S.Amdt. 2533

SA 2533. Mr. ALEXANDER submitted an amendment intended to be proposed
to amendment SA 2499 proposed by Mr. McConnell to the bill S. 178, to
condemn gross human rights violations of ethnic Turkic Muslims in
Xinjiang, and calling for an end to arbitrary detention, torture, and
harassment of these communities inside and outside China; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--STUDENT LOAN REPAYMENT AND FAFSA SIMPLIFICATION

SEC. __. SHORT TITLE.

This title may be cited as the ``Student Loan Repayment and
FAFSA Simplification Act''.

SEC. __. SIMPLIFYING STUDENT LOAN REPAYMENT.

(a) In General.--Section 455 of the Higher Education Act of
1965 (20 U.S.C. 1087e) is amended--
(1) in subsection (d)(1)--
(A) in subparagraph (D), by striking ``and'' after the
semicolon;
(B) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(F) notwithstanding any other provision of law, in the
case of a loan described in subsection (a) that enters
repayment on or after October 1, 2020, or for which a
borrower seeks to change to a different repayment plan on or
after October 1, 2020, only a repayment plan described in
subsection (r).''; and
(2) by adding at the end the following:
``(r) Repayment.--
``(1) In general.--For loans described under subsection (a)
that enter repayment on or after October 1, 2020, or for
which the borrower seeks to change to a different repayment
plan on or after October 1, 2020, only the following
repayment options shall be made available:
``(A) A standard repayment plan, with a fixed annual
repayment amount paid over a fixed period of time, not to
exceed 10 years.
``(B) An income determined repayment plan, with an annual
repayment amount in the amount determined in accordance with
paragraph (2).
``(2) Income determined repayment plans.--
``(A) In general.--An income determined repayment plan
under paragraph (1)(B) shall require a borrower to pay an
amount equal to 10 percent of the result obtained by
calculating, on at least an annual basis, the amount by
which--
``(i) the borrower's, and the borrower's spouse's (if
applicable), adjusted gross income; exceeds
``(ii) 150 percent of the poverty line applicable to the
borrower's family size as determined under section 673(2) of
the Community Services Block Grant Act (42 U.S.C. 9902(2)).
``(B) Exceptions.--
``(i) Reduction for certain borrowers.--For a borrower, and
the borrower's spouse (if applicable), whose adjusted gross
income exceeds 800 percent of the poverty line applicable to
the borrower's family size as determined under section 673(2)
of the Community Services Block Grant Act (42 U.S.C.
9902(2)), the percentage amount calculated under subparagraph
(A)(ii) shall decrease by 5 percent for each percentage point
that the borrower's adjusted gross income exceeds 800 percent
until the percentage amount calculated under subparagraph
(A)(ii) is zero.
``(ii) Unavailability to certain borrowers.--The plan
described in paragraph (1)(B) shall not be available to the
borrower of a Federal Direct PLUS Loan made on behalf of a
dependent student or a Federal Direct Consolidation Loan, if
proceeds of such loan were used to discharge the liability on
such Federal Direct PLUS Loan or a Federal PLUS Loan made
under part B on behalf of a dependent student.
``(C) Repayment period.--The amount of time a borrower is
permitted to repay such loans under paragraph (1)(B) may
exceed 10 years.
``(D) Loan forgiveness.--
``(i) In general.--The Secretary shall repay or cancel any
outstanding balance of principal and interest due on any loan
repaid under the repayment plan described under paragraph
(1)(B)--

``(I) for any undergraduate borrower who has made payments
under such plan for 20 years; or
``(II) for any graduate borrower who has made payments
under such plan for 25 years.

``(ii) Limitation.--Any period of time in which a borrower
is in delinquency or default shall not count toward the
repayment or cancellation described in clause (i).
``(3) Monthly payments.--The Secretary shall determine the
borrower's monthly payment obligation to satisfy the payment
amount determined in accordance with subparagraphs (A) or (B)
of paragraph (1).
``(4) Borrower choice.--A borrower who is repaying a loan
under paragraph (1)(B) may elect, at any time, to terminate
repayment pursuant to the income determined repayment plan
and repay such loan under the standard repayment plan under
paragraph (1)(A).''.
(b) Public Service Loan Forgiveness Rules for Income-
determined Repayment Plans.--Section 455(m) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(m)) is amended--
(1) in paragraph (1)(A)--
(A) in clause (iii), by striking ``or'' after the
semicolon;
(B) in clause (iv), by striking ``; and'' and inserting ``;
or''; and
(C) by adding at the end the following:
``(v) payments under an income determined repayment plan or
a standard repayment plan under subsection (r), except as
provided in paragraph (3); and'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) Exception.--
``(A) In general.--To be eligible for loan cancellation
under this subsection, a borrower who elects an income
determined repayment plan under subsection (r) shall remain
in such plan for the duration of repayment until such loan is
cancelled.
``(B) Required notification and acknowledgment.--
``(i) Notification.--If a borrower who has elected an
income determined repayment plan under subsection (r)
subsequently indicates that the borrower wishes to change
repayment plans, the Secretary shall notify the borrower that
changing repayment plans will cause any monthly payments made
prior to such change to not qualify toward the 120 monthly
payments required for loan cancellation under this
subsection.
``(ii) Acknowledgment.--The Secretary shall require
acknowledgment of receipt of the notification under clause
(i) from any borrower who has elected an income determined
repayment plan under subsection (r) and subsequently
indicates that the borrower wishes to change repayment
plans.''.
(c) Certification.--
(1) In general.--Notwithstanding any other provision of
law, a borrower of a loan made, insured, or guaranteed under
part B or D of title IV of the Higher Education Act of 1965
(20 U.S.C. 1071 et seq.; 1087a et seq.) wishing to enter into
an income determined repayment plan, as defined in section
455(r) of the Higher Education Act of 1965 (20 U.S.C.
1087e(r)) may self-certify that the borrower is unemployed
for the purposes of determining a zero payment.
(2) Termination.--This subsection shall have no effect
after December 31, 2020.
(3) Audit.--
(A) In general.--Not later than December 31, 2021, the
Secretary of Education shall select a portion of borrowers
who self certify under paragraph (1) in order to determine
the validity of those self-certifications.
(B) Notice.--The Secretary of Education shall inform each
borrower who selects to self certify under paragraph (1) that
the Secretary may audit the borrower's self-certification.
(4) Exemption.--Notwithstanding any other provisions of
law, the provisions of this section shall not be subject to
negotiated rulemaking as defined in section 492 of the Higher
Education Act of 1965 (20 U.S.C. 1098a).

SEC. __. MAKING IT EASIER TO APPLY FOR FEDERAL AID AND MAKING
THAT AID PREDICTABLE.

(a) Need Analysis.--
(1) In general.--Section 471 of the Higher Education Act of
1965 (20 U.S.C. 1087kk) is amended to read as follows:

``SEC. 471. AMOUNT OF NEED.

``(a) In General.--Except as otherwise provided therein,
beginning with award year 2022-2023, the amount of need of
any student for financial assistance under this title (except
subpart 1 or 2 of part A) is equal to--
``(1) the cost of attendance of such student, minus
``(2) the student aid index (as defined in section 473) for
such student, minus
``(3) other financial assistance not received under this
title (as defined in section 480(j)).
``(b) Effective Date of Changes.--The amendments made to
this title under the Student Loan Repayment and FAFSA
Simplification Act shall take effect beginning with award
year 2022-2023. The amounts provided under such amendments
for award year 2020-2021 shall be used solely as a base to
determine adjustments for subsequent award years.''.
(2) Maximum aid under part d.--Section 451 of the Higher
Education Act of 1965 (20 U.S.C. 1087a) is amended by adding
at the end the following:
``(c) Maximum Aid.--The maximum dollar amount of financial
assistance provided under this part to a student shall not
exceed the cost of attendance for such student.''.
(3) Guidance to states.--The Secretary of Education shall
issue guidance for States on interpretation and
implementation of the terminology and formula adjustments
made under the amendments made by this Act, including the
student aid index, formerly known as the expected family
contribution, and the need analysis formulas.
(b) Cost of Attendance and Student Aid Index.--Sections 472
and 473 of the Higher Education Act of 1965 (20 U.S.C. 1087ll
and 1087mm) are amended to read as follows:

``SEC. 472. COST OF ATTENDANCE.

``(a) In General.--For the purpose of this title, the term
`cost of attendance' means--
``(1) tuition and fees normally assessed a student carrying
the same academic workload as determined by the institution,
and

[[Page S4810]]

including costs for rental or purchase of any equipment,
materials, or supplies required of all students in the same
course of study;
``(2) an allowance for books, supplies, and transportation,
including a reasonable allowance for the documented rental or
purchase of suggested electronic equipment, as determined by
the institution;
``(3) an allowance for miscellaneous personal expenses, for
a student attending the institution on at least a half-time
basis, as determined by the institution;
``(4) an allowance for living expenses, including food and
housing costs, to be incurred by the student attending the
institution on at least a half-time basis, as determined by
the institution, which includes--
``(A) for students electing institutionally owned or
operated food services, such as board or meal plans, shall be
a standard allowance for such services that provides the
equivalent of three meals each day;
``(B) for students not electing institutionally owned or
operated food services, such as board or meal plans, shall be
a standard allowance for purchasing food off campus that
provides the equivalent of three meals each day, which shall
not exceed the standard allowance provided in paragraph (A);
``(C) for students without dependents residing in
institutionally owned or operated housing, shall be a
standard allowance determined by the institution based on
average or median amount assessed to such residents for
housing charges, whichever is greater;
``(D) for students with dependents residing in
institutionally owned or operated housing, shall be a
standard allowance determined by the institution based on the
average or median amount assessed to such residents for
housing charges, whichever is greater;
``(E) for students living off campus, and not in
institutionally owned or operated housing, shall be a
standard allowance for rent or other housing costs, which, if
applicable, shall not exceed the standard allowance provided
in paragraph (C) or (D) with respect to whether the student
has dependents;
``(F) for dependent students residing at home with parents
shall be a standard allowance determined by the institution;
``(G) for students who live in housing located on a
military base or for which a basic allowance is provided
under section 403(b) of title 37, United States Code, shall
be a standard allowance for food based upon a student's
choice of purchasing food on-campus or off-campus (determined
respectively in accordance with subparagraph (A) or (B)), but
not for housing costs; and
``(H) for all other students shall be an allowance based on
the expenses reasonably incurred by such students for housing
and food;
``(5) for a student engaged in a program of study by
correspondence, only tuition and fees and, if required, books
and supplies, travel, and housing and food costs incurred
specifically in fulfilling a required period of residential
training;
``(6) for incarcerated students, only tuition, fees, books,
supplies, and the cost of obtaining a license, certification,
or a first professional credential in accordance with
paragraph (13);
``(7) for a student enrolled in an academic program in a
program of study abroad approved for credit by the student's
home institution, reasonable costs associated with such study
(as determined by the institution at which such student is
enrolled);
``(8) for a student with one or more dependents, an
allowance based on the estimated actual expenses incurred for
such dependent care, based on the number and age of such
dependents, except that--
``(A) such allowance shall not exceed the reasonable cost
in the community in which such student resides for the kind
of care provided; and
``(B) the period for which dependent care is required
includes, but is not limited to, class-time, study-time,
field work, internships, and commuting time;
``(9) for a student with a disability, an allowance (as
determined by the institution) for those expenses related to
the student's disability, including special services,
personal assistance, transportation, equipment, and supplies
that are reasonably incurred and not provided for by other
assisting agencies;
``(10) for a student receiving all or part of the student's
instruction by means of telecommunications technology, no
distinction shall be made with respect to the mode of
instruction in determining costs;
``(11) for a student engaged in a work experience under a
cooperative education program, an allowance for reasonable
costs associated with such employment (as determined by the
institution);
``(12) for a student who receives a Federal student loan
made under this title or any other Federal law, to cover a
student's cost of attendance at the institution, an allowance
for the actual cost of any loan fee, origination fee, or
insurance premium charged to such student or such parent on
such loan; and
``(13) for a student in a program requiring professional
licensure, certification, or a first professional credential
the cost of obtaining the license, certification, or a first
professional credential.
``(b) Special Rule for Living Expenses for Less-than-half-
time Students.--An institution of higher education may
include an allowance for living expenses, including food and
housing costs in accordance with subsection (a)(4) for up to
three semesters, or the equivalent, with no more than two
semesters being consecutive.
``(c) Disclosure of Cost of Attendance Elements.--Each
institution shall make publicly available on the
institution's website a list of all the elements of cost of
attendance described in subsection (a), including, for a
student with one or more dependents, an allowance based on
the estimated actual expenses incurred for dependent care, as
described in subsection (a)(8).

``SEC. 473. SPECIAL RULES FOR STUDENT AID INDEX.

``(a) In General.--For the purpose of this title, other
than subpart 1 or 2 of part A, the term `student aid index'
means, with respect to a student, an index that reflects an
evaluation of a student's approximate financial resources to
contribute toward the student's postsecondary education for
the academic year, as determined in accordance with this
part.
``(b) Special Rule for Students Eligible for the Total
Maximum Pell Grant.--The Secretary shall consider an
applicant to automatically have a student aid index equal to
zero if the applicant is eligible for the total maximum
Federal Pell Grant under subpart 1 of part A, except that, if
the applicant has a calculated student aid index of less than
zero the Secretary shall consider the negative number as the
student aid index for the applicant.
``(c) Special Rule for Nonfilers.--For an applicant (or, as
applicable, an applicant and spouse, or an applicant's
parents) who is not required to file a Federal tax return for
the second preceding tax year, the Secretary shall for the
purposes of this title consider the student aid index as
equal to -$1,500 for the applicant.
``(d) Special Rule for Recipients of Means-Tested
Benefits.--For an applicant (including the student, the
student's parent, or the student's spouse, as applicable) who
at any time during the previous 24-month period, received a
benefit under a means-tested Federal benefit program, the
Secretary shall consider an applicant to automatically have a
student aid index equal to zero, except if the applicant has
a calculated student aid index of less than zero the
Secretary shall consider the negative number as the student
aid index for the applicant.
``(e) Means-Tested Federal Benefit Program.--In this
section, the term `means-tested Federal benefit program'
means any of the following:
``(1) The supplemental security income program under title
XVI of the Social Security Act (42 U.S.C. 1381 et seq.).
``(2) The supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
``(3) The program of block grants for States for temporary
assistance for needy families established under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.).
``(4) The special supplemental nutrition program for women,
infants, and children established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786).
``(5) The Medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
``(6) Federal housing assistance programs, including
tenant-based assistance under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)), and public
housing, as defined in section 3(b)(1) of such Act (42 U.S.C.
1437a(b)(1)).
``(7) Other means-tested programs determined by the
Secretary to be approximately consistent with the income
eligibility requirements of the means-tested programs under
paragraphs (1) through (6).
``(f) Special Rule for Nonfilers Who Are Also Recipients of
Means-tested Benefits.--For an applicant (or, as applicable,
and applicant and spouse, or an applicant's parents) who is
not required to file a Federal tax return for the second
preceding tax year and who at any time during the previous
24-month period received a benefit under a means-tested
Federal benefit program, the Secretary shall, for the
purposes of this title, consider the student aid index as
equal to -$1,500 for the applicant.''.
(c) Determination of Student Aid Index.--Section 474 of the
Higher Education Act of 1965 (20 U.S.C. 1087nn) is amended to
read as follows:

``SEC. 474. DETERMINATION OF STUDENT AID INDEX.

``The student aid index--
``(1) for a dependent student shall be determined in
accordance with section 475;
``(2) for a single independent student or a married
independent student without dependents (other than a spouse)
shall be determined in accordance with section 476; and
``(3) for an independent student with dependents other than
a spouse shall be determined in accordance with section
477.''.
(d) Student Aid Index for Dependent Students.--Section 475
of the Higher Education Act of 1965 (20 U.S.C. 1087oo) is
amended to read as follows:

``SEC. 475. STUDENT AID INDEX FOR DEPENDENT STUDENTS.

``(a) Computation of Student Aid Index.--
``(1) In general.--For each dependent student, the student
aid index is equal to (except as provided in paragraph (2))
the sum of--
``(A) the assessment of the parents' adjusted available
income (determined in accordance with subsection (b));
``(B) the assessment of the student's available income
(determined in accordance with subsection (g)); and

[[Page S4811]]

``(C) the student's available assets (determined in
accordance with subsection (h)).
``(2) Exception.--If the sum determined under paragraphs
(1), with respect to a dependent student, is less than
-$1,500, the student aid index for the dependent student
shall be -$1,500.
``(b) Assessment of Parents' Adjusted Available Income.--
The assessment of parents' adjusted available income is equal
to the amount determined by--
``(1) computing adjusted available income by adding--
``(A) the parents' available income (determined in
accordance with subsection (c)); and
``(B) the parents' available assets (determined in
accordance with subsection (d));
``(2) assessing such adjusted available income in
accordance with the assessment schedule set forth in
subsection (e); and
``(3) considering such assessment resulting under paragraph
(2) as the amount determined under this subsection.
``(c) Parents' Available Income.--
``(1) In general.--The parents' available income is
determined by subtracting from total income (as defined in
section 480)--
``(A) Federal income taxes;
``(B) an allowance for payroll taxes, determined in
accordance with paragraph (2);
``(C) an income protection allowance, determined in
accordance with paragraph (3); and
``(D) an employment expense allowance, determined in
accordance with paragraph (4).
``(2) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the total amount earned by the parents, multiplied by
the rate of tax under section 3101(b) of the Internal Revenue
Code of 1986; and
``(B) the amount earned by the parents that does not exceed
such contribution and benefit base (twice such contribution
and benefit base, in the case of a joint return) for the year
of the earnings, multiplied by the rate of tax applicable to
such earnings under section 3101(a) of the Internal Revenue
Code of 1986.
``(3) Income protection allowance.--The income protection
allowance for award year 2021-2022 and each succeeding award
year shall equal the amount determined in the following
table, as adjusted by the Secretary pursuant to section
478(b):

``Income Protection Allowance 2021-2022 (to be adjusted for 2022-2023
and succeeding years)
------------------------------------------------------------------------
Family Size (including student)                   Amount
------------------------------------------------------------------------
2..........................................................      $19,080
3..........................................................      $23,760
4..........................................................      $29,340
5..........................................................      $34,620
6..........................................................      $40,490
For each additional add....................................      $4,750.
------------------------------------------------------------------------

``(4) Employment expense allowance.--The employment expense
allowance is equal to the lesser of $4,000 or 35 percent of
the single parent's earned income or married parents'
combined earned income (or is equal to a successor amount as
adjusted by the Secretary pursuant to section 478(g)).
``(d) Parents' Available Assets.--
``(1) In general.--
``(A) Determination.--Except as provided in subparagraph
(B), the parents' available assets are equal to--
``(i) the difference between the parents' net assets and
the education savings and asset protection allowance
(determined in accordance with paragraph (2)); multiplied by
``(ii) 12 percent.
``(B) Not less than zero.--Parents' available assets under
this subsection shall not be less than zero.
``(2) Education savings and asset protection allowance.--
The education savings and asset protection allowance is
calculated according to the following table (or a successor
table prescribed by the Secretary under section 478(d)):

``Education Savings and Asset Protection Allowances for Parents of
Dependent Students
------------------------------------------------------------------------
And there are
-------------------------------------
If the age of the oldest parent      two parents         one parent
is--                -------------------------------------
then the
allowance is--
------------------------------------------------------------------------
25 or less........................                 $0                 $0
26................................               $300               $100
27................................               $700               $200
28................................             $1,000               $300
29................................             $1,300               $500
30................................             $1,600               $600
31................................             $2,000               $700
32................................             $2,300               $800
33................................             $2,600               $900
34................................             $2,900             $1,000
35................................             $3,300             $1,100
36................................             $3,600             $1,200
37................................             $3,900             $1,300
38................................             $4,200             $1,500
39................................             $4,600             $1,600
40................................             $4,900             $1,700
41................................             $5,100             $1,700
42................................             $5,200             $1,700
43................................             $5,300             $1,800
44................................             $5,400             $1,800
45................................             $5,500             $1,900
46................................             $5,700             $1,900
47................................             $5,800             $1,900
48................................             $6,000             $2,000
49................................             $6,100             $2,000
50................................             $6,300             $2,100
51................................             $6,400             $2,100
52................................             $6,600             $2,200
53................................             $6,800             $2,200
54................................             $6,900             $2,300
55................................             $7,100             $2,300
56................................             $7,300             $2,400
57................................             $7,500             $2,500
58................................             $7,700             $2,500
59................................             $7,900             $2,600
60................................             $8,200             $2,700
61................................             $8,400             $2,700
62................................             $8,600             $2,800
63................................             $8,900             $2,900
64................................             $9,200             $2,900
65 or more........................             $9,400            $3,000.
------------------------------------------------------------------------

``(e) Assessment Schedule.--The assessment of the parents'
adjusted available income (as determined under subsection
(b)(1) and hereafter in this subsection referred to as `AAI')
is calculated according to the following table (or a
successor table prescribed by the Secretary under section
478(e)):

``Parents' Contribution From AAI
------------------------------------------------------------------------
Then the parents' contribution
If the parents' AAI is--                  from AAI is--
------------------------------------------------------------------------
Less than -$6,820......................  -$1,500
-$6,820 to $17,000.....................  22% of AAI
$17,001 to $21,400.....................  $3,740 + 25% of AAI over
$17,000
$21,401 to $25,700.....................  $4,840 + 29% of AAI over
$21,400
$25,701 to $30,100.....................  $6,087 + 34% of AAI over
$25,700
$30,101 to $34,500.....................  $7,583 + 40% of AAI over
$30,100
$34,501 or more........................  $9,343 + 47% of AAI over
$34,500.
------------------------------------------------------------------------

``(f) Consideration of Parental Income.--
``(1) Parents who live together.--Parental income and
assets in the case of student whose parents are married and
not separated, or who are unmarried but live together, shall
include the income and assets of both parents.
``(2) Divorced or separated parents.--Parental income and
assets for a student whose parents are divorced or separated,
but not remarried, is determined by including only the income
and assets of the parent who provides the greater portion of
the student's financial support.
``(3) Death of a parent.--Parental income and assets in the
case of the death of any parent is determined as follows:
``(A) If either of the parents has died, the surviving
parent shall be considered a single parent, until that parent
has remarried.
``(B) If both parents have died, the student shall not
report any parental income or assets.
``(4) Remarried parents.--If a parent whose income and
assets are taken into account under paragraph (2), or if a
parent who is a widow or widower and whose income is taken
into account under paragraph (3), has remarried, the income
of that parent's spouse shall be included in determining the
parent's assessment of adjusted available income if the
student's parent and the stepparent are married as of the
date of application for the award year concerned.
``(5) Single parent who is not divorced or separated.--
Parental income and assets in the case of a student whose
parent is a single parent but who is not divorced, separated,
or remarried, shall include the income and assets of such
single parent.
``(g) Student's Available Income.--
``(1) In general.--The student's available income is equal
to--
``(A) the difference between the student's total income
(determined in accordance with section 480) and the
adjustment to student income (determined in accordance with
paragraph (2)); multiplied by
``(B) 50 percent.

[[Page S4812]]

``(2) Adjustment to student income.--The adjustment to
student income is equal to the sum of--
``(A) Federal income taxes;
``(B) an allowance for payroll taxes determined in
accordance with paragraph (3);
``(C) an income protection allowance that is equal to--
``(i) $9,110 for award year 2021-2022; and
``(ii) for each succeeding award year, the amount adjusted
pursuant to section 478(b); and
``(D) an allowance for parents' negative available income,
determined in accordance with paragraph (4).
``(3) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the total amount earned by the student, multiplied by
the rate of tax under section 3101(b) of the Internal Revenue
Code of 1986; and
``(B) the amount earned by the student that does not exceed
such contribution and benefit base for the year of the
earnings, multiplied by the rate of tax applicable to such
earnings under section 3101(a) of the Internal Revenue Code
of 1986.
``(4) Allowance for parents' negative available income.--
The allowance for parents' negative available income is the
amount, if any, by which the sum of the amounts deducted
under subsection (c)(1) exceeds the sum of the parents' total
income (as defined in section 480) and the parents' available
assets (as determined in accordance with subsection (d)).
``(h) Student's Assets.--The student's assets are
determined by calculating the net assets of the student and
multiplying such amount by 20 percent, except that the result
shall not be less than zero.''.
(e) Student Aid Index for Independent Students Without
Dependents Other Than a Spouse.--Section 476 of the Higher
Education Act of 1965 (20 U.S.C. 1087pp) is amended to read
as follows:

``SEC. 476. STUDENT AID INDEX FOR INDEPENDENT STUDENTS
WITHOUT DEPENDENTS OTHER THAN A SPOUSE.

``(a) Computation of Student Aid Index.--
``(1) In general.--For each independent student without
dependents other than a spouse, the student aid index is
equal to (except as provided in paragraph (2)) the sum of--
``(A) the family's available income (determined in
accordance with subsection (b)); and
``(B) the family's available assets (determined in
accordance with subsection (c)).
``(2) Exception.--If the sum of paragraphs (1) with respect
to a independent student without dependents other than a
spouse is less than -$1,500, the student aid index for the
independent student shall be -$1,500.
``(b) Family's Available Income.--
``(1) In general.--The family's available income is
determined by--
``(A) deducting from total income (as defined in section
480)--
``(i) Federal income taxes;
``(ii) an allowance for payroll taxes, determined in
accordance with paragraph (2);
``(iii) an income protection allowance that is equal to--

``(I) in the case of a single independent student without
dependents--

``(aa) $14,190 for award year 2021-2022; and
``(bb) for each succeeding award year, the amount adjusted
pursuant to section 478(b); and

``(II) in the case of a married independent student without
dependents--

``(aa) $22,750 for award year 2021-2022; and
``(bb) for each succeeding award year, the amount adjusted
pursuant to section 478(b); and
``(iv) in the case of a married independent student, an
employment expense allowance, as determined in accordance
with paragraph (3); and
``(B) multiplying the amount determined under subparagraph
(A) by 50 percent.
``(2) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the total amount earned by the student (and spouse,
if appropriate), multiplied by the rate of tax under section
3101(b) of the Internal Revenue Code of 1986; and
``(B) the amount earned by the student (and spouse, if
appropriate) that does not exceed such contribution and
benefit base (twice such contribution and benefit base, in
the case of a joint return) for the year of the earnings,
multiplied by the rate of tax applicable to such earnings
under section 3101(a) of the Internal Revenue Code of 1986.
``(3) Employment expenses allowance.--The employment
expense allowance is equal to the following:
``(A) If the student is married, such allowance is equal to
the lesser of $4,000 or 35 percent of the couple's combined
earned income (or is equal to a successor amount as adjusted
by the Secretary pursuant to section 478(g)).
``(B) If the student is not married, the employment expense
allowance is zero.
``(c) Family's Available Assets.--
``(1) In general.--
``(A) Determination.--Except as provided in subparagraph
(B), the family's available assets are equal to--
``(i) the difference between the family's assets (as
defined in section 480(f)) and the asset protection allowance
(determined in accordance with paragraph (2)); multiplied by
``(ii) 20 percent.
``(B) Not less than zero.--The family's available assets
under this subsection shall not be less than zero.
``(2) Asset protection allowance.--The asset protection
allowance is calculated according to the following table (or
a successor table prescribed by the Secretary under section
478(d)):

``Asset Protection Allowances for Families and Students
------------------------------------------------------------------------
And the student is
-------------------------------------
married             single
If the age of the student is--  -------------------------------------
then the
allowance is--
------------------------------------------------------------------------
25 or less........................                 $0                 $0
26................................               $300               $100
27................................               $700               $200
28................................             $1,000               $300
29................................             $1,300               $500
30................................             $1,600               $600
31................................             $2,000               $700
32................................             $2,300               $800
33................................             $2,600               $900
34................................             $2,900             $1,000
35................................             $3,300             $1,100
36................................             $3,600             $1,200
37................................             $3,900             $1,400
38................................             $4,200             $1,500
39................................             $4,600             $1,600
40................................             $4,900             $1,700
41................................             $5,100             $1,700
42................................             $5,200             $1,700
43................................             $5,300             $1,800
44................................             $5,400             $1,800
45................................             $5,500             $1,900
46................................             $5,700             $1,900
47................................             $5,800             $1,900
48................................             $6,000             $2,000
49................................             $6,100             $2,000
50................................             $6,300             $2,100
51................................             $6,400             $2,100
52................................             $6,600             $2,200
53................................             $6,800             $2,200
54................................             $6,900             $2,300
55................................             $7,100             $2,300
56................................             $7,300             $2,400
57................................             $7,500             $2,500
58................................             $7,700             $2,500
59................................             $7,900             $2,600
60................................             $8,200             $2,700
61................................             $8,400             $2,700
62................................             $8,600             $2,800
63................................             $8,900             $2,900
64................................             $9,200             $2,900
65 or more........................             $9,400            $3,000.
------------------------------------------------------------------------

``(d) Computations in Case of Separation, Divorce, or
Death.--In the case of a student who is divorced or
separated, or whose spouse has died, the spouse's income and
assets shall not be considered in determining the family's
available income or assets.''.
(f) Student Aid Index for Independent Students With
Dependents Other Than a Spouse.--Section 477 of the Higher
Education Act of 1965 (20 U.S.C. 1087qq) is amended to read
as follows:

``SEC. 477. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITH
DEPENDENTS OTHER THAN A SPOUSE.

``(a) Computation of Student Aid Index.--For each
independent student with dependents other than a spouse, the
student aid index is equal to the amount determined by--
``(1) computing adjusted available income by adding--
``(A) the family's available income (determined in
accordance with subsection (b)); and
``(B) the family's available assets (determined in
accordance with subsection (c));
``(2) assessing such adjusted available income in
accordance with an assessment schedule set forth in
subsection (d); and
``(3) considering such assessment resulting under paragraph
(2) as the amount determined under this subsection.
``(b) Family's Available Income.--
``(1) In general.--The family's available income is
determined by deducting from total income (as defined in
section 480)--
``(A) Federal income taxes;
``(B) an allowance for payroll taxes, determined in
accordance with paragraph (2);
``(C) an income protection allowance, determined in
accordance with paragraph (3); and
``(D) an employment expense allowance, determined in
accordance with paragraph (4).
``(2) Allowance for payroll taxes.--The allowance for
payroll taxes is equal to the sum of--
``(A) the total amount earned by the student (and spouse,
if appropriate), multiplied by the rate of tax under section
3101(b) of the Internal Revenue Code of 1986; and
``(B) the amount earned by the student (and spouse, if
appropriate) that does not exceed such contribution and
benefit base (twice such contribution and benefit base, in
the case of a joint return) for the year of the earnings,
multiplied by the rate of tax applicable to such earnings
under section 3101(a) of the Internal Revenue Code of 1986.
``(3) Income protection allowance.--The income protection
allowance for award year 2021-2022 and each succeeding award
year shall equal the amount determined in the

[[Page S4813]]

following table, as adjusted by the Secretary pursuant to
section 478(b):
``(A) In the case of a married independent student with
dependents:

``Income Protection Allowance 2021-2022 (to be adjusted for 2022-2023
and succeeding years)
------------------------------------------------------------------------
Family Size (including student)                   Amount
------------------------------------------------------------------------
3..........................................................      $44,470
4..........................................................      $55,260
5..........................................................      $65,190
6..........................................................      $76,230
For each additional add....................................      $8,610.
------------------------------------------------------------------------

``(B) In the case of a single independent student with
dependents:

``Income Protection Allowance 2021-2022 (to be adjusted for 2022-2023
and succeeding years)
------------------------------------------------------------------------
Family Size (including student)                   Amount
------------------------------------------------------------------------
2..........................................................      $43,128
3..........................................................      $54,364
4..........................................................      $66,312
5..........................................................      $78,228
6..........................................................      $91,476
For each additional add....................................     $10,332.
------------------------------------------------------------------------

``(4) Employment expense allowance.--The employment expense
allowance is equal to the lesser of $4,000 or 35 percent of
the student's earned income or the combined earned income of
the student and the student's spouse (or is equal to a
successor amount as adjusted by the Secretary under section
478(g)).
``(c) Family's Available Assets.--
``(1) In general.--
``(A) Determination.--Except as provided in subparagraph
(B), the family's available assets are equal to--
``(i) the difference between the family's assets (as
defined in 480(f)) and the asset protection allowance
(determined in accordance with paragraph (2)); multiplied by
``(ii) 7 percent.
``(B) Not less than zero.--Family's available assets under
this subsection shall not be less than zero.
``(2) Asset protection allowance.--The asset protection
allowance is calculated according to the following table (or
a successor table prescribed by the Secretary under section
478(d)):

``Asset Protection Allowances for Families and Students
------------------------------------------------------------------------
And the student is
-------------------------------------
married             single
If the age of the student is--  -------------------------------------
then the
allowance is--
------------------------------------------------------------------------
25 or less........................                 $0                 $0
26................................               $300               $100
27................................               $700               $200
28................................             $1,000               $300
29................................             $1,300               $500
30................................             $1,600               $600
31................................             $2,000               $700
32................................             $2,300               $800
33................................             $2,600               $900
34................................             $2,900             $1,000
35................................             $3,300             $1,100
36................................             $3,600             $1,200
37................................             $3,900             $1,400
38................................             $4,200             $1,500
39................................             $4,600             $1,600
40................................             $4,900             $1,700
41................................             $5,100             $1,700
42................................             $5,200             $1,700
43................................             $5,300             $1,800
44................................             $5,400             $1,800
45................................             $5,500             $1,900
46................................             $5,700             $1,900
47................................             $5,800             $1,900
48................................             $6,000             $2,000
49................................             $6,100             $2,000
50................................             $6,300             $2,100
51................................             $6,400             $2,100
52................................             $6,600             $2,200
53................................             $6,800             $2,200
54................................             $6,900             $2,300
55................................             $7,100             $2,300
56................................             $7,300             $2,400
57................................             $7,500             $2,500
58................................             $7,700             $2,500
59................................             $7,900             $2,600
60................................             $8,200             $2,700
61................................             $8,400             $2,700
62................................             $8,600             $2,800
63................................             $8,900             $2,900
64................................             $9,200             $2,900
65 or more........................             $9,400            $3,000.
------------------------------------------------------------------------

``(d) Assessment Schedule.--The assessment of adjusted
available income (as determined under subsection (a)(1) and
hereafter in this subsection referred to as `AAI') is
calculated according to the following table (or a successor
table prescribed by the Secretary pursuant to section
478(e)):

``Assessment From Adjusted Available Income
------------------------------------------------------------------------
If AAI is--                    Then the assessment is--
------------------------------------------------------------------------
Less than -$6,820......................  -$1,500
-$6,820 to $17,000.....................  22% of AAI
$17,001 to $21,400.....................  $3,740 + 25% of AAI over
$17,000
$21,401 to $25,700.....................  $4,840 + 29% of AAI over
$21,400
$25,701 to $30,100.....................  $6,087 + 34% of AAI over
$25,700
$30,101 to $34,500.....................  $7,583 + 40% of AAI over
$30,100
$34,501 or more........................  $9,343 + 47% of AAI over
$34,500.
------------------------------------------------------------------------

``(e) Computations in Case of Separation, Divorce, or
Death.--In the case of a student who is divorced or
separated, or whose spouse has died, the spouse's income and
assets shall not be considered in determining the family's
available income or assets.''.
(g) Regulations; Updated Tables.--Section 478 of the Higher
Education Act of 1965 (20 U.S.C. 1087rr) is amended to read
as follows:

``SEC. 478. REGULATIONS; UPDATED TABLES.

``(a) Authority To Prescribe Regulations Restricted.--
Notwithstanding any other provision of law, the Secretary
shall not have the authority to prescribe regulations to
carry out this part except--
``(1) to prescribe updated tables in accordance with
subsections (b) through (g); or
``(2) with respect to the definition of cost of attendance
under section 472, excluding section 472(a)(1).
``(b) Income Protection Allowance Adjustments.--For award
year 2022-2023 and each succeeding award year, the Secretary
shall publish in the Federal Register revised income
protection allowances for the purposes of subsections (c)(3)
and (g)(2)(C) of section 475, subclauses (I) and (II) of
section 476(b)(1)(A)(iii), and section 477(b)(3), by
increasing the income protection allowances in each of such
provisions, by a percentage equal to the percentage increase
in the Consumer Price Index, as defined in subsection (f),
between April 2019 and the April prior to the beginning of
the award year and rounding the result to the nearest $10.
``(c) Adjusted Net Worth of a Farm or Business.--
``(1) Table.--The table of the net worth of a business or
farm for purposes of making determinations of assets as
defined under section 480(f) for award year 2021-2022 is the
following:

``Business/Farm Net Worth Adjustment
------------------------------------------------------------------------
If the net worth of a business or farm  Then the adjusted net worth is--
is--
------------------------------------------------------------------------
Less than $1...........................  $0
$1 to $135,000.........................  40% of net worth of business/
farm
$135,001 to $410,000...................  $54,000 + 50% of net worth over
$135,000
$410,001 to $680,000...................  $191,500 + 60% of net worth
over $410,000
$680,001 or more.......................  $353,500 + 100% of net worth
over $680,000.
------------------------------------------------------------------------

``(2) Revised tables.--For award year 2022-2023 and each
succeeding award year, the Secretary shall publish in the
Federal Register a revised table of adjusted net worth of a
farm or business for purposes of section 480(f). Such revised
table shall be developed--
``(A) by increasing each dollar amount that refers to net
worth of a farm or business by a percentage equal to the
percentage increase in the Consumer Price Index between

[[Page S4814]]

April 2019 and the April prior to the beginning of such award
year, and rounding the result to the nearest $5,000; and
``(B) by adjusting the dollar amounts in the column
referring the adjusted net worth to reflect the changes made
pursuant to subparagraph (A).
``(d) Education Savings and Asset Protection Allowance.--
For award year 2022-2023 and each succeeding award year, the
Secretary shall publish in the Federal Register a revised
table of allowances for the purpose of sections 475(d)(2),
476(c)(2), and 477(c)(2). Such revised table shall be
developed by determining the present value cost, rounded to
the nearest $100, of an annuity that would provide, for each
age cohort of 40 and above, a supplemental income at age 65
(adjusted for inflation) equal to the difference between the
moderate family income (as most recently determined by the
Bureau of Labor Statistics), and the current average social
security retirement benefits. For each age cohort below 40,
the allowance shall be computed by decreasing the allowance
for age 40, as updated, by one-fifteenth for each year of age
below age 40 and rounding the result to the nearest $100. In
making such determinations--
``(1) inflation shall be presumed to be 6 percent per year;
``(2) the rate of return of an annuity shall be presumed to
be 8 percent; and
``(3) the sales commission on an annuity shall be presumed
to be 6 percent.
``(e) Assessment Schedules and Rates.--For award year 2022-
2023 and each succeeding award year, the Secretary shall
publish in the Federal Register a revised table of
assessments from adjusted available income for the purpose of
sections 475(e) and 477(d). Such revised table shall be
developed--
``(1) by increasing each dollar amount that refers to
adjusted available income by a percentage equal to the
percentage increase in the Consumer Price Index between April
2019 and the April prior to the beginning of such academic
year, rounded to the nearest $100; and
``(2) by adjusting the other dollar amounts to reflect the
changes made pursuant to paragraph (1).
``(f) Consumer Price Index Defined.--In this section, the
term `Consumer Price Index' means the Consumer Price Index
for All Urban Consumers published by the Department of Labor.
Each annual update of tables to reflect changes in the
Consumer Price Index shall be corrected for misestimation of
actual changes in such Index in previous years.
``(g) Employment Expense Allowance.--For award year 2022-
2023 and each succeeding award year, the Secretary shall
publish in the Federal Register a revised table of employment
expense allowances for the purpose of sections 475(c)(4),
476(b)(3), and 477(b)(4). Such revised table shall be
developed by increasing the dollar amount specified in
sections 475(c)(4), 476(b)(3), and 477(b)(4) to reflect the
inflationary adjustment that is used for the income
protection allowances in subsection (b).''.
(h) Applicants Exempt From Asset Reporting.--Section 479 of
the Higher Education Act of 1965 (20 U.S.C. 1087ss) is
amended to read as follows:

``SEC. 479. APPLICANTS EXEMPT FROM ASSET REPORTING.

``(a) In General.--Notwithstanding any other provision of
law, this section shall be effective for each individual
seeking to apply for Federal financial aid under this title,
as part of the simplified application for Federal student
financial aid under section 483.
``(b) Applicants Exempt From Asset Reporting.--
``(1) In general.--Except as provided in paragraph (3), in
carrying out section 483, the Secretary shall not use asset
information from an eligible applicant or, as applicable, the
parent or spouse of an eligible applicant.
``(2) Eligible applicants.--In this subsection, the term
`eligible applicant' means an applicant who meets at least
one of the following criteria:
``(A) Is an applicant who qualifies for an automatic zero
student aid index or automatic negative student aid index
under subsection (b), (c), or (d) of section 473.
``(B) Is an applicant who is a dependent student and the
student's parents have a total adjusted gross income
(excluding any income of the dependent student) that is less
than $75,000 and do not file a Schedule A, B, D, E, F, or H
(or equivalent successor schedules), with the Federal income
tax return for the second preceding tax year, and--
``(i) do not file a Schedule C (or the equivalent successor
schedule) with the Federal income tax return for the second
preceding tax year; or
``(ii) file a Schedule C (or the equivalent successor
schedule) with net business income of not more than a $10,000
loss or gain with the Federal income tax return for the
second preceding tax year.
``(C) Is an applicant who is an independent student and the
student (and including the student's spouse, if any) has a
total adjusted gross income that is less than $75,000 and
does not file a Schedule A, B, C, D, E, F, or H (or
equivalent successor schedules), with the Federal income tax
return for the second preceding tax year, and--
``(i) does not file a Schedule C (or the equivalent
successor schedule) with the Federal income tax return for
the second preceding tax year; or
``(ii) files a Schedule C (or the equivalent successor
schedule) with net business income of not more than a $10,000
loss or gain with the Federal income tax return for the
second preceding tax year.
``(3) Special rule.--An eligible applicant shall not be
exempt from asset reporting under this section if the
applicant is a dependent student and the students' parents do
not--
``(A) reside in the United States or a United States
territory; or
``(B) file taxes in the United States or a United States
territory, except if such nonfiling is due to not being
required to file a Federal tax return for the applicable tax
year due to a low income.
``(4) Definitions.--In this section:
``(A) Schedule a.--The term Schedule A means a form or
information by a taxpayer to report itemized deductions.
``(B) Schedule b.--The term Schedule B means a form or
information filed by a taxpayer to report interest and
ordinary dividend income.
``(C) Schedule c.--The term Schedule C means a form or
information filed by a taxpayer to report income or loss from
a business operated or a profession practiced as a sole
proprietor.
``(D) Schedule d .--The term Schedule D means a form or
information filed by a taxpayer to report sales, exchanges or
some involuntary conversions of capital assets, certain
capital gain distributions, and nonbusiness bad debts.
``(E) Schedule e .--The term Schedule E means a form or
information filed by a taxpayer to report income from rental
properties, royalties, partnerships, S corporations, estates,
trusts, and residual interests in real estate mortgage
investment conduits.
``(F) Schedule f.--The term Schedule F means a form or
information filed by a taxpayer to report farm income and
expenses.
``(G) Schedule h.--The term Schedule H means a form or
information filed by a taxpayer to report household
employment taxes.''.
(i) Discretion of Student Financial Aid Administrators.--
Section 479A of the Higher Education Act of 1965 (20 U.S.C.
1087tt) is amended to read as follows:

``SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID
ADMINISTRATORS.

``(a) In General.--
``(1) Authority of financial aid administrators.--A
financial aid administrator shall have the authority to, on
the basis of adequate documentation, make adjustments to any
or all of the following on a case-by-case basis--
``(A) for an individual eligible applicant with special
circumstances under subsection (b) to--
``(i) the cost of attendance;
``(ii) the values of the data used to calculate the student
aid index; or
``(iii) the values of the data used to calculate the
Federal Pell Grant award; or
``(B) for an individual eligible applicant with unusual
circumstances, as defined in section 480(d)(9), under
subsection (c) to the dependency status.
``(2) Limitations on authority.--
``(A) Use of authority.--No institution of higher education
or financial aid administrator shall maintain a policy of
denying all requests for adjustments under this section.
``(B) No additional fee.--No student or parent shall be
charged a fee for a documented interview of the student by
the financial aid administrator or for the review of a
student or parent's request for adjustments under this
section including the review of any supplementary information
or documentation of a student or parent's special
circumstances or a student's unusual circumstances.
``(C) Rule of construction.--The authority to make
adjustments under paragraph (1)(A) shall not be construed to
permit financial aid administrators to deviate from the cost
of attendance, the values of data used to calculate the
student aid index or the values of data used to calculate the
Federal Pell Grant award (or both) for awarding aid under
this title in the absence of special circumstances.
``(3) Adequate documentation.--Adequate documentation for
adjustments under this section shall substantiate the special
circumstances or unusual circumstances of individual
students, and may include, to the extent relevant and
appropriate--
``(A) a documented interview between the student and the
financial aid administrator;
``(B) for the purposes of determining that a student
qualifies for an adjustment under paragraph (1)(B)--
``(i) submission of a court order or official Federal or
State documentation that the parents or legal guardians are
incarcerated in any Federal or State penal institution;
``(ii) a documented phone call or a written statement,
which confirms the specific unusual circumstances with--

``(I) a child welfare agency authorized by a State or
county;
``(II) a Tribal welfare authority;
``(III) an independent living case worker; or
``(IV) a public or private agency, facility, or program
servicing the victims of abuse, neglect, assault, or
violence;

``(iii) a documented phone call or a written statement from
an attorney, a guardian ad litem, or a court-appointed
special advocate, which confirms the specific unusual
circumstances and documents the person's relationship to the
student;
``(iv) a documented phone call or written statement from a
representative under chapter 1 or 2 of subpart 2 of part A,
which confirms the specific unusual circumstances and

[[Page S4815]]

documents the person's relationship to the student; or
``(v) documents, such as utility bills or health insurance
documentation, that demonstrate a separation from parents or
legal guardians; and
``(vi) in the absence of documentation described in this
subparagraph, other documentation the financial aid
administrator determines is adequate to confirm the unusual
circumstances, as defined in section 480(d)(9); and
``(C) supplementary information, as necessary, about the
financial status or personal circumstances of eligible
applicants as it relates to the special circumstances or
unusual circumstances based on which the applicant is
requesting an adjustment.
``(4) Special rule.--In making adjustments under paragraph
(1), a financial aid administrator may offer a dependent
student financial assistance under a Federal Direct
Unsubsidized Stafford Loan without requiring the parents of
such student to provide their parent information on the Free
Application for Federal Student Aid if the student does not
qualify for, or does not choose to uses, the unusual
circumstance option specified in accordance with section
480(d)(9), and the financial aid administrator determines
that the parents of such student ended financial support of
such student and refuse to file such form.
``(5) Public disclosure.--Each institution of higher
education shall make publicly available information that
students applying for aid under this title have the
opportunity to pursue adjustments under this section.
``(b) Adjustments for Students With Special
Circumstances.--
``(1) Special circumstances for adjustments related to pell
grants.--Special circumstances for adjustments to calculate a
Federal Pell Grant award--
``(A) shall be conditions that differentiate an individual
student from a group of students rather than conditions that
exist across a group of students; and
``(B) may include--
``(i) recent unemployment of a family member or an
independent student;
``(ii) a student or family member who is a dislocated
worker (as defined in section 3 of the Workforce Innovation
and Opportunity Act);
``(iii) a change in housing status that results in an
individual being a homeless child or youth (as defined in
section 725 of the McKinney-Vento Homeless Assistance Act);
``(iv) an unusual amount of claimed losses against income
on the Federal tax return that substantially lower adjusted
gross income, such as business, investment, or real estate
losses;
``(v) receipt of substantial foreign income of permanent
residents or United States citizens exempt from federal
taxation, or the foreign income for which a permanent
resident or citizen received a foreign tax credit; or
``(vi) other changes or adjustments in the income, assets,
or size of a family, or a student's dependency status.
``(2) Special circumstances for adjustments related to cost
of attendance and student aid index.--Special circumstances
for adjustments to the cost of attendance or the values of
the data used to calculate the student aid index--
``(A) shall be conditions that differentiate an individual
student from a group of students rather than conditions that
exist across a group of students; and
``(B) may include--
``(i) tuition expenses at an elementary school or secondary
school;
``(ii) medical, dental, or nursing home expenses not
covered by insurance;
``(iii) unusually high child care or dependent care costs
not covered by the dependent care cost allowance calculated
in accordance with section 472;
``(iv) recent unemployment of a family member or an
independent student;
``(v) a student or family member who is a dislocated worker
(as defined in section 3 of the Workforce Innovation and
Opportunity Act);
``(vi) the number of family members enrolled in a degree,
certificate, or other program leading to a recognized
educational credential at an institution with a program
participation agreement under section 487;
``(vii) a change in housing status that results in an
individual being a homeless child or youth (as defined in
section 725 of the McKinney-Vento Homeless Assistance Act);
``(viii) in the case of a dependent student, a recent
condition of severe disability of the student, the dependent
student's parent or guardian, or an independent student's
dependent or spouse;
``(ix) unusual amount of claimed losses against income on
the Federal tax return that substantially lower adjusted
gross income, such as business, investment, or real estate
losses;
``(x) receipt of substantial foreign income of permanent
residents or United States citizens exempt from Federal
taxation, or the foreign income for which a permanent
resident or citizen receives a foreign tax credit; or
``(C) other changes or adjustments in the income, assets,
or size of a family, or a student's dependency status.
``(3) Special rule.--The Secretary shall not consider
conditions that are widespread to a group of students due to
a major disaster or an emergency declared by the President
under section 401 or 501, respectively, of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170 and 5191) as special circumstances for adjustment
for purposes of paragraphs (1)(A) and (2)(A) for a time
period determined by such Secretary.
``(c) Unusual Circumstances Adjustments.--
``(1) In general.--Unusual circumstances for adjustments to
the dependency status of an individual eligible applicant
shall be--
``(A) conditions that differentiate an individual student
from a group of students; and
``(B) based on unusual circumstances, as defined by section
480(d)(9).
``(2) Provisional independent students.--
``(A) Requirements for the secretary.--The Secretary
shall--
``(i) enable each student who, based on an unusual
circumstance specified in section 480(d)(9), may qualify for
an adjustment under subsection (a)(1)(B) that will result in
a determination of independence under this section and
section 479D to complete the Free Application for Federal
Student Aid as an independent student for the purpose of a
provisional determination of the student's Federal financial
aid award, but subject to the authority under subsection
(a)(3), for the purpose of the final determination of the
award;
``(ii) upon completion of the Free Application for Federal
Student Aid provide an estimate of the student's Federal Pell
Grant award, and other information as specified in section
483(a)(3)(A), based on the assumption that the student is
determined to be an independent student; and
``(iii) specify, on the Free Application for Federal
Student Aid, the consequences under section 490(a) of
knowingly and willfully completing the Free Application for
Federal Student Aid as an independent student under clause
(i) without meeting the unusual circumstances to qualify for
such a determination.
``(B) Requirements for financial aid administrators.--With
respect to a student accepted for admission who completes the
Free Application for Federal Student Aid as an independent
student under subparagraph (A), a financial aid administrator
shall--
``(i) notify the student of the institutional process,
requirements, and timeline for an adjustment under this
section and section 480(d)(9) that will result in a review of
the student's request for an adjustment and a determination
of the student's dependency status under such sections within
a reasonable time after the student completes the Free
Application for Federal Student Aid;
``(ii) provide the student a final determination of the
student's dependency status and Federal financial aid award
as soon as practicable after all requested documentation is
provided;
``(iii) retain all documents related to the adjustment
under this section and section 480(d)(9), including
documented interviews, for at least the duration of the
student's enrollment, and shall abide by all other record
keeping requirements of this Act; and
``(iv) presume that any student who has obtained an
adjustment under this section and section 480(d)(9) and a
final determination of independence for a preceding award
year at an institution to be independent for a subsequent
award year at the same institution unless--

``(I) the student informs the institution that
circumstances have changed; or
``(II) the institution has specific conflicting information
about the student's independence.

``(d) Adjustments to Assets or Income Taken Into Account.--
A financial aid administrator shall be considered to be
making a necessary adjustment in accordance with this section
if--
``(1) the administrator makes adjustments excluding from
family income or assets any proceeds or losses from a sale of
farm or business assets of a family if such sale results from
a voluntary or involuntary foreclosure, forfeiture, or
bankruptcy or a voluntary or involuntary liquidation; or
``(2) the administrator makes adjustments for a student
with a disability so as to take into consideration the
additional costs such student incurs as a result of such
student's disability.
``(e) Refusal or Adjustment of Loan Certifications.--On a
case-by-case basis, an eligible institution may refuse to use
the authority provided under this section, certify a
statement that permits a student to receive a loan under part
D, certify a loan amount, or make a loan that is less than
the student's determination of need (as determined under this
part), if the reason for the action is documented and
provided in written form to the student. No eligible
institution shall discriminate against any borrower or
applicant in obtaining a loan on the basis of race, national
origin, religion, sex, marital status, age, or disability
status.''.
(j) Disregard of Student Aid in Other Programs.--Section
479B of the Higher Education Act of 1965 (20 U.S.C. 1087uu)
is amended to read as follows:

``SEC. 479B. DISREGARD OF STUDENT AID IN OTHER PROGRAMS.

``Notwithstanding any other provision of law, student
financial assistance received under this title, Bureau of
Indian Affairs student assistance programs, and employment
and training programs under section 134 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3174 et. seq.)
shall not be taken into account in determining the need or
eligibility of any person for benefits or assistance, or the
amount of such benefits or assistance, under any Federal,
State, or local

[[Page S4816]]

program financed in whole or in part with Federal funds.''.
(k) Native American Students.--Section 479C of the Higher
Education Act of 1965 (20 U.S.C. 1087uu-1) is amended to read
as follows:

``SEC. 479C. NATIVE AMERICAN STUDENTS.

``In determining the student aid index for Native American
students, computations performed pursuant to this part shall
exclude--
``(1) any income and assets of $2,000 or less per
individual payment received by the student (and spouse) and
student's parents under Public Law 98-64 (25 U.S.C. 117a et
seq.; 97 Stat. 365) (commonly known as the `Per Capita Act')
or the Indian Tribal Judgment Funds Use or Distribution Act
(25 U.S.C. 1401 et seq.); and
``(2) any income received by the student (and spouse) and
student's parents under the Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.) or the Maine Indian Claims
Settlement Act of 1980 (25 U.S.C. 1721 et seq.).''.
(l) Definitions.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) is amended--
(1) by inserting after section 479C the following:

``SEC. 479D. SPECIAL RULES FOR INDEPENDENT STUDENTS.

``(a) Determination Process for Unaccompanied Youth.--In
making a determination of independence under section
480(d)(8), a financial aid administrator shall--
``(1) consider documentation of the student's circumstance
provided by an individual described by this subparagraph to
be acceptable in the absence of documented conflicting
information, such individuals include--
``(A) a local education agency homeless liaison, designated
pursuant to section 722(g)(1)(J)(ii) of the McKinney-Vento
Homeless Assistance Act or a designee of the liaison;
``(B) the director or a recognized emergency shelter,
transitional living, street outreach program, or other
program serving individuals who are homeless or a designee of
the director;
``(C) the director of a Federal TRIO program or a Gaining
Early Awareness and Readiness for Undergraduate program under
chapter 1 or 2 of subpart 2 of part A or a designee of the
director; or
``(D) by a financial aid administrator at another
institution who documented the student's circumstance in a
prior award year;
``(2) if a student is unable to provide documentation from
any individual under paragraph (1), make a case-by-case
determination, which shall be--
``(A) based on a written statement from or a documented
interview with the student which confirms that the student is
homeless (as such term is defined in section 725 of the
McKinney-Vento Homeless Assistance Act), or unaccompanied, at
risk of homelessness, and self-supporting; and
``(B) made independent from the reasons that the student is
homeless (as such term is defined in section 725 of the
McKinney-Vento Homeless Assistance Act), or unaccompanied, at
risk of homelessness, and self-supporting; and
``(3) consider a determination made under this paragraph as
distinct from a determination of independence under section
480(d)(9).
``(b) Documentation Process for Foster Care Youth.--If an
institution requires that a student provide documentation
that they were in foster care when the student was age 13 or
older, a financial aid administrator shall consider any of
the following as adequate documentation, in the absence of
documented conflicting information:
``(1) Submission of a court order or official State
documentation that the student received Federal or State
support in foster care.
``(2) A documented phone call, written statement, or
verifiable electronic data match, which confirms the student
was in foster care at an applicable age, from--
``(A) a State or tribal agency administering a program
under part B or E of title IV of the Social Security Act (42
U.S.C. 621 et seq. and 670 et seq.);
``(B) a State Medicaid agency; or
``(C) a public or private foster care placing agency or
foster care facility or placement.
``(3) A documented phone call or a written statement from
an attorney, a guardian ad litem, or a Court Appointed
Special Advocate that confirms that the student was in foster
care at an applicable age, and documents the person's
relationship to the student.
``(4) Verification of the student's eligibility for an
education and training voucher under the John H. Chafee
Foster Care Program under section 477 of the Social Security
Act (42 U.S.C. 677).
``(c) Timing.--A determination of independence under
paragraphs (2), (8) or (9) of section 480(d) for a student--
``(1) shall be made as quickly as practicable;
``(2) may be made as early as the year before the award
year for which the student initially submits an application;
and
``(3) shall be made not later than during the award year
for which the student initially submits an application.
``(d) Use of Earlier Determinations.--
``(1) Earlier determination by the institution.--Any
student who is determined to be independent under paragraph
(2), (8) or (9) of section 480(d) for a preceding award year
at an institution shall be presumed to be independent for
each subsequent award year at the same institution unless--
``(A) the student informs the institution that
circumstances have changed; or
``(B) the institution has specific conflicting information
about the student's independence, and has informed the
student of this information.
``(2) Earlier determination by another institution.--
``(A) Simplifying the dependency override process.--A
financial aid administrator may make a determination of
independence under section 480(d)(9), based upon a documented
determination of independence that was previously made by
another financial aid administrator under such paragraph in
the same award year.
``(e) Retention of Documents.--A financial aid
administrator shall retain all documents related to the
determination of independence under paragraphs (2) or (8) of
section 480(d), including documented interviews.''; and
(2) by striking section 480 and inserting the following:

``SEC. 480. DEFINITIONS.

``In this part:
``(a) Total Income.--The term `total income' means the
amount equal to adjusted gross income for the second
preceding tax year plus untaxed income and benefits for the
second preceding tax year minus excludable income for the
second preceding tax year. The factors used to determine
total income shall be derived from the Federal income tax
return, if available, except for the applicant's ability to
indicate a qualified rollover in the second preceding tax
year as outlined in section 483.
``(b) Untaxed Income and Benefits.--The term `untaxed
income and benefits' means--
``(1) deductions and payments to self-employed SEP, SIMPLE,
Keogh, and other qualified individual retirement accounts
excluded from income for Federal tax purposes, except such
term shall not include payments made to tax-deferred pension
and retirement plans, paid directly or withheld from
earnings, that are not delineated on the Federal tax return;
``(2) tax-exempt interest income;
``(3) untaxed portion of individual retirement account
distributions; and
``(4) untaxed portion of pensions.
``(c) Veteran.--The term `veteran' has the meaning given
the term in section 101(2) of title 38, United States Code.
``(d) Independent Students and Determinations.-- The term
`independent', when used with respect to a student, means any
individual who--
``(1) is 24 years of age or older by December 31 of the
award year;
``(2) is, or was at any time when the individual was 13
years of age or older;
``(A) an orphan;
``(B) ward of the court;
``(C) in foster care;
``(3) is, or was immediately prior to attaining the age of
majority, an emancipated minor or in legal guardianship as
determined by a court of competent jurisdiction in the
individual's State of legal residence;
``(4) is a veteran of the Armed Forces of the United States
(as defined in subsection (c)) or is currently serving on
active duty in the Armed Forces for other than training
purposes;
``(5) is a graduate or professional student;
``(6) is married and not separated;
``(7) has legal dependents other than a spouse;
``(8) an unaccompanied youth 23 years of age or younger who
is homeless (as such term is defined in section 725 of the
McKinney-Vento Homeless Assistance Act), or unaccompanied, at
risk of homelessness, and self-supporting, or--
``(9) is a student for whom a financial aid administrator
makes a documented determination of independence by reason of
other unusual circumstances as described under section
479A(c) in which the student is unable to contact a parent or
where contact with parents poses a risk to such student,
which includes circumstances of--
``(A) human trafficking, as described in the Trafficking
Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.);
``(B) legally granted refugee or asylum status;
``(C) parental abandonment or estrangement; or
``(D) parental incarceration.
``(e) Excludable Income.--The term `excludable income'
means an amount equal to the education credits described in
paragraphs (1) and (2) of section 25A(a) of the Internal
Revenue Code of 1986.
``(f) Assets.--
``(1) In general.--The term `assets' means cash on hand,
including the amount in checking and savings accounts, time
deposits, money market funds, trusts, stocks, bonds,
derivatives, other securities, mutual funds, tax shelters,
qualified education benefits (except as provided in paragraph
(3)), the annual amount of child support received and the net
value of real estate, income producing property, and business
and farm assets, determined in accordance with section
478(c).
``(2) Exclusions.--With respect to determinations of need
under this title, the term `assets' shall not include the net
value of the family's principal place of residence.
``(3) Qualified education benefit.--A qualified education
benefit shall be considered an asset of--
``(A) the student if the student is an independent student;
or

[[Page S4817]]

``(B) the parent if the student is a dependent student and
the account is designated for the student, regardless of
whether the owner of the account is the student or the
parent.
``(g) Net Assets.--The term `net assets' means the market
value at the time of application of the assets (as defined in
subsection (f)), minus the outstanding liabilities or
indebtedness against the assets.
``(h) Treatment of Income Taxes Paid to Other
Jurisdictions.--
``(1) The tax on income paid to the Governments of the
Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin
Islands, or the Commonwealth of the Northern Mariana Islands,
the Republic of the Marshall Islands, the Federated States of
Micronesia, or Palau under the laws applicable to those
jurisdictions, or the comparable tax paid to the central
government of a foreign country, shall be treated as Federal
income taxes.
``(2) References in this part to the Internal Revenue Code
of 1986, Federal income tax forms, and the Internal Revenue
Service shall, for purposes of the tax described in paragraph
(1), be treated as references to the corresponding laws, tax
forms, and tax collection agencies of those jurisdictions,
respectively, subject to such adjustments as the Secretary
may provide by regulation.
``(i) Other Financial Assistance.--
``(1) For purposes of determining a student's eligibility
for funds under this title, other financial assistance not
received under this title shall include all scholarships,
grants, loans, or other assistance known to the institution
at the time the determination of the student's need is made,
including national service educational awards or post-service
benefits under title I of the National and Community Service
Act of 1990 (42 U.S.C. 12511 et seq.).
``(2) Notwithstanding paragraph (1), a tax credit taken
under section 25A of the Internal Revenue Code of 1986, or a
distribution that is not includable in gross income under
section 529 of such Code, under another prepaid tuition plan
offered by a State, or under a Coverdell education savings
account under section 530 of such Code, shall not be treated
as other financial assistance for purposes of section
471(a)(3).
``(3) Notwithstanding paragraph (1) and section 472,
assistance not received under this title may be excluded from
both other financial assistance and cost of attendance, if
that assistance is provided by a State and is designated by
such State to offset a specific component of the cost of
attendance. If that assistance is excluded from either other
financial assistance or cost of attendance, it shall be
excluded from both.
``(4) Notwithstanding paragraph (1), payments made and
services provided under part E of title IV of the Social
Security Act to or on behalf of any child or youth over whom
the State agency has responsibility for placement, care, or
supervision, including the value of vouchers for education
and training and amounts expended for room and board for
youth who are not in foster care but are receiving services
under section 477 of such Act, shall not be treated as other
financial assistance for purposes of section 471(a)(3).
``(5) Notwithstanding paragraph (1), emergency financial
assistance in an amount less than $1,500 provided to the
student for unexpected expenses that are a component of the
student's cost of attendance, and not otherwise considered
when the determination of the student's need is made, shall
not be treated as other financial assistance for purposes of
section 471(a)(3).
``(j) Dependents.--
``(1) Except as otherwise provided, the term `dependent of
the parent' means the student who is deemed to be a dependent
students when applying for aid under this title, and any
other person who lives with and receives more than one-half
of their support from the parent (or parents) and will
continue to receive more than half of their support from the
parent (or parents) during the award year.
``(2) Except as otherwise provided, the term `dependent of
the student' means the student's dependent children and other
persons (except the student's spouse) who live with and
receive more than one-half of their support from the student
and will continue to receive more than half of their support
from the student during the award year.
``(k) Family Size.--
``(1) Dependent student.--Except as provided in paragraph
(3), in determining family size in the case of a dependent
student--
``(A) if the parents are not divorced or separated, family
members include the student's parents, and any dependent
(within the meaning of section 152 of the Internal Revenue
Code of 1986 or an eligible individual for purposes of the
credit under section 32 of the Internal Revenue Code of 1986)
of the student's parents for the taxable year used in
determining the amount of need of the student for financial
assistance under this title;
``(B) if the parents are divorced or separated, family
members include the parent whose income is included in
computing available income and any dependent (within the
meaning of section 152 of the Internal Revenue Code of 1986
or an eligible individual for purposes of the credit under
section 32 of the Internal Revenue Code of 1986) of that
parent for the taxable year used in determining the amount of
need of the student for financial assistance under this
title;
``(C) if the parents are divorced and the parents whose
income is so included is remarried, or if the parent was a
widow or widower who has remarried, family members also
include, in addition to those individuals referred to in
paragraph (B), and any dependent (within the meaning of
section 152 of the Internal Revenue Code of 1986 or an
eligible individual for purposes of the credit under section
32 of the Internal Revenue Code of 1986) of the new spouse
for the taxable year used in determining the amount of need
of the student for financial assistance under this title, if
that spouse's income is included in determining the parent's
adjusted available income; and
``(D) if the student is not considered as a dependent
(within the meaning of section 152 of the Internal Revenue
Code of 1986 or an eligible individual for purposes of the
credit under section 32 of the Internal Revenue Code of 1986)
of any parent, the parents' family size shall include the
student and the family members applicable to the parents'
situation under subparagraph (A), (B), or (C).
``(2) Independent student.--Except as provided in paragraph
(3), in determining family size in the case of an independent
student--
``(A) family members include the student, the student's
spouse, and any dependent (within the meaning of section 152
of the Internal Revenue Code of 1986 or an eligible
individual for purposes of the credit under section 32 of the
Internal Revenue Code of 1986) of that student for the
taxable year used in determining the amount of need of the
student for financial assistance under this title; and
``(B) if the student is divorced or separated, family
members do not include the spouse (or ex-spouse), but do
include the student and any dependent (within the meaning of
section 152 of the Internal Revenue Code of 1986 or an
eligible individual for purposes of the credit under section
32 of the Internal Revenue Code of 1986) of that student for
the taxable year used in determining the amount of need of
the student for financial assistance under this title.
``(3) Procedures and modification.--The Secretary shall
provide procedures for determining family size in cases in
which information for the taxable year used in determining
the amount of need of the student for financial assistance
under this title has changed or does not accurately reflect
the applicant's current household size.
``(l) Business Assets.--The term `business assets' means
property that is used in the operation of a trade or
business, including real estate, inventories, buildings,
machinery, and other equipment, patents, franchise rights,
and copyrights.''.
(m) FAFSA.--Section 483 of the Higher Education Act of 1965
(20 U.S.C. 1090) is amended to read as follows:

``SEC. 483. FREE APPLICATION FOR FEDERAL STUDENT AID.

``(a) Simplified Application for Federal Student Financial
Aid.--
``(1) In general.--Each individual seeking to apply for
Federal financial aid under this title for any award year
shall file a free application with the Secretary, known as
the `Free Application for Federal Student Aid', to determine
eligibility for such aid, as described in paragraph (2), and
in accordance with section 479.
``(2) Free application.--
``(A) In general.--The Secretary shall make available, for
the purposes of paragraph (1), a free application to
determine the eligibility of a student for Federal financial
aid under this title.
``(B) Information required by the applicant.--
``(i) In general.--The applicant, and, if necessary, the
parents or spouse of the applicant, shall provide the
Secretary with the applicable information described in clause
(ii) in order to be eligible for Federal financial aid under
this title.
``(ii) Information to be provided.--The information
described in this clause is the following:

``(I) Name.
``(II) Contact information, including address, phone
number, email address, or other electronic address.
``(III) Social security number.
``(IV) Date of birth.
``(V) Marital status.
``(VI) Citizenship status, including alien registration
number, if applicable.
``(VII) Sex.
``(VIII) State of legal residence and date of residency.
``(IX) The following information on secondary school
completion--

``(aa) Name and location of the high school from which the
applicant received, or will receive prior to the period of
enrollment for which aid is sought, a regular high school
diploma;
``(bb) name and location of the entity from which the
applicant received, or will receive prior to the period of
enrollment for which aid is sought, a recognized equivalent
of a regular high school diploma; or
``(cc) if the applicant completed or will complete prior to
the period of enrollment for which aid is sought, a secondary
school education in a home school setting that is treated as
a home school or private school under State law.

``(X) Name of each institution where the applicant intends
to apply for enrollment or continue enrollment.
``(XI) Year in school for period of enrollment for which
aid is sought, including whether applicant will have finished
first bachelor's degree prior to the period of enrollment for
which aid is sought.
``(XII) Whether one or both of the applicant's parents
attended college.

[[Page S4818]]

``(XIII) Any required asset information, unless exempt
under section 479, in which the applicant shall indicate--

``(aa) the annual amount of child support received, if
applicable; and
``(bb) all required asset information not described in item
(aa).

``(XIV) The number of members of the applicant's family who
will also be enrolled in an eligible institution of higher
education on at least a half-time basis during the same
enrollment period as the applicant.
``(XV) If the applicant meets any of the following
designations:

``(aa) Homeless, at risk of being homeless, or an
unaccompanied youth.
``(bb) Emancipated minor.
``(cc) In legal guardianship.
``(dd) Dependent ward of the court at any time since the
applicant turned 13.
``(ee) In foster care at any time since the applicant
turned 13.
``(ff) If both parents have died since the applicant turned
13.
``(gg) Is a veteran of the Armed Forces of the United
States or is serving (on the date of the application) on
active duty in the Armed Forces for other than training
purposes.
``(hh) Has a dependent child or relative and is under the
age of 24.
``(ii) Does not have access to parental income due to an
unusual circumstance in accordance with section 480(d)(9).

``(XVI) If the applicant receives or has received any of
the following means-tested Federal benefits within the last
two years:

``(aa) The supplemental security income program under title
XVI of the Social Security Act (42 U.S.C. 1381 et seq.).
``(bb) The supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
``(cc) The free and reduced price school lunch program
established under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.).
``(dd) The program of block grants for States for temporary
assistance for needy families established under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.).
``(ee) The special supplemental nutrition program for
women, infants, and children established by section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786).
``(ff) The Medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
``(gg) Federal housing assistance programs, including
tenant-based assistance under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)), and public
housing, as defined in section 3(b)(1) of such Act (42 U.S.C.
1437a(b)(1)).
``(hh) Any other means-tested program determined by the
Secretary to be appropriate.

``(XVII) If the applicant, or, if necessary, the parents or
spouse of the applicant, reported receiving tax exempt
payments from an individual retirement plan (as defined in
section 7701 of the Internal Revenue Code of 1986)
distribution or from pensions or annuities on a Federal tax
return, information as to how much of the individual
retirement plan distribution or pension or annuity
disbursement was a qualified rollover.

``(iii) Prohibition against requesting information more
than once.--Any information requested during the process of
creating an account for completing the free application under
this subsection, shall not be required a second time for the
same award year, or in a duplicative manner, when completing
such free application except in the case of an unusual
situation.
``(iv) Change in family size.--The Secretary shall provide
a process by which an applicant shall confirm the accuracy of
family size or update the family size with respect to such
applicant for purposes of determining the need of such
applicant for financial assistance under this title based on
a change in family size from the tax year data used for such
determination.
``(v) Single question for homeless status.--The Secretary
shall ensure that--

``(I) on the form developed under this section for which
the information is applicable, there is a single, easily
understood screening question to identify an applicant who is
an unaccompanied homeless child or youth (as such term is
defined in section 725 of the McKinney-Vento Homeless
Assistance Act) or an unaccompanied youth who is self-
supporting and at risk of homelessness; and
``(II) such question is distinct from those relating to an
individual who does not have access to parental income due to
an unusual circumstance.

``(vi) Adjustments.--The Secretary shall disclose on the
FAFSA that the student may, on a case-by-case basis, qualify
for an adjustment under section 479A to the cost of
attendance or the values of the data items required to
calculate the student aid index for the student or parent.
``(C) Notification of request for tax return information.--
The Secretary shall advise students and borrowers who submit
an application for Federal student financial aid under this
title (as well as parents and spouses who sign such an
application or request or a Master Promissory Note on behalf
of those students and borrowers) of the authority of the
Secretary to request that the Internal Revenue Service
disclose their tax return information as described in section
494.
``(D) Authorizations available to the applicant.--
``(i) Authorization to release and transmit to
institution.--An applicant and, if necessary, the parents or
spouse of the applicant shall provide the Secretary with
authorization to release and transmit to an institution, as
specified by the applicant, in order for the applicant's
eligibility for Federal financial aid programs to be
determined, the following:

``(I) Information described under section 6103(l)(13) of
the Internal Revenue Code of 1986.
``(II) All information provided by the applicant on the
application described by this subsection to determine the
applicant's eligibility for Federal financial aid under this
title and for the application, award, and administration of
such Federal financial aid.

``(ii) Authorization to release and transmit to state and
institution.--

``(I) In general.--An applicant and, if necessary, the
parents or spouse of the applicant may provide the Secretary
with authorization to release and transmit to the State of
residence of the applicant and to any institution specified
by the applicant, in order for the applicant's eligibility
for State student financial aid programs or institution-based
student financial aid programs to be determined, the
following:

``(aa) Information described under section 6103(l)(13) of
the Internal Revenue Code of 1986.
``(bb) All information provided by the applicant on the
application described by this subsection for the application,
award, and administration of financial aid by a State or an
institution of higher education.

``(II) Special rule.--An institution to which an applicant
selects to release and transmit information under subclause
(I) shall not be disclosed to any other institution.

``(iii) Authorization to release and transmit to benefits
programs.--An applicant and, if necessary, the parents or
spouse of the applicant may provide the Secretary with
authorization to release and transmit to means-tested Federal
benefit programs, as defined in section 473(e), the
following:

``(I) Information described under section 6103(l)(13) of
the Internal Revenue Code of 1986.
``(II) All information provided by the applicant on the
application described by this subsection to determine the
applicant's eligibility for the application, award, and
administration of such means-tested Federal benefits
programs.

``(E) Action by the secretary.--Upon receiving--
``(i) an application under this section, the Secretary
shall, as soon as practicable, perform the necessary
functions with the Commissioner of Internal Revenue to
calculate the applicant's student aid index and scheduled
award for a Federal Pell Grant, if applicable, assuming full-
time enrollment for an academic year, and note to the
applicant the assumptions relationship to the scheduled
award; and
``(ii) an authorization under subparagraph (D), the
Secretary shall, as soon as practicable, release and transmit
the information described under such subparagraph to the
State of residence of the applicant or an institution, as
specified by the applicant, in order for the applicant's
eligibility for Federal, State, or institutional student
financial aid programs to be estimated or determined.
``(3) Information to be supplied by the secretary of
education.--
``(A) In general.--Upon receiving and timely processing a
free application that contains the information described in
paragraph (2), the Secretary shall provide to the applicant
(and the parents of a dependent student applicant, or spouse
of the independent student applicant, if applicable) the
following information based on full-time attendance for an
academic year:
``(i) The estimated dollar amount of a Federal Pell Grant
scheduled award for which the applicant is eligible for such
award year.
``(ii) Information on other types of Federal financial aid
for which the applicant may be eligible (including situations
in which the applicant could qualify for 150 percent of a
schedule Federal Pell Grant award and loans made under this
title) and how the applicant can find additional information
regarding such aid.
``(iii) Information regarding each institution selected by
the applicant in accordance with paragraph (2)(B)(ii)(X),
including the following:

``(I) The following information, as collected through the
Integrated Postsecondary Education Data System or a successor
Federal data system as designated by the Secretary:

``(aa) Net price by income quintile.
``(bb) Median debt of students upon completion.
``(cc) Graduation rate.
``(dd) Retention rate.
``(ee) Transfer rate, if available.

``(II) Institutional default rate, as calculated under
section 435.

``(iv) If the student is eligible for a student aid index
of less than or equal to zero under section 473 but has not
indicated that they receive Federal means-tested benefits, a
notification of the Federal means-tested benefits for which
they may be eligible.
``(v) Information on education tax credits described in
paragraphs (1) and (2) of section 25A(a) of the Internal
Revenue Code of 1986.
``(vi) If the individual identified as a veteran, or as
serving (on the date of the application) on active duty in
the Armed Forces

[[Page S4819]]

for other than training purposes, information on benefits
administered by the Department of Veteran Affairs or
Department of Defense, respectively.
``(vii) If applicable, the applicant's current outstanding
balance of loans under this title.
``(B) Information provided to the state.--
``(i) In general.--The Secretary shall provide, with
authorization from the applicant in accordance with paragraph
(2)(D)(ii), to a State agency administering State-based
financial aid and serving the applicant's State of residence,
the information described under section 6103(l)(13) of the
Internal Revenue Code of 1986 and information described in
paragraph (2)(B) for the application, award, and
administration of grants and other aid provided directly from
the State to be determined by such State. Such information
shall include the list of institutions provided by the
applicant on the application.
``(ii) Use of information.--A State agency administering
State-based financial aid--

``(I) shall use the information provided under clause (i)
solely for the application, award, and administration of
State-based financial aid for which the applicant is eligible
and for State agency research that does not release any
individually identifiable information on any applicant to
promote college attendance, persistence, and completion;
``(II) may use identifying information for student
applicants to determine whether or not a graduating secondary
student has filed the application in coordination with local
educational agencies or secondary schools to encourage
students to complete the application; and
``(III) shall not share application information with any
other entity without the explicit written consent of the
applicant, except as provided in subclause (II).

``(iii) Limitation on consent process.--A State may provide
a consent process whereby an applicant may elect to share the
information described in clause (i) through explicit written
consent to Federal, State, or local government agencies or
tribal organizations to assist such applicant in applying for
and receiving Federal, State, or local government assistance,
or tribal assistance for any component of the applicant's
cost of attendance which may include financial assistance or
non-monetary assistance.
``(iv) Prohibition.--Any entity that receives applicant
information under clause (iii) shall not sell, share, or
otherwise use applicant information other than for the
purposes outlined in clause (iii).
``(C) Information provided to the institution.--
``(i) In general.--The Secretary shall provide, with
authorization from the applicant in accordance with paragraph
(2)(D)(ii), to each institution selected by the applicant on
the application, the information described under section
6103(l)(13) of the Internal Revenue Code of 1986 and
information described in paragraph (2)(B) for the
application, award, and administration of grants and other
aid provided directly from the institution to be determined
by such institution and grants and other aid provided
directly from the State or Federal Government.
``(ii) Use of information.--An institution--

``(I) shall use the information provided to it under clause
(i) solely for the application, award, and administration of
financial aid to the applicant, and for institutional
research that does not release any individually identifiable
information on any applicant, to promote college attendance,
persistence and completion; and
``(II) shall not share such information with any other
entity without the explicit written consent of the applicant.

``(iii) Limitation on consent process.--An institution may
provide a consent process whereby an applicant can elect to
share the information described in clause (i) with explicit
written consent to a scholarship granting organization,
including a tribal organization (defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304)), or to Federal, State, or local government
agencies or tribal organizations to assist the applicant in
applying for and receiving private assistance, or Federal,
State, local government assistance, or tribal assistance for
any component of the applicant's cost of attendance which may
include financial assistance or non-monetary assistance.
``(iv) Prohibition.--Any entity that receives applicant
information under clause (iii) shall not sell, share, or
otherwise use applicant information other than for the
purposes outlined in clause (iii).
``(4) Development of form and information exchange.--Prior
to the design of the free application under this subsection,
the Secretary shall, to the maximum extent practicable, on an
annual basis--
``(A) consult with stakeholders to gather information about
innovations and technology available to--
``(i) ensure an efficient and effective process;
``(ii) mitigate unintended consequences; and
``(iii) determine the best practices for outreach to
students and families during the transition to the
streamlined process for the determination of Federal
financial aid and Federal Pell Grant eligibility while
reducing the data burden on applicants and families; and
``(B) solicit public comments for the format of the free
application that provides for adequate time to incorporate
feedback prior to development of the application for the
succeeding award year.
``(5) No additional information requests permitted.--In
carrying out this subsection, the Secretary may not require
additional information to be submitted by an applicant (or
the parents or spouse of an applicant) for Federal financial
aid through other requirements or reporting, except as
required under a process or procedure exercised in accordance
with the authority under section 479A.
``(6) State-run programs.--
``(A) In general.--The Secretary shall conduct outreach to
States in order to research the benefits to students of
States relying solely on the financial data made available,
upon authorization by the applicant, as a result of an
application for aid under this subsection for determining the
eligibility of the applicant for State provided financial
aid.
``(B) Secretarial review.--If a State determines that there
is a need for additional data elements beyond those provided
pursuant to this subsection for determining the eligibility
of an applicant for State provided financial aid, the State
shall forward a list of those additional data elements
determined necessary, but not provided by virtue of the
application under this subsection, to the Secretary. The
Secretary shall make readily available to the public through
the Department's websites and other means--
``(i) a list of States that do not require additional
financial information separate from the Free Application for
Federal Student Aid and do not require asset information from
students who qualify for the exemption from asset reporting
under section 479 for the purposes of awarding State
scholarships and grant aid;
``(ii) a list of States that require asset information from
students who qualify for the exemption from asset reporting
under section 479 for the purposes of awarding State
scholarships and grant aid;
``(iii) a list of States that have indicated that they
require additional financial information separate from the
Free Application for Federal Student Aid for purposes of
awarding State scholarships and grant aid; and
``(iv) with the publication of the lists under this
subparagraph, information about additional resources
available to applicants, including links to such State
websites.
``(7) Institution-run financial aid.--
``(A) In general.--The Secretary shall conduct outreach to
institutions of higher education to describe the benefits to
students of relying solely on the financial data made
available, upon authorization for release by the applicant,
as a result of an application for aid under this subsection
for determining the eligibility of the applicant for
institutional financial aid. The Secretary shall make readily
available to the public through its websites and other
means--
``(i) a list of institutions that do not require additional
financial information separate from the Free Application for
Federal Student Aid and do not require asset information from
students who qualify for the exemption from asset reporting
under section 479 for the purpose of awarding institution-run
financial aid;
``(ii) a list of institutions that require asset
information from students who qualify for the exemption from
asset reporting under section 479 for the purpose of awarding
institution-run financial aid;
``(iii) a list of institutions that require additional
financial information separate from the Free Application for
Federal Student Aid for the purpose of awarding institution-
run financial aid; and
``(iv) with the publication of the list in clause (iii),
information about additional resources available to
applicants.
``(8) Security of data.--The Secretary shall, in
consultation with the Secretary of the Treasury, take all
steps necessary to--
``(A) safeguard the data required to be transmitted for the
purpose of this section between Federal agencies and to
States and institutions of higher education;
``(B) secure the transmittal of such data; and
``(C) provide guidance to States and institutions of higher
education regarding their obligation to ensure the security
of the data provided under this section.
``(9) Report to congress.--
``(A) In general.--Not later than one year after the date
of enactment of the Student Loan Repayment and FAFSA
Simplification Act, the Secretary shall report to the
Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Education and Labor of the House
of Representatives on the progress of the Secretary in
carrying out this subsection, including planning and
stakeholder consultation. Such report shall include--
``(i) benchmarks for implementation;
``(ii) entities and organization that the Secretary
consulted;
``(iii) system requirements for such implementation and how
they will be addressed;
``(iv) any areas of concern and potential problem issues
uncovered that may hamper such implementation; and
``(v) solutions determined to address such issues.
``(B) Quarterly updates.--The Secretary shall provide
updates to the Committees described in subparagraph (A)--

[[Page S4820]]

``(i) as to the progress and planning described in
subparagraph (A) prior to implementation of the Free
Application for Federal Student Aid under this subsection not
less often than quarterly; and
``(ii) at least 6 months and 1 year after implementation of
the Free Application for Federal Student Aid.
``(b) Adjustments and Improvements.--
``(1) In general.--The Secretary shall disclose in a
consumer-tested format, upon completion of the Free
Application for Federal Student Aid under this section, that
the student may, on a case-by-case basis, qualify for an
adjustment under section 479A to the cost of attendance or
the values of the data items required to calculate the
Federal Pell Grant or the need analysis for the student or
parent. Such disclosure shall specify--
``(A) examples of the special circumstances under which a
student or family member may qualify for such adjustment or
determination of independence; and
``(B) additional information regarding the steps a student
or family member may take in order to seek an adjustment
under section 479A.
``(2) Consumer testing.--
``(A) In general.--Not later than 9 months after the date
of enactment of the Student Loan Repayment and FAFSA
Simplification Act, the Secretary shall begin consumer
testing the design of the Free Application for Federal
Student Aid under this section with prospective first-
generation college students, representatives of students
(including low-income students, first generation college
students, adult students, veterans, servicemembers, and
prospective students), students' families (including low-
income families, families with first generation college
students, and families with prospective students),
institutions of higher education, secondary school and
postsecondary counselors, and nonprofit consumer groups.
``(B) Updates.--For award year 2021 and each fourth
succeeding award year thereafter, the Secretary shall update
the design of the Free Application for Federal Student Aid
based on additional consumer testing with the populations
described in subparagraph (A) in order to improve the
usability and accessibility of the application.
``(3) Accessibility of the fafsa.--The Secretary shall--
``(A) in conjunction with the Director of the Census
Bureau, shall determine the most common languages spoken at
home in the United States
``(B) develop versions of the Free Application for Federal
Student Aid form in each of the languages determined in
subparagraph (A); and
``(C) ensure the Free Application for Federal Student Aid
is compliant with the most recent Web Content Accessibility
Guidelines, or successor guidelines.
``(4) Reapplication in a succeeding academic year.--In
order to streamline applicant's experience applying for
financial aid, the Secretary shall allow an applicant who
electronically applies for financial assistance under this
title for an academic year subsequent to an academic year for
which such applicant applied for financial assistance under
this title to automatically electronically import all of the
applicant's (including parents, guardians, or spouses, as
applicable) identifying, demographic, and school data from
the previous application and to update such information to
reflect any circumstances that have changed.
``(5) Technology accessibility.--The Secretary shall make
the application under this section available through
prevalent technology. Such technology shall, at a minimum,
enable applicants to--
``(A) save data; and
``(B) submit the application under this title to the
Secretary through such technology.
``(6) Verification burden.--The Secretary shall--
``(A) to the maximum extent practicable, streamline and
simplify the process of verification for applicants for
Federal financial aid;
``(B) in establishing policies and procedures to verify
applicants' eligibility for Federal financial aid, consider--
``(i) the burden placed on low-income applicants;
``(ii) the risk to low-income applicants of failing to
enroll or complete from being selected for verification;
``(iii) the effectiveness of the policies and procedures in
safeguarding against a net cost to taxpayers; and
``(iv) the reasons for the source of any improper payments;
and
``(C) issue a report not less often than annually sharing
the percentage of applicants subject to verification, whether
the applicants ultimately received Federal financial aid
disbursements, and whether the student aid index changed
enough to affect the applicant's award of any Federal
financial aid under this title.
``(7) Studies.--The Secretary shall periodically conduct
studies on--
``(A) the effect of States requiring additional information
specified in clauses (ii) and (iii) of paragraph (6)(B) on
the determination of State financial aid awards and whether
the additional information required is a barrier to college
enrollment by examining--
``(i) how much financial aid awards would change if the
additional information were not required;
``(ii) the number of students who started but did not
finish the Free Application for Federal Student Aid, compared
to the baseline year of 2021; and
``(iii) the number of students who--

``(I) started a Free Application for Federal Student Aid
but did not receive financial assistance under this title for
the applicable academic year; and
``(II) if available, did not enroll in an institution of
higher education in the applicable academic year;

``(B) the most common barriers faced by applications in
completing the Free Applications for Federal Student Aid; and
``(C) the most common reasons that students and families do
not fill out the Free Applications for Federal Student Aid.
``(c) Data and Information.--
``(1) In general.--The Secretary shall publish data in a
publicly accessible manner--
``(A) annually on the total number of Free Applications for
Federal Student Aid submitted by application cycle,
disaggregated by demographic characteristics, type of
institution or institutions of higher education to which the
applicant applied, the applicant's State of legal residence,
and high school and public school district;
``(B) quarterly on the total number of Free Applications
for Federal Student Aid submitted by application cycle,
disaggregated by type of institution or institutions of
higher education to which the applicant applied, the
applicant's State of legal residence, and high school and
public school district;
``(C) weekly on the total number of Free Applications for
Federal Student Aid submitted, disaggregated by high school
and public school district; and
``(D) annually on the number of individuals who apply for
Federal financial aid pursuant to this section who indicated
they are a homeless child or youth (as defined in section 725
of the McKinney-Vento Homeless Assistance Act), an
unaccompanied youth, or a foster care youth.
``(2) Contents.--The data described in paragraph (1) with
respect to homeless children and youth shall include, at a
minimum, for each application cycle--
``(A) the total number of all applicants who were
determined to be individuals described in section 480(d)(8);
and
``(B) the number of applicants described in subparagraph
(A), disaggregated--
``(i) by State; and
``(ii) by the sources of determination as described in
section 479D(b).
``(3) Data sharing.--The Secretary may enter into data
sharing agreements with the appropriate Federal or State
agencies to conduct outreach regarding, and connect
applicants directly with, the means-tested Federal benefit
programs described in subsection (a)(2)(B)(ii)(XVI) for which
the applicants may be eligible.
``(d) Ensuring Form Usability.--
``(1) Signature.--Notwithstanding any other provision of
this title, the Secretary may permit the Free Application for
Federal Student Aid to be submitted without a signature, if a
signature is subsequently submitted by the applicant, or if
the applicant uses an access device provided by the
Secretary.
``(2) Free preparation authorized.--Notwithstanding any
other provision of this title, an applicant may use a
preparer for consultative or preparation services for the
completion of the Free Application for Federal Student Aid
without charging a fee to the applicant if the preparer--
``(A) includes, at the time the application is submitted to
the Department, the name, address or employer's address,
social security number or employer identification number, and
organizational affiliation of the preparer on the applicant's
form;
``(B) is subject to the same penalties as an applicant for
purposely giving false or misleading information in the
application;
``(C) clearly informs each individual upon initial contact,
that the Free Application for Federal Student Aid is a free
form that may be completed without professional assistance;
and
``(D) does not produce, use, or disseminate any other form
for the purpose of applying for Federal financial aid other
than the Free Application for Federal Student Aid form
developed by the Secretary under this section.
``(3) Charges to students and parents for use of forms
prohibited.--The need and eligibility of a student for
financial assistance under this title may be determined only
by using the Free Application for Federal Student Aid
developed by the Secretary under this section. Such
application shall be produced, distributed, and processed by
the Secretary, and no parent or student shall be charged a
fee by the Secretary, a contractor, a third-party servicer or
private software provider, or any other public or private
entity for the collection, processing, or delivery of Federal
financial aid through the use of such application. No data
collected on a form for which a fee is charged shall be used
to complete the Free Application for Federal Student Aid
prescribed under this section, except that a Federal or State
income tax form prepared by a paid income tax preparer or
preparer service for the primary purpose of filing a Federal
or State income tax return may be used to complete the Free
Application for Federal Student Aid prescribed under this
section.
``(4) Application processing cycle.--The Secretary shall
enable students to submit a Free Application for Federal
Student Aid developed under this section and initiate the
processing of such application, not later than January 1 of
the student's planned year

[[Page S4821]]

of enrollment, to the maximum extent practicable, on or
around October 1 prior to the student's planned year of
enrollment.
``(5) Early estimates.--The Secretary shall maintain an
electronic method for applicants to enter income and family
size information to calculate a non-binding estimate of the
applicant's Federal financial aid available under this title
and shall place such calculator on a prominent location at
the beginning of the Free Application for Federal Student
Aid.''.
(n) Student Eligibility.--Section 484 of the Higher
Education Act of 1965 (20 U.S.C. 1091) is amended--
(1) by striking subsection (q) and inserting the following:
``(q) Use of Income Data With IRS.--The Secretary, in
cooperation with the Secretary of the Treasury, shall fulfill
the data transfer requirements under section 6103(l)(13) of
the Internal Revenue Code of 1986.'';
(2) by striking subsection (r);
(3) by redesignating subsections (s) and (t) as subsections
(r) and (s), respectively; and
(4) by adding at the end the following:
``(t) Exception to Required Registration With the Selective
Service System.--Notwithstanding section 12(f) of the
Military Selective Service Act (50 U.S.C. 3811(f)), an
individual shall not be ineligible for assistance or a
benefit provided under this title if the individual is
required under section 3 of such Act (50 U.S.C. 3802) to
present himself for and submit to registration under such
section and fails to do so in accordance with any
proclamation issued under such section, or in accordance with
any rule or regulation issued under such section.''.
(o) Institutional and Financial Assistance Information for
Students.--Section 485 of the Higher Education Act of 1965
(20 U.S.C. 1092) is amended by striking subsection (k).
(p) Early Awareness of Financial Aid Eligibility.--Section
485E of the Higher Education Act of 1965 (20 U.S.C. 1092f) is
amended to read as follows:

``SEC. 485E. EARLY AWARENESS AND OUTREACH OF FINANCIAL AID
ELIGIBILITY.

``(a) In General.--The Secretary shall implement early
outreach activities in order to provide prospective students
and their families with information about financial aid and
estimates of financial aid. Such early outreach activities
shall include the activities described in subsections (b),
(c), and (d).
``(b) Pell Grant Early Awareness Estimates.--
``(1) In general.--The Secretary shall produce a consumer-
tested method of estimating student eligibility for Federal
Pell Grants outlined in section 401(b) utilizing the
variables of family size and adjusted gross income, and
presented in electronic format. There shall be a method for
students to indicate whether they are, or will be in--
``(A) a single-parent household;
``(B) a household with two parents; or
``(C) a household with no children or dependents.
``(2) Consumer testing.--
``(A) In general.--The method of estimating eligibility
described in paragraph (1) shall be consumer tested with
prospective first-generation students and families as well as
low-income individuals and families.
``(B) Updates.--For award year 2023-2024 and each fourth
succeeding award year thereafter, the design of the method of
estimating eligibility shall be updated based on additional
consumer testing with the populations described in
subparagraph (A).
``(3) Distribution.--The method of estimating eligibility
described in paragraph (1) shall be--
``(A) made publicly and prominently available on the
Department of Education website; and
``(B) actively shared by the Secretary with--
``(i) institutions of higher education participating in
programs under this title;
``(ii) all middle and secondary schools eligible for funds
under part A of title I of the Elementary and Secondary
Education Act of 1965; and
``(iii) local educational agencies and middle schools and
secondary schools that serve students not less than 25
percent of whom meet a measure of poverty as described in
section 1113(a)(5) of the Elementary and Secondary Education
Act of 1965.
``(4) Electronic estimator on fafsa.--In accordance with
subsection (d)(5) of section 483, the Secretary shall
maintain an electronic method for applicants to enter income
and family size, and level of education sought information to
calculate a non-binding estimate (which may include a range
or ceiling) of the applicant's Federal financial aid
available under this title and shall place such calculator on
a prominent location on the FAFSA website and in a manner
that encourages students to fill out the FAFSA.
``(c) Early Awareness Plans.--The Secretary shall establish
and implement early awareness and outreach plans to provide
early information about the availability of Federal financial
aid and estimates of prospective students' eligibility for
Federal financial aid as well as to promote the attainment of
postsecondary education specifically among prospective first-
generation students and families as well as low-income
individuals and families, as follows:
``(1) Outreach plans for low-income families.--
``(A) In general.--The Secretary shall develop plans for
each population described in this subparagraph to disseminate
information about the availability of Federal financial aid
under this title, in addition to and in coordination with the
distribution of the method of estimating eligibility under
subsection (b), to--
``(i) all middle schools and secondary schools eligible for
funds under part A of title I of the Elementary and Secondary
Education Act of 1965;
``(ii) local educational agencies and middle schools and
high schools that serve students not less than 25 percent of
whom meet a measure of poverty as described in section
1113(a)(5) of the Elementary and Secondary Education Act; and
``(iii) households receiving assistance under the
supplemental nutrition assistance program established under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
``(B) Content of plans.--The plans described in paragraph
(A) shall--
``(i) provide students and their families with information
on--

``(I) the availability of the College Scorecard described
in section 132;
``(II) the electronic estimates of financial aid available
under subsection (b);
``(III) Federal financial aid available to students,
including eligibility criteria for the Federal financial aid
and an explanation of the Federal financial aid programs
(including applicable Federal educational tax credits); and
``(IV) resources that can inform students of financial aid
that may be available from state-based financial aid, state-
based college savings programs, and scholarships and other
non-governmental sources;

``(ii) describe how the dissemination of information will
be conducted by the Secretary.
``(C) Reporting and updates.--The Secretary shall post the
information about the plans under subparagraph (A) and
associated goals publicly on the Department of Education
website. On an annual basis, the Secretary shall report
qualitative and quantitative outcomes regarding the
implementation of the plans under subparagraph (A). The
Secretary shall review and update such plans not less often
than every 4 award years with the goal of progressively
increasing the impact of the activities under this paragraph.
``(D) Partnership.--The Secretary may partner with States,
State systems of higher education, institutions of higher
education, or college access organizations to carry out this
paragraph.
``(2) Interagency coordination plans.--
``(A) In general.--The Secretary shall develop interagency
coordination plans in order to inform more students and
families, including low-income individuals or families, about
the availability of Federal financial aid under this title
through participation in existing Federal programs or tax
benefits that serve low-income individuals or families, in
coordination with the following Secretaries:
``(i) The Secretary of the Treasury.
``(ii) The Secretary of Labor.
``(iii) The Secretary of Health and Human Services.
``(iv) The Secretary of Agriculture.
``(v) The Secretary of Housing and Urban Development.
``(vi) The Secretary of Commerce.
``(vii) The Secretary of Veterans Affairs.
``(B) Process, activities, and goals.--Each interagency
coordination plan under subparagraph (A) shall--
``(i) to identify opportunities in which low-income
individuals and families could be informed of the
availability of Federal financial aid under this title
through access to other Federal programs that serve low-
income individuals and families;
``(ii) to identify methods to effectively inform low-income
individuals and families of the availability of Federal
financial aid for postsecondary education under this title;
``(iii) develop early awareness activities that align with
the opportunities and methods identified under clauses (ii)
and (iii);
``(iv) establish goals regarding the effects of the
activities to be implemented under clause (iii); and
``(v) provide information on how students and families can
maintain access to Federal programs that serve low-income
individuals and families operated by the agencies identified
under subsection (A) while attending an institution of higher
education.
``(C) Plan with secretary of the treasury.--The interagency
coordination plan under subparagraph (A)(i) between the
Secretary and the Secretary of the Treasury shall further
include specific methods to increase the application for
Federal financial aid under this title from individuals who
file Federal tax returns, including collaboration with tax
preparation entities or other third parties, as appropriate.
``(D) Reporting and updates.--The Secretary shall post the
information about the interagency coordination plans under
paragraph (2) and associated goals publicly on the Department
of Education website. The plans shall have the goal of
progressively increasing the impact of the activities under
this paragraph by increasing the number of low-income
applicants for, and recipients of, Federal financial aid. The
plans shall be updated not less than once every 4 years.
``(3) Nationwide participation in early awareness plans.--
``(A) In general.--The Secretary shall solicit voluntary
public commitments from entities, such as States, State
systems of higher education, institutions of higher
education, and other interested organizations, to carry out
early awareness plans, which shall include goals, to--

[[Page S4822]]

``(i) notify prospective and existing students who are low-
income individuals and families about their eligibility for
Federal aid under this title, as well as State-based
financial aid, if applicable, on an annual basis;
``(ii) increase the number of prospective and current
students who are low-income individuals and families filing
the Free Application for Federal Student Aid; and
``(iii) increase the number of prospective and current
students who are low-income individuals and families
enrolling in postsecondary education.
``(B) Reporting and updates.--Each entity that makes a
voluntary public commitment to carry out an early awareness
plan may submit quantitative and qualitative data based on
the entity's progress toward the goals of the plan annually
prior to a date selected by the Secretary.
``(C) Early awareness champions.--Based on data submitted
by entities, the Secretary shall select and designate
entities submitting public commitments, plans, and goals, as
Early Awareness Champions on an annual basis. Those entities
designated as Early Awareness Champions shall provide one or
more case studies regarding the activities the entity
undertook under this paragraph which shall be made public by
the Secretary on the Department of Education website to
promote best practices.
``(d) Public Awareness Campaign.--
``(1) In general.--The Secretary shall develop and
implement a public awareness campaign designed using current
and relevant independent research regarding strategies and
media platforms found to be most effective in communicating
with low-income populations in order to increase national
awareness regarding the availability of Federal Pell Grants
and financial aid under this title and, at the option of the
Secretary, potential availability of state need-based
financial aid.
``(2) Coordination.--The public awareness campaign
described in paragraph (1) shall leverage the activities in
subsections (b) and (c) to highlight eligibility among low-
income populations. In developing and implementing the
campaign, the Secretary may work in coordination with States,
institutions of higher education, early intervention and
outreach programs under this title, other Federal agencies,
organizations involved in college access and student
financial aid, secondary schools, local educational agencies,
public libraries, community centers, businesses, employers,
workforce investment boards, and organizations that provide
services to individuals that are or were homeless, in foster
care, or are disconnected youth.
``(3) Reporting.--The Secretary shall report on the success
of the public awareness campaign described in paragraph (1)
annually regarding the extent to which the public and target
populations were reached using data commonly used to evaluate
advertising and outreach campaigns and data regarding whether
the campaign produced any increase in applicants for Federal
aid under this title publicly on the Department of Education
website.''.

SEC. __. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS;
APPLICATIONS.

(a) Federal Pell Grants.--Beginning on the effective date
described in subsection (b), section 401 of the Higher
Education Act of 1965 (20 U.S.C. 1070a) is amended to read as
follows:

``SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS;
APPLICATIONS.

``(a) Purpose; Definitions.--
``(1) Purpose.--The purpose of this subpart is to provide a
Federal Pell Grant to low-income students.
``(2) Definitions.--In this section--
``(A) the term `adjusted gross income' means--
``(i) in the case of a dependent student, the adjusted
gross income (as defined in section 62 of the Internal
Revenue Code of 1986) of the student's parents in the second
tax year preceding the academic year; and
``(ii) in the case of an independent student, the adjusted
gross income (as defined in section 62 of the Internal
Revenue Code of 1986) of the student (and the student's
spouse, if applicable) in the second tax year preceding the
academic year;
``(B) the term `family size' has the meaning given the term
in section 480(l);
``(C) the term `poverty line' means the poverty line (as
determined under the poverty guidelines updated periodically
in the Federal Register by the Department of Health and Human
Services under the authority of section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to the student's family size and applicable to the
second tax year preceding the academic year;
``(D) the term `single parent' means--
``(i) a parent of a dependent student who was a head of
household (as defined in section 2(b) of the Internal Revenue
Code of 1986) or a surviving spouse (as defined in section
2(a) of the Internal Revenue Code of 1986) or was an eligible
individual for purposes of the credit under section 32 of
such Code, in the second tax year preceding the academic
year; or
``(ii) an independent student who was a head of household
(as defined in section 2(b) of the Internal Revenue Code of
1986) or a surviving spouse (as defined in section 2(a) of
the Internal Revenue Code of 1986) or was an eligible
individual for purposes of the credit under section 32 of
such Code, in the second tax year preceding the academic
year;
``(E) the term `total maximum Federal Pell Grant' means the
total maximum Federal Pell Grant award per student for any
academic year described under paragraph (5); and
``(F) the term `minimum Federal Pell Grant' means the
minimum amount of a Federal Pell Grant that shall be awarded
to a student eligible under this subpart for any academic
year in which that student is attending full time, which
shall be equal to 10 percent of the total maximum Federal
Pell Grant for such academic year.
``(b) Amount and Distribution of Grants.--
``(1) Determination of amount of a federal pell grant.--
Subject to paragraphs (2) and (3), the amount of a Federal
Pell Grant for a student eligible under this subpart shall be
determined in accordance with the following:
``(A) A student eligible under this subpart shall be
eligible for a total maximum Federal Pell Grant for an
academic year in which the student is enrolled in an eligible
program full time--
``(i) if the student or, in the case of a dependent
student, the dependent student's parent, is not required to
file a Federal income tax return in the second year preceding
the academic year;
``(ii) if the student or, in the case of a dependent
student, the dependent student's parent, is a single parent,
if the adjusted gross income is equal to or less than 225
percent of the poverty line; or
``(iii) if the student or, in the case of a dependent
student, the dependent student's parent, is not a single
parent, if the adjusted gross income is equal to or less than
175 percent of the poverty line.
``(B) A student eligible under this subpart who is not
eligible for a total maximum Federal Pell Grant under
subparagraph (A) for an academic year, shall be eligible for
a Federal Pell Grant for an academic year in which the
student is enrolled in an eligible program full time in an
amount that is not more than the amount determined in
accordance with the following:
``(i) If the student or, in the case of a dependent
student, the dependent student's parent, is a single parent
and the adjusted gross income is greater than 225 percent of
the poverty line and is less than 325 percent of the poverty
line, the amount shall be equal to the greater of--

``(I) the minimum Federal Pell Grant for the academic year;
and
``(II) the total maximum Federal Pell Grant for the
academic year, minus the product of--

``(aa) the adjusted gross income, less an amount equal to
225 percent of the poverty line; and
``(bb) the total maximum Federal Pell Grant for the
academic year, divided by an amount equal to 100 percent of
the poverty line.
``(ii) If the student or, in the case of a dependent
student, the dependent student's parent, is not a single
parent and the adjusted gross income is greater than 175
percent of the poverty line and is less than 275 percent of
the poverty line, the amount shall be equal to the greater
of--

``(I) the minimum Federal Pell Grant for the academic year;
and
``(II) the total maximum Federal Pell Grant for the
academic year, minus the product of--

``(aa) the adjusted gross income, less an amount equal to
175 percent of the poverty line; and
``(bb) the total maximum Federal Pell Grant for the
academic year, divided by an amount equal to 100 percent of
the poverty line.
``(2) Less than full-time enrollment.--In any case where a
student is enrolled in an eligible program of an institution
of higher education on less than a full-time basis (including
a student who attends an institution of higher education on
less than a half-time basis) during any academic year, the
amount of the Federal Pell Grant to which that student is
entitled shall be reduced in direct proportion to the degree
to which that student is not so enrolled on a full-time
basis, rounded to the nearest whole percentage point, as
provided in a schedule of reductions published by the
Secretary computed in accordance with this subpart. Such
schedule of reductions shall be published in the Federal
Register in accordance with section 482 of this Act. Such
reduced Federal Pell Grant for a student enrolled on a less
than full-time basis shall also apply proportionally to
students who are otherwise eligible to receive the minimum
Federal Pell Grant, if enrolled full-time.
``(3) Award may not exceed cost of attendance.--No Federal
Pell Grant under this subpart shall exceed the cost of
attendance (as defined in section 472) at the institution at
which that student is in attendance. If, with respect to any
student, it is determined that the amount of a Federal Pell
Grant for that student exceeds the cost of attendance for
that year, the amount of the Federal Pell Grant shall be
reduced until the Federal Pell Grant does not exceed the cost
of attendance at such institution.
``(4) Study abroad.--Notwithstanding any other provision of
this subpart, the Secretary shall allow the amount of the
Federal Pell Grant to be exceeded for students participating
in a program of study abroad approved for credit by the
institution at which the student is enrolled when the
reasonable costs of such program are greater than the cost of
attendance at the student's home institution, except that the
amount of such

[[Page S4823]]

Federal Pell Grant in any fiscal year shall not exceed the
maximum amount of a Federal Pell Grant for which a student is
eligible under paragraph (1) or (2) during such award year.
If the preceding sentence applies, the financial aid
administrator at the home institution may use the cost of the
study abroad program, rather than the home institution's
cost, to determine the cost of attendance of the student.
``(5) Total maximum federal pell grant.--
``(A) In general.--For award year 2021-2022, and each
subsequent award year, the total maximum Federal Pell Grant
award per student shall be equal to the sum of--
``(i) $1,060; and
``(ii) the amount specified as the maximum Federal Pell
Grant in the last enacted appropriation Act applicable to
that award year.
``(B) Rounding.--The total maximum Federal Pell Grant for
any award year shall be rounded to the nearest $5.
``(6) Funds by fiscal year.--To carry out this section for
each of fiscal years 2021 through 2030--
``(A) there are authorized to be appropriated and are
appropriated (in addition to any other amounts appropriated
to carry out this section and out of any money in the
Treasury not otherwise appropriated) such sums as are
necessary to carry out paragraph (5)(A)(i); and
``(B) such sums as may be necessary are authorized to be
appropriated to carry out paragraph (5)(A)(ii).
``(7) Appropriation.--
``(A) In general.--In addition to any funds appropriated
under paragraph (6) and any funds made available for this
section under any appropriations Act, there are authorized to
be appropriated, and there are appropriated (out of any money
in the Treasury not otherwise appropriated) to carry out this
section, $1,145,000,000 for fiscal year 2021 and each
subsequent award year.
``(B) No effect on previous appropriations.--The amendments
made to this section by the Student Loan Repayment and FAFSA
Simplification Act shall not--
``(i) increase or decrease the amounts that have been
appropriated or are available to carry out this section for
fiscal year 2017, 2018, 2019, or 2020 as of the day before
the effective date of such Act; or
``(ii) extend the period of availability for obligation
that applied to any such amount, as of the day before such
effective date.
``(8) Method of distribution.--
``(A) In general.--For each fiscal year through fiscal year
2030, the Secretary shall pay to each eligible institution
such sums as may be necessary to pay each eligible student
for each academic year during which that student is in
attendance at an institution of higher education as an
undergraduate, a Federal Pell Grant in the amount for which
that student is eligible.
``(B) Alternative disbursement.--Nothing in this section
shall be interpreted to prohibit the Secretary from paying
directly to students, in advance of the beginning of the
academic term, an amount for which they are eligible, in the
cases where an eligible institution does not participate in
the disbursement system under subparagraph (A).
``(9) Additional payment periods in same award year.--
``(A) Effective in the 2017-2018 award year and thereafter,
the Secretary shall award an eligible student not more than
one and one-half Federal Pell Grants during a single award
year to permit such student to work toward completion of an
eligible program if, during that single award year, the
student has received a Federal Pell Grant for an award year
and is enrolled in an eligible program for one or more
additional payment periods during the same award year that
are not otherwise fully covered by the student's Federal Pell
Grant.
``(B) In the case of a student receiving more than one
Federal Pell Grant in a single award year under subparagraph
(A), the total amount of Federal Pell Grants awarded to such
student for the award year may exceed the total maximum
Federal Pell Grant available for an award year.
``(C) Any period of study covered by a Federal Pell Grant
awarded under subparagraph (A) shall be included in
determining a student's duration limit under subsection
(d)(5).
``(D) In any case where an eligible student is receiving a
Federal Pell Grant for a payment period that spans 2 award
years, the Secretary shall allow the eligible institution in
which the student is enrolled to determine the award year to
which the additional period shall be assigned, as it
determines is most beneficial to students.
``(c) Special Rule.--
``(1) In general.--Notwithstanding any other provision of
this title, the total maximum Federal Pell Grant shall be
provided to a student described in paragraph (2).
``(2) Applicability.--Paragraph (1) shall apply to any
dependent or independent student--
``(A) who is eligible to receive a Federal Pell Grant for
the award year for which the determination is made;
``(B) whose parent or guardian was--
``(i) an individual who, on or after September 11, 2001,
died in the line of duty while serving on active duty as a
member of the Armed Forces; or
``(ii) actively serving as a public safety officer and died
in the line of duty while performing as a public safety
officer; and
``(C) who is less than 33 years of age.
``(3) Information.--Notwithstanding any other provision of
law, the Secretary shall establish the necessary data-sharing
agreements with the Secretary of Veterans Affairs and the
Secretary of Defense, as applicable, to provide the
information necessary to determine which students meet the
requirements of paragraph (2).
``(4) Treatment of pell amount.--Notwithstanding section
1212 of the Omnibus Crime Control and Safe Streets Act of
1968 (34 U.S.C. 10302), in the case of a student who receives
an increased Federal Pell Grant amount under this section,
the total amount of such Federal Pell Grant, including the
increase under this subsection, shall not be considered in
calculating that student's educational assistance benefits
under the Public Safety Officers' Benefits program under
subpart 2 of part L of title I of such Act.
``(5) Definition of public safety officer.--For purposes of
this subsection, the term `public safety officer' means--
``(A) a public safety officer, as defined in section 1204
of title I of the Omnibus Crime Control and Safe Streets Act
of 1968 (34 U.S.C. 10284); or
``(B) a fire police officer, defined as an individual who--
``(i) is serving in accordance with State or local law as
an officially recognized or designated member of a legally
organized public safety agency;
``(ii) is not a law enforcement officer, a firefighter, a
chaplain, or a member of a rescue squad or ambulance crew;
and
``(iii) provides scene security or directs traffic--

``(I) in response to any fire drill, fire call, or other
fire, rescue, or police emergency; or
``(II) at a planned special event.

``(d) Period of Eligibility for Grants.--
``(1) In general.--The period during which a student may
receive Federal Pell Grants shall be the period required for
the completion of the first undergraduate baccalaureate
course of study being pursued by that student at the
institution at which the student is in attendance, except
that any period during which the student is enrolled in a
noncredit or remedial course of study, as described in
paragraph (2), shall not be counted for the purpose of this
paragraph.
``(2) Noncredit or remedial courses; study abroad.--Nothing
in this section shall exclude from eligibility courses of
study which are noncredit or remedial in nature (including
courses in English language instruction) which are determined
by the institution to be necessary to help the student be
prepared for the pursuit of a first undergraduate
baccalaureate degree or certificate or, in the case of
courses in English language instruction, to be necessary to
enable the student to utilize already existing knowledge,
training, or skills. Nothing in this section shall exclude
from eligibility programs of study abroad that are approved
for credit by the home institution at which the student is
enrolled.
``(3) No concurrent payments.--No student is entitled to
receive Pell Grant payments concurrently from more than one
institution or from the Secretary and an institution.
``(4) Postbaccalaureate program.--Notwithstanding paragraph
(1), the Secretary may allow, on a case-by-case basis, a
student to receive a Federal Pell Grant if the student--
``(A) is carrying at least one-half the normal full-time
work load for the course of study the student is pursuing, as
determined by the institution of higher education; and
``(B) is enrolled or accepted for enrollment in a
postbaccalaureate program that does not lead to a graduate
degree, and in courses required by a State in order for the
student to receive a professional certification or licensing
credential that is required for employment as a teacher in an
elementary school or secondary school in that State,

except that this paragraph shall not apply to a student who
is enrolled in an institution of higher education that offers
a baccalaureate degree in education.
``(5) Maximum period.--
``(A) In general.--Except as provided in subparagraph (B),
the period during which a student may receive Federal Pell
Grants shall not exceed 12 semesters, or the equivalent of 12
semesters, as determined by the Secretary by regulation. Such
regulations shall provide, with respect to a student who
received a Federal Pell Grant for a term but was enrolled at
a fraction of full time, that only that same fraction of such
semester or equivalent shall count towards such duration
limits.
``(B) Exception.--
``(i) In general.--Any Federal Pell Grant that a student
received during a period described in subclause (I) or (II)
of clause (ii) shall not count towards the student's duration
limits under this paragraph.
``(ii) Applicable periods.--Clause (i) shall apply with
respect to any Federal Pell Grant awarded to a student to
enroll in an eligible program at an institution--

``(I) during a period of a student's attendance at an
institution--

``(aa) at which the student was unable to complete a course
of study due to the closing of the institution; or
``(bb) for which the student was falsely certified as
eligible for Federal aid under this title; or

``(II) during a period--

``(aa) for which the student received a loan under this
title; and
``(bb) for which the loan described in item (aa) is
discharged under--
``(AA) section 437(c)(1) or section 464(g)(1); or

[[Page S4824]]

``(BB) section 432(a)(6).
``(e) Applications for Grants.--
``(1) Deadlines.--The Secretary shall from time to time set
dates by which students shall file the Free Application for
Federal Student Aid under this subpart.
``(2) Application.--Each student desiring a Federal Pell
Grant for any year shall file the Free Application for
Federal Student Aid containing the information necessary to
enable the Secretary to carry out the functions and
responsibilities of this subpart.
``(f) Distribution of Grants to Students.--Payments under
this section shall be made in accordance with regulations
promulgated by the Secretary for such purpose, in such manner
as will best accomplish the purpose of this section. Any
disbursement allowed to be made by crediting the student's
account shall be limited to tuition and fees, and food and
housing if that food and housing is institutionally owned or
operated. The student may elect to have the institution
provide other such goods and services by crediting the
student's account.
``(g) Insufficient Appropriations.--If, for any fiscal
year, the funds appropriated for payments under this subpart
are insufficient to satisfy fully all entitlements, as
calculated under subsection (b) (but at the maximum grant
level specified in such appropriation), the Secretary shall
promptly transmit a notice of such insufficiency to each
House of the Congress, and identify in such notice the
additional amount that would be required to be appropriated
to satisfy fully all entitlements (as so calculated at such
maximum grant level).
``(h) Use of Excess Funds.--
``(1) 15 percent or less.--If, at the end of a fiscal year,
the funds available for making payments under this subpart
exceed the amount necessary to make the payments required
under this subpart to eligible students by 15 percent or
less, then all of the excess funds shall remain available for
making payments under this subpart during the next succeeding
fiscal year.
``(2) More than 15 percent.--If, at the end of a fiscal
year, the funds available for making payments under this
subpart exceed the amount necessary to make the payments
required under this subpart to eligible students by more than
15 percent, then all of such funds shall remain available for
making such payments but payments may be made under this
paragraph only with respect to entitlements for that fiscal
year.
``(i) Treatment of Institutions and Students Under Other
Laws.--Any institution of higher education which enters into
an agreement with the Secretary to disburse to students
attending that institution the amounts those students are
eligible to receive under this subpart shall not be deemed,
by virtue of such agreement, a contractor maintaining a
system of records to accomplish a function of the Secretary.
Recipients of Pell Grants shall not be considered to be
individual grantees for purposes of subtitle D of title V of
Public Law 100-690.
``(j) Institutional Ineligibility Based on Default Rates.--
``(1) In general.--No institution of higher education shall
be an eligible institution for purposes of this subpart if
such institution of higher education is ineligible to
participate in a loan program under part B or D as a result
of a final default rate determination made by the Secretary
under part B or D after the final publication of cohort
default rates for fiscal year 1996 or a succeeding fiscal
year.
``(2) Sanctions subject to appeal opportunity.--No
institution may be subject to the terms of this subsection
unless the institution has had the opportunity to appeal the
institution's default rate determination under regulations
issued by the Secretary for the loan program authorized under
part B or D, as applicable. This subsection shall not apply
to an institution that was not participating in the loan
program authorized under part B or D on October 7, 1998,
unless the institution subsequently participates in the loan
programs.''.
(b) Effective Date.--This section, and the amendments made
by this section, shall take effect on July 1, 2021.
______