant,
including--
``(A) participating students' satisfaction with the
program as reported in surveys under section 450;
``(B) the types of jobs in which participating
students were employed and the types of duties
performed in such jobs;
``(C) the academic programs of the participating
students;
``(D) the share of participating students who
worked at another job, in addition to the one under the
pilot program;
``(E) the percentage of participating students who,
during the second quarter after completing their
academic program, are in education or training
activities or unsubsidized employment;
``(F) the percentage of participating students
employed in high-demand occupations within 2 quarters
of completing their academic programs; and
``(G) other items as deemed relevant by the
Secretary.
``(e) Reservation of Funding for Such Program.--From the amount
appropriated under section 441(b) for a fiscal year and remaining after
the Secretary reserves funds under section 442(a)(1), the Secretary
shall reserve $30,000,000 to carry out grants under this section.''.
SEC. 617. DEPARTMENT ACTIVITIES.
Part C of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087-51 et seq.) is further amended by adding at the end the following:
``SEC. 450. DEPARTMENT ACTIVITIES.
``(a) Surveys.--Not later than 1 year after the date of the
enactment of this section, the Secretary shall develop, in consultation
with work-study administrators from institutions of higher education,
participating employers, and participating students--
``(1) a consumer-tested electronic survey for students
awarded work-study employment under the Federal work-study
program under this part that, not less than once every 4
years--
``(A) measures each such student's satisfaction
with the Federal work-study program, including--
``(i) any complaints the student has with
respect to the program;
``(ii) the amount and quality of the on-
the-job training the student received;
``(iii) the amount and quality of on-the-
job supervision and employer feedback the
student received;
``(iv) the amount and quality of
information provided by the institution about
the work-study program and job opportunities
and the availability of work-study staff at the
institution;
``(v) the quality of the assistance
provided by the institution to the student in
finding a work-study job and the availability
of types of jobs; and
``(vi) the student's overall satisfaction
with the work-study program;
``(B) measures the applicability of work-study
employment to the educational goals and career goals of
each such student;
``(C) elicits an assessment by each such student of
the capacity to manage time between work-study
employment and coursework;
``(D) measures, with respect to the program--
``(i) the award amounts under the program;
``(ii) the average number of hours students
worked per week, and the wages received for
such work;
``(iii) the number of on campus jobs and
off campus jobs;
``(iv) how students located work-study
positions;
``(v) the work performed at each job;
``(vi) whether students worked additional
jobs while employed in a work-study job (and
the reason for such additional job);
``(vii) whether the work-study employment
had an impact on the student's academic
performance; and
``(viii) the voluntarily disclosed
demographics of students awarded work-study
employment; and
``(E) includes such information as the Secretary
may require;
``(2) a consumer-tested electronic survey for employers of
students described in paragraph (1) that--
``(A) measures each such employer's satisfaction
with the Federal work-study program, including--
``(i) the extent to which the employer is
satisfied with its ability to accommodate
students' schedules;
``(ii) the extent to which student-
employees are prepared for the duties
advertised for the job; and
``(iii) the extent to which the employer is
satisfied with opportunities to make
recommendations for improving institutions'
academic programs;
``(B) elicits an assessment by each such employer
of--
``(i) any complaints the employer had with
respect to the program;
``(ii) any skills or knowledge necessary
for the job that student-employees are lacking;
and
``(iii) the extent of outreach from
institutions to the employer; and
``(C) includes such information as the Secretary
may require; and
``(3) a consumer-tested electronic survey that, not less
than once every 4 years, with respect to each institution of
higher education participating in the Federal work-study
program, measures--
``(A) methods used to recruit on-campus and off-
campus employers;
``(B) if an institution operates a job location
development program--
``(i) the share of jobs filled on-campus
and off-campus;
``(ii) the share of jobs filled by--
``(I) work-study recipients; and
``(II) students who demonstrate
exceptional need (as defined in section
413C(c)(2));
``(iii) the primary factors considered in
matching work-study students and jobs;
``(iv) the share of students employed in
work-based learning opportunities; and
``(v) the share of students employed during
qualified periods of nonenrollment, including
the share of students with exceptional need (as
defined in section 413C(c)(2)) employed during
qualified periods of nonenrollment;
``(C) the institution's Federal and non-Federal
contributions toward work-study wages;
``(D) the primary factors considered in awarding
students work-study and in determining the amount of
the award;
``(E) the acceptance rate among students who were
offered work-study aid; and
``(F) other information the Secretary may require.
``(b) Results.--The Secretary shall develop an online portal--
``(1) for students, employers, and institutions of higher
education to access the surveys required under subsection (a);
and
``(2) to compile the results of such surveys.
``(c) Report.--Not less than once every 4 years after the date of
the enactment of this subsection, the Secretary shall submit a report
to Congress that includes--
``(1) the data collected under this section (redacted for
personal information);
``(2) with respect to students employed in work-study
through the Federal work-study program--
``(A) the types of jobs such students participated
in;
``(B) the average hours worked per week;
``(C) the average award amount;
``(D) the average wage rates;
``(E) the extent to which students enter employment
with skills and knowledge gained from work-study
participation that have prepared them for the job; and
``(F) the students' satisfaction with the program
and primary complaints;
``(3) the extent to which institutions conduct outreach to
employers and engage them in discussions on improving academic
programs;
``(4) the extent to which institutions conduct outreach to
students and make jobs readily available;
``(5) the extent to which the work-study employment aligns
with students' academic programs or career goals;
``(6) the employers' satisfaction with the program and
primary complaints; and
``(7) recommendations for improving the program.
``(d) Consultation.--In consulting with the entities described in
subsection (a) to create the electronic surveys required under such
subsection, the Secretary shall engage with--
``(1) a representative sample of institutions of higher
education participating in the Federal work-study program;
``(2) a representative sample of employers participating in
the Federal work-study program; and
``(3) a representative sample of students participating in
the Federal work-study program.
``(e) Technical Assistance.--The Secretary shall--
``(1) provide technical assistance to institutions
participating under the Federal work-study program under this
part to--
``(A) comply with the amendments made by part B of
title VI of the AID Act and the regulations issued
pursuant to this subtitle;
``(B) administer the surveys described in
subsection (a) to students and employers participating
in the Federal work-study program;
``(C) ensure that Federal work-study positions
align with students' educational goals or career goals
to the maximum extent practicable; and
``(D) satisfy the requirements under section
443(b)(7); and
``(2) issue guidance and provide technical assistance to
institutions to support improved partnerships and coordination
among financial aid, career services, and academic advisors to
administer the Federal work-study program.
``(f) Response Rate.--In the case of an institution participating
under the Federal work-study program under this part with a response
rate for students and employers with respect to the surveys described
in subsection (a)(1) of less than 75 percent, the Secretary shall
require such institution--
``(1) to submit to the Secretary an improvement plan to
increase such response rate; and
``(2) if the response rate has not improved 2 years after
the date on which an improvement plan was submitted under
paragraph (1), submit to the Secretary a revised improvement
plan.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated $2,000,000 to carry out subsection (a).''.
SEC. 618. STUDY AND REPORT.
(a) Study.--Not later than 180 days after the date of the enactment
of this Act, the Comptroller General of the United States shall conduct
a study on best practices for assisting students participating in the
Federal work-study program under part C of title IV of the Higher
Education Act (42 U.S.C. 1087-51 et seq.) with--
(1) connecting to off-campus employers;
(2) procuring work-based learning opportunities through
such program;
(3) procuring employment that aligns with students'
educational goals or career goals;
(4) locating employment through job location and
development programs;
(5) procuring employment in high-demand occupations;
(6) balancing employment with academic programs to improve
graduation and completion rates; and
(7) with respect to students with exceptional need (as
defined in section 413C(c)(2) of the Higher Education Act of
1965 (20 U.S.C. 1070b-2(c)(2)))--
(A) locating and coordinating work-study employment
during qualified periods of nonenrollment;
(B) increasing participation of such students in
such work-study program; and
(C) limiting the need for additional employment
outside the work-study program.
(b) Report.--Not later than one year after the date on which the
study required under subsection (a) is completed, the Comptroller
General of the United States shall submit to Congress a report
summarizing the findings of such study.
(c) Publish Report.--The Comptroller General of the United States
shall make the report required under subsection (b) available to the
public on the website of the Government Accountability Office.
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