[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1261 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1261
To simplify access to financial aid and access to information on
college costs, to provide for more learning and less reporting, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 16, 2005
Mr. Alexander introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and
PensionsYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
_______________________________________________________________________
A BILL
To simplify access to financial aid and access to information on
college costs, to provide for more learning and less reporting, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Higher Education Simplification and
Deregulation Act of 2005''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
TITLE I--SIMPLIFICATION OF ACCESS TO FINANCIAL AID AND ACCESS TO
INFORMATION ON COLLEGE COSTS
Subtitle A--Simplification of the Free Application for Federal Student
Aid (FAFSA)
Sec. 111. Simplifying forms and regulations.
Sec. 112. System of early financial aid information.
Sec. 113. Simplification for students with special circumstances.
Sec. 114. Simplifying the verification process.
Subtitle B--Year-Round Federal Pell Grants and Flexible Loans for Year
Round Study
Sec. 121. Year-round Federal Pell Grants.
Sec. 122. Flexible loan limits for year-round study.
Subtitle C--College Best Buys
Sec. 131. College best buys.
Subtitle D--Graduate Education Programs
Sec. 141. Graduate education programs.
Subtitle E--Voter Registration Dissemination Clarification
Sec. 151. Voter registration dissemination clarification.
TITLE II--MORE LEARNING, LESS REPORTING
Sec. 201. Findings.
Subtitle A--Expert Panel To Review Regulations
Sec. 211. Review of regulations.
Subtitle B--One Size Does Not Fit All for Industry and Academic
Regulations
Sec. 221. Different standards for industry and academic regulations.
Subtitle C--Accelerating Negotiated Rulemaking
Sec. 231. Negotiated rulemaking.
Subtitle D--Compliance and Master Calendars
Sec. 241. Compliance and master calendars.
Subtitle E--Ownership of Nonprofit Institutions
Sec. 251. Ownership of nonprofit institutions.
Subtitle F--Disbursement of Student Loans
Sec. 261. Renewal of expired provisions.
TITLE III--ELIMINATION OF CERTAIN REPORTING REQUIREMENTS
Sec. 301. Disclosures of foreign gifts.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.).
TITLE I--SIMPLIFICATION OF ACCESS TO FINANCIAL AID AND ACCESS TO
INFORMATION ON COLLEGE COSTS
Subtitle A--Simplification of the Free Application for Federal Student
Aid (FAFSA)
SEC. 111. SIMPLIFYING FORMS AND REGULATIONS.
(a) Common Financial Aid Form Development and Processing.--Section
483 (20 U.S.C. 1090) is amended--
(1) in subsection (a)--
(A) by striking paragraphs (1), (2), and (5);
(B) by redesignating paragraphs (3), (4), (6), and
(7), as paragraphs (9), (10), (11), and (12),
respectively;
(C) by inserting before paragraph (9), as
redesignated by subparagraph (B), the following:
``(1) In general.--The Secretary, in cooperation with
representatives of agencies and organizations involved in
student financial assistance, shall produce, distribute, and
process free of charge common financial reporting forms as
described in this subsection to be used for application and
reapplication to determine the need and eligibility of a
student for financial assistance under parts A through E (other
than subpart 4 of part A). These forms shall be made available
to applicants in both paper and electronic formats and shall be
referred to (except as otherwise provided in this subsection)
as the `Free Application for Federal Student Aid'.
``(2) Early estimates.--The Secretary shall permit an
applicant to complete a form described in this subsection in
the years prior to enrollment in order to obtain from the
Secretary an estimate of the family contribution, as defined in
section 473. Such applicant shall be permitted to update
information submitted on a form described in this subsection
using the process required under paragraph (5).
``(3) Paper format.--
``(A) In general.--Subject to subparagraph (C), the
Secretary shall produce, distribute, and process common
forms in paper format to meet the requirements of
paragraph (1). The Secretary shall develop a common
paper form for applicants who do not meet the
requirements of subparagraph (B).
``(B) EZ FAFSA.--
``(i) In general.--The Secretary shall
develop and use a simplified paper application
form, to be known as the `EZ FAFSA', to be used
for applicants meeting the requirements under
section 479(c).
``(ii) Reduced data requirements.--The EZ
FAFSA shall permit an applicant to submit for
financial assistance purposes, only the data
elements required to make a determination of
whether the applicant meets the requirements
under section 479(c).
``(iii) State data.--The Secretary shall
include on the EZ FAFSA such data items as may
be necessary to award State financial
assistance, as provided under paragraph (6),
except the Secretary shall not include a
State's data if that State does not permit its
applicants for State assistance to use the EZ
FAFSA.
``(iv) Free availability and processing.--
The provisions of paragraph (7) shall apply to
the EZ FAFSA, and the data collected by means
of the EZ FAFSA shall be available to
institutions of higher education, guaranty
agencies, and States in accordance with
paragraph (9).
``(v) Testing.--The Secretary shall conduct
appropriate field testing on the EZ FAFSA.
``(C) Phasing out the paper form for students who
do not meet the requirements of the ez fafsa.--
``(i) In general.--The Secretary shall make
all efforts to encourage all applicants to
utilize the electronic forms described in
paragraph (4).
``(ii) Phaseout of full fafsa.--Not later
than 5 years after the date of enactment of the
Higher Education Simplification and
Deregulation Act of 2005, to the extent
practicable, the Secretary shall phase out the
long paper form created under subparagraph (A)
and used by applicants who do not meet the
requirements under section 479(c).
``(iii) Maintenance of the fafsa in a
printable electronic file.--The Secretary shall
maintain a version of the paper forms described
in subparagraphs (A) and (B) in a printable
electronic file that is easily portable. The
printable electronic file shall be made easily
accessible and downloadable to students on the
same website used to provide students with the
electronic application forms described in
paragraph (4). The Secretary shall enable
students to submit a form described in this
paragraph that is downloaded and printed from
an electronic file format in order to meet the
filing requirements of this section and in
order to receive aid from programs under this
title.
``(iv) Reporting requirement.--The
Secretary shall report annually to Congress on
the impact of the digital divide on students
completing applications for aid under this
title using the forms described under this
paragraph and paragraph (4). The Secretary
shall also report on the steps taken to
eliminate the digital divide and phase out the
long paper form described in subparagraph (A).
The Secretary's report shall specifically
address the impact of the digital divide on
independent students, adults, and dependent
students, and students meeting the requirements
of subsection (b) or (c) of section 479.
``(4) Electronic format.--
``(A) In general.--The Secretary shall produce,
distribute, and process common forms in electronic
format to meet the requirements of paragraph (1). The
Secretary shall develop common electronic forms for
applicants who do not meet the requirements of
subparagraph (B). The Secretary shall include on the
common electronic forms space for information that
needs to be submitted from the applicant to be eligible
for State financial assistance, as provided under
paragraph (6), except the Secretary shall not require
applicants to complete data required by any State other
than the applicant's State of residence.
``(B) Simplified electronic applications.--
``(i) In general.--The Secretary shall
develop and use a simplified electronic
application form to be used by applicants
meeting the requirements under section 479(c)
and an additional, separate simplified
electronic application form to be used by
applicants meeting the requirements under
section 479(b).
``(ii) Reduced data requirements.--The
simplified electronic application forms shall
permit an applicant to submit for financial
assistance purposes, only the data elements
required to make a determination of whether the
applicant meets the requirements under
subsection (b) or (c) of section 479.
``(iii) State data.--The Secretary shall
include on the simplified electronic
application forms such data items as may be
necessary to award State financial assistance,
as provided under paragraph (6), except the
Secretary shall not require applicants to
complete data required by any State other than
the applicant's State of residence and shall
not include a State's data if such State does
not permit its applicants for State assistance
to use the simplified electronic application
form described in this subparagraph.
``(iv) Free availability and processing.--
The provisions of paragraph (7) shall apply to
the simplified electronic application forms,
and the data collected by means of the
simplified electronic application forms shall
be available to institutions of higher
education, guaranty agencies, and States in
accordance with paragraph (9).
``(v) Testing.--The Secretary shall conduct
appropriate field testing on the forms
developed under this subparagraph.
``(C) Use of forms.--Nothing in this subsection
shall be construed to prohibit the use of the forms
developed by the Secretary pursuant to this paragraph
by an eligible institution, eligible lender, guaranty
agency, State grant agency, private computer software
provider, a consortium of such entities, or such other
entity as the Secretary may designate.
``(D) Privacy.--The Secretary shall ensure that
data collection under this paragraph complies with
section 552a of title 5, United States Code, and that
any entity using the electronic version of the forms
developed by the Secretary pursuant to this paragraph
shall maintain reasonable and appropriate
administrative, technical, and physical safeguards to
ensure the integrity and confidentiality of the
information, and to protect against security threats,
or unauthorized uses or disclosures of the information
provided on the electronic version of the forms. Data
collected by such electronic version of the forms shall
be used only for the application, award, and
administration of aid awarded under this title, State
aid, or aid awarded by eligible institutions or such
entities as the Secretary may designate. No data
collected by such electronic version of the forms shall
be used for making final aid awards under this title
until such data have been processed by the Secretary or
a contractor or designee of the Secretary, except as
may be permitted under this title.
``(E) Signature.--Notwithstanding any other
provision of this Act, the Secretary may permit an
electronic form under this paragraph to be submitted
without a signature, if a signature is subsequently
submitted by the applicant or if the applicant uses a
personal identification number provided by the
Secretary under subparagraph (F).
``(F) Personal identification numbers authorized.--
The Secretary is authorized to assign to applicants
personal identification numbers--
``(i) to enable the applicants to use such
numbers in lieu of a signature for purposes of
completing a form under this paragraph; and
``(ii) for any purpose determined by the
Secretary to enable the Secretary to carry out
this title.
``(5) Streamlined reapplication process.--
``(A) In general.--The Secretary shall develop
streamlined reapplication forms and processes,
including both paper and electronic reapplication
processes, consistent with the requirements of this
subsection, for an applicant who applies for financial
assistance under this title in the next succeeding
academic year subsequent to the academic year in which
such applicant first applied for financial assistance
under this title.
``(B) Mechanisms for reapplication.--The Secretary
shall develop appropriate mechanisms to support
reapplication.
``(C) Identification of updated data.--The
Secretary shall determine, in cooperation with States,
institutions of higher education, and agencies and
organizations involved in student financial assistance,
the data elements that can be updated from the previous
academic year's application.
``(D) Reduced data authorized.--Nothing in this
title shall be construed as limiting the authority of
the Secretary to reduce the number of data elements
required of reapplicants.
``(E) Zero family contribution.--Applicants
determined to have a zero family contribution pursuant
to section 479(c) shall not be required to provide any
financial data in a reapplication form, except that
which is necessary to determine eligibility under such
section.
``(6) State requirements.--
``(A) In general.--Except as provided in paragraphs
(3)(B)(iii), (4)(A), and (4)(B)(iii), the Secretary
shall include on the forms developed under this
subsection, such State-specific data items as the
Secretary determines are necessary to meet State
requirements for need-based State aid. Such items shall
be selected in consultation with State agencies in
order to assist in the awarding of State financial
assistance in accordance with the terms of this
subsection, except as provided in paragraphs
(3)(B)(iii), (4)(A), and (4)(B)(iii). The number of
such data items shall not be less than the number
included on the form on October 7, 1998, unless States
notify the Secretary that they no longer require those
data items for the distribution of State need-based
aid.
``(B) Annual review.--The Secretary shall conduct
an annual review process to determine which forms and
data items the States require to award need-based State
aid and other application requirements that the States
may impose.
``(C) Encourage use of forms.--The Secretary shall
encourage States to take such steps as necessary to
encourage the use of simplified application forms,
including those described in paragraphs (3)(B) and
(4)(B), for applicants who meet the requirements under
subsection (b) or (c) of section 479.
``(D) Federal register notice.--The Secretary shall
publish on an annual basis a notice in the Federal
Register requiring a State agency to inform the
Secretary--
``(i) if the agency is unable to permit
applicants to utilize the simplified
application forms described in paragraph (3)(B)
or (4)(B); and
``(ii) of the State-specific data that the
State agency requires for delivery of State
need-based financial aid.
``(E) State notification to the secretary.--
``(i) In general.--Each State agency shall
notify the Secretary--
``(I) whether the State permits an
applicant to file a form described in
paragraph (3)(B) or (4)(B) for purposes
of determining eligibility for State
need-based financial aid; and
``(II) of the State-specific data
that the State agency requires for
delivery of State need-based financial
aid.
``(ii) Acceptance of forms.--In the event
that a State does not permit an applicant to
file a form described in paragraph (3)(B) or
(4)(B) for purposes of determining eligibility
for State need-based financial aid--
``(I) the State shall notify the
Secretary if it is not permitted to do
so because of either State law or
because of agency policy; and
``(II) the notification under
subclause (I) shall include an estimate
of the program cost to permit
applicants to complete simplified
application forms under paragraphs
(3)(B) and (4)(B).
``(iii) Lack of notification by the
state.--If a State does not notify the
Secretary pursuant to clause (i), the Secretary
shall--
``(I) permit residents of that
State to complete simplified
application forms under paragraphs
(3)(B) and (4)(B); and
``(II) not require any resident of
such State to complete any data
previously required by that State under
this section.
``(7) Charges to students and parents for use of forms
prohibited.--The common financial reporting forms prescribed by
the Secretary under this subsection 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 financial aid through the use of such forms. The
need and eligibility of a student for financial assistance
under parts A through E (other than under subpart 4 of part A)
may only be determined by using a form developed by the
Secretary pursuant to this subsection. No student may receive
assistance under parts A through E (other than under subpart 4
of part A), except by use of a form developed by the Secretary
pursuant to this subsection. No data collected on a paper or
electronic form, worksheet, or other document for which a fee
is charged shall be used to complete the form prescribed under
this subsection. No person, commercial entity, or other entity
shall request, obtain, or utilize an applicant's Personal
Identification Number for purposes of submitting an application
on an applicant's behalf except--
``(A) State agencies that have entered into an
agreement with the Secretary to streamline
applications;
``(B) eligible institutions; or
``(C) programs under this title as permitted by the
Secretary.
``(8) Application processing cycle.--The Secretary shall--
``(A) enable students to submit forms created under
this subsection in order to meet the filing
requirements of this section and in order to receive
aid from programs under this title; and
``(B) enable students to submit forms created under
this subsection and initiate the processing of such
forms under this subsection, as early as practicable
prior to January 1 of the student's planned year of
enrollment.'';
(D) in paragraph (10)(C)(ii), as redesignated by
subparagraph (B), by striking ``subsection (b)'' and
inserting ``paragraph (5)''; and
(E) by adding at the end the following:
``(13) Early application and award demonstration program.--
``(A) In general.--Not later than 2 years after the
date of enactment of this paragraph, the Secretary
shall implement an early application demonstration
program enabling dependent students to--
``(i) complete applications under this
subsection in such students' junior year of
secondary school, or in the academic year that
is 2 years prior to such students' intended
year of enrollment; and
``(ii) be eligible to receive aid under
this title and such aid as may be available
from participants under this paragraph,
including State financial assistance and other
aid provided by participating institutions.
``(B) Purpose.--The purpose of the demonstration
program is to measure the benefits, in terms of student
aspirations and plans to attend college, and the
adverse effects, in terms of program costs, integrity,
distribution, and delivery of aid under this title, of
implementing an early application system for all
dependent students that allows dependent students to
apply for financial aid using information from the year
prior to the year prior to enrollment. Additional
objectives associated with implementation of the
demonstration program are:
``(i) Measure the feasibility of enabling
dependent students to apply for Federal, State,
and institutional financial aid in such
students' junior year of secondary school,
using information from the year prior to the
year prior to enrollment, by completing any of
the application forms under this subsection.
``(ii) Determine the feasibility, benefits,
and adverse effects of implementing a data
match with the Internal Revenue Service, as
described in subparagraph (E).
``(iii) Identify whether receiving final
financial aid awards not later than the fall of
the senior year provides students with
additional time to compete for the limited
resources available for State and institutional
financial aid and positively impacts the
college aspirations and plans of these
students.
``(iv) Measure the impact of using income
information from the year prior to the year
prior to enrollment on--
``(I) eligibility for financial aid
under this title and for other State
and institutional aid; and
``(II) the cost of financial aid
programs under this title.
``(v) Effectively evaluate the benefits and
adverse effects of the demonstration program on
program costs, integrity, distribution, and
delivery of aid.
``(C) Participants.--The Secretary shall select
States and institutions within these States to
participate in the demonstration program that are
participating in the programs under this title and that
are willing to make final financial aid awards to
students based on such students' application
information from the year prior to the year prior to
enrollment. The Secretary shall also select as
participants in the demonstration program secondary
schools located in the participating States and
dependent students who reside in the participating
States.
``(D) Application process.--The Secretary shall
ensure that the following provisions are included in
the demonstration program:
``(i) Participating States and institutions
shall--
``(I) allow participating students
to apply for financial aid during such
students' junior year of secondary
school using information from the year
prior to the year prior to enrollment
and all provisions available under this
title; and
``(II) award final financial aid
awards to participating students based
on the applications provided under the
demonstration program.
``(ii) Participating States and
institutions shall not require students
participating in the demonstration program to
complete an additional application in the year
prior to enrollment in order to receive State
aid and any other institutional aid.
``(iii) Financial aid administrators at
participating institutions shall be allowed to
use such administrators' discretion in awarding
financial aid to participating students as
outlined under sections 479A and 480(d).
``(E) Data match with the internal revenue
service.--The Secretary shall include in the
demonstration project a data match with the Internal
Revenue Service in order to verify data provided by
participating students and gauge the feasibility of
implementing such a data match for all students
applying for aid under this title.
``(F) Evaluation.--The Secretary shall conduct a
rigorous evaluation of the demonstration program in
order to measure the program's benefits and adverse
effects as indicated under subparagraph (B).
``(G) Outreach.--The Secretary shall make
appropriate efforts in order to notify States of the
demonstration program. Upon determination of which
States will participate in the demonstration program,
the Secretary shall continue to make efforts to notify
institutions and dependent students within such States
of the opportunity to participate in the demonstration
program and of the participation requirements.
``(H) Consultation.--The Secretary shall consult
with the Advisory Committee on Student Financial
Assistance, as established under section 491, on the
design and implementation of the demonstration program
and on the evaluation described in subparagraph (F).'';
(2) by striking subsection (b);
(3) by redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively; and
(4) by adding at the end the following:
``(e) Addressing the Digital Divide.--The Secretary shall utilize
savings accrued by moving more applicants to the electronic forms
described in subsection (a)(4) and by phasing out the full paper form
pursuant to subsection (a)(3)(C) to improve access to the electronic
forms described in subsection (a)(4) for applicants meeting the
requirements of section 479(c).''.
(b) Master Calendar.--Section 482(a)(1)(B) (20 U.S.C.
1089(a)(1)(B)) is amended to read as follows:
``(B) by March 1: proposed modifications, updates,
and notices pursuant to sections 478 and 483(a)(6)
published in the Federal Register;''.
SEC. 112. SYSTEM OF EARLY FINANCIAL AID INFORMATION.
Section 485 (20 U.S.C. 1092) is amended by adding at the end the
following:
``(h) Early Awareness of Financial Aid Eligibility.--
``(1) In general.--The Secretary shall implement, in
cooperation with States, institutions of higher education,
elementary schools, secondary schools, early intervention and
outreach programs under this title, and other agencies and
organizations involved in student financial assistance and
college access, a comprehensive system of early financial aid
information to provide students and families with early and
adequate information about financial aid and early estimates of
such students' financial aid eligibility from multiple sources.
Such system shall include the activities described in
paragraphs (2) and (3).
``(2) Availability of means to communicate aid
eligibility.--
``(A) Students who receive benefits.--The Secretary
shall--
``(i) make special efforts to notify
students who receive or are eligible to receive
benefits under Federal means-tested benefit
programs (including the school lunch program
established under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et
seq.), the food stamp program under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.), and
other such programs as determined by the
Secretary) of such students' potential
eligibility for a maximum Federal Pell Grant
under subpart 1 of part A; and
``(ii) disseminate informational materials
as determined necessary.
``(B) Middle school students.--The Secretary shall
make, in cooperation with States, institutions of
higher education, middle schools, and programs under
this title that serve middle school students, special
efforts to notify middle school students and their
parents of the availability of financial aid under this
title and, in accordance with paragraph (3)(D), of the
approximate amounts of grant, work-study, and loan aid
that an individual would be eligible for under this
title upon completion and verification of an
application form under section 483(a). The Secretary
shall ensure that such information is accurate and that
it is provided in an age-appropriate format using
dissemination mechanisms suitable for students in
middle school.
``(C) Secondary school students.--The Secretary
shall make, in cooperation with States, institutions of
higher education, secondary schools, and programs under
this title that serve secondary school students,
special efforts to notify students in secondary school
and their parents, as early as possible but not later
than such students' junior year of secondary school, of
the availability of financial aid under this title and,
in accordance with paragraph (3)(D), of the approximate
amounts of grant, work-study, and loan aid that an
individual would be eligible for under this title upon
completion and verification of an application form
under section 483(a). The Secretary shall ensure that
such information is accurate and that it is provided in
an age-appropriate format using dissemination
mechanisms suitable for students in secondary school.
``(D) Adult learners.--The Secretary shall make, in
cooperation with States, institutions of higher
education, and other organizations involved in student
financial aid, special efforts to provide individuals
who would qualify as independent students, as defined
in section 480(d), with information regarding the
availability of financial aid under this title and, in
accordance with paragraph (3)(D), of the approximate
amounts of grant, work-study, and loan aid that an
individual would be eligible for under this title upon
completion and verification of an application form
under section 483(a). The Secretary shall ensure that
such information--
``(i) is accurate;
``(ii) includes specific information
regarding the availability of financial aid for
students defined as independent students under
section 480(d); and
``(iii) uses dissemination mechanisms
suitable for adult learners.
``(E) Public awareness campaign.--Not later than 3
years after the date of enactment of the Higher
Education Simplification and Deregulation Act of 2005,
the Secretary shall implement, in consultation with
States, institutions of higher education, early
intervention and outreach programs under this title,
and other agencies and organizations involved in
student financial aid, a public awareness campaign in
order to increase national awareness regarding the
availability of financial aid under this title. The
public awareness campaign shall disseminate accurate
information regarding the availability of financial aid
under this title and shall be implemented, to the
extent practicable, using a variety of media, including
print, television, and radio. The Secretary shall
design and implement the public awareness campaign
based upon relevant independent research and the
information and dissemination strategies that have been
found to be the most effective in implementing
subparagraphs (A) through (D).
``(3) Availability of means to determine approximate
financial aid eligibility.--
``(A) In general.--The Secretary shall provide, in
cooperation with States, institutions of higher
education, and other agencies and organizations
involved in student financial aid, and in accordance
with subparagraph (D), both via a widely disseminated
printed form and the Internet or other electronic
means, the capability for individuals to determine
easily, by entering relevant data, the approximate
amounts of grant, work-study, and loan aid an
individual would be eligible for under this title upon
completion and verification of an application form
under section 483(a).
``(B) Data elements.--The Secretary shall
determine, in cooperation with States, institutions of
higher education, and other agencies and organizations
involved in student financial aid, the data elements
that are necessary to create a simplified form that
individuals can use to determine easily the approximate
amounts of grant, work-study, and loan aid an
individual would be eligible for under this title.
``(C) Qualification to use simplified
application.--The capability provided under this
paragraph shall include the capability to determine
whether or not the individual is eligible to submit a
simplified application form under paragraph (3)(B) or
(4)(B) of section 483(a).
``(D) Demonstration program to improve early
financial aid information.--
``(i) In general.--The Secretary shall
develop, in cooperation with States,
institutions of higher education, and early
intervention and outreach programs under this
title, a comprehensive demonstration program to
determine--
``(I) the feasibility of providing
individuals with accurate estimates of
the approximate amount of State and
institutional aid, including from
programs under this title that require
matching contributions from States or
institutions of higher education, that
an individual would be eligible for
upon completion and verification of an
application form under section 483(a)
and any additional forms required by a
State or institution;
``(II) the feasibility of
developing a mechanism to allow an
individual to easily determine, by
entering relevant data, the estimates
of State and institutional aid
described in subclause (I); and
``(III) whether the information
students receive upon completion of an
application form under section 483(a)
can be improved in order to positively
influence student enrollment in higher
education without adverse effects on
States or institutions of higher
education.
``(ii) Consultation.--In designing and
implementing the demonstration program under
clause (i), the Secretary shall consult with
the Advisory Committee on Student Financial
Assistance, established under section 491.
``(iii) Report.--Not later than 3 years
after the date of enactment of the Higher
Education Simplification and Deregulation Act
of 2005, the Secretary shall submit a report to
the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on
Education and the Workforce of the House of
Representatives, describing--
``(I) the results of the
demonstration program under this
subparagraph; and
``(II) any proposed statutory or
regulatory changes resulting from
carrying out the demonstration
program.''.
SEC. 113. SIMPLIFICATION FOR STUDENTS WITH SPECIAL CIRCUMSTANCES.
(a) Simplifying for Students With Special Circumstances.--Section
480(d) (20 U.S.C. 1087vv(d)) is amended to read as follows:
``(d) Independent Student.--
``(1) Definition.--The term `independent', when used with
respect to a student, means any individual who--
``(A) is 24 years of age or older by December 31 of
the award year;
``(B) is an orphan, in foster care, or a ward of
the court, or was in foster care or a ward of the court
until the individual reached the age of 18;
``(C) is a veteran of the Armed Forces of the
United States (as defined in subsection (c)(1));
``(D) is a graduate or professional student;
``(E) is a married individual;
``(F) has legal dependents other than a spouse;
``(G) is a student for whom a financial aid
administrator makes a documented determination of
independence by reason of unusual circumstances; or
``(H) is a member of the Armed Forces on active
duty (as that term is defined in the first sentence of
section 101(d)(1) of title 10, United States Code) or
is a member of the National Guard performing full-time
State active duty service.
``(2) Simplifying the dependency override process.--Nothing
in this section shall prohibit a financial aid administrator
from making a determination of independence, as described in
paragraph (1)(G), based upon a documented determination of
independence, as described in paragraph (1)(G), previously made
by another financial aid administrator in the same application
year.''.
(b) Tailoring Electronic Applications for Students With Special
Circumstances.--Section 483(a) (20 U.S.C. 1090(a)), as amended by
section 111, is further amended by adding at the end the following:
``(14) Applications for students seeking a documented
determination of independence.--In the case of a dependent
student seeking a documented determination of independence by a
financial aid administrator, as described in section 480(d),
nothing in this section shall prohibit the Secretary from--
``(A) allowing such student to--
``(i) indicate the student's unusual
circumstance and the student's request for a
documented determination of independence on an
electronic form developed pursuant to this
section; and
``(ii) submit such a form for preliminary
processing with only the data required for an
independent student, as defined in section
480(d);
``(B) collecting and processing on a preliminary
basis data provided by such student using the
electronic forms developed pursuant to this section;
and
``(C) distributing such data to institutions of
higher education, guaranty agencies, and States for the
purposes of processing loan applications and
determining need and eligibility for institutional and
State financial aid awards on a preliminary basis,
pending a documented determination of independence by a
financial aid administrator.''.
SEC. 114. SIMPLIFYING THE VERIFICATION PROCESS.
Section 484 (20 U.S.C. 1091) is amended by adding at the end the
following:
``(s) Verification of Student Eligibility.--
``(1) Review.--The Secretary shall review all Departmental
regulations related to verifying the information provided on a
student's financial aid application in order to simplify the
verification process for students and institutions.
``(2) Report.--The Secretary shall, not later than 2 years
after the date of enactment of the Higher Education
Simplification and Deregulation Act of 2005, prepare and submit
a final report to the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on Education and
the Workforce of the House of Representatives on steps taken,
to the extent practicable, to simplify the verification
process. The report shall specifically address steps taken to--
``(A) reduce the burden of verification on
students, particularly on students who may be selected
for verification at multiple institutions;
``(B) reduce the number of data elements that are
required to be verified for applicants meeting the
requirements of subsection (b) or (c) of section 479 so
that only those data elements required to determine
eligibility for the formulas defined in subsection (b)
or (c) of section 479 are subject to verification;
``(C) reduce the burden and costs associated with
verification for institutions that are eligible to
participate in Federal student aid programs under this
title; and
``(D) increase the use of technology in the
verification process.''.
Subtitle B--Year-Round Federal Pell Grants and Flexible Loans for Year
Round Study
SEC. 121. YEAR-ROUND FEDERAL PELL GRANTS.
Section 401(b)(6) of the Higher Education Act of 1965 (20
U.S.C. 1070a(b)(6)) is amended to read as follows:
``(6) The Secretary shall, for students enrolled full-time
in an associate or baccalaureate degree program of study at an
eligible institution, award such students 2 Federal Pell Grants
during a single award year to permit such students to
accelerate progress toward their degree objectives by enrolling
in academic programs for more than 9 months of an academic
year.''.
SEC. 122. FLEXIBLE LOAN LIMITS FOR YEAR-ROUND STUDY.
(a) Federal Insurance Limits.--
(1) Annual limits.--Section 425(a)(1) (20 U.S.C.
1075(a)(1)) is amended by adding at the end the following:
``(D) Notwithstanding subparagraph (A), the total of loans
made to a student in any academic year or its equivalent (as
determined by the Secretary) which may be covered by Federal
loan insurance under this part may exceed the annual limits
contained in clauses (i), (ii), (iii), and (iv) of subparagraph
(A), if--
``(i) the student is enrolled in academic programs
for more than 9 months of an academic year; and
``(ii) the aggregate insured unpaid principal
amount for all such insured loans made to the student
does not exceed the aggregate limits described in
paragraph (2).''.
(2) Aggregate limits.--Section 425(a)(2) (20 U.S.C.
1075(a)(2)) is amended by adding at the end the following:
``(C)(i) Notwithstanding subparagraph (A)(ii), the
aggregate insured unpaid principal amount described in
subparagraph (A)(ii) for all such insured loans made to any
graduate or professional student (as defined by the Secretary)
shall not at any time exceed the sum of--
``(I) $65,500; and
``(II) the amount by which--
``(aa) the cumulative undergraduate maximum
annual limit described in clauses (i), (ii),
and (iii) of paragraph (1)(A) that is
applicable to the student for preceding
undergraduate years; exceeds
``(bb) the total amount of loans made to
the student and covered by Federal loan
insurance under this part.
``(ii) The additional amounts made available to a student
under clause (i) shall be made available to the student in
equal amounts over the course of the student's graduate or
professional program of study.''.
(b) Guarantee Limits.--
(1) Annual limits.--The matter following subclause (II) of
section 428(b)(1)(A)(vi) (20 U.S.C. 1078(b)(1)(A)(vi)) is
amended--
(A) by striking the semicolon and inserting '',
and''; and
(B) by adding at the end the following:
``except that notwithstanding any other provision of this
subparagraph, the total of loans made to a student in any
academic year or its equivalent (as determined by the
Secretary) which may be covered by Federal loan insurance under
this part may exceed the annual limits contained in clauses
(i), (ii), (iii), (iv), (v), and (vi), if the student is
enrolled in academic programs for more than 9 months of an
academic year and the aggregate insured unpaid principal amount
for all such insured loans made to the student does not exceed
the aggregate limits described in subparagraph (B);''.
(2) Aggregate limits.--Section 428(b)(1)(B) (20 U.S.C.
1078(b)(1)(B)) is amended--
(A) in clause (i), by striking ``and'' after the
semicolon;
(B) in clause (ii), by striking ``428B,'' and
inserting ``428B; and''; and
(C) by inserting before the matter following clause
(ii) the following:
``(iii) in the case of a graduate or
professional student (as defined by the
Secretary) and notwithstanding clause (ii), the
sum of (I) $65,500 and (II) the amount by which
the cumulative undergraduate maximum annual
limit described in clauses (i), (ii), (iii),
(iv), (v), and (vi) of subparagraph (A) that is
applicable to the student for preceding
undergraduate years, exceeds the total amount
of loans made to the student and covered by
Federal loan insurance under this part, which
amount described in subclause (II) of this
clause shall be made available to the student
in equal amounts over the course of the
student's graduate or professional program of
study,''.
Subtitle C--College Best Buys
SEC. 131. COLLEGE BEST BUYS.
Part C of title I (20 U.S.C. 1015) is amended by adding at the end
the following:
``SEC. 132. COLLEGE BEST BUYS.
``(a) List Published.--The Secretary shall annually publish in the
Federal Register a list of the top 200 institutions of higher
education, for each sector described in subsection (c)(2), that are the
best buy for the academic year in order to help students decipher
institutional expense and financial aid data.
``(b) Requirements.--In publishing the list described in subsection
(a), the Secretary--
``(1) shall only use the most recent data available to the
Secretary from the National Center for Education Statistics;
and
``(2) shall publish the data in a user friendly manner.
``(c) Contents.--
``(1) Contents.--The list described in subsection (a) shall
identify, for each sector described in paragraph (2), the
following:
``(A) The 200 institutions of higher education with
the lowest tuition and required fees.
``(B) The 200 institutions of higher education with
the lowest cost of attendance.
``(C) The 200 institutions of higher education with
the largest percentage of incoming full-time students
who receive financial aid.
``(D) The 200 institutions of higher education with
the largest average amount of incoming full-time
student financial aid on a per student basis.
``(E) The 200 institutions of higher education with
the largest percentage of students who receive
institutional grants and scholarships.
``(F) The 200 institutions of higher education with
the slowest percentage increase in tuition and required
fees during the preceding 5 years.
``(G) The 200 institutions of higher education with
the slowest percentage increase in total cost of
attendance during the preceding 5 years.
``(2) Sectors.--The sectors referred to in paragraph (1)
are as follows:
``(A) 4-year public, degree-granting, institutions
of higher education.
``(B) 2-year public, degree-granting, institutions
of higher education.
``(C) 4-year, nonprofit, private, degree-granting,
institutions of higher education.
``(D) 2-year, nonprofit, private, degree-granting,
institutions of higher education.
``(E) 4-year, for-profit, private, degree-granting,
institutions of higher education.
``(F) 2-year, for-profit, private, degree-granting,
institutions of higher education.
``(G) Public, non-degree-granting, institutions of
higher education.
``(H) Private, nonprofit, non-degree-granting,
institutions of higher education.
``(I) Private, for-profit, non-degree-granting,
institutions of higher education.
``(d) Date.--The list described in this section shall be published
on June 1, 2006, and each June 1 thereafter.''.
Subtitle D--Graduate Education Programs
SEC. 141. GRADUATE EDUCATION PROGRAMS.
(a) Javits Fellowships.--Section 701(a) (20 U.S.C. 1134(a)) is
amended by striking ``financial need,''.
(b) Javits Stipends.--Section 703(a) (20 U.S.C. 1134b(a)) is
amended by striking ``, except'' and all that follows through ``title
IV''.
(c) Graduate Assistance Applications.--Section 713(b)(5) (20 U.S.C.
1135b(b)(5)) is amended--
(1) by striking subparagraph (A); and
(2) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
(d) Graduate Assistance Stipends.--Section 714(b) (20 U.S.C.
1135c(b)) is amended by striking ``, except'' and all that follows
through ``title IV''.
Subtitle E--Voter Registration Dissemination Clarification
SEC. 151. VOTER REGISTRATION DISSEMINATION CLARIFICATION.
Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is amended by adding at
the end the following:
``(D) An institution shall be considered in compliance with
the requirements of subparagraph (A) for any student to whom
the institution electronically transmits a message containing a
voter registration form acceptable for use in the State in
which the institution is located, or an Internet address where
such a form can be downloaded, if such information is in an
electronic message devoted solely to voter registration.''.
TITLE II--MORE LEARNING, LESS REPORTING
SEC. 201. FINDINGS.
Congress makes the following findings:
(1) Institutions of higher education are among the most
heavily regulated entities in the United States.
(2) With the exception of the Consumer Product Safety
Commission and the Federal Trade Commission, all Federal
agencies are involved in regulating some aspect of higher
education.
(3) There are more than 7,000 regulations associated with
the student aid programs under title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070 et seq.).
Subtitle A--Expert Panel To Review Regulations
SEC. 211. REVIEW OF REGULATIONS.
Section 498B (20 U.S.C. 1099c-2) is amended to read as follows:
``SEC. 498B. REVIEW OF REGULATIONS.
``(a) Review Required.--The Secretary shall review each regulation
issued under this title that is in effect at the time of the review and
applies to the operations or activities of any participant in the
programs assisted under this title. The review shall include a
determination of whether the regulation is duplicative, is no longer
necessary, is inconsistent with other Federal requirements, is easily
understood, is feasible, is cost effective, is narrowly tailored, and
is based on an assessment of risk. The review may involve 1 or more of
the following:
``(1) An assurance of the uniformity of interpretation and
application of such regulations.
``(2) The establishment of a process for ensuring that
eligibility and compliance issues, such as institutional audit,
program review, and recertification, are considered
simultaneously.
``(3) A determination of the extent to which unnecessary
costs are imposed on institutions of higher education as a
consequence of the applicability to the facilities and
equipment of such institutions of regulations prescribed for
purposes of regulating industrial and commercial enterprises.
``(b) Regulatory and Statutory Relief for Small Volume
Institutions.--The Secretary shall review and evaluate ways in which
regulations under and provisions of this Act affecting institutions of
higher education (other than institutions described in section
102(a)(1)(C)), that have received in each of the 2 most recent award
years prior to the date of enactment of the Higher Education
Simplification and Deregulation Act of 2005 less than $200,000 in funds
through this title, may be improved, streamlined, or eliminated.
``(c) Consultation.--In carrying out subsections (a) and (b), the
Secretary shall consult with relevant representatives of institutions
of higher education participating in the programs authorized by this
title, as follows:
``(1) Panels.--The Secretary shall convene not less than 4
review panels of representatives of the groups involved in
student financial assistance programs under this title to
provide advice and recommendations on the regulations under
this title related to the areas of--
``(A) the operations of the financial assistance
programs;
``(B) the institutional eligibility requirements
for the financial assistance programs;
``(C) regulations not directly related to the
operations or the institutional eligibility
requirements of the financial assistance programs; and
``(D) regulations for dissemination of information
to students about the financial assistance programs.
``(2) Nominations.--The Secretary shall seek nominations
for individuals with expertise in each area described in
subparagraphs (A) through (D) of paragraph (1) to serve on a
panel for that area.
``(3) Goals and recommendations.--Each panel shall identify
the goals to be achieved by the regulations applicable to the
appropriate area and shall recommend appropriate alternatives
identified as the most effective and efficient means to achieve
the goals with minimal burden and cost.
``(d) Reports to Congress.--
``(1) In general.--The Secretary shall submit, not later
than 2 years after the date of enactment of the Higher
Education Simplification and Deregulation Act of 2005, a report
to the Committee on Health, Education, Labor, and Pensions of
the Senate and the Committee on Education and the Workforce of
the House of Representatives detailing the Secretary's findings
and recommendations based on the reviews conducted under
subsections (a) and (b), including a timetable for
implementation of any recommended changes in regulations and a
description of any recommendations for legislative changes.
``(2) Additional reports.--Not later than January 1, 2009,
the Secretary shall submit a report to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee
on Education and the Workforce of the House of Representatives
detailing the Secretary's findings and recommendations based on
the review conducted under subsection (a), including a
timetable for implementation of any recommended changes in
regulations and a description of any recommendations for
legislative changes.''.
Subtitle B--One Size Does Not Fit All for Industry and Academic
Regulations
SEC. 221. DIFFERENT STANDARDS FOR INDUSTRY AND ACADEMIC REGULATIONS.
(a) Development of Standards.--The Secretary of Education shall
award a grant to the National Research Council to enable the National
Research Council to develop different standards, in environmental,
health, and safety areas, for the regulation of--
(1) industrial facilities; and
(2) research and teaching laboratories and facilities at
institutions of higher education.
(b) Report.--The National Research Council shall report to Congress
regarding the different standards developed under subsection (a). Such
report shall contain recommendations for statutory or regulatory
changes needed to implement the different standards described in
subsection (a).
(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $500,000 for fiscal year 2006.
Subtitle C--Accelerating Negotiated Rulemaking
SEC. 231. NEGOTIATED RULEMAKING.
Section 492(b) (20 U.S.C. 1098a(b)) is amended by adding at the end
the following:
``(3) New timeframe.--Notwithstanding any other provision
of this section, all negotiated rulemaking described in this
section that commences after the date of enactment of the
Higher Education Simplification and Deregulation Act of 2005
shall be completed not later than 1 year after the date of
enactment of the provision of law for which the negotiated
rulemaking is undertaken.''.
Subtitle D--Compliance and Master Calendars
SEC. 241. COMPLIANCE AND MASTER CALENDARS.
Section 482 (20 U.S.C. 1089) is amended by adding at the end the
following:
``(e) Compliance Calendar.--Prior to the beginning of each award
year, the Secretary shall provide to eligible institutions a list of
all the reports and disclosures required under this Act. The list shall
include--
``(1) the date each report is required to be completed and
to be submitted, made available, or disseminated;
``(2) the required recipients of each report;
``(3) any required method for transmittal or dissemination;
``(4) a description of the content of each report
sufficient to allow the institution to identify the appropriate
individuals to be assigned the responsibility for such report;
``(5) references to the statutory authority, applicable
regulations, and current guidance issued by the Secretary
regarding each report; and
``(6) any other information which is pertinent to the
content or distribution of the report or disclosure.
``(f) Initial Effective Date of New Disclosure or Reporting.--
``(1) In general.--For any new or revised requirement for
institutional disclosure or reporting under this Act enacted
after July 1, 2006, the period for which data shall be
collected shall begin not earlier than 270 days after the
publication of final regulations or guidance. The final
regulations or guidance shall include any required data
elements or method of collection.
``(2) Timing.--The Secretary shall take reasonable and
appropriate steps to ensure that institutions have adequate
time, before public disclosure or reporting to the Secretary,
for the establishment of systems for the collection of the
required data, for data collection and analysis, and for the
preparation of the data report in the required format.''.
Subtitle E--Ownership of Nonprofit Institutions
SEC. 251. OWNERSHIP OF NONPROFIT INSTITUTIONS.
(a) Default Management Plan.--Section 487(a)(14)(B) (20 U.S.C.
1094(a)(14)(B)) is amended by adding at the end the following: ``This
subparagraph shall not apply to an institution that meets the
definition of an institution of higher education under section 101.''.
(b) Eligibility and Certification Procedures.--Section 498 (20
U.S.C. 1099c) is amended--
(1) in subsection (e), by adding at the end the following:
``(7) This subsection shall not apply to an institution that meets
the definition of an institution of higher education under section
101.'';
(2) in subsection (h), by adding at the end the following:
``(4) This subsection shall not apply to an institution that meets
the definition of an institution of higher education under section
101.''; and
(3) in subsection (i), by adding at the end the following:
``(5) This subsection shall not apply to an institution that meets
the definition of an institution of higher education under section
101.''.
Subtitle F--Disbursement of Student Loans
SEC. 261. RENEWAL OF EXPIRED PROVISIONS.
(a) Amendment.--Section 422(d) of the Higher Education Amendments
of 1998 (20 U.S.C. 1078-7 note) is amended by striking ``period
beginning'' and all that follows through the period, and inserting the
following: ``periods--
``(1) beginning on October 1, 1998, and ending on September
30, 2002; and
``(2) beginning on the date of enactment of the Higher
Education Simplification and Deregulation Act of 2005.''.
(b) Clarification.--Sections 428G(a)(3) and 428G(b)(1) (as amended
by section 422 of the Higher Education Amendments of 1998) shall be
effective beginning on the date of enactment of the Higher Education
Simplification and Deregulation Act of 2005.
TITLE III--ELIMINATION OF CERTAIN REPORTING REQUIREMENTS
SEC. 301. DISCLOSURES OF FOREIGN GIFTS.
Section 117 (20 U.S.C. 1011f) is amended--
(1) in subsection (a), by striking ``file a disclosure
report with the Secretary'' and inserting ``make available to
the public a disclosure report'';
(2) in the matter preceding paragraph (1) of subsection
(b), by striking ``to the Secretary''; and
(3) in subsection (d)--
(A) in paragraph (1), by striking ``filed with the
Secretary'' and inserting ``made available to the
public''; and
(B) in paragraph (2), by striking ``filed with the
Secretary'' and inserting ``made available to the
public''.
<all>