H.R. 2927

Student Fairness Act

Latest

I

109th CONGRESS

1st Session

H. R. 2927

IN THE HOUSE OF REPRESENTATIVES

June 15, 2005

Mr. George Miller of California (for himself, Mr. Kildee, Mr. Tierney, Mr. Holt, Mr. Grijalva, Mr. Van Hollen, Mr. Bishop of New York, Mr. Pallone, Mr. Conyers, Mr. McDermott, Ms. McCollum of Minnesota, Mr. Olver, and Ms. DeLauro) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To require the Secretary of Education to rebate lost Pell Grants to students whose Pell Grants were reduced or eliminated because of excess expected family contributions computed in the needs analysis process for student financial aid for academic year 2005–2006.

1.

Short title

This Act may be cited as the Student Fairness Act.

2.

Rebate required

(a)

Calculation of lost Pell Grant amounts

Within 90 days after the date of enactment of this Act, the Secretary of Education shall, for each student who filed a Free Application for Federal Student Aid for the award year 2005–2006, determine the amount (if any) by which a Pell Grant to such student was reduced or eliminated as a result of the amount (if any) by which—

(1)

the expected family contribution, as determined for such student for such award year on the basis of the allowance for State and other taxes as adjusted by the updated tax tables prescribed on December 23, 2004 (Federal Register, V. 69, No. 246, pp. 76926–76927), exceeds

(2)

the expected family contribution that would apply to such student if such contribution were determined on the basis of the allowance for State and other taxes as in effect for the award year 2004-2005.

(b)

Rebate of lost Pell Grant amounts required

For each student determined under subsection (a) to have had a Pell Grant reduced or eliminated, the Secretary shall provide to such student a rebate equal to the amount of such reduction or elimination.

(c)

Authority to use contractors for administration

The Secretary may provide by contract for the administration of the requirements of this section.

(d)

Use of FAFSA data permitted

The Secretary may use information provided on the Free Application for Federal Student Aid to comply with the requirements of this section.

(e)

Treatment of rebates

Any rebate provided under this section—

(1)

shall not be treated as income for purposes of the Internal Revenue Code of 1986; and

(2)

shall not be treated as other financial aid, estimated financial assistance, assets, income, or other resources for purposes of determining—

(A)

whether the student obtained an over-award for the award year 2005-2006; or

(B)

the need for financial assistance for any award year subsequent to award year 2005-2006.

(f)

No obligation on institutions of higher education

Nothing in this section authorizes the Secretary to impose any obligation on an institution of higher education that is eligible to participate in programs under subpart 1 of part A of the title IV of the Higher Education Act of 1965 to perform any administrative requirement to carry out this section.