[House Report 114-678]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-678
======================================================================
SIMPLIFYING THE APPLICATION FOR STUDENT AID ACT
_______
July 11, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Kline, from the Committee on Education and the Workforce, submitted
the following
R E P O R T
[To accompany H.R. 5528]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 5528) to amend the Higher Education Act
of 1965 to simplify the FAFSA, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Simplifying the Application for
Student Aid Act''.
SEC. 2. USING DATA FROM SECOND PRECEDING YEAR.
Section 480(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C.
1087vv(a)(1)(B)) is amended by striking ``may'' in both places it
appears and inserting ``shall''.
SEC. 3. CALCULATION OF ANNUAL ADJUSTMENT PERCENTAGE FOR FEDERAL PELL
GRANTS.
Section 401(b)(7)(C)(iv)(I) of the Higher Education Act of 1965 (20
U.S.C. 1070a(b)(7)(C)(iv)(I)) is amended by striking ``calendar year''
and inserting ``fiscal year''.
SEC. 4. FAFSA SIMPLIFICATION.
(a) FAFSA Simplification.--Section 483 of the Higher Education Act of
1965 (20 U.S.C. 1090) is amended--
(1) in subsection (a)(3), by adding at the end the following:
``(I) Format.--Not later than 180 days after the date
of the enactment of the Simplifying the Application for
Student Aid Act, the Secretary shall make the
electronic version of the forms under this paragraph
available through a technology tool that can be used on
mobile devices. Such technology tool shall, at minimum,
enable applicants to--
``(i) save data; and
``(ii) submit their FAFSA to the Secretary
through such tool.
``(J) Consumer testing.--In developing and
maintaining the electronic version of the forms under
this paragraph and the technology tool for mobile
devices under subparagraph (I), the Secretary shall
conduct consumer testing with appropriate persons to
ensure the forms and technology tool are designed to be
easily usable and understandable by students and
families. Such consumer testing shall include--
``(i) current and prospective college
students, family members of such students, and
other individuals with expertise in student
financial assistance application processes;
``(ii) dependent students and independent
students meeting the requirements under
subsection (b) or (c) of section 479; and
``(iii) dependent students and independent
students who do not meet the requirements under
subsection (b) or (c) of section 479.''; and
(2) by amending subsection (f) to read as follows:
``(f) Use of Internal Revenue Service Data Retrieval Tool to Populate
FAFSA.--
``(1) Simplification efforts.--The Secretary shall--
``(A) make every effort to use data available from
the Internal Revenue Service to reduce the amount of
original data entry by applicants and strengthen the
reliability of data used to calculate expected family
contributions, including through the use of technology
to--
``(i) automatically populate the electronic
version of the forms under this paragraph with
data available from the Internal Revenue
Service; and
``(ii) direct an applicant to appropriate
questions on such forms based on the
applicant's answers to previous questions; and
``(B) allow single taxpayers, married taxpayers
filing jointly, and married taxpayers filing separately
to utilize the data retrieval tool to its full
capacity.
``(2) Use of tax return in application process.--The
Secretary shall continue to examine whether data provided by
the Internal Revenue Service can be used to generate an
expected family contribution without additional action on the
part of the student and taxpayer.
``(3) Reports on fafsa simplification efforts.--Not less than
once every other year, the Secretary shall report to the
authorizing committees on the progress of the simplification
efforts under this subsection.
``(4) Reports on fafsa access.--Not less than once every 10
years, the Secretary shall report to the authorizing committees
on the needs of limited English proficient students using the
FAFSA.''.
(b) Funding.--
(1) Use of existing funds.--Of the amount authorized to be
appropriated to the Department of Education to maintain the
Free Application for Federal Student Aid, $3,000,000 shall be
available to carry out this Act and the amendments made by this
Act.
(2) No additional funds authorized.--No funds are authorized
by this Act to be appropriated to carry out this Act or the
amendments made by this Act.
Purpose
H.R. 5528, the Simplifying the Application for Student Aid
Act, streamlines and improves the student aid process by
providing for earlier award notification and making the Free
Application for Federal Student Aid (FAFSA) simpler and more
accessible.
Committee Action
As the Committee on Education and the Workforce (Committee)
continues the Higher Education Act reauthorization process,
increasing transparency and usefulness of higher education
data; simplifying and improving the federal student aid
programs; and promoting innovation, access, and completion
remain top priorities.
112TH CONGRESS
Hearings--First session
On March 1, 2011, the Committee held a hearing in
Washington, D.C., on ``Education Regulations: Weighing the
Burden on Schools and Students.'' The hearing was the first in
a series examining the burden of federal, state, and local
regulations on the nation's education system. The purpose of
the hearing was to uncover the damaging effects of federal
regulations on schools and institutions. These rules
increasingly stifle growth and innovation, raise operating
costs, and limit student access to affordable colleges and
universities throughout the nation. Testifying before the
Committee were Dr. Edgar Hatrick, Superintendent, Loudon County
Public Schools, Ashburn, Virginia; Ms. Kati Haycock, President,
The Education Trust, Washington, D.C.; Mr. Gene Wilhoit,
Executive Director, Council of Chief State School Officers,
Washington, D.C.; and Mr. Christopher B. Nelson, President, St.
John's College, Annapolis, Maryland.
On March 11, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Education
Regulations: Federal Overreach into Academic Affairs.'' The
purpose of the hearing was to discuss the most egregious and
intrusive pieces of the program integrity regulations issued by
the U.S. Department of Education, specifically, the state
authorization regulation and the credit hour regulation, and to
uncover the unintended consequences of the regulations to
states and institutions of higher education. Testifying before
the Subcommittee were Mr. John Ebersole, President, Excelsior
College, Albany, New York; Dr. G. Blair Dowden, President,
Huntington University, Huntington, Indiana; The Honorable
Kathleen Tighe, Inspector General, U.S. Department of
Education, Washington, D.C.; and Mr. Ralph Wolff, President,
Western Association of Schools and Colleges, Alameda,
California.
On March 17, 2011, the Committee on held a hearing in
Washington, D.C., on ``Education Regulations: Roadblocks to
Student Choice in Higher Education.'' The purpose of the
hearing was to explore the harmful consequences of the gainful
employment regulation issued by the U.S. Department of
Education. Testifying before the Committee were Ms. Catherine
Barreto, Graduate, Monroe College, and Senior Sales Associate,
Doubletree Hotels, Brooklyn, New York; Mr. Travis Jennings,
Electrical Supervisor of the Manufacturing Launch Systems
Group, Orbital Sciences Corporation, Chandler, Arizona; Dr.
Arnold Mitchem, President, Council for Opportunity in
Education, Washington, D.C.; and Ms. Jeanne Herrmann, Chief
Operating Officer, Globe University/Minnesota School of
Business, Woodbury, Minnesota.
On March 21, 2011, the Committee held a hearing in Wilkes-
Barre, Pennsylvania, on ``Reviving our Economy: The Role of
Higher Education in Job Growth and Development.'' The purpose
of the hearing was to highlight work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Mr. James Perry,
President, Hazelton City Council, Hazelton, Pennsylvania; Mr.
Jeffrey Alesson, Vice President of Strategic Planning and
Quality Assurance, Diamond Manufacturing, Exeter, Pennsylvania;
Dr. Reynold Verret, Provost, Wilkes University, Wilkes-Barre,
Pennsylvania; Mr. Raymond Angeli, President, Lackawanna
College, Scranton, Pennsylvania; Ms. Joan Seaman, Executive
Director, Empire Beauty School, Moosic, Pennsylvania; and Mr.
Thomas P. Leary, President, Luzerne County Community College,
Nanticoke, Pennsylvania.
On March 22, 2011, the Committee held a hearing in Utica,
New York, on ``Reviving our Economy: The Role of Higher
Education in Job Growth and Development.'' The purpose of the
hearing was to highlight work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Mr. Anthony J. Picente,
Jr., County Executive, Oneida County, Utica, New York; Mr. Dave
Mathis, Director, Oneida County Workforce Development, Utica,
New York; Dr. John Bay, Vice President and Chief Scientist,
Assured Information Security, Inc., Rome, New York; Dr. Bjong
Wolf Yeigh, President, State University of New York Institute
of Technology, Utica, New York; Dr. Ann Marie Murray,
President, Herkimer County Community College, Herkimer, New
York; Dr. Judith Kirkpatrick, Provost, Utica College, Utica,
New York; and Mr. Phil Williams, President, Utica School of
Commerce, The Business College, Utica, New York.
On April 21, 2011, the Committee held a hearing in
Columbia, Tennessee, on ``Reviving our Economy: The Role of
Higher Education in Job Growth and Development.'' The purpose
of the hearing was to highlight the work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Dr. Janet Smith,
President, Columbia State Community College, Columbia,
Tennessee; Dr. Ted Brown, President, Martin-Methodist College,
Pulaski, Tennessee; Mr. Jim Coakley, President, Nashville Auto-
Diesel College, Nashville, Tennessee; The Honorable Dean
Dickey, Mayor, City of Columbia, Columbia, Tennessee; Ms. Susan
Marlow, President and Chief Executive Officer, Smart Data
Strategies, Franklin, Tennessee; Ms. Jan McKeel, Executive
Director, South Central Tennessee Workforce Board, Columbia,
Tennessee; and Ms. Margaret Prater, Executive Director,
Northwest Tennessee Workforce Board, Dyersburg, Tennessee.
On July 8, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training, together with the House Committee on Oversight and
Government Reform Subcommittee on Regulatory Affairs, Stimulus
Oversight, and Government Spending, held a hearing in
Washington, D.C., on ``The Gainful Employment Regulation:
Limiting Job Growth and Student Choice.'' The purpose of the
hearing was to explore the harmful consequences of the gainful
employment regulation issued by the U.S. Department of
Education. Testifying before the subcommittees were Dr. Dario
A. Cortes, President, Berkeley College, New York City, New
York; Dr. Anthony P. Carnevale, Director, Georgetown University
Center on Education and the Workforce, Washington, D.C.; Ms.
Karla Carpenter, Graduate, Herzing University and Program
Manager, Quest Software, Madison, Wisconsin; and Mr. Harry C.
Alford, President and Chief Executive Officer, National Black
Chamber of Commerce, Washington, D.C.
On August 16, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Greenville, South Carolina, on
``Reviving Our Economy: The Role of Higher Education in Job
Growth and Development.'' The purpose of the hearing was to
highlight the work by local colleges and universities to
respond to local and state economic needs. Testifying before
the Subcommittee were The Honorable Knox White, Mayor, City of
Greenville, Greenville, South Carolina; Mr. Werner Eikenbusch,
Section Manager, Associate Development and Training, BMW
Manufacturing Co., Spartanburg, South Carolina; Ms. Laura
Harmon, Project Director, Greenville Works, Greenville, South
Carolina; Dr. Brenda Thames, Vice President of Academic
Development, Greenville Health System, Greenville, South
Carolina; Mr. James F. Barker, President, Clemson University,
Clemson, South Carolina; Dr. Thomas F. Moore, Chancellor,
University of South Carolina Upstate, Spartanburg, South
Carolina; Dr. Keith Miller, President, Greenville Technical
College, Greenville, South Carolina; and Ms. Amy Hickman,
Campus President, ECPI College of Technology, Greenville, South
Carolina.
On October 25, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Government-
Run Student Loans: Ensuring the Direct Loan Program is
Accountable to Students and Taxpayers.'' The purpose of the
hearing was to examine the switch to and implementation of the
Direct Loan program. Testifying before the Subcommittee were
Mr. James W. Runcie, Chief Operating Officer, Office of Federal
Student Aid, U.S. Department of Education, Washington, D.C.;
Mr. Ron H. Day, Director of Financial Aid, Kennesaw State
University, Kennesaw, Georgia; Ms. Nancy Hoover, Director of
Financial Aid, Denison University, Granville, Ohio; and Mr.
Mark. A. Bandre, Vice President for Enrollment Management and
Student Affairs, Baker University, Baldwin City, Kansas.
On November 30, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Keeping
College Within Reach: Discussing Ways Institutions Can
Streamline Costs and Reduce Tuition.'' The purpose of the
hearing was to highlight innovative practices institutions of
higher education are implementing to reduce their costs to
limit tuition increases for students. Testifying before the
Subcommittee were Ms. Jane V. Wellman, Executive Director,
Delta Project on Postsecondary Costs, Productivity, and
Accountability, Washington, D.C.; Dr. Ronald E. Manahan,
President, Grace College and Seminary, Winona Lake, Indiana;
Mr. Jamie P. Merisotis, President and Chief Executive Officer,
Lumina Foundation for Education, Indianapolis, Indiana; and Mr.
Tim Foster, President, Colorado Mesa University, Grand
Junction, Colorado.
Legislative action--First Session
On February 17, 2011, the House of Representatives
considered an amendment offered by Committee Chairman John
Kline (R-MN), Higher Education and Workforce Training
Subcommittee Chairwoman Virginia Foxx (R-NC), and Rep. Alcee
Hastings (D-FL) to H.R. 1, the Disaster Relief Appropriations
Act of 2013. The amendment prohibited the use of funds by the
U.S. Department of Education to implement and enforce the
gainful employment regulation. The amendment was agreed to by a
bipartisan vote of 289 to 136.
On February 19, 2011, the House of Representatives passed
H.R. 1 by a vote of 235 to 189. This bill was not signed into
law.
On June 3, 2011, Chairman John Kline (R-MN) and
Subcommittee Chairwoman Virginia Foxx (R-NC) introduced H.R.
2117, the Protecting Academic Freedom in Higher Education Act.
The bill repealed the state authorization regulation, one piece
of the credit hour regulation, and prohibited the Secretary of
Education (Secretary) from defining credit hour for any purpose
under the Higher Education Act of 1965.
On June 15, 2011, the Committee considered H.R. 2117 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 27 to 11.
The Committee considered and adopted the following
amendment to H.R. 2117:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to add a
short title to the legislation. The amendment was adopted by
voice vote.
The Committee further considered the following amendments
to H.R. 2117, which were not adopted:
Rep. Raul Grijalva (D-AZ) offered an amendment
to maintain pieces of the state authorization regulation,
including the complaint process. The amendment failed by a vote
of 17 to 22.
Ranking Member George Miller (D-CA) offered an
amendment to prohibit implementation until the U.S. Department
of Education Inspector General certifies there are equal or
greater protections in place related to program integrity under
Title IV of the Higher Education Act of 1965. The amendment
failed by a vote of 17 to 22.
Rep. Rush Holt (D-NJ) offered an amendment to
stipulate the act would be effective only if the maximum Pell
Grant award is at least $5,550 for the 2012-2013 school year.
The amendment was ruled out of order.
Rep. Tim Bishop (D-NY) offered an amendment to
strike the repeal of the credit hour regulation that
establishes a federal definition of a credit hour. The
amendment failed by a vote of 11 to 27.
Rep. Tim Bishop (D-NY) offered an amendment to
strike the prohibition on the Secretary of Education from
defining credit hour in the future. The amendment failed by a
vote of 16 to 22.
Hearings--Second session
On July 18, 2012, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Keeping
College Within Reach: Exploring State Efforts to Curb Costs.''
The purpose of the hearing was to highlight innovative
practices at the state level to assist postsecondary
institutions in keeping costs affordable and to promote
accountability of public funds. Testifying before the
Subcommittee were Mr. Scott Pattison, Executive Director,
National Association of State Budget Officers, Washington,
D.C.; Ms. Teresa Lubbers, Commissioner for Higher Education,
State of Indiana, Indianapolis, Indiana; Mr. Stan Jones,
President, Complete College America, Zionsville, Indiana; and
Dr. Joe May, President, Louisiana Community and Technical
College System, Baton Rouge, Louisiana.
On September 20, 2012, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Assessing
College Data: Helping to Provide Valuable Information to
Students, Institutions, and Taxpayers.'' The purpose of the
hearing was to examine data collected by the federal government
from institutions of higher education, including data
requirements established during the last reauthorization of the
Higher Education Act. Testifying before the Subcommittee were
Dr. Mark Schneider, Vice President, American Institutes for
Research, Washington, D.C.; Dr. James Hallmark, Vice Chancellor
for Academic Affairs, Texas A&M System, College Station, Texas;
Dr. Jose Cruz, Vice President for Higher Education Policy and
Practice, The Education Trust, Washington, D.C.; and Dr. Tracy
Fitzsimmons, President, Shenandoah University, Winchester,
Virginia.
Legislative action--Second session
On February 28, 2012, the House of Representatives passed
H.R. 2117 by a bipartisan vote of 303 to 114. The bill was sent
to the Senate and referred to the Senate Committee on Health,
Education, Labor, and Pensions.
On April 25, 2012, Rep. Judy Biggert (R-IL) introduced H.R.
4628, the Interest Rate Reduction Act. The bill reduced the
interest rate on subsidized Stafford loans made to
undergraduate students from 6.8 percent to 3.4 percent for one
year, from July 1, 2012, through June 30, 2013. To offset the
increase in mandatory spending, the bill repealed the
Prevention and Public Health Fund authorized under Section 4002
of the Patient Protection and Affordable Care Act and rescinded
the balance of unobligated monies made available for the fund.
On April 27, 2012, the House of Representatives passed H.R.
4628 by a vote of 215 to 195.
While H.R. 4628 was never considered by the Senate, its
provisions were included in the Conference Report for H.R.
4348, the Moving Ahead for Progress in the 21st Century Act
(MAP-21), sponsored by Rep. John Mica (R-FL). To partially
offset the increase in mandatory spending that resulted from
the temporary reduction in interest rates on subsidized
Stafford loans, the bill permanently restricted the period of
eligibility to borrow subsidized Stafford loans to 150 percent
of the published length of a student's educational program.
On June 29, 2012, the House of Representatives passed the
Conference Report to H.R. 4348 by a bipartisan vote of 373 to
52.
On June 29, 2012, the Senate passed the Conference Report
to H.R. 4348 by a bipartisan vote of 74 to 19.
On July 6, 2012, the President of the United States signed
H.R. 4348 into law (P.L. 112-141).
113TH CONGRESS
Hearings--First session
On March 13, 2013, the Committee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Examining
Opportunities to Strengthen Federal Student Loan Programs.''
The purpose of the hearing was to examine ways to strengthen
federal student loans, as well as how moving to a market-based
or variable interest rate on all federal student loans could
benefit both students and taxpayers. Testifying before the
Committee were Dr. Deborah J. Lucas, Sloan Distinguished
Professor of Finance, Massachusetts Institute of Technology,
Cambridge, Massachusetts; Mr. Jason Delisle, Director, Federal
Education Budget Project, The New America Foundation,
Washington, D.C.; Mr. Justin Draeger, President and Chief
Executive Officer, National Association of Student Financial
Aid Administrators, Washington, D.C.; and Dr. Charmaine Mercer,
Vice President of Policy, Alliance for Excellent Education,
Washington, D.C.
On April 9, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Monroe, Michigan, entitled
``Reviving Our Economy: The Role of Higher Education in Job
Growth and Development.'' The purpose of the hearing was to
highlight work being done by local colleges and universities to
respond to local and state economic needs. Testifying before
the Subcommittee were Mr. Henry Lievens, Commissioner, Monroe
County, Monroe, Michigan; Ms. Lynette Dowler, Plant Director,
Fossil Generation, DTE Energy, Detroit, Michigan; Ms. Susan
Smith, Executive Director, Economic Development Partnership of
Hillsdale County, Jonesville, Michigan; Mr. Dan Fairbanks,
United Auto Workers International Representative, UAW-GM Skill
Development and Training Department, Detroit, Michigan; Dr.
David E. Nixon, President, Monroe County Community College,
Monroe, Michigan; Sister Peg Albert, OP, Ph.D., President,
Siena Heights University, Adrian, Michigan; Dr. Michelle
Shields, Career Coach/Workforce Development Director, Jackson
Community College, Jackson, Michigan; and Mr. Douglas A. Levy,
Director of Financial Aid, Macomb Community College, Warren,
Michigan.
On April 16, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: The Role of Federal Student Aid
Programs.'' The purpose of the hearing was to examine shifting
the focus of federal student aid programs from enhancing access
to improving student outcomes. Testifying before the
Subcommittee were Mr. Terry W. Hartle, Senior Vice President,
Division of Government and Public Affairs, American Council on
Education, Washington, D.C.; Ms. Moriah Miles, State Chair,
Minnesota State University Student Association, Mankato,
Minnesota; Ms. Patricia McGuire, President, Trinity Washington
University, Washington, D.C.; and Mr. Dan Madzelan, Former
Employee (Retired), U.S. Department of Education, University
Park, Maryland.
On April 24, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Enhancing Transparency for Students,
Families, and Taxpayers.'' The purpose of the hearing was to
examine ways to improve the information provided by the federal
government to inform students and families about their
postsecondary education options. Testifying before the
Subcommittee were Dr. Donald E. Heller, Dean, College of
Education, Michigan State University, East Lansing, Michigan;
Mr. Alex Garrido, Student, Keiser University, Miami, Florida;
Dr. Nicole Farmer Hurd, Founder and Executive Director,
National College Advising Corps, Carrboro, North Carolina; and
Mr. Travis Reindl, Program Director, Postsecondary Education,
National Governors Association Center for Best Practices,
Washington, D.C.
On June 13, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Discussing Program Quality through
Accreditation.'' The purpose of the hearing was to examine the
historical role of accreditation, discuss the role of regional
and national accreditors in measuring institutional quality,
and contemplate areas for reform. Testifying before the
Subcommittee were Dr. Elizabeth H. Sibolski, President, Middle
States Commission on Higher Education, Philadelphia,
Pennsylvania; Dr. Michale McComis, Executive Director,
Accrediting Commission of Career Schools and Colleges,
Arlington, Virginia; Ms. Anne D. Neal, President, American
Council of Trustees and Alumni, Washington, D.C.; and Mr. Kevin
Carey, Director of the Education Policy Program, The New
America Foundation, Washington, D.C.
On July 9, 2013, the Committee held a hearing in
Washington, D.C., entitled ``Keeping College Within Reach:
Improving Higher Education through Innovation.'' The purpose of
the hearing was to highlight innovation in higher education
occurring at the state and institutional level and in the
private sector. Testifying before the Committee were Mr. Scott
Jenkins, Director of External Relations, Western Governors
University, Salt Lake City, Utah; Dr. Pamela J. Tate, President
and Chief Executive Officer, Council for Adult and Experiential
Learning, Chicago, Illinois; Dr. Joann A. Boughman, Senior Vice
Chancellor for Academic Affairs, University System of Maryland,
Adelphi, Maryland; and Mr. Burck Smith, Chief Executive Officer
and Founder, StraighterLine, Baltimore, Maryland.
On September 11, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Supporting Higher Education Opportunities
for America's Servicemembers and Veterans.'' The purpose of the
hearing was to examine the efforts of higher education to
improve postsecondary education opportunities for
servicemembers and veterans. Testifying before the Subcommittee
were Mrs. Kimrey W. Rhinehardt, Vice President for Federal and
Military Affairs, The University of North Carolina, Chapel
Hill, North Carolina; Dr. Arthur F. Kirk, Jr., President, Saint
Leo University, Saint Leo, Florida; Dr. Russell S. Kitchner,
Vice President for Regulatory and Governmental Relations,
American Public University System, Charles Town, West Virginia;
and Dr. Ken Sauer, Senior Associate Commissioner for Research
and Academic Affairs, Indiana Commission for Higher Education,
Indianapolis, Indiana.
On September 18, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Improving Access and Affordability
through Innovative Partnerships.'' The purpose of the hearing
was to examine the efforts of higher education institutions to
expand access and reduce costs by partnering with local
employers, other colleges, or online course providers.
Testifying before the Subcommittee were Dr. Jeffrey Docking,
President, Adrian College, Adrian, Michigan; Ms. Paula R.
Singer, President and Chief Executive Officer, Laureate Global
Products and Services, Baltimore, Maryland; Dr. Rich Baraniuk,
Professor, Rice University, and Founder, Connexions, Houston,
Texas; and Dr. Charles Lee Isbell, Jr., Professor and Senior
Associate Dean, College of Computing, Georgia Institute of
Technology, Atlanta, Georgia.
On November 13, 2013, the Committee held a hearing in
Washington, D.C., entitled ``Keeping College Within Reach:
Simplifying Federal Student Aid.'' The purpose of the hearing
was to examine the need to streamline, consolidate, and
simplify federal student aid programs. Testifying before the
Committee were Ms. Kristin D. Conklin, Founding Partner, HCM
Strategies, LLC, Washington, D.C.; Dr. Sandy Baum, Research
Professor of Education Policy, George Washington University
Graduate School of Education and Human Development, and Senior
Fellow, Urban Institute, Washington, D.C.; Ms. Jennifer
Mishory, J.D., Deputy Director, Young Invincibles, Washington,
D.C.; and Mr. Jason Delisle, Director, Federal Education Budget
Project, New America Foundation, Washington, D.C.
On December 3, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Strengthening Pell Grants for Future
Generations.'' The purpose of the hearing was to examine Pell
Grant program reform proposals to better target funds to the
neediest students and put the program on a fiscally responsible
and sustainable path. Testifying before the Subcommittee were
Mr. Justin Draeger, President and Chief Executive Officer,
National Association of Student Financial Aid Administrators,
Washington, D.C.; Dr. Jenna Ashley Robinson, Director of
Outreach, John W. Pope Center for Higher Education Policy,
Raleigh, North Carolina; Mr. Michael Dannenberg, Director of
Higher Education and Education Finance Policy, The Education
Trust, Washington, D.C.; and Mr. Richard C. Heath, Director of
Student Financial Services, Anne Arundel Community College,
Arnold, Maryland.
Legislative action--First session
On May 9, 2013, Chairman John Kline (R-MN) and Subcommittee
Chairwoman Virginia Foxx (R-NC) introduced H.R. 1911, the
Smarter Solutions for Students Act. The bill moved all federal
student loans (except Perkins loans) to a market-based interest
rate.
On May 16, 2013, the Committee considered H.R. 1911 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 24 to 13.
The Committee considered and adopted the following
amendment to H.R. 1911:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to make a
technical change to the bill. The amendment was adopted by
voice vote.
The Committee further considered the following amendments
to H.R. 1911, which were not adopted:
Rep. Joe Heck (R-NV) offered an amendment to
allocate a portion of the savings generated under the bill to
Pell Grants. The amendment was withdrawn.
Rep. Joe Heck (R-NV) offered an amendment to
provide the Secretary of Education with authority to reduce the
interest rate on student loans if a borrower makes the first 48
payments on time. The amendment was withdrawn.
Rep. John Tierney (D-MA) offered an amendment to
set the federal student loan interest rates at the same rate
the Federal Reserve charges to banks for two years. The
amendment failed by a vote of 14 to 23.
Rep. Joe Courtney (D-CT) offered an amendment to
extend the 3.4 percent interest rate on subsidized Stafford
loans for two years. The amendment failed by a vote of 15 to
21.
On May 23, 2013, the House of Representatives passed H.R.
1911 by a bipartisan vote of 221 to 198.
On July 24, 2013, the Senate passed a substitute version of
H.R. 1911, the Bipartisan Student Loan Certainty Act, by a
bipartisan vote of 81 to 18. The legislation allowed student
loan interest rates to reset once a year by the market, but
they would be locked into a fixed rate once the loan is
disbursed to the student. Interest rates would be set using the
following formulas:
Undergraduate Stafford loans (subsidized and
unsubsidized): 10-year Treasury Note plus 2.05 percent, capped
at 8.25 percent.
Graduate Stafford loans: 10-year Treasury Note
plus 3.6 percent, capped at 9.5 percent
PLUS loans (graduate and parent): 10-year Treasury
Note plus 4.6 percent, capped at 10.5 percent.
On July 31, 2013, the House of Representatives agreed to
suspend the rules and agree to the Senate amendment to H.R.
1911 by a bipartisan vote of 392 to 31.
On August 9, 2013, the President of the United States
signed H.R. 1911 into law (P.L. 113-28).
On May 13, 2013, Rep. Luke Messer (R-IN) introduced H.R.
1949, the Improving Postsecondary Education Data for Students
Act. The bill directed the Secretary to convene an Advisory
Committee on Improving Postsecondary Education Data to conduct
a study on the factors students and families want, need, and
already consider when choosing a higher education institution.
On May 16, 2013, the Committee considered H.R. 1949 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 1949:
Rep. Luke Messer (R-IN) offered an amendment in
the nature of a substitute to H.R. 1949 to (1) include
individuals who represent undergraduate and graduate education;
college and career counselors at secondary schools; experts in
data policy, collection, and use; and experts in labor markets
on the list of individuals required to be represented on the
Advisory Committee on Improving Postsecondary Education Data;
(2) ensure individuals on the advisory committee represent
economic, racial, and geographically diverse populations; (3)
require the advisory committee to examine information related
to the sources of financial assistance, including federal
student loans, as part of the required aspects of the study;
(4) require the advisory committee to examine how information
regarding student outcomes should be disaggregated for first-
generation students; and (5) provide other conforming and
technical changes to the bill. The amendment was adopted by
voice vote.
On May 22, 2013, the House of Representatives agreed to
suspend the rules and pass H.R. 1949 by voice vote. The bill
was sent to the Senate and referred to the Senate Committee on
Health, Education, Labor, and Pensions.
On July 10, 2013, Chairman John Kline (R-MN), Subcommittee
Chairwoman Virginia Foxx (R-NC), and Rep. Alcee Hastings (D-FL)
introduced H.R. 2637, the Supporting Academic Freedom through
Regulatory Relief Act. The bill, which included the text of the
Protecting Academic Freedom in Higher Education Act (H.R. 2117)
and the Kline/Foxx/Hastings amendment to H.R. 1 from the 112th
Congress, repealed the credit hour, state authorization, and
gainful employment regulations and amended the statute to
clarify the incentive compensation regulation. Additionally,
the bill prohibited the U.S. Department of Education from
issuing related regulations until after Congress reauthorizes
the Higher Education Act.
On July 24, 2013, the Committee considered H.R. 2637 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 22 to 13.
The Committee considered and adopted the following
amendment to H.R. 2637:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to change a
subsection title in the legislation. The amendment was adopted
by voice vote.
The Committee further considered the following amendment to
H.R. 2637, which was not adopted:
Rep. Tim Bishop (D-NY) offered an amendment to
strike the prohibition on the U.S. Department of Education from
issuing regulations related to state authorization, gainful
employment, and credit hour. The amendment failed by a vote of
13 to 22.
Hearings--Second session
On January 28, 2014, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Sharing Best Practices for Serving Low-
Income and First Generation Students.'' The purpose of the
hearing was to highlight best practices at institutions of
higher education for serving low-income and first generation
students. Testifying before the Subcommittee were Dr. James
Anderson, Chancellor, Fayetteville State University,
Fayetteville, North Carolina; Mrs. Mary Beth Del Balzo, Senior
Executive Vice President and Chief Executive Officer, The
College of Westchester, White Plains, New York; Mr. Josse Alex
Garrido, Graduate Student, University of Texas--Pan American,
Edinburg, Texas; and Rev. Dennis H. Holtschneider, President,
DePaul University, Chicago, Illinois.
On February 27, 2013, the Committee on Education and the
Workforce Subcommittee on Early Childhood, Elementary, and
Secondary Education and Subcommittee on Higher Education and
Workforce Training held a joint hearing in Washington, D.C., on
``Exploring Efforts to Strengthen the Teaching Profession.''
The purpose of the hearing was to discuss the state of teacher
preparation nationwide. Testifying before the subcommittees
were Dr. Deborah A. Gist, Commissioner, Rhode Island Department
of Elementary and Secondary Education, Providence, Rhode
Island; Dr. Marcy Singer-Gabella, Professor of the Practice of
Education, Vanderbilt University, Nashville, Tennessee; Dr.
Heather Peske, Associate Commissioner for Educator Quality,
Massachusetts Department of Elementary and Secondary Education,
Malden, Massachusetts; and Ms. Christina Hall, Co-Founder and
Co-Director, Urban Teacher Center, Baltimore, Maryland.
On March 12, 2014, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Examining the
Mismanagement of the Student Loan Rehabilitation Process.'' The
purpose of the hearing was to examine the U.S. Department of
Education's ability to oversee the processing of rehabilitated
loans issued under the Direct Loan program. Testifying before
the Subcommittee were Ms. Melissa Emrey-Arras, Director of
Education, Workforce, and Income Security Issues, U.S.
Government Accountability Office, Boston, Massachusetts; The
Honorable Kathleen Tighe, Inspector General, U.S. Department of
Education, Washington, D.C.; Mr. James Runcie, Chief Operating
Officer, Federal Student Aid, U.S. Department of Education,
Washington, D.C.; and Ms. Peg Julius, Executive Director of
Enrollment Management, Kirkwood Community College, Cedar
Rapids, Iowa.
On March 20, 2014, the Committee held a hearing in Mesa,
Arizona, entitled ``Reviving our Economy: Supporting a 21st
Century Workforce.'' The purpose of the hearing was to explore
the role of local higher education institutions in fostering
job creation and growth through innovative partnerships with
the business community and new modes of teaching delivery.
Testifying before the Committee were The Honorable Rick
Heumann, Vice Mayor, City of Chandler, Chandler, Arizona; Ms.
Cathleen Barton, Education Manager, Intel Corporate Affairs,
Southwestern United States, Intel Corporation, Chandler,
Arizona; Mr. Lee D. Lambert, J.D., Chancellor, Pima Community
College, Tucson, Arizona; Dr. William Pepicello, President,
University of Phoenix, Tempe, Arizona; Dr. Michael Crow,
President, Arizona State University, Tempe, Arizona; Dr. Ann
Weaver Hart, President, The University of Arizona, Tucson,
Arizona; Dr. Ernest A. Lara, President, Estrella Mountain
Community College, Avondale, Arizona; and Ms. Christy Farley,
Vice President of Government Affairs and Business Partnerships,
Northern Arizona University, Phoenix, Arizona.
On April 2, 2014, the Committee on Education and the
Workforce held a hearing in Washington, D.C., entitled
``Keeping College Within Reach: Meeting the Needs of
Contemporary Students.'' The purpose of the hearing was to
examine how institutions, states, and other entities assist
contemporary college students in accessing and completing
postsecondary education. Testifying before the Committee were
Dr. George A. Pruitt, President, Thomas Edison State College,
Trenton, New Jersey; Dr. Kevin Gilligan, Chairman and Chief
Executive Officer, Capella Education Company, Minneapolis,
Minnesota; Mr. David Moldoff, Chief Executive Officer and
Founder, AcademyOne, Inc., West Chester, Pennsylvania; Dr.
Joann A. Boughman, Senior Vice Chancellor for Academic Affairs,
University System of Maryland, Adelphi, Maryland; Mr. Stan
Jones, President, Complete College America, Indianapolis,
Indiana; and Dr. Brooks A. Keel, President, Georgia Southern
University, Statesboro, Georgia.
Legislative action--Second session
On September 19, 2013, Rep. Matt Salmon (R-AZ), Rep. Susan
Brooks (R-IN), and Rep. Jared Polis (D-CO) introduced H.R.
3136, the Advancing Competency-Based Education Demonstration
Project Act of 2013. The bill directed the Secretary to select
institutions or consortia of institutions for voluntary
participation in competency-based education demonstration
projects. The demonstration projects would have provided
participating entities with the ability to offer competency-
based education programs that do not meet certain statutory and
regulatory requirements which would otherwise prevent them from
participating in federal student aid programs.
On July 10, 2014, the Committee considered H.R. 3136 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 3136:
Rep. Matt Salmon (R-AZ) and Rep. Jared Polis (D-
CO) offered an amendment in the nature of a substitute to add
certain requirements to the applications to participate in a
competency-based education project; allow eligible entities to
submit amendments to their previously-approved applications;
set requirements for the entities the Secretary must choose to
participate in the programs; require institutions to provide
student information to the director of the Institute of
Education Sciences (IES); require the Director of IES to
annually evaluate each project and provide a report with
specified information to the authorizing committees; authorize
funds to be available from the amount appropriated for salaries
and expenses of the U.S. Department of Education, and make
conforming and technical changes to the introduced bill. The
amendment was adopted by voice vote.
The Committee further considered the following amendment to
H.R. 3136, which was not adopted:
Rep. Tierney (D-MA) offered an amendment that
would have allowed students with federal student loans and
private student loans issued prior to 2013 to refinance those
loans into new federal loans at the interest rate set for the
2013-2014 academic year. The amendment was ruled non-germane.
Ranking Member George Miller (D-CA) appealed the ruling of the
chair. Rep. Glenn Thompson (R-PA) offered a motion to table the
appeal of the ruling of the chair, which was adopted by a vote
of 22 to 16.
On July 23, 2014, the House of Representatives considered
H.R. 3136 and passed it, as amended, by a recorded vote of 414-
0 on July 23, 2014. The bill was sent to the Senate and was
referred to the Senate Committee on Health, Education, Labor,
and Pensions.
On June 26, 2014, Subcommittee Chairwoman Virginia Foxx (R-
NC) and Rep. Luke Messer (R-IN) introduced H.R. 4983, the
Strengthening Transparency in Higher Education Act. The bill
simplified and streamlined the information made publicly
available by the Secretary regarding institutions of higher
education.
On July 10, 2014, the Committee considered H.R. 4983 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 4983:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute that
required additional information on the College Dashboard;
required the Secretary to conduct consumer testing in
consultation with appropriate federal departments and agencies;
ensured consumer testing addresses whether the College
Dashboard provides useful and relevant information to students
and families; required the Secretary to submit to the
authorizing committees recommendations based on the results of
consumer testing; set new minimum requirements for net price
calculators, required funding to come from funds already
appropriated to maintain the College Navigator; and made other
conforming and technical changes. The amendment was adopted by
voice vote.
The Committee further considered the following amendment to
H.R. 4983, which was not adopted:
Ranking Member George Miller (D-CA) offered an
amendment that required the Commissioner of Education
Statistics to establish a formula for determining the
percentage of student borrowers who have completed their course
of study and who are in repayment or in an authorized deferment
period at three, five and 10 years after completion of a
program of study. The amendment failed by a vote of 13 to 21.
On July 23, 2014, the House of Representatives considered
H.R. 4983 under suspension of the rules. The bill was agreed to
by voice vote, sent to the Senate, and referred to the Senate
Committee on Health, Education, Labor, and Pensions.
On June 26, 2014, Rep. Brett Guthrie (R-KY) and Rep.
Richard Hudson (R-NC) introduced H.R. 4984, the Empowering
Students through Enhanced Financial Counseling Act. The bill
amended the loan counseling requirements under the Higher
Education Act and required counseling for Federal Pell Grant
recipients.
On July 10, 2014, the Committee considered H.R. 4984 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 4984:
Reps. Brett Guthrie (R-KY) and Suzanne Bonamici
(D-OR) offered an amendment in the nature of a substitute that
removed the requirement that annual counseling for Pell Grant
recipients be tied to disbursement of the grant; required
additional information be disclosed to borrowers during annual
counseling and exit counseling sessions; required institutions
to provide annual counseling to borrowers receiving Parent PLUS
loans; required any funds used to carry out the act to come
from funds already appropriated to maintain the Financial
Awareness Counseling Tool; and made conforming and technical
changes. The amendment was adopted by voice vote.
The Committee further considered the following amendment to
H.R. 4984, which was not adopted:
Rep. Susan Davis (D-CA) offered an amendment to
modify the rule requiring for-profit colleges to receive at
least 10 percent of their revenue from sources other than the
U.S. Department of Education to remain eligible for federal
student aid to include all federal aid, including veterans'
educational benefits and some Workforce Investment Act funds,
in the 90 percent portion of the calculation and only private
funds in the 10 percent portion of the calculation. The
amendment was ruled non-germane. Ranking Member George Miller
(D-CA) appealed the ruling of the chair. Rep. Glenn Thompson
(R-PA) offered a motion to table the appeal of the ruling of
the chair, which was adopted by a vote of 20 to 13.
On July 24, 2014, the House of Representatives considered
H.R. 4984 and passed it, as amended, by a vote of 405-11. The
bill was sent to the Senate and referred to the Senate
Committee on Health, Education, Labor, and Pensions.
114TH CONGRESS
Hearings--First session
On February 4, 2015, the Committee held a hearing in
Washington, D.C., on ``Expanding Opportunity in America's
Schools and Workplaces.'' The purpose of the hearing was to
allow Committee members to learn about efforts made by state
leaders to strengthen education, to make sure those who
graduate are prepared to pursue a postsecondary education and
compete in the workforce, and promote efforts to spur job
creation. Testifying before the Committee were Dr. Michael
Amiridis, Provost and Executive Vice President for Academic
Affairs, University of South Carolina, Columbia, South
Carolina; Mr. Drew Greenblatt, President and CEO, Marlin Steel
Wire Products, Baltimore, Maryland; Dr. Lawrence Mishel, Ph.D.,
President, Economic Policy Institute, Washington, D.C.; and The
Honorable Mike Pence, Governor, State of Indiana, Indianapolis,
Indiana.
On March 17, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Strengthening
America's Higher Education System.'' The purpose of the hearing
was to explore policy proposals that align with the Committee's
four pillars for reauthorization of the HEA: (1) empowering
students and families to make informed decisions; (2)
simplifying and improving student aid; (3) promoting
innovation, access, and completion; and (4) ensuring strong
accountability and a limited federal role. Testifying before
the Subcommittee were Mr. Willis Goldsmith, Partner, Jones Day,
New York, New York who testified on behalf of the U.S. Chamber
of Commerce; Mr. Stan Soloway, President and CEO, Professional
Services Council, Arlington, Virginia; Ms. Angela Styles,
Partner, Crowell & Moring LLP, Washington, D.C.; and Ms. Karla
Walter, Associate Director, American Worker Project, Center for
American Progress, Washington, D.C.
On April 30, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Improving
College Access and Completion for Low-Income and First-
Generation Students.'' The purpose of the hearing was to
explore policy proposals and best practices to strengthen
programs to help disadvantaged students access and complete
higher education. Testifying before the Subcommittee were Dr.
Laura Perna, James S. Riepe Professor, Executive Director,
Alliance for Higher Education and Democracy, University of
Pennsylvania, Philadelphia, Pennsylvania; Dr. Charles J.
Alexander, Associate Vice Provost for Student Diversity,
Director, Academic Advancement Program, Associate Adjunct
Professor, University of California, Los Angeles, California;
Dr. Michelle Asha Cooper, President, Institute for Higher
Education Policy, Washington, D.C.; and Dr. Joe D. May,
Chancellor, Dallas County Community College District, Dallas,
Texas.
On September 10, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Preventing
and Responding to Sexual Assault on College Campuses.'' The
purpose of the hearing was to explore policy proposals and best
practices to help institutions address and respond to campus
sexual assault and violence. Testifying before the Subcommittee
were Ms. Dana Scaduto, General Counsel, Dickinson College,
Carlisle, Pennsylvania; Dr. Penny Rue, Vice President for
Campus Life, Wake Forest University, Winston-Salem, North
Carolina; Ms. Lisa M. Maatz, M.A., Vice President for
Government Relations, American Association of University Women,
Washington, D.C.; and Mr. Joseph Cohn, Legislative and Policy
Director, Foundation for Individual Rights in Education,
Philadelphia, Pennsylvania.
On November 18, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training, together with the House Committee on Oversight and
Government Reform Subcommittee on Government Operations held a
hearing in Washington, D.C., on ``Federal Student Aid:
Performance-Based Organization Review.'' The purpose of the
hearing was to review the Office of Federal Student Aid's (FSA)
responsibilities as a Performance-Based Organization (PBO),
evaluate the PBO's performance, and identify possible areas of
reform. Testifying before the subcommittees were Mr. James
Runcie, Chief Operating Officer, U.S. Department of Education,
Washington, D.C.; Ms. Melissa Emrey-Arras, Director, Education
Workforce, and Income Security, U.S. Government Accountability
Office, Washington, D.C.; The Honorable Kathleen Tighe,
Inspector General, U.S. Department of Education, Washington,
D.C.; Mr. Ben Miller, Senior Director, Postsecondary Education,
Center for American Progress, Washington, D.C.; and Mr. Justin
Draeger, President, National Association of Student Financial
Aid Administrators, Washington, D.C.
Legislative action--First session
On July 23, 2015, Higher Education and Workforce Training
Subcommittee Chairwoman Virginia Foxx along with Chairman John
Kline (R-MN), Ranking Member Robert C. Scott (D-VA), and Reps.
Luke Messer (R-IN), Gregorio Sablan (D-MP), Tim Walberg (R-MI),
Joe Heck (R-NV), Buddy Carter (R-GA), Elise Stefanik (R-NY),
Susan Davis (D-CA), Raul Grijalva (D-AZ), and Mark DeSaulnier
(D-CA) introduced H.R. 3178, the Strengthening Transparency in
Higher Education Act. The bill ensures straightforward and
useful information is easily accessible to students and parents
and improves coordination between federal agencies to publish
information about colleges and universities.
On July 23, 2015, Rep. Brett Guthrie (R-KY) along with
Chairman John Kline (R-MN), Ranking Member Robert C. Scott (D-
VA), and Reps. Rick Allen (R-GA), Suzanne Bonamici (D-OR),
Duncan Hunter (R-CA), Tim Walberg (R-MI), Joe Heck (R-NV), Luke
Messer (R-IN), Buddy Carter (R-GA), Elise Stefanik (R-NY),
Susan Davis (D-CA), Raul Grijalva (D-AZ), Gregorio Sablan (D-
MP), Mark Pocan (D-WI), Mark Takano (D-CA), Katherine Clark (D-
MA), Mark DeSaulnier (D-CA), and Richard Hudson (R-NC)
introduced H.R. 3179, the Empowering Students Through Enhanced
Financial Counseling Act. The bill promotes financial literacy
through enhanced counseling for all recipients of federal
financial aid.
On September 24, 2015, Reps. Mike Bishop (R-MI) and Mark
Pocan (D-WI) introduced H.R. 3594, the Higher Education
Extension Act of 2015. The bill extends the authorization of
the National Advisory Committee on Institutional Quality and
Integrity and the authority of institutions of higher education
to make loans to new borrowers under the federal Perkins loan
program through September 30, 2016.
On September 28, 2015, the House of Representatives passed
H.R. 3594 by a voice vote. The bill was sent to the Senate and
referred to the Senate Committee on Health, Education, Labor,
and Pensions. The Senate amended the bill to extend the
authorization of the federal Perkins loan program to September
30, 2017. The amendment was adopted by unanimous consent, and
the underlying legislation was subsequently passed in the
Senate on December 16, 2015, by voice vote.
On December 17, 2015, the House agreed to the Senate
amendment by unanimous consent. The Higher Education Extension
Act of 2015 was signed into law by the President on December
18, 2015.
Legislative action--Second session
On June 22, 2016, the Committee on Education and the
Workforce considered H.R. 3178 in legislative session and
reported it favorably, as amended, to the House of
Representatives by voice vote. The Committee considered and
adopted the following amendment to H.R. 3178:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to make
conforming and technical changes. The amendment was adopted by
voice vote.
On June 22, 2016, the Committee considered H.R. 3179 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 3179:
Rep. Brett Guthrie (R-KY) offered an amendment in
the nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps.
David ``Phil'' Roe (R-TN), Jared Polis (D-CO), and Mark Pocan
(D-WI) introduced H.R. 5528, the Simplifying the Application
for Student Aid Act. The bill ensures continued allowance for
earlier notification of federal student aid, leverages
technology to make the application for federal student aid more
accessible and easier to fill out, and provides more time for
aid administrators to verify and package student aid.
On June 22, 2016, the Committee considered H.R. 5528 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5528:
Rep. Joe Heck (R-NV) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps.
Ruben Hinojosa (D-TX) and Raul Ruiz (D-CA) introduced H.R.
5529, the Accessing Higher Education Opportunities Act. The
bill expands the authorized uses of funds for Hispanic-Serving
Institutions (HSIs) so they may promote dual enrollment
opportunities and encourage Hispanic students to pursue
doctoral degree programs in the healthcare industry.
On June 22, 2016, the Committee considered H.R. 5529 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5529:
Rep. Joe Heck (R-NV) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Reps. Alma Adams (D-NC) and Bradley Byrne
(R-AL) introduced H.R. 5530, the HBCU Capital Financing
Improvement Act. The bill improves the program by requiring the
advisory board to send an annual report to Congress regarding
the status of the Historically Black College and University
(HBCU) Capital Financing Program. Additionally, the bill
renames the escrow account to ``bond insurance fund.'' Lastly,
this bill allows for financial counseling to potential eligible
HBCUs to assist in their preparation to qualify, apply for, and
maintain a capital improvement loan.
On June 22, 2016, the Committee considered H.R. 5530 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5530:
Rep. Alma Adams (D-NC) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
Summary
The Simplifying the Application for Student Aid Act
provides for continued earlier notification of federal student
aid awards and for better utilization of technology to simplify
the FAFSA, and it makes the FAFSA more accessible to students
and families.
The legislation ensures students will be able to apply for
federal student aid using income data from the tax return filed
one year prior to the current application cycle. Since a
family's tax return uses income data from the prior year, the
process of using a previous return is often referred to as
``prior-prior year.'' The legislation also changes the Pell
Grant inflationary increase calculation from the end of the
calendar year to the end of the fiscal year, thereby allowing
aid administrators to package accurate aid packages earlier.
The legislation makes the FAFSA more easily accessible by
requiring the Secretary to make the application available on a
mobile device. The Secretary is required to consumer test the
mobile and online versions of the FAFSA with students in
various income situations and with other experts in student
financial assistance to ensure the applications are easy to
understand and use. The legislation also requires the Secretary
to periodically report on FAFSA simplification efforts and the
needs of limited-English proficient students using the FAFSA.
Additionally, the legislation simplifies the FAFSA by
requiring the Secretary to make every effort to allow students
and families to easily import their Internal Revenue Service
(IRS) income data.
Committee Views
Introduction
Federal, state, and institutional aid is vitally important
to many potential and current postsecondary students. However,
the federal financial aid system is so complex that it has left
many confused about the best options available to pay for their
higher education. This is especially true for students whose
parents or family members did not attend college.
For many students, this confusion begins when they attempt
to fill out the FAFSA, the form that helps financial aid
officers determine students' eligibility for financial aid,
including the Pell Grant, student loans, work-study
opportunities, and state and institutional aid. The FAFSA
form--with the paper version running 10 pages and over 100
questions long--is too complex for many students and families
to easily understand and complete. Additionally, the
traditional aid application timeline has not served the best
interest of students, families, and taxpayers.
The timing of the aid application process and the
application itself must be improved so students and families
can more easily apply and make informed decisions about their
postsecondary education options.
Earlier notification of federal student aid
To help streamline and improve the federal student aid
process, Reps. Joe Heck (R-NV), David ``Phil'' Roe (R-TN),
Jared Polis (D-CO), and Mark Pocan (D-WI) introduced H.R. 5528,
the Simplifying the Application for Student Aid Act, to ensure
continued allowance for earlier notification of federal student
aid.
Historically, the FAFSA was available on January 1 for the
upcoming year, well after many college application deadlines,
and required applicants to provide income from the tax return
due a few months later in April. In order for students to take
advantage of the ability to easily transfer their IRS income
data onto the FAFSA, they had to wait until after they filed
their tax returns. These timing inconsistencies may have caused
delays in the submission of FAFSA forms, leaving financial aid
administrators little time to put together aid packages for
incoming students. According to a 2013 report published by the
National Association of Student Financial Aid Administrators:
Under the current structure, delays can cause an
unfavorable chain reaction: a delay in completing the
income tax return can mean a delay in submitting the
FAFSA, which can result in a delay in financial aid
notification--and potentially a reduced amount of
financial aid. This occurs because some forms of
financial aid have a limited pot of funds, which is
distributed on a first-come, first-served basis. Every
college student needs to know where they stand sooner
rather than later, so the student can adjust and
prepare for the costs of college.\1\
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\1\https://www.nasfaa.org/uploads/documents/ppy--report.pdf. p. 3.
In order to provide students with earlier aid notifications
and assist administrators with more time to package and award
aid, stakeholders have long called for a change to allow
borrowers to apply for aid using prior-prior year data. At a
2015 hearing of the Committee on Education and the Workforce
Subcommittee on Higher Education and Workforce Trainingh
earing, the Honorable Mitch Daniels, former Governor of Indiana
and current President of Purdue University, testified about the
---------------------------------------------------------------------------
benefits of changing to prior-prior year:
Basing decisions on a prior-prior year (PPY) basis
would enable better alignment of the application
process with existing IRS data. The current system,
which uses the previous year's financial records, is
prone to delays and complications that result from the
routine tax process. Switching to PPY would allow time
for tax forms to be processed, corrected and analyzed
before admissions decisions are made and FAFSA
applications are due. It would be advantageous both in
terms of financial planning and connecting the
application to existing data.\2\
---------------------------------------------------------------------------
\2\http://edworkforce.house.gov/calendar/
eventsingle.aspx?EventID=398531.
In the 2008 Higher Education Opportunity Act, Congress
provided the Secretary the authority to allow the use of prior-
prior year income. However, the Secretary is only now utilizing
that authority. Starting this year, applicants can complete the
FAFSA using prior-prior year income. In addition, the Secretary
will make the application available in October 2016, three
months earlier than usual. The Committee recognizes the
benefits of using prior-prior year data to students,
institutions, and taxpayers, and is committed to ensuring this
commonsense policy remains in place in future academic years.
The earlier aid process timeline provided by prior-prior
year allows other aspects of the aid process to occur sooner as
well. H.R. 5528 takes steps to make sure other aspects of the
federal student aid system align with an earlier timeline by
changing the Pell Grant inflationary increase calculation from
occurring at the end of the calendar year to the end of the
fiscal year. This will allow aid administrators to offer
accurate aid packages to prospective students earlier, giving
them more time to weigh options and make the most informed
decisions about where to attend and how to finance a higher
education. However, the Committee does not intend the move to
prior-prior year to complicate income eligibility
determinations for TRIO program participants and believes TRIO
program administrators should continue to be allowed to use
financial aid data from the FAFSA to verify a student's
eligibility to be served by TRIO.
Simplifying the FAFSA for students and families
Questions on the FAFSA form range from the net worth of
investments to complicated tax questions and are often
difficult for students and families to understand. This
confusion can deter applicants from completing the form,
preventing students from receiving financial aid for which they
may otherwise have been eligible. While steps have been taken
to simplify the FAFSA through the use of skip logic and
reducing the number of questions families must answer, the
Committee believes more can be done.
The move to prior-prior year and the use of IRS data
retrieval tool (DRT) will strengthen the integrity of federal
financial aid and reduce verification burdens on institutions
of higher education. Before prior-prior year, student aid
administrators had limited time to verify the accuracy of
students' income data. As Michael Bennett, Associate Vice
President of Financial Aid Services at St. Petersburg College
in Florida, discussed at the March 2015 hearing entitled
``Strengthening America's Higher Education System'':
With more completed, and therefore accurate, tax
information, verification burden for both students and
institutions would be dramatically reduced through an
increased use of the IRS Data Retrieval Tool. This
reduced burden will free up more time for financial aid
administrators to spend on counseling students.
The Committee believes the DRT has significantly reduced
the burden of filling out the FAFSA by allowing families to
import their tax information from the IRS, which eliminates
many of the questions students and families struggle to answer.
The implementation of prior-prior year allows more families to
immediately utilize the DRT by eliminating the delay between
filing taxes and the DRT becoming available. The Simplifying
the Application for Student Aid Act directs the Secretary to
allow married taxpayers filing separately to use the DRT as
single taxpayers and married taxpayers filing jointly can
currently. The legislation also directs the Secretary of
Education to make every effort to utilize technology to
strengthen the DRT and eliminate the need for students and
families to answer questions that are not relevant to them.
H.R. 5528 requires the Secretary to continue examining ways
to simplify the FAFSA through the DRT and report to Congress
biennially on the U.S. Department of Education's efforts. The
Committee encourages the Secretary to consider any
redistribution of federal, state, and institutional aid that
may occur through such simplification efforts as well as any
potential limitations of using IRS data sufficient to calculate
need for the determination of state aid. The Committee
additionally encourages the Secretary to consider any other
means of simplification made possible through the use of prior-
prior year data.
The Simplifying the Application for Student Aid Act
requires the Secretary to conduct consumer testing to ensure
the electronic versions of the FAFSA are easily understandable
by students and families. The Committee appreciates the work
done to make the FAFSA more user-friendly but believes more can
be done to make sure the FAFSA is as understandable as
possible. By requiring the Secretary to conduct consumer
testing with current and prospective college students, family
members of such students, financial aid application experts,
and students who do and do not qualify for the automatic zero
expected family contribution calculation or the Simplified
Needs Test, the electronic versions of the FAFSA can be
strengthened for efficiency and design.
Promoting FAFSA access
One of the main purposes of FAFSA simplification is to make
the form more accessible to students, thereby making a higher
education more attainable. Since the creation of the online
FAFSA in 1997, FAFSA completion time has decreased. However,
this online application is not always easily accessible. A
recent report found two million students who would have been
eligible for the Pell Grant did not fill out the FAFSA. Roughly
23 percent of these students cited the difficulty of the
financial aid form or lack of information about how to apply as
a reason for not completing the FASFA.\3\ Another report found
40 percent of all families with incomes below $25,000 and with
school-age children lack a high speed internet connection at
home.\4\ Students with families in this income bracket are
likely eligible for a Pell Grant and the most likely to receive
state and institutional aid, both of which often rely on FAFSA
data.
---------------------------------------------------------------------------
\3\https://www.edvisors.com/media/files/student-aid-policy/
20150112-leaving-money-on-the-table.pdf. p. 3.
\4\http://www.pewresearch.org/fact-tank/2015/04/20/the-numbers-
behind-the-broadband-homework-gap/.
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The Committee believes barriers to access should be removed
and students should not be precluded from applying for aid
because their families do not have ready access to computers or
Internet. For this reason, the Simplifying the Application for
Student Aid Act requires the Secretary to make the FAFSA
available on mobile phones, through a mobile application or
another technology tool.
Additionally, a student's access to federal financial aid
should not be hampered by the limited English proficiency of
their parents. Complicated financial questions are sometimes
best understood when asked in one's native language, similar to
how the IRS offers assistance to taxpayers in multiple
languages.
The FAFSA relies in large part on IRS data, and there is
evidence that parents whose native languages are other than
English are relying on costly translation services to enter
their information and help their children apply for federal
financial aid. The Committee believes the FAFSA should be free
for all American citizens and additional expenses for
translators should be avoided. The Committee directs the
Secretary to take special efforts to make the FAFSA more
accessible to families with limited English proficiency, in
multiple languages similar to IRS practices cited above. In
addition to simplifying the FAFSA completion process for whole
populations of students and their families, this legislation
also requires the Secretary to periodically report on the needs
of limited-English proficient students using the FAFSA.
Conclusion
For many students and families, federal financial aid makes
a postsecondary education possible. Confusion surrounding the
student aid system, however, can act as a barrier to students
attempting to access this assistance. The Simplifying the
Application for Student Aid Act takes an important step toward
simplifying the financial aid process by ensuring students and
families can apply more easily and at a time that enables them
to make the most informed decisions about their education.
Section-by-Section Analysis
Section 1. Short title
States the short title is the Simplifying the Application
for Student Aid Act.
Section 2. Using data from second preceding year
Amends section 480(a) of the Higher Education Act to
require the Secretary to allow for the use of income from the
second preceding tax year when applicants fill out the FAFSA.
Section 3. Calculation of annual adjustment percentage for Federal Pell
Grants
Amends section 401(b) of the Higher Education Act to allow
the adjustment percentage for Federal Pell Grants to be
calculated at the end of each fiscal year instead of the end of
each calendar year.
Section 4. FAFSA simplification
Amends section 483(a) of the Higher Education Act to
require the Secretary to make the FAFSA available through a
technology tool for mobile devices. Requires the Secretary to
conduct consumer testing for the mobile and online versions of
the FAFSA to ensure they are easily usable and understandable
to students and families.
Amends section 483(f) of the Higher Education Act to
require the Secretary to make every effort to use data
available from the IRS to reduce the amount of original data
entry by applicants and allow more taxpayers to utilize the
data retrieval tool. Requires the Secretary to report to
Congress every other year on its FAFSA simplification efforts
and no less than once every 10 years on the needs of limited-
English proficient students using the FAFSA.
Reserves $3 million from funding authorized to be
appropriated for maintaining the FAFSA to be available to carry
out this legislation and specifies no additional funds are
authorized to be appropriated by this legislation.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. H.R. 5528, the Simplifying the Application for Student
Aid Act, streamlines and improves the student aid process by
providing for earlier award notification and making the Free
Application for Federal Student Aid (FAFSA) simpler and more
accessible.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. This issue is addressed in the CBO letter.
Earmark Statement
H.R. 5528 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of House Rule XXI.
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of House rule XIII, the
goals of H.R. 5528 are to streamline and improve the student
aid process by providing for earlier award notification and
making the Free Application for Federal Student Aid (FAFSA)
simpler and more accessible.
Duplication of Federal Programs
No provision of H.R. 5528 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The committee estimates that enacting H.R. 5528 does not
specifically direct the completion of any specific rule makings
within the meaning of 5 U.S.C. 551.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the committee's oversight findings and recommendations are
reflected in the body of this report.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the committee has received
the following estimate for H.R. 5528 from the Director of the
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 5, 2016.
Hon. John Kline, Chairman,
Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5528, the
Simplifying the Application for Student Aid Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Justin
Humphrey.
Sincerely,
Keith Hall.
Enclosure.
H.R. 5528--Simplifying the Application for Student Aid Act
H.R. 5528 would reserve $3 million from funding for the
Department of Education to implement changes to the application
process for federal student aid. Those changes would include
developing and testing a version of the application for mobile
devices and continuing to develop the data retrieval system
that allows students to pre-populate the online application
with data from the Internal Revenue Service.
CBO estimates that implementing the additional
administrative requirements in H.R. 5528 would cost $3 million
over the 2017-2021 period; such spending would be subject to
the availability of appropriated funds.
Enacting the bill could increase applications for federal
student aid, which would increase discretionary spending for
Pell grants and direct spending for student loans and Pell
grants; therefore, pay-as-you-go procedures apply. However, CBO
estimates that those effects would be insignificant for each
year and over the 2017-2026 period. Enacting H.R. 5528 would
not affect revenues.
CBO estimates that enacting H.R. 5528 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 5528 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Justin Humphrey.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 5528.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
* * * * * * *
Subpart 1--Federal Pell Grants
SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; APPLICATIONS.
(a) Program Authority and Method of Distribution.--(1) For
each fiscal year through fiscal year 2017, the Secretary shall
pay to each eligible institution such sums as may be necessary
to pay to each eligible student (defined in accordance with
section 484) for each academic year during which that student
is in attendance at an institution of higher education, as an
undergraduate, a Federal Pell Grant in the amount for which
that student is eligible, as determined pursuant to subsection
(b). Not less than 85 percent of such sums shall be advanced to
eligible institutions prior to the start of each payment period
and shall be based upon an amount requested by the institution
as needed to pay eligible students until such time as the
Secretary determines and publishes in the Federal Register with
an opportunity for comment, an alternative payment system that
provides payments to institutions in an accurate and timely
manner, except that this sentence shall not be construed to
limit the authority of the Secretary to place an institution on
a reimbursement system of payment.
(2) Nothing in this section shall be interpreted to prohibit
the Secretary from paying directly to students, in advance of
the beginning of the academic term, an amount for which they
are eligible, in cases where the eligible institution elects
not to participate in the disbursement system required by
paragraph (1).
(3) Grants made under this subpart shall be known as
``Federal Pell Grants''.
(b) Purpose and Amount of Grants.--(1) The purpose of this
subpart is to provide a Federal Pell Grant that in combination
with reasonable family and student contribution and
supplemented by the programs authorized under subparts 3 and 4
of this part, will meet at least 75 percent of a student's cost
of attendance (as defined in section 472), unless the
institution determines that a greater amount of assistance
would better serve the purposes of this section.
(2)
(A) The amount of the Federal Pell Grant for a
student eligible under this part shall be--
(i) the maximum Federal Pell Grant, as
specified in the last enacted appropriation Act
applicable to that award year, plus
(ii) the amount of the increase calculated
under paragraph (7)(B) for that year, less
(iii) an amount equal to the amount
determined to be the expected family
contribution with respect to that student for
that year.
(B) In any case where a student attends an institution of
higher education on less than a full-time basis (including a
student who attends an institution of higher education on less
than a half-time basis) during any academic year, the amount of
the Federal Pell Grant to which that student is entitled shall
be reduced in proportion to the degree to which that student is
not so attending on a full-time basis, in accordance with a
schedule of reductions established by the Secretary for the
purposes of this division, computed in accordance with this
subpart. Such schedule of reductions shall be established by
regulation and published in the Federal Register in accordance
with section 482 of this Act.
(3) No Federal Pell Grant under this subpart shall exceed the
difference between the expected family contribution for a
student and the cost of attendance (as defined in section 472)
at the institution at which that student is in attendance. If,
with respect to any student, it is determined that the amount
of a Federal Pell Grant plus the amount of the expected family
contribution for that student exceeds the cost of attendance
for that year, the amount of the Federal Pell Grant shall be
reduced until the combination of expected family contribution
and the amount of the Federal Pell Grant does not exceed the
cost of attendance at such institution.
(4) No Federal Pell Grant shall be awarded to a student under
this subpart if the amount of that grant for that student as
determined under this subsection for any academic year is less
than ten percent of the maximum amount of a Federal Pell Grant
award determined under paragraph (2)(A) for such academic year.
(5) Notwithstanding any other provision of this subpart, the
Secretary shall allow the amount of the Federal Pell Grant to
be exceeded for students participating in a program of study
abroad approved for credit by the institution at which the
student is enrolled when the reasonable costs of such program
are greater than the cost of attendance at the student's home
institution, except that the amount of such Federal Pell Grant
in any fiscal year shall not exceed the maximum amount of a
Federal Pell Grant award determined under paragraph (2)(A), for
which a student is eligible during such award year. If the
preceding sentence applies, the financial aid administrator at
the home institution may use the cost of the study abroad
program, rather than the home institution's cost, to determine
the cost of attendance of the student.
(6) No Federal Pell Grant shall be awarded under this subpart
to any individual who is incarcerated in any Federal or State
penal institution or who is subject to an involuntary civil
commitment upon completion of a period of incarceration for a
forcible or nonforcible sexual offense (as determined in
accordance with the Federal Bureau of Investigation's Uniform
Crime Reporting Program).
(7) Additional funds.--
(A) In general.--There are authorized to be
appropriated, and there are appropriated (in
addition to any other amounts appropriated to
carry out this section and out of any money in
the Treasury not otherwise appropriated) the
following amounts--
(i) $2,030,000,000 for fiscal year
2008;
(ii) $2,090,000,000 for fiscal year
2009;
(iii) to carry out subparagraph (B)
of this paragraph, such sums as may be
necessary for fiscal year 2010 and each
subsequent fiscal year to provide the
amount of increase of the maximum
Federal Pell Grant required by clauses
(ii) and (iii) of subparagraph (B); and
(iv) to carry out this section--
(I) $13,500,000,000 for
fiscal year 2011;
(II) $13,795,000,000 for
fiscal year 2012;
(III) $7,587,000,000 for
fiscal year 2013;
(IV) $588,000,000 for fiscal
year 2014;
(V) $0 for fiscal year 2015;
(VI) $0 for fiscal year 2016;
(VII) $1,574,000,000 for
fiscal year 2017;
(VIII) $1,382,000,000 for
fiscal year 2018;
(IX) $1,409,000,000 for
fiscal year 2019;
(X) $1,430,000,000 for fiscal
year 2020; and
(XI) $1,145,000,000 for
fiscal year 2021 and each
succeeding fiscal year.
(B) Increase in federal pell grants.--The
amounts made available pursuant to clauses (i)
through (iii) of subparagraph (A) of this
paragraph shall be used to increase the amount
of the maximum Federal Pell Grant for which a
student shall be eligible during an award year,
as specified in the last enacted appropriation
Act applicable to that award year, by--
(i) $490 for each of the award years
2008-2009 and 2009-2010;
(ii) $690 for each of the award years
2010-2011, 2011-2012, and 2012-2013;
and
(iii) the amount determined under
subparagraph (C) for each succeeding
award year.
(C) Adjustment amounts.--
(i) Award year 2013-2014.--For award
year 2013-2014, the amount determined
under this subparagraph for purposes of
subparagraph (B)(iii) shall be equal
to--
(I) $5,550 or the total
maximum Federal Pell Grant for
the preceding award year (as
determined under clause
(iv)(II)), whichever is
greater, increased by a
percentage equal to the annual
adjustment percentage for award
year 2013-2014, reduced by
(II) $4,860 or the maximum
Federal Pell Grant for which a
student was eligible for the
preceding award year, as
specified in the last enacted
appropriation Act applicable to
that year, whichever is
greater; and
(III) rounded to the nearest
$5.
(ii) Award years 2014-2015 through
2017-2018.--For each of the award years
2014-2015 through 2017-2018, the amount
determined under this subparagraph for
purposes of subparagraph (B)(iii) shall
be equal to--
(I) the total maximum Federal
Pell Grant for the preceding
award year (as determined under
clause (iv)(II)), increased by
a percentage equal to the
annual adjustment percentage
for the award year for which
the amount under this
subparagraph is being
determined, reduced by
(II) $4,860 or the maximum
Federal Pell Grant for which a
student was eligible for the
preceding award year, as
specified in the last enacted
appropriation Act applicable to
that year, whichever is
greater; and
(III) rounded to the nearest
$5.
(iii) Subsequent award years.--For
award year 2018-2019 and each
subsequent award year, the amount
determined under this subparagraph for
purposes of subparagraph (B)(iii) shall
be equal to the amount determined under
clause (ii) for award year 2017-2018.
(iv) Definitions.--For purposes of
this subparagraph--
(I) the term ``annual
adjustment percentage'' as
applied to an award year, is
equal to the estimated
percentage change in the
Consumer Price Index (as
determined by the Secretary,
using the definition in section
478(f)) for the most recent
[calendar year] fiscal year
ending prior to the beginning
of that award year; and
(II) the term ``total maximum
Federal Pell Grant'' as applied
to a preceding award year, is
equal to the sum of--
(aa) the maximum
Federal Pell Grant for
which a student is
eligible during an
award year, as
specified in the last
enacted appropriation
Act applicable to that
preceding award year;
and
(bb) the amount of
the increase in the
maximum Federal Pell
Grant required by this
paragraph for that
preceding award year.
(D) Program requirements and operations
otherwise unaffected.--Except as provided in
subparagraphs (B) and (C), nothing in this
paragraph shall be construed to alter the
requirements and operations of the Federal Pell
Grant Program as authorized under this section,
or authorize the imposition of additional
requirements or operations for the
determination and allocation of Federal Pell
Grants under this section.
(E) Ratable increases and decreases.--The
amounts specified in subparagraph (B) shall be
ratably increased or decreased to the extent
that funds available under subparagraph (A)
exceed or are less than (respectively) the
amount required to provide the amounts
specified in subparagraph (B).
(F) Availability of funds.--The amounts made
available by subparagraph (A) for any fiscal
year shall be available beginning on October 1
of that fiscal year, and shall remain available
through September 30 of the succeeding fiscal
year.
(c) Period of Eligibility for Grants.--(1) The period during
which a student may receive Federal Pell Grants shall be the
period required for the completion of the first undergraduate
baccalaureate course of study being pursued by that student at
the institution at which the student is in attendance except
that any period during which the student is enrolled in a
noncredit or remedial course of study as defined in paragraph
(2) shall not be counted for the purpose of this paragraph.
(2) Nothing in this section shall exclude from eligibility
courses of study which are noncredit or remedial in nature
(including courses in English language instruction) which are
determined by the institution to be necessary to help the
student be prepared for the pursuit of a first undergraduate
baccalaureate degree or certificate or, in the case of courses
in English language instruction, to be necessary to enable the
student to utilize already existing knowledge, training, or
skills. Nothing in this section shall exclude from eligibility
programs of study abroad that are approved for credit by the
home institution at which the student is enrolled.
(3) No student is entitled to receive Pell Grant payments
concurrently from more than one institution or from the
Secretary and an institution.
(4) Notwithstanding paragraph (1), the Secretary may allow,
on a case-by-case basis, a student to receive a basic grant if
the student--
(A) is carrying at least one-half the normal full-
time work load for the course of study the student is
pursuing, as determined by the institution of higher
education; and
(B) is enrolled or accepted for enrollment in a
postbaccalaureate program that does not lead to a
graduate degree, and in courses required by a State in
order for the student to receive a professional
certification or licensing credential that is required
for employment as a teacher in an elementary school or
secondary school in that State,
except that this paragraph shall not apply to a student who is
enrolled in an institution of higher education that offers a
baccalaureate degree in education.
(5) The period during which a student may receive Federal
Pell Grants shall not exceed 12 semesters, or the equivalent of
12 semesters, as determined by the Secretary by regulation.
Such regulations shall provide, with respect to a student who
received a Federal Pell Grant for a term but was enrolled at a
fraction of full-time, that only that same fraction of such
semester or equivalent shall count towards such duration
limits.
(d) Applications for Grants.--(1) The Secretary shall from
time to time set dates by which students shall file
applications for Federal Pell Grants under this subpart.
(2) Each student desiring a Federal Pell Grant for any year
shall file an application therefor containing such information
and assurances as the Secretary may deem necessary to enable
the Secretary to carry out the functions and responsibilities
of this subpart.
(e) Distribution of Grants to Students.--Payments under this
section shall be made in accordance with regulations
promulgated by the Secretary for such purpose, in such manner
as will best accomplish the purpose of this section. Any
disbursement allowed to be made by crediting the student's
account shall be limited to tuition and fees and, in the case
of institutionally owned housing, room and board. The student
may elect to have the institution provide other such goods and
services by crediting the student's account.
(f) Calculation of Eligibility.--(1) Each contractor
processing applications for awards under this subpart
(including a central processor, if any, designated by the
Secretary) shall, in a timely manner, furnish to the student
financial aid administrator (at each institution of higher
education which a student awarded a Federal Pell Grant under
this subpart is attending), as a part of its regular output
document, the expected family contribution for each such
student. Each such student financial aid administrator shall--
(A) examine and assess the data used to calculate the
expected family contribution of the student furnished
pursuant to this subsection;
(B) recalculate the expected family contribution of
the student if there has been a change in circumstances
of the student or in the data submitted;
(C) make the award to the student in the correct
amount; and
(D) after making such award report the corrected data
to such contractor and to a central processor (if any)
designated by the Secretary for a confirmation of the
correct computation of amount of the expected family
contribution for each such student.
(2) Whenever a student receives an award under this subpart
that, due to recalculation errors by the institution of higher
education, is in excess of the amount which the student is
entitled to receive under this subpart, such institution of
higher education shall pay to the Secretary the amount of such
excess unless such excess can be resolved in a subsequent
disbursement to the institution.
(3) Each contractor processing applications for awards under
this subpart shall for each academic year after academic year
1986-1987 prepare and submit a report to the Secretary on the
correctness of the computations of amount of the expected
family contribution, and on the accuracy of the questions on
the application form under this subpart for the previous
academic year for which the contractor is responsible. The
Secretary shall transmit the report, together with the comments
and recommendations of the Secretary, to the Committee on
Appropriations of the Senate, the Committee on Appropriations
of the House of Representatives, and the authorizing
committees.
(g) Insufficient Appropriations.--If, for any fiscal year,
the funds appropriated for payments under this subpart are
insufficient to satisfy fully all entitlements, as calculated
under subsection (b) (but at the maximum grant level specified
in such appropriation), the Secretary shall promptly transmit a
notice of such insufficiency to each House of the Congress, and
identify in such notice the additional amount that would be
required to be appropriated to satisfy fully all entitlements
(as so calculated at such maximum grant level).
(h) Use of Excess Funds.--(1) If, at the end of a fiscal
year, the funds available for making payments under this
subpart exceed the amount necessary to make the payments
required under this subpart to eligible students by 15 percent
or less, then all of the excess funds shall remain available
for making payments under this subpart during the next
succeeding fiscal year.
(2) If, at the end of a fiscal year, the funds available for
making payments under this subpart exceed the amount necessary
to make the payments required under this subpart to eligible
students by more than 15 percent, then all of such funds shall
remain available for making such payments but payments may be
made under this paragraph only with respect to entitlements for
that fiscal year.
(i) Treatment of Institutions and Students Under Other
Laws.--Any institution of higher education which enters into an
agreement with the Secretary to disburse to students attending
that institution the amounts those students are eligible to
receive under this subpart shall not be deemed, by virtue of
such agreement, a contractor maintaining a system of records to
accomplish a function of the Secretary. Recipients of Pell
Grants shall not be considered to be individual grantees for
purposes of subtitle D of title V of Public Law 100-690.
(j) Institutional Ineligibility Based on Default Rates.--
(1) In general.--No institution of higher education
shall be an eligible institution for purposes of this
subpart if such institution of higher education is
ineligible to participate in a loan program under part
B or D as a result of a final default rate
determination made by the Secretary under part B or D
after the final publication of cohort default rates for
fiscal year 1996 or a succeeding fiscal year.
(2) Sanctions subject to appeal opportunity.--No
institution may be subject to the terms of this
subsection unless the institution has had the
opportunity to appeal the institution's default rate
determination under regulations issued by the Secretary
for the loan program authorized under part B or D, as
applicable. This subsection shall not apply to an
institution that was not participating in the loan
program authorized under part B or D on the date of
enactment of the Higher Education Amendments of 1998,
unless the institution subsequently participates in the
loan programs.
* * * * * * *
PART F--NEED ANALYSIS
* * * * * * *
SEC. 480. DEFINITIONS.
As used in this part:
(a) Total Income.--(1)(A) Except as provided in subparagraph
(B) and paragraph (2), the term ``total income'' is equal to
adjusted gross income plus untaxed income and benefits for the
preceding tax year minus excludable income (as defined in
subsection (e)).
(B) Notwithstanding section 478(a), the Secretary [may] shall
provide for the use of data from the second preceding tax year
when and to the extent necessary to carry out the
simplification of applications (including simplification for a
subset of applications) used for the estimation and
determination of financial aid eligibility. Such simplification
[may] shall include the sharing of data between the Internal
Revenue Service and the Department, pursuant to the consent of
the taxpayer.
(2) No portion of any student financial assistance received
from any program by an individual, no portion of veterans'
education benefits received by an individual, no portion of a
national service educational award or post-service benefit
received by an individual under title I of the National and
Community Service Act of 1990 (42 U.S.C. 12511 et seq.), no
portion of any tax credit taken under section 25A of the
Internal Revenue Code of 1986, and no distribution from any
qualified education benefit described in subsection (f)(3) that
is not subject to Federal income tax, shall be included as
income or assets in the computation of expected family
contribution for any program funded in whole or in part under
this Act.
(b) Untaxed Income and Benefits.--
(1) The term ``untaxed income and benefits'' means--
(A) child support received;
(B) workman's compensation;
(C) veteran's benefits such as death pension,
dependency, and indemnity compensation, but
excluding veterans' education benefits as
defined in subsection (c);
(D) interest on tax-free bonds;
(E) housing, food, and other allowances
(excluding rent subsidies for low-income
housing) for military, clergy, and others
(including cash payments and cash value of
benefits), except that the value of on-base
military housing or the value of basic
allowance for housing determined under section
403(b) of title 37, United States Code,
received by the parents, in the case of a
dependent student, or the student or student's
spouse, in the case of an independent student,
shall be excluded;
(F) cash support or any money paid on the
student`s behalf, except, for dependent
students, funds provided by the student's
parents;
(G) untaxed portion of pensions;
(H) payments to individual retirement
accounts and Keogh accounts excluded from
income for Federal income tax purposes; and
(I) any other untaxed income and benefits,
such as Black Lung Benefits, Refugee
Assistance, or railroad retirement benefits, or
benefits received through participation in
employment and training activities under title
I of the Workforce Investment Act of 1998 (29
U.S.C. 2801 et seq.).
(2) The term ``untaxed income and benefits'' shall
not include--
(A) the amount of additional child tax credit
claimed for Federal income tax purposes;
(B) welfare benefits, including assistance
under a State program funded under part A of
title IV of the Social Security Act and aid to
dependent children;
(C) the amount of earned income credit
claimed for Federal income tax purposes;
(D) the amount of credit for Federal tax on
special fuels claimed for Federal income tax
purposes;
(E) the amount of foreign income excluded for
purposes of Federal income taxes; or
(F) untaxed social security benefits.
(c) Veteran and Veterans' Education Benefits.--(1) The term
``veteran'' means any individual who--
(A) has engaged in the active duty in the United
States Army, Navy, Air Force, Marines, or Coast Guard;
and
(B) was released under a condition other than
dishonorable.
(2) The term ``veterans' education benefits'' means veterans'
benefits the student will receive during the award year,
including but not limited to benefits under the following
provisions of law:
(A) Chapter 103 of title 10, United States Code
(Senior Reserve Officers' Training Corps).
(B) Chapter 106A of title 10, United States Code
(Educational Assistance for Persons Enlisting for
Active Duty).
(C) Chapter 1606 of title 10, United States Code
(Selected Reserve Educational Assistance Program).
(D) Chapter 1607 of title 10, United States Code
(Educational Assistance Program for Reserve Component
Members Supporting Contingency Operations and Certain
Other Operations).
(E) Chapter 30 of title 38, United States Code (All-
Volunteer Force Educational Assistance Program, also
known as the ``Montgomery GI Bill--active duty'').
(F) Chapter 31 of title 38, United States Code
(Training and Rehabilitation for Veterans with Service-
Connected Disabilities).
(G) Chapter 32 of title 38, United States Code (Post-
Vietnam Era Veterans' Educational Assistance Program).
(H) Chapter 33 of title 38, United States Code (Post-
9/11 Educational Assistance).
(I) Chapter 35 of title 38, United States Code
(Survivors' and Dependents' Educational Assistance
Program).
(J) Section 903 of the Department of Defense
Authorization Act, 1981 (10 U.S.C. 2141 note)
(Educational Assistance Pilot Program).
(K) Section 156(b) of the ``Joint Resolution making
further continuing appropriations and providing for
productive employment for the fiscal year 1983, and for
other purposes'' (42 U.S.C. 402 note) (Restored
Entitlement Program for Survivors, also known as
``Quayle benefits'').
(L) The provisions of chapter 3 of title 37, United
States Code, related to subsistence allowances for
members of the Reserve Officers Training Corps.
(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 an orphan, in foster care,
or a ward of the court at any time when the
individual was 13 years of age or older;
(C) is, or was immediately prior to attaining
the age of majority, an emancipated minor or in
legal guardianship as determined by a court of
competent jurisdiction in the individual's
State of legal residence;
(D) 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 for other than training purposes;
(E) is a graduate or professional student;
(F) is a married individual;
(G) has legal dependents other than a spouse;
(H) has been verified during the school year
in which the application is submitted as either
an unaccompanied youth who is a homeless child
or youth (as such terms are defined in section
725 of the McKinney-Vento Homeless Assistance
Act), or as unaccompanied, at risk of
homelessness, and self-supporting, by--
(i) a local educational agency
homeless liaison, designated pursuant
to section 722(g)(1)(J)(ii) of the
McKinney-Vento Homeless Assistance Act;
(ii) the director of a program funded
under the Runaway and Homeless Youth
Act or a designee of the director;
(iii) the director of a program
funded under subtitle B of title IV of
the McKinney-Vento Homeless Assistance
Act (relating to emergency shelter
grants) or a designee of the director;
or
(iv) a financial aid administrator;
or
(I) is a student for whom a financial aid
administrator makes a documented determination
of independence by reason of other unusual
circumstances.
(2) Simplifying the dependency override process.--A
financial aid administrator may make a determination of
independence under paragraph (1)(I) based upon a
documented determination of independence that was
previously made by another financial aid administrator
under such paragraph in the same award year.
(e) Excludable Income.--The term ``excludable income''
means--
(1) any student financial assistance awarded based on
need as determined in accordance with the provisions of
this part, including any income earned from work under
part C of this title;
(2) any income earned from work under a cooperative
education program offered by an institution of higher
education;
(3) any living allowance received by a participant in
a program established under the National and Community
Service Act of 1990;
(4) child support payments made by the student or
parent;
(5) payments made and services provided under part E
of title IV of the Social Security Act; and
(6) special combat pay.
(f) Assets.--(1) The term ``assets'' means cash on hand,
including the amount in checking and savings accounts, time
deposits, money market funds, trusts, stocks, bonds, other
securities, mutual funds, tax shelters, qualified education
benefits (except as provided in paragraph (3)), and the net
value of real estate, income producing property, and business
and farm assets.
(2) With respect to determinations of need under this title,
other than for subpart 4 of part A, the term ``assets'' shall
not include the net value of--
(A) the family's principal place of residence;
(B) a family farm on which the family resides; or
(C) a small business with not more than 100 full-time
or full-time equivalent employees (or any part of such
a small business) that is owned and controlled by the
family.
(3) A qualified education benefit shall be considered
an asset of--
(A) the student if the student is an
independent student; or
(B) the parent if the student is a dependent
student, regardless of whether the owner of the
account is the student or the parent.
(4) In determining the value of assets in a determination of
need under this title (other than for subpart 4 of part A), the
value of a qualified education benefit shall be--
(A) the refund value of any tuition credits or
certificates purchased under a qualified education
benefit; and
(B) in the case of a program in which contributions
are made to an account that is established for the
purpose of meeting the qualified higher education
expenses of the designated beneficiary of the account,
the current balance of such account.
(5) In this subsection:
(A) The term ``qualified education benefit'' means--
(i) a qualified tuition program (as defined
in section 529(b)(1)(A) of the Internal Revenue
Code of 1986) or other prepaid tuition plan
offered by a State; and
(ii) a Coverdell education savings account
(as defined in section 530(b)(1) of the
Internal Revenue Code of 1986).
(B) The term ``qualified higher education expenses''
has the meaning given the term in section 529(e) of the
Internal Revenue Code of 1986.
(g) Net Assets.--The term ``net assets'' means the current
market value at the time of application of the assets (as
defined in subsection (f)), minus the outstanding liabilities
or indebtedness against the assets.
(h) Treatment of Income Taxes Paid to Other Jurisdictions.--
(1) The tax on income paid to the Governments of the
Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin
Islands, or the Commonwealth of the Northern Mariana Islands,
the Republic of the Marshall Islands, the Federated States of
Micronesia, or Palau under the laws applicable to those
jurisdictions, or the comparable tax paid to the central
government of a foreign country, shall be treated as Federal
income taxes.
(2) References in this part to the Internal Revenue Code of
1986, Federal income tax forms, and the Internal Revenue
Service shall, for purposes of the tax described in paragraph
(1), be treated as references to the corresponding laws, tax
forms, and tax collection agencies of those jurisdictions,
respectively, subject to such adjustments as the Secretary may
provide by regulation.
(i) Current Balance.--The term ``current balance of checking
and savings accounts'' does not include any funds over which an
individual is barred from exercising discretion and control
because of the actions of any State in declaring a bank
emergency due to the insolvency of a private deposit insurance
fund.
(j) Other Financial Assistance.--(1) For purposes of
determining a student's eligibility for funds under this title,
estimated financial assistance not received under this title
shall include all scholarships, grants, loans, or other
assistance known to the institution at the time the
determination of the student's need is made, including national
service educational awards or post-service benefits under title
I of the National and Community Service Act of 1990 (42 U.S.C.
12511 et seq.), but excluding veterans' education benefits as
defined in subsection (c).
(2) Notwithstanding paragraph (1), a tax credit taken under
section 25A of the Internal Revenue Code of 1986, or a
distribution that is not includable in gross income under
section 529 of such Code, under another prepaid tuition plan
offered by a State, or under a Coverdell education savings
account under section 530 of such Code, shall not be treated as
estimated financial assistance for purposes of section 471(3).
(3) Notwithstanding paragraph (1) and section 472, assistance
not received under this title may be excluded from both
estimated financial assistance and cost of attendance, if that
assistance is provided by a State and is designated by such
State to offset a specific component of the cost of attendance.
If that assistance is excluded from either estimated financial
assistance or cost of attendance, it shall be excluded from
both.
(4) Notwithstanding paragraph (1), special combat pay
shall not be treated as estimated financial assistance
for purposes of section 471(3).
(k) Dependents.--(1) Except as otherwise provided, the term
``dependent of the parent'' means the student, dependent
children of the student's parents, including those children who
are deemed to be dependent students when applying for aid under
this title, and other persons who live with and receive more
than one-half of their support from the parent and will
continue to receive more than half of their support from the
parent during the award year.
(2) Except as otherwise provided, the term ``dependent of the
student'' means the student's dependent children and other
persons (except the student's spouse) who live with and receive
more than one-half of their support from the student and will
continue to receive more than half of their support from the
student during the award year.
(l) Family Size.--(1) In determining family size in the case
of a dependent student--
(A) if the parents are not divorced or separated,
family members include the student's parents, and the
dependents of the student's parents including the
student;
(B) if the parents are divorced or separated, family
members include the parent whose income is included in
computing available income and that parent's
dependents, including the student; and
(C) if the parents are divorced and the parent whose
income is so included is remarried, or if the parent
was a widow or widower who has remarried, family
members also include, in addition to those individuals
referred to in subparagraph (B), the new spouse and any
dependents of the new spouse if that spouse's income is
included in determining the parents' adjusted available
income.
(2) In determining family size in the case of an independent
student--
(A) family members include the student, the student's
spouse, and the dependents of the student; and
(B) if the student is divorced or separated, family
members do not include the spouse (or ex-spouse), but
do include the student and the student's dependents.
(m) Business Assets.--The term ``business assets'' means
property that is used in the operation of a trade or business,
including real estate, inventories, buildings, machinery, and
other equipment, patents, franchise rights, and copyrights.
(n) Special Combat Pay.--The term ``special combat pay''
means pay received by a member of the Armed Forces because of
exposure to a hazardous situation.
Part G--General Provisions Relating to Student Assistance Programs
* * * * * * *
SEC. 483. FORMS AND REGULATIONS.
(a) Common Financial Aid Form Development and Processing.--
(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). The forms shall be made available to
applicants in both paper and electronic formats and
shall be referred to as the ``Free Application for
Federal Student Aid'' or the ``FAFSA''. The Secretary
shall work to make the FAFSA consumer-friendly and to
make questions on the FAFSA easy for students and
families to read and understand, and shall ensure that
the FAFSA is available in formats accessible to
individuals with disabilities.
(2) Paper format.--
(A) In general.--The Secretary shall develop,
make available, and process--
(i) a paper version of EZ FAFSA, as
described in subparagraph (B); and
(ii) a paper version of the other
forms described in this subsection, in
accordance with subparagraph (C), for
any applicant who does not meet the
requirements of or does not wish to use
the process described in subparagraph
(B).
(B) EZ fafsa.--
(i) In general.--The Secretary shall
develop and use, after appropriate
field testing, a simplified paper form,
to be known as the EZ FAFSA, to be used
for applicants meeting the requirements
of subsection (b) or (c) of section
479.
(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 subsection (b) or
(c) of section 479.
(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 (5), except that the
Secretary shall not include a State's
data if that State does not permit the
State's resident applicants to use the
EZ FAFSA for State assistance.
(iv) 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 (10).
(C) Promoting the use of electronic fafsa.--
(i) In general.--The Secretary shall
make all efforts to encourage all
applicants to utilize the electronic
version of the forms described in
paragraph (3).
(ii) 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, accessible, and
downloadable to students on the same
website used to provide students with
the electronic version of the forms
described in paragraph (3).
(iii) Requests for printed copy.--The
Secretary shall provide a printed copy
of the full paper version of FAFSA upon
request.
(iv) Reporting requirement.--The
Secretary shall maintain data, and
periodically report to Congress, on the
impact of the digital divide on
students completing applications for
aid under this title. The Secretary
shall report on the steps taken to
eliminate the digital divide and reduce
production of the paper form described
in subparagraph (A). The Secretary's
report shall specifically address the
impact of the digital divide on the
following student populations:
(I) Independent students.
(II) Traditionally
underrepresented students.
(III) Dependent students.
(3) Electronic format.--
(A) In general.--The Secretary shall produce,
distribute, and process forms in electronic
format to meet the requirements of paragraph
(1). The Secretary shall develop an electronic
version of the forms for applicants who do not
meet the requirements of subsection (b) or (c)
of section 479.
(B) Simplified applications: fafsa on the
web.--
(i) In general.--The Secretary shall
develop and use a simplified electronic
version of the form to be used by
applicants meeting the requirements
under subsection (b) or (c) of section
479.
(ii) Reduced data requirements.--The
simplified electronic version of the
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) 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 thereof, or such
other entities as the Secretary may
designate.
(C) State data.--The Secretary shall include
on the electronic version of the forms such
items as may be necessary to determine
eligibility for State financial assistance, as
provided under paragraph (5), except that the
Secretary shall not require an applicant to
enter data pursuant to this subparagraph that
are required by any State other than the
applicant's State of residence.
(D) Availability and processing.--The data
collected by means of the simplified electronic
version of the forms shall be available to
institutions of higher education, guaranty
agencies, and States in accordance with
paragraph (10).
(E) 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.
(F) Signature.--Notwithstanding any other
provision of this Act, the Secretary may
continue to permit an electronic version of the
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 (G).
(G) Personal identification numbers
authorized.--The Secretary may continue to
assign to an applicant a personal
identification number--
(i) to enable the applicant to use
such number as a signature for purposes
of completing an electronic version of
a form developed under this paragraph;
and
(ii) for any purpose determined by
the Secretary to enable the Secretary
to carry out this title.
(H) Personal identification number
improvement.--The Secretary shall continue to
work with the Commissioner of Social Security
to minimize the time required for an applicant
to obtain a personal identification number when
applying for aid under this title through an
electronic version of a form developed under
this paragraph.
(I) Format.--Not later than 180 days after
the date of the enactment of the Simplifying
the Application for Student Aid Act, the
Secretary shall make the electronic version of
the forms under this paragraph available
through a technology tool that can be used on
mobile devices. Such technology tool shall, at
minimum, enable applicants to--
(i) save data; and
(ii) submit their FAFSA to the
Secretary through such tool.
(J) Consumer testing.--In developing and
maintaining the electronic version of the forms
under this paragraph and the technology tool
for mobile devices under subparagraph (I), the
Secretary shall conduct consumer testing with
appropriate persons to ensure the forms and
technology tool are designed to be easily
usable and understandable by students and
families. Such consumer testing shall include--
(i) current and prospective college
students, family members of such
students, and other individuals with
expertise in student financial
assistance application processes;
(ii) dependent students and
independent students meeting the
requirements under subsection (b) or
(c) of section 479; and
(iii) dependent students and
independent students who do not meet
the requirements under subsection (b)
or (c) of section 479.
(4) Streamlining.--
(A) Streamlined reapplication process.--
(i) In general.--The Secretary shall
continue to streamline reapplication
forms and processes for an applicant
who applies for financial assistance
under this title in the next succeeding
academic year subsequent to an academic
year for which such applicant applied
for financial assistance under this
title.
(ii) Updating of data elements.--The
Secretary shall determine, in
cooperation with States, institutions
of higher education, agencies, and
organizations involved in student
financial assistance, the data elements
that may be transferred from the
previous academic year's application
and those data elements that shall be
updated.
(iii) 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.
(iv) 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 data that are necessary to
determine eligibility under such
section.
(B) Reduction of data elements.--
(i) Reduction encouraged.--Of the
number of data elements on the FAFSA
used for the 2009-2010 award year, the
Secretary, in cooperation with
representatives of agencies and
organizations involved in student
financial assistance and consistent
with efforts under subsection (c),
shall continue to reduce the number of
such data elements required to be
entered by all applicants, with the
goal of reducing such number by 50
percent.
(ii) Report.--The Secretary shall
submit a report on the process of this
reduction to each of the authorizing
committees by June 30, 2011.
(5) State requirements.--
(A) In general.--Except as provided in
paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii),
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. The number of such
data items shall not be less than the number
included on the form for the 2008-2009 award
year unless a State notifies the Secretary that
the State no longer requires those data items
for the distribution of State need-based aid.
(B) Annual review.--The Secretary shall
conduct an annual review to determine--
(i) which data items each State
requires to award need-based State aid;
and
(ii) if the State will permit an
applicant to file a form described in
paragraph (2)(B) or (3)(B).
(C) Federal register notice.--Beginning with
the forms developed under paragraphs (2)(B) and
(3)(B) for the award year 2010-2011, the
Secretary shall publish on an annual basis a
notice in the Federal Register requiring State
agencies to inform the Secretary--
(i) if the State agency is unable to
permit applicants to utilize the
simplified forms described in
paragraphs (2)(B) and (3)(B); and
(ii) of the State-specific
nonfinancial data that the State agency
requires for delivery of State need-
based financial aid.
(D) Use of simplified forms encouraged.--The
Secretary shall encourage States to take such
steps as are necessary to encourage the use of
simplified forms under this subsection,
including those forms described in paragraphs
(2)(B) and (3)(B), for applicants who meet the
requirements of subsection (b) or (c) of
section 479.
(E) Consequences if state does not accept
simplified forms.--If 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
financial aid, the Secretary may determine that
State-specific questions for such State will
not be included on a form described in
paragraph (2)(B) or (3)(B). If the Secretary
makes such determination, the Secretary shall
advise the State of the Secretary's
determination.
(F) Lack of state response to request for
information.--If a State does not respond to
the Secretary's request for information under
subparagraph (B), the Secretary shall--
(i) permit residents of that State to
complete simplified forms under
paragraphs (2)(B) and (3)(B); and
(ii) not require any resident of such
State to complete any data items
previously required by that State under
this section.
(G) Restriction.--The Secretary shall, to the
extent practicable, not require applicants to
complete any financial or nonfinancial data
items that are not required--
(i) by the applicant's State; or
(ii) by the Secretary.
(6) Charges to students and parents for use of forms
prohibited.--The need and eligibility of a student for
financial assistance under parts A through E (other
than under subpart 4 of part A) may be determined only
by using a form developed by the Secretary under this
subsection. Such forms 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. No data collected on a
form for which a fee is charged shall be used to
complete the form prescribed under this section, except
that a Federal or State income tax form prepared by a
paid income tax preparer or preparer service for the
primary purpose of filing a Federal or State income tax
return may be used to complete the form prescribed
under this section.
(7) Restrictions on use of pin.--No person,
commercial entity, or other entity may request, obtain,
or utilize an applicant's personal identification
number assigned under paragraph (3)(G) for purposes of
submitting a form developed under this subsection on an
applicant's behalf.
(8) Application processing cycle.--The Secretary
shall enable students to submit forms developed 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.
(9) Early estimates.--The Secretary shall continue
to--
(A) permit applicants to enter data in such
forms as described in this subsection in the
years prior to enrollment in order to obtain a
non-binding estimate of the applicant's family
contribution (as defined in section 473);
(B) permit applicants to update information
submitted on forms described in this
subsection, without needing to re-enter
previously submitted information;
(C) develop a means to inform applicants, in
the years prior to enrollment, of student aid
options for individuals in similar financial
situations;
(D) develop a means to provide a clear and
conspicuous notice that the applicant's
expected family contribution is subject to
change and may not reflect the final expected
family contribution used to determine Federal
student financial aid award amounts under this
title; and
(E) consult with representatives of States,
institutions of higher education, and other
individuals with experience or expertise in
student financial assistance application
processes in making updates to forms used to
provide early estimates under this paragraph.
(10) Distribution of data.--Institutions of higher
education, guaranty agencies, and States shall receive,
without charge, the data collected by the Secretary
using a form developed under this subsection for the
purposes of processing loan applications and
determining need and eligibility for institutional and
State financial aid awards. Entities designated by
institutions of higher education, guaranty agencies, or
States to receive such data shall be subject to all the
requirements of this section, unless such requirements
are waived by the Secretary.
(11) Third party servicers and private software
providers.--To the extent practicable and in a timely
manner, the Secretary shall provide, to private
organizations and consortia that develop software used
by institutions of higher education for the
administration of funds under this title, all the
necessary specifications that the organizations and
consortia must meet for the software the organizations
and consortia develop, produce, and distribute
(including any diskette, modem, or network
communications) to be so used. The specifications shall
contain record layouts for required data. The Secretary
shall develop in advance of each processing cycle an
annual schedule for providing such specifications. The
Secretary, to the extent practicable, shall use
multiple means of providing such specifications,
including conferences and other meetings, outreach, and
technical support mechanisms (such as training and
printed reference materials). The Secretary shall, from
time to time, solicit from such organizations and
consortia means of improving the support provided by
the Secretary.
(12) Parent's social security number and birth
date.--The Secretary is authorized to include space on
the forms developed under this subsection for the
social security number and birth date of parents of
dependent students seeking financial assistance under
this title.
(b) Information to Committees of Congress.--Copies of all
rules, regulations, guidelines, instructions, and application
forms published or promulgated pursuant to this title shall be
provided to the authorizing committees at least 45 days prior
to their effective date.
(c) Toll-Free Information.--The Secretary shall contract for,
or establish, and publicize a toll-free telephone service to
provide 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 other appropriate provider of
technical assistance and information on postsecondary
educational services for individuals with disabilities,
including the National Technical Assistance Center under
section 777. The Secretary shall continue to implement, to the
extent practicable, a toll-free telephone based system to
permit applicants who meet the requirements of subsection (b)
or (c) of section 479 to submit an application over such
system.
(d) Assistance in Preparation of Financial Aid Application.--
(1) Preparation authorized.--Notwithstanding any
provision of this Act, an applicant may use a preparer
for consultative or preparation services for the
completion of a form developed under subsection (a) if
the preparer satisfies the requirements of this
subsection.
(2) Preparer identification required.--If an
applicant uses a preparer for consultative or
preparation services for the completion of a form
developed under subsection (a), and for which a fee is
charged, the preparer shall--
(A) include, at the time the form is
submitted to the Department, the name, address
or employer's address, social security number
or employer identification number, and
organizational affiliation of the preparer on
the applicant's form; and
(B) be subject to the same penalties as an
applicant for purposely giving false or
misleading information in the application.
(3) Additional requirements.--A preparer that
provides consultative or preparation services pursuant
to this subsection shall--
(A) clearly inform each individual upon
initial contact, including contact through the
Internet or by telephone, that the FAFSA and EZ
FAFSA are free forms that may be completed
without professional assistance via paper or
electronic version of the forms that are
provided by the Secretary;
(B) include in any advertising clear and
conspicuous information that the FAFSA and EZ
FAFSA are free forms that may be completed
without professional assistance via paper or
electronic version of the forms that are
provided by the Secretary;
(C) if advertising or providing any
information on a website, or if providing
services through a website, include on the
website a link to the website that provides the
electronic version of the forms developed under
subsection (a); and
(D) not produce, use, or disseminate any
other form for the purpose of applying for
Federal student financial aid other than the
form developed by the Secretary under
subsection (a).
(4) Special rule.--Nothing in this Act shall be
construed to limit preparers of the forms required
under this title that meet the requirements of this
subsection from collecting source information from a
student or parent, including Internal Revenue Service
tax forms, in providing consultative and preparation
services in completing the forms.
(e) Early Application and Estimated Award Demonstration
Program.--
(1) Purpose and objectives.--The purpose of the
demonstration program under this subsection is to
measure the benefits, in terms of student aspirations
and plans to attend an institution of higher education,
and any 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 two
years prior to the year of enrollment. Additional
objectives associated with implementation of the
demonstration program are the following:
(A) To measure the feasibility of enabling
dependent students to apply for Federal, State,
and institutional financial aid in their junior
year of secondary school, using information
from two years prior to the year of enrollment,
by completing any of the forms under this
subsection.
(B) To identify whether receiving final
financial aid award estimates not later than
the fall of the senior year of secondary school
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.
(C) To measure the impact of using income
information from the years 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.
(D) To effectively evaluate the benefits and
adverse effects of the demonstration program on
program costs, integrity, distribution, and
delivery of financial aid.
(2) Program authorized.--Not later than two years
after the date of enactment of the Higher Education
Opportunity Act, the Secretary shall implement an early
application demonstration program enabling dependent
students who wish to participate in the program--
(A) to complete an application under this
subsection during the academic year that is two
years prior to the year such students plan to
enroll in an institution of higher education;
and
(B) based on the application described in
subparagraph (A), to obtain, not later than one
year prior to the year of the students' planned
enrollment, information on eligibility for
Federal Pell Grants, Federal student loans
under this title, and State and institutional
financial aid for the student's first year of
enrollment in the institution of higher
education.
(3) Early application and estimated award.--For all
dependent students selected for participation in the
demonstration program who submit a completed FAFSA, or,
as appropriate, an EZ FAFSA, two years prior to the
year such students plan to enroll in an institution of
higher education, the Secretary shall, not later than
one year prior to the year of such planned enrollment--
(A) provide each student who completes an
early application with an estimated
determination of such student's--
(i) expected family contribution for
the first year of the student's
enrollment in an institution of higher
education; and
(ii) Federal Pell Grant award for the
first such year, based on the Federal
Pell Grant amount, determined under
section 401(b)(2)(A), for which a
student is eligible at the time of
application; and
(B) remind the students of the need to update
the students' information during the calendar
year of enrollment using the expedited
reapplication process provided for in
subsection (a)(4)(A).
(4) Participants.--The Secretary shall include as
participants in the demonstration program--
(A) States selected through the application
process described in paragraph (5);
(B) institutions of higher education within
the selected States that are interested in
participating in the demonstration program, and
that can make estimates or commitments of
institutional student financial aid, as
appropriate, to students the year before the
students' planned enrollment date; and
(C) secondary schools within the selected
States that are interested in participating in
the demonstration program, and that can commit
resources to--
(i) advertising the availability of
the program;
(ii) identifying students who might
be interested in participating in the
program;
(iii) encouraging such students to
apply; and
(iv) participating in the evaluation
of the program.
(5) Applications.--Each State that is interested in
participating in the demonstration program shall submit
an application to the Secretary at such time, in such
form, and containing such information as the Secretary
shall require. The application shall include--
(A) information on the amount of the State's
need-based student financial assistance
available, and the eligibility criteria for
receiving such assistance;
(B) a commitment to make, not later than the
year before the dependent students
participating in the demonstration program plan
to enroll in an institution of higher
education, an estimate of the award of State
financial aid to such dependent students;
(C) a plan for recruiting institutions of
higher education and secondary schools with
different demographic characteristics to
participate in the program;
(D) a plan for selecting institutions of
higher education and secondary schools to
participate in the program that--
(i) demonstrate a commitment to
encouraging students to submit a FAFSA,
or, as appropriate, an EZ FAFSA, two
years before the students' planned date
of enrollment in an institution of
higher education;
(ii) serve different populations of
students;
(iii) in the case of institutions of
higher education--
(I) to the extent possible,
are of varying types and
sectors; and
(II) commit to making, not
later than the year prior to
the year that dependent
students participating in the
demonstration program plan to
enroll in the institution--
(aa) estimated
institutional awards to
participating dependent
students; and
(bb) estimated grants
or other financial aid
available under this
title (including
supplemental grants
under subpart 3 of part
A), for all
participating dependent
students, along with
information on State
awards, as provided to
the institution by the
State;
(E) a commitment to participate in the
evaluation conducted by the Secretary; and
(F) such other information as the Secretary
may require.
(6) Special provisions.--
(A) Discretion of student financial aid
administrators.--A financial aid administrator
at an institution of higher education
participating in a demonstration program under
this subsection may use the discretion provided
under section 479A as necessary for students
participating in the demonstration program.
(B) Waivers.--The Secretary is authorized to
waive, for an institution of higher education
participating in the demonstration program, any
requirements under this title, or regulations
prescribed under this title, that will make the
demonstration program unworkable, except that
the Secretary shall not waive any provisions
with respect to the maximum award amounts for
grants and loans under this title.
(7) Outreach.--The Secretary shall make appropriate
efforts to notify States of the demonstration program
under this subsection. Upon determination of
participating States, the Secretary shall continue to
make efforts to notify institutions of higher education
and dependent students within participating States of
the opportunity to participate in the demonstration
program and of the participation requirements.
(8) Evaluation.--The Secretary shall conduct a
rigorous evaluation of the demonstration program to
measure the program's benefits and adverse effects, as
the benefits and effects relate to the purpose and
objectives of the program described in paragraph (1).
In conducting the evaluation, the Secretary shall--
(A) determine whether receiving financial aid
estimates one year prior to the year in which
the student plans to enroll in an institution
of higher education, has a positive impact on
the higher education aspirations and plans of
such student;
(B) measure the extent to which using a
student's income information from the year that
is two years prior to the student's planned
enrollment date had an impact on the ability of
States and institutions of higher education to
make financial aid awards and commitments;
(C) determine what operational changes are
required to implement the program on a larger
scale;
(D) identify any changes to Federal law that
are necessary to implement the program on a
permanent basis;
(E) identify the benefits and adverse effects
of providing early estimates on program costs,
program operations, program integrity, award
amounts, distribution, and delivery of aid; and
(F) examine the extent to which estimated
awards differ from actual awards made to
students participating in the program.
(9) Consultation.--The Secretary shall consult, as
appropriate, with the Advisory Committee on Student
Financial Assistance established under section 491 on
the design, implementation, and evaluation of the
demonstration program.
[(f) Reduction of Income and Asset Information to Determine
Eligibility for Student Financial Aid.--
[(1) Continuation of current fafsa simplification
efforts.--The Secretary shall continue to examine--
[(A) how the Internal Revenue Service can
provide to the Secretary income and other data
needed to compute an expected family
contribution for taxpayers and dependents of
taxpayers, and when in the application cycle
the data can be made available;
[(B) whether data provided by the Internal
Revenue Service can be used to--
[(i) prepopulate the electronic
version of the FAFSA with student and
parent taxpayer data; or
[(ii) generate an expected family
contribution without additional action
on the part of the student and
taxpayer; and
[(C) whether the data elements collected on
the FAFSA that are needed to determine
eligibility for student aid, or to administer
the Federal student financial aid programs
under this title, but are not needed to compute
an expected family contribution, such as
information regarding the student's citizenship
or permanent residency status, registration for
selective service, or driver's license number,
can be reduced without adverse effects.
[(2) Report on fafsa simplification efforts to
date.--Not later than 90 days after the date of
enactment of the Higher Education Opportunity Act, the
Secretary shall provide a written report to the
authorizing committees on the work the Department has
done with the Secretary of the Treasury regarding--
[(A) how the expected family contribution of
a student can be calculated using substantially
less income and asset information than was used
on March 31, 2008;
[(B) the extent to which the reduced income
and asset information will result in a
redistribution of Federal grants and subsidized
loans under this title, State aid, or
institutional aid, or in a change in the
composition of the group of recipients of such
aid, and the amount of such redistribution;
[(C) how the alternative approaches for
calculating the expected family contribution
will--
[(i) rely mainly, in the case of
students and parents who file income
tax returns, on information available
on the 1040, 1040EZ, and 1040A; and
[(ii) include formulas for adjusting
income or asset information to produce
similar results to the existing
approach with less data;
[(D) how the Internal Revenue Service can
provide to the Secretary of Education income
and other data needed to compute an expected
family contribution for taxpayers and
dependents of taxpayers, and when in the
application cycle the data can be made
available;
[(E) whether data provided by the Internal
Revenue Service can be used to--
[(i) prepopulate the electronic
version of the FAFSA with student and
parent taxpayer data; or
[(ii) generate an expected family
contribution without additional action
on the part of the student and
taxpayer;
[(F) the extent to which the use of income
data from two years prior to a student's
planned enrollment date will change the
expected family contribution computed in
accordance with part F, and potential
adjustments to the need analysis formula that
will minimize the change; and
[(G) the extent to which the data elements
collected on the FAFSA on March 31, 2008, that
are needed to determine eligibility for student
aid or to administer the Federal student
financial aid programs, but are not needed to
compute an expected family contribution, such
as information regarding the student's
citizenship or permanent residency status,
registration for selective service, or driver's
license number, can be reduced without adverse
effects.
[(3) Study.--
[(A) Formation of study group.--Not later
than 90 days after the date of enactment of the
Higher Education Opportunity Act, the
Comptroller General shall convene a study group
the membership of which shall include the
Secretary of Education, the Secretary of the
Treasury, the Director of the Office of
Management and Budget, the Director of the
Congressional Budget Office, representatives of
institutions of higher education with expertise
in Federal and State financial aid assistance,
State chief executive officers of higher
education with a demonstrated commitment to
simplifying the FAFSA, and such other
individuals as the Comptroller General and the
Secretary of Education may designate.
[(B) Study required.--The Comptroller
General, in consultation with the study group
convened under subparagraph (A) shall--
[(i) review and build on the work of
the Secretary of Education and the
Secretary of the Treasury, and
individuals with expertise in analysis
of financial need, to assess
alternative approaches for calculating
the expected family contribution under
the statutory need analysis formula in
effect on the day before the date of
enactment of the Higher Education
Opportunity Act and under a new
calculation that will use substantially
less income and asset information than
was used for the 2008-2009 FAFSA;
[(ii) conduct an additional analysis
if necessary; and
[(iii) make recommendations to the
authorizing committees.
[(C) Objectives of study.--The objectives of
the study required under subparagraph (B) are--
[(i) to determine methods to shorten
the FAFSA and make the FAFSA easier and
less time-consuming to complete,
thereby increasing higher education
access for low-income students;
[(ii) to identify changes to the
statutory need analysis formula that
will be necessary to reduce the amount
of financial information students and
families need to provide to receive a
determination of eligibility for
student financial aid without causing
significant redistribution of Federal
grants and subsidized loans under this
title; and
[(iii) to review State and
institutional needs and uses for data
collected on the FAFSA, and to
determine the best means of addressing
such needs in the case of modification
of the FAFSA as described in clause
(i), or modification of the need
analysis formula as described in clause
(ii).
[(D) Required subjects of study.--The study
required under subparagraph (B) shall examine--
[(i) with respect to simplification
of the financial aid application
process using the statutory
requirements for need analysis--
[(I) additional steps that
can be taken to simplify the
financial aid application
process for students who (or,
in the case of dependent
students, whose parents) are
not required to file a Federal
income tax return for the prior
taxable year;
[(II) information on State
use of information provided on
the FAFSA, including--
[(aa) whether a State
uses, as of the time of
the study, or can use,
a student's expected
family contribution
based on data from two
years prior to the
student's planned
enrollment date;
[(bb) the extent to
which States and
institutions will
accept the data
provided by the
Internal Revenue
Service to prepopulate
the electronic version
of the FAFSA to
determine the
distribution of State
and institutional
student financial aid
funds;
[(cc) what data are
used by States, as of
the time of the study,
to determine
eligibility for State
student financial aid,
and whether the data
are used for merit- or
need-based aid;
[(dd) whether State
data are required by
State law, State
regulations, or policy
directives; and
[(ee) the extent to
which any State-
specific information
requirements can be met
by completion of a
State application
linked to the
electronic version of
the FAFSA; and
[(III) information on
institutional needs, including
the extent to which
institutions of higher
education are already using
supplemental forms to collect
additional data from students
and their families to determine
eligibility for institutional
funds; and
[(ii) ways to reduce the amount of
financial information students and
families need to provide to receive a
determination of eligibility for
student financial aid, taking into
account--
[(I) the amount of
redistribution of Federal
grants and subsidized loans
under this title caused by such
a reduction, and the benefits
to be gained by having an
application process that will
be easier for students and
their families;
[(II) students and families
who do not file income tax
returns;
[(III) the extent to which
the full array of income and
asset information collected on
the FAFSA, as of the time of
the study, plays an important
role in the awarding of need-
based State financial aid, and
whether the State can use an
expected family contribution
generated by the FAFSA, instead
of income and asset information
or a calculation with reduced
data elements, to support
determinations of eligibility
for such State aid programs
and, if not, what additional
information will be needed or
what changes to the FAFSA will
be required; and
[(IV) information on
institutional needs, including
the extent to which
institutions of higher
education are already using
supplemental forms to collect
additional data from students
and their families to determine
eligibility for institutional
funds; and
[(V) changes to this Act or
other laws that will be
required to implement a
modified need analysis system.
[(4) Consultation.--The Secretary shall consult with
the Advisory Committee on Student Financial Assistance
established under section 491 as appropriate in
carrying out this subsection.
[(5) Reports.--
[(A) Reports on study.--The Secretary shall
prepare and submit to the authorizing
committees--
[(i) not later than one year after
the date of enactment of the Higher
Education Opportunity Act, an interim
report on the progress of the study
required under paragraph (3) that
includes any preliminary
recommendations by the study group
established under such paragraph; and
[(ii) not later than two years after
the date of enactment of the Higher
Education Opportunity Act, a final
report on the results of the study
required under paragraph (3) that
includes recommendations by the study
group established under such paragraph.
[(B) Reports on fafsa simplification
efforts.--The Secretary shall report to the
authorizing committees, from time to time, on
the progress of the simplification efforts
under this subsection.]
(f) Use of Internal Revenue Service Data Retrieval Tool to
Populate FAFSA.--
(1) Simplification efforts.--The Secretary shall--
(A) make every effort to use data available
from the Internal Revenue Service to reduce the
amount of original data entry by applicants and
strengthen the reliability of data used to
calculate expected family contributions,
including through the use of technology to--
(i) automatically populate the
electronic version of the forms under
this paragraph with data available from
the Internal Revenue Service; and
(ii) direct an applicant to
appropriate questions on such forms
based on the applicant's answers to
previous questions; and
(B) allow single taxpayers, married taxpayers
filing jointly, and married taxpayers filing
separately to utilize the data retrieval tool
to its full capacity.
(2) Use of tax return in application process.--The
Secretary shall continue to examine whether data
provided by the Internal Revenue Service can be used to
generate an expected family contribution without
additional action on the part of the student and
taxpayer.
(3) Reports on fafsa simplification efforts.--Not
less than once every other year, the Secretary shall
report to the authorizing committees on the progress of
the simplification efforts under this subsection.
(4) Reports on fafsa access.--Not less than once
every 10 years, the Secretary shall report to the
authorizing committees on the needs of limited English
proficient students using the FAFSA.
(g) Addressing the Digital Divide.--The Secretary shall
utilize savings accrued by moving more applicants to the
electronic version of the forms described in subsection (a)(3)
to improve access to the electronic version of the forms
described in such subsection for applicants meeting the
requirements of subsection (b) or (c) of section 479.
(h) Adjustments.--The Secretary shall disclose, on the form
notifying a student of the student's expected family
contribution, that the student may, on a case-by-case basis,
qualify for an adjustment under section 479A to the cost of
attendance or the values of the data items required to
calculate the expected contribution for the student or parent.
Such disclosure shall specify--
(1) the special circumstances under which a student
or family member may qualify for such adjustment; and
(2) additional information regarding the steps a
student or family member may take in order to seek an
adjustment under section 479A.
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