II
110th CONGRESS
1st Session
S. 939
IN THE SENATE OF THE UNITED STATES
March 20, 2007
Mr. Reed (for himself, Ms. Collins, Mr. Kennedy, Mrs. Murray, and Mr. Sanders) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
A BILL
To amend the Higher Education Act of 1965 to simplify and improve the process of applying for student assistance, and for other purposes.
Short title; table of contents
Short title
This Act may be cited as the
Financial Aid Form Simplification and
Access Act
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Simplified needs test and automatic zero improvements.
Sec. 3. Improving paper and electronic forms.
Sec. 4. Support for working students.
Sec. 5. Simplification for students with special circumstances.
Sec. 6. Definitions.
Sec. 7. Advisory Committee on Student Financial Assistance.
Simplified needs test and automatic zero improvements
Simplified Needs Test
Section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss) is amended—
in subsection (b)—
in paragraph (1)(A)(i)—
in subclause (II), by striking
or
after the semicolon;
by redesignating subclause (III) as subclause (IV);
by inserting after subclause (II) the following:
1 of whom is a dislocated worker; or
; and
in subclause (IV) (as redesignated by
clause (ii)), by striking 12-month
and inserting
24-month
; and
in subparagraph (B)(i)—
in subclause (II), by striking
or
after the semicolon;
by redesignating subclause (III) as subclause (IV);
by inserting after subclause (II) the following:
1 of whom is a dislocated worker; or
; and
in subclause (IV) (as redesignated by
clause (ii)), by striking 12-month
and inserting
24-month
;
in subsection (c)—
in paragraph (1)—
in subparagraph (A)—
in clause (ii), by striking
or
after the semicolon;
by redesignating clause (iii) as clause (iv);
by inserting after clause (ii) the following:
1 of whom is a dislocated worker; or
; and
in clause (iv) (as redesignated by
subclause (II)), by striking 12-month
and inserting
24-month
; and
in subparagraph (B), by striking
20,000
and inserting $30,000
; and
in paragraph (2)—
in subparagraph (A)—
in clause (ii), by striking
or
after the semicolon;
by redesignating clause (iii) as clause (iv);
by inserting after clause (ii) the following:
is a dislocated worker; or
; and
in clause (iv) (as redesignated by
subclause (II)), by striking 12-month
and inserting
24-month
; and
in subparagraph (B), by striking
$20,000
and inserting $30,000
; and
in the flush matter following paragraph
(2)(B), by adding at the end the following: The Secretary shall annually
adjust the income level necessary to qualify an applicant for the zero expected
family contribution. The income level shall be adjusted according to increases
in the Consumer Price Index, as defined in section 478(f).
; and
in subsection (d)—
by redesignating paragraphs (1) through (6) as subparagraphs (A) through (F), respectively;
by striking (d)
Definition
and all that follows through
the term
and inserting the following:
Definitions
In this section:
Dislocated worker
The term dislocated worker has the meaning given the term in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801).
Means-tested Federal Benefit Program
The term
.
Discretion of Student Financial Aid Administrators
Section
479A(a) of the Higher Education Act of
1965 (20 U.S.C. 1087tt(a)) is amended in the third sentence by
inserting a family member who is a dislocated worker (as defined in
section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)),
after recent unemployment of a family member,
.
Reporting Requirements
Eligibility guidelines
The Secretary of Education shall regularly evaluate the impact of the eligibility guidelines in subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A) of section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)).
Means-tested federal benefit program
The Secretary shall evaluate every 3 years the impact of including whether a student or parent received benefits under a means-tested Federal benefit program (as defined in section 479(d) of the Higher Education Act of 1965 (20 U.S.C. 1087ss(d)) as a factor in determining eligibility under subsections (b) and (c) of section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss(b) and (c)).
Improving paper and electronic forms
Simplified Needs Test
Section 479(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ss(a)) is amended by adding at the end the following:
Simplified forms
The Secretary shall make special efforts to notify families meeting the requirements of subsection (c) that such families may use the EZ FAFSA described in section 483(a)(2)(B) and notify families meeting the requirements of subsection (b) that such families may use the simplified electronic application form described in section 483(a)(3)(B).
.
Common Financial Aid Form Development and Processing
Section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090) is amended—
in subsection (a)—
by striking paragraphs (1), (2), and (5);
by redesignating paragraphs (3), (4), (6), and (7), as paragraphs (8), (9), (10), and (11), respectively;
by inserting before paragraph (8), as redesignated by subparagraph (B), the following:
In general
Common financial reporting forms
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
or FAFSA
.
Early analysis
The Secretary shall permit an applicant to complete a form described in this subsection prior to enrollment in order to obtain an estimate from the Secretary of the applicant’s expected family contribution. Such applicant shall be permitted to update the information contained on a form submitted pursuant to the preceding sentence, using the process described in paragraph (4), for purposes of applying for assistance under this title for the first academic year for which the applicant applies for financial assistance under this title.
Paper format
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 section 479(c).
EZ FAFSA
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 of section 479(c).
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).
State data
The Secretary shall include on the EZ FAFSA space for information that is required of an applicant to be eligible for State financial assistance, as provided under paragraph (5), 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.
Free availability and processing
The provisions of paragraph (6) 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 (8).
Testing
The Secretary shall conduct appropriate field testing on the EZ FAFSA.
Phasing out the paper form for students who do not meet the requirements of the automatic zero expected family contribution
In general
The Secretary shall make all efforts to encourage all applicants to utilize the electronic forms described in paragraph (3).
Phaseout of full paper fafsa
Not later than 5 years after the date of enactment of the Financial Aid Form Simplification and Access Act, to the extent practicable, the Secretary shall phaseout the printing of the full paper Free Application for Federal Student Aid described in subparagraph (A) and used by applicants who do not meet the requirements of the EZ FAFSA described in subparagraph (B).
Availability of full paper fafsa
In general
Prior to and after the phaseout described in clause (ii), the Secretary shall maintain an online printable version of the paper forms described in subparagraphs (A) and (B).
Accessibility
The online printable version described in subclause (I) 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 (3).
Submission of forms
The Secretary shall enable, to the extent practicable, students to submit a form described in this clause that is downloaded and printed in order to meet the filing requirements of this section and to receive aid from programs established under this title.
Use of savings to address the digital divide
In general
The Secretary shall utilize savings accrued by phasing out the full paper Free Application for Federal Student Aid and moving more applicants to the electronic forms, to improve access to the electronic forms for applicants meeting the requirements of section 479(c).
Report
The Secretary shall report annually 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 steps taken to eliminate the digital divide and on the phaseout of the full paper Free Application for Federal Student Aid described in subparagraph (A). The report shall specifically address the impact of the digital divide on independent students, adults, and dependent students, including students completing applications described in this paragraph and paragraphs (3) and (4).
Electronic format
In general
Establishment
The Secretary shall produce, distribute,
and process common financial reporting forms in electronic format (such as
through a website called FAFSA on the Web
) to meet the
requirements of paragraph (1). The Secretary shall include an electronic
version of the EZ FAFSA form for applicants who meet the requirements of
section 479(c) and develop common electronic forms for applicants who meet the
requirements of section 479(b) and common electronic forms for applicants who
do not meet the requirements of section 479(b).
State data
The Secretary shall include on the common electronic forms described in clause (i) space for information that is required of an applicant to be eligible for State financial assistance, as provided under paragraph (5). The Secretary may not require an applicant to complete data required by any State other than the applicant’s State of residence.
Streamlined format
The Secretary shall use, to the fullest extent practicable, all available technology to ensure that a student answers only the minimum number of questions necessary.
Simplified application
In general
The Secretary shall develop and use a simplified electronic application form to be used by applicants meeting the requirements under section 479(b).
Reduced data requirements
The simplified electronic application form 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(b).
State data
The Secretary shall include on the simplified electronic application form space for information that is required of an applicant to be eligible for State financial assistance, as provided under paragraph (5), except the Secretary shall not include a State’s data if that State does not permit its applicants for State assistance to use the simplified electronic application form.
Free availability and processing
The provisions of paragraph (6) shall apply to the simplified electronic application form, and the data collected by means of the simplified electronic application form shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (8).
Testing
The Secretary shall conduct appropriate field testing on the form developed under this subparagraph.
Rule of construction
Nothing in this subsection shall be construed to prohibit the use of the form 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 entities as the Secretary may designate.
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 form. Data collected by such electronic version of the form 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 form 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.
Signature
Notwithstanding any other provision of this Act, the Secretary may permit an electronic form to be submitted without a signature, if a signature is subsequently submitted by the applicant.
Personal identification numbers authorized
The Secretary is authorized to assign to applicants personal identification numbers—
to enable the applicants to use such numbers in lieu of a signature for purposes of completing a form under this paragraph; and
for any purpose determined by the Secretary to enable the Secretary to carry out this title.
Personal identification number improvement assessment and report
Assessment
The Secretary shall conduct an assessment
of the feasibility of minimizing, and of eliminating, the time required for
applicants to obtain a Personal Identification Number when applying for aid
under this title through an electronic format (such as through a website called
FAFSA on the Web
) including an examination of the feasibility of
implementing a real-time data match between the Social Security Administration
and the Department.
Report
The Secretary shall report the findings of the assessment described in clause (i) to Congress not later than 6 months after the date of enactment of the Financial Aid Form Simplification and Access Act, including the next steps that may be taken to minimize the time required for applicants to obtain a Personal Identification Number when applying for aid under this title through an electronic format.
Reapplication
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 year in which such applicant first applied for financial assistance under this title.
Updated
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.
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.
State requirements
In general
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 States to assist in the awarding of State financial assistance in accordance with the terms of this subsection. 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.
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.
Federal register notice
The Secretary shall publish on an annual basis a notice in the Federal Register requiring each State agency to inform the Secretary—
if the agency is unable to permit applicants to utilize the forms described in paragraphs (2)(B) and (3)(B); and
of the State-specific data that the agency requires for delivery of State need-based financial aid.
State notification to the secretary
In general
Each State shall notify the Secretary—
whether the State permits an applicant to file a form described in paragraph (2)(B) or (3)(B) for purposes of determining eligibility for State need-based grant aid; and
of the State-specific data that the State requires for delivery of State need-based financial aid.
No permission
In the event that a State does not permit an applicant to file a form described in paragraph (2)(B) or (3)(B) for purposes of determining eligibility for State need-based grant aid—
the State shall notify the Secretary if it is not permitted to do so because of State law or because of agency policy; and
the notification under subclause (I) shall include an estimate of the program cost to permit applicants to complete the forms described in paragraphs (2)(B) and (3)(B).
Lack of notification by the state
If a State does not notify the Secretary pursuant to clause (i), the Secretary shall—
permit residents of that State to complete the forms described in paragraphs (2)(B) and (3)(B); and
not require any resident of that State to complete any data previously required by that State.
Restriction
The Secretary shall not require applicants to complete any nonfinancial data or financial data that are not required by the applicant’s State agency, except as may be required for applicants who use the paper forms described in subparagraphs (A) and (B) of paragraph (2).
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 or other document, which the Secretary determines was created to replace a form prescribed under this subsection and therefore violates the integrity of a simplified and free financial aid application process, 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, other than a State agency, an eligible institution, or a program under this title that the Secretary permits to so request, obtain, or utilize an applicant's Personal Identification Number in order to streamline the application.
Application processing cycle
The Secretary shall, prior to January 1 of a student’s planned year of enrollment to the extent practicable—
enable the student to submit a form described under this subsection in order to meet the filing requirements of this section and receive aid from programs under this title; and
initiate the processing of a form under this subsection submitted by the student.
; and
by adding at the end the following:
Early application and award demonstration program
In general
Not later than 2 years after the date of enactment of the Financial Aid Form Simplification and Access Act, the Secretary shall implement an early application demonstration program enabling dependent students to—
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 at an institution of higher education (as early as the Secretary determines practicable after January 1st of such junior year or academic year, respectively);
receive an estimate of such students' final financial aid awards in such junior year or academic year, respectively;
update, in the year prior to such students' planned year of enrollment (before January 1st of the planned year of enrollment to the extent practicable), the information contained in an application submitted under clause (i), using the process described in paragraph (4) to determine such students' final financial aid awards; and
receive final financial aid awards based on updated information described in clause (iii).
Purpose
The purpose of the demonstration program under this paragraph 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 at an institution of higher education. Additional objectives associated with implementation of the demonstration program are the following:
Measure the feasibility of enabling dependent students to apply for Federal, State, and institutional financial aid 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 at an institution of higher education, using information from the year prior to the year prior to enrollment, by completing any of the application forms under this subsection.
Determine the feasibility, benefits, and adverse effects of utilizing information from the Internal Revenue Service in order to simplify the Federal student aid application process.
Identify whether receiving estimates of final financial aid awards not later than a student’s junior year, or the academic year that is 2 years prior to such students’ intended year of enrollment at an institution of higher education, positively impacts the college aspirations and plans of such student.
Measure the impact of using income information from the year prior to the year prior to enrollment on—
eligibility for financial aid under this title and for other institutional aid; and
the cost of financial aid programs under this title.
Effectively evaluate the benefits and adverse effects of the demonstration program on program costs, integrity, distribution, and delivery of aid.
Participants
The Secretary shall select, in consultation with States and institutions of higher education, States and institutions of higher education within the States interested in participating in the demonstration program under this paragraph. The States and institutions of higher education shall participate in programs under this title and be willing to make estimates of 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 that are located in the participating States and dependent students who reside in the participating States.
Application process
The Secretary shall ensure that the following provisions are included in the demonstration program:
Participating States and institutions of higher education shall—
encourage participating students to apply for estimates of final financial aid awards as provided under this title 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 at an institution of higher education, using information from the year prior to the year prior to enrollment;
provide estimates of final financial aid awards to participating students based on the students' application information from the year prior to the year of enrollment; and
make final financial aid awards to participating students based on the updated information contained on a form submitted using the process described in paragraph (4).
Financial aid administrators at participating institutions of higher education shall be allowed to use such administrators’ discretion in awarding financial aid to participating students, as outlined under section 479A.
Feasibility study
The Secretary shall include in the demonstration program a study of the feasibility of utilizing data from the Internal Revenue Service in order to—
pre-populate electronic application forms
for financial aid under this title (such as through a website called
FAFSA on the Web
) with applicant information from the Internal
Revenue Service;
verify data provided by students participating in the demonstration program, including the feasibility of a data match; and
award and deliver financial aid under this title.
Evaluation
The Secretary shall conduct a rigorous evaluation of the demonstration program in order to measure the program’s benefits and adverse effects as the benefits and affects relate to the purpose and objectives described in subparagraph (B).
Outreach
The Secretary shall make appropriate efforts in order to notify States of the demonstration program. Upon determination of which States will be participating in the demonstration program, the Secretary shall continue to make efforts to notify institutions of higher education and dependent students within such participating States of the opportunity to participate in the demonstration program and of the participation requirements.
Consultation
The Secretary shall consult with the Advisory Committee on Student Financial Assistance, established under section 491, on the design and implementation of the demonstration program and on the evaluation described in paragraph (F).
;
by striking subsection (b) and inserting the following:
Early Awareness of Aid Eligibility
In general
The Secretary shall make every effort to provide students with early information about potential financial aid eligibility.
Availability of means to determine eligibility
In general
The Secretary shall provide, in cooperation with States, institutions of higher education, agencies, and organizations involved in student financial assistance, through a widely disseminated printed form and through the Internet or other electronic means, a system for individuals to determine easily, by entering relevant data, approximately the amount of grant, work-study, and loan assistance for which an individual would be eligible under this title upon completion and verification of a form under subsection (a).
Determination of whether to use simplified application
The system established under this paragraph shall also permit an individual to determine whether or not the individual may apply for aid using an EZ FAFSA described in subsection (a)(2)(B) or a simplified electronic application form described in subsection (a)(3)(B).
Availability of means to communicate eligibility
Lower-income students
The Secretary shall—
make special efforts to notify students who qualify for a free or reduced price lunch under the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), benefits under the food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), or benefits under such programs as the Secretary shall determine, of such students’ potential eligibility for a maximum Federal Pell Grant under subpart 1 of part A; and
disseminate informational materials regarding the linkage between eligibility for means-tested Federal benefit programs and eligibility for a Federal Pell Grant, as determined necessary by the Secretary.
Middle school students
The Secretary shall, in cooperation with States, middle schools, programs under this title that serve middle school students, and other cooperating independent outreach programs, make special efforts to notify middle school students of the availability of financial assistance under this title and of the approximate amounts of grant, work-study, and loan assistance an individual would be eligible for under this title.
Secondary school students
The Secretary, in cooperation with States, secondary schools, programs under this title that serve secondary school students, and cooperating independent outreach programs, shall make special efforts to notify students in their junior year of secondary school, or in the academic year that is 2 years prior to such students’ intended year of enrollment at an institution of higher education, of the approximate amounts of grant, work-study, and loan assistance an individual would be eligible for under this title upon completion and verification of an application form under subsection (a).
;
in subsection (c)—
by striking Labor and Human
Resources
and inserting Health, Education, Labor, and
Pensions
; and
by striking the Workforce
and inserting Labor
; and
by striking subsections (d) and (e), and inserting the following:
Assistance in Preparation of Financial Aid Application
Preparation authorized
Nothing in this Act shall be construed to limit an applicant from using a preparer for consultative or preparation services for the completion of the common financial reporting forms described in subsection (a).
Preparer identification
Any common financial reporting form required to be made under this title shall include the name, signature, address or employer’s address, social security number or employer identification number, and organizational affiliation of the preparer of such common financial reporting form.
Special rule
Nothing in this Act shall be construed to limit preparers of common financial reporting forms required to be made under this title from collecting source information, including Internal Revenue Service tax forms, in providing consultative and preparation services in completing the forms.
Additional requirements
A preparer that provides consultative or preparation services pursuant to this subsection shall—
clearly inform individuals upon initial contact (including advertising in clear and conspicuous language on the website of the preparer, including by providing a link directly to the website described in subsection (a)(3), if the preparer provides such services through a website) that the common financial reporting forms that are required to determine eligibility for financial assistance under parts A through E (other than subpart 4 of part A) may be completed for free via paper or electronic forms provided by the Secretary;
refrain from producing or disseminating any form other than the forms produced by the Secretary under subsection (a); and
not charge any fee to any individual seeking such services who meets the requirements under subsection (b) or (c) of section 479.
.
Toll-Free Application and Information
Section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss), as amended by subsection (b)(4), is further amended by adding at the end the following:
Toll-Free Application and Information
The Secretary shall contract for, or establish, and publicize a toll-free telephone service to provide an application mechanism and timely and accurate information to the general public. The information provided shall include specific instructions on completing the application form for assistance under this title. Such service shall also include a service accessible by telecommunications devices for the deaf (TDD’s) and shall, in addition to the services provided for in the previous sentence, refer such students to the national clearinghouse on postsecondary education or another appropriate provider of technical assistance and information on postsecondary educational services, that is supported under section 663 of the Individuals with Disabilities Education Act (20 U.S.C. 1463). Not later than 2 years after the date of enactment of the Financial Aid Form Simplification and Access Act, the Secretary shall test and implement, to the extent practicable, a toll-free telephone-based application system to permit applicants who are eligible to utilize the EZ FAFSA described in section 483(a) over such system.
.
Master Calendar
Section 482(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1089(a)(1)(B)) is amended to read as follows:
by March 1: proposed modifications and updates pursuant to sections 478, 479(c), and 483(a)(5) published in the Federal Register;
.
Simplifying the Verification Process
Section 484 of the Higher Education Act of 1965 (20 U.S.C. 1091) is amended by adding at the end the following:
Verification of Student Eligibility
Regulatory review
The Secretary shall review all regulations of the Department related to verifying the information provided on a student’s financial aid application in order to simplify the verification process for students and institutions.
Report
Not later than 2 years after the date of enactment of the Financial Aid Form Simplification and Access Act, the Secretary shall prepare and submit a final 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 steps taken, to the extent practicable, to simplify the verification process. The report shall specifically address steps taken to—
reduce the burden of verification on students who are selected for verification at multiple institutions;
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 under subsection (b) or (c) of section 479 are subject to verification;
reduce the burden and costs associated with verification for institutions that are eligible to participate in Federal student aid programs under this title; and
increase the use of technology in the verification process.
.
Support for working students
Dependent Students
Section 475(g)(2)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as follows:
$9,000;
.
Independent Students Without Dependents Other Than a Spouse
Section 476(b)(1)(A)(iv) of the Higher Education Act of 1965 (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as follows:
an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 478)—
$10,000 for single or separated students;
$10,000 for married students where both are enrolled pursuant to subsection (a)(2); and
$13,000 for married students where 1 is enrolled pursuant to subsection (a)(2);
.
Independent Students With Dependents Other Than a Spouse
Section 477(b)(4) of the Higher Education Act of 1965 (20 U.S.C. 1087qq(b)(4)) is amended to read as follows:
Income protection allowance
The income protection allowance is determined by the following table (or a successor table prescribed by the Secretary under section 478):
| Family Size | Number in College | ||||
| 1 | 2 | 3 | 4 | 5 | |
| 2 | $17,580 | $15,230 | |||
| 3 | 20,940 | 17,610 | $16,260 | ||
| 4 | 24,950 | 22,600 | 20,270 | $17,930 | |
| 5 | 28,740 | 26,390 | 24,060 | 21,720 | $19,390 |
| 6 | 32,950 | 30,610 | 28,280 | 25,940 | 23,610 |
| NOTE: For each
additional family member, add $3,280. For each additional college student, subtract $2,330.”. |
|||||
.
Simplification for students with special circumstances
Independent Student
Section 480(d) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(d)) is amended to read as follows:
Independent Student
Definition
The term independent, when used with respect to a student, means any individual who—
is 24 years of age or older by December 31 of the award year;
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;
is an emancipated minor or is in legal guardianship as determined by a court of competent jurisdiction in the individual’s State of legal residence;
is a veteran of the Armed Forces of the United States (as defined in subsection (c)(1)) or is currently serving on active duty in the Armed Forces;
is a graduate or professional student;
is a married individual;
has legal dependents other than a spouse; or
is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances.
Simplifying the dependency override process
Nothing in this section shall be construed to prohibit a financial aid administrator from making a determination of independence, as described in paragraph (1)(H), based upon a determination of independence previously made by another financial aid administrator in the same application year.
.
Tailoring Electronic Applications for Students with Special Circumstances
Section 483(a) of the Higher Education Act of 1965 (20 U.S.C. 1090(a)), as amended by section 3(b)(1)(D), is further amended by adding at the end the following:
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—
allowing such student to—
indicate the student’s request for a documented determination of independence on an electronic form developed pursuant to this subsection; and
submit such form for preliminary processing that only contains those data elements required of independent students, as defined in section 480(d);
collecting and processing on a preliminary basis data provided by such a student using the electronic forms developed pursuant to this subsection; and
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.
.
Definitions
Total income
Section 480(a)(2) of the Higher Education Act of (20 U.S.C. 1087vv(a)(2)) is amended—
by striking and no portion
and inserting no portion
; and
by inserting and no distribution
from any qualified education benefit described in subsection (f)(3) that is not
subject to Federal income tax,
after 1986,
.
Assets
Section 480(f) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)) is amended—
in paragraph (3), by striking shall
not be considered an asset of a student for purposes of section 475
and
inserting shall be considered an asset of the parent for purposes of
section 475
;
by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and
by inserting after paragraph (3) the following:
A qualified education benefit shall be considered an asset of the student for purposes of section 476 and 477.
.
Other financial assistance
Section 480(j)(2) of the Higher Education
Act of 1965 (20 U.S.C. 1087vv(j)(2)) is amended by inserting , 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,
after 1986
.
Advisory Committee on Student Financial Assistance
Section 491 of the Higher Education Act of 1965 (20 U.S.C. 1098) is further amended—
in subsection (a)(2)—
in subparagraph (B), by striking
and
after the semicolon;
in subparagraph (C), by striking the period at the end and inserting a semicolon; and
by adding at the end the following:
to provide knowledge and understanding of early intervention programs and make recommendations that will result in early awareness by low- and moderate-income students and families of their eligibility for assistance under this title, and, to the extent practicable, their eligibility for other forms of State and institutional need-based student assistance; and
to make recommendations that will expand and improve partnerships among the Federal Government, States, institutions, and private entities to increase the awareness and total amount of need-based student assistance available to low- and moderate-income students.
;
in subsection (d)—
in paragraph (6), by striking , but
nothing in this section shall authorize the committee to perform such studies,
surveys, or analyses
;
in paragraph (8), by striking
and
after the semicolon;
by redesignating paragraph (9) as paragraph (10); and
by inserting after paragraph (8) the following:
monitor the adequacy of total need-based aid available to low- and moderate-income students from all sources, assess the implications for access and persistence, and report those implications annually to Congress and the Secretary; and
;
in subsection (j)—
in paragraph (4), by striking
and
after the semicolon;
in paragraph (5), by striking the period at
the end and inserting ; and
; and
by adding at the end the following:
monitor and assess implementation of improvements called for under this title, make recommendations to the Secretary that ensure the timely design, testing, and implementation of the improvements, and report annually to Congress and the Secretary on progress made toward simplifying overall delivery, reducing data elements and questions, incorporating the latest technology, aligning Federal, State, and institutional eligibility, enhancing partnerships, and improving early awareness of total student aid eligibility for low- and moderate-income students and families.
; and
in subsection (k), by striking
2004
and inserting 2011
.